SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of May, 2020
Commission File Number 001-14948
Toyota Motor Corporation
(Translation of Registrants Name Into English)
1, Toyota-cho, Toyota City,
Aichi Prefecture 471-8571,
Japan
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Material Contained in this Report:
I. | English translations of the original Japanese-language documents, as filed with the Tokyo Stock Exchange on May 12, 2020, with respect to the registrants results of operations for the fiscal year ended March 31, 2020. |
II. | English translation of the Notice Concerning the Holding of Ordinary General Shareholders Meeting to be held on June 11, 2020, as filed by the registrant with the Tokyo Stock Exchange on May 12, 2020. |
III. | English translation of the Notice Concerning the Distribution of Dividends from Surplus, as filed by the registrant with the Tokyo Stock Exchange on May 12, 2020. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Toyota Motor Corporation | ||||
By: |
/s/ Kaname Shimizu | |||
Name: |
Kaname Shimizu | |||
Title: |
General Manager, Accounting Division |
Date: May 12, 2020
FINANCIAL SUMMARY
FY2020
(April 1, 2019 through March 31, 2020)
English translation from the original Japanese-language document
TOYOTA MOTOR CORPORATION
FY2020 Consolidated Financial Results
(Consolidated financial information has been prepared in accordance with U.S. generally accepted accounting principles)
English translation from the original Japanese-language document
May 12, 2020
Company name |
: | Toyota Motor Corporation | ||
Stock exchanges on which the shares are listed |
: | Tokyo and Nagoya Stock Exchanges in Japan | ||
Code number |
: | 7203 | ||
URL |
: | https://global.toyota/jp/ | ||
Representative |
: | Akio Toyoda, President | ||
Contact person |
: | Kaname Shimizu, General Manager, Accounting Division Tel. (0565)28-2121 | ||
Date of the ordinary general shareholders meeting |
: | June 11, 2020 | ||
Payment date of cash dividends |
: | May 28, 2020 | ||
Filing date of financial statements |
: | June 24, 2020 | ||
Supplemental materials prepared for financial results |
: | yes | ||
Earnings announcement for financial results |
: | yes |
(Amounts are rounded to the nearest million yen for consolidated results)
1. | Consolidated Results for FY2020 (April 1, 2019 through March 31, 2020) |
(1) | Consolidated financial results |
(% of change from previous year) | ||||||||||||||||||||||||||||||||
Net revenues | Operating income | Income before income taxes and equity in earnings of affiliated companies |
Net income attributable to Toyota Motor Corporation |
|||||||||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||||||||||||||||||
FY2020 |
29,929,992 | -1.0 | 2,442,869 | -1.0 | 2,554,607 | 11.8 | 2,076,183 | 10.3 | ||||||||||||||||||||||||
FY2019 |
30,225,681 | 2.9 | 2,467,545 | 2.8 | 2,285,465 | -12.8 | 1,882,873 | -24.5 |
Note: Comprehensive income FY2020 1,866,642 million yen ( -3.6 %), FY2019 1,936,602 million yen ( -19.1 %)
Net income attributable to Toyota Motor Corporation per common share Basic |
Net income attributable to Toyota Motor Corporation per common share Diluted |
Ratio of net
income attributable to Toyota Motor Corporation to Toyota Motor Corporation shareholders equity |
Ratio of income
before income taxes and equity in earnings of affiliated companies to total assets |
Ratio of operating income to net revenues |
||||||||||||||||
Yen | Yen | % | % | % | ||||||||||||||||
FY2020 |
735.61 | 729.50 | 10.4 | 4.9 | 8.2 | |||||||||||||||
FY2019 |
650.55 | 645.11 | 9.8 | 4.5 | 8.2 |
Reference: Equity in earnings of affiliated companies FY2020 271,152 million yen, FY2019 360,066 million yen
(2) | Consolidated financial position |
Total assets | Mezzanine equity and Shareholders equity |
Toyota Motor
Corporation shareholders equity |
Ratio
of Toyota Motor Corporation shareholders equity |
Toyota Motor
Corporation shareholders equity per share |
||||||||||||||||
Million yen | Million yen | Million yen | % | Yen | ||||||||||||||||
FY2020 |
52,680,436 | 21,241,851 | 20,060,618 | 38.1 | 7,252.17 | |||||||||||||||
FY2019 |
51,936,949 | 20,565,210 | 19,348,152 | 37.3 | 6,830.92 |
(3) | Consolidated cash flows |
From operating activities | From investing activities | From financing activities | Cash and cash equivalents at end of year |
|||||||||||||
Million yen | Million yen | Million yen | Million yen | |||||||||||||
FY2020 |
3,590,643 | -3,150,861 | 397,138 | 4,412,190 | ||||||||||||
FY2019 |
3,766,597 | -2,697,241 | -540,839 | 3,706,515 |
Note: Cash and cash equivalents at end of year includes restricted cash and cash equivalents.
2. | Cash Dividends |
Annual cash dividends per common share | Total amount
of cash dividends (annual) |
Dividends
payout ratio (consolidated) |
Ratio of total amount of dividends to Toyota Motor Corporation shareholders equity (consolidated) |
|||||||||||||||||||||||||||||
End of
first quarter |
End of
second quarter |
End of
third quarter |
Year-end | Total | ||||||||||||||||||||||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||||||||||||||||||||||||
FY2019 |
| 100.00 | | 120.00 | 220.00 | 626,819 | 33.8 | 3.3 | ||||||||||||||||||||||||
FY2020 |
| 100.00 | | 120.00 | 220.00 | 610,847 | 29.9 | 3.1 | ||||||||||||||||||||||||
FY2021 (forecast) |
| | | | | |
Note: |
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. |
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 owners of the parent |
Net income attributable to owners of the parent per common share Basic | ||||||||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||||||||||||||||
Full-year |
24,000,000 | -19.8 | 500,000 | -79.5 | To be determined |
*1 | The parent company intends to voluntarily adopt International Financial Reporting Standards (IFRS) for its consolidated financial statements from the first quarter of the fiscal year ending March 31, 2021. Accordingly, the parent company and its consolidated subsidiaries (Toyota)s forecast of consolidated financial results for the fiscal year ending March 31, 2021 is based on IFRS. |
*2 | Toyota is not disclosing forecasts of both income before income taxes and net income attributable to owners of the parent for the fiscal year ending March 31, 2021, as the effects of the global spread of COVID-19 present challenges in preparing reasonable estimates for such figures. Toyota will disclose such figures promptly after they can be reasonably estimated. |
Notes
(1) | Changes in significant subsidiaries during FY2020 |
(Changes in specified subsidiaries that caused a change in the scope of consolidation): none
(2) | Changes in accounting principles, procedures, and disclosures during FY2020 |
(i) | Changes by a newly issued accounting pronouncement: yes |
(ii) | Changes other than (2)-(i) above: yes |
Note: For more details, please see page 13 (6) Summary of Significant Accounting Policies.
(3) | Number of shares issued and outstanding (common stock) |
(i) | Number of shares issued and outstanding at the end of each fiscal year (including treasury stock): |
FY2020 3,262,997,492 shares, FY2019 3,262,997,492 shares |
(ii) | Number of treasury stock at the end of each fiscal year: |
FY2020 496,844,960 shares, FY2019 430,558,325 shares |
(iii) | Average number of shares issued and outstanding in each fiscal year: |
FY2020 2,798,917,983 shares, FY2019 2,871,533,872 shares |
Reference: Overview of the Unconsolidated Financial Results
FY2020 Unconsolidated Financial Results
(Unconsolidated financial information has been prepared in accordance with Japanese generally accepted accounting principles)
English translation from the original Japanese-language document
(Amounts less than one million yen are omitted for unconsolidated results)
1. | Unconsolidated Results for FY2020 (April 1, 2019 through March 31, 2020) |
(1) | Unconsolidated financial results |
(% of change from previous year) | ||||||||||||||||
Net revenues |
Operating income |
Ordinary income |
Net income | |||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||||||
FY2020 |
12,729,731 | 0.8 | 978,804 | -26.2 | 1,735,365 | -25.3 | 1,424,062 | -24.9 | ||||||||
FY2019 |
12,634,439 | 3.5 | 1,326,137 | 5.5 | 2,323,121 | 3.8 | 1,896,824 | 2.0 |
Net income per |
Net income per | |||||||
Yen | Yen | |||||||
FY2020 |
504.25 | 500.27 | ||||||
FY2019 |
657.10 | 649.89 |
(2) | Unconsolidated financial position |
Total assets |
Net assets |
Equity ratio |
Net assets per | |||||||||||||
Million yen | Million yen | % | Yen | |||||||||||||
FY2020 |
17,809,246 | 12,590,890 | 70.7 | 4,377.19 | ||||||||||||
FY2019 |
17,716,993 | 12,450,274 | 70.3 | 4,225.55 |
Reference: Equity at the end of FY2020: 12,590,890 million yen, Equity at the end of FY2019: 12,450,274 million yen
This report is not audited.
Cautionary Statement with Respect to Forward-Looking Statements, and Other Information
This report contains forward-looking statements that reflect Toyotas 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 Toyotas 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. With regard to Toyotas decisions and assumptions for the forecast, please refer to 1. Financial Results and Position (3) Forecast of Consolidated Financial Results for FY2021 on page 5 of the materials accompanying this report. 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)Toyotas ability to market and distribute effectively; (v) Toyotas 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 Toyotas 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 Toyotas 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) Toyotas ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyotas brand image; (x) Toyotas reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyotas 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 Toyotas vehicle production and sales.
A discussion of these and other factors which may affect Toyotas actual results, performance, achievements or financial position is contained in Toyotas 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 Toyotas third-party suppliers and business partners.
The duration of the global spread of COVID-19 is 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 Toyotas financial condition and results of operations.
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 | ||||||||||||||||
FY2019 |
| 105.50 | | 105.50 | 211.00 | |||||||||||||||
FY2020 |
| 132.00 | | 132.00 | 264.00 | |||||||||||||||
FY2021 (forecast) |
| | | | |
Note: The First Series Model AA Class Shares were issued in July 2015.
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
2 | ||||
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4 | ||||
5 | ||||
2. Basic Concept Regarding the Selection of Accounting Standards |
6 | |||
7 | ||||
7 | ||||
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income |
9 | |||
11 | ||||
12 | ||||
13 | ||||
13 | ||||
15 | ||||
22 | ||||
23 | ||||
1
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
1. | Financial Results and Position |
(1) Consolidated Financial Results for FY2020
Financial Results
Reviewing the general economic environment for FY2020 (April 1, 2019 through March 31, 2020), the world economy changed from a trend of moderate expansion to a sharp slowdown due to the effects of trade frictions and the impact of COVID-19 spreading from China to North America, Europe and Asia.
Automotive markets slumped in China and some emerging countries, but remained stable in developed countries and declined only slightly in the world as a whole. However, COVID-19 has begun to have a major impact, leading to the suspension of operations at factories and the suspension of business at dealers worldwide.
Under these conditions, consolidated vehicle unit sales in Japan and overseas decreased by 19 thousand units, or 0.2%, to 8,958 thousand units in FY2020 compared with FY2019 (April 1, 2018 through March 31, 2019). Vehicle unit sales in Japan increased by 14 thousand units, or 0.6%, to 2,240 thousand units in FY2020 compared with FY2019, primarily as a result of the active introduction of new products and the efforts of dealers nationwide. Toyota and Lexus brands market share excluding mini-vehicles was 48.8%, representing a record high, and market share (including Daihatsu and Hino brands) including mini-vehicles was 45.5%, representing a record high. Each remaining at as high a level as in FY2019. Meanwhile, overseas vehicle unit sales decreased by 32 thousand units, or 0.5%, to 6,719 thousand units in FY2020 compared with FY2019, because of a decline in sales in Asia and North America.
The results of operations for FY2020 were as follows:
Net revenues | 29,929.9 billion yen | (a decrease of 295.6 billion yen or 1.0% compared with FY2019) | ||||||||
Operating income |
2,442.8 billion yen | (a decrease of 24.6 billion yen or 1.0% compared with FY2019) | ||||||||
Income before income taxes and equity in earnings of affiliated companies |
2,554.6 billion yen | (an increase of 269.1 billion yen or 11.8% compared with FY2019) | ||||||||
Net income attributable to Toyota Motor Corporation |
2,076.1 billion yen | (an increase of 193.3 billion yen or 10.3% compared with FY2019) |
The changes in operating income were as follows:
Effects of marketing activities |
a decrease of 90.0 billion yen | |
Effects of changes in exchange rates |
a decrease of 305.0 billion yen | |
Cost reduction efforts |
an increase of 170.0 billion yen | |
Increase or decrease in expenses and expense reduction efforts |
an increase of 45.0 billion yen | |
Other |
an increase of 155.4 billion yen |
Due to the effects of the global spread of COVID-19, operating income for FY2020 decreased by 160.0 billion yen, which is mainly attributable to the decrease in consolidated vehicle unit sales.
Toyota changed the depreciation method of the parent company and Japanese subsidiaries to the straight-line method, effective as of April 1, 2019. The impact of this change for FY2020 was a decrease in depreciation expense of 173.2 billion yen.
The changes in net income attributable to Toyota Motor Corporation includes a loss of 38.1 billion yen (net of tax, etc.), which is attributable to the effect of unrealized gains (losses) on equity securities in FY2020.
2
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Segment Operating Results
(i) Automotive:
Net revenues for the automotive operations decreased by 215.5 billion yen, or 0.8%, to 26,863.5 billion yen in FY2020 compared with FY2019. However, operating income increased by 13.4 billion yen, or 0.7%, to 2,052.3 billion yen in FY2020 compared with FY2019. The increase in operating income was mainly due to cost reduction efforts, as well as the decrease in expenses and expense reduction efforts.
(ii) Financial services:
Net revenues for the financial services operations increased by 37.0 billion yen, or 1.7%, to 2,190.5 billion yen in FY2020 compared with FY2019. However, operating income decreased by 30.6 billion yen, or 9.5%, to 292.1 billion yen in FY2020 compared with FY2019. The decrease in operating income was mainly due to the increase in expenses related to credit losses in sales finance subsidiaries.
(iii) All other:
Net revenues for all other businesses decreased by 171.8 billion yen, or 10.2%, to 1,504.5 billion yen in FY2020 compared with FY2019, and operating income decreased by 8.8 billion yen, or 8.4%, to 96.6 billion yen in FY2020 compared with FY2019.
Geographic Information
(i) Japan:
Net revenues in Japan decreased by 163.8 billion yen, or 1.0%, to 16,461.5 billion yen in FY2020 compared with FY2019, and operating income decreased by 123.6 billion yen, or 7.3%, to 1,567.9 billion yen in FY2020 compared with FY2019. The decrease in operating income was mainly due to the effects of marketing activities and changes in exchange rates.
(ii) North America:
Net revenues in North America decreased by 178.4 billion yen, or 1.7%, to 10,638.7 billion yen in FY2020 compared with FY2019. However, operating income increased by 156.1 billion yen, or 136.3%, to 270.6 billion yen in FY2020 compared with FY2019. The increase in operating income was mainly due to marketing efforts.
(iii) Europe:
Net revenues in Europe increased by 122.0 billion yen, or 3.8%, to 3,360.8 billion yen in FY2020 compared with FY2019, and operating income increased by 25.6 billion yen, or 20.6%, to 150.5 billion yen in FY2020 compared with FY2019. The increase in operating income was mainly due to the increase in vehicle unit sales.
(iv) Asia:
Net revenues in Asia decreased by 174.3 billion yen, or 3.2%, to 5,338.6 billion yen in FY2020 compared with FY2019, and operating income decreased by 86.4 billion yen, or 18.9%, to 370.9 billion yen in FY2020 compared with FY2019. The decrease in operating income was mainly due to the effects of changes in exchange rates.
(v) Other (Central and South America, Oceania, Africa and the Middle East):
Net revenues in other regions decreased by 220.9 billion yen, or 9.5%, to 2,112.5 billion yen in FY2020 compared with FY2019, and operating income decreased by 0.3 billion yen, or 0.4%, to 90.7 billion yen in FY2020 compared with FY2019.
3
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(2) Consolidated Financial Position for FY2020
Cash and cash equivalents and restricted cash and cash equivalents increased by 705.6 billion yen, or 19.0%, to 4,412.1 billion yen at the end of FY2020 compared with the end of FY2019.
The increases or decreases for each cash flow activity compared with the previous fiscal year are as follows:
Cash flows from operating activities
Net cash flows from operating activities resulted in an increase in cash by 3,590.6 billion yen in FY2020. Net cash provided by operating activities decreased by 175.9 billion yen from 3,766.5 billion yen in FY2019.
Cash flows from investing activities
Net cash flows from investing activities resulted in a decrease in cash by 3,150.8 billion yen in FY2020. Net cash used in investing activities increased by 453.6 billion yen from 2,697.2 billion yen in FY2019.
Cash flows from financing activities
Net cash flows from financing activities resulted in an increase in cash by 397.1 billion yen in FY2020. Net cash provided by financing activities increased by 937.9 billion yen from 540.8 billion yen net cash used in FY2019.
The consolidated cash flows by segment for FY2020 are as follows:
Non-financial services
Net cash provided by operating activities was 2,506.8 billion yen, net cash used in investing activities was 1,445.7 billion yen and net cash used in financing activities was 1,005.2 billion yen.
Financial services
Net cash provided by operating activities was 1,045.2 billion yen, net cash used in investing activities was 1,915.9 billion yen and net cash provided by financing activities was 1,651.9 billion yen.
4
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(3) Forecast of Consolidated Financial Results for FY2021
The parent company intends to voluntarily adopt International Financial Reporting Standards (IFRS) for its consolidated financial statements from the first quarter of the fiscal year ending March 31, 2021. Accordingly, the parent company and its consolidated subsidiaries (Toyota)s forecast of consolidated financial results for the fiscal year ending March 31, 2021 is based on IFRS.
As for the global economy going forward, there is concern that there will be a sharp decline in many countries and regions due to the impact of COVID-19. The production and sales of automobiles have already been greatly affected. We hope that the outbreak will be contained as early as possible, and the entire Toyota group will work as one to deal with this issue.
While we assume that the global automobile market as a whole, will gradually recover after bottoming out during April and June of 2020, leading the market to return to the same level as the previous year during the end of 2020 and the first half of 2021, the impact of COVID-19 is wide-ranging, significant and serious, and it is expected that weakness will continue for the time being. We have forecast sales revenues and operating income based on these assumptions.
Based on these assumptions, the current forecast of consolidated financial results for the fiscal year ending March 31, 2021 is set forth below. This forecast assumes average exchange rates through the fiscal year of 105 yen per US$1 and 115 yen per 1 euro. The effects of COVID-19, and when it will subside, is unclear, and depending on such factors as how the infection spreads or subsides the actual figures may differ.
Note that forecasts of income before income taxes, as well as net income attributable to owners of the parent, for the fiscal year ending March 31, 2021 are not disclosed due to the difficulty of reasonably estimating those figures at this time, as such figures would reflect numerous factors of the impact of COVID-19, in addition to the assumptions above, which remain uncertain. We will disclose such figures promptly after they can be reasonably estimated.
Forecast of consolidated results for FY2021
Sales revenues | 24,000.0 billion yen | (a decrease of 19.8% compared with FY2020) | ||||||||
Operating income |
500.0 billion yen | (a decrease of 79.5% compared with FY2020) |
Note: | 1. | Net revenues under U.S. generally accepted accounting principles is stated as Sales revenues | ||
2. | Income before income taxes and equity in earnings of affiliated companies under U.S. generally accepted accounting principles is stated as Income before income taxes | |||
3. | Net income attributable to Toyota Motor Corporation under U.S. generally accepted accounting principles is stated as Net income attributable to owners of the parent |
These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyotas 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) Toyotas ability to market and distribute effectively; (v) Toyotas 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 Toyotas 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 Toyotas 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) Toyotas ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyotas brand image; (x) Toyotas reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyotas 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 Toyotas vehicle production and sales.
A discussion of these and other factors which may affect Toyotas actual results, performance, achievements or financial position is contained in Toyotas 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 Toyotas third-party suppliers and business partners.
The duration of the global spread of COVID-19 is 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 Toyotas financial condition and results of operations.
5
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
2. | Basic Concept Regarding the Selection of Accounting Standards |
Toyota intends to replace the currently applied U.S. generally accepted accounting principles and voluntarily adopt IFRS for its consolidated financial statements in order to improve the international comparability of its financial information in the capital markets, among other reasons. The period for disclosure based on IFRS will begin with the first quarter of the fiscal year ending March 31, 2021.
6
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
3. | Consolidated Financial Statements |
(1) Consolidated Balance Sheets
(Yen in millions) | ||||||||||||
FY2019 (March 31, 2019) |
FY2020 (March 31, 2020) |
Increase (Decrease) |
||||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
3,574,704 | 4,190,518 | 615,814 | |||||||||
Time deposits |
1,126,352 | 828,220 | (298,132 | ) | ||||||||
Marketable securities |
1,127,160 | 678,731 | (448,429 | ) | ||||||||
Trade accounts and notes receivable, less allowance for doubtful accounts of ¥16,370 million at March 31, 2019 and ¥23,944 million at March 31, 2020 |
2,372,734 | 2,094,894 | (277,840 | ) | ||||||||
Finance receivables, net |
6,647,771 | 6,614,171 | (33,600 | ) | ||||||||
Other receivables |
568,156 | 564,854 | (3,302 | ) | ||||||||
Inventories |
2,656,396 | 2,434,918 | (221,478 | ) | ||||||||
Prepaid expenses and other current assets |
805,964 | 1,236,225 | 430,261 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
18,879,237 | 18,642,531 | (236,706 | ) | ||||||||
|
|
|
|
|
|
|||||||
Noncurrent finance receivables, net |
10,281,118 | 10,423,858 | 142,740 | |||||||||
Investments and other assets: |
||||||||||||
Marketable securities and other securities investments |
7,479,926 | 7,348,651 | (131,275 | ) | ||||||||
Affiliated companies |
3,313,723 | 4,123,453 | 809,730 | |||||||||
Employees receivables |
21,683 | 21,484 | (199 | ) | ||||||||
Other |
1,275,768 | 1,518,934 | 243,166 | |||||||||
|
|
|
|
|
|
|||||||
Total investments and other assets |
12,091,100 | 13,012,522 | 921,422 | |||||||||
|
|
|
|
|
|
|||||||
Property, plant and equipment: |
||||||||||||
Land |
1,386,308 | 1,346,988 | (39,320 | ) | ||||||||
Buildings |
4,802,175 | 4,730,783 | (71,392 | ) | ||||||||
Machinery and equipment |
11,857,425 | 11,939,121 | 81,696 | |||||||||
Vehicles and equipment on operating leases |
6,139,163 | 5,929,233 | (209,930 | ) | ||||||||
Construction in progress |
651,713 | 510,963 | (140,750 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total property, plant and equipment, at cost |
24,836,784 | 24,457,088 | (379,696 | ) | ||||||||
|
|
|
|
|
|
|||||||
Less Accumulated depreciation |
(14,151,290 | ) | (13,855,563 | ) | 295,727 | |||||||
|
|
|
|
|
|
|||||||
Total property, plant and equipment, net |
10,685,494 | 10,601,525 | (83,969 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total assets |
51,936,949 | 52,680,436 | 743,487 | |||||||||
|
|
|
|
|
|
7
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(Yen in millions) | ||||||||||||
FY2019 (March 31, 2019) |
FY2020 (March 31, 2020) |
Increase (Decrease) |
||||||||||
Liabilities |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
5,344,973 | 5,286,026 | (58,947 | ) | ||||||||
Current portion of long-term debt |
4,254,260 | 4,574,045 | 319,785 | |||||||||
Accounts payable |
2,645,984 | 2,434,180 | (211,804 | ) | ||||||||
Other payables |
1,102,802 | 1,020,270 | (82,532 | ) | ||||||||
Accrued expenses |
3,222,446 | 2,926,052 | (296,394 | ) | ||||||||
Income taxes payable |
320,998 | 218,117 | (102,881 | ) | ||||||||
Other current liabilities |
1,335,475 | 1,443,687 | 108,212 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
18,226,938 | 17,902,377 | (324,561 | ) | ||||||||
|
|
|
|
|
|
|||||||
Long-term liabilities: |
||||||||||||
Long-term debt |
10,550,945 | 10,692,898 | 141,953 | |||||||||
Accrued pension and severance costs |
963,406 | 978,626 | 15,220 | |||||||||
Deferred income taxes |
1,014,851 | 1,043,169 | 28,318 | |||||||||
Other long-term liabilities |
615,599 | 821,515 | 205,916 | |||||||||
|
|
|
|
|
|
|||||||
Total long-term liabilities |
13,144,801 | 13,536,208 | 391,407 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
31,371,739 | 31,438,585 | 66,846 | |||||||||
|
|
|
|
|
|
|||||||
Mezzanine equity |
||||||||||||
Model AA Class Shares, no par value, |
498,073 | 504,169 | 6,096 | |||||||||
|
|
|
|
|
|
|||||||
Shareholders equity |
||||||||||||
Toyota Motor Corporation shareholders equity: |
||||||||||||
Common stock, no par value, |
397,050 | 397,050 | | |||||||||
Additional paid-in capital |
487,162 | 489,334 | 2,172 | |||||||||
Retained earnings |
21,987,515 | 23,427,613 | 1,440,098 | |||||||||
Accumulated other comprehensive income (loss) |
(916,650 | ) | (1,166,273 | ) | (249,623 | ) | ||||||
Treasury stock, at cost, |
(2,606,925 | ) | (3,087,106 | ) | (480,181 | ) | ||||||
|
|
|
|
|
|
|||||||
Total Toyota Motor Corporation shareholders equity |
19,348,152 | 20,060,618 | 712,466 | |||||||||
|
|
|
|
|
|
|||||||
Noncontrolling interests |
718,985 | 677,064 | (41,921 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total shareholders equity |
20,067,137 | 20,737,682 | 670,545 | |||||||||
|
|
|
|
|
|
|||||||
Commitments and contingencies |
||||||||||||
|
|
|
|
|
|
|||||||
Total liabilities, mezzanine equity and shareholders equity |
51,936,949 | 52,680,436 | 743,487 | |||||||||
|
|
|
|
|
|
Note: The total number of authorized shares for common stock and Model AA Class Shares is 10,000,000,000 shares.
8
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(2) Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
(Yen in millions) | ||||||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
Increase (Decrease) |
||||||||||
Net revenues: |
||||||||||||
Sales of products |
28,105,338 | 27,759,749 | (345,589 | ) | ||||||||
Financing operations |
2,120,343 | 2,170,243 | 49,900 | |||||||||
|
|
|
|
|
|
|||||||
Total net revenues |
30,225,681 | 29,929,992 | (295,689 | ) | ||||||||
|
|
|
|
|
|
|||||||
Costs and expenses: |
||||||||||||
Cost of products sold |
23,389,495 | 23,142,744 | (246,751 | ) | ||||||||
Cost of financing operations |
1,392,290 | 1,379,620 | (12,670 | ) | ||||||||
Selling, general and administrative |
2,976,351 | 2,964,759 | (11,592 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total costs and expenses |
27,758,136 | 27,487,123 | (271,013 | ) | ||||||||
|
|
|
|
|
|
|||||||
Operating income |
2,467,545 | 2,442,869 | (24,676 | ) | ||||||||
|
|
|
|
|
|
|||||||
Other income (expense): |
||||||||||||
Interest and dividend income |
225,495 | 232,870 | 7,375 | |||||||||
Interest expense |
(28,078 | ) | (32,217 | ) | (4,139 | ) | ||||||
Foreign exchange gain (loss), net |
12,400 | (79,020 | ) | (91,420 | ) | |||||||
Unrealized gains (losses) on equity securities |
(341,054 | ) | (24,600 | ) | 316,454 | |||||||
Other income (loss), net |
(50,843 | ) | 14,705 | 65,548 | ||||||||
|
|
|
|
|
|
|||||||
Total other income (expense) |
(182,080 | ) | 111,738 | 293,818 | ||||||||
|
|
|
|
|
|
|||||||
Income before income taxes and equity in earnings of affiliated companies |
2,285,465 | 2,554,607 | 269,142 | |||||||||
|
|
|
|
|
|
|||||||
Provision for income taxes |
659,944 | 683,430 | 23,486 | |||||||||
Equity in earnings of affiliated companies |
360,066 | 271,152 | (88,914 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net income |
1,985,587 | 2,142,329 | 156,742 | |||||||||
|
|
|
|
|
|
|||||||
Less Net income attributable to noncontrolling interests |
(102,714 | ) | (66,146 | ) | 36,568 | |||||||
|
|
|
|
|
|
|||||||
Net income attributable to Toyota Motor Corporation |
1,882,873 | 2,076,183 | 193,310 | |||||||||
|
|
|
|
|
|
|||||||
Note: Net income attributable to common shareholders for the fiscal year ended March 31, 2020 and 2019 is 2,058,899 million yen and 1,868,085 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 17,284 million yen and 14,788 million yen, respectively, from Net income attributable to Toyota Motor Corporation.
|
| |||||||||||
(Yen) | ||||||||||||
Net income attributable to Toyota Motor Corporation per common share |
||||||||||||
Basic |
650.55 | 735.61 | 85.06 | |||||||||
Diluted |
645.11 | 729.50 | 84.39 |
9
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Consolidated Statements of Comprehensive Income
(Yen in millions) | ||||||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
Increase (Decrease) |
||||||||||
Net income |
1,985,587 | 2,142,329 | 156,742 | |||||||||
Other comprehensive income (loss), net of tax |
||||||||||||
Foreign currency translation adjustments |
27,016 | (333,854 | ) | (360,870 | ) | |||||||
Unrealized gains (losses) on securities |
(21,165 | ) | 118,363 | 139,528 | ||||||||
Pension liability adjustments |
(54,836 | ) | (60,196 | ) | (5,360 | ) | ||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss) |
(48,985 | ) | (275,687 | ) | (226,702 | ) | ||||||
|
|
|
|
|
|
|||||||
Comprehensive income |
1,936,602 | 1,866,642 | (69,960 | ) | ||||||||
|
|
|
|
|
|
|||||||
Less Comprehensive income attributable to noncontrolling interests |
(96,458 | ) | (45,878 | ) | 50,580 | |||||||
|
|
|
|
|
|
|||||||
Comprehensive income attributable to Toyota Motor Corporation |
1,840,144 | 1,820,764 | (19,380 | ) | ||||||||
|
|
|
|
|
|
10
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(3) Consolidated Statements of Shareholders Equity
(Yen in millions) | ||||||||||||||||||||||||||||||||
FY2019 (For the year ended March 31, 2019) | ||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income (loss) |
Treasury stock, at cost |
Total Toyota Motor Corporation shareholders equity |
Noncontrolling interests |
Total shareholders equity |
|||||||||||||||||||||||||
Balances at March 31, 2018 |
397,050 | 487,502 | 19,473,464 | 435,699 | (2,057,733 | ) | 18,735,982 | 694,120 | 19,430,102 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cumulative effect of |
1,282,082 | (1,309,620 | ) | (27,538 | ) | (27,538 | ) | |||||||||||||||||||||||||
Equity transaction with |
105 | 105 | (2,226 | ) | (2,121 | ) | ||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
1,882,873 | 1,882,873 | 102,714 | 1,985,587 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
29,448 | 29,448 | (2,432 | ) | 27,016 | |||||||||||||||||||||||||||
Unrealized gains (losses) on securities |
(21,111 | ) | (21,111 | ) | (54 | ) | (21,165 | ) | ||||||||||||||||||||||||
Pension liability adjustments |
(51,066 | ) | (51,066 | ) | (3,770 | ) | (54,836 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
1,840,144 | 96,458 | 1,936,602 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Accretion to Mezzanine equity |
(4,850 | ) | (4,850 | ) | (4,850 | ) | ||||||||||||||||||||||||||
Dividends to Toyota Motor Corporation class shareholders |
(9,938 | ) | (9,938 | ) | (9,938 | ) | ||||||||||||||||||||||||||
Dividends paid to Toyota Motor Corporation common shareholders |
(636,116 | ) | (636,116 | ) | (636,116 | ) | ||||||||||||||||||||||||||
Dividends paid to noncontrolling interests |
(69,367 | ) | (69,367 | ) | ||||||||||||||||||||||||||||
Repurchase of treasury stock |
(550,107 | ) | (550,107 | ) | (550,107 | ) | ||||||||||||||||||||||||||
Reissuance of treasury stock |
(445 | ) | 915 | 470 | 470 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances at March 31, 2019 |
397,050 | 487,162 | 21,987,515 | (916,650 | ) | (2,606,925 | ) | 19,348,152 | 718,985 | 20,067,137 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(Yen in millions) | ||||||||||||||||||||||||||||||||
FY2020 (For the year ended March 31, 2020) | ||||||||||||||||||||||||||||||||
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income (loss) |
Treasury stock, at cost |
Total Toyota Motor Corporation shareholders equity |
Noncontrolling interests |
Total shareholders equity |
|||||||||||||||||||||||||
Balances at March 31, 2019 |
397,050 | 487,162 | 21,987,515 | (916,650 | ) | (2,606,925 | ) | 19,348,152 | 718,985 | 20,067,137 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity transaction with noncontrolling interests and other |
(1,881 | ) | 5,796 | 3,915 | (32,854 | ) | (28,939 | ) | ||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
2,076,183 | 2,076,183 | 66,146 | 2,142,329 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
(313,186 | ) | (313,186 | ) | (20,668 | ) | (333,854 | ) | ||||||||||||||||||||||||
Unrealized gains (losses) on securities |
118,403 | 118,403 | (40 | ) | 118,363 | |||||||||||||||||||||||||||
Pension liability adjustments |
(60,636 | ) | (60,636 | ) | 440 | (60,196 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total comprehensive income |
1,820,764 | 45,878 | 1,866,642 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
Accretion to Mezzanine equity |
(4,850 | ) | (4,850 | ) | (4,850 | ) | ||||||||||||||||||||||||||
Dividends to Toyota Motor Corporation class shareholders |
(12,434 | ) | (12,434 | ) | (12,434 | ) | ||||||||||||||||||||||||||
Dividends paid to Toyota Motor Corporation common shareholders |
(618,801 | ) | (618,801 | ) | (618,801 | ) | ||||||||||||||||||||||||||
Dividends paid to noncontrolling interests |
(54,945 | ) | (54,945 | ) | ||||||||||||||||||||||||||||
Repurchase of treasury stock |
(500,309 | ) | (500,309 | ) | (500,309 | ) | ||||||||||||||||||||||||||
Reissuance of treasury stock |
4,053 | 20,128 | 24,181 | 24,181 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balances at March 31, 2020 |
397,050 | 489,334 | 23,427,613 | (1,166,273 | ) | (3,087,106 | ) | 20,060,618 | 677,064 | 20,737,682 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(4) | Consolidated Statements of Cash Flows |
(Yen in millions) | ||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
1,985,587 | 2,142,329 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation |
1,792,375 | 1,605,383 | ||||||
Provision (reversal) for doubtful accounts and credit losses |
80,065 | 142,982 | ||||||
Pension and severance costs, less payments |
31,645 | 15,699 | ||||||
Losses on disposal of fixed assets |
35,902 | 56,913 | ||||||
Unrealized losses (gains) on securities |
339,472 | 20,082 | ||||||
Deferred income taxes |
(86,594 | ) | 192,147 | |||||
Equity in earnings of affiliated companies |
(360,066 | ) | (271,152 | ) | ||||
Changes in operating assets and liabilities, and other |
(51,789 | ) | (313,740 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
3,766,597 | 3,590,643 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Additions to finance receivables |
(15,884,610 | ) | (16,896,588 | ) | ||||
Collection of and proceeds from sales of finance receivables |
14,859,103 | 15,667,462 | ||||||
Additions to fixed assets excluding equipment leased to others |
(1,452,725 | ) | (1,407,832 | ) | ||||
Additions to equipment leased to others |
(2,286,162 | ) | (2,187,299 | ) | ||||
Proceeds from sales of fixed assets excluding equipment leased to others |
65,437 | 48,751 | ||||||
Proceeds from sales of equipment leased to others |
1,385,074 | 1,391,215 | ||||||
Purchases of marketable securities and security investments |
(1,840,355 | ) | (2,413,087 | ) | ||||
Proceeds from sales of and maturity of marketable securities and security investments |
2,698,798 | 2,370,406 | ||||||
Payment for additional investments in affiliated companies, net of cash acquired |
5,010 | (14,763 | ) | |||||
Changes in investments and other assets, and other |
(246,811 | ) | 290,874 | |||||
|
|
|
|
|||||
Net cash used in investing activities |
(2,697,241 | ) | (3,150,861 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of long-term debt |
5,000,921 | 5,691,499 | ||||||
Payments of long-term debt |
(4,442,232 | ) | (4,424,923 | ) | ||||
Increase in short-term borrowings |
164,282 | 291,623 | ||||||
Dividends paid to Toyota Motor Corporation class shareholders |
(8,690 | ) | (11,186 | ) | ||||
Dividends paid to Toyota Motor Corporation common shareholders |
(636,116 | ) | (618,801 | ) | ||||
Dividends paid to noncontrolling interests |
(69,367 | ) | (54,945 | ) | ||||
Reissuance (repurchase) of treasury stock |
(549,637 | ) | (476,129 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
(540,839 | ) | 397,138 | |||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
(41,641 | ) | (131,245 | ) | ||||
|
|
|
|
|||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents |
486,876 | 705,675 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year |
3,219,639 | 3,706,515 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at end of year |
3,706,515 | 4,412,190 | ||||||
|
|
|
|
Note: | Cash and cash equivalents and restricted cash and cash equivalents for the fiscal year ended March 31, 2020 include restricted cash and cash equivalents of 131,811 million yen and 221,672 million yen at the beginning of the year and the end of the year, respectively. Restricted cash and cash equivalents were included in Prepaid expenses and other current assets in the consolidated balance sheets. |
12
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
None
(6) Summary of Significant Accounting Policies
Summary of Significant Accounting Policies has been omitted, as there were no significant changes from the most recent Securities Report (filed on June 21, 2019). Changes in accounting principles, procedures, and disclosures for consolidated financial statements by newly issued accounting pronouncements are set forth below.
Adoption of new accounting standard -
In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance for leases. This guidance requires lessees to recognize substantially all leases on their balance sheet as a right-of-use asset and a lease liability. Toyota adopted this guidance on April 1, 2019 using the modified retrospective method of adoption and elected the transition method that allows for application of the standard at the adoption date. Additionally, Toyota elected the package of practical expedients of not reassessing lease classifications and others for lease contracts that expired or exist as of the adoption date. As a result of adoption, Toyota recognized an additional balance of 277,118 million yen as right-of-use assets as of March 31, 2020, which is included in Other of Investments and other assets of Toyotas consolidated balance sheet. Lease liabilities are included in Other current liabilities and Other long-term liabilities, and were 37,385 million yen and 239,623 million yen, respectively.
In August 2017, the FASB issued updated guidance for hedge accounting. This guidance simplifies and expands the application of hedge accounting. Toyota adopted this guidance on April 1, 2019. The adoption of this guidance did not have a material impact on Toyotas consolidated financial statements.
13
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Change in depreciation method -
Toyota used the declining-balance method mainly for the parent company and Japanese subsidiaries, and the straight-line method for foreign subsidiary companies, regarding the depreciation method of property, plant and equipment. In recent years, Toyota has been strengthening competitiveness globally through the investments in areas such as the remodeling of cars by introducing a new platform and powertrain units, the improvement of technological capabilities and productivity, as well as the promotion of equipment versatility. In response to such recent changes, effective as of April 1, 2019, Toyota changed the depreciation method of the parent company and Japanese subsidiaries to the straight-line method because Toyota believes it better reflects the future economic benefit from the stable usage of property, plant and equipment. The impact of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 Accounting Changes and Error Corrections.
As a result of the change in depreciation method, depreciation expense for the fiscal year ended March 31, 2020 decreased by 173,201 million yen. Net income attributable to Toyota Motor Corporation and basic net income attributable to Toyota Motor Corporation per common share for the fiscal year ended March 31, 2020 increased by 117,001 million yen and 41.80 yen, respectively.
14
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(i) Segment Operating Results and Assets
FY2019 (As of and for the year ended March 31, 2019)
(Yen in millions) | ||||||||||||||||||||
Automotive | Financial Services |
All Other | Inter-segment Elimination and/or Unallocated Amount |
Consolidated | ||||||||||||||||
Net revenues: |
||||||||||||||||||||
Sales to external customers |
27,034,492 | 2,120,343 | 1,070,846 | | 30,225,681 | |||||||||||||||
Inter-segment sales and transfers |
44,585 | 33,204 | 605,531 | (683,320 | ) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
27,079,077 | 2,153,547 | 1,676,377 | (683,320 | ) | 30,225,681 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
25,040,193 | 1,830,726 | 1,570,839 | (683,622 | ) | 27,758,136 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
2,038,884 | 322,821 | 105,538 | 302 | 2,467,545 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Assets |
17,799,376 | 24,044,700 | 2,125,271 | 7,967,602 | 51,936,949 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investment in equity method investees |
3,215,856 | 12,172 | | 85,675 | 3,313,703 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation expenses |
997,312 | 758,847 | 36,216 | | 1,792,375 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditure |
1,520,366 | 2,165,609 | 66,075 | (13,163 | ) | 3,738,887 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
FY2020 (As of and for the year ended March 31, 2020)
(Yen in millions) | ||||||||||||||||||||
Automotive | Financial Services |
All Other | Inter-segment Elimination and/or Unallocated Amount |
Consolidated | ||||||||||||||||
Net revenues: |
||||||||||||||||||||
Sales to external customers |
26,834,485 | 2,170,243 | 925,264 | | 29,929,992 | |||||||||||||||
Inter-segment sales and transfers |
29,029 | 20,316 | 579,286 | (628,631 | ) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
26,863,514 | 2,190,559 | 1,504,550 | (628,631 | ) | 29,929,992 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
24,811,168 | 1,898,376 | 1,407,895 | (630,316 | ) | 27,487,123 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
2,052,346 | 292,183 | 96,655 | 1,685 | 2,442,869 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Assets |
18,754,728 | 24,858,837 | 2,023,111 | 7,043,760 | 52,680,436 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investment in equity method investees |
3,711,151 | 61,852 | 180,425 | 137,362 | 4,090,790 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation expenses |
824,777 | 743,710 | 36,896 | | 1,605,383 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital expenditure |
1,454,142 | 2,062,718 | 71,554 | 14,818 | 3,603,232 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Note: |
Unallocated corporate assets included under Inter-segment Elimination and/or Unallocated Amount for FY2019 and FY2020 are 9,329,020 million yen and 8,630,468 million yen, respectively, and consist primarily of funds such as cash and cash equivalents, marketable securities and portion of security investments held by the parent company. |
15
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(ii) Consolidated Financial Statements as Classified into Non-Financial Services Business and Financial Services Business
Consolidated Balance Sheets as Classified into Non-Financial Services Business and Financial Services Business
(Yen in millions) | ||||||||||||
FY2019 (March 31, 2019) |
FY2020 (March 31, 2020) |
Increase (Decrease) |
||||||||||
Assets |
||||||||||||
(Non-financial services) |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
2,790,212 | 2,774,498 | (15,714 | ) | ||||||||
Marketable securities |
1,108,540 | 648,982 | (459,558 | ) | ||||||||
Trade accounts and notes receivable, less allowance for doubtful accounts |
2,489,105 | 2,155,943 | (333,162 | ) | ||||||||
Inventories |
2,656,396 | 2,434,916 | (221,480 | ) | ||||||||
Prepaid expenses and other current assets |
2,118,922 | 2,413,274 | 294,352 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
11,163,175 | 10,427,613 | (735,562 | ) | ||||||||
|
|
|
|
|
|
|||||||
Investments and other assets |
11,643,209 | 12,435,115 | 791,906 | |||||||||
Property, plant and equipment |
6,178,503 | 6,293,992 | 115,489 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
28,984,887 | 29,156,720 | 171,833 | |||||||||
|
|
|
|
|
|
|||||||
(Financial services) |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
784,492 | 1,416,020 | 631,528 | |||||||||
Marketable securities |
18,620 | 29,749 | 11,129 | |||||||||
Finance receivables, net |
6,647,771 | 6,614,171 | (33,600 | ) | ||||||||
Prepaid expenses and other current assets |
997,116 | 1,205,912 | 208,796 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
8,447,999 | 9,265,852 | 817,853 | |||||||||
|
|
|
|
|
|
|||||||
Noncurrent finance receivables, net |
10,281,118 | 10,423,858 | 142,740 | |||||||||
Investments and other assets |
808,592 | 861,594 | 53,002 | |||||||||
Property, plant and equipment |
4,506,991 | 4,307,533 | (199,458 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total assets |
24,044,700 | 24,858,837 | 814,137 | |||||||||
|
|
|
|
|
|
|||||||
(Elimination) |
||||||||||||
Elimination of assets |
(1,092,638 | ) | (1,335,121 | ) | (242,483 | ) | ||||||
|
|
|
|
|
|
|||||||
(Consolidated) |
||||||||||||
Total assets |
51,936,949 | 52,680,436 | 743,487 | |||||||||
|
|
|
|
|
|
Note: Assets in the non-financial services include unallocated corporate assets.
16
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(Yen in millions) | ||||||||||||
FY2019 (March 31, 2019) |
FY2020 (March 31, 2020) |
Increase (Decrease) |
||||||||||
Liabilities |
||||||||||||
(Non-financial services) |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
579,901 | 483,871 | (96,030 | ) | ||||||||
Current portion of long-term debt |
173,379 | 156,664 | (16,715 | ) | ||||||||
Accounts payable |
2,616,143 | 2,404,385 | (211,758 | ) | ||||||||
Accrued expenses |
3,075,411 | 2,789,153 | (286,258 | ) | ||||||||
Income taxes payable |
300,703 | 201,200 | (99,503 | ) | ||||||||
Other current liabilities |
1,755,737 | 1,773,883 | 18,146 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
8,501,274 | 7,809,156 | (692,118 | ) | ||||||||
|
|
|
|
|
|
|||||||
Long-term liabilities: |
||||||||||||
Long-term debt |
784,256 | 818,371 | 34,115 | |||||||||
Accrued pension and severance costs |
948,377 | 963,061 | 14,684 | |||||||||
Other long-term liabilities |
1,059,237 | 1,303,628 | 244,391 | |||||||||
|
|
|
|
|
|
|||||||
Total long-term liabilities |
2,791,870 | 3,085,060 | 293,190 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
11,293,144 | 10,894,216 | (398,928 | ) | ||||||||
|
|
|
|
|
|
|||||||
(Financial services) |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
5,113,888 | 5,432,180 | 318,292 | |||||||||
Current portion of long-term debt |
4,127,133 | 4,508,666 | 381,533 | |||||||||
Accounts payable |
39,187 | 39,226 | 39 | |||||||||
Accrued expenses |
161,105 | 151,857 | (9,248 | ) | ||||||||
Income taxes payable |
20,295 | 16,917 | (3,378 | ) | ||||||||
Other current liabilities |
997,842 | 982,892 | (14,950 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
10,459,450 | 11,131,738 | 672,288 | |||||||||
|
|
|
|
|
|
|||||||
Long-term liabilities: |
||||||||||||
Long-term debt |
9,974,516 | 10,006,491 | 31,975 | |||||||||
Accrued pension and severance costs |
15,029 | 15,566 | 537 | |||||||||
Other long-term liabilities |
722,279 | 725,769 | 3,490 | |||||||||
|
|
|
|
|
|
|||||||
Total long-term liabilities |
10,711,824 | 10,747,826 | 36,002 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
21,171,274 | 21,879,564 | 708,290 | |||||||||
|
|
|
|
|
|
|||||||
(Elimination) Elimination of liabilities |
(1,092,679 | ) | (1,335,195 | ) | (242,516 | ) | ||||||
|
|
|
|
|
|
|||||||
(Consolidated) Total liabilities |
31,371,739 | 31,438,585 | 66,846 | |||||||||
|
|
|
|
|
|
|||||||
(Consolidated) Mezzanine equity |
498,073 | 504,169 | 6,096 | |||||||||
|
|
|
|
|
|
|||||||
Shareholders equity |
||||||||||||
(Consolidated) Total Toyota Motor Corporation shareholders equity |
19,348,152 | 20,060,618 | 712,466 | |||||||||
|
|
|
|
|
|
|||||||
(Consolidated) Noncontrolling interests |
718,985 | 677,064 | (41,921 | ) | ||||||||
|
|
|
|
|
|
|||||||
(Consolidated) Total shareholders equity |
20,067,137 | 20,737,682 | 670,545 | |||||||||
|
|
|
|
|
|
|||||||
(Consolidated) Total liabilities, mezzanine equity and shareholders equity |
51,936,949 | 52,680,436 | 743,487 | |||||||||
|
|
|
|
|
|
17
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Consolidated Statements of Income as Classified into Non-Financial Services Business and Financial Services Business
(Yen in millions) | ||||||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
Increase (Decrease) |
||||||||||
(Non-financial services) |
||||||||||||
Net revenues |
28,133,676 | 27,775,932 | (357,744 | ) | ||||||||
Costs and expenses: |
25,991,799 | 25,626,710 | (365,089 | ) | ||||||||
Cost of revenues |
23,400,550 | 23,143,209 | (257,341 | ) | ||||||||
Selling, general and administrative |
2,591,249 | 2,483,501 | (107,748 | ) | ||||||||
|
|
|
|
|
|
|||||||
Operating income |
2,141,877 | 2,149,222 | 7,345 | |||||||||
|
|
|
|
|
|
|||||||
Other income (expense), net |
(161,608 | ) | 130,259 | 291,867 | ||||||||
|
|
|
|
|
|
|||||||
Income before income taxes and equity in earnings of affiliated companies |
1,980,269 | 2,279,481 | 299,212 | |||||||||
|
|
|
|
|
|
|||||||
Provision for income taxes |
580,031 | 618,252 | 38,221 | |||||||||
Equity in earnings of affiliated companies |
357,527 | 260,149 | (97,378 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net income |
1,757,765 | 1,921,378 | 163,613 | |||||||||
|
|
|
|
|
|
|||||||
Less Net income attributable to noncontrolling interests |
(97,500 | ) | (67,559 | ) | 29,941 | |||||||
|
|
|
|
|
|
|||||||
Net income attributable to Toyota Motor Corporation |
1,660,265 | 1,853,819 | 193,554 | |||||||||
|
|
|
|
|
|
|||||||
(Financial services) |
||||||||||||
Net revenues |
2,153,547 | 2,190,559 | 37,012 | |||||||||
Costs and expenses: |
1,830,726 | 1,898,376 | 67,650 | |||||||||
Cost of revenues |
1,418,636 | 1,395,211 | (23,425 | ) | ||||||||
Selling, general and administrative |
412,090 | 503,165 | 91,075 | |||||||||
|
|
|
|
|
|
|||||||
Operating income |
322,821 | 292,183 | (30,638 | ) | ||||||||
|
|
|
|
|
|
|||||||
Other income (expense), net |
(17,658 | ) | (17,103 | ) | 555 | |||||||
|
|
|
|
|
|
|||||||
Income before income taxes and equity in earnings of affiliated companies |
305,163 | 275,080 | (30,083 | ) | ||||||||
|
|
|
|
|
|
|||||||
Provision for income taxes |
79,903 | 65,164 | (14,739 | ) | ||||||||
Equity in earnings of affiliated companies |
2,539 | 11,003 | 8,464 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
227,799 | 220,919 | (6,880 | ) | ||||||||
|
|
|
|
|
|
|||||||
Less Net income attributable to noncontrolling interests |
(5,214 | ) | 1,413 | 6,627 | ||||||||
|
|
|
|
|
|
|||||||
Net income attributable to Toyota Motor Corporation |
222,585 | 222,332 | (253 | ) | ||||||||
|
|
|
|
|
|
|||||||
(Elimination) |
||||||||||||
Elimination of net income attributable to Toyota Motor Corporation |
23 | 32 | 9 | |||||||||
|
|
|
|
|
|
|||||||
(Consolidated) |
||||||||||||
Net income attributable to Toyota Motor Corporation |
1,882,873 | 2,076,183 | 193,310 | |||||||||
|
|
|
|
|
|
18
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Consolidated Statements of Cash Flows as Classified into Non-Financial Services Business and Financial Services Business
(Yen in millions) | ||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
|||||||
(Non-financial services) |
||||||||
Cash flows from operating activities: |
||||||||
Net income |
1,757,765 | 1,921,378 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation |
1,033,528 | 861,673 | ||||||
Provision (reversal) for doubtful accounts |
(1,375 | ) | 5,689 | |||||
Pension and severance costs, less payments |
30,477 | 14,880 | ||||||
Losses on disposal of fixed assets |
33,676 | 54,549 | ||||||
Unrealized losses (gains) on securities |
338,626 | 21,069 | ||||||
Deferred income taxes |
(110,346 | ) | 193,438 | |||||
Equity in earnings of affiliated companies |
(357,527 | ) | (260,149 | ) | ||||
Changes in operating assets and liabilities, and other |
(17,488 | ) | (305,705 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
2,707,336 | 2,506,822 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Additions to fixed assets excluding equipment leased to others |
(1,435,964 | ) | (1,377,238 | ) | ||||
Additions to equipment leased to others |
(137,314 | ) | (155,601 | ) | ||||
Proceeds from sales of fixed assets excluding equipment leased to others |
63,955 | 47,488 | ||||||
Proceeds from sales of equipment leased to others |
60,657 | 49,913 | ||||||
Purchases of marketable securities and security investments |
(1,737,107 | ) | (2,236,585 | ) | ||||
Proceeds from sales of and maturity of marketable securities and security investments |
2,255,635 | 2,245,119 | ||||||
Payment for additional investments in affiliated companies, net of cash acquired |
5,010 | | ||||||
Changes in investments and other assets, and other |
(268,946 | ) | (18,895 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(1,194,074 | ) | (1,445,799 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of long-term debt |
286,085 | 235,080 | ||||||
Payments of long-term debt |
(142,556 | ) | (130,695 | ) | ||||
Increase in short-term borrowings |
49,161 | 51,406 | ||||||
Dividends paid to Toyota Motor Corporation class shareholders |
(8,690 | ) | (11,186 | ) | ||||
Dividends paid to Toyota Motor Corporation common shareholders |
(636,116 | ) | (618,801 | ) | ||||
Dividends paid to noncontrolling interests |
(69,367 | ) | (54,945 | ) | ||||
Reissuance (repurchase) of treasury stock |
(549,637 | ) | (476,129 | ) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
(1,071,120 | ) | (1,005,270 | ) | ||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
(42,454 | ) | (71,467 | ) | ||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
399,688 | (15,714 | ) | |||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year |
2,390,524 | 2,790,212 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at end of year |
2,790,212 | 2,774,498 | ||||||
|
|
|
|
19
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(Yen in millions) | ||||||||
FY2019 (For the year ended March 31, 2019) |
FY2020 (For the year ended March 31, 2020) |
|||||||
(Financial services) |
||||||||
Cash flows from operating activities: |
||||||||
Net income |
227,799 | 220,919 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation |
758,847 | 743,710 | ||||||
Provision (reversal) for doubtful accounts and credit losses |
81,440 | 137,293 | ||||||
Pension and severance costs, less payments |
1,168 | 819 | ||||||
Losses on disposal of fixed assets |
2,226 | 2,364 | ||||||
Unrealized losses (gains) on securities |
846 | (987 | ) | |||||
Deferred income taxes |
23,742 | (1,305 | ) | |||||
Equity in earnings of affiliated companies |
(2,539 | ) | (11,003 | ) | ||||
Changes in operating assets and liabilities, and other |
15,557 | (46,610 | ) | |||||
|
|
|
|
|||||
Net cash provided by operating activities |
1,109,086 | 1,045,200 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Additions to finance receivables |
(26,000,249 | ) | (26,668,185 | ) | ||||
Collection of and proceeds from sales of finance receivables |
24,925,930 | 25,557,953 | ||||||
Additions to fixed assets excluding equipment leased to others |
(16,761 | ) | (30,594 | ) | ||||
Additions to equipment leased to others |
(2,148,848 | ) | (2,031,698 | ) | ||||
Proceeds from sales of fixed assets excluding equipment leased to others |
1,482 | 1,263 | ||||||
Proceeds from sales of equipment leased to others |
1,324,417 | 1,341,302 | ||||||
Purchases of marketable securities and security investments |
(103,248 | ) | (176,502 | ) | ||||
Proceeds from sales of and maturity of marketable securities and security investments |
443,163 | 125,287 | ||||||
Payment for additional investments in affiliated companies, net of cash acquired |
| (14,763 | ) | |||||
Changes in investments and other assets, and other |
(4,130 | ) | (20,037 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(1,578,244 | ) | (1,915,974 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of long-term debt |
4,747,506 | 5,466,618 | ||||||
Payments of long-term debt |
(4,336,250 | ) | (4,335,145 | ) | ||||
Increase in short-term borrowings |
144,277 | 520,468 | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
555,533 | 1,651,941 | ||||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
813 | (59,778 | ) | |||||
|
|
|
|
|||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents |
87,188 | 721,389 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year |
829,115 | 916,303 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at end of year |
916,303 | 1,637,692 | ||||||
|
|
|
|
|||||
(Consolidated) |
||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
(41,641 | ) | (131,245 | ) | ||||
|
|
|
|
|||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents |
486,876 | 705,675 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year |
3,219,639 | 3,706,515 | ||||||
|
|
|
|
|||||
Cash and cash equivalents and restricted cash and cash equivalents at end of year |
3,706,515 | 4,412,190 | ||||||
|
|
|
|
20
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(iii) Geographic Information
FY2019 (As of and for the year ended March 31, 2019)
(Yen in millions) | ||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other | Inter-segment Elimination and/or Unallocated Amount |
Consolidated | ||||||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||||||
Sales to external customers |
9,520,148 | 10,585,934 | 3,055,654 | 4,832,392 | 2,231,553 | | 30,225,681 | |||||||||||||||||||||
Inter-segment sales and transfers |
7,105,213 | 231,313 | 183,197 | 680,639 | 101,890 | (8,302,252 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
16,625,361 | 10,817,247 | 3,238,851 | 5,513,031 | 2,333,443 | (8,302,252 | ) | 30,225,681 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
14,933,686 | 10,702,732 | 3,113,983 | 5,055,542 | 2,242,333 | (8,290,140 | ) | 27,758,136 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
1,691,675 | 114,515 | 124,868 | 457,489 | 91,110 | (12,112 | ) | 2,467,545 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets |
16,465,702 | 17,452,216 | 3,872,301 | 5,176,990 | 3,067,270 | 5,902,470 | 51,936,949 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2020 (As of and for the year ended March 31, 2020)
(Yen in millions) | ||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other | Inter-segment Elimination and/or Unallocated Amount |
Consolidated | ||||||||||||||||||||||
Net revenues: |
||||||||||||||||||||||||||||
Sales to external customers |
9,522,905 | 10,416,582 | 3,138,755 | 4,828,635 | 2,023,115 | | 29,929,992 | |||||||||||||||||||||
Inter-segment sales and transfers |
6,938,616 | 222,166 | 222,123 | 510,021 | 89,387 | (7,982,313 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
16,461,521 | 10,638,748 | 3,360,878 | 5,338,656 | 2,112,502 | (7,982,313 | ) | 29,929,992 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
14,893,543 | 10,368,119 | 3,210,333 | 4,967,657 | 2,021,778 | (7,974,307 | ) | 27,487,123 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income |
1,567,978 | 270,629 | 150,545 | 370,999 | 90,724 | (8,006 | ) | 2,442,869 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets |
17,517,032 | 18,012,336 | 4,192,858 | 5,241,588 | 2,837,944 | 4,878,678 | 52,680,436 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: | 1. | Unallocated corporate assets included under Inter-segment Elimination and/or Unallocated Amount for FY2019 and FY2020 are 9,329,020 million yen and 8,630,468 million yen, respectively, and consist primarily of funds such as cash and cash equivalents, marketable securities and portion of security investments held by the parent company. | ||
2. |
Other consists of Central and South America, Oceania, Africa and the Middle East. |
21
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
Basic and diluted net income attributable to Toyota Motor Corporation per common share for the years ended March 31, 2019 and 2020 are as follows:
Yen in millions | Thousands of shares |
Yen | ||||||||||
Net income attributable to Toyota Motor Corporation |
Weighted-average common shares |
Net
income attributable to Toyota Motor Corporation per common share |
||||||||||
For the year ended March 31, 2019 |
||||||||||||
Net income attributable to Toyota Motor Corporation |
1,882,873 | |||||||||||
Accretion to Mezzanine equity |
(4,850 | ) | ||||||||||
Dividends to Toyota Motor Corporation Model AA Class Shareholders |
(9,938 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Basic net income attributable to Toyota Motor Corporation per common share |
1,868,085 | 2,871,534 | 650.55 | |||||||||
Effect of dilutive securities |
||||||||||||
Model AA Class Shares |
14,788 | 47,100 | ||||||||||
Assumed exercise of dilutive stock options |
(0 | ) | 40 | |||||||||
|
|
|
|
|
|
|||||||
Diluted net income attributable to Toyota Motor Corporation per common share |
1,882,873 | 2,918,674 | 645.11 | |||||||||
|
|
|
|
|
|
|||||||
For the year ended March 31, 2020 |
||||||||||||
Net income attributable to Toyota Motor Corporation |
2,076,183 | |||||||||||
Accretion to Mezzanine equity |
(4,850 | ) | ||||||||||
Dividends to Toyota Motor Corporation Model AA Class Shareholders |
(12,434 | ) | ||||||||||
|
|
|
|
|
|
|||||||
Basic net income attributable to Toyota Motor Corporation per common share |
2,058,899 | 2,798,918 | 735.61 | |||||||||
Effect of dilutive securities |
||||||||||||
Model AA Class Shares |
17,284 | 47,100 | ||||||||||
Assumed exercise of dilutive stock options |
| | ||||||||||
|
|
|
|
|
|
|||||||
Diluted net income attributable to Toyota Motor Corporation per common share |
2,076,183 | 2,846,018 | 729.50 | |||||||||
|
|
|
|
|
|
The following table shows Toyota Motor Corporation shareholders equity per share as of March 31, 2019 and 2020.
Yen in millions | Thousands of shares |
Yen | ||||||||||
Toyota Motor Corporation shareholders equity |
Common shares issued and outstanding at the end of the year (excluding treasury stock) |
Toyota Motor Corporation shareholders equity per share |
||||||||||
As of March 31, 2019 |
19,348,152 | 2,832,439 | 6,830.92 | |||||||||
As of March 31, 2020 |
20,060,618 | 2,766,153 | 7,252.17 |
22
TOYOTA MOTOR CORPORATION FY2020 Financial Summary
(9) Significant Subsequent Events
Plant suspensions
For reasons such as government directives as well as anticipated reduced demand for its vehicles due to the global spread of COVID-19, Toyota is continuing after April 2020 to suspend temporarily the production of automobiles and components at selected plants in Japan and overseas. It is uncertain how this suspension will affect Toyotas financial results.
Borrowing funds
Taking into consideration its funding plans, which take into account the risk that COVID-19 will have a prolonged impact, and market trends, in April 2020 Toyota entered into loan agreements and began borrowing funds in an aggregate amount of 1,250,000 million yen with multiple domestic financial institutions. The interest rates under the loan agreements are approximately the same as prevailing market rates, and the tenor of the loans are around one year. None of these agreements has collateral or other material covenant provisions.
23
Supplemental Material for Financial Results for FY2020 (Consolidated)
< U.S. GAAP >
FY2019 | FY2020 | FY2021 | ||||||||||||||||||||||||||||||||||||||||||
1Q (2018/4-6) |
2Q (2018/7-9) |
3Q (2018/10-12) |
4Q (2019/1-3) |
12 months (18/4-19/3) |
1Q (2019/4-6) |
2Q (2019/7-9) |
3Q (2019/10-12) |
4Q (2020/1-3) |
12 months (19/4-20/3) |
Forecast 12 months*1 <IFRS> (20/4-21/3) |
||||||||||||||||||||||||||||||||||
Vehicle Production (thousands of units) |
2,199 | 2,184 | 2,262 | 2,340 | 8,985 | 2,311 | 2,236 | 2,146 | 2,126 | 8,820 | ||||||||||||||||||||||||||||||||||
(Japan) |
1,003 | 1,004 | 1,099 | 1,203 | 4,309 | 1,134 | 1,122 | 1,066 | 1,091 | 4,413 | ||||||||||||||||||||||||||||||||||
[Daihatsu & Hino] |
[257 | ] | [257 | ] | [290 | ] | [292 | ] | [1,096 | ] | [265 | ] | [275 | ] | [277 | ] | [292 | ] | [1,109 | ] | ||||||||||||||||||||||||
(Overseas) |
1,196 | 1,180 | 1,163 | 1,138 | 4,676 | 1,178 | 1,114 | 1,080 | 1,035 | 4,406 | ||||||||||||||||||||||||||||||||||
[Daihatsu & Hino] |
[133 | ] | [162 | ] | [161 | ] | [141 | ] | [598 | ] | [124 | ] | [155 | ] | [138 | ] | [127 | ] | [545 | ] | ||||||||||||||||||||||||
North America |
517 | 447 | 435 | 442 | 1,841 | 499 | 456 | 434 | 418 | 1,807 | ||||||||||||||||||||||||||||||||||
Europe |
168 | 159 | 173 | 180 | 679 | 174 | 143 | 182 | 176 | 674 | ||||||||||||||||||||||||||||||||||
Asia |
402 | 449 | 429 | 402 | 1,682 | 386 | 413 | 366 | 357 | 1,522 | ||||||||||||||||||||||||||||||||||
Central and South America |
82 | 93 | 96 | 82 | 353 | 86 | 69 | 76 | 62 | 293 | ||||||||||||||||||||||||||||||||||
Africa |
28 | 31 | 30 | 32 | 121 | 33 | 32 | 22 | 23 | 110 | ||||||||||||||||||||||||||||||||||
Vehicle Sales |
2,236 | 2,183 | 2,282 | 2,276 | 8,977 | 2,302 | 2,333 | 2,196 | 2,128 | 8,958 | |
as premise: 7,000 |
| |||||||||||||||||||||||||||||||
[First Half 6 months] |
[4,419 | ] | [4,634 | ] | ||||||||||||||||||||||||||||||||||||||||
(Japan) |
510 | 521 | 565 | 631 | 2,226 | 555 | 585 | 516 | 583 | 2,240 | ||||||||||||||||||||||||||||||||||
[Daihatsu & Hino] |
[155 | ] | [161 | ] | [169 | ] | [203 | ] | [688 | ] | [158 | ] | [183 | ] | [139 | ] | [177 | ] | [657 | ] | ||||||||||||||||||||||||
(Overseas) |
1,726 | 1,662 | 1,717 | 1,645 | 6,751 | 1,746 | 1,748 | 1,679 | 1,545 | 6,719 | ||||||||||||||||||||||||||||||||||
[Daihatsu & Hino] |
[75 | ] | [87 | ] | [89 | ] | [86 | ] | [337 | ] | [65 | ] | [76 | ] | [70 | ] | [74 | ] | [285 | ] | ||||||||||||||||||||||||
North America |
746 | 665 | 680 | 654 | 2,745 | 744 | 702 | 668 | 600 | 2,713 | ||||||||||||||||||||||||||||||||||
Europe |
253 | 240 | 232 | 269 | 994 | 274 | 250 | 246 | 259 | 1,029 | ||||||||||||||||||||||||||||||||||
Asia |
394 | 417 | 464 | 410 | 1,684 | 398 | 431 | 406 | 370 | 1,605 | ||||||||||||||||||||||||||||||||||
Central and South America |
117 | 120 | 114 | 97 | 448 | 104 | 109 | 114 | 77 | 403 | ||||||||||||||||||||||||||||||||||
Oceania |
72 | 74 | 66 | 60 | 272 | 66 | 64 | 63 | 69 | 262 | ||||||||||||||||||||||||||||||||||
Africa |
48 | 50 | 54 | 48 | 200 | 54 | 63 | 43 | 48 | 207 | ||||||||||||||||||||||||||||||||||
Middle East |
93 | 95 | 105 | 104 | 398 | 106 | 128 | 138 | 122 | 493 | ||||||||||||||||||||||||||||||||||
Other |
2 | 2 | 2 | 2 | 8 | 2 | 2 | 2 | 2 | 7 | ||||||||||||||||||||||||||||||||||
Total Retail Unit Sales |
2,616 | 2,677 | 2,707 | 2,602 | 10,603 | 2,709 | 2,745 | 2,685 | 2,317 | 10,457 | |
as premise: 8,900 |
| |||||||||||||||||||||||||||||||
Housing Sales (units) |
1,892 | 4,808 | 2,656 | 5,777 | 15,133 | 2,164 | 4,821 | 2,610 | | 9,595 |
Supplemental 1
Supplemental Material for Financial Results for FY2020 (Consolidated)
< U.S. GAAP >
FY2019 | FY2020 | FY2021 | ||||||||||||||||||||||||||||||||||||||||||
1Q (2018/4-6) |
2Q (2018/7-9) |
3Q (2018/10-12) |
4Q (2019/1-3) |
12 months (18/4-19/3) |
1Q (2019/4-6) |
2Q (2019/7-9) |
3Q (2019/10-12) |
4Q (2020/1-3) |
12 months (19/4-20/3) |
Forecast 12 months*1 <IFRS> (20/4-21/3) |
||||||||||||||||||||||||||||||||||
Foreign Exchange Rates |
||||||||||||||||||||||||||||||||||||||||||||
Yen to US Dollar Rate |
109 | 111 | 113 | 110 | 111 | 110 | 107 | 109 | 109 | 109 | as premise: 105 | |||||||||||||||||||||||||||||||||
Yen to Euro Rate |
130 | 130 | 129 | 125 | 128 | 123 | 119 | 120 | 120 | 121 | as premise: 115 | |||||||||||||||||||||||||||||||||
Market Share (Japan) |
||||||||||||||||||||||||||||||||||||||||||||
Toyota (excluding Mini-Vehicles) (%) |
46.2 | 45.2 | 47.3 | 45.1 | 45.9 | 49.0 | 47.6 | 51.2 | 47.9 | 48.8 | ||||||||||||||||||||||||||||||||||
Toyota, Daihatsu and Hino |
43.8 | 42.7 | 44.9 | 43.1 | 43.6 | 45.2 | 45.2 | 47.4 | 44.7 | 45.5 | ||||||||||||||||||||||||||||||||||
Number of Employees |
373,272 | 371,796 | 371,495 | 370,870 | 370,870 | 376,445 | 374,014 | 372,636 | 359,542 | 359,542 | (Note 1) | |||||||||||||||||||||||||||||||||
Net Revenues (billions of yen) |
7,362.7 | 7,311.2 | 7,801.5 | 7,750.1 | 30,225.6 | 7,646.0 | 7,639.5 | 7,544.5 | 7,099.8 | 29,929.9 | 24,000.0 | *2 | ||||||||||||||||||||||||||||||||
Geographic Information |
||||||||||||||||||||||||||||||||||||||||||||
Japan |
3,865.4 | 4,012.3 | 4,259.8 | 4,487.7 | 16,625.3 | 4,178.5 | 4,250.8 | 4,051.0 | 3,981.0 | 16,461.5 | ||||||||||||||||||||||||||||||||||
North America |
2,791.1 | 2,636.4 | 2,753.7 | 2,635.9 | 10,817.2 | 2,833.5 | 2,681.7 | 2,708.7 | 2,414.6 | 10,638.7 | ||||||||||||||||||||||||||||||||||
Europe |
785.8 | 795.8 | 784.0 | 873.0 | 3,238.8 | 862.1 | 818.7 | 853.9 | 826.0 | 3,360.8 | ||||||||||||||||||||||||||||||||||
Asia |
1,316.2 | 1,318.7 | 1,496.5 | 1,381.4 | 5,513.0 | 1,314.3 | 1,367.3 | 1,347.1 | 1,309.9 | 5,338.6 | ||||||||||||||||||||||||||||||||||
Other |
598.4 | 608.3 | 592.8 | 533.7 | 2,333.4 | 550.0 | 548.2 | 535.8 | 478.4 | 2,112.5 | ||||||||||||||||||||||||||||||||||
Elimination |
-1,994.4 | -2,060.4 | -2,085.5 | -2,161.7 | -8,302.2 | -2,092.5 | -2,027.4 | -1,952.1 | -1,910.2 | -7,982.3 | ||||||||||||||||||||||||||||||||||
Business Segment |
||||||||||||||||||||||||||||||||||||||||||||
Automotive |
6,633.4 | 6,514.8 | 7,018.4 | 6,912.2 | 27,079.0 | 6,880.9 | 6,808.1 | 6,758.9 | 6,415.4 | 26,863.5 | ||||||||||||||||||||||||||||||||||
Financial Services |
516.8 | 534.4 | 552.4 | 549.8 | 2,153.5 | 547.7 | 541.4 | 553.4 | 547.9 | 2,190.5 | ||||||||||||||||||||||||||||||||||
All Other |
358.0 | 412.3 | 391.2 | 514.6 | 1,676.3 | 370.6 | 454.9 | 378.9 | 300.0 | 1,504.5 | ||||||||||||||||||||||||||||||||||
Elimination |
-145.6 | -150.3 | -160.6 | -226.6 | -683.3 | -153.1 | -165.0 | -146.7 | -163.6 | -628.6 | ||||||||||||||||||||||||||||||||||
Operating Income (billions of yen) |
682.6 | 579.1 | 676.1 | 529.5 | 2,467.5 | 741.9 | 662.3 | 654.4 | 384.0 | 2,442.8 | 500.0 | |||||||||||||||||||||||||||||||||
(Operating Income Ratio) (%) |
(9.3 | ) | (7.9 | ) | (8.7 | ) | (6.8 | ) | (8.2 | ) | (9.7 | ) | (8.7 | ) | (8.7 | ) | (5.4 | ) | (8.2 | ) | (2.1 | ) | ||||||||||||||||||||||
Geographic Information |
||||||||||||||||||||||||||||||||||||||||||||
Japan |
395.9 | 354.2 | 494.2 | 447.2 | 1,691.6 | 436.8 | 391.3 | 403.1 | 336.6 | 1,567.9 | ||||||||||||||||||||||||||||||||||
North America |
63.5 | 47.4 | 18.1 | -14.5 | 114.5 | 118.9 | 118.0 | 93.2 | -59.6 | 270.6 | ||||||||||||||||||||||||||||||||||
Europe |
23.0 | 38.1 | 27.9 | 35.6 | 124.8 | 37.7 | 37.1 | 38.4 | 37.1 | 150.5 | ||||||||||||||||||||||||||||||||||
Asia |
146.3 | 137.1 | 116.7 | 57.2 | 457.4 | 110.9 | 110.6 | 95.2 | 54.0 | 370.9 | ||||||||||||||||||||||||||||||||||
Other |
43.2 | 22.7 | 19.1 | 5.9 | 91.1 | 22.8 | 26.7 | 24.4 | 16.7 | 90.7 | ||||||||||||||||||||||||||||||||||
Elimination |
10.4 | -20.5 | -0.1 | -1.9 | -12.1 | 14.5 | -21.5 | -0.1 | -0.8 | -8.0 | ||||||||||||||||||||||||||||||||||
Business Segment |
||||||||||||||||||||||||||||||||||||||||||||
Automotive |
602.5 | 462.2 | 581.3 | 392.7 | 2,038.8 | 621.4 | 492.9 | 585.9 | 352.0 | 2,052.3 | ||||||||||||||||||||||||||||||||||
Financial Services |
73.5 | 81.4 | 82.6 | 85.1 | 322.8 | 108.2 | 119.6 | 72.6 | -8.3 | 292.1 | ||||||||||||||||||||||||||||||||||
All Other |
11.4 | 29.3 | 13.9 | 50.7 | 105.5 | 13.7 | 27.8 | 19.5 | 35.5 | 96.6 | ||||||||||||||||||||||||||||||||||
Elimination |
-4.8 | 6.1 | -1.8 | 0.9 | 0.3 | -1.4 | 21.9 | -23.6 | 4.8 | 1.6 | ||||||||||||||||||||||||||||||||||
Share of profit of investments accounted for using the equity method (billions of yen) |
| | | | | | | | | | To be determined | *7 | ||||||||||||||||||||||||||||||||
Income before Income Taxes (billions of yen) |
813.8 | 734.9 | 176.9 | 559.6 | 2,285.4 | 841.7 | 741.7 | 932.2 | 38.8 | 2,554.6 | To be determined | *7 | ||||||||||||||||||||||||||||||||
(Income before Income Taxes Ratio) (%) |
(11.1 | ) | (10.1 | ) | (2.3 | ) | (7.2 | ) | (7.6 | ) | (11.0 | ) | (9.7 | ) | (12.4 | ) | (0.5 | ) | (8.5 | ) | ||||||||||||||||||||||||
Equity in Earnings of Affiliated Companies (billions of yen) |
116.5 | 106.0 | 32.2 | 105.2 | 360.0 | 109.5 | 96.3 | 97.4 | -32.2 | 271.1 | | |||||||||||||||||||||||||||||||||
Net Income (billions of yen) |
657.3 | 585.0 | 180.9 | 459.5 | 1,882.8 | 682.9 | 592.0 | 738.0 | 63.1 | 2,076.1 | (Note 2) | |
To be determined |
*3 *7 | ||||||||||||||||||||||||||||||
(Net Income Ratio) (%) |
(8.9 | ) | (8.0 | ) | (2.3 | ) | (5.9 | ) | (6.2 | ) | (8.9 | ) | (7.7 | ) | (9.8 | ) | (0.9 | ) | (6.9 | ) | ||||||||||||||||||||||||
Dividends |
||||||||||||||||||||||||||||||||||||||||||||
Common Shares |
||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends (billions of yen) |
| 286.9 | | 339.8 | 626.8 | | 278.9 | | 331.9 | 610.8 | (Note 3) | |||||||||||||||||||||||||||||||||
Cash Dividends per Share (yen) |
| 100 | | 120 | 220 | | 100 | | 120 | 220 | ||||||||||||||||||||||||||||||||||
Payout Ratio (%) |
| 23.4 | | 54.0 | 33.8 | | 22.2 | | 42.1 | 29.9 | ||||||||||||||||||||||||||||||||||
Model AA Class Shares |
||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends (billions of yen) |
| 4.9 | | 4.9 | 9.9 | | 6.2 | | 6.2 | 12.4 | (Note 3) | |||||||||||||||||||||||||||||||||
Cash Dividends per Share (yen) |
| 105.5 | | 105.5 | 211 | | 132 | | 132 | 264 | ||||||||||||||||||||||||||||||||||
Value of Shares Repurchased (billions of yen) [actual purchase] |
129.1 | 170.7 | 151.7 | 98.1 | 549.9 | 54.2 | 245.7 | 70.1 | 129.8 | 499.9 | (Note 4) | |||||||||||||||||||||||||||||||||
Value of Shares Repurchased (billions of yen) [shareholder return] |
| 249.9 | | 299.9 | 549.9 | | 199.9 | | | |
199.9 |
(Note 4) (Note 5) |
||||||||||||||||||||||||||||||||
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 | 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 | 47,100 |
Supplemental 2
Supplemental Material for Financial Results for FY2020 (Consolidated)
< U.S. GAAP >
FY2019 | FY2020 | FY2021 | ||||||||||||||||||||||||||||||||||||||||||
1Q (2018/4-6) |
2Q (2018/7-9) |
3Q (2018/10-12) |
4Q (2019/1-3) |
12 months (18/4-19/3) |
1Q (2019/4-6) |
2Q (2019/7-9) |
3Q (2019/10-12) |
4Q (2020/1-3) |
12 months (19/4-20/3) |
Forecast 12 months*1 <IFRS> (20/4-21/3) |
||||||||||||||||||||||||||||||||||
R&D Expenses (billions of yen) |
268.5 | 258.5 | 274.4 | 247.3 | 1,048.8 | 297.4 | 286.9 | 288.5 | 237.3 | 1,110.3 | 1,100.0 | *4 | ||||||||||||||||||||||||||||||||
Depreciation Expenses (billions of yen) |
217.7 | 255.3 | 248.1 | 263.6 | 984.8 | 198.0 | 190.9 | 210.4 | 213.3 | 812.8 | 830.0 | *5(Note 6) | ||||||||||||||||||||||||||||||||
Geographic Information |
||||||||||||||||||||||||||||||||||||||||||||
Japan |
108.5 | 148.1 | 142.6 | 148.9 | 548.2 | 88.9 | 92.2 | 95.8 | 99.4 | 376.4 | ||||||||||||||||||||||||||||||||||
North America |
49.8 | 50.6 | 51.2 | 57.4 | 209.1 | 53.8 | 46.8 | 56.6 | 62.9 | 220.3 | ||||||||||||||||||||||||||||||||||
Europe |
14.1 | 11.3 | 11.1 | 12.1 | 48.7 | 13.1 | 12.7 | 14.6 | 12.0 | 52.6 | ||||||||||||||||||||||||||||||||||
Asia |
36.5 | 36.0 | 34.2 | 34.9 | 141.9 | 33.9 | 30.5 | 32.5 | 33.5 | 130.5 | ||||||||||||||||||||||||||||||||||
Other |
8.6 | 9.1 | 8.8 | 10.1 | 36.7 | 8.2 | 8.4 | 10.8 | 5.3 | 32.9 | ||||||||||||||||||||||||||||||||||
Capital Expenditures (billions of yen) |
311.8 | 307.6 | 329.1 | 517.1 | 1,465.8 | 276.5 | 349.9 | 337.3 | 429.1 | 1,393.0 | 1,350.0 | (Note 6) | ||||||||||||||||||||||||||||||||
Geographic Information |
||||||||||||||||||||||||||||||||||||||||||||
Japan |
143.6 | 167.5 | 156.0 | 263.3 | 730.6 | 146.6 | 183.8 | 151.6 | 265.4 | 747.6 | ||||||||||||||||||||||||||||||||||
North America |
106.6 | 75.6 | 76.1 | 153.9 | 412.4 | 75.4 | 81.4 | 130.6 | 66.4 | 353.9 | ||||||||||||||||||||||||||||||||||
Europe |
15.1 | 30.9 | 43.8 | 44.0 | 133.8 | 19.4 | 18.7 | 24.3 | 42.9 | 105.4 | ||||||||||||||||||||||||||||||||||
Asia |
25.2 | 15.9 | 34.3 | 37.8 | 113.3 | 19.5 | 47.7 | 19.5 | 40.5 | 127.4 | ||||||||||||||||||||||||||||||||||
Other |
21.2 | 17.5 | 18.7 | 17.9 | 75.5 | 15.5 | 18.1 | 11.0 | 13.8 | 58.5 | ||||||||||||||||||||||||||||||||||
Total Liquid Assets (billions of yen) |
9,005.4 | 9,562.6 | 9,198.8 | 9,454.4 | 9,454.4 | 9,143.2 | 9,452.0 | 9,072.4 | 8,685.1 | 8,685.1 | (Note 7) | |||||||||||||||||||||||||||||||||
Total Assets (billions of yen) |
51,049.1 | 52,516.0 | 51,085.9 | 51,936.9 | 51,936.9 | 52,117.4 | 52,240.0 | 53,801.1 | 52,680.4 | 52,680.4 | ||||||||||||||||||||||||||||||||||
Toyota Motor Corporation Shareholders Equity (billions of yen) |
18,946.9 | 19,511.3 | 19,089.2 | 19,348.1 | 19,348.1 | 19,527.6 | 19,795.6 | 20,305.5 | 20,060.6 | 20,060.6 | ||||||||||||||||||||||||||||||||||
Return on Equity (%) |
13.9 | 12.1 | 3.7 | 9.5 | 9.8 | 14.0 | 12.0 | 14.6 | 1.2 | 10.4 | ||||||||||||||||||||||||||||||||||
Return on Asset (%) |
5.2 | 4.5 | 1.4 | 3.6 | 3.7 | 5.3 | 4.5 | 5.6 | 0.5 | 4.0 | ||||||||||||||||||||||||||||||||||
Number of Consolidated Subsidiaries (including Variable Interest Entities) |
608 | 528 | ||||||||||||||||||||||||||||||||||||||||||
No. of Affil. Accounted for Under the Equity Method |
63 | 72 |
Analysis of Consolidated Net Income for FY2020 (billions of yen, approximately) |
|
4Q (2020/1-3) |
|
|
12 months (19/4-20/3 |
)(Note 2) | ||
Effects of Marketing Activities |
-250.0 | -90.0 | ||||||
Effects of Changes in Exchange Rates |
-55.0 | -305.0 | ||||||
Cost Reduction Efforts |
60.0 | 170.0 | ||||||
From Engineering |
30.0 | 100.0 | ||||||
From Manufacturing and Logistics |
30.0 | 70.0 | ||||||
Increase or decrease in expenses and expense reduction efforts |
95.0 | 45.0 | ||||||
Other |
4.6 | 155.4 | ||||||
(Changes in Operating Income)*5*6 |
-145.4 | -24.6 | ||||||
Non-operating Income*6 |
-375.3 | 293.8 | ||||||
Equity in Earnings of Affiliated Companies*6 |
-137.4 | -88.9 | ||||||
Income Taxes, Net Income Attributable to Noncontrolling Interests*5*6 |
261.9 | 13.0 | ||||||
(Changes in Net Income)*5*6 |
-396.3 | 193.3 | (Note 2) |
*1 | The parent company intends to voluntarily adopt IFRS for its consolidated financial statements from the first quarter of the fiscal year ending March 31, 2021. |
Accordingly, Toyotas forecast of consolidated financial results for the next fiscal year ending March 31, 2021 is based on IFRS.
*2 | Sales Revenues under IFRS is stated as Net Revenues |
*3 | Net income attributable to owners of the parent under IFRS is set forth here under Net Income |
*4 | R&D Expenses are R&D activity related expenditures incurred during the reporting period and conform to R&D Expenses on Toyotas Consolidated Statement of Income in accordance with U.S. GAAP. |
In accordance with IFRS, however, a portion of R&D Expenses are recognized as an intangible asset and amortized over its estimated useful life.
As such, this amount do not conform to R&D Expenses on Toyotas Consolidated Statement of Income under IFRS.
*5 | Toyota changed the depreciation method of the parent company and Japanese subsidiaries to the straight-line method, effective as of April 1, 2019. |
The impact of this change for the fiscal year ended March 31, 2020 was a decrease in depreciation expense of 173.2 billion yen and an increase in net income attributable to Toyota Motor Corporation of 117.0 billion yen.
*6 | Net income attributable to Toyota Motor Corporation for the fiscal year ended March 31, 2020 and 2019 includes a loss of 38.1 billion yen and a loss of 293.7 billion yen, respectively, which is attributable to the effect of unrealized gains (losses) on equity securities (net of tax, etc.). |
*7 | With respect to its forecasts of consolidated financial results for the fiscal year ending March 31, 2021, Toyota is not disclosing forecasts of share of profit of investments accounted for using the equity method, income before income taxes and net income attributable to owners of the parent, as the effects of the global spread of COVID-19 present challenges in preparing reasonable estimates for such figures. Toyota will disclose such figures promptly after they can be reasonably estimated. |
Supplemental 3
Supplemental Material for Financial Results for FY2020 (Unconsolidated)
< Japan GAAP >
FY2019 | FY2020 | |||||||||||||||||||||||||||||||||||||||
1Q (2018/4-6) |
2Q (2018/7-9) |
3Q (2018/10-12) |
4Q (2019/1-3) |
12 months (18/4-19/3) |
1Q (2019/4-6) |
2Q (2019/7-9) |
3Q (2019/10-12) |
4Q (2020/1-3) |
12 months (19/4-20/3) |
|||||||||||||||||||||||||||||||
Toyota & Lexus brand |
||||||||||||||||||||||||||||||||||||||||
Domestic Vehicle Production (thousands of units) |
746 | 748 | 809 | 911 | 3,213 | 869 | 847 | 789 | 798 | 3,304 | ||||||||||||||||||||||||||||||
Overseas Vehicle Production (thousands of units) |
1,451 | 1,443 | 1,447 | 1,382 | 5,724 | 1,481 | 1,354 | 1,420 | 1,181 | 5,437 | ||||||||||||||||||||||||||||||
Domestic Vehicle Retail Sales (thousands of units) |
359 | 381 | 384 | 445 | 1,569 | 386 | 435 | 345 | 422 | 1,587 | ||||||||||||||||||||||||||||||
Exports Vehicle Sales (thousands of units) |
464 | 461 | 484 | 538 | 1,947 | 536 | 529 | 500 | 479 | 2,044 | ||||||||||||||||||||||||||||||
North America |
191 | 197 | 190 | 246 | 824 | 222 | 210 | 172 | 175 | 780 | ||||||||||||||||||||||||||||||
Europe |
65 | 56 | 61 | 80 | 262 | 78 | 69 | 67 | 66 | 280 | ||||||||||||||||||||||||||||||
Asia |
76 | 83 | 96 | 82 | 337 | 102 | 105 | 109 | 95 | 411 | ||||||||||||||||||||||||||||||
Central and South America |
16 | 11 | 8 | 12 | 47 | 13 | 13 | 13 | 12 | 51 | ||||||||||||||||||||||||||||||
Oceania |
46 | 43 | 45 | 38 | 172 | 43 | 45 | 45 | 46 | 178 | ||||||||||||||||||||||||||||||
Africa |
14 | 14 | 15 | 16 | 59 | 17 | 20 | 16 | 15 | 67 | ||||||||||||||||||||||||||||||
Middle East |
54 | 55 | 67 | 62 | 238 | 60 | 65 | 77 | 67 | 269 | ||||||||||||||||||||||||||||||
Other |
2 | 2 | 2 | 2 | 8 | 2 | 2 | 2 | 2 | 8 | ||||||||||||||||||||||||||||||
Net Revenues (billions of yen) |
2,980.3 | 3,026.3 | 3,294.7 | 3,333.0 | 12,634.4 | 3,282.6 | 3,214.6 | 3,175.6 | 3,056.7 | 12,729.7 | ||||||||||||||||||||||||||||||
Domestic |
923.9 | 949.9 | 1,083.3 | 1,131.2 | 4,088.5 | 1,049.6 | 1,046.7 | 1,012.4 | 1,042.5 | 4,151.4 | ||||||||||||||||||||||||||||||
Exports |
2,056.3 | 2,076.3 | 2,211.4 | 2,201.7 | 8,545.8 | 2,232.9 | 2,167.9 | 2,163.1 | 2,014.2 | 8,578.3 | ||||||||||||||||||||||||||||||
Operating Income (billions of yen) |
308.7 | 284.5 | 400.9 | 331.9 | 1,326.1 | 328.2 | 209.7 | 263.4 | 177.3 | 978.8 | ||||||||||||||||||||||||||||||
(Operating Income Ratio) (%) |
(10.4 | ) | (9.4 | ) | (12.2 | ) | (10.0 | ) | (10.5 | ) | (10.0 | ) | (6.5 | ) | (8.3 | ) | (5.8 | ) | (7.7 | ) | ||||||||||||||||||||
Ordinary Income (billions of yen) |
714.8 | 507.6 | 605.0 | 495.5 | 2,323.1 | 615.1 | 401.3 | 495.6 | 223.1 | 1,735.3 | ||||||||||||||||||||||||||||||
(Ordinary Income Ratio) (%) |
(24.0 | ) | (16.8 | ) | (18.4 | ) | (14.9 | ) | (18.4 | ) | (18.7 | ) | (12.5 | ) | (15.6 | ) | (7.3 | ) | (13.6 | ) | ||||||||||||||||||||
Net Income (billions of yen) |
591.5 | 397.7 | 504.8 | 402.6 | 1,896.8 | 514.0 | 333.3 | 407.1 | 169.4 | 1,424.0 | ||||||||||||||||||||||||||||||
(Net Income Ratio) (%) |
(19.8 | ) | (13.1 | ) | (15.3 | ) | (12.1 | ) | (15.0 | ) | (15.7 | ) | (10.4 | ) | (12.8 | ) | (5.5 | ) | (11.2 | ) | ||||||||||||||||||||
R&D Expenses (billions of yen) |
234.4 | 225.1 | 234.8 | 201.6 | 896.2 | 256.8 | 246.9 | 237.3 | 199.7 | 940.9 | ||||||||||||||||||||||||||||||
Depreciation Expenses (billions of yen) |
52.6 | 57.3 | 61.7 | 65.7 | 237.5 | 52.4 | 56.6 | 58.5 | 65.4 | 233.1 | ||||||||||||||||||||||||||||||
Capital Expenditures (billions of yen) |
73.6 | 61.8 | 62.5 | 104.0 | 302.1 | 50.4 | 59.9 | 57.1 | 106.5 | 274.1 |
Analysis of Unconsolidated Net Income for FY2020 (billions of yen, approximately) |
4Q (2020/1-3) |
12 months (19/4-20/3) |
||||||
Effects of Marketing Activities |
-170.0 | -220.0 | ||||||
Effects of Changes in Exchange Rates |
-40.0 | -175.0 | ||||||
Cost Reduction Efforts |
35.0 | 125.0 | ||||||
From Engineering |
25.0 | 95.0 | ||||||
From Manufacturing and Logistics |
10.0 | 30.0 | ||||||
Increase or decrease in expenses and expense reduction efforts |
20.0 | -75.0 | ||||||
Other |
0.5 | -2.3 | ||||||
(Changes in Operating Income) |
-154.5 | -347.3 | ||||||
Non-operating Income |
-117.8 | -240.4 | ||||||
Income Taxes, etc. |
39.1 | 114.9 | ||||||
(Changes in Net Income) |
-233.1 | -472.7 |
Cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect the parent company and its consolidated subsidiaries (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 Toyotas 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.
With regard to Toyotas decisions and assumptions for the forecast, please refer to 1. Financial Results and Position (3) Forecast of Consolidated Financial Results for FY2021 on page 5 of the materials accompanying this report.
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) Toyotas ability to market and distribute effectively; (v) Toyotas 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 Toyotas 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 Toyotas 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) Toyotas ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyotas brand image; (x) Toyotas reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyotas 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 Toyotas vehicle production and sales.
A discussion of these and other factors which may affect Toyotas actual results, performance, achievements or financial position is contained in Toyotas 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 Toyotas third-party suppliers and business partners. The duration of the global spread of COVID-19 is 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 Toyotas financial condition and results of operations.
(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) | Shows Net income attributable to Toyota Motor Corporation |
(Note 3) | 2Q= Interim Dividend, 4Q= Year-end Dividend, FY= Annual Dividend |
(Note 4) | 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 5) | Value of common shares repurchased (shareholder return on Net Income for the period) |
(Note 6) | Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease |
The amounts include finance lease assets until the fiscal year ended March 31, 2019, whereas it does not for the fiscal year ended March 31, 2020. |
(Note 7) | Cash and cash equivalents, time deposits, marketable debt securities and its investment in monetary trust funds, excluding in each case those relating to financial services |
Supplemental 4
(Reference Translation)
(For reference)
May 12, 2020
Toyota Motor Corporation
Holding of Ordinary General Shareholders Meeting
1. Date and time: |
10:00 a.m., Thursday, June 11, 2020 | |
2. Venue: |
Toyota Head Office, 1, Toyota-cho, Toyota City, Aichi Prefecture | |
3. Meeting Agenda: |
Reports:
Reports on business review, consolidated and unconsolidated financial statements for FY2020 (April 1, 2019 through March 31, 2020) and a report by the Accounting Auditor and the Audit & Supervisory Board on the audit results of the consolidated financial statements for FY2020.
Resolutions:
Proposed Resolution 1: |
Election of 9 Members of the Board of Directors | |
Proposed Resolution 2: |
Election of 1 Substitute Audit & Supervisory Board Member | |
Proposed Resolution 3: |
Partial Amendments to the Articles of Incorporation |
[Reference Translation]
May 12, 2020
To Whom It May Concern:
Company Name: TOYOTA MOTOR CORPORATION Name and Title of Representative: Akio Toyoda, President (Code Number: 7203 First Section of Tokyo Stock Exchange and Nagoya Stock Exchange) Name and Title of Contact Person: Kaname Shimizu, General Manager, Accounting Division (Telephone Number: 0565-28-2121) |
Notice Concerning Distribution of Dividends from Surplus
At a meeting held on May 12, 2020, the Board of Directors of Toyota Motor Corporation (TMC) resolved to distribute dividends from surplus, with record date dated March 31, 2020. In relation to the above, we hereby inform you of the following:
1. | Details of dividends |
(1) | Common shares |
Year-end dividend for FY 2020 |
Most recent dividend forecast |
Year-end dividend paid for FY 2019 | ||||
Record date |
March 31, 2020 | March 31, 2020 | March 31, 2019 | |||
Dividend per share |
120.00 yen | | 120.00 yen | |||
Total amount of dividends |
331,938 million yen | | 339,892 million yen | |||
Effective date |
May 28, 2020 | | May 24, 2019 | |||
Source of dividends |
Retained earnings | | Retained earnings |
[Reference] Details of dividends per common share through the fiscal year
Record date |
Dividends for FY 2020 (ended March 31, 2020) |
Dividends for FY 2019 (ended March 31, 2019) | ||
End of interim period |
100.00 yen | 100.00 yen | ||
End of fiscal period |
120.00 yen | 120.00 yen | ||
Total |
220.00 yen | 220.00 yen |
(2) | First Series Model AA Class Shares |
Year-end dividend for FY 2020 |
Most recent dividend forecast |
Year-end dividend paid for FY 2019 | ||||
Record date |
March 31, 2020 | March 31, 2020 | March 31, 2019 | |||
Dividend per share |
132.00 yen | | 105.50 yen | |||
Total amount of dividends |
6,217 million yen | | 4,969 million yen | |||
Effective date |
May 28, 2020 | | May 24, 2019 | |||
Source of dividends |
Retained earnings | | Retained earnings |
[Reference] Details of dividends per First Series Model AA Class Share through the fiscal year
Record date |
Dividends for FY 2020 (ended March 31, 2020) |
Dividends for FY 2019 (ended March 31, 2019) | ||
End of interim period |
132.00 yen | 105.50 yen | ||
End of fiscal period |
132.00 yen | 105.50 yen | ||
Total |
264.00 yen | 211.00 yen |
2. | Reason for the dividend amount |
TMC deems the benefit of its shareholders as one of its priority management policies, and it continues to work to improve its corporate structure to realize sustainable growth in order to enhance its corporate value.
TMC will strive for the stable and continuous payment of dividends considering a consolidated payout ratio of 30% to shareholders of common stock as an indication. In addition, TMC will pay a prescribed amount of dividends to shareholders of First Series Model AA Class Shares.
In order to survive tough competition, TMC will utilize its internal funds mainly for the early commercialization of technologies for next-generation environment and safety, giving priority to customer safety and security.
Considering these factors, with respect to the dividends for this consolidated fiscal year, TMC has determined to pay a year-end dividend of 120 yen per common share and as a result, the annual dividend will be 220 yen per common share when combined with the interim dividend of 100 yen per common share.
In addition, TMC has determined to pay a year-end dividend of 132.00 yen per First Series Model AA Class Share in accordance with a prescribed calculation method and as a result, the annual dividend will be 264 yen per share when combined with the interim dividend of 132.00 yen per share.
-End-