Toyota 2009 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2009 Toyota annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Net Revenues
0
6,000
12,000
18,000
24,000
30,000
(¥ Billion)
’08’07 ’09’06’05FY
Operating Income (Loss)
(¥ Billion)
’08’07 ’09’06’05FY
2,500
2,000
1,500
500
-500
1,000
0
Fiscal 2009 Business Results
Fiscal 2009, ended March 31, 2009, was an extremely difficult period for Toyota. On a consolidated
basis, vehicles sales were down 1,346,000 units, to 7,567,000 units, and net revenues declined 21.9%, to
¥20,529.5 billion. We recorded an operating loss of ¥461.0 billion, a decrease of ¥2,731.3 billion from
operating income in fiscal 2008, and a net loss of ¥437.0 billion, a decrease of ¥2,154.8 billion from net
income in fiscal 2008.
Factors contributing to the decline in operating income were the effects of marketing efforts of
¥1,480.0 billion, the effects of foreign exchange rates of ¥760.0 billion, and increases in expenses of
¥491.3 billion. Vehicle sales worldwide were strongly damaged by a substantial contraction of the
automotive market, particularly in Europe and North America, caused by the rapid deterioration of the
world economy following the onset of the financial crisis last autumn. In addition, changes in the market
structure, including a marked shift toward small vehicles and low-priced vehicles, also greatly impacted
sales. With regard to foreign exchange rates, the rapid appreciation of the Japanese yen against the
U.S. dollar and the euro reduced the profitability of exports. Increases in expenses, such as valuation
losses from interest rate swaps, depreciation expenses, and capital expenditures, also contributed to
the decline in earnings. Though we had been promoting cost reduction efforts to address the situations
described above, the benefits of these efforts were unfortunately offset by the sharp rise in prices of raw
materials.
In response to such a severe business environment, we set up the Emergency Profit Improvement
Committee in November 2008 to improve our earnings for fiscal 2009 and fiscal 2010. During fiscal 2009,
we acted swiftly to deliver as many vehicles as possible to our customers by strengthening products,
including the introduction of new special edition models that adapt to the needs of each regional
market, and by expanding the destinations of our exports to include smaller countries. We enforced
further cost reduction efforts for each vehicle already being sold. We also continued usual cost
reduction efforts and reduced inventory by adjusting vehicle production and suspending, postponing,
and downsizing projects for new plants. Additionally, with the reduction of labor costs, and general and
administrative expenses, we managed to generate an earnings improvement of approximately ¥130.0
billion.
Consolidated Results Outlook for Fiscal 2010
For fiscal 2010, ending March 31, 2010, we are forecasting vehicle sales of 6.5 million units, net revenues
of ¥16,500.0 billion, operating loss of ¥850.0 billion, and net loss of ¥550.0 billion on a consolidated basis.
This forecast assumes average exchange rates through the fiscal year of ¥95 per US$1 and ¥125 per 1.
* Responsibilities include accounting-related operational areas (see Toyota Management Team on page 7)
Vice President
the Executive
Message from
Message from the Executive Vice President
Responsible for Accounting*
We are aiming for a quick recovery in sales
and earnings by accurately responding to structural shifts
in demand with profit improvement initiatives.
Yoichiro Ichimaru, Executive Vice President
Top Messages
TOYOTA MOTOR CORPORATION
4