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TOYOTA ANNUAL REPORT 2010 31
F i n a n c i a l S t r a t e g y
The three key components of Toyota’s financial strategy are growth, efficiency and stability.
　We believe that the balanced pursuit of these three priorities over the medium to long term
will allow us to achieve steady and sustainable growth as well as increase corporate value.
１）Growth: Sustainable growth through continuous forward-looking investments
We believe that automotive markets worldwide will grow over the medium to long term. As
they expand, the center of market growth will shift toward fuel-efficient vehicles, such as hybrid
vehicles and compact vehicles and toward resource-rich and emerging markets. We plan to invest
actively in these areas to respond to structural shifts in demand and ensure long-term sustainable
growth. Concurrently, we plan to continue accelerating measures to provide high-quality,
affordable and attractive products that meet customers’ needs in each country and region and to
provide further support in the areas where we want to advance, namely, emerging markets and
next-generation eco-cars.
２）Efficiency: Improving profitability and capital efficiency
To meet ongoing demand for hybrid and compact vehicles, we aim to provide high-quality
vehicles at affordable prices and to improve profitability through further cost reductions. We will
also create a structure for efficient development, production and sales that can respond flexibly
to changes in the external environment. In manufacturing, we will expand local production in
high-growth emerging markets. On the other hand, in the developed countries such as Japan, the
United States and Europe, we intend to revise our current product lineup to reflect changes in
the market structure. We will also build a flexible and efficient production system that is resistant
to foreign exchange fluctuations. Through the creation of a global and optimal supply system, we
aim to realize a strong profit structure.
３）Stability: Maintaining a solid financial base
We preserve a solid financial base by ensuring sufficient liquidity and stable shareholders’
equity. Our sound financial position enables us to maintain our level of capital expenditures and
investment in research and development even when the price of raw materials increases or there
is drastic foreign exchange rate fluctuation. In view of anticipated medium- to long-term growth
in automotive markets worldwide, we believe that maintaining adequate liquidity is essential
for the implementation of forward-looking investment to improve products and develop next-
generation technologies, as well as to establish a structure for production and sales in both
the Japanese and overseas markets. We will continue to pursue further capital efficiency and
improved cash flows.
D i v i d e n d s a n d S h a r e A c q u i s i t i o n s
We consider benefiting shareholders one of our top management priorities, and makes an effort
to realize sustainable growth through ongoing structural improvements to enhance our corporate
value. We strive to continue paying dividends while giving due consideration to factors such as the
business results in each term, investment plans, and cash reserves.
　To survive amid tough competition, we will utilize our internal funds for the early
commercialization of next-generation technologies targeting safety and the environment. We will
make customer safety and security our highest priority, along with initiatives that respond to the
needs of customers in emerging markets. Accordingly, we declared an annual dividend payment of
¥45 per share for the fiscal year ended March 31, 2010.
　Given the uncertain outlook for global financial conditions, we will put a priority on securing cash
reserves. Accordingly, we did not repurchase our own shares in fiscal 2010, and we plan to forgo
such repurchases for the foreseeable future.
　We will continue striving to further improve profits and meet the expectations of our
shareholders.
■ Net Revenues ■ Operating Income
0
25,000
20,000
15,000
10,000
30,000
（¥
Billion）
1009080706
FY
Note: Fiscal years ended March 31
■ Vehicle Sales by Region
Japan 29.9%
North America 29.0%
Europe 11.9%
Asia 13.5%
Others 15.7%
0
500
-500
1,000
1,500
2,000
2,500
（¥ Billion）
1009080706
FY
Note: Fiscal years ended March 31
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