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Liquidity and Capital Resources
0822
Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
Management's Discussion and Analysis of Financial Condition and Results of Operations
Historically, Toyota has funded its capital expendi-
tures and research and development activities
through cash generated by operations.
In fiscal 2012, Toyota expects to sufficiently
fund its capital expenditures and research and
development activities through cash and cash
equivalents on hand, and cash generated by
operations. Toyota will use its funds for the
development of environment technologies,
maintenance and replacement of manufacturing
facilities, and the introduction of new products.
See “Information on the Company — Business
Overview — Capital Expenditures and Divesti-
tures” for information regarding Toyota’s material
capital expenditures and divestitures for fiscal
2009, 2010 and 2011, and information concerning
Toyota’s principal capital expenditures and
divestitures currently in progress.
Toyota funds its financing programs for
customers and dealers, including loans and
vehicle unit sales, which exceed the factors
increasing operating income. As a result, Toyota
expects that operating income will decrease in
fiscal 2012 compared with fiscal 2011. Also,
Toyota expects income before income taxes and
equity in earnings of affiliated companies and net
income attributable to Toyota Motor Corporation
will decrease in fiscal 2012. Exchange rate
fluctuations can materially affect Toyota’s
operating results. In particular, a strengthening of
the Japanese yen against the U.S. dollar can
have a material adverse effect on Toyota’s
operating results. See “Operating and Financial
Review and Prospects — Operating Results —
Overview — Currency Fluctuations” for further
leasing programs, from both cash generated by
operations and borrowings by its sales finance
subsidiaries. Toyota seeks to expand its ability to
raise funds locally in markets throughout the world
by expanding its network of finance subsidiaries.
Repurchasing of its own shares occurred at
an approximate total cost of ¥73 billion for fiscal
2009. Toyota refrained from repurchasing of its
own shares for fiscal 2010 and 2011. Toyota has
decided, for the time being, to refrain from
repurchasing its own shares, in order to prioritize
retention of cash reserves given the continued
uncertainties surrounding future global economy.
Net cash provided by operating activities was
¥2,024.0 billion for fiscal 2011, compared with
¥2,558.5 billion for the prior fiscal year. The
decrease in net cash provided by operating
activities resulted from an increase in cash
payment to suppliers attributable to the increase
in cost of products sold in the automotive
discussion. See “Information on the Company —
Business Overview” for a more detailed
information of the Great East Japan Earthquake.
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 and others. See “Cautionary
Statement Concerning Forward-Looking
Statements”. Toyota’s actual results of operations
could vary significantly from those described
above as a result of unanticipated changes in the
factors described above or other factors, including
those described in “Risk Factors”.
operations, and cash payments for income taxes,
partially offset by an increase in cash collection
received from sale of products due to an increase
in net revenue for the automotive operations.
Net cash used in investing activities was
¥2,116.3 billion for fiscal 2011, compared with
¥2,850.1 billion for the prior fiscal year. The
decrease in net cash used in investing activities
resulted from an increase in sales and maturity of
marketable securities and security investments,
partially offset by an increase in purchases of
marketable securities and security investments.
Net cash provided by or used in financing
activities was a ¥434.3 billion increase for fiscal
2011, compared with ¥277.9 billion decrease for
the prior fiscal year. The increase in net cash
provided by financing activities resulted from an
increase in short-term borrowings and decrease
in repayment of long-term debt.
Total capital expenditures for property, plant
and equipment, excluding vehicles and equipment
on operating leases, were ¥629.3 billion during
fiscal 2011, an increase of 4.1% over the ¥604.5
billion in total capital expenditures during the prior
fiscal year. The increase in capital expenditures
resulted from an increase of investments in North
America and Asia.
Total capital expenditures for vehicles and
equipment on operating leases were ¥1,061.8
billion during fiscal 2011, an increase of 27.5%
over the ¥833.0 billion in expenditures from the
prior fiscal year. The increase in expenditures for
vehicles and equipment on operating leases
resulted from an increase in investments in the
financial services operations.
Toyota expects investments in property, plant
and equipment, excluding vehicles and equipment
on operating leases, to be approximately ¥720.0
billion during fiscal 2012.
Based on current available information, Toyota
does not expect environmental matters to have a
material impact on its financial position, results of
operations, liquidity or cash flows during fiscal
2012. However, there exists uncertainty with
0
1,000
2,000
3,000
4,000
FY ‘07 ‘11‘09
‘08‘10
(¥ Billion)
Net cash provided by
operating activities
Free cash flow
0
500
1,000
1,500
(¥ Billion)
FY ‘07 ‘11
Capital expenditures
Depreciation
‘09‘08‘10
0
500
1,000
1,500
2,500
2,000
(¥ Billion)
FY ‘07 ‘11‘10‘09‘08
Net Cash Provided by
Operating Activities and
Free Cash Flow*
Capital Expenditures for Property,
Plant and Equipment* and
Depreciation
Cash and Cash Equivalents
at End of Year
* (Net cash provided by operating activities)-
(Capital expenditures for property, plant
and equipment, excluding vehicles and
equipment on operating leases)
* Excluding vehicles and equipment on
operating leases
63
TOYOTA ANNUAL REPORT 2011