Toyota 2012 Annual Report Download - page 67

TOYOTA ANNUAL REPORT 2012
Toyota Global Vision Changes for Making
Ever-Better Cars President
ʼ
s Message Medium- to Long-Term
Growth Initiatives Special Feature Management and Corporate Information Investor Information
Business and
Performance Review Financial Section
Management's Discussion and Analysis of Financial Condition and Results of Operations
■
Segment Information
The following is a discussion of results of operations for each of Toyota
ʼ
s operating segments. The
amounts presented are prior to intersegment elimination.
Yen in millions
Year ended March 31, 2011 vs. 2010 Change
2010 2011 Amount Percentage
Automotive: Net revenues ¥17,197,428 ¥17,337,320 ¥ 139,892 +0.8%
Operating income
(
loss
) (
86,370
)
85,973 172,343
—
Financial Services: Net revenues ¥ 1,245,407 ¥ 1,192,205 ¥
(
53,202
)
-
4.3%
Operating income 246,927 358,280 111,353 +45.1%
All Other: Net revenues ¥ 947,615 ¥ 972,252 ¥ 24,637 +2.6%
Operating income
(
loss
) (
8,860
)
35,242 44,102
—
Intersegment elimination/
unallocated amount:
Net revenues ¥
(
439,477
)
¥
(
508,089
)
¥
(
68,612
)—
Operating income
(
loss
) (
4,181
)(
11,216
)(
7,035
)—
Automotive Operations Segment
All Other Operations Segment
The automotive operations segment is Toyota
ʼ
s
largest operating segment by net revenues. Net
revenues for the automotive segment increased
during fiscal 2011 by ¥139.9 billion, or 0.8%,
compared with the prior fiscal year to ¥17,337.3
billion. The increase was due to the ¥740.0
billion impact of increased vehicle unit sales and
the changes in sales mix and the ¥69.8 billion
increase in parts sales, partially offset by the
¥722.5 billion unfavorable impact of fluctuations
in foreign currency translation rates.
Operating income from the automotive
operations increased by ¥172.3 billion during
fiscal 2011 compared with the prior fiscal year to
¥86.0 billion. This increase in operating income
was due to the ¥300.0 billion impact of increased
vehicle unit sales and the changes in sales mix,
the ¥180.0 billion effect of cost reduction efforts
Net revenues for Toyota
ʼ
s other operations
segments increased by ¥24.6 billion, or 2.6%, to
¥972.2 billion during fiscal 2011 compared with
the prior fiscal year.
or 4.3%, compared with the prior fiscal year to
¥1,192.2 billion. This decrease was primarily
due to the unfavorable impact of fluctuations in
foreign currency translation rates of ¥77.5 billion,
partially offset by the ¥13.1 billion increase in
rental income from vehicles and equipment on
operating leases.
Operating income from financial services
operations increased by ¥111.3 billion, or 45.1%,
to ¥358.2 billion during fiscal 2011 compared
with the prior fiscal year. This increase was due
to the ¥100.0 billion decrease in provision for
and the ¥54.4 billion impact of increase in parts
sales, partially offset by the ¥30.0 billion increase
in miscellaneous costs and others and the ¥290.0
billion unfavorable impact of fluctuations in
foreign currency rates.
The increase in vehicle unit sales and changes
in sales mix was due primarily to an increase in
Toyota
ʼ
s vehicle unit sales by 71 thousand vehicles
compared with the prior fiscal year, favored by the
automotive market recovery during fiscal 2011.
The increase in miscellaneous costs and others
includes the ¥30.0 billion increase in costs related
to quality initiatives and the ¥5.0 billion impact of
damages in inventories and other assets resulting
from the Great East Japan Earthquake.
Net revenues for the financial services operations
decreased during fiscal 2011 by ¥53.2 billion,
Operating income from Toyota
ʼ
s other
operations segments increased by ¥44.1 billion
to ¥35.2 billion during fiscal 2011 compared with
the prior fiscal year.
credit losses and net charge-offs, and the ¥30.0
billion decrease in provision for residual value
losses, while the provision for credit losses and
net charge-offs include the ¥15.0 billion increase
in provision for credit losses and net charge-offs
related to the Great East Japan Earthquake.
The decrease in provisions for credit losses,
net of charge-offs and residual value losses are
primarily attributable to used car prices rising to
an unprecedented high level in the United States
and the prices of used Toyota and Lexus brands
ʼ
vehicles also remaining at a high level.
Ratio of credit loss experience in the United States is as follows:
Financial Services Operations Segment
Year ended March 31,
2010 2011
Net charge-offs as a percentage of average gross earning assets:
Finance receivables 1.15% 0.61%
Operating lease 0.63% 0.22%
Total 1.03% 0.52%
While Toyota is subject to downside global
economic risks due to the European sovereign
debt crisis, oil price increase, and other factors,
Toyota expects the world economy will continue
to see gradual recovery in fiscal 2013. Although
competition in the automotive market has
Outlook
0820
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