Toyota 2011 Annual Report Download - page 51

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0822
Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
Thousands of units
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Toyota’s consolidated vehicle unit sales 979 1,255 276 +28.1%
Yen in millions
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Net revenues:
Sales of products ¥2,612,595 ¥3,325,466 ¥712,871 +27.3%
Financial services 42,732 49,068 6,336 +14.8%
Total ¥2,655,327 ¥3,374,534 ¥719,207 +27.1%
Asia
Thousands of units
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Toyota’s consolidated vehicle unit sales 1,139 1,313 174 +15.3%
Yen in millions
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Net revenues:
Sales of products ¥1,571,846 ¥1,694,680 ¥122,834 +7.8%
Financial services 102,015 114,436 12,421 +12.2%
Total ¥1,673,861 ¥1,809,116 ¥135,255 +8.1%
Other
Management's Discussion and Analysis of Financial Condition and Results of Operations
Toyota’s vehicle unit sales in Asia increased by
276 thousand vehicles compared with the prior
fiscal year and represented a record high unit
sales. This increase in net revenues was due to
the overall recovery of Asian automotive markets
which was supported by the recovery trend of the
Operating costs and expenses decreased by
¥278.0 billion, or 1.5%, to ¥18,525.4 billion during
fiscal 2011 compared with the prior fiscal year.
This decrease resulted from the ¥765.1 billion
favorable impact of fluctuations in foreign currency
translation rates, and the ¥180.0 billion impact of
cost reduction efforts, partially offset by the
¥580.0 billion impact of increase in vehicle unit
sales and change in sales mix and the ¥71.7
billion increase in the miscellaneous costs and
others including ¥20.0 billion increase in costs
related to the Great East Japan Earthquake, and
the ¥15.4 billion impact of increase in parts sales.
The ¥71.7 billion increase in miscellaneous
costs and others includes ¥30.0 billion increase
in product quality related expenses. This cost
increased compared with the prior fiscal year due
to the approximately ¥100.0 billion increase in
costs related to recalls and other safety measures
conducted to heighten the level of reassurance
for customers, partially offset by the approximately
Net revenues in Other increased due to increases
in Toyota’s vehicle unit sales as a result of
economic recovery in certain of these markets.
Toyota’s vehicle unit sales increased by 103
Asian economy, particularly in Thailand and
Indonesia. Excluding the difference of ¥70.7
billion in the Japanese yen value used for
translation purposes, net revenues would have
increased by ¥789.9 billion.
¥70.0 billion decrease in product warranty costs
due to decrease in payments to repair or replace
defects of vehicles based on warranty contracts.
See note 14 to the consolidated financial
statements for further information.
In fiscal 2011, Toyota announced recalls and
other safety measures including the following:
In July 2010, Toyota announced in Japan and
other regions the voluntary safety recall of certain
models of Toyota and Lexus brands’ vehicles
related to abnormal engine noise or idling due to
engine valve springs that contained some foreign
materials. The affected vehicle models included
Crown, GS350/450h/460, IS350, and LS460/600h/
600hL, and 275 thousand vehicles were included
in this recall.
In August 2010, Toyota announced in North
America the voluntary safety recall of certain
models of Toyota vehicles to address the check
engine illuminations and harsh shifting that may
result from improper manufacturing of some
thousand vehicles in the Middle East, by 50
thousand vehicles in Central and South America,
and by 25 thousand vehicles in Africa, respectively,
compared with the prior fiscal year.
Operating Costs and Expenses
Yen in millions
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Operating costs and expenses
Cost of products sold ¥15,971,496 ¥15,985,783 ¥ 14,287 +0.1%
Cost of financing operations 712,301 629,543 (82,758) −11.6%
Selling, general and administrative 2,119,660 1,910,083 (209,577) −9.9%
Total ¥18,803,457 ¥18,525,409 ¥(278,048) −1.5%
Yen in millions
Changes in operating costs and expenses: 2011 vs. 2010 Change
Effect of increase in vehicle unit sales and changes in sales mix ¥ 580,000
Effect of fluctuation in foreign currency translation rates (765,100)
Effect of increase in parts sales 15,400
Effect of cost reduction efforts (180,000)
Effect of increase in miscellaneous costs and others 71,652
Total ¥(278,048)
51
TOYOTA ANNUAL REPORT 2011