FY2018 Third Quarter Financial Summary

EX-99.1 2 d525028dex991.htm FY2018 THIRD QUARTER FINANCIAL SUMMARY FY2018 Third Quarter Financial Summary

FINANCIAL SUMMARY

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

FY2018 Third Quarter

(April 1, 2017 through December 31, 2017)

English translation from the original Japanese-language document

TOYOTA MOTOR CORPORATION

FY2018 Third 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

February 6, 2018


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	: :	http://www.toyota.co.jp Akio Toyoda, President
Contact person	:	Kenta Kon, General Manager, Accounting Division Tel. (0565)28-2121
Filing date of quarterly securities report	:	February 13, 2018
Payment date of cash dividends	:	—
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 FY2018 First Nine Months (April 1, 2017 through December 31, 2017)

(1)	Consolidated financial results (For the nine months ended December 31)


	(% of change from previous first nine months)
	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		%
FY2018 first nine months		21,796,974		8.1		1,770,186		13.8		2,003,113		13.6		2,013,177		40.5
FY2017 first nine months		20,154,720		-6.0		1,555,451		-32.5		1,764,072		-28.1		1,432,704		-24.0

(Note) Comprehensive income: FY2018 first nine months 2,428,083 million yen ( 50.3%),

FY2017 first nine months 1,615,665 million yen ( -11.7 %)


	Net income attributable to Toyota Motor Corporation per common share – Basic		Net income attributable to Toyota Motor Corporation per common share – Diluted
	Yen		Yen
FY2018 first nine months		677.95		670.31
FY2017 first nine months		472.31		467.35

(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		%
FY2018 third quarter		51,216,462		20,170,391		18,996,488		37.1
FY2017		48,750,186		18,668,953		17,514,812		35.9

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
FY2017		—		100.00		—		110.00		210.00
FY2018		—		100.00		—
FY2018 (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 FY2018 (April 1, 2017 through March 31, 2018)


	(% of change from FY2017)
	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		29,000,000		5.1		2,200,000		10.3		2,450,000		11.7		2,400,000		31.1		808.91

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

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: none

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):

FY2018 third quarter 3,262,997,492 shares, FY2017 3,262,997,492 shares

(ii)

Number of treasury stock at the end of each period: FY2018 third quarter 324,695,986 shares,

FY2017 288,274,636 shares

(iii)

Average number of shares issued and outstanding in each period: FY2018 first nine months 2,955,906,559 shares,

FY2017 first nine months 3,017,815,402 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, 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
FY2017	—		52.50		—		52.50		105.00
FY2018	—		79.00		—
FY2018 (forecast)							—		—

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

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

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 FY2018 Third Quarter

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

1.	Consolidated Financial Statements

(1) Consolidated Balance Sheets


	(Yen in millions)
	FY2017 (March 31, 2017)			FY2018 third quarter (December 31, 2017)			Increase (Decrease)
Assets
Current assets:
Cash and cash equivalents		2,995,075			2,746,661			(248,414	)
Time deposits		1,082,654			1,201,816			119,162
Marketable securities		1,821,598			1,842,324			20,726
Trade accounts and notes receivable, less allowance for doubtful accounts		2,115,938			2,093,532			(22,406	)
Finance receivables, net		6,196,649			6,581,503			384,854
Other receivables		436,867			478,370			41,503
Inventories		2,388,617			2,542,307			153,690
Prepaid expenses and other current assets		796,297			1,018,119			221,822

Total current assets		17,833,695			18,504,632			670,937

Noncurrent finance receivables, net		9,012,222			9,836,902			824,680
Investments and other assets:
Marketable securities and other securities investments		7,679,928			8,163,840			483,912
Affiliated companies		2,845,639			3,071,841			226,202
Employees receivables		25,187			23,292			(1,895	)
Other		1,156,406			1,152,631			(3,775	)

Total investments and other assets		11,707,160			12,411,604			704,444

Property, plant and equipment:
Land		1,379,991			1,390,339			10,348
Buildings		4,470,996			4,652,591			181,595
Machinery and equipment		11,357,340			11,695,766			338,426
Vehicles and equipment on operating leases		5,966,579			6,267,680			301,101
Construction in progress		474,188			493,638			19,450

Total property, plant and equipment, at cost		23,649,094			24,500,014			850,920

Less – Accumulated depreciation		(13,451,985	)		(14,036,690	)		(584,705	)

Total property, plant and equipment, net		10,197,109			10,463,324			266,215

Total assets		48,750,186			51,216,462			2,466,276

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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


	(Yen in millions)
	FY2017 (March 31, 2017)			FY2018 third quarter (December 31, 2017)			Increase (Decrease)
Liabilities
Current liabilities:
Short-term borrowings		4,953,682			5,551,126			597,444
Current portion of long-term debt		4,290,449			4,321,512			31,063
Accounts payable		2,566,382			2,308,305			(258,077	)
Other payables		936,938			901,679			(35,259	)
Accrued expenses		3,137,827			3,044,969			(92,858	)
Income taxes payable		223,574			305,934			82,360
Other current liabilities		1,210,113			1,358,981			148,868

Total current liabilities		17,318,965			17,792,506			473,541

Long-term liabilities:
Long-term debt		9,911,596			10,491,838			580,242
Accrued pension and severance costs		905,070			919,929			14,859
Deferred income taxes		1,423,726			1,291,030			(132,696	)
Other long-term liabilities		521,876			550,768			28,892

Total long-term liabilities		12,762,268			13,253,565			491,297

Total liabilities		30,081,233			31,046,071			964,838

Mezzanine equity
Model AA Class Shares, no par value, authorized: 150,000,000 shares at March 31, 2017 and December 31, 2017 issued: 47,100,000 shares at March 31, 2017 and December 31, 2017		485,877			488,902			3,025

Shareholders’ equity
Toyota Motor Corporation shareholders’ equity:
Common stock, no par value, authorized: 10,000,000,000 shares at March 31, 2017 and December 31, 2017 issued: 3,262,997,492 shares at March 31, 2017 and December 31, 2017		397,050			397,050			—
Additional paid-in capital		484,013			487,954			3,941
Retained earnings		17,601,070			18,984,330			1,383,260
Accumulated other comprehensive income (loss)		640,922			970,779			329,857
Treasury stock, at cost, 288,274,636 shares at March 31, 2017 and 324,695,986 shares at December 31, 2017		(1,608,243	)		(1,843,625	)		(235,382	)

Total Toyota Motor Corporation shareholders’ equity		17,514,812			18,996,488			1,481,676

Noncontrolling interests		668,264			685,001			16,737

Total shareholders’ equity		18,183,076			19,681,489			1,498,413

Commitments and contingencies

Total liabilities, mezzanine equity and shareholders’ equity		48,750,186			51,216,462			2,466,276

Note:

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

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

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

First nine months ended December 31

Consolidated Statements of Income


	(Yen in millions)
	FY2017 first nine months (Nine months ended December 31, 2016)			FY2018 first nine months (Nine months ended December 31, 2017)			Increase (Decrease)
Net revenues:
Sales of products		18,833,706			20,335,530			1,501,824
Financing operations		1,321,014			1,461,444			140,430

Total net revenues		20,154,720			21,796,974			1,642,254

Costs and expenses:
Cost of products sold		15,693,468			16,859,814			1,166,346
Cost of financing operations		864,850			954,418			89,568
Selling, general and administrative		2,040,951			2,212,556			171,605

Total costs and expenses		18,599,269			20,026,788			1,427,519

Operating income		1,555,451			1,770,186			214,735

Other income (expense):
Interest and dividend income		129,644			148,661			19,017
Interest expense		(19,588	)		(20,049	)		(461	)
Foreign exchange gain, net		42,536			73,755			31,219
Other income (loss), net		56,029			30,560			(25,469	)

Total other income (expense)		208,621			232,927			24,306

Income before income taxes and equity in earnings of affiliated companies		1,764,072			2,003,113			239,041

Provision for income taxes		525,244			278,309			(246,935	)
Equity in earnings of affiliated companies		258,002			358,851			100,849

Net income		1,496,830			2,083,655			586,825

Less - Net income attributable to noncontrolling interests		(64,126	)		(70,478	)		(6,352	)

Net income attributable to Toyota Motor Corporation		1,432,704			2,013,177			580,473



Note: Net income attributable to common shareholders for the first nine months ended December 31, 2017 and 2016 is 2,003,958 million yen and 1,425,357 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 9,219 million yen and 7,347 million yen, respectively, from Net income attributable to Toyota Motor Corporation.



	(Yen)
Net income attributable to Toyota Motor Corporation per common share
Basic		472.31	677.95	205.64
Diluted		467.35	670.31	202.96

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

Consolidated Statements of Comprehensive Income


	(Yen in millions)
	FY2017 first nine months (Nine months ended December 31, 2016)			FY2018 first nine months (Nine months ended December 31, 2017)			Increase (Decrease)
Net income		1,496,830			2,083,655			586,825
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		9,033			123,885			114,852
Unrealized gains (losses) on securities		94,912			213,341			118,429
Pension liability adjustments		14,890			7,202			(7,688	)

Total other comprehensive income (loss)		118,835			344,428			225,593

Comprehensive income		1,615,665			2,428,083			812,418

Less - Comprehensive income attributable to noncontrolling interests		(69,935	)		(85,049	)		(15,114	)

Comprehensive income attributable to Toyota Motor Corporation		1,545,730			2,343,034			797,304

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

Third quarter for the three months ended December 31

Consolidated Statements of Income


	(Yen in millions)
	FY2017 third quarter (Three months ended December 31, 2016)			FY2018 third quarter (Three months ended December 31, 2017)			Increase (Decrease)
Net revenues:
Sales of products		6,617,000			7,101,556			484,556
Financing operations		467,187			504,211			37,024

Total net revenues		7,084,187			7,605,767			521,580

Costs and expenses:
Cost of products sold		5,636,630			5,869,991			233,361
Cost of financing operations		331,037			328,159			(2,878	)
Selling, general and administrative		677,934			733,972			56,038

Total costs and expenses		6,645,601			6,932,122			286,521

Operating income		438,586			673,645			235,059

Other income (expense):
Interest and dividend income		49,890			55,899			6,009
Interest expense		(8,475	)		(6,508	)		1,967
Foreign exchange gain, net		70,443			19,936			(50,507	)
Other income (loss), net		37,094			7,968			(29,126	)

Total other income (expense)		148,952			77,295			(71,657	)

Income before income taxes and equity in earnings of affiliated companies		587,538			750,940			163,402

Provision for income taxes		170,320			(95,938	)		(266,258	)
Equity in earnings of affiliated companies		89,607			123,808			34,201

Net income		506,825			970,686			463,861

Less - Net income attributable to noncontrolling interests		(20,294	)		(28,837	)		(8,543	)

Net income attributable to Toyota Motor Corporation		486,531			941,849			455,318

Note: Net income attributable to common shareholders for the third quarter ended December 31, 2017 and 2016 is 938,776 million yen and 484,082 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 3,073 million yen and 2,449 million yen, respectively, from Net income attributable to Toyota Motor Corporation.



	(Yen)
Net income attributable to Toyota Motor Corporation per common share
Basic		161.26	319.01	157.75
Diluted		159.54	314.99	155.45

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

Consolidated Statements of Comprehensive Income


	(Yen in millions)
	FY2017 third quarter (Three months ended December 31, 2016)			FY2018 third quarter (Three months ended December 31, 2017)			Increase (Decrease)
Net income		506,825			970,686			463,861
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		563,916			47,759			(516,157	)
Unrealized gains (losses) on securities		286,339			39,293			(247,046	)
Pension liability adjustments		15,604			3,205			(12,399	)

Total other comprehensive income (loss)		865,859			90,257			(775,602	)

Comprehensive income		1,372,684			1,060,943			(311,741	)

Less - Comprehensive income attributable to noncontrolling interests		(61,567	)		(36,559	)		25,008

Comprehensive income attributable to Toyota Motor Corporation		1,311,117			1,024,384			(286,733	)

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

(3) Consolidated Statements of Cash Flows


	(Yen in millions)
	FY2017 first nine months (Nine months ended December 31, 2016)			FY2018 first nine months (Nine months ended December 31, 2017)
Cash flows from operating activities:
Net income		1,496,830			2,083,655
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation		1,174,743			1,280,923
Provision for doubtful accounts and credit losses		66,522			57,317
Pension and severance costs, less payments		28,370			10,990
Losses on disposal of fixed assets		20,493			29,293
Unrealized losses on available-for-sale securities, net		5,885			389
Deferred income taxes		33,654			(200,218	)
Equity in earnings of affiliated companies		(258,002	)		(358,851	)
Changes in operating assets and liabilities, and other		(407,207	)		(59,617	)

Net cash provided by operating activities		2,161,288			2,843,881

Cash flows from investing activities:
Additions to finance receivables		(10,055,887	)		(11,310,609	)
Collection of and proceeds from sales of finance receivables		9,491,446			10,494,113
Additions to fixed assets excluding equipment leased to others		(860,918	)		(871,349	)
Additions to equipment leased to others		(1,749,248	)		(1,750,068	)
Proceeds from sales of fixed assets excluding equipment leased to others		25,175			46,658
Proceeds from sales of equipment leased to others		917,723			889,071
Purchases of marketable securities and security investments		(1,809,606	)		(2,190,010	)
Proceeds from sales of and maturity of marketable securities and security investments		1,400,215			1,927,388
Changes in investments and other assets, and other		481,892			(144,938	)

Net cash used in investing activities		(2,159,208	)		(2,909,744	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		3,218,047			3,547,901
Payments of long-term debt		(2,844,726	)		(3,315,773	)
Increase in short-term borrowings		560,094			477,968
Dividends paid to Toyota Motor Corporation class shareholders		(3,697	)		(6,194	)
Dividends paid to Toyota Motor Corporation common shareholders		(634,476	)		(620,698	)
Dividends paid to noncontrolling interests		(62,297	)		(63,727	)
Reissuance (repurchase) of treasury stock, and other		(610,112	)		(233,260	)

Net cash used in financing activities		(377,167	)		(213,783	)

Effect of exchange rate changes on cash and cash equivalents		(13,555	)		31,232

Net decrease in cash and cash equivalents		(388,642	)		(248,414	)

Cash and cash equivalents at beginning of period		2,939,428			2,995,075

Cash and cash equivalents at end of period		2,550,786			2,746,661


Note:		In the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, bank deposits that can be withdrawn at any time and short-term investments that can be converted into cash at any time and carry minimal risk of change in value.

TOYOTA MOTOR CORPORATION FY2018 Third Quarter Financial Summary

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

(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 nine months 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

In July 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance to simplify the measurement of inventory. The parent company and its consolidated subsidiaries (“Toyota”) adopted this guidance on April 1, 2017. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements.

In March 2016, the FASB issued updated guidance for effect of derivative contract novations on existing hedge accounting relationships. This guidance clarifies that a change in the counterparty to a designated derivative hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. Toyota adopted this guidance on April 1, 2017. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements.

In March 2016, the FASB issued updated guidance for contingent put and call options in debt instruments. This guidance clarifies whether embedded contingent put and call options are clearly and closely related to the debt host when bifurcating embedded derivatives. Toyota adopted this guidance on April 1, 2017. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements.

In October 2016, the FASB issued updated guidance for consolidation. Under this guidance, a reporting entity would evaluate its indirect economic interest in a variable interest entity held through a related party under common control on a proportionate basis. Toyota adopted this guidance on April 1, 2017. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements.

Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated)

< U.S. GAAP >


	FY2017																		FY2018												FY2018
	1Q (2016/4-6)			2Q (2016/7-9)			3Q (2016/10-12)			9 months (2016/4-12)			4Q (2017/1-3)			12 months (’16/4-’17/3)			1Q (2017/4-6)			2Q (2017/7-9)			3Q (2017/10-12)			9 months (2017/4-12)			Forecast 12 months (’17/4-’18/3)
Vehicle Production (thousands of units)		2,149			2,240			2,240			6,629			2,347			8,975			2,216			2,176			2,266			6,658			—
(Japan) – including Daihatsu & Hino		934			1,059			1,013			3,006			1,104			4,109			1,023			1,039			1,100			3,162			—
[Daihatsu & Hino]		[194	]		[215	]		[236	]		[645	]		[277	]		[921	]		[266	]		[260	]		[273	]		[799	]		—
(Overseas) – including Daihatsu & Hino		1,215			1,181			1,227			3,623			1,243			4,866			1,193			1,137			1,166			3,496			—
[Daihatsu & Hino]		[86	]		[95	]		[114	]		[295	]		[105	]		[400	]		[92	]		[93	]		[90	]		[275	]		—
North America		527			508			494			1,529			534			2,063			509			438			459			1,406			—
Europe		144			135			175			454			183			637			176			152			178			506			—
Asia		420			409			434			1,263			411			1,674			383			406			413			1,202			—
Central and South America		69			69			76			214			68			282			79			86			90			254			—
Oceania		21			27			22			69			19			88			20			23			0			43			—
Africa		34			33			26			94			28			122			26			32			26			85			—
Vehicle Sales (thousands of units)		2,172			2,191			2,280			6,643			2,327			8,971			2,215			2,175			2,289			6,678			8,950
(Japan) – including Daihatsu & Hino		511			567			534			1,613			661			2,274			544			543			552			1,639			2,250
[Daihatsu & Hino]		[132	]		[146	]		[150	]		[429	]		[195	]		[623	]		[164	]		[162	]		[158	]		[484	]		[680	]
(Overseas) – including Daihatsu & Hino		1,661			1,624			1,746			5,030			1,666			6,697			1,671			1,632			1,737			5,039			6,700
[Daihatsu & Hino]		[72	]		[70	]		[82	]		[223	]		[78	]		[302	]		[71	]		[75	]		[79	]		[224	]		[290	]
North America		715			684			745			2,145			692			2,837			723			672			735			2,132			2,810
Europe		222			212			233			668			257			925			240			229			237			706			960
Asia		384			381			428			1,192			395			1,588			363			382			404			1,148			1,550
Central and South America		101			110			103			313			96			409			108			109			118			335			440
Oceania		64			65			66			194			66			260			74			70			71			215			280
Africa		43			47			44			134			46			180			42			46			46			134			190
Middle East		130			124			125			379			113			491			119			122			123			363			470
Other		2			1			2			5			1			7			2			2			3			6			—
Total Retail Unit Sales (thousands of units) [Toyota, Daihatsu and Hino]		2,529			2,538			2,645			7,712			2,539			10,251			2,590			2,626			2,631			7,847			10,300
Housing Sales (units)		1,185			1,611			1,282			4,078			6,243			10,321			2,312			5,399			2,699			10,410			16,300

Supplemental 1

Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated)

< U.S. GAAP >


	FY2017																		FY2018												FY2018
	1Q (2016/4-6)			2Q (2016/7-9)			3Q (2016/10-12)			9 months (2016/4-12)			4Q (2017/1-3)			12 months (’16/4-’17/3)			1Q (2017/4-6)			2Q (2017/7-9)			3Q (2017/10-12)			9 months (2017/4-12)			Forecast 12 months (’17/4-’18/3)
Foreign Exchange Rates
Yen to US Dollar Rate		108			102			109			107			114			108			111			111			113			112			as premise: 111
Yen to Euro Rate		122			114			118			118			121			119			122			130			133			129			as premise: 129
Market Share (Japan)
Toyota (excluding Mini-Vehicles) (%)		49.7			49.3			47.9			48.9			45.3			47.8			49.3			45.1			50.0			48.1			approximately: 47.0
Toyota, Daihatsu and Hino (including Mini-Vehicles) (%)		47.0			46.1			45.3			46.1			42.6			45.0			46.2			43.3			46.8			45.4			—
Number of Employees		354,974			355,264			357,072			357,072			364,445			364,445			371,888			371,286			368,883			368,883	^(Note 1)		—
Net Revenues (billions of yen)		6,589.1			6,481.4			7,084.1			20,154.7			7,442.4			27,597.1			7,047.6			7,143.6			7,605.7			21,796.9			29,000.0
Geographic Information
Japan		3,361.4			3,619.0			3,772.4			10,752.9			4,077.9			14,830.8			3,686.3			3,881.8			4,173.1			11,741.3			—
North America		2,534.5			2,341.8			2,712.2			7,588.6			2,650.4			10,239.0			2,661.4			2,567.7			2,799.8			8,029.0			—
Europe		621.8			604.0			675.2			1,901.1			779.8			2,681.0			761.5			758.2			792.2			2,312.0			—
Asia		1,182.6			1,118.9			1,261.2			3,562.7			1,257.0			4,819.8			1,196.7			1,287.6			1,341.5			3,825.9			—
Other		521.5			525.0			559.9			1,606.5			554.5			2,161.0			612.4			625.4			616.2			1,854.0			—
Elimination		-1,632.8			-1,727.5			-1,896.9			-5,257.3			-1,877.3			-7,134.7			-1,870.8			-1,977.3			-2,117.1			-5,965.4			—
Business Segment
Automotive		6,029.0			5,908.9			6,469.5			18,407.5			6,674.2			25,081.8			6,368.6			6,368.2			6,862.8			19,599.7			—
Financial Services		438.9			432.0			476.0			1,346.9			476.6			1,823.6			503.7			493.8			512.5			1,510.1			—
All Other		249.0			283.8			276.0			808.9			512.1			1,321.0			337.9			430.8			381.0			1,149.9			—
Elimination		-127.8			-143.4			-137.4			-408.7			-220.5			-629.3			-162.8			-149.2			-150.7			-462.8			—
Operating Income (billions of yen)		642.2			474.6			438.5			1,555.4			438.9			1,994.3			574.2			522.2			673.6			1,770.1			2,200.0
(Operating Income Ratio) (%)		(9.7	)		(7.3	)		(6.2	)		(7.7	)		(5.9	)		(7.2	)		(8.1	)		(7.3	)		(8.9	)		(8.1	)		(7.6	)
Geographic Information
Japan		290.3			194.3			209.3			694.0			508.2			1,202.2			319.2			321.3			470.6			1,111.1			—
North America		171.4			139.8			70.6			381.9			-70.7			311.1			89.2			55.3			33.1			177.7			—
Europe		9.0			25.5			18.1			52.6			-64.9			-12.2			20.3			17.4			23.3			61.1			—
Asia		127.4			95.3			124.6			347.4			87.7			435.1			104.3			109.8			123.6			337.8			—
Other		27.3			25.5			24.1			77.0			-18.3			58.6			38.6			31.6			33.0			103.3			—
Elimination		16.6			-5.9			-8.3			2.3			-3.0			-0.6			2.4			-13.4			-10.1			-21.1			—
Business Segment
Automotive		543.4			393.9			382.7			1,320.1			372.8			1,692.9			489.3			423.1			569.0			1,481.5			—
Financial Services		90.2			61.9			42.6			194.8			27.5			222.4			75.3			69.4			82.6			227.3			—
All Other		10.3			16.9			16.5			43.7			37.5			81.3			13.6			22.8			24.7			61.2			—
Elimination		-1.7			1.8			-3.3			-3.3			0.9			-2.3			-4.0			6.8			-2.7			0.0			—
Income before Income Taxes (billions of yen)		677.0			499.4			587.5			1,764.0			429.7			2,193.8			679.3			572.8			750.9			2,003.1			2,450.0
(Income before Income Taxes Ratio) (%)		(10.3	)		(7.7	)		(8.3	)		(8.8	)		(5.8	)		(7.9	)		(9.6	)		(8.0	)		(9.9	)		(9.2	)		(8.4	)
Equity in Earnings of Affiliated Companies (billions of yen)		90.0			78.3			89.6			258.0			104.0			362.0			137.8			97.2			123.8			358.8			440.0
Net Income (billions of yen)		552.4			393.7			486.5			1,432.7			398.4			1,831.1			613.0			458.2			941.8			2,013.1			2,400.0	^{(Note 2)}
(Net Income Ratio) (%)		(8.4	)		(6.1	)		(6.9	)		(7.1	)		(5.4	)		(6.6	)		(8.7	)		(6.4	)		(12.4	)		(9.2	)		(8.3	)
Dividends
Common Shares
Cash Dividends (billions of yen)		—			300.3			—			300.3			327.2			627.5			—			293.4			—			293.4	^(Note 3)		—
Cash Dividends per Share (yen)		—			100			—			100			110			210			—			100			—			100			—
Payout Ratio (%)		—			32.1			—			—			37.3			34.6			—			27.8			—			—			—
Model AA Class Shares
Cash Dividends (billions of yen)		—			2.4			—			2.4			2.4			4.9			—			3.7			—			3.7	^(Note 3)		—
Cash Dividends per Share (yen)		—			52.5			—			52.5			52.5			105			—			79			—			79			—
Value of Shares Repurchased (billions of yen) [actual purchase]		147.7			352.2			104.7			604.7			95.1			699.9			—			249.9			34.9			284.9	^(Note 4)		—
Value of Shares Repurchased (billions of yen) [shareholder return]		—			199.9			—			—			249.9			449.9			—			250.0 (maximum	)		—			—	^(Note 4) ^(Note 5)		—
Number of Shares Canceled (thousands)		—			—			75,000			75,000			—			75,000			—			—			—			—	^(Note 6)		—
Number of Outstanding Common Shares (thousands)		3,337,997			3,337,997			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			47,100			—

Supplemental 2

Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated)

< U.S. GAAP >


	FY2017												FY2018									FY2018
	1Q (2016/4-6)		2Q (2016/7-9)		3Q (2016/10-12)		9 months (2016/4-12)		4Q (2017/1-3)		12 months (’16/4-’17/3)		1Q (2017/4-6)		2Q (2017/7-9)		3Q (2017/10-12)		9 months (2017/4-12)			Forecast 12 months (’17/4-’18/3)
R&D Expenses (billions of yen)		274.1		258.2		261.5		793.9		243.5		1,037.5		278.6		272.0		264.3		815.0			1,060.0
Depreciation Expenses (billions of yen)		205.8		215.1		225.3		646.3		246.9		893.2		212.9		242.3		248.5		703.8			950.0	^(Note 7)
Geographic Information
Japan		111.9		120.2		125.4		357.6		139.6		497.2		108.4		132.6		136.4		377.5			520.0
North America		42.0		43.1		44.0		129.2		49.1		178.4		45.5		48.7		51.8		146.1			190.0
Europe		11.1		11.7		13.3		36.3		14.0		50.3		15.4		16.3		15.4		47.2			70.0
Asia		32.2		31.5		33.1		96.9		34.8		131.7		34.1		35.3		35.1		104.6			130.0
Other		8.4		8.3		9.3		26.1		9.3		35.4		9.2		9.2		9.6		28.1			40.0
Capital Expenditures (billions of yen)		253.3		257.8		268.2		779.4		432.3		1,211.8		205.7		285.1		299.4		790.4			1,280.0	^(Note 7)
Geographic Information
Japan		135.1		137.3		133.7		406.2		233.9		640.2		112.5		152.1		156.9		421.6			680.0
North America		70.1		85.3		84.4		239.9		134.5		374.5		65.3		70.9		83.5		219.7			330.0
Europe		10.8		12.9		12.8		36.6		22.3		58.9		4.8		15.0		16.1		36.1			60.0
Asia		29.1		14.4		29.2		72.8		30.2		103.1		13.3		29.3		21.1		63.8			140.0
Other		8.0		7.7		7.9		23.7		11.2		34.9		9.6		17.6		21.7		48.9			70.0
Total Liquid Assets (billions of yen)		8,700.2		8,469.6		8,819.3		8,819.3		9,199.5		9,199.5		9,364.0		9,306.7		9,309.1		9,309.1	^(Note 8)		—
Total Assets (billions of yen)		44,524.3		43,776.1		48,111.4		48,111.4		48,750.1		48,750.1		49,456.0		50,253.0		51,216.4		51,216.4			—
Toyota Motor Corporation Shareholders’ Equity (billions of yen)		16,127.8		16,391.9		17,293.2		17,293.2		17,514.8		17,514.8		17,874.2		18,253.4		18,996.4		18,996.4			—
Return on Equity (%)		13.4		9.6		11.5		11.2		9.1		10.6		13.8		10.1		20.2		14.6			—
Return on Asset (%)		4.8		3.6		4.2		4.0		3.3		3.8		5.0		3.7		7.4		5.4			—
Number of Consolidated Subsidiaries (including Variable Interest Entities)		—		—		—		—		—		597		—		—		—		—			—
No. of Affil. Accounted for Under the Equity Method		—		—		—		—		—		54		—		—		—		—			—


Analysis of Consolidated Net Income for FY2018 (billions of yen, approximately)	3Q (2017/10-12)	9 months (2017/4-12)	^(Note 2)
Effects of Marketing Activities	5.0	-155.0
Effects of Changes in Exchange Rates^ø1	195.0	295.0
Cost Reduction Efforts	35.0	135.0
From Engineering	25.0	105.0
From Manufacturing and Logistics	10.0	30.0
Increases in Expenses, etc.	-35.0	-85.0
Other	35.0	24.7
(Changes in Operating Income)	235.0	214.7
Non-operating Income	-71.6	24.3
Equity in Earnings of Affiliated Companies	34.2	100.8
Income Taxes, Net Income Attributable to Noncontrolling Interests^ø2	257.7	240.5
(Changes in Net Income)^ø2	455.3	580.4	^(Note 2)

ø1	Translational impacts concerning operating income of overseas subsidiaries and concerning provisions in foreign currencies are included in “Effects of Changes in Exchange Rates”.

ø2

Net income attributable to Toyota Motor Corporation for the third quarter and first nine months ended December 31, 2017 include reduction in income taxes of 291.9 billion yen, which is mainly attributable to the reversal of deferred tax assets and liabilities resulting from the Tax Cuts and Jobs Act of 2017 of the United States.

Supplemental 3

Supplemental Material for Financial Results for FY2018 Third Quarter (Unconsolidated)

< Japan GAAP >


	FY2017																		FY2018												FY2018
	1Q (2016/4-6)			2Q (2016/7-9)			3Q (2016/10-12)			9 months (2016/4-12)			4Q (2017/1-3)			12 months (’16/4-’17/3)			1Q (2017/4-6)			2Q (2017/7-9)			3Q (2017/10-12)			9 months (2017/4-12)			Forecast 12 months (’17/4-’18/3)
Toyota & Lexus brand
Domestic Vehicle Production (thousands of units)		740			844			777			2,361			827			3,188			757			779			827			2,363			3,200
Overseas Vehicle Production (thousands of units)		1,494			1,422			1,477			4,393			1,498			5,891			1,464			1,420			1,435			4,319			5,750
Domestic Vehicle Retail Sales (thousands of units)		366			413			382			1,161			475			1,636			390			383			384			1,157			1,580
Exports Vehicle Sales (thousands of units)		393			456			462			1,311			415			1,726			440			457			504			1,401			1,850
North America		160			175			201			536			170			706			190			193			220			603			780
Europe		60			73			65			198			66			264			57			63			57			177			250
Asia		59			77			74			210			57			267			72			77			97			246			320
Central and South America		10			14			11			35			14			49			12			12			14			38			50
Oceania		36			43			35			114			40			154			40			42			38			120			170
Africa		13			15			14			42			11			53			14			15			13			42			50
Middle East		54			57			61			172			55			227			53			54			63			170			230
Other		1			2			1			4			2			6			2			1			2			5			—
Net Revenues (billions of yen)		2,644.8			2,854.8			2,978.2			8,478.0			2,998.3			11,476.3			2,870.2			2,918.1			3,259.8			9,048.1			11,900.0
Domestic		939.6			1,036.7			973.2			2,949.6			1,135.9			4,085.5			962.8			946.5			1,067.5			2,976.9			—
Exports		1,705.2			1,818.0			2,004.9			5,528.3			1,862.3			7,390.7			1,907.3			1,971.5			2,192.2			6,071.1			—
Operating Income (billions of yen)		243.6			116.3			118.3			478.3			358.8			837.2			222.4			215.5			343.3			781.4			1,100.0
(Operating Income Ratio) (%)		(9.2	)		(4.1	)		(4.0	)		(5.6	)		(12.0	)		(7.3	)		(7.8	)		(7.4	)		(10.5	)		(8.6	)		(9.2	)
Ordinary Income (billions of yen)		479.2			383.3			552.8			1,415.4			386.3			1,801.7			570.7			513.2			674.4			1,758.4			2,080.0
(Ordinary Income Ratio) (%)		(18.1	)		(13.4	)		(18.6	)		(16.7	)		(12.9	)		(15.7	)		(19.9	)		(17.6	)		(20.7	)		(19.4	)		(17.5	)
Net Income (billions of yen)		406.8			331.1			479.1			1,217.1			312.7			1,529.9			488.1			437.4			585.7			1,511.3			1,750.0
(Net Income Ratio) (%)		(15.4	)		(11.6	)		(16.1	)		(14.4	)		(10.4	)		(13.3	)		(17.0	)		(15.0	)		(18.0	)		(16.7	)		(14.7	)
R&D Expenses (billions of yen)		237.4			226.4			232.9			696.8			212.8			909.6			241.6			237.3			230.3			709.3			920.0
Depreciation Expenses (billions of yen)		57.5			55.6			50.4			163.5			49.0			212.6			58.4			58.0			56.0			172.5			230.0
Capital Expenditures (billions of yen)		64.9			56.8			63.1			184.9			109.6			294.5			54.0			57.6			60.0			171.6			280.0


Analysis of Unconsolidated Net Income for FY2018 (billions of yen, approximately)		3Q (2017/10-12)		9 months (2017/4-12)
Effects of Marketing Activities			25.0		-30.0
Effects of Changes in Exchange Rates^ø³			185.0		270.0
Cost Reduction Efforts			30.0		100.0
	From Engineering		25.0		90.0
	From Manufacturing and Logistics		5.0		10.0
Increases in Expenses, etc.			-15.0		-35.0
Other			0.0		-1.9
(Changes in Operating Income)			225.0		303.1
Non-operating Income			-103.5		39.9
Income Taxes, etc.			15.0		48.8
(Changes in Net Income)			106.5		294.2

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, 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.

(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)

Number of common shares canceled

(Note 7)

Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease

(Note 8)

Excludes financial subsidiaries

ø3	Translational impacts concerning provisions in foreign currencies are included in “Effects of Changes in Exchange Rates”.

Supplemental 4

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