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 November, 2019

Commission File Number 001-14948

 

 

Toyota Motor Corporation

(Translation of Registrant’s 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):            

THE INFORMATION AND EXHIBITS SET FORTH IN THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF TOYOTA MOTOR CORPORATION’S REGISTRATION STATEMENT ON FORM F-4 (FILE NO. 333-232286) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

 

 


Material Contained in this Report:

 

I.

English translations of the original Japanese-language documents, as filed with the Tokyo Stock Exchange on November 7, 2019, with respect to the registrant’s results of operations for the second quarter of FY2020 ended September 30, 2019.

 

II.

English translation of the Notice Concerning Distribution of Interim Dividends from Surplus, as filed by the registrant with the Tokyo Stock Exchange on November 7, 2019.

 

III.

English translation of the Notice Concerning the Determination of Matters Relating to the Repurchase of Shares of Common Stock, as filed by the registrant with the Tokyo Stock Exchange on November 7, 2019.

 

IV.

English translation of a press release with respect to Notice Concerning the Disposition of Treasury Stock to a Subsidiary by Way of Third-Party Allotment, as filed by the registrant with the Tokyo Stock Exchange on November 7, 2019.


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: November 7, 2019

FY2020 Second Quarter Financial Summary
Table of Contents

FINANCIAL SUMMARY

(All financial information has been prepared in accordance with U.S. generally accepted accounting principles)

FY2020 Second Quarter

(April 1, 2019 through September 30, 2019)

English translation from the original Japanese-language document

TOYOTA MOTOR CORPORATION


Table of Contents

FY2020 Second Quarter Consolidated Financial Results

(All financial information has been prepared in accordance with U.S. generally accepted accounting principles)

English translation from the original Japanese-language document

November 7, 2019

 

Company name

   : Toyota Motor Corporation

Stock exchanges on which the shares are listed

  

: Tokyo and Nagoya Stock Exchanges in Japan

Code number

   : 7203

URL

Representative

  

: https://global.toyota/jp/

: Akio Toyoda, President

Contact person

  

: Kaname Shimizu, General Manager, Accounting Division

  Tel. (0565)28-2121

Filing date of quarterly securities report

   : November 13, 2019

Payment date of cash dividends

   : November 27, 2019

Supplemental materials prepared for quarterly financial results

   : yes

Earnings announcement for quarterly financial results

   : yes

(Amounts are rounded to the nearest million yen)

 

1.

Consolidated Results for FY2020 First Half (April 1, 2019 through September 30, 2019)

 

(1)

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

 

     (% of change from previous first half)  
     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 first half

     15,285,595        4.2        1,404,336        11.3        1,583,485            2.2        1,274,976            2.6  

FY2019 first half

     14,674,006        3.4        1,261,845        15.1        1,548,809            23.7        1,242,392            16.0  

 

(Note) Comprehensive income: FY2020 first half 1,129,900 million yen (-25.5 %), FY2019 first half 1,516,668 million yen (10.9 %)

 

     Net income attributable to
Toyota Motor Corporation
per common share  – Basic
     Net income attributable to
Toyota Motor Corporation
per common share – Diluted
 
     Yen      Yen  

FY2020 first half

     449.35        444.98  

FY2019 first half

     427.02        422.68  

 

(2)

Consolidated financial position

 

     Total assets      Mezzanine equity and
Shareholders’ equity
     Toyota Motor Corporation
shareholders’ equity
     Ratio of
Toyota Motor Corporation
shareholders’ equity
 
     Million yen      Million yen      Million yen      %  

FY2020 second quarter

     52,240,078        21,002,317        19,795,642        37.9  

FY2019

     51,936,949        20,565,210        19,348,152        37.3  

 

2.

Cash Dividends

 

     Annual cash dividends per common share  
     End of first
quarter
     End of second
quarter
     End of third
quarter
     Year-end      Total  
     Yen      Yen      Yen      Yen      Yen  

FY2019

            100.00               120.00        220.00  

FY2020

            100.00           

FY2020 (forecast)

                          

 

(Note)   Revisions to the forecast of cash dividends since the latest announcement: none
  Please refer to “(Reference) Cash Dividends on Class Shares” for information regarding cash dividends on class shares, which are unlisted and have different rights from common stock.

 

3.

Forecast of Consolidated Results for FY2020 (April 1, 2019 through March 31, 2020)

 

     (% of change from FY2019)  
     Net revenues      Operating income      Income before income taxes
and equity in earnings of
affiliated companies
     Net income attributable to
Toyota Motor Corporation
     Net income attributable to
Toyota Motor Corporation
per common share – Basic
 
     Million yen          %      Million yen          %      Million yen          %      Million yen          %      Yen  

Full-year

     29,500,000        -2.4        2,400,000        -2.7        2,630,000        15.1        2,150,000        14.2        760.80  

 

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


Table of Contents

Notes

 

(1)

Changes in significant subsidiaries during the current quarter

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

 

(2)

Simplified accounting procedures and specific accounting procedures: yes

Note: For more details, please see page 9 “Other Information”.

 

(3)

Changes in accounting policies

 

  (i)

Changes by a newly issued accounting pronouncement: yes

 

  (ii)

Changes other than (3)-(i) above: yes

Note: For more details, please see page 9 “Other Information”.

 

(4)

Number of shares issued and outstanding (common stock)

 

  (i)

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

FY2020 second quarter 3,262,997,492 shares, FY2019 3,262,997,492 shares

 

  (ii)

Number of treasury stock at the end of each period:

FY2020 second quarter 473,914,931 shares, FY2019 430,558,325 shares

 

  (iii)

Average number of shares issued and outstanding in each period:

FY2020 first half 2,818,172,637 shares, FY2019 first half 2,892,141,263 shares

This report is not reviewed.

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

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

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

This report contains summarized and condensed financial information prepared in accordance with U.S. generally accepted accounting principles.

(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           

FY2020 (forecast)

                          

 

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


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

TABLE OF CONTENTS

 

1.  Consolidated Financial Statements

     2  

(1) Consolidated Balance Sheets

     2  

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

     4  

(3) Consolidated Statements of Cash Flows

     8  

(4) Going Concern Assumption

     9  

(5) Significant Changes in Shareholders’ Equity

     9  

2.  Other Information

     9  

(1) Changes in significant subsidiaries during the current period

     9  

(2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements

     9  

(3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements

     9  

Supplemental Material for Financial Results for FY2020 Second Quarter

  

 

1


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

 

1.

Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

     (Yen in millions)  
     FY2019
(March 31, 2019)
    FY2020 second quarter
(September 30, 2019)
    Increase
(Decrease)
 

Assets

      

Current assets:

      

Cash and cash equivalents

     3,574,704       3,979,764       405,060  

Time deposits

     1,126,352       1,334,616       208,264  

Marketable securities

     1,127,160       876,440       (250,720

Trade accounts and notes receivable, less allowance for doubtful accounts

     2,372,734       2,228,524       (144,210

Finance receivables, net

     6,647,771       6,558,020       (89,751

Other receivables

     568,156       549,874       (18,282

Inventories

     2,656,396       2,576,968       (79,428

Prepaid expenses and other current assets

     805,964       872,710       66,746  
  

 

 

   

 

 

   

 

 

 

Total current assets

     18,879,237       18,976,916       97,679  
  

 

 

   

 

 

   

 

 

 

Noncurrent finance receivables, net

     10,281,118       10,396,209       115,091  

Investments and other assets:

      

Marketable securities and other securities investments

     7,479,926       7,220,663       (259,263

Affiliated companies

     3,313,723       3,392,862       79,139  

Employees receivables

     21,683       21,790       107  

Other

     1,275,768       1,636,237       360,469  
  

 

 

   

 

 

   

 

 

 

Total investments and other assets

     12,091,100       12,271,552       180,452  
  

 

 

   

 

 

   

 

 

 

Property, plant and equipment:

                                                                                 

Land

     1,386,308       1,362,252       (24,056

Buildings

     4,802,175       4,755,496       (46,679

Machinery and equipment

     11,857,425       11,791,699       (65,726

Vehicles and equipment on operating leases

     6,139,163       5,947,228       (191,935

Construction in progress

     651,713       646,680       (5,033
  

 

 

   

 

 

   

 

 

 

Total property, plant and equipment, at cost

     24,836,784       24,503,355       (333,429
  

 

 

   

 

 

   

 

 

 

Less – Accumulated depreciation

     (14,151,290     (13,907,954     243,336  
  

 

 

   

 

 

   

 

 

 

Total property, plant and equipment, net

     10,685,494       10,595,401       (90,093
  

 

 

   

 

 

   

 

 

 

Total assets

     51,936,949       52,240,078       303,129  
  

 

 

   

 

 

   

 

 

 

 

2


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

 

    (Yen in millions)  
    FY2019
(March 31, 2019)
    FY2019 second quarter
(September 30, 2019)
    Increase
(Decrease)
 

Liabilities

     

Current liabilities:

     

Short-term borrowings

    5,344,973       5,198,456       (146,517

Current portion of long-term debt

    4,254,260       4,453,335       199,075  

Accounts payable

    2,645,984       2,546,545       (99,439

Other payables

    1,102,802       937,139       (165,663

Accrued expenses

    3,222,446       3,064,629       (157,817

Income taxes payable

    320,998       277,766       (43,232

Other current liabilities

    1,335,475       1,454,390       118,915  
 

 

 

   

 

 

   

 

 

 

Total current liabilities

    18,226,938       17,932,260       (294,678
 

 

 

   

 

 

   

 

 

 

Long-term liabilities:

     

Long-term debt

    10,550,945       10,340,214       (210,731

Accrued pension and severance costs

    963,406       969,810       6,404  

Deferred income taxes

    1,014,851       1,092,125       77,274  

Other long-term liabilities

    615,599       903,352       287,753  
 

 

 

   

 

 

   

 

 

 

Total long-term liabilities

    13,144,801       13,305,501       160,700  
 

 

 

   

 

 

   

 

 

 

Total liabilities

    31,371,739       31,237,761       (133,978
 

 

 

   

 

 

   

 

 

 

Mezzanine equity

     

Model AA Class Shares, no par value,
authorized: 150,000,000 shares at March 31, 2019 and September 30, 2019
issued: 47,100,000 shares at March 31, 2019 and September 30, 2019

    498,073       501,744       3,671  
 

 

 

   

 

 

   

 

 

 

Shareholders’ equity

                                                                        

Toyota Motor Corporation shareholders’ equity:

     

Common stock, no par value,
authorized: 10,000,000,000 shares at March 31, 2019 and September 30, 2019
issued: 3,262,997,492 shares at March 31, 2019 and September 30, 2019

    397,050       397,050        

Additional paid-in capital

    487,162       491,142       3,980  

Retained earnings

    21,987,515       22,913,956       926,441  

Accumulated other comprehensive income (loss)

    (916,650     (1,099,428     (182,778

Treasury stock, at cost, 430,558,325 shares at March 31, 2019 and 473,914,931 shares at September 30, 2019

    (2,606,925     (2,907,078     (300,153
 

 

 

   

 

 

   

 

 

 

Total Toyota Motor Corporation shareholders’ equity

    19,348,152       19,795,642       447,490  
 

 

 

   

 

 

   

 

 

 

Noncontrolling interests

    718,985       704,931       (14,054
 

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

    20,067,137       20,500,573       433,436  
 

 

 

   

 

 

   

 

 

 

Commitments and contingencies

     
 

 

 

   

 

 

   

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity

    51,936,949       52,240,078       303,129  
 

 

 

   

 

 

   

 

 

 

 

Note: The total number of authorized shares for common stock and Model AA Class Shares is 10,000,000,000 shares.

 

3


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

 

First half for the six months ended September 30       

Consolidated Statements of Income

      
     (Yen in millions)  
     FY2019 first half
(Six months ended
September 30, 2018)
    FY2020 first half
(Six months ended
September 30, 2019)
    Increase
(Decrease)
 

Net revenues:

                                                                                 

Sales of products

     13,638,830       14,206,661       567,831  

Financing operations

     1,035,176       1,078,934       43,758  
  

 

 

   

 

 

   

 

 

 

Total net revenues

     14,674,006       15,285,595       611,589  
  

 

 

   

 

 

   

 

 

 

Costs and expenses:

      

Cost of products sold

     11,290,626       11,840,365       549,739  

Cost of financing operations

     693,531       654,126       (39,405

Selling, general and administrative

     1,428,004       1,386,768       (41,236
  

 

 

   

 

 

   

 

 

 

Total costs and expenses

     13,412,161       13,881,259       469,098  
  

 

 

   

 

 

   

 

 

 

Operating income

     1,261,845       1,404,336       142,491  
  

 

 

   

 

 

   

 

 

 

Other income (expense):

      

Interest and dividend income

     124,778       126,221       1,443  

Interest expense

     (11,603     (14,846     (3,243

Foreign exchange gain (loss), net

     64,784       (61,167     (125,951

Unrealized gains (losses) on equity securities

     147,849       145,427       (2,422

Other income (loss), net

     (38,844     (16,486     22,358  
  

 

 

   

 

 

   

 

 

 

Total other income (expense)

     286,964       179,149       (107,815
  

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

     1,548,809       1,583,485       34,676  
  

 

 

   

 

 

   

 

 

 

Provision for income taxes

     473,591       474,648       1,057  

Equity in earnings of affiliated companies

     222,587       205,952       (16,635
  

 

 

   

 

 

   

 

 

 

Net income

     1,297,805       1,314,789       16,984  
  

 

 

   

 

 

   

 

 

 

Less – Net income attributable to noncontrolling interests

     (55,413     (39,813     15,600  
  

 

 

   

 

 

   

 

 

 

Net income attributable to Toyota Motor Corporation

     1,242,392       1,274,976       32,584  
  

 

 

   

 

 

   

 

 

 

 

Note:  Net income attributable to common shareholders for the first half ended September 30, 2019 and 2018 is 1,266,334 million yen and 1,234,998 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 8,642 million yen and 7,394 million yen, respectively, from Net income attributable to Toyota Motor Corporation.

 

 

     (Yen)  

Net income attributable to Toyota Motor Corporation per common share

                                                        

Basic

     427.02             449.35       22.33  

Diluted

     422.68       444.98       22.30  

 

4


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

Consolidated Statements of Comprehensive Income

      
     (Yen in millions)  
     FY2019 first half
(Six months ended
September 30, 2018)
    FY2020 first half
(Six months ended
September 30, 2019)
    Increase
(Decrease)
 

Net income

     1,297,805       1,314,789       16,984  

Other comprehensive income (loss), net of tax

      

Foreign currency translation adjustments

     141,848       (251,656     (393,504

Unrealized gains (losses) on securities

     65,855       65,567       (288

Pension liability adjustments

     11,160       1,200       (9,960
  

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

     218,863       (184,889     (403,752
  

 

 

   

 

 

   

 

 

 

Comprehensive income

     1,516,668       1,129,900       (386,768
  

 

 

   

 

 

   

 

 

 

Less – Comprehensive income attributable to noncontrolling interests

     (57,836     (37,702     20,134  
  

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Toyota Motor Corporation

     1,458,832       1,092,198       (366,634
  

 

 

   

 

 

   

 

 

 

 

5


Table of Contents

TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

Second quarter for the three months ended September 30

 

   

Consolidated Statements of Income

     
    (Yen in millions)  
    FY2019 second quarter
(Three months ended
September 30, 2018)
    FY2020 second quarter
(Three months ended
September 30, 2019)
    Increase
(Decrease)
 

Net revenues:

     

Sales of products

    6,784,867       7,102,868       318,001  

Financing operations

    526,406       536,636       10,230  
 

 

 

   

 

 

   

 

 

 

Total net revenues

    7,311,273       7,639,504       328,231  
 

 

 

   

 

 

   

 

 

 

Costs and expenses:

                          

Cost of products sold

    5,650,630       5,970,713       320,083  

Cost of financing operations

    345,376       313,688       (31,688

Selling, general and administrative

    736,109       692,718       (43,391
 

 

 

   

 

 

   

 

 

 

Total costs and expenses

    6,732,115       6,977,119       245,004  
 

 

 

   

 

 

   

 

 

 

Operating income

    579,158       662,385       83,227  
 

 

 

   

 

 

   

 

 

 

Other income (expense):

     

Interest and dividend income

    36,890       51,830       14,940  

Interest expense

    (8,164     (10,495     (2,331

Foreign exchange gain (loss), net

    25,568       (3,159     (28,727

Unrealized gains (losses) on equity securities

    112,816       54,656       (58,160

Other income (loss), net

    (11,323     (13,482     (2,159
 

 

 

   

 

 

   

 

 

 

Total other income (expense)

    155,787       79,350       (76,437
 

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

    734,945       741,735       6,790  
 

 

 

   

 

 

   

 

 

 

Provision for income taxes

    227,428       225,019       (2,409

Equity in earnings of affiliated companies

    106,052       96,399       (9,653
 

 

 

   

 

 

   

 

 

 

Net income

    613,569       613,115       (454
 

 

 

   

 

 

   

 

 

 

Less – Net income attributable to noncontrolling interests

    (28,483     (21,113     7,370  
 

 

 

   

 

 

   

 

 

 

Net income attributable to Toyota Motor Corporation

    585,086       592,002       6,916  
 

 

 

   

 

 

   

 

 

 

 

Note:  Net income attributable to common shareholders for the second quarter ended September 30, 2019 and 2018 is 587,681 million yen and 581,389 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 4,321 million yen and 3,697 million yen, respectively, from Net income attributable to Toyota Motor Corporation.

 

    (Yen)  

Net income attributable to Toyota Motor Corporation per common share

     

Basic

    202.20       209.49       7.29  

Diluted

    200.21       207.55       7.34  

 

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TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

Consolidated Statements of Comprehensive Income

 

    (Yen in millions)  
    FY2019 second quarter
(Three months ended
September 30, 2018)
    FY2020 second quarter
(Three months ended
September 30, 2019)
    Increase
(Decrease)
 

Net income

    613,569       613,115       (454

Other comprehensive income (loss), net of tax

                                                                     

Foreign currency translation adjustments

    91,139       (108,650     (199,789

Unrealized gains (losses) on securities

    65,771       25,114       (40,657

Pension liability adjustments

    3,715       3,762       47  
 

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss)

    160,625       (79,774     (240,399
 

 

 

   

 

 

   

 

 

 

Comprehensive income

    774,194       533,341       (240,853
 

 

 

   

 

 

   

 

 

 

Less – Comprehensive income attributable to noncontrolling interests

    (35,000     (18,278     16,722  
 

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Toyota Motor Corporation

    739,194       515,063       (224,131
 

 

 

   

 

 

   

 

 

 

 

7


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TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

(3) Consolidated Statements of Cash Flows

 

     (Yen in millions)  
     FY2019 first half
(Six months ended
September 30, 2018)
    FY2020 first half
(Six months ended
September 30, 2019)
 

Cash flows from operating activities:

    

Net income

     1,297,805       1,314,789  

Adjustments to reconcile net income to net cash provided by operating activities

    

Depreciation

     865,307       784,057  

Provision (reversal) for doubtful accounts and credit losses

     28,999       34,712  

Pension and severance costs, less payments

     10,161       12,730  

Losses on disposal of fixed assets

     19,093       24,704  

Unrealized losses (gains) on securities

     (143,474     (154,755

Deferred income taxes

     65,051       117,807  

Equity in earnings of affiliated companies

     (222,587     (205,952

Changes in operating assets and liabilities, and other

     (94,167     139,473  
  

 

 

   

 

 

 

Net cash provided by operating activities

     1,826,188       2,067,565  
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Additions to finance receivables

     (7,878,662     (8,434,132

Collection of and proceeds from sales of finance receivables

     7,358,000       7,752,495  

Additions to fixed assets excluding equipment leased to others

     (717,435     (725,081

Additions to equipment leased to others

     (1,204,802     (1,191,812

Proceeds from sales of fixed assets excluding equipment leased to others

     26,237       17,747  

Proceeds from sales of equipment leased to others

     693,712       727,935  

Purchases of marketable securities and security investments

     (1,089,727     (649,927

Proceeds from sales of and maturity of marketable securities and security investments

     1,289,729       1,241,524  

Changes in investments and other assets, and other

     (331,318     (230,220
  

 

 

   

 

 

 

Net cash used in investing activities

     (1,854,266     (1,491,471
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from issuance of long-term debt

     3,037,778       2,670,506  

Payments of long-term debt

     (2,201,865     (2,162,617

Increase in short-term borrowings

     13,205       60,976  

Dividends paid to Toyota Motor Corporation class shareholders

     (3,721     (4,969

Dividends paid to Toyota Motor Corporation common shareholders

     (349,191     (339,893

Dividends paid to noncontrolling interests

     (42,240     (38,631

Reissuance (repurchase) of treasury stock

     (299,595     (300,154
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     154,371       (114,782
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents

     36,933       (68,017
  

 

 

   

 

 

 

Net increase in cash and cash equivalents and restricted cash and cash equivalents

     163,226       393,295  
  

 

 

   

 

 

 

Cash and cash equivalents and restricted cash and cash equivalents at beginning of period

     3,219,639       3,706,515  
  

 

 

   

 

 

 

Cash and cash equivalents and restricted cash and cash equivalents at end of period

     3,382,865       4,099,810  
  

 

 

   

 

 

 

 

Note:

 

Cash and cash equivalents and restricted cash and cash equivalents for the first half ended September 30, 2019 include restricted cash and cash equivalents of 131,811 million yen and 120,046 million yen at the beginning of the period and the end of the period, respectively. Restricted cash and cash equivalents were included in Prepaid expenses and other current assets in the consolidated balance sheets.

 

8


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TOYOTA MOTOR CORPORATION    FY2020 Second Quarter Financial Summary

 

(4) Going Concern Assumption

  None

(5) Significant Changes in Shareholders’ Equity

 None

 

2.

Other Information

(1) Changes in significant subsidiaries during the current period

 (Changes in specified subsidiaries that caused a change in the scope of consolidation)

  None

(2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements

 Provision for income taxes

The provision for income taxes is computed by multiplying income before income taxes and equity in earnings of affiliated companies for the first half by estimated annual effective tax rates. These estimated annual effective tax rates reflect anticipated investment tax credits, foreign tax credits and other items, including changes in valuation allowances, that are expected to affect estimated annual effective tax rates.

(3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements

 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. The parent company and its consolidated subsidiaries (“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 ¥334,555 million as right-of-use assets as of September 30, 2019, which is included in “Other” of “Investments and other assets” of Toyota’s consolidated balance sheet. Lease liabilities are included in “Other current liabilities” and “Other long-term liabilities,” and were ¥60,551 million and ¥273,799 million, 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 Toyota’s consolidated financial statements.

 

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TOYOTA MOTOR CORPORATION    FY2020 Second Quarter 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 first half ended September 30, 2019 decreased by ¥80,555 million. Net income attributable to Toyota Motor Corporation and basic net income attributable to Toyota Motor Corporation per common share for the first half ended September 30, 2019 increased by ¥54,246 million and ¥19.25, respectively.

 

10


Table of Contents

Supplemental Material for Financial Results for FY2020 Second Quarter (Consolidated)

< U.S. GAAP >

 

 

    FY2019     FY2020     FY2020  
  1Q
(2018/4-6)
    2Q
(2018/7-9)
    First Half
6 months
(2018/4-9)
    3Q
(2018/10-12)
    4Q
(2019/1-3)
    12 months
(’18/4-’19/3)
    1Q
(2019/4-6)
    2Q
(2019/7-9)
    First Half
6 months
(2019/4-9)
    Forecast
12 months
(’19/4-’20/3)
 

Vehicle Production (thousands of units)

            2,199               2,184               4,383               2,262               2,340               8,985               2,311               2,236               4,547    

(Japan)
– including Daihatsu & Hino

    1,003       1,004       2,007       1,099       1,203       4,309       1,134       1,122       2,256    

[Daihatsu & Hino]

    [257     [257     [514     [290     [292     [1,096     [265     [275     [540  

(Overseas)
– including Daihatsu & Hino

    1,196       1,180       2,376       1,163       1,138       4,676       1,178       1,114       2,291    

[Daihatsu & Hino]

    [133     [162     [295     [161     [141     [598     [124     [155     [280  

North America

    517       447       964       435       442       1,841       499       456       955    

Europe

    168       159       326       173       180       679       174       143       317    

Asia

    402       449       851       429       402       1,682       386       413       799    

Central and South America

    82       93       176       96       82       353       86       69       156    

Africa

    28       31       59       30       32       121       33       32       65    

Vehicle Sales (thousands of units)

    2,236       2,183       4,419       2,282       2,276       8,977       2,303       2,335       4,639       8,950  

(Japan)
– including Daihatsu & Hino

    510       521       1,031       565       631       2,226       555       585       1,140       2,240  

[Daihatsu & Hino]

    [155     [161     [316     [169     [203     [688     [158     [183     [341     [670

(Overseas)
– including Daihatsu & Hino

    1,726       1,662       3,388       1,717       1,645       6,751       1,748       1,750       3,499       6,710  

[Daihatsu & Hino]

    [75     [87     [162     [89     [86     [337     [65     [76     [141     [300

North America

    746       665       1,411       680       654       2,745       744       702       1,446       2,690  

Europe

    253       240       493       232       269       994       274       250       524       1,030  

Asia

    394       417       811       464       410       1,684       398       431       829       1,630  

Central and South America

    117       120       237       114       97       448       104       109       212       420  

Oceania

    72       74       146       66       60       272       66       64       130       260  

Africa

    48       50       98       54       48       200       54       63       117       220  

Middle East

    93       95       188       105       104       398       106       128       234       460  

Other

    2       2       4       2       2       8       4       4       8    

Total Retail Unit Sales (thousands of units)
[Toyota, Daihatsu and Hino]

    2,616       2,677       5,293       2,707       2,602       10,603       2,709       2,745       5,454       10,700  

Housing Sales (units)

    1,892       4,808       6,700       2,656       5,777       15,133       2,164       4,821       6,985    

 

Supplemental 1


Table of Contents

Supplemental Material for Financial Results for FY2020 Second Quarter (Consolidated)

< U.S. GAAP >

 

 

    FY2019     FY2020     FY2020  
    1Q
(2018/4-6)
    2Q
(2018/7-9)
    First Half
6 months
(2018/4-9)
    3Q
(2018/10-12)
    4Q
(2019/1-3)
    12 months
(’18/4-’19/3)
    1Q
(2019/4-6)
    2Q
(2019/7-9)
    First Half
6 months
(2019/4-9)
    Forecast
12 months
(’19/4-’20/3)
 

Foreign Exchange Rates

                   

Yen to US Dollar Rate

    109       111       110       113       110       111       110       107       109       as premise: 107  

Yen to Euro Rate

    130       130       130       129       125       128       123       119       121       as premise: 118  

Market Share (Japan)

                   

Toyota (excluding Mini-Vehicles) (%)

    46.2       45.2       45.7       47.3       45.1       45.9       49.0       47.6       48.2       approximately: 48.0  

Toyota, Daihatsu and Hino
(including Mini-Vehicles) (%)

    43.8       42.7       43.2       44.9       43.1       43.6       45.2       45.2       45.2    

Number of Employees

    373,272       371,796       371,796       371,495       370,870       370,870       376,445       374,014       374,014 (Note 1)   

Net Revenues (billions of yen)

    7,362.7       7,311.2       14,674.0       7,801.5       7,750.1       30,225.6       7,646.0       7,639.5       15,285.5       29,500.0  

Geographic Information

                   

Japan

    3,865.4       4,012.3       7,877.8       4,259.8       4,487.7       16,625.3       4,178.5       4,250.8       8,429.4    

North America

    2,791.1       2,636.4       5,427.5       2,753.7       2,635.9       10,817.2       2,833.5       2,681.7       5,515.3    

Europe

    785.8       795.8       1,581.7       784.0       873.0       3,238.8       862.1       818.7       1,680.8    

Asia

    1,316.2       1,318.7       2,634.9       1,496.5       1,381.4       5,513.0       1,314.3       1,367.3       2,681.6    

Other

    598.4       608.3       1,206.8       592.8       533.7       2,333.4       550.0       548.2       1,098.2    

Elimination

    -1,994.4       -2,060.4       -4,054.9       -2,085.5       -2,161.7       -8,302.2       -2,092.5       -2,027.4       -4,119.9    

Business Segment

                   

Automotive

    6,633.4       6,514.8       13,148.3       7,018.4       6,912.2       27,079.0       6,880.9       6,808.1       13,689.0    

Financial Services

    516.8       534.4       1,051.3       552.4       549.8       2,153.5       547.7       541.4       1,089.1    

All Other

    358.0       412.3       770.4       391.2       514.6       1,676.3       370.6       454.9       825.5    

Elimination

    -145.6       -150.3       -296.0       -160.6       -226.6       -683.3       -153.1       -165.0       -318.2    

Operating Income
(billions of yen)

    682.6       579.1       1,261.8       676.1       529.5       2,467.5       741.9       662.3       1,404.3       2,400.0  

(Operating Income Ratio) (%)

    (9.3     (7.9     (8.6     (8.7     (6.8     (8.2     (9.7     (8.7     (9.2     (8.1

Geographic Information

                   

Japan

    395.9       354.2       750.2       494.2       447.2       1,691.6       436.8       391.3       828.1    

North America

    63.5       47.4       110.9       18.1       -14.5       114.5       118.9       118.0       237.0    

Europe

    23.0       38.1       61.2       27.9       35.6       124.8       37.7       37.1       74.9    

Asia

    146.3       137.1       283.4       116.7       57.2       457.4       110.9       110.6       221.6    

Other

    43.2       22.7       65.9       19.1       5.9       91.1       22.8       26.7       49.5    

Elimination

    10.4       -20.5       -10.0       -0.1       -1.9       -12.1       14.5       -21.5       -7.0    

Business Segment

                   

Automotive

    602.5       462.2       1,064.7       581.3       392.7       2,038.8       621.4       492.9       1,114.3    

Financial Services

    73.5       81.4       154.9       82.6       85.1       322.8       108.2       119.6       227.8    

All Other

    11.4       29.3       40.8       13.9       50.7       105.5       13.7       27.8       41.5    

Elimination

    -4.8       6.1       1.2       -1.8       0.9       0.3       -1.4       21.9       20.5    

Income before Income Taxes
(billions of yen)

    813.8       734.9       1,548.8       176.9       559.6       2,285.4       841.7       741.7       1,583.4       2,630.0  

(Income before Income Taxes Ratio) (%)

    (11.1     (10.1     (10.6     (2.3     (7.2     (7.6     (11.0     (9.7     (10.4     (8.9

Equity in Earnings of Affiliated Companies (billions of yen)

    116.5       106.0       222.5       32.2       105.2       360.0       109.5       96.3       205.9       370.0  

Net Income (billions of yen)

    657.3       585.0       1,242.3       180.9       459.5       1,882.8       682.9       592.0       1,274.9       2,150.0 (Note 2) 

(Net Income Ratio) (%)

    (8.9     (8.0     (8.5     (2.3     (5.9     (6.2     (8.9     (7.7     (8.3     (7.3

Dividends

                   

Common Shares

                   

Cash Dividends (billions of yen)

    —         286.9       286.9       —         339.8       626.8       —         278.9       278.9 (Note 3)   

Cash Dividends per Share (yen)

    —         100       100       —         120       220       —         100       100    

Payout Ratio (%)

    —         23.4       23.4       —         54.0       33.8       —         22.2       22.2    

Model AA Class Shares

                   

Cash Dividends (billions of yen)

    —         4.9       4.9       —         4.9       9.9       —         6.2       6.2 (Note 3)   

Cash Dividends per Share (yen)

    —         105.5       105.5       —         105.5       211       —         132       132    

Value of Shares Repurchased (billions of yen)[actual purchase]

    129.1       170.8       299.9       151.7       98.1       549.9       54.2       245.8       300.0 (Note 4)   

Value of Shares Repurchased (billions of yen)[shareholder return]

    —         249.9       249.9       —         300.0       550.0       —        

200.0

(maximum

 

   

200.0

(maximum

(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    

Number of Outstanding Model AA Class Shares (thousands)

    47,100       47,100       47,100       47,100       47,100       47,100       47,100       47,100       47,100    

 

Supplemental 2


Table of Contents

Supplemental Material for Financial Results for FY2020 Second Quarter (Consolidated)

< U.S. GAAP >

 

 

    FY2019     FY2020     FY2020  
  1Q
(2018/4-6)
    2Q
(2018/7-9)
    First Half
6 months
(2018/4-9)
    3Q
(2018/10-12)
    4Q
(2019/1-3)
    12 months
(’18/4-’19/3)
    1Q
(2019/4-6)
    2Q
(2019/7-9)
    First Half
6 months
(2019/4-9)
    Forecast
12 months
(’19/4-’20/3)
 

R&D Expenses (billions of yen)

    268.5       258.5       527.1       274.4       247.3       1,048.8       297.4       286.9       584.4       1,100.0  

Depreciation Expenses (billions of yen)

    217.7       255.3       473.1       248.1       263.6       984.8       198.0       190.9       389.0       860.0 *1 (Note 6) 

Geographic Information

                   

Japan

    108.5       148.1       256.6       142.6       148.9       548.2       88.9       92.2       181.1       420.0  

North America

    49.8       50.6       100.4       51.2       57.4       209.1       53.8       46.8       100.7       210.0  

Europe

    14.1       11.3       25.4       11.1       12.1       48.7       13.1       12.7       25.9       60.0  

Asia

    36.5       36.0       72.6       34.2       34.9       141.9       33.9       30.5       64.4       130.0  

Other

    8.6       9.1       17.7       8.8       10.1       36.7       8.2       8.4       16.7       40.0  

Capital Expenditures (billions of yen)

    311.8       307.6       619.5       329.1       517.1       1,465.8       276.5       349.9       626.5       1,450.0 (Note 6) 

Geographic Information

                   

Japan

    143.6       167.5       311.2       156.0       263.3       730.6       146.6       183.8       330.5       780.0  

North America

    106.6       75.6       182.2       76.1       153.9       412.4       75.4       81.4       156.8       320.0  

Europe

    15.1       30.9       46.0       43.8       44.0       133.8       19.4       18.7       38.1       120.0  

Asia

    25.2       15.9       41.2       34.3       37.8       113.3       19.5       47.7       67.2       140.0  

Other

    21.2       17.5       38.7       18.7       17.9       75.5       15.5       18.1       33.6       90.0  

Total Liquid Assets (billions of yen)

    9,005.4       9,562.6       9,562.6       9,198.8       9,454.4       9,454.4       9,143.2       9,452.0       9,452.0 (Note 7)   

Total Assets (billions of yen)

    51,049.1       52,516.0       52,516.0       51,085.9       51,936.9       51,936.9       52,117.4       52,240.0       52,240.0    

Toyota Motor Corporation Shareholders’ Equity (billions of yen)

    18,946.9       19,511.3       19,511.3       19,089.2       19,348.1       19,348.1       19,527.6       19,795.6       19,795.6    

Return on Equity (%)

    13.9       12.1       12.9       3.7       9.5       9.8       14.0       12.0       12.9    

Return on Asset (%)

    5.2       4.5       4.8       1.4       3.6       3.7       5.3       4.5       4.9    

Number of Consolidated Subsidiaries (including Variable Interest Entities)

              608          

No. of Affil. Accounted for Under the Equity Method

              63          

 

Analysis of Consolidated Net Income for FY2020

(billions of yen, approximately)

    
2Q
(2019/7-9)
 
 
    

First Half

6 months 

(2019/4-9)

 

(Note 2) 

 

Marketing Efforts

     105.0        185.0  

Effects of Changes in Exchange Rates

     -110.0        -90.0  

Cost Reduction Efforts

     45.0        60.0  

From Engineering

     30.0        35.0  

From Manufacturing and Logistics

     15.0        25.0  

Increase or decrease in expenses and expense reduction efforts

     -45.0        -120.0  

Other

     88.2        107.4  

(Changes in Operating Income)*1*2

     83.2        142.4  

Non-operating Income*2

     -76.4        -107.8  

Equity in Earnings of Affiliated Companies*2

     -9.6        -16.6  

Income Taxes, Net Income Attributable to Noncontrolling Interests*1*2

     9.7        14.5  

(Changes in Net Income)*1*2

     6.9        32.5 (Note 2) 

 

*1

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 second quarter ended September 30, 2019 was a decrease in depreciation expense of 80.6 billion yen and an increase in net income attributable to Toyota Motor Corporation of 54.2 billion yen. The impact of this change for the fiscal year ending March 31, 2020 (Forecast) is expected to be a decrease in depreciation expense of approximately 165.0 billion yen and an increase in net income attributable to Toyota Motor Corporation of approximately 110.0 billion yen.

*2

Net income attributable to Toyota Motor Corporation for the second quarter ended September 30, 2019 and 2018 includes a profit of 113.7 billion yen and 85.3 billion yen, respectively, which is attributable to the effect of unrealized gains (losses) on equity securities (net of tax, etc.).

 

Supplemental 3


Table of Contents

Supplemental Material for Financial Results for FY2020 Second Quarter (Unconsolidated)

< Japan GAAP >

 

 

 

    FY2019     FY2020     FY2020  
    1Q
(2018/4-6)
    2Q
(2018/7-9)
    First Half
6 months
(2018/4-9)
    3Q
(2018/10-12)
    4Q
(2019/1-3)
    12 months
(’18/4-’19/3)
    1Q
(2019/4-6)
    2Q
(2019/7-9)
    First Half
6 months
(2019/4-9)
    Forecast
12 months
(’19/4-’20/3)
 

Toyota & Lexus brand

                   

Domestic Vehicle Production
(thousands of units)

    746       748       1,493       809       911       3,213       869       847       1,716       3,330  

Overseas Vehicle Production
(thousands of units)

    1,451       1,443       2,895       1,447       1,382       5,724       1,481       1,354       2,835       5,670  

Domestic Vehicle Retail Sales
(thousands of units)

    359       381       740       384       445       1,569       386       435       821       1,580  

Exports Vehicle Sales
(thousands of units)

    464       461       925       484       538       1,947       536       529       1,065       2,010  

North America

    191       197       388       190       246       824       222       210       433       760  

Europe

    65       56       121       61       80       262       78       69       147       280  

Asia

    76       83       159       96       82       337       102       105       207       410  

Central and South America

    16       11       27       8       12       47       13       13       26       50  

Oceania

    46       43       89       45       38       172       43       45       87       180  

Africa

    14       14       28       15       16       59       17       20       36       70  

Middle East

    54       55       109       67       62       238       60       65       125       260  

Other

    2       2       4       2       2       8       2       2       5    

Net Revenues (billions of yen)

    2,980.3       3,026.3       6,006.6       3,294.7       3,333.0       12,634.4       3,282.6       3,214.6       6,497.3       12,500.0  

Domestic

    923.9       949.9       1,873.9       1,083.3       1,131.2       4,088.5       1,049.6       1,046.7       2,096.4    

Exports

    2,056.3       2,076.3       4,132.7       2,211.4       2,201.7       8,545.8       2,232.9       2,167.9       4,400.8    

Operating Income (billions of yen)

    308.7       284.5       593.3       400.9       331.9       1,326.1       328.2       209.7       537.9       820.0  

(Operating Income Ratio) (%)

    (10.4     (9.4     (9.9     (12.2     (10.0     (10.5     (10.0     (6.5     (8.3     (6.6

Ordinary Income (billions of yen)

    714.8       507.6       1,222.5       605.0       495.5       2,323.1       615.1       401.3       1,016.4       1,580.0  

(Ordinary Income Ratio) (%)

    (24.0     (16.8     (20.4     (18.4     (14.9     (18.4     (18.7     (12.5     (15.6     (12.6

Net Income (billions of yen)

    591.5       397.7       989.3       504.8       402.6       1,896.8       514.0       333.3       847.3       1,320.0  

(Net Income Ratio) (%)

    (19.8     (13.1     (16.5     (15.3     (12.1     (15.0     (15.7     (10.4     (13.0     (10.6

R&D Expenses (billions of yen)

    234.4       225.1       459.6       234.8       201.6       896.2       256.8       246.9       503.8       940.0  

Depreciation Expenses (billions of yen)

    52.6       57.3       109.9       61.7       65.7       237.5       52.4       56.6       109.1       240.0  

Capital Expenditures (billions of yen)

    73.6       61.8       135.5       62.5       104.0       302.1       50.4       59.9       110.4       300.0  

 

Analysis of Unconsolidated Net Income for FY2020

(billions of yen, approximately)

 

2Q
(2019/7-9)

     First Half
6 months
(2019/4-9)
 

Marketing Efforts

    -5.0        30.0  

Effects of Changes in Exchange Rates

    -55.0        -15.0  

Cost Reduction Efforts

    40.0        55.0  

From Engineering

    35.0        45.0  

From Manufacturing and Logistics

    5.0        10.0  

Increase or decrease in expenses and expense reduction efforts

    -55.0        -125.0  

Other

    0.2        -0.3  

(Changes in Operating Income)

    -74.8        -55.3  

Non-operating Income

    -31.5        -150.7  

Income Taxes, etc.

    41.9        64.1  

(Changes in Net Income)

    -64.4        -141.9  

Cautionary Statement with Respect to Forward-Looking Statements

This report contains forward-looking statements that reflect Toyota’s plans and expectations.

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

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

 

(Note 1)

Shows the number of employees as of the end of each period (excluding loan employees from Toyota and its consolidated subsidiaries (“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)

(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 ending 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

Notice Concerning Distribution of Interim Dividends from Surplus

[Reference Translation]

November 7, 2019

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 Interim Dividends from Surplus

At a meeting held on November 7, 2019, the Board of Directors of Toyota Motor Corporation (“TMC”) resolved to distribute dividends from surplus, with record date dated September 30, 2019. In relation to the above, we hereby inform you of the following:

 

1.

Details of dividends

 

(1)

Common shares

 

    

Interim dividend for
FY 2020

  

Most recent
dividend forecast

  

Interim dividend paid for
FY 2019

Record date

   September 30, 2019    September 30, 2019    September 30, 2018

Dividend per share

   100.00 yen    —      100.00 yen

Total amount of dividends

   278,908 million yen    —      286,926 million yen

Effective date

   November 27, 2019    —      November 27, 2018

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
Total    —      220.00 yen

 

(2)

First Series Model AA Class Shares

 

    

Interim dividend for
FY 2020

  

Most recent
dividend forecast

  

Interim dividend paid for
FY 2019

Record date

   September 30, 2019    September 30, 2019    September 30, 2018

Dividend per share

   132.00 yen    —      105.50 yen

Total amount of dividends

   6,217 million yen    —      4,969 million yen

Effective date

   November 27, 2019    —      November 27, 2018

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    —      105.50 yen
Total    —      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 an interim dividend of 100 yen per common share.

In addition, TMC has determined to pay an interim dividend of 132 yen per First Series Model AA Class Share in accordance with a prescribed calculation method.

-End-

Notice Concerning the Determination of Matters Relating to the Repurchase

[Reference Translation]

November 7, 2019

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 the Determination of Matters Relating to the Repurchase of Shares of Common Stock

(Repurchase of Shares under Articles of Incorporation pursuant to Article 165, Paragraph 2 of the Companies Act of Japan)

We hereby inform you that Toyota Motor Corporation (“TMC”) resolved at a meeting of the board of directors held on November 7, 2019 to repurchase shares of its common stock pursuant to Article 156 of the Companies Act of Japan (the “Companies Act”) as applied pursuant to Article 165, Paragraph 3 of the Companies Act.

 

1.

Reason for repurchasing shares

To promote capital efficiency, TMC will flexibly repurchase its common stock while comprehensively considering factors such as its cash reserves and the price level of its common stock

 

2.

Details of matters relating to repurchase

 

(1) Class of shares to be repurchased

   Common shares of TMC

(2) Total number of shares to be repurchased

   34 million shares (maximum)
   (Represents 1.19% of the total number of issued shares (excluding treasury stock))
  

*  The total number of issued shares includes class shares other than common shares. The same shall apply hereinafter.

(3) Total purchase price for repurchase of shares

   200 billion JPY (maximum)

(4) Period of repurchase

   From November 11, 2019 to March 31, 2020

(References) Number of treasury stock as of September 30, 2019

 

•  Total number of issued shares (excluding treasury stock):

     2,836,182,461 shares  

•  Number of treasury stock:

     473,915,031 shares  
Notice Concerning the Disposition of Treasury Stock

November 7, 2019

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 the Disposition of Treasury Stock to a Subsidiary by Way of Third-Party Allotment

(Acquisition of Parent Company Shares by a Subsidiary

Under the Provision of Article 800 of the Companies Act)

Toyota Motor Corporation (“Toyota”) announces as follows that it has decided today to dispose of its treasury stock (the “Disposition of Treasury Stock”) by way of third-party allotment to Toyota Housing Corporation (“Toyota Housing”), Toyota’s consolidated subsidiary. As announced in “Notice Regarding Misawa Homes Co., Ltd. Becoming a Wholly Owned Subsidiary of Toyota Motor Corporation’s Subsidiary Toyota Housing Corporation through a Share Exchange” dated May 9, 2019, Toyota, Toyota Housing and Misawa Homes Co., Ltd. (“Misawa Homes”) will conduct a share exchange (the “Share Exchange”) in which Toyota Housing becomes the wholly owning parent company resulting from the share exchange and Misawa Homes becomes the wholly owned subsidiary resulting from the share exchange and the consideration in the Share Exchange shall be shares of Toyota’s common stock. The Disposition of Treasury Stock aims to allow Toyota Housing, the wholly owning parent company resulting from the share exchange, to acquire the necessary consideration for the Share Exchange.

 

1.

Outline of disposition

 

(1)   Date of disposition

  

November 29, 2019

(2)   Number of shares to be disposed

  

3,269,500 shares of Toyota’s common stock

(3)   Disposition price

  

7,396 yen per share

(4)   Amount of proceeds

  

24,181,222,000 yen

(5)   Method of offering for subscription or disposition (Expected subscriber)

  

All of the shares will be allotted to Toyota Housing by way of third-party allotment.

(6)   Number of treasury stock after the disposition

  

The number of treasury stock held by Toyota after the Disposition of Treasury Stock: 470,645,531 shares (Note)

(Note) The above number is calculated by deducting the number of shares to be disposed (3,269,500 shares) from the number of treasury stock (473,915,031 shares) as of September 30, 2019. Please note that the number of shares of treasury stock may change as Toyota has decided to repurchase shares of its common stock during the period of November 11, 2019 to March 31, 2020 as announced in “Notice Concerning the Determination of Matters Relating to the Repurchase of Shares of Common Stock” dated November 7, 2019. In addition, the number of shares less than one unit purchased or to be purchased from October 1, 2019 are not included.

(7)   Other

  

The items above are conditioned on the securities registration statement to be filed pursuant to the Financial Instruments and Exchange Act becoming effective.

 

1


2.

Purpose and reason for disposition

The purpose of the Disposition of Treasury Stock is to allow the wholly owning parent company resulting from the share exchange to acquire the necessary consideration for the Share Exchange. This transaction, through which Toyota Housing is to acquire shares of Toyota’s common stock, will be conducted pursuant to Article 800 of the Companies Act, concerning the acquisition of a parent company’s shares by a subsidiary.

 

3.

Amount of proceeds, use of proceeds and expected timing thereof

 

(1)

Amount of proceeds

 

     (unit: yen)  

(1)   Total amount to be paid in

     24,181,222,000  

(2)   Estimated amount of expenses relating to the issuance

     1,000,000  

(3)   Estimated net proceeds

     24,180,222,000  

 

(Note)

 

1. Estimated amount of expenses relating to the issuance does not include consumption tax, etc.

 

2. Estimated amount of expenses relating to the issuance is expected to consist mainly of costs for preparing a securities registration statement and other documents.

 

(2)

Use of proceeds

The purpose of the Disposition of Treasury Stock is to allow the wholly owning parent company resulting from the share exchange to acquire the necessary consideration for the Share Exchange, and not for financing purposes. The above described amount of 24,180,222,000 yen in estimated net proceeds is planned to be used to cover a part of the cash reserve that will decrease with the payment for the shares of common stock issued and disposed by way of third-party allotment which is planned to be conducted by Toyota Housing towards Toyota as the allottee.

 

4.

Reasonableness of use of proceeds

As previously described in “2. Purpose and reason for disposition,” the Disposition of Treasury Stock aims to allow the wholly owning parent company resulting from the share exchange to acquire the necessary consideration for the Share Exchange and it is not for financing purposes.

 

5.

Reasonableness of terms of disposition, etc.

 

(1)

Basis of calculation of the amount to be paid in and specific details of the amount

The reason Toyota has selected the average closing price of shares of Toyota’s common stock for the most recent month is that Toyota decided that using a leveled value, namely the average share price over a specified period, rather than using a share price at a certain point of time, enables it to eliminate the effects of temporary share price fluctuations and other special factors and thus has a high level of objectivity as the basis of calculation and is reasonable. In addition, the reason Toyota has chosen the most recent month for the calculation period is that Toyota decided that using a specified period nearest to the most recent market price is reasonable compared to the most recent three-month or most six-month period. Considering that the purpose of the Disposition of Treasury Stock is to allow the wholly owning parent company resulting from the share exchange to acquire the necessary consideration for the Share Exchange, Toyota decided not to make any discounts from the simple average of the closing price of shares of Toyota’s common stock on the Tokyo Stock Exchange (the “TSE”) for the most recent month through the business day immediately preceding the resolution date of the Disposition of Treasury Stock.

The disposition price represents a discount of 3.3% (rounding to one decimal place, hereinafter the same as in this paragraph) to 7,649 yen, the closing price of Toyota’s common stock on the TSE as of November 6, 2019, the business day immediately prior to the date of resolution by the Board of Directors on the Disposition of Treasury Stock, and is in compliance with the “Guidelines Concerning Treatment of Capital Increase by Allotment to a Third Party” issued by the Japan Securities Dealers Association (the “JSDA”), which requires that the amount to be paid in shall be greater than or equal to the amount calculated by multiplying 0.9 by the price immediately prior to the date of the resolution by the Board of Directors on the issuance of shares. As a result, Toyota determined that the price is not particularly favorable to the subscriber.

The disposition price, namely 7,396 yen, represents a premium of 3.0% to 7,179 yen, the simple average closing price for the three-month period through the business day immediately preceding the date of resolution by the Board of Directors on the Disposition of Treasury Stock, and a premium of 6.3% to 6,960 yen, the simple average closing price for the six-month period through the business day immediately preceding such resolution date.

In addition, all five Audit & Supervisory Board Members (including the two outside members of the Audit & Supervisory Board) who attended the meeting of the Board of Directors at which the Disposition of Treasury Stock was resolved, have expressed that the grounds for the calculation of the disposition price is reasonable, is in compliance with the “Guidelines Concerning Treatment of Capital Increase by Allotment to a Third Party” issued by the JSDA and does not constitute a favorable issuance, and is therefore lawful.

 

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(2)

Basis of decision that the number of shares to be disposed of and the extent of share dilution is reasonable

The number of shares subject to the Disposition of Treasury Stock is 3,269,500 shares (32,695 voting rights), which is equivalent to 0.10% of the total number of issued Toyota’s shares (3,310,097,492 shares) as of November 6, 2019 (0.12% of the 28,272,309 total voting rights as of September 30, 2019), which will case a certain degree of dilution. However, Toyota believes that the Share Exchange will result in Misawa Homes’ sustainable growth and development and the long-term expansion of its corporate value as well as improvement of the corporate value of the Toyota group as a whole, and that the number of shares to be disposed of and the extent of share dilution are reasonable.

 

6.

Reason for selection of the subscriber, etc.

 

(1)

Outline of the subscriber

 

(1)   Name

  

Toyota Housing Corporation

(2)   Address

  

23-22 Izumi 1-chome, Higashi-ku, Nagoya City, Aichi, Japan

(3)   Name and title of representative

  

Yuji Goto, President

(4)   Description of business

  

Design, manufacture and sale, etc. of construction components and housing-related equipment; planning, design, supervision, construction work and subcontracting for land development and town development, etc.; sale and lease, etc. of real estate

(5)   Stated capital

  

12,902 million yen

(6)   Date of establishment

  

April 1, 2003

(7)   Number of shares issued and outstanding

  

384,089 shares of common stock

(8)   Fiscal year-end

  

March 31

(9)   Number of employees (as of September 30, 2019)

  

807 (non-consolidated basis)

(10)  Main business partners

  

Toyota Home Aichi Co., Ltd.; Toyota Home Tokyo Co., Ltd.; and Toyota Home Nagoya Co., Ltd.

(11)  Main bank

  

MUFG Bank, Ltd.

(12)  Major shareholder and shareholding ratio

  

Toyota

 

99.96% (excluding treasury stock owned by Toyota Homes)

(13)  Relationship between the parties

  

Capital

 

Toyota owns 99.96% of the subscriber’s total voting rights.

   Personnel (as of September 30, 2019)  

Toyota has dispatched five Directors and two Audit & Supervisory Board Members to the subscriber. There are also 208 employees seconded from Toyota to the subscriber.

  

Transactions

 

Toyota lends funds to the subscriber.

  

Related party status

 

Toyota is the parent company of the subscriber and qualifies as a related party.

(14)  Operating results and financial condition for the last three years

 

Fiscal year

   Fiscal year ended
March 31, 2017
     Fiscal year ended
March 31, 2018
     Fiscal year ended
March 31, 2019
 

Consolidated net assets

     111,507        118,742        126,293  

Consolidated total assets

     391,413        409,353        452,132  

Consolidated net assets per share (in yen)

     —          —          —    

Consolidated revenues

     177,554        552,907        564,145  

Consolidated operating income

     4,898        10,493        10,587  

Consolidated ordinary income

     6,106        10,079        9,832  

Net income attributable to shareholders of parent

     1,077        4,707        4,002  

Consolidated net income per share (in yen)

     3,084.82        12,257.20        10,421.76  

Dividends per share (in yen)

     3,057        1,783        2,533  

(unit: millions of yen, unless otherwise noted)

 

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(Note 1)

  

The outline of the subscriber is based on information as of November 7, 2019, unless otherwise noted.

(Note 2)

  

Toyota Housing, the subscriber, is a subsidiary of Toyota, which is a TSE listed company that owns 99.96% of the subscriber’s total voting rights. In addition, as described in the Corporate Governance Report (dated June 21, 2019) which has been submitted to the TSE, based upon the “Guiding Principles at Toyota” and the “Toyota Code of Conduct,” it is Toyota’s basic policy to have no relationship with antisocial forces. Furthermore, Toyota has made it well known throughout Toyota, by means such as clearly stipulating it in the “Toyota Code of Conduct,” that it will take resolute action as an organization against any undue claims and actions by antisocial forces or groups. By expanding its “Guiding Principles at Toyota” and “Toyota Code of Conduct” to subsidiaries and extensively spreading its management principles through personnel exchanges, Toyota instructs its subsidiaries to appropriately incorporate the same into their management principles and code of conduct, etc. In addition, Toyota promotes acts directed to prevent damage caused by antisocial forces by holding lectures in-house and at its group companies. Through these factors, Toyota has concluded that Toyota Housing and its officers have no connection with anti-social forces and has submitted to the TSE a written confirmation to that effect.

 

(2)

Reason for selecting the subscriber

As announced in the press release, “Notice Regarding Misawa Homes Co., Ltd. Becoming a Wholly Owned Subsidiary of Toyota Motor Corporation’s Subsidiary Toyota Housing Corporation through a Share Exchange” dated May 9, 2019, due to the major changes in the business environment of the housing business that Toyota Housing and Misawa Homes (the “Toyota Group Subject Businesses”) are facing recently, the Share Exchange aims to establish a new joint venture company relating to the town development business, integrating the housing businesses by placing under the joint venture company the Toyota Group Subject Businesses as well as Panasonic Homes Co., Ltd., Matsumura-Gumi Corporation and Panasonic Construction Engineering Co., Ltd (excluding certain businesses (construction work subcontracting from construction equipment distributors, etc.)), each consolidated subsidiaries of Panasonic Corporation (the “Panasonic Group Subject Businesses”), and Misawa Homes becoming a wholly owned subsidiary of Toyota Housing as part of the integration, in order to realize the provision of services leveraging the respective strengths and characteristics of the Panasonic Group Subject Businesses and Toyota Group Subject Businesses.

In order to achieve the purpose of the Share Exchange and also taking into consideration that (i) if the Share Exchange allots common stock of Toyota Housing, which is not a listed company, as consideration in the Share Exchange, the minority shareholders of Misawa Homes will acquire shares with low liquidity, and (ii) by allotting shares of Toyota’s common stock as consideration in the Share Exchange to the minority shareholders of Misawa Homes rather than cash, it would provide them with the benefit of sharing the synergies due to the Share Exchange, the Share Exchange will be performed as a so-called “triangular share exchange” and the Share Exchange will allot shares of Toyota’s common stock as consideration in the Share Exchange rather than Toyota Housing’s shares. Thus, Toyota selected Toyota Housing as the subscriber of the Disposition of the Treasury Stock.

 

(3)

Subscriber’s shareholding policy

Of the shares of Toyota’s common stock allotted to the subscriber, the subscriber plans to use the number of shares that should be allotted as consideration in the Share Exchange as consideration in the Share Exchange.

 

(4)

Details regarding existence of assets necessary for the payment by the subscriber

Toyota has been informed by Toyota Housing, the allottee, that the amount to be paid for the shares of common stock to be issued and disposed of by way of third-party allotment that is planned to be conducted by Toyota Housing towards Toyota as the allottee will be used for the payment of this third-party allotment. Thus, Toyota has concluded that there are no problems regarding the payment for this third-party allotment.

 

4


7.

Principal shareholders and shareholding ratio after the disposition

 

Before the disposition (as of September 30, 2019)

    

After the disposition

 

Japan Trustee Services Bank, Ltd.

     11.38%      Japan Trustee Services Bank, Ltd.      11.38%  

Toyota Industries Corporation

     7.20%      Toyota Industries Corporation      7.20%  

The Master Trust Bank of Japan, Ltd.

     5.73%      The Master Trust Bank of Japan, Ltd.      5.73%  

Nippon Life Insurance Company

     3.36%      Nippon Life Insurance Company      3.36%  

JPMorgan Chase Bank, N.A.

(Standing proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

     3.20%     

JPMorgan Chase Bank, N.A.

(Standing proxy: Settlement & Clearing Services Division, Mizuho Bank, Ltd.)

     3.20%  

DENSO CORPORATION

     2.72%      DENSO CORPORATION      2.72%  

State Street Bank and Trust Company

(Standing proxy: Settlement & Clearing Services Division,
Mizuho Bank, Ltd.)

     2.47%     

State Street Bank and Trust Company

(Standing proxy: Settlement & Clearing Services Division, Mizuho Bank, Ltd.)

     2.47%  

Trust & Custody Services Bank, Ltd.

     1.73%     

Trust & Custody Services Bank, Ltd.

     1.73%  

Mitsui Sumitomo Insurance Company, Limited

     1.72%      Mitsui Sumitomo Insurance Company, Limited      1.72%  

Tokio Marine & Nichido Fire Insurance Co., Ltd.

     1.54%     

Tokio Marine & Nichido Fire Insurance Co., Ltd.

     1.54%  

 

    

 

 

 

(Note)

The principal shareholders are based on the list of shareholders as of September 30, 2019, and the shareholding ratio represents the ratio to the total number of issued shares.

 

8.

Future prospect

We expect that the impact of this third-party allotment on Toyota’s consolidated results for the fiscal year ending March 2020 will be minor.

 

9.

Matters related to the procedures under the corporate code of conduct

Because (1) the dilution ratio is less than 25% and (2) there is no change to a controlling shareholder (even if all of the stock acquisition rights and put options are exercised, no change to a controlling shareholder is expected), there is no need to obtain an opinion from an independent third party, or to follow the procedures for confirming the intent of shareholders, pursuant to Article 432 of the Securities Listing Regulations established by the TSE.

 

10.

Results of operations and status of equity finance for the last three years

 

(1)

Results of operations for the last three years (consolidated)

 

     (unit: millions of yen, unless otherwise noted)  
     Fiscal year ended
March 2017
     Fiscal year ended
March 2018
     Fiscal year ended
March 2019
 

Net revenues

   27,597,193      29,379,510      30,225,681  

Income before income taxes and equity in earnings of affiliated companies

   2,193,825      2,620,429      2,285,465  

Net income attributable to Toyota

   1,831,109      2,493,983      1,882,873  

Basic net income attributable to Toyota per share of common stock (in yen)

   605.47      842.00      650.55  

Dividends per share (in yen)

   Shares of
common stock:
     210      Shares of
common stock:
     220      Shares of
common stock:
     220  
   First Series Model
AA Class Shares:
     105      First Series Model
AA Class Shares:
     158      First Series Model
AA Class Shares:
     211  

Shareholders’ equity per share (in yen)

   5,887.88      6,438.65      6,830.92  

 

5


(Note 1)

“Ordinary income” is omitted because its corresponding item does not exist in the U.S. accounting standards, according to which the consolidated financial results of Toyota are prepared.

(Note 2)

“Shareholders’ equity per share” is stated because an item corresponding to “consolidated net assets per share” does not exist in the U.S. accounting standards, according to which the consolidated financial results of Toyota are prepared.

(Note 3)

“Dividends per share” refers to dividends pertaining to shares of common stock and dividends pertaining to First Series Model AA Class Shares. For First Series Model AA Class Shares, Toyota has paid the amount of dividends stipulated in the offering terms for the First Series Model AA Class Shares.

 

(2)

Number of issued shares and number of dilutive shares at present (as of September 30, 2019)

 

     Number of shares (shares)     

Ratio to the issued shares (%)

Number of issued shares

   Shares of common stock:

Model AA Class Shares:

Total:

    

3,262,997,492

47,100,000

3,310,097,492

 

 

 

   100.0

Number of dilutive shares based on the conversion price (exercise price) at present

        —        —   

Number of dilutive shares based on the minimum conversion price (exercise price)

        —        —   

Number of dilutive shares based on the maximum conversion price (exercise price)

        —        —   

 

(3)

Recent share price

① Status over the last three years

 

          (unit: yen)
    

Fiscal year ended

March 2017

  

Fiscal year ended

March 2018

  

Fiscal year ended

March 2019

Opening price

   5,930    6,087    6,833

High price

   7,215    7,806    7,686

Low price

   4,917    5,670    6,045

Closing price

   6,042    6,825    6,487

 

(Note)   The share prices are based on the price on the first section of the TSE.

② Status over the last six months

 

                         (unit: yen)
    

June

  

July

  

August

  

September

  

October

  

November

(Note)

Opening price

   6,309    6,765    7,018    6,967    7,245    7,460

High price

   6,858    7,244    7,120    7,494    7,554    7,680

Low price

   6,274    6,727    6,620    6,933    6,951    7,458

Closing price

   6,688    7,024    6,960    7,216    7,542    7,649

 

(Note)   Share prices for November 2019 are those until November 6, 2019.

 

6


③ Share price as of the business day immediately before the date of resolution of the Disposition of Treasury Stock

 

     (unit: yen)          
    

November 6, 2019

Opening price

   7,665

High price

   7,680

Low price

   7,613

Closing price

   7,649

 

(4)

Status of equity finance over the last three years

① Disposition of treasury stock by way of third-party allotment

 

Date of disposition

   October 2, 2017

Amount of proceeds

   49,999,305,700 yen (estimated net proceeds)

Disposition price

   6,029 yen per share
Number of issued shares at the time of the disposition    Shares of common stock:    3,262,997,492 shares   
   Model AA Class Shares:    47,100,000 shares
   Total:    3,310,097,492 shares

Number of disposed shares

   8,293,300 shares of common stock   

Number of issued shares after the disposition

   Shares of common stock:    3,262,997,492 shares   
   Model AA Class Shares:    47,100,000 shares
   Total:    3,310,097,492 shares

Subscriber

   Mazda Motor Corporation   
Initial use of proceeds at the time of the disposition   

The amount of proceeds was applied towards the capital expenditures relating to the establishment of a joint venture company to produce finished cars in the U.S.

Expected timing of expenditure at the time of the disposition   

Around fiscal year ended March 2018 through fiscal year ending March 2021

Current application status

  

A portion of the proceeds have been applied as initially planned. The remaining amount is scheduled to be applied by the above expected timing of expenditure for the above use of proceeds.

 

11.

Summary of disposition

 

(1)   Class and number of shares

   3,269,500 shares of common stock

(2)   Paid in price

   7,396 yen per share

(3)   Total amount to be paid in

   24,181,222,000 yen

(4)   Method of disposition or allotment

   Disposition of treasury stock by way of third-party allotment

(5)   Subscriber

   Toyota Housing

(6)   Payment date

   November 29, 2019

(7)   The items above are conditioned on the securities registration statement to be filed pursuant to the Financial Instruments and Exchange Act becoming effective.

End

 

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