Toyota 2011 Annual Report Download - page 6

Contents
This document contains forward-looking statements that reflect Toyota’s plans and expectations. These forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other factors that may cause Toyota’s actual results, performance, achievements or financial position to be materially
different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include: (i)
changes in economic conditions and market demand affecting, and the competitive environment in, the automotive markets in Japan, North America, Europe, Asia and other
markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the Euro, the
Australian dollar, the Canadian dollar and the British pound; (iii) changes in funding environment in financial markets; (iv) Toyota’s ability to realize production efficiencies and
to implement capital expenditures at the levels and times planned by management; (v) changes in the laws, regulations and government policies in the markets in which
Cautionary Statement with Respect to Forward-Looking Statements
Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such
as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s
other operations, including the outcome of current and future litigation and other legal proceedings government proceedings and investigations; (vi) political instability in the
markets in which Toyota operates; (vii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (viii) any damage to
Toyota’s brand image; and (ix) fuel shortages or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment
of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed
or sold; and (x) the impact of the March 11, 2011 Great East Japan Earthquake and ensuing events, including the negative effect on Toyota’s vehicle production and sales.
A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in Toyota’s annual report on
Form 20-F, which is on file with the United States Securities and Exchange Commission.
Toyota Global Vision
Our new vision clarifies the kind of company Toyota seeks to be and our course for realizing a “regional initiative” structure for
sustained growth. We aim for coexistence and co-prosperity with customers and society by building better cars and creating good
communities and a good society, providing earnings for a stable business/earnings foundation (consolidated operating margin 5%
on unit sales of 7.5 million, ¥85/US$1 (operating income approx. ¥1 trillion) and nonconsolidated operating income profitability).
Special Feature: Toyota’s Safety Technology
Toyota seeks to offer products that exceed customer expectations for safety and quality, and is working to contribute
to achieving zero traffic injuries and fatalities, which is the ultimate goal of the mobility society. We introduce the three
perspectives we take in striving to provide the world’s highest level of safety: Our basic safe philosophy, the leading-edge
technologies we employ to achieve safer vehicles, and future direction of safety technologies.
New Business: Toyota’s Smart Grid Efforts
Realizing the “future mobility society” conceived in our new vision requires the broad acceptance of next-generation
environmentally-friendly vehicles. We introduce the smart grids that will provide the infrastructure to make this possible, giving
an outline of the overall concept and discussing the trials that will lead to their realization and ties with other companies, such
as Microsoft, that will speed up the process.
New Management Structure
We revamped our management structure on April 1, 2011, so as to achieve our new vision. We introduce structures for
making prompt management decisions based on onsite information and customer opinions and creating a structure for
management that is closely attuned to what is happening at actual sites.
Outline of Results and Future Prospects: Message from the Executive Vice President Responsible for Accounting
During the fiscal 2011 we bounced back from challenging circumstances to produce results showing improved earnings
and profits. We will continue toward the goal set forth in our Global Vision of building consistent, solid profitability in
nonconsolidated operating income, with a consolidated operating margin of 5% and operating income of around ¥1 trillion,
even under such severe conditions as an exchange rate of ¥85/US$1 and consolidated unit sales of 7.5 million.
Message from the President
The President thanks our customers for support during a challenging environment, announcing our Global Vision efforts and our
aim to be “A Company Selected By Customers.” Human life is our top priority, so relief and regional recovery came first in the
aftermath of the earthquake. Next, we set about restarting production, deploying the awesome power of superior “on-the-spot”
efforts for rapid production normalization. We are holding our course toward sustained growth amidst challenging circumstances.
Click any title to link to that section
2011 Highlights
39
Message from the Executive Vice President Responsible for Accounting
70 Consolidated Financial Statements
41 Selected Financial Summary (U.S. GAAP)
75 Notes to Consolidated Financial Statements
111 Report of Independent Registered Public Accounting Firm
43 Consolidated Segment Information
44 Consolidated Quarterly Financial Summary
110
Management’s Annual Report on Internal Control over Financial Reporting
112 Investor Information
45 Management’s Discussion and Analysis of Financial Condition and
Results of Operations
Financial Section and Investor Information
18 Consolidated Performance Highlights
20 Automotive Operations
21 Restore and Renew Our Production Structure for Further Growth
22 Financial Services Operations
23 Other Business Operations
25 New Business Activities
26 Support for Recovery from the Great East Japan Earthquake
Business and Performance Review
Special Feature: Toyota’s Safety Technology
7 Chairman’s Message
8 President’s Message
9 TOYOTA Global Vision
Message / Vision
Toyota Digest: The Way Forward
Management and Corporate Information
27 R&D and Intellectual Property
29 Corporate Philosophy
32 Corporate Governance
30 Management Team
35 Risk Factors
38 Other Management and Corporate Data
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6TOYOTA ANNUAL REPORT 2011