Toyota 2006 Annual Report Download - page 10

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8
[ Evaluation of Business Results ]
Fiscal 2006, ended March 31, 2006, saw Toyota once again
achieve record results. What is your overall evaluation of
the year?
I was very pleased that we were able to provide nearly eight
million vehicles to customers around the world.
I designated fiscal 2006 as a year for consolidating foundations while con-
tinuing to grow. Accordingly, we simultaneously pursued two strategies:
stepping up strategic measures targeting growth and steadily consolidat-
ing foundations for growth. In those efforts, we faced and overcame many
management challenges to achieve favorable business results.
In fiscal 2006, we were able to increase vehicle sales on a consolidated
basis by actively rolling out new models in markets worldwide. In addition,
sales of hybrid vehicles were brisk, with shipments up by 120,000 units, to
263,000 vehicles. To date, we have sold more than 600,000 hybrid vehicles.
Further, Lexus, which we are cultivating as a global premium brand, debuted
in the Japanese market. And, we expanded our networks of dedicated Lexus
dealers in Europe and China. Meanwhile, we increased production capacity at
home and abroad to allow us to cater flexibly to growing global demand.
It gives me great pride and pleasure that because of those initiatives
the Toyota Group was able to provide close to eight million vehicles to cus-
tomers worldwide. I believe that each vehicle we sell testifies to the trust
customers place in us and represents an endorsement of the painstaking
approach to manufacturing that we have upheld over the years. Without
forgetting our sense of gratitude to customers, we will dedicate ourselves
to building even better vehicles to expand the ranks of Toyota fans and
further Toyota’s development.
How do you rate Toyota’s current profitability and earnings
structure?
I think that an efficient earnings structure is steadily taking
shape despite tough market conditions.
Thanks in part to strong demand in markets worldwide, Toyota’s consoli-
dated vehicle production rose by 500,000 units compared with the previous
fiscal year. Vehicle production is 2.4 million units higher than it was four
years ago. During this period, we have increased investment to enhance
production capacity, and in fiscal 2006 capital investment exceeded ¥1.5
trillion. Moreover, while pursuing expansion, Toyota has worked hard not
to sacrifice profitability and to realize continued growth. In other words,
Katsuaki Watanabe, President
1,000
500
1,500
2,000
’02 ’03 ’04 ’05 ’06
0
6
3
9
12
0
Operating Income
(¥ Billion) （%）
Operating income margin (Right scale)
FY
An Interview with the President
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A
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