EX-99.2 3 d791284dex992.htm UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited Condensed Consolidated Financial Statements

TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

Financial results

Consolidated vehicle unit sales in Japan and overseas increased by 804 thousand units, or 12.4%, to 7,295 thousand units in FY2024 first nine months (the first nine months ended December 31, 2023) compared with FY2023 first nine months (the first nine months ended December 31, 2022). Vehicle unit sales in Japan increased by 228 thousand units, or 16.3%, to 1,630 thousand units in FY2024 first nine months compared with FY2023 first nine months. Overseas vehicle unit sales increased by 576 thousand units, or 11.3%, to 5,665 thousand units in FY2024 first nine months compared with FY2023 first nine months.

The results of operations for FY2024 first nine months were as follows:

 

Sales revenues

   ¥ 34,022.7 billion    

(an increase of ¥6,558.6 billion or 23.9%

compared with FY2023 first nine months)

Operating income

   ¥ 4,240.2 billion    

(an increase of ¥2,142.1 billion or 102.1%

compared with FY2023 first nine months)

Income before income taxes

   ¥ 5,357.0 billion    

(an increase of ¥2,487.7 billion or 86.7%

compared with FY2023 first nine months)

Net income attributable to Toyota Motor Corporation

   ¥ 3,947.2 billion    

(an increase of ¥2,048.2 billion or 107.9%

compared with FY2023 first nine months)

The changes in operating income were as follows:

 

Marketing efforts

   an increase of ¥1,990.0 billion

Effects of changes in exchange rates

   an increase of ¥380.0 billion

Cost reduction efforts

   a decrease of ¥65.0 billion

Increase or decrease in expenses and expense reduction efforts

   a decrease of ¥300.0 billion

Other

   an increase of ¥137.1 billion

 

1

 

 


TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

Segment operating results

 

(i)

Automotive:

Sales revenues for the automotive operations increased by ¥6,230.5 billion, or 24.9%, to ¥31,231.0 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥1,998.1 billion, or 116.0%, to ¥3,719.9 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts.

 

(ii)

Financial services:

Sales revenues for the financial services operations increased by ¥445.5 billion, or 21.2%, to ¥2,543.7 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥92.9 billion, or 28.7%, to ¥416.9 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to decrease in valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States.

 

(iii)

All other:

Sales revenues for all other businesses increased by ¥137.4 billion, or 16.3%, to ¥983.1 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥66.8 billion, or 116.8%, to ¥123.9 billion in FY2024 first nine months compared with FY2023 first nine months.

 

2

 

 


TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

Geographic information

 

(i)

Japan:

Sales revenues in Japan increased by ¥3,365.0 billion, or 26.3%, to ¥16,137.2 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥1,143.8 billion, or 74.2%, to ¥2,685.1 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts and the effects of changes in exchange rates.

 

(ii)

North America:

Sales revenues in North America increased by ¥3,091.9 billion, or 29.6%, to ¥13,554.3 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥605.5 billion, to ¥516.5 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts and cost reduction efforts.

 

(iii)

Europe:

Sales revenues in Europe increased by ¥1,111.1 billion, or 36.2%, to ¥4,179.2 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥268.8 billion, or 1,608.4%, to ¥285.5 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts and the effect of recording a ¥104.0 billion loss, ¥95.2 billion of which was related to Europe, during FY2023 first nine months from terminating vehicle production in Russia.

 

(iv)

Asia:

Sales revenues in Asia increased by ¥549.5 billion, or 9.0%, to ¥6,682.5 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥89.2 billion, or 15.9%, to ¥649.6 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts and cost reduction efforts.

 

(v)

Other (Central and South America, Oceania, Africa and the Middle East):

Sales revenues in other regions increased by ¥520.3 billion, or 19.7%, to ¥3,163.7 billion in FY2024 first nine months compared with FY2023 first nine months, and operating income increased by ¥22.9 billion, or 13.0%, to ¥198.9 billion in FY2024 first nine months compared with FY2023 first nine months. The increase in operating income was mainly due to marketing efforts.

 

3

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

            Yen in millions  
     Notes      March 31,
2023
    December 31,
2023
 

Assets

                           

Current assets

       

Cash and cash equivalents

        7,516,966       7,583,154  

Trade accounts and other receivables

        3,586,130       3,818,470  

Receivables related to financial services

        8,279,806       10,426,656  

Other financial assets

        1,715,675       4,650,916  

Inventories

        4,255,614       4,294,143  

Income tax receivable

        218,704       133,032  

Other current assets

        886,885       948,347  
     

 

 

   

 

 

 

Total current assets

        26,459,781       31,854,717  
     

 

 

   

 

 

 

Non-current assets

       

Investments accounted for using the equity method

        5,227,345       5,641,846  

Receivables related to financial services

        16,491,045       19,124,065  

Other financial assets

        10,556,431       10,923,018  

Property, plant and equipment

       

Land

        1,426,370       1,433,969  

Buildings

        5,464,811       5,652,447  

Machinery and equipment

        14,796,619       15,681,350  

Vehicles and equipment on operating leases

        6,774,427       7,201,656  

Construction in progress

        846,866       950,517  
     

 

 

   

 

 

 

Total property, plant and equipment, at cost

        29,309,093       30,919,939  
     

 

 

   

 

 

 

Less - Accumulated depreciation and impairment losses

        (16,675,119     (17,495,241
     

 

 

   

 

 

 

Total property, plant and equipment, net

        12,633,974       13,424,699  
     

 

 

   

 

 

 

Right of use assets

        491,368       498,026  

Intangible assets

        1,249,122       1,321,958  

Deferred tax assets

        387,427       460,503  

Other non-current assets

        806,687       983,322  
     

 

 

   

 

 

 

Total non-current assets

        47,843,399       52,377,437  
     

 

 

   

 

 

 

Total assets

        74,303,180       84,232,154  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

4

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

            Yen in millions  
     Notes      March 31,
2023
    December 31,
2023
 

Liabilities

                           

Current liabilities

       

Trade accounts and other payables

        4,986,309       4,909,386  

Short-term and current portion of long-term debt

        12,305,639       14,703,717  

Accrued expenses

        1,552,345       1,607,868  

Other financial liabilities

        1,392,397       1,525,810  

Income taxes payable

        404,606       723,123  

Liabilities for quality assurance

        1,686,357       1,806,249  

Other current liabilities

        1,632,063       1,796,656  
     

 

 

   

 

 

 

Total current liabilities

        23,959,715       27,072,808  
     

 

 

   

 

 

 

Non-current liabilities

       

Long-term debt

        17,074,634       19,256,186  

Other financial liabilities

        533,710       480,470  

Retirement benefit liabilities

        1,065,508       1,115,974  

Deferred tax liabilities

        1,802,346       2,071,268  

Other non-current liabilities

        603,052       711,481  
     

 

 

   

 

 

 

Total non-current liabilities

        21,079,251       23,635,380  
     

 

 

   

 

 

 

Total liabilities

        45,038,967       50,708,188  
     

 

 

   

 

 

 

Shareholders’ equity

       

Common stock

        397,050       397,050  

Additional paid-in capital

        498,728       494,286  

Retained earnings

        28,343,296       31,726,790  

Other components of equity

        2,836,195       3,871,068  

Treasury stock

        (3,736,562     (3,927,497
     

 

 

   

 

 

 

Total Toyota Motor Corporation shareholders’ equity

        28,338,706       32,561,697  
     

 

 

   

 

 

 

Non-controlling interests

        925,507       962,269  
     

 

 

   

 

 

 

Total shareholders’ equity

        29,264,213       33,523,966  
     

 

 

   

 

 

 

Total liabilities and shareholders’ equity

        74,303,180       84,232,154  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

5

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

            Yen in millions  
     Notes      For the first nine months
ended December 31, 2022
    For the first nine months
ended December 31, 2023
 

Sales revenues

              

Sales of products

     VIII        25,383,850       31,511,767  

Financial services

     VIII        2,080,183       2,510,953  
     

 

 

   

 

 

 

Total sales revenues

     VIII              27,464,033             34,022,720  
     

 

 

   

 

 

 

Costs and expenses

       

Cost of products sold

        21,435,002       25,345,445  

Cost of financial services

        1,280,860       1,559,145  

Selling, general and administrative

        2,650,076       2,877,893  
     

 

 

   

 

 

 

Total costs and expenses

        25,365,938       29,782,483  
     

 

 

   

 

 

 

Operating income

        2,098,095       4,240,238  
     

 

 

   

 

 

 

Share of profit (loss) of investments accounted for using the equity method

        474,716       596,181  

Other finance income

        307,518       544,304  

Other finance costs

        (108,313     (78,752

Foreign exchange gain (loss), net

        128,375       55,334  

Other income (loss), net

        (31,118     (239
     

 

 

   

 

 

 

Income before income taxes

        2,869,274       5,357,065  
     

 

 

   

 

 

 

Income tax expense

        905,153       1,325,441  
     

 

 

   

 

 

 

Net income

        1,964,122       4,031,624  
     

 

 

   

 

 

 

Net income attributable to

       

Toyota Motor Corporation

        1,899,026       3,947,242  

Non-controlling interests

        65,096       84,382  
     

 

 

   

 

 

 

Net income

        1,964,122       4,031,624  
     

 

 

   

 

 

 
            Yen  

Earnings per share attributable to Toyota Motor Corporation

       

Basic and Diluted

     IX        138.78       291.87  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

6

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

            Yen in millions  
     Notes      For the first nine months
ended December 31, 2022
    For the first nine months
ended December 31, 2023
 

Net income

                      1,964,122              4,031,624  

Other comprehensive income, net of tax

       

Items that will not be reclassified to profit (loss)

       

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (29,503     361,529  

Remeasurements of defined benefit plans

        (12,242     (8,170

Share of other comprehensive income of equity method investees

        (109,051     197,931  
     

 

 

   

 

 

 

Total of items that will not be reclassified to profit (loss)

        (150,797     551,290  
     

 

 

   

 

 

 

Items that may be reclassified subsequently to profit (loss)

       

Exchange differences on translating foreign operations

        529,140       603,550  

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (170,000     47,605  

Share of other comprehensive income of equity method investees

        251,886       181,264  
     

 

 

   

 

 

 

Total of items that may be reclassified subsequently to profit (loss)

        611,026       832,420  
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        460,229       1,383,710  
     

 

 

   

 

 

 

Comprehensive income

        2,424,351       5,415,334  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to

       

Toyota Motor Corporation

        2,353,007       5,298,565  

Non-controlling interests

        71,344       116,769  
     

 

 

   

 

 

 

Comprehensive income

        2,424,351       5,415,334  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

7

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

            Yen in millions  
     Notes      For the third quarter
ended December 31, 2022
    For the third quarter
ended December 31, 2023
 

Sales revenues

              

Sales of products

     VIII        9,019,920       11,128,325  

Financial services

     VIII        734,765       912,778  
     

 

 

   

 

 

 

Total sales revenues

     VIII               9,754,685             12,041,104  
     

 

 

   

 

 

 

Costs and expenses

       

Cost of products sold

        7,385,754       8,802,750  

Cost of financial services

        435,638       553,063  

Selling, general and administrative

        976,641       1,004,347  
     

 

 

   

 

 

 

Total costs and expenses

        8,798,033       10,360,160  
     

 

 

   

 

 

 

Operating income

        956,652       1,680,944  
     

 

 

   

 

 

 

Share of profit (loss) of investments accounted for using the equity method

        170,093       217,651  

Other finance income

        110,164       206,364  

Other finance costs

        (37,963     (34,452

Foreign exchange gain (loss), net

        (163,080     (244,042

Other income (loss), net

        (868     9,075  
     

 

 

   

 

 

 

Income before income taxes

        1,034,998       1,835,540  
     

 

 

   

 

 

 

Income tax expense

        290,432       451,437  
     

 

 

   

 

 

 

Net income

        744,566       1,384,103  
     

 

 

   

 

 

 

Net income attributable to

       

Toyota Motor Corporation

        727,942       1,357,814  

Non-controlling interests

        16,624       26,289  
     

 

 

   

 

 

 

Net income

        744,566       1,384,103  
     

 

 

   

 

 

 
            Yen  

Earnings per share attributable to Toyota Motor Corporation

       

Basic and Diluted

     IX        53.40       100.62  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

8

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

            Yen in millions  
     Notes      For the third quarter
ended December 31, 2022
    For the third quarter
ended December 31, 2023
 

Net income

                        744,566              1,384,103  

Other comprehensive income, net of tax

       

Items that will not be reclassified to profit (loss)

       

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (55,682     (15,089

Remeasurements of defined benefit plans

        (3,546     (2,969

Share of other comprehensive income of equity method investees

        (28,947     19,116  
     

 

 

   

 

 

 

Total of items that will not be reclassified to profit (loss)

        (88,175     1,058  
     

 

 

   

 

 

 

Items that may be reclassified subsequently to profit (loss)

       

Exchange differences on translating foreign operations

        (714,507     (340,565

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        13,228       111,982  

Share of other comprehensive income of equity method investees

        14,675       13,370  
     

 

 

   

 

 

 

Total of items that may be reclassified subsequently to profit (loss)

        (686,605     (215,213
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        (774,780     (214,155
     

 

 

   

 

 

 

Comprehensive income

        (30,214     1,169,948  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to

       

Toyota Motor Corporation

        (18,411     1,152,843  

Non-controlling interests

        (11,803     17,105  
     

 

 

   

 

 

 

Comprehensive income

        (30,214     1,169,948  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

9

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Changes in Equity

 

For the first nine months ended December 31, 2022

 

          Yen in millions  
    Notes     Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Other
components
of equity
    Treasury
stock
    Toyota Motor
Corporation
shareholders’
equity
    Non-controlling
interests
    Total
shareholders’
equity
 

Balances at April 1, 2022

      397,050       498,575       26,453,126       2,203,254       (3,306,037     26,245,969       908,851       27,154,820  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

                 

Net income

                  1,899,026                   1,899,026       65,096       1,964,122  

Other comprehensive income, net of tax

                        453,981             453,981       6,248       460,229  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

                  1,899,026       453,981             2,353,007       71,344       2,424,351  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners and other

                 

Dividends paid

    VII                   (727,980                 (727,980     (84,573     (812,552

Repurchase of treasury stock

                              (336,577     (336,577           (336,577

Reissuance of treasury stock

            334                   573       907             907  

Equity transactions and other

            499                         499       18,575       19,074  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

            833       (727,980           (336,004     (1,063,151     (65,997     (1,129,148
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reclassification to retained earnings

                  72,019       (72,019                        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at December 31, 2022

      397,050       499,408       27,696,192       2,585,216       (3,642,041     27,535,825       914,198       28,450,023  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For the first nine months ended December 31, 2023

 

          Yen in millions  
    Notes     Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Other
components
of equity
    Treasury
stock
    Toyota Motor
Corporation
shareholders’
equity
    Non-controlling
interests
    Total
shareholders’
equity
 

Balances at April 1, 2023

      397,050       498,728       28,343,296       2,836,195       (3,736,562     28,338,706       925,507       29,264,213  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

                 

Net income

                  3,947,242                   3,947,242       84,382       4,031,624  

Other comprehensive income, net of tax

                        1,351,323             1,351,323       32,387       1,383,710  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

                  3,947,242       1,351,323             5,298,565       116,769       5,415,334  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners and other

                 

Dividends paid

    VII                   (880,197                 (880,197     (89,298     (969,494

Repurchase of treasury stock

                              (191,584     (191,584           (191,584

Reissuance of treasury stock

            263                   649       911             911  

Equity transactions and other

            (4,704                       (4,704     9,290       4,586  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

            (4,442     (880,197           (190,935     (1,075,573     (80,008     (1,155,581
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reclassification to retained earnings

                  316,450       (316,450                        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at December 31, 2023

      397,050       494,286       31,726,790       3,871,068       (3,927,497     32,561,697       962,269       33,523,966  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

10

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Cash Flows

 

 

            Yen in millions  
     Notes      For the first nine months
ended December 31, 2022
    For the first nine months
ended December 31, 2023
 

Cash flows from operating activities

              

Net income

               1,964,122              4,031,624  

Depreciation and amortization

        1,534,759       1,535,393  

Interest income and interest costs related to financial services, net

        (534,217     (564,332

Share of profit (loss) of investments accounted for using the equity method

        (474,716     (596,181

Income tax expense

        905,153       1,325,441  

Changes in operating assets and liabilities, and other

        (1,432,634     (3,340,602

Interest received

        1,082,133       1,620,707  

Dividends received

        459,340       581,452  

Interest paid

        (401,044     (775,664

Income taxes paid, net of refunds

        (1,276,972     (1,031,698
     

 

 

   

 

 

 

Net cash provided by (used in) operating activities

        1,825,923       2,786,141  
     

 

 

   

 

 

 

Cash flows from investing activities

       

Additions to fixed assets excluding equipment leased to others

        (1,095,573     (1,242,206

Additions to equipment leased to others

        (1,406,217     (2,048,034

Proceeds from sales of fixed assets excluding equipment leased to others

        35,211       77,716  

Proceeds from sales of equipment leased to others

        1,261,624       1,445,164  

Additions to intangible assets

        (253,581     (234,748

Additions to public and corporate bonds and stocks

        (1,104,568     (1,926,369

Proceeds from sales of public and corporate bonds and stocks and upon maturity of public and corporate bonds

        941,742       1,783,141  

Other, net

     X        107,768       (2,084,792
     

 

 

   

 

 

 

Net cash provided by (used in) investing activities

        (1,513,593     (4,230,129
     

 

 

   

 

 

 

Cash flows from financing activities

       

Increase (decrease) in short-term debt

        222,629       486,043  

Proceeds from long-term debt

        6,591,101       8,410,408  

Payments of long-term debt

        (6,161,781     (6,112,456

Dividends paid to Toyota Motor Corporation common shareholders

     VII        (727,980     (880,197

Dividends paid to non-controlling interests

        (84,573     (89,298

Reissuance (repurchase) of treasury stock

        (336,577     (191,584

Other, net

              11,544  
     

 

 

   

 

 

 

Net cash provided by (used in) financing activities

        (497,181     1,634,461  
     

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

        93,285       (124,286
     

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

        (91,566     66,188  
     

 

 

   

 

 

 

Cash and cash equivalents at beginning of period

        6,113,655       7,516,966  
     

 

 

   

 

 

 

Cash and cash equivalents at end of period

        6,022,089       7,583,154  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

11

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

I.

Reporting entity

Toyota Motor Corporation (“TMC”) is a limited liability, joint-stock company located in Japan, and TMC’s principal executive offices are registered in Toyota City, Aichi Prefecture. For the first nine months and third quarter ended December 31, 2023, the condensed quarterly consolidated financial statements of the group consist of TMC, its consolidated subsidiaries (collectively, “Toyota”) and their interests in associates and joint ventures.

Toyota and its associates are primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world. In addition, Toyota and its associates provide financing, vehicle leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.

 

II.

Basis of preparation

1. Compliance with international financial reporting standards

Toyota’s condensed quarterly consolidated financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed quarterly consolidated financial statements should be read in conjunction with Toyota’s consolidated financial statements for the fiscal year ended March 31, 2023, since the condensed quarterly consolidated financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

The condensed quarterly consolidated financial statements were approved on February 6, 2024 by the Board of Directors.

2. Basis of measurement

Toyota’s condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value and assets and liabilities associated with defined benefit plans.

3. Functional currency and presentation currency

The condensed quarterly consolidated financial statements are presented in Japanese yen, which is the functional currency of TMC. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated. Amounts may not sum to totals due to rounding.

 

III.

Material accounting policies

Toyota’s condensed quarterly consolidated financial statements are prepared based on the same accounting policies as those applied and described in the consolidated financial statements for the fiscal year ended March 31, 2023.

 

12

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

IV.

Significant accounting judgments and estimates

The preparation of the condensed quarterly consolidated financial statements in conformity with IFRS requires management to make judgments, estimates, and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates were revised and in any future periods affected.

The condensed quarterly consolidated financial statements are prepared based on generally the same judgments and estimations as those applied and described in Toyota’s consolidated financial statements for the fiscal year ended March 31, 2023.

 

13

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

V.

Segment information

1. Outline of reporting segments

The operating segments reported below are the segments of Toyota for which separate financial information is available and for which operating income/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance.

The major portions 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, SUVs, trucks and related parts and accessories. The Financial services segment consists primarily of financing and vehicle leasing operations to assist in the merchandising of Toyota’s products as well as other products. The All other segment includes telecommunications and other businesses.

2. Segment operating results

For the first nine months ended December 31, 2022:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                            

Revenues from external customers

     24,967,263        2,080,183        416,587              27,464,033  

Inter-segment revenues and transfers

     33,248        17,948        429,059        (480,255      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     25,000,512        2,098,131        845,646        (480,255     27,464,033  

Operating expenses

     23,278,719        1,774,134        788,459        (475,375     25,365,938  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     1,721,792        323,996        57,187        (4,880     2,098,095  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the first nine months ended December 31, 2023:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                            

Revenues from external customers

     31,111,157        2,510,953        400,610              34,022,720  

Inter-segment revenues and transfers

     119,929        32,756        582,516        (735,202      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     31,231,087        2,543,709        983,126        (735,202     34,022,720  

Operating expenses

     27,511,158        2,126,771        859,136        (714,583     29,782,483  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     3,719,929        416,938        123,990        (20,619     4,240,238  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

14

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

For the third quarter ended December 31, 2022:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                            

Revenues from external customers

     8,857,703        734,765        162,217              9,754,685  

Inter-segment revenues and transfers

     13,726        6,978        149,990        (170,693      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     8,871,429        741,742        312,207        (170,693     9,754,685  

Operating expenses

     8,052,625        616,683        293,715        (164,991     8,798,033  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     818,803        125,059        18,492        (5,702     956,652  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the third quarter ended December 31, 2023:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                            

Revenues from external customers

     10,979,328        912,778        148,997              12,041,104  

Inter-segment revenues and transfers

     86,451        9,565        208,463        (304,479      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     11,065,779        922,343        357,460        (304,479     12,041,104  

Operating expenses

     9,593,149        750,306        313,274        (296,569     10,360,160  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     1,472,630        172,037        44,187        (7,910     1,680,944  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Accounting policies applied by each segment are in conformity with those of Toyota’s condensed quarterly consolidated financial statements. Transfers between industry segments are made in accordance with terms and conditions in the ordinary course of business.

 

15

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

3. Geographic information

For the first nine months ended December 31, 2022:

 

     Yen in millions  
     Japan      North America     Europe      Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                   

Revenues from external customers

     6,298,816        10,236,949       2,937,082        5,423,302        2,567,885              27,464,033  

Inter-segment revenues and transfers

     6,473,378        225,462       131,001        709,701        75,533        (7,615,076      
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     12,772,194        10,462,411       3,068,084        6,133,003        2,643,418        (7,615,076     27,464,033  

Operating expenses

     11,230,847        10,551,421       3,051,369        5,572,630        2,467,387        (7,507,716     25,365,938  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     1,541,347        (89,010     16,714        560,374        176,031        (107,360     2,098,095  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the first nine months ended December 31, 2023:

 

     Yen in millions  
     Japan      North America     Europe      Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                   

Revenues from external customers

     7,863,326        13,325,538       4,051,171        5,809,168        2,973,517              34,022,720  

Inter-segment revenues and transfers

     8,273,877        228,855       128,101        873,350        190,277        (9,694,460      
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     16,137,203        13,554,393       4,179,271        6,682,518        3,163,794        (9,694,460     34,022,720  

Operating expenses

     13,452,016        13,037,822       3,893,730        6,032,907        2,964,824        (9,598,816     29,782,483  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     2,685,187        516,571        285,542        649,611        198,971        (95,644     4,240,238  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

16

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

For the third quarter ended December 31, 2022:

 

     Yen in millions  
     Japan      North America     Europe      Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                   

Revenues from external customers

     2,325,214        3,517,940       1,117,901        1,924,807        868,823              9,754,685  

Inter-segment revenues and transfers

     2,257,022        70,964       37,797        259,181        38,280        (2,663,244      
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     4,582,236        3,588,903       1,155,699        2,183,988        907,103        (2,663,244     9,754,685  

Operating expenses

     3,898,817        3,606,882       1,093,004        2,015,261        840,989        (2,656,920     8,798,033  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     683,419        (17,979     62,695        168,727        66,114        (6,325     956,652  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the third quarter ended December 31, 2023:

 

     Yen in millions  
     Japan      North America     Europe      Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                   

Revenues from external customers

     2,704,870        4,870,741       1,475,558        2,084,555        905,379              12,041,104  

Inter-segment revenues and transfers

     2,922,023        87,369       45,225        286,778        68,630        (3,410,024      
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     5,626,893        4,958,110       1,520,783        2,371,333        974,009        (3,410,024     12,041,104  

Operating expenses

     4,522,785        4,730,690       1,417,640        2,132,840        964,723        (3,408,519     10,360,160  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     1,104,108        227,420        103,143        238,493        9,286        (1,506     1,680,944  
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

“Other” consists of Central and South America, Oceania, Africa and the Middle East.

The above amounts are aggregated by region based on the location of the country where TMC or consolidated subsidiaries are located. Transfers between geographic areas are made in accordance with terms and conditions in the ordinary course of business.

 

17

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

4. Sales revenues by location of external customers

In addition to the disclosure requirements under IFRS, Toyota discloses this information in order to provide financial statements users with valuable information.

 

           Yen in millions        
     For the first nine months ended December 31,  
     2022      2023  

Japan

     4,583,412        5,701,175  

North America

     10,258,864        13,364,366  

Europe

     2,837,590        3,970,419  

Asia

     5,520,098        5,955,388  

Other

     4,264,068        5,031,372  
  

 

 

    

 

 

 

Total

     27,464,033        34,022,720  
  

 

 

    

 

 

 
     Yen in millions  
     For the third quarter ended December 31,  
     2022      2023  

Japan

     1,680,400        1,925,245  

North America

     3,532,459        4,890,088  

Europe

     1,070,624        1,461,779  

Asia

     1,949,660        2,129,004  

Other

     1,521,543        1,634,987  
  

 

 

    

 

 

 

Total

     9,754,685        12,041,104  
  

 

 

    

 

 

 

“Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.

 

18

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VI.

Fair value measurements

1. Definition of fair value hierarchy

In accordance with IFRS, Toyota classifies fair value measurement into the following three levels based on the observability and significance of the inputs used.

 

Level 1:

 

Quoted prices in active markets for identical assets or liabilities

Level 2:

 

Fair value measurement based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly

Level 3:  

Fair value measurement based on models using unobservable inputs for the assets or liabilities

2. Method of fair value measurement

The fair value of assets and liabilities is determined using relevant market information and appropriate valuation methods.

The methods and assumptions for measuring the fair value of assets and liabilities are as follows:

(1) Cash and cash equivalents -

Cash equivalents include money market funds and other investments with original maturities of three months or less. In the normal course of business, substantially all cash and cash equivalents and time deposits are highly liquid and are carried at amounts which approximate fair value due to their short duration.

(2) Trade accounts and other receivables and Trade accounts and other payables -

These receivables and payables are carried at amounts which approximate fair value due to their short duration.

(3) Receivables related to financial services -

The fair value of receivables related to financial services is estimated by discounting expected cash flows to present value using internal assumptions, including prepayment speeds, expected credit losses and collateral value.

As unobservable inputs are utilized, the fair value of receivables related to financial services is classified as Level 3.

(4) Other financial assets -

(Public and corporate bonds)

Public and corporate bonds include government bonds. Japanese bonds and foreign bonds, including U.S., European and other bonds, represent 30% and 70% (as of March 31, 2023) and 31% and 69% (as of December 31, 2023) of public and corporate bonds, respectively. Toyota primarily uses quoted market prices for identical assets to measure the fair value of these securities.

 

19

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

(Stocks)

Listed stocks on the Japanese stock markets represent 86% (as of March 31, 2023) and 84% (as of December 31, 2023) of stocks that Toyota holds. Toyota primarily uses quoted market prices for identical assets to measure fair value of these securities. Therefore, stocks with an active market are classified as Level 1.

Fair value of stocks with no active market is measured by using the market approach or other appropriate methods. Therefore, stocks with no active market are thus classified as Level 3.

Price book-value ratios (“PBR”) of comparable companies, discount ratios of discounted cash flow valuation method and others are the significant unobservable inputs relating to the fair value measurement of stocks classified as Level 3. The fair value increases (decreases) as PBR of a comparable company rises (declines) or the discount rate declines (rises). The estimated increase or decrease in fair value of stocks if the unobservable inputs were to be replaced by other reasonable alternative assumptions are not significant.

These estimates are based on valuation methods that are considered appropriate in each case. The significant assumptions involved in the estimations include the financial condition and future prospects and trends of the investees and the outcome of the referenced transactions. Due to the uncertain nature of these assumptions or by using different assumptions and estimates, the fair value may be impacted materially.

The shares classified as Level 3 are measured by the responsible department using quarterly available information in accordance with Toyota’s consolidated financial accounting policies and reported to the supervisors along with the basis of the change in fair value.

(5) Derivative financial instruments -

Toyota employs derivative financial instruments, including foreign exchange forward contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements and interest rate options to manage its exposure to fluctuations in interest rates and foreign currency exchange rates. Toyota primarily estimates the fair value of derivative financial instruments using industry-standard valuation models that require observable inputs including interest rates and foreign exchange rates, and the contractual terms. The usage of these models does not require significant judgment to be applied. These derivative financial instruments are classified as Level 2. In other certain cases when market data are not available, key inputs to the fair value measurement include quotes from counterparties, and other market data. Toyota assesses the reasonableness of changes of the quotes using observable market data. These derivative financial instruments are classified as Level 3. Toyota’s derivative fair value measurements consider assumptions about counterparty and Toyota’s own non-performance risk, using such as credit default probabilities.

 

20

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

(6) Short-term and long-term debt -

The fair values of short-term and long-term debt including the current portion, except for secured loans provided by securitization transactions using special-purpose entities (“Loans Based on Securitization”), are estimated based on the discounted amounts of future cash flows using Toyota’s current borrowing rates for similar liabilities. As these inputs are observable, the fair value of these debts is classified as Level 2.

The fair values of the Loans Based on Securitization are primarily estimated based on current market rates and credit spreads for debt with similar maturities. Internal assumptions including prepayment speeds and expected credit losses are used to estimate the timing of cash flows to be paid on the underlying securitized assets. In cases where these valuations utilize unobservable inputs, the fair value of the Loans Based on Securitization is classified as Level 3.

 

21

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

3. Financial instrument measured at fair value on recurring basis

The following table summarizes the fair values of the assets and liabilities measured at fair value on a recurring basis. Transfers between levels of the fair value are recognized at the date of the event or change in circumstances that caused the transfer:

 

     Yen in millions  
     March 31, 2023  
     Level 1      Level 2     Level 3      Total  

Other financial assets:

          

Financial assets measured at fair value through profit or loss

          

Public and corporate bonds

     98,458        88,989       6,369        193,816  

Stocks

                  168,214        168,214  

Derivative financial instruments

            610,340              610,340  

Other

     334,071        161,981              496,052  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     432,529        861,310       174,583        1,468,422  
  

 

 

    

 

 

   

 

 

    

 

 

 

Financial assets measured at fair value through other comprehensive income

          

Public and corporate bonds

     3,976,333        2,405,823       26,963        6,409,119  

Stocks

     3,214,720              199,060        3,413,780  

Other

     7,838                     7,838  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     7,198,891        2,405,823       226,023        9,830,736  
  

 

 

    

 

 

   

 

 

    

 

 

 

Other financial liabilities:

          

Financial liabilities measured at fair value through profit or loss

          

Derivative financial instruments

            (456,257            (456,257
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

            (456,257            (456,257
  

 

 

    

 

 

   

 

 

    

 

 

 
     Yen in millions  
     December 31, 2023  
     Level 1      Level 2     Level 3      Total  

Other financial assets:

          

Financial assets measured at fair value through profit or loss

          

Public and corporate bonds

     104,669        97,495       8,117        210,281  

Stocks

                  195,216        195,216  

Derivative financial instruments

            604,611              604,611  

Other

     322,146        250,352              572,498  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     426,815        952,458       203,333        1,582,605  
  

 

 

    

 

 

   

 

 

    

 

 

 

Financial assets measured at fair value through other comprehensive income

          

Public and corporate bonds

     4,097,800        3,209,282       21,390        7,328,472  

Stocks

     3,390,371              186,974        3,577,345  

Other

     9,778                     9,778  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     7,497,948        3,209,282       208,364        10,915,594  
  

 

 

    

 

 

   

 

 

    

 

 

 

Other financial liabilities:

          

Financial liabilities measured at fair value through profit or loss

          

Derivative financial instruments

            (413,831            (413,831
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

            (413,831            (413,831
  

 

 

    

 

 

   

 

 

    

 

 

 

 

22

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

4.Changes in financial instruments classified as level 3 and measured at fair value on recurring basis

The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the periods ended December 31, 2022 and 2023:

 

     Yen in millions  
     For the first nine months ended December 31, 2022  
     Public and corporate
bonds
    Stocks     Derivative
financial instruments
     Total  

Balance at beginning of year

     21,852       319,294              341,146  

Total gains (losses)

         

Net income (loss)

     (183     11,548              11,365  

Other comprehensive income (loss)

           (8,396            (8,396

Purchases and issuances

     2,496       14,534              17,029  

Sales and settlements

     (1,462     (12,172            (13,634

Transfer to (from) Level 3

     3,101                    3,101  

Others

     8,054       19,414              27,468  
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance at end of period

     33,858       344,221              378,079  
  

 

 

   

 

 

   

 

 

    

 

 

 
     Yen in millions  
     For the first nine months ended December 31, 2023  
     Public and corporate
bonds
    Stocks     Derivative
financial instruments
     Total  

Balance at beginning of year

     33,332       367,274              400,606  

Total gains (losses)

         

Net income (loss)

     (7     11,235              11,228  

Other comprehensive income (loss)

           5,376              5,376  

Purchases and issuances

     1,699       21,100              22,799  

Sales and settlements

     (3,307     (456            (3,762

Transfer to (from) Level 3

     1,250                    1,250  

Others

     (3,460     (22,340            (25,800
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance at end of period

     29,507       382,189              411,697  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss) in public and corporate bonds, stocks and derivative financial instruments, other than transactions related to financial services, are each included in “Other finance income” and “Other finance costs” in the accompanying condensed quarterly consolidated statement of income. Transactions related to financial services are included in each of “Sales revenues - Financial services” and “Cost of financial services” in the condensed quarterly consolidated statement of income.

In the reconciliation table above, derivative financial instruments are presented as net of assets and liabilities.

“Others” includes foreign currency translation adjustments for the first nine months ended December 31, 2022 and 2023.

 

23

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

5. Financial assets and liabilities measured at amortized cost

The following table summarizes the carrying amount and the fair value of financial assets and liabilities measured on an amortized cost basis:

 

     Yen in millions  
     March 31, 2023  
     Carrying
amount
     Fair value  
     Level 1      Level 2      Level 3      Total  

Receivables related to financial services

     24,770,851                      24,741,916        24,741,916  

Interest-bearing liabilities

              

Long-term debt (Including current portion)

     24,333,981               18,598,205        5,149,410        23,747,616  
     Yen in millions  
     December 31, 2023  
     Carrying
amount
     Fair value  
     Level 1      Level 2      Level 3      Total  

Receivables related to financial services

     29,550,720                      29,739,039        29,739,039  

Interest-bearing liabilities

              

Long-term debt (Including current portion)

     28,171,181               22,081,750        5,702,797        27,784,547  

Of financial assets and liabilities that are measured on an amortized cost basis, those with carrying values that approximate fair value are excluded from the table above.

 

24

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VII.

Dividends

The paid dividend amounts are as follows:

For the first nine months ended December 31, 2022

 

    Resolution    

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

    Record date    

 

  

    Effective date    

 

The Board of
Directors Meeting
on May 11, 2022

   Common shares      385,792        28.00        March 31, 2022        May 27, 2022

 

  

 

  

 

 

    

 

 

    

 

  

 

The Board of
Directors Meeting
on November 1, 2022

   Common shares      342,187        25.00      September 30, 2022    November 22, 2022

 

  

 

  

 

 

    

 

 

    

 

  

 

 For the first nine months ended December 31, 2023

Resolution

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

Record date

 

  

Effective date

 

The Board of
Directors Meeting
on May 10, 2023

   Common shares      474,781        35.00      March 31, 2023    May 26, 2023

 

  

 

  

 

 

    

 

 

    

 

  

 

The Board of
Directors Meeting
on November 1, 2023

   Common shares      405,416        30.00      September 30, 2023    November 22, 2023

 

  

 

  

 

 

    

 

 

    

 

  

 

 

25

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VIII.

Sales revenues

The table below shows Toyota’s sales revenues from external customers by business and by product category.

 

     Yen in millions  
     For the first nine months ended December 31,  
        2022            2023     

Sales of products

     

Automotive

     

Vehicles

     20,937,299        26,760,258  

Parts and components for production

     1,300,447        1,266,665  

Parts and components for after service

     2,113,664        2,341,222  

Other

     615,854        743,012  
  

 

 

    

 

 

 

Total automotive

     24,967,263        31,111,157  

All other

     416,587        400,610  
  

 

 

    

 

 

 

Total sales of products

     25,383,850        31,511,767  

Financial services

     2,080,183        2,510,953  
  

 

 

    

 

 

 

Total sales revenues

     27,464,033        34,022,720  
  

 

 

    

 

 

 
     Yen in millions  
     For the third quarter ended December 31,  
     2022      2023  

Sales of products

     

Automotive

     

Vehicles

     7,434,573        9,521,585  

Parts and components for production

     450,954        420,884  

Parts and components for after service

     734,766        801,858  

Other

     237,411        235,001  
  

 

 

    

 

 

 

Total automotive

     8,857,703        10,979,328  

All other

     162,217        148,997  
  

 

 

    

 

 

 

Total sales of products

     9,019,920        11,128,325  

Financial services

     734,765        912,778  
  

 

 

    

 

 

 

Total sales revenues

     9,754,685        12,041,104  
  

 

 

    

 

 

 

 

26

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

IX.

Earnings per share

Reconciliation of the difference between basic and diluted earnings per share attributable to Toyota Motor Corporation are as follows:

 

     Yen
in millions
     Thousands
of shares
     Yen  
     Net income
attributable to
Toyota Motor
Corporation
     Weighted-
average
common shares
     Earnings per share
attributable to
Toyota Motor
Corporation
 

For the first nine months ended December 31, 2022

        

Net income attributable to Toyota Motor Corporation

     1,899,026        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     1,899,026        13,684,169        138.78  
  

 

 

    

 

 

    

 

 

 

For the first nine months ended December 31, 2023

        

Net income attributable to Toyota Motor Corporation

     3,947,242        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     3,947,242        13,524,129        291.87  
  

 

 

    

 

 

    

 

 

 
     Yen
in millions
     Thousands
of shares
     Yen  
     Net income
attributable to
Toyota Motor
Corporation
     Weighted-
average
common shares
     Earnings per share
attributable to
Toyota Motor
Corporation
 

For the third quarter ended December 31, 2022

        

Net income attributable to Toyota Motor Corporation

     727,942        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     727,942        13,632,403        53.40  
  

 

 

    

 

 

    

 

 

 

For the third quarter ended December 31, 2023

        

Net income attributable to Toyota Motor Corporation

     1,357,814        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     1,357,814        13,494,135        100.62  
  

 

 

    

 

 

    

 

 

 

“Diluted earnings per share attributable to Toyota Motor Corporation” equals “Basic earnings per share attributable to Toyota Motor Corporation” for both the first nine months and the third quarters ended December 31, 2022 and 2023, because there were no potential dilutive shares during such periods.

 

27

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

X.

Supplemental cash flow information

“Other, net” in cash flows from investing activities includes a net decrease in time deposits of ¥165,863 million and a net increase in time deposits of ¥2,088,534 million for the first nine months ended December 31, 2022 and 2023, respectively.

 

XI.

Contingencies

Guarantees -

Toyota enters into contracts with Toyota dealers to guarantee customers’ payments of their installment payables that arise from installment contracts between customers and Toyota dealers, as and when requested by Toyota dealers. Toyota is required to execute its guarantee primarily when customers are unable to make required payments.

The maximum potential amount of future payments as of December 31, 2023 is ¥3,530,875 million. Liabilities for guarantees totaling ¥13,719 million have been provided as of December 31, 2023. Under these guarantee contracts, Toyota is entitled to recover any amount paid by Toyota from the customers whose original obligations Toyota has guaranteed.

Legal proceedings -

Toyota and other automakers have been named in certain class actions filed in Mexico, Australia, Israel, Brazil and Argentina relating to Takata airbag issues. The actions in Brazil and Argentina are being litigated. The actions in Mexico, Australia and Israel have been resolved.

Toyota is named as a defendant in an economic loss class action lawsuit in Australia in which damages are claimed on the basis that diesel particulate filters in certain vehicle models are defective. Toyota received an unfavorable judgment both in the court of first instance on April 7, 2022 and in the appeal court on March 27, 2023. The judgments included a finding that there was a perceived reduction in vehicle value of certain vehicle models. Toyota disagrees with the judgments and has filed an application for a further appeal. Other claims of economic loss in this class action lawsuit continue to be litigated at the court of first instance. In estimating the provision Toyota should record in the condensed quarterly consolidated financial statements as a result of the aforementioned judgments, Toyota has considered various factors including the legal and factual circumstances of the case, the contents of the judgments, and the views of legal counsel. The currently estimated probable economic outflow related to the class action is immaterial to Toyota’s consolidated financial position, results of operations and cash flows. At this stage, however, the final outcome and therefore ultimate financial liability for Toyota on account of this matter cannot be predicted with certainty.

 

28

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

In April 2020, Toyota reported possible anti-bribery violations related to a Thai subsidiary to the SEC and the Department of Justice (“DOJ”), and is cooperating with their investigations. Investigations by governmental authorities related to these matters could result in the imposition of civil or criminal penalties, fines or other sanctions, or litigation. Toyota cannot predict the scope, duration or outcome of these matters at this time.

Toyota also has various other pending legal actions and claims, including without limitation personal injury and wrongful death lawsuits and claims in the United States, as well as intellectual property litigation, and is subject to government investigations from time to time.

Beyond the amounts accrued with respect to all aforementioned matters, Toyota is unable to estimate a range of reasonably possible loss, if any, for the pending legal matters because (i) many of the proceedings are in evidence gathering stages, (ii) significant factual issues need to be resolved, (iii) the legal theory or nature of the claims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of other matters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Therefore, for all of the aforementioned matters, which Toyota is in discussions to resolve, any losses that are beyond the amounts accrued could have an adverse effect on Toyota’s financial position, results of operations or cash flows.

 

29