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44
TOYOTA ANNUAL REPORT 2010
󱛠Japan
Yen in millions
2010 vs. 2009
change
Changes in operating income and loss:
Eff ect of decrease in production
volume and vehicle unit sales in
the export markets and other
operational factors ································ ¥ (325,000)
Eff ect of cost reduction eff orts,
decrease in fi xed costs and other
eff orts ··························································· 337,289
Total ········································································· ¥ 12,289
The decrease in operating losses in Japan
was mainly due to the cost reduction eff orts,
decrease in fi xed costs and other eff orts in the
automotive operations segment, partially off set
by the ¥330.0 billion impact of decreases in
both production volume and vehicle unit sales
in the export markets. The decreases in both
production volume and vehicle unit sales in the
export markets are attributable to the diffi cult
market conditions particularly in North America
and Europe.
󱛠North America
Yen in millions
2010 vs. 2009
change
Changes in operating income and loss:
Eff ect of decrease in production
volume and vehicle unit sales
and other operational factors ······· ¥(30,000)
Eff ect of fl uctuation in foreign
currency translation rates ················ (4,100)
Eff ect of cost reduction eff orts,
decrease in fi xed costs and other
eff orts ························································· 509,782
Total ······································································· ¥475,682
The increase in operating income in North
America was due mainly to the ¥200.0 billion
decreases in the provision for credit losses, net
charge-off s and provision for residual value
losses of sales fi nance subsidiaries in the United
States, which are included in Eff ect of cost
reduction eff orts, decrease in fi xed costs and
other eff orts, partially off set by the ¥40.0 billion
impact of decreases in both production volume
and vehicle unit sales and the ¥4.1 billion impact
of the fl uctuations in foreign currency translation
rates. The decreases in both production volume
and vehicle unit sales in North America are
attributable to the substantial decline in vehicle
unit sales of commercial vehicles and passenger
vehicles due to the downturn in the market in
the fi rst half of fi scal year 2010.
󱛠Europe
Yen in millions
2010 vs. 2009
change
Changes in operating income and loss:
Eff ect of decrease in production
volume and vehicle unit sales
and other operational factors ······ ¥(60,000)
Eff ect of fl uctuation in foreign
currency translation rates ··············· 4,900
Eff ect of cost reduction eff orts,
decrease in fi xed costs and other
eff orts ························································ 165,378
Total ······································································ ¥110,278
The decrease in operating loss in Europe was
mainly due to the ¥155.3 billion impact of cost
reduction eff orts, decrease in fi xed costs and other
eff orts in the automotive operations segment
and the ¥4.9 billion impact of fl uctuations in
foreign currency translation rates, partially off set
by the ¥60.0 billion reduction of both production
volume and vehicle unit sales. The decreases in
both production volume and vehicle unit sales
in Europe was attributable to the decline in
vehicle unit sales in the overall European market
compared to the prior fi scal year despite sales
growth in some of the countries that benefi ted
from government stimulus packages.
󱛠Asia
Yen in millions
2010 vs. 2009
change
Changes in operating income and loss:
Eff ect of increase in production
volume and vehicle unit sales
and other operational factors ······· ¥20,000
Eff ect of fl uctuation in foreign
currency translation rates ················ (16,200)
Eff ect of cost reduction eff orts,
decrease in fi xed costs and other
eff orts ························································· 23,667
Total ······································································· ¥27,467
The increase in operating income in Asia was
mainly due to the ¥20.0 billion impact of increase
in production volume and vehicle unit sales and
the ¥18.6 billion impact of cost reduction eff orts,
decrease in fi xed costs and other eff orts in the
automotive operations segment, partially off set
by the ¥16.2 billion impact of fl uctuation in
foreign currency translation rates. The increase in
production volume and vehicle unit sales in Asia
was primarily attributable to the recovery of Asian
automotive markets, particularly in Thailand and
Indonesia, benefi ting from the government
stimulus packages.
Other Income and Expenses
Interest and dividend income decreased by ¥60.2
billion, or 43.5%, to ¥78.2 billion during fi scal
2010 compared with the prior fi scal year mainly
due to a decrease in interest income refl ecting
decreases in market interest rates.
Interest expense decreased by ¥13.5 billion,
or 28.7%, to ¥33.4 billion during fi scal 2010
compared with the prior fi scal year.
Foreign exchange gains, net increased by ¥70.0
billion to ¥68.2 billion during fi scal 2010 compared
with the prior fi scal year. Foreign exchange gains
and losses include the diff erences between the
value of foreign currency denominated sales
translated at prevailing exchange rates and
the value of the sales amounts settled during
the year, including those settled using forward
foreign currency exchange contracts.
Other income, net increased by ¥220.0 billion
to ¥30.9 billion during fi scal 2010 compared with
the prior fi scal year. This increase was mainly
due to the recognition of impairment losses on
available-for sale securities in the prior fi scal year.
Income Taxes
The provision for income taxes increased by
¥149.1 billion to ¥92.6 billion during fi scal 2010
compared with the prior year primarily due to
the increase in income before income taxes. The
eff ective tax rate was 31.8%, which was lower
than the statutory tax rate in Japan. This was
primarily due to the increase in income before
income taxes of overseas subsidiaries whose
statutory tax rates were lower than the statutory
tax rate in Japan.
Net Income and Loss attributable to the
Noncontrolling Interest and Equity in Earnings
of Affi liated Companies
Net income attributable to the noncontrolling
interest increased by ¥59.0 billion to ¥34.8 billion
during fi scal 2010 compared with the prior year.
This increase was mainly due to an increase in
net income attributable to the shareholders of
consolidated subsidiaries.
Equity in earnings of affi liated companies
Financial Section
Financial Section
Investor Information
Corporate Information
Special Feature
Consolidated
Performance Highlights
Business Overview
Top Messages
Management's Discussion and Analysis of
Financial Condition and Results of Operations