EX-99.1 3 ex99-1tof6k_103103.txt PRESS RELEASE For immediate release October 3, 2003 Toyota Auto Body Co., Ltd. Araco Corporation Toyota Motor Corporation Toyota Group to Strengthen Vehicle Operations -Toyota Auto Body, Araco to Integrate Vehicle Manufacturing & Sales Businesses- Tokyo -- TOYOTA MOTOR CORPORATION (TMC) and subsidiaries TOYOTA AUTO BODY CO., LTD. (Toyota Auto Body) and ARACO CORPORATION (Araco) announced today that they have reached an agreement under which Toyota Auto Body and Araco will integrate their vehicle manufacturing and sales businesses. Toward the realization of Global Vision 2010, which TMC announced in April 2002, the Toyota Group is actively engaged in seeking out the most-efficient structures for expanding its global business. Toyota Auto Body and Araco engage in similar business activities, including the manufacturing of minivans, SUVs and other vehicles, as well as customization. The two companies have in the past cooperated with TMC in developing business, but as global competition becomes increasingly intense, it is necessary that these two central manufacturers of the Toyota Group raise their capabilities in all areas, including development, production preparation and production. The integration agreement announced today will allow the two companies to consolidate their expertise and use their management resources comprehensively and efficiently. This will help both companies develop and will be extremely effective in expanding and developing the business of the entire Toyota Group in furtherance of the realization of Global Vision 2010. The integrated company will seek to achieve further growth through such measures as the following: 1) Reinforcing product development capabilities and cost competitiveness in minivans and SUVs to respond to diversifying customer needs. 2) Expanding and strengthening its universal-mobility-vehicle business, environment-related businesses and customized-vehicle business to respond to growing social needs. 3) Contributing to the production activities of TMC's overseas projects and to the global development of the Toyota Group. 4) Increasing the efficiency of all divisions, including development, production and management. For details on the integration and the companies involved, please see "Attachment" or contact: - General Service & Publicity Dept., General Administration Div., Toyota Auto Body Tel: 0566-36-7512 - General Administration Dept., PR & Corporate Communications Staff, Araco Corporation Tel: 0565-51-2222 - Public Affairs Div., Toyota Motor Corporation Tel: 03-3817-9150/9161 Attachment 1. Overview of the Integration
1) Integration schedule ---------------------------------------------------------- --------------------------------- Board of directors meeting for approving basic October 3, 2003 integration agreement ---------------------------------------------------------- --------------------------------- Signing of basic integration agreement October 3, 2003 ---------------------------------------------------------- --------------------------------- Board of directors meeting for approving integration Late April 2004 (tentative) (corporate split) agreement ---------------------------------------------------------- --------------------------------- Signing of integration (corporate split) agreement Late April 2004 (tentative) ---------------------------------------------------------- --------------------------------- General shareholders meeting for approving integration Late June 2004 (tentative) (corporate split) agreement ---------------------------------------------------------- --------------------------------- Date of integration (corporate split) October 1, 2004 (tentative) ---------------------------------------------------------- --------------------------------- Registration of integration (corporate split) Early October 2004 (tentative) ---------------------------------------------------------- ---------------------------------
2) Method of Integration Toyota Auto Body and Araco will conduct the integration on an equal basis. Procedurally, Toyota Auto Body will be the acquiring company, and Araco's vehicle manufacturing and sales business will be transferred and integrated into Toyota Auto Body. (NOTE: After transferring its vehicle manufacturing and sales business, Araco plans to merge with Toyoda Boshoku Corporation and TakaNichi Co., Ltd. on the same day (Oct. 1, 2004).)
3) Allocation Ratio --------------------------------- ------------------------------- ------------------------------- Company Toyota Auto Body Araco --------------------------------- ------------------------------- ------------------------------- Participation Ratio 1 0.98 --------------------------------- ------------------------------- -------------------------------
For each Araco share, 0.98 shares of Toyota Auto Body will be issued. (NOTE: In the event of material changes in any of the conditions on which the above allocation ratio was determined, the ratio is subject to change following consultations between the companies involved.) Basis for Calculating the Allocation Ratio Nomura Securities Co., Ltd., an impartial third-party company, was asked to perform a calculation of the appropriate allocation ratio. Based on the results of this calculation, the allocation ratio was determined through consultations between the companies involved. 1 2. Business to be Transferred 1) Type of business The vehicle manufacturing and sales business of Araco. 2) Business results of Araco's vehicle manufacturing and sales business (the business to be transferred) for the fiscal year ending March 2003
Unit: million yen ------------------------ --------------------------- --------------------------- ------------------------ Araco vehicle manufacturing Toyota Auto Body and sales business (a) FY2003 (b) Percentage (a / b) (Unconsolidated) (Unconsolidated) ------------------------ --------------------------- ------------------------ --------------------------- Net sales 202,358 912,872 22.2% ------------------------ --------------------------- ------------------------ --------------------------- Gross profit 12,623 25,621 49.3% ------------------------ --------------------------- ------------------------ --------------------------- Operating income 6,990 16,725 41.8% ------------------------ --------------------------- ------------------------ --------------------------- Ordinary income 6,713 16,543 40.6% ------------------------ --------------------------- ------------------------ ---------------------------
3) Assets and liabilities (unconsolidated) of Araco's vehicle manufacturing and sales business (the business to be transferred) (as of March 31,2003)
Unit: million yen -------------------------------------------------------- ------------------------------------------------------- Assets Liabilities ---------------------------- --------------------------- --------------------------- --------------------------- Item Book Value Item Book Value ---------------------------- --------------------------- --------------------------- --------------------------- Current assets 53,143 Current liabilities 41,071 ---------------------------- --------------------------- --------------------------- --------------------------- Fixed assets 26,550 Long-term liabilities 11,709 ---------------------------- --------------------------- --------------------------- --------------------------- NOTE: In addition to the above business that will be transferred, subsidiaries that are subject to consolidation are also included, but the impact is minimal.
3. Status of the Acquiring Company After Integration An integration promotion committee, chaired by the presidents of the two companies involved, will discuss and determine details regarding the acquiring company after the integration. 2 Reference 1: Outline of Companies Involved (unconsolidated)
(as of March 31, 2003) -------- ---------------------------- -------------------------------------- --------------------------------------- 1 Company name Toyota Auto Body Araco*1 -------- ---------------------------- -------------------------------------- --------------------------------------- 2 Business Manufacture and sales of automobile Manufacture and sales of automobile bodies, parts and accessories bodies & parts -------- ---------------------------- -------------------------------------- --------------------------------------- 3 Established August 31, 1945 July 24, 1947 -------- ---------------------------- -------------------------------------- --------------------------------------- 4 Location of head office 100, Kanayama, Ichiriyama-cho, 25, Kami-Fujiike, Yoshiwara-cho, Kariya City, Aichi Prefecture Toyota City, Aichi Prefecture -------- ---------------------------- -------------------------------------- --------------------------------------- 5 Representative Risuke Kubochi, President Masanao Motonami, President -------- ---------------------------- -------------------------------------- --------------------------------------- 6 Capital 8,871 3,188 (million yen) -------- ---------------------------- -------------------------------------- --------------------------------------- 7 Number of shares of common 86,240,466 27,884,000 stock issued -------- ---------------------------- -------------------------------------- --------------------------------------- 8 Shareholders' equity 120,020 57,013 (million yen) -------- ---------------------------- -------------------------------------- --------------------------------------- 9 Total assets 284,595 164,255 (million yen) -------- ---------------------------- -------------------------------------- --------------------------------------- 10 Fiscal year ending March 31 March 31 -------- ---------------------------- -------------------------------------- --------------------------------------- 11 Number of employees 8,035 5,019 -------- ---------------------------- -------------------------------------- --------------------------------------- 12 Main business partners Supplier: Supplier: Toyota Motor Corporation Toyota Motor Corporation Sales: Sales: Toyota Motor Corporation Toyota Motor Corporation -------- ---------------------------- -------------------------------------- --------------------------------------- 13 Largest shareholders and 1. Toyota Motor Corporation*2 47.10% 1. Toyota Motor Corporation 75.03% shareholding ratio 2. Toyota Industries Corp. 7.38% 2. Toyota Auto Body, Co., Ltd. 6.31% 3. Japan Trustee Services Bank, Ltd. 3. Araco Employee Shareholding 3.88% Organization 3.06% 4. Toyota Auto Body Employee 4. Toyota Tsusho Corp. 1.74% Shareholding Organization 2.91% 5. The Master Trust Bank of Japan, Ltd. 2.64% -------- ---------------------------- -------------------------------------- --------------------------------------- 14 Main banks UFJ Bank, Ltd. UFJ Bank, Ltd. Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Banking Corp. -------- ---------------------------- -------------------------------------- --------------------------------------- 15 Ties between Capital ties Toyota Auto Body owns 6.31% of total shares issued by Araco, while the Araco owns 0.11% of total shares issued by Toyota Auto Body. companies involved ------------- ------------------------------------------------------------------------------ Personnel None ties ------------- ------------------------------------------------------------------------------ Business Araco delivers seats, interior components and door trims to Toyota Auto Body ties -------- -------------- ------------- ------------------------------------------------------------------------------
*1Entire company including its interior components business. *2On May 30, 2003, Toyota Motor Corporation acquired 2.5 million shares of Toyota Auto Body, increasing TMC's shareholding ratio in Toyota Auto Body to 50.01%. 3
Reference 2: Business results of the three most-recent fiscal years of the companies involved ------------------------- ------------------------------------------ ----------------------------------------- Toyota Auto Body Araco* (on an unconsolidated basis) (on an unconsolidated basis) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- End of fiscal year March March March March March March 2001 2002 2003 2001 2002 2003 ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Net sales 549,664 777,427 912,872 329,344 347,522 408,384 (million yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Operating income 15,082 15,139 16,725 7,587 6,231 8,737 (million yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Ordinary income 15,234 15,482 16,543 8,023 7,276 9,728 (million yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Net income 8,364 9,261 17,777 -870 4,651 12,220 (million yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Net income per share 96.99 107.39 204.93 -31.22 166.82 434.94 (yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Dividend per share 13 15 22 20 41 64 (yen) ------------------------- ------------- ------------- -------------- ------------- ------------- ------------- Shareholder's equity per 1,231.02 1,271.64 1,390.63 1,521.84 1,660.70 2,044.65 share (yen) ------------------------- ------------- ------------- -------------- ------------- ------------- -------------
*Entire company including its interior components business. ------------------------- ------------------------------------------ Toyota Auto Body (on a consolidated basis) ------------------------- ------------------------------------------ End of fiscal year March March March 2001 2002 2003 ------------------------- ------------- ------------- -------------- Net sales 556,531 788,755 929,745 (million yen) ------------------------- ------------- ------------- -------------- Operating income 17,699 16,583 18,337 (million yen) ------------------------- ------------- ------------- -------------- Ordinary income 17,186 17,266 18,098 (million yen) ------------------------- ------------- ------------- -------------- Net income 9,286 10,220 18,600 (million yen) ------------------------- ------------- ------------- -------------- Net income per share 107.69 118.51 213.78 (yen) ------------------------- ------------- ------------- -------------- Shareholder's equity per 1,312.80 1,364.85 1,495.13 share (yen) ------------------------- ------------- ------------- -------------- # # #