Toyota 2009 Annual Report Download - page 59

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The Right Way Forward Business OverviewPerformance Overview Financial Section
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Top Messages
Annual Report 2009 57
pension liabilities relate primarily to the parent company and its
Japanese subsidiaries. The unfunded amounts will be funded
through future cash contributions by Toyota or in some cases
will be funded on the retirement date of each covered employ-
ee. 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 to maintain controls on all expo-
sures, to adhere to stringent counterparty credit standards, and
to actively monitor marketplace exposures. Toyota remains cen-
tralized, and is pursuing global efficiency of its financial services
operations through Toyota Financial Services Corporation.
The key element of Toyota’s financial policy is maintaining a
strong financial position that will allow Toyota to fund its
research and development initiatives, capital expenditures and
financing operations on a cost effective basis even if earnings
experience short-term fluctuations. Toyota believes that it main-
tains sufficient liquidity for its present requirements and that by
maintaining its high credit ratings, it will continue to be able to
access funds from external sources in large amounts and at rela-
tively low costs. Toyota’s ability to maintain its high credit ratings
is subject to a number of factors, some of which are not within
Toyota’s control. These factors include general economic condi-
tions in Japan and the other major markets in which Toyota does
business, as well as Toyota’s successful implementation of its
business strategy.
Shareholders’ Equity
and Equity Ratio
0
3,000
6,000
9,000
12,000
15,000
(¥ Billion)
’08’07 ’09’06’05FY
0
20
40
60
80
100
（%）
Equit
y
ratio (Ri
g
ht scale)