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Annual Report 2009
The Right Way Forward
Year ended March 31, 2009

Table of contents

  • Page 1
    Annual Repor t 2 0 0 9 The Right Way For ward Year ended March 31, 2009

  • Page 2
    ... / Financial Services Operations / Other Business Operations / Motorsports Activities Management & Corporate Information Corporate Philosophy / Corporate Governance / Risk Factors / R&D and Intellectual Property / R&D Organization / Production Sites / Overseas Manufacturing Companies / Toyota...

  • Page 3
    ... our bottom line in fiscal 2009, ended March 31, 2009, resulting in an operating loss for only the second time in the Company's history. I sincerely regret the concern this has caused stakeholders-our shareholders and investors, customers, business partners, and members of the local communities in...

  • Page 4
    ... that are an integral part of Toyota's corporate heritage. More specifically, we are reviewing every aspect of our business from the customer's point of view-including technological development, manufacturing, sales, and service-so that we can develop new products, reduce costs and continue to offer...

  • Page 5
    ... Investor Information Chairman's Message President's Message Message from the Executive Vice President Toyota Management Team In order to fully realize product-oriented management, we are also placing greater emphasis on market needs. Based on our Customer First philosophy, we are developing...

  • Page 6
    ..., and net loss of ¥550.0 billion on a consolidated basis. This forecast assumes average exchange rates through the fiscal year of ¥95 per US$1 and ¥125 per * Responsibilities include accounting-related operational areas (see Toyota Management Team on page 7) 1. 4 TOYOTA MOTOR CORPORATION

  • Page 7
    ... increase production and sales utilizing these government policies. Financial Strategy Financial Strategy The three key components of Toyota's financial strategy are growth, efficiency, and stability. We believe that the balanced pursuit of these three priorities over the medium-to-long term will...

  • Page 8
    ... and development even under such conditions as rises in prices of raw materials and drastic changes in foreign exchange rates. And keeping the high credit ratings enables us to enjoy low-cost and stable funding even during the current credit crunch. In view of anticipated medium-to-long term growth...

  • Page 9
    ... Production Engineering Group, responsible for TPS Supervising / Manufacturing Group, responsible for TPS Thorough promotion Shinichi Sasaki Corporate Planning / Business Development / IT & ITS / Information Systems / Purchasing / Europe Operations / Customer Service / Quality Iwao Nihashi Quality...

  • Page 10
    ... Toyota Motor Corporation Fiscal years ended March 31 Consolidated Performance (U.S. GAAP) Yen in millions 2007 2008 2009 U.S. dollars* in millions 2009 % change 2008vs2009 For the Year: Net Revenues ...Operating Income ...Net Income ...ROE ...At Year-End: Total Assets ...Shareholders' Equity...

  • Page 11
    ... Business Overview Management & Corporate Information Financial Section Investor Information Consolidated Vehicle Production and Sales Thousands of units 2007 2008 2009 % change 2008vs2009 Vehicle Production by Region: Japan ...Overseas Total ...North America ...Europe ...Asia ...Central...

  • Page 12
    ... half of last year, the global automobile industry has faced a difficult operating environment. Although further major changes are also anticipated, Toyota has overcome many challenges in its long history of making automobiles, and will continue to do so in the future. 10 TOYOTA MOTOR CORPORATION

  • Page 13
    ... The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Local Roots, for Local Economic Growth In 1938, just one year after the Company's founding, Toyota opened its first mass production facility in Koromo, Japan. It was a clear...

  • Page 14
    ... on communication, cooperation, and consideration, I will aggressively work to increase sales of attractive and appealing commercial vehicles and family cars." Yukitoshi Funo, Executive Vice President (Emerging Markets Operations, including China, Asia, and Central and South America) " In addition...

  • Page 15
    ... Financial Section Investor Information Focusing on Products Product-oriented management enables Toyota to offer cars that meet the needs of customers in each region, at a price those customers can truly be satisfied with. Toyota is also bolstering its human resources and training programs...

  • Page 16
    ... Toyota core technologies. In addition, we are developing new concept cars that anticipate customer needs, and are restructuring our lineup to provide the vehicles that customers truly want. North America: Promoting Self-Sufficiency in Development and Production The North American market is central...

  • Page 17
    ...The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Europe: A Strong Presence Defined by a Distinct Identity Europe has many major car manufacturers, each with its own history and roots in national markets. For Toyota, the right way...

  • Page 18
    ... By valuing the philosophy of making better cars and contributing to society that has been central to Toyota for 70 years, we will strive to understand market needs from the customer's point of view, so that we can continue to provide products and services that respond to those needs. By valuing the...

  • Page 19
    ... Forward Business Overview Management & Corporate Information Financial Section Investor Information Business Overview 18 20 22 23 24 The Year in Review Automotive Operations Financial Services Operations Other Business Operations Motorsports Activities Business Overview Annual Report 2009...

  • Page 20
    ... all-time high of $147.27/barrel on the New York Mercantile Exchange • G8 Hokkaido Toyako Summit in Japan Aug. Sept. • Toyota Announces TME Technical Centre Expansion Toyota Motor Europe NV/SA (TME), which manages Toyota's European manufacturing and engineering operations, announced plans to...

  • Page 21
    ...other events as well as enjoy communications with other users. These functions provide a direct link between customers and Toyota. As of the end of July 2009, a cumulative total of 750,000 people had visited this web site. • Toyota to launch ultra-compact iQ in Japan Nov. Dec. • Toyota Peugeot...

  • Page 22
    ...1.06 million units. Toyota's market share in the European market (25 countries) was 5.2%. Lexus sales totaled about 40 thousand units. Consolidated production in Europe decreased 32.2% to 482 thousand units. Net revenues were down ¥980.3 billion to ¥3.0 trillion and operating income was down ¥284...

  • Page 23
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information The Year in Review Automotive Operations Financial Services Operations Other Business Operations Motorsports Activities Asia In fiscal 2009,...

  • Page 24
    ... 31, 2009) TFS also provides credit cards, home loans, bonds, investment trusts and other investment products for individuals, insurance policies, and other financial products and services to meet its goal to provide customers with a full lineup of financial support, especially in Japan. Overseas...

  • Page 25
    ... Business Overview Management & Corporate Information Financial Section Investor Information Other Business Operations The Year in Review Automotive Operations Financial Services Operations Other Business Operations Motorsports Activities Other Business Operations Toyota uses technologies...

  • Page 26
    ... the opportunity to participate in actual races, including F1, GP2, and F3 racing. In 2009, the program has placed 10 promising young candidates worldwide, including Kazuki Nakajima, now in his second year as a full-time driver for the AT&T Williams Team. Toyota views motorsports activities...

  • Page 27
    ... Investor Information Management & Corporate Information 26 28 32 34 36 37 38 40 Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Management & Corporate Information Annual Report 2009 Overseas Manufacturing Companies Toyota...

  • Page 28
    ... of society through the manufacturing and provision of innovative and quality products and services that lead the times. The foundations of these endeavors are the Guiding Principles at Toyota and the CSR* Policy: Contribution towards Sustainable Development. * CSR = Corporate Social Responsibility...

  • Page 29
    ... Business Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota Milestones Customers • Based...

  • Page 30
    ... site and highlighting problems by immediately flagging and sharing them. In other words, because Toyota's approach is to build in quality through manufacturing processes, enhancing the quality of everyday operations strengthens governance. Toyota's management team and employees conduct operations...

  • Page 31
    ... Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota Milestones 20-F under the U.S. Securities...

  • Page 32
    Management & Corporate Information Corporate Social Responsibility To maintain stable, long-term growth in international society, companies have to earn the respect and trust of society and individuals. Rather than simply contributing to economic development through operational activities, growing ...

  • Page 33
    ... Forward Business Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota Milestones (6) System to...

  • Page 34
    ...the level and times planned by management. Toyota's inability to develop and offer products that meet customer demand in a timely manner could result in a lower market share and reduced sales volumes and margins, and may adversely affect Toyota's financial condition and results of operations. Toyota...

  • Page 35
    ... Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota Milestones The worldwide financial services...

  • Page 36
    ... high-quality products for customers worldwide. The intellectual property that R&D generates is a vital management resource that Toyota utilizes and protects to maximize its corporate value. R&D Expenses (¥ Billion) 1,000 R&D Guiding Principles 904.0 800 • Providing clean and safe products and...

  • Page 37
    ... Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota...

  • Page 38
    ...4 U.S.A. Company name 5 Activities Location Establishment Toyota Motor Engineering & Manufacturing North America, Inc.* Vehicle development & evaluation, certification, collection of technical information Ann Arbor, York Township, Plymouth (Michigan), Torrance, Gardena (California), Wittmann...

  • Page 39
    ... Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Overseas Manufacturing Companies Toyota Milestones Production Sites Production Sites...

  • Page 40
    Management & Corporate Information Overseas Manufacturing Companies As of March 31, 2009 23 18 19 20 17 27-31,33 35 44 52 39 38 47-50 34,36 37 51 45 46 16 32 24 1 4 3 6 13 12 9 7 11 5 10 2 21 22 8 43 42 25 41 40 15 26 53 14 North America Country/Area Company name 1 2 Main products Voting ...

  • Page 41
    ... Business Overview Management & Corporate Information Financial Section Investor Information Corporate Philosophy Corporate Governance Risk Factors R&D and Intellectual Property R&D Organization Production Sites Africa Country/Area Company name 25 26 Overseas Manufacturing Main products...

  • Page 42
    ... an inventor of looms, Kiichiro devoted his life to automobile manufacturing, at the time an unknown field in Japan. After a lot of painstaking work, he completed the A1 prototype passenger car in 1935, and the history of Toyota Motor Corporation began. A 1930s 1933 1935 1936 1937 1938 Automobile...

  • Page 43
    ... and Analysis of Financial Condition and Results of Operations Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Management's Annual Report on Internal Control...

  • Page 44
    ...Selected Financial Summary (U.S. GAAP) Toyota Motor Corporation Fiscal years ended March 31 Yen in millions 2000 2001 2002 2003 For the Year: Net Revenues: Sales of Products...Financing Operations ...Total ...Costs and Expenses: Cost of Products Sold ...Cost of Financing Operations ...Selling...

  • Page 45
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Yen in millions % change 2004 2005 2006 2007 2008 2009 2008 vs 2009 ¥16,578,033 716,727 ¥17,294,760 ¥17,790,862 760,664 ¥18,551,526...

  • Page 46
    ... Information Toyota Motor Corporation Fiscal years ended March 31 Yen in millions % change 2004 Business Segment: Net Revenues: Automotive ...Â¥15,973,826 Financial Services ...736,852 All Other ...896,244 Intersegment Elimination ...(312,162) Consolidated ...Â¥17,294,760 Operating Income (Loss...

  • Page 47
    ... Forward Business Overview Management & Corporate Information Financial Section Investor Information Consolidated Quarterly Financial Summary Toyota Motor Corporation Fiscal years ended March 31 Yen in billions 2008 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter 2009...

  • Page 48
    ... operations is Toyota's most significant business segment, accounting for 88% of Toyota's total revenues before the elimination of intersegment revenues for fiscal 2009. Toyota's primary markets based on vehicle unit sales for fiscal 2009 were: Japan (26%), North America (29%), Europe (14%) and Asia...

  • Page 49
    ... profits unpredictable. Changes in these laws, regulations, policies and other governmental actions may affect the production, licensing, distribution or sale of Toyota's products, cost of products or applicable tax rates. Toyota is currently one of the defendants in purported national class actions...

  • Page 50
    .... The credit card receivables at March 31, 2009 decreased by ¥1.1 billion from March 31, 2008 to ¥224.6 billion. Other Business Operations Toyota's other business operations consist of housing, including the manufacture and sale of prefabricated homes; information technology related businesses...

  • Page 51
    ... geographic market based on the country location of the parent company or the subsidiary that transacted the sale with the external customer for the past three fiscal years. Revenues by Market FY2009 36.4% 29.7% Europe 14.1% Asia 11.9% All Other Markets 7.9% Japan North America Annual Report 2009...

  • Page 52
    ... mix compared to fiscal 2008. Net revenues in North America, Europe, Asia and Other were unfavorably impacted primarily by the decrease in vehicle unit sales and the impact of fluctuations in foreign currency translation rates. • Financial Services Operations Segment Net revenues in fiscal 2009...

  • Page 53
    ... Forward Business Overview Management & Corporate Information Financial Section Investor Information Operating Income and Loss Toyota's operating income Operating Income (Loss) decreased by ¥2,731.3 billion to (¥ Billion) (%) an operating loss of ¥461.0 bil- 2,500 20 lion during fiscal 2009...

  • Page 54
    ...available-for sale securities. in Asia and 18.7% in Other compared with the prior year. Eliminating the difference in the Japanese yen value used for translation purposes, net revenues in fiscal 2008 would have increased by 3.3% in Japan, 7.6% in North America, 6.8% in Europe, 34.2% in Asia, and 13...

  • Page 55
    ... Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information prior year. The increase resulted primarily from the approximate ¥1,300 billion impact on costs of products attributed to vehicle unit sales growth and changes in sales mix, the ¥252...

  • Page 56
    ... operating income including cost reduction efforts and decreases in fixed costs and expenses. As a result, Toyota expects that operating loss will increase in fiscal 2010 compared with fiscal 2009. Also, Toyota expects loss before income taxes and net loss will increase in fiscal 2010. Exchange rate...

  • Page 57
    ...Forward Business Overview Management & Corporate Information Financial Section Investor Information The foregoing statements are forward-looking statements based upon Toyota's management's assumptions and beliefs regarding exchange rates, market demand for Toyota's products, economic conditions...

  • Page 58
    ... total shareholders' equity, compared to 102.9% as of March 31, 2008. Toyota's long-term debt was rated "AA" by Standard & Poor's Ratings Group, "Aa1" by Moody's Investors Services and "AAA" by Rating and Investment Information, Inc. as of May 31, 2009. A credit rating is not a recommendation to buy...

  • Page 59
    ... the retirement date of each covered employee. The unfunded pension liabilities increased in fiscal 2009 compared to the prior year primarily due to a decrease in the market value of plan assets. See note 19 to the consolidated financial statements for further discussion. Toyota's treasury policy is...

  • Page 60
    ... totaled ¥1,702.3 billion as of March 31, 2009. Guarantees Lending Commitments Credit Facilities with Credit Card Holders Toyota's financial services operation issues credit cards to customers. As customary for credit card businesses, Toyota maintains credit facilities with holders of credit cards...

  • Page 61
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Toyota is unable to make reasonable estimates of the period of cash settlement with respect to liabilities recognized for uncertain tax benefits,...

  • Page 62
    ...sales financing and finance lease receivables could experience further downward pressure. If these factors require a significant increase in Toyota's allowance for doubtful accounts and credit losses, it could negatively affect future operating results of the financial services operations. The level...

  • Page 63
    ...The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information • Sensitivity Analysis The level of credit losses, which could significantly impact Toyota's results of operations, is influenced primarily by two factors: frequency of occurrence...

  • Page 64
    ... policy for plan asset management, and forecasted market conditions. A weighted-average discount rate of 2.8% and a weighted-average expected rate of return on plan assets of 3.6% are the results of assumptions used for the various pension plans in calculating Toyota's consolidated pension costs...

  • Page 65
    ...Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Interest Rate Risk Toyota is subject to market risk from exposures to changes in interest rates based on its financing, investing and cash management...

  • Page 66
    Financial Section Consolidated Balance Sheets Toyota Motor Corporation March 31, 2008 and 2009 Yen in millions U.S. dollars in millions ASSETS 2008 2009 2009 Current assets Cash and cash equivalents ...Â¥ 1,628,547 Time deposits ...134,773 Marketable securities ...542,210 Trade accounts and ...

  • Page 67
    ... Overview Management & Corporate Information Financial Section Investor Information Yen in millions U.S. dollars in millions LIABILITIES AND SHAREHOLDERS' EQUITY 2008 2009 2009 Current liabilities Short-term borrowings ...Â¥ 3,552,721 Current portion of long-term debt ...2,675,431 Accounts...

  • Page 68
    Financial Section Consolidated Statements of Income Toyota Motor Corporation For the years ended March 31, 2007, 2008 and 2009 Yen in millions U.S. dollars in millions 2007 2008 2009 2009 Net revenues Sales of products ...Â¥22,670,097 Financing operations ...1,277,994 23,948,091 Costs and ...

  • Page 69
    ... Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Consolidated Statements of Shareholders' Equity Toyota Motor Corporation For the years ended March 31, 2007, 2008 and 2009 Yen in millions Additional paid-in capital...

  • Page 70
    ... on disposal of fixed assets ...50,472 Unrealized losses on available-for-sale securities, net ...4,614 Deferred income taxes ...132,308 Minority interest in consolidated subsidiaries ...49,687 Equity in earnings of affiliated companies ...(209,515) Changes in operating assets and liabilities, and...

  • Page 71
    ...Business Overview Management & Corporate Information Financial Section Investor Information Notes to Consolidated Financial Statements Toyota Motor Corporation 1 Nature of operations: leasing and certain other financial services primarily to its dealers and their customers to support the sales...

  • Page 72
    ... at the time the related sale is recognized based on estimates that Toyota will incur to repair or replace product parts that fail while under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on...

  • Page 73
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Property, plant and equipment Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized; minor ...

  • Page 74
    ... gains/losses on marketable securities designated as available-for-sale, foreign currency translation adjustments and adjustments attributed to pension liabilities or minimum pension liabilities associated with Toyota's defined benefit pension plans. Accounting changes In June 2006, the Financial...

  • Page 75
    ... $1, the approximate current exchange rate at March 31, 2009, was used for the translation of the accompanying consolidated financial amounts of Toyota as of and for the year ended March 31, 2009. U.S. dollar amounts presented in the consolidated financial statements and related notes are included...

  • Page 76
    ...-for-sale mainly consist of government bonds and corporate debt securities with maturities from 1 to 10 years. Proceeds from sales of available-for-sale securities were ¥148,442 million, ¥165,495 million and ¥800,422 million ($8,148 million) for the years ended March 31, 2007, 2008 and 2009...

  • Page 77
    ... course of business, Toyota maintains long-term investment securities, included in "Marketable securities and other securities investments" and issued by a number of nonpublic companies which are recorded at cost, as their fair values were not readily determinable. Management employs a systematic...

  • Page 78
    ... sale date of securitization transactions completed during the years ended March 31, 2007, 2008 and 2009 were as follows: For the years ended March 31, 2007 2008 2009 Prepayment speed related to securitizations ...Weighted-average life (in years) ...Expected annual credit losses ...Discount rate...

  • Page 79
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information The key economic assumptions and the sensitivity of the current fair value of the retained interest to an immediate 10 and 20 percent adverse ...

  • Page 80
    ...certain noncurrent receivable balances which are reported as other assets in the consolidated balance sheets. An analysis of the allowance for credit losses relating to finance receivables and vehicles and equipment on operating leases for the years ended March 31, 2007, 2008 and 2009 is as follows...

  • Page 81
    ... March 31, 2008 2009 2009 Current assets ...Noncurrent assets ...Total assets ...Current liabilities ...Long-term liabilities...Shareholders' equity...Total liabilities and shareholders' equity ...Toyota's share of shareholders' equity ...Number of affiliated companies accounted for by the...

  • Page 82
    ... 31, 2009, Toyota has unused short-term lines of credit amounting to ¥2,476,458 million ($25,211 million) of which ¥751,523 million ($7,651 million) related to commercial paper Long-term debt at March 31, 2008 and 2009 comprises the following: programs. Under these programs, Toyota is authorized...

  • Page 83
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information The aggregate amounts of annual maturities of long-term debt during the next five years are as follows: Years ending March 31, Yen in millions ...

  • Page 84
    ... 31, 2008 2009 2009 Deferred tax assets Accrued pension and severance costs...Â¥ 156,924 Warranty reserves and accrued expenses ...205,564 Other accrued employees' compensation ...129,472 Operating loss carryforwards for tax purposes ...54,368 Inventory adjustments ...67,904 Property, plant and...

  • Page 85
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information The valuation allowance mainly relates to deferred tax assets of the consolidated subsidiaries with operating loss carryforwards for tax purposes...

  • Page 86
    ...13,876 million) relating to equity in undistributed earnings of companies accounted for by the equity method. On June 23, 2005, at the Ordinary General Shareholders' Meeting, the shareholders of the parent company approved to purchase up to 65 million shares of its common stock at a cost up to ¥250...

  • Page 87
    ... Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Detailed components of accumulated other comprehensive income (loss) at March 31, 2008 and 2009 and the related changes, net of taxes for the years...

  • Page 88
    Financial Section 18 Stock-based compensation: under the Toyota's stock option plan for directors, officers and employees of the parent company, its subsidiaries and affiliates. For the years ended March 31, 2007, 2008 and 2009, Toyota recognized stock-based compensation expenses for stock options...

  • Page 89
    ...on lengths of service and current rates of pay. Toyota uses a March 31 measurement date for its benefit plans. Pension and severance plans Upon terminations of employment, employees of the parent company and subsidiaries in Japan are entitled, under the retirement plans of each company, to lump-sum...

  • Page 90
    Financial Section Information regarding defined benefit plans Information regarding Toyota's defined benefit plans is as follows: Yen in millions March 31, U.S. dollars in millions March 31, 2008 2009 2009 Change in benefit obligation Benefit obligation at beginning of year ...Service cost ...

  • Page 91
    ... Business Overview Management & Corporate Information Financial Section Investor Information Components of the net periodic pension cost are as follows: Yen in millions For the years ended March 31, U.S. dollars in millions For the year ended March 31, 2007 2008 2009 2009 Service cost...

  • Page 92
    ... policy for plan asset management, and forecasted market conditions. Toyota's pension plan weighted-average asset allocations as of March 31, 2008 and 2009, by asset category are as follows: Plan assets at March 31, 2008 2009 Equity securities ...Debt securities ...Real estate ...Other...Total...

  • Page 93
    ...The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Undesignated derivative financial instruments Toyota uses foreign exchange forward contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements...

  • Page 94
    ...) on undesignated derivative financial instruments reported in the cost of financing operations for the years ended March 31, 2007, 2008 and 2009 were ¥(19,984) million, ¥(67,991) million and ¥(80,298) million ($(817) million) those reported in foreign exchange gain (loss), net were ¥17,866...

  • Page 95
    ... The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information The estimated fair values of Toyota's financial instruments, excluding marketable securities and other securities investments and affiliated companies, are summarized as follows...

  • Page 96
    ...31, 2009 are as follows: Years ending March 31, Yen in millions U.S. dollars in millions 2010...2011...2012...2013...2014...Thereafter ...Total minimum lease payments ...Less-Amount representing interest ...Present value of net minimum lease payments ...Less-Current obligations ...Long-term capital...

  • Page 97
    ... of Toyota's operations on a worldwide basis are derived from the Automotive and Financial Services business segments. The Automotive segment designs, manufactures and distributes sedans, minivans, compact cars, sportutility vehicles, trucks and related parts and accessories. The Annual Report 2009...

  • Page 98
    ...Segment operating results and assets As of and for the year ended March 31, 2007: Yen in millions Inter-segment Elimination/ Unallocated Amount Automotive Financial Services All Other Consolidated Net revenues Sales to external customers ...Inter-segment sales and transfers ...Total...Operating...

  • Page 99
    ... year ended March 31, 2007: Yen in millions Inter-segment Elimination/ Unallocated Amount Consolidated Japan North America Europe Asia Other Net revenues Sales to external customers ...Inter-segment sales and transfers ...Total...Operating expenses ...Operating income ...Assets ...Long-lived...

  • Page 100
    ...Toyota's non-financial services and financial services businesses. Balance sheets Yen in millions March 31, U.S. dollars in millions March 31, 2008 2009 2009 Non-Financial Services Businesses Current assets Cash and cash equivalents ...Â¥ 1,473,101 Marketable securities...526,801 Trade accounts...

  • Page 101
    Top Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Yen in millions March 31, U.S. dollars in millions March 31, 2008 2009 2009 Non-Financial Services Businesses Current liabilities Short-term...

  • Page 102
    ...in earnings of affiliated companies ...96,776 Minority interest in consolidated subsidiaries ...(174) Equity in earnings (losses) of affiliated companies ...16,385 Net income (loss)-Financial Services Businesses ...112,987 Eliminations ...(48) Net income (loss) ...¥ 1,644,032 ¥ 100 TOYOTA MOTOR...

  • Page 103
    ... doubtful accounts and credit losses ...Pension and severance costs, less payments ...Losses on disposal of fixed assets ...Unrealized losses on available-for-sale securities, net ...Deferred income taxes ...Minority interest in consolidated subsidiaries ...Equity in earnings of affiliated companies...

  • Page 104
    ... doubtful accounts and credit losses ...Pension and severance costs, less payments ...Losses on disposal of fixed assets ...Unrealized losses on available-for-sale securities, net ...Deferred income taxes ...Minority interest in consolidated subsidiaries ...Equity in earnings of affiliated companies...

  • Page 105
    ... Messages Performance Overview The Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information 25 Per share amounts: Reconciliations of the differences between basic and diluted net income (loss) per share for the years ended March 31, 2007...

  • Page 106
    ... Marketable securities and other securities investments include debt securities and equity securities. Toyota uses quoted market prices for identical or similar assets or liabilities to measure fair value. Marketable securities and other securities investments 104 TOYOTA MOTOR CORPORATION

  • Page 107
    ... Forward Business Overview Management & Corporate Information Financial Section Investor Information The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the period ended March 31, 2009: Yen in millions For the year ended...

  • Page 108
    Financial Section Management's Annual Report on Internal Control over Financial Reporting Toyota's management is responsible for establishing and maintaining effective internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable ...

  • Page 109
    ... Right Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Toyota Jidosha Kabushiki Kaisha ("Toyota Motor Corporation") In our opinion, the...

  • Page 110
    ...: Common Stock: Fiscal Year-End: Toyota Motor Corporation August 28, 1937 ¥397,049 million March 31 Number of Affiliates: [Consolidated Subsidiaries] 529 [Affiliates Accounted for by the Equity Method] 56 Number of Employees: 71,116 (Consolidated: 320,808) Corporate Web Site: [Corporate Information...

  • Page 111
    ...Way Forward Business Overview Management & Corporate Information Financial Section Investor Information Major Shareholders (Top 10) Ownership Breakdown Name Number of Shares Held (Thousands) 17.6 % Other corporate entities Japan Trustee Services Bank, Ltd. Toyota Industries Corporation The...

  • Page 112
    http://www.toyota.co.jp