Toyota 2014 Annual Report Download

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Annual Report
Year ended March 31, 2014
Aiming to Achieve
Sustainable Growth
and to Bring Smiles

Table of contents

  • Page 1
    Annual Report Year ended March 31, 2014 Aiming to Achieve Sustainable Growth and to Bring Smiles

  • Page 2
    ... Cars 19 Enriching Lives and Building Tomorrow's Toyota through Innovation 24 Message from the Executive Vice President Responsible for Accounting 64 65 66 67 Consolidated Statements of Comprehensive Income Supporting Toyota in Future Growth Markets Unit Center 8 Developing and Commercializing...

  • Page 3
    ... better cars. In North America, the decision has been made to unify and relocate the manufacturing, sales and marketing, corporate, and financial services headquarters at a new shared campus in Plano, Texas, from the latter half of 2016. This will allow our North American operations to address the...

  • Page 4
    ... to develop and commercialize safety technologies that offer safe and responsible ways of moving people. Taking each of these factors into consideration, Toyota will actively direct resources toward next-generation mobility and IT infrastructure innovation. As I have already mentioned, my goal is...

  • Page 5
    ...value that is different from other luxury brands. The Lexus International business unit is under the direct supervision of the president and acts as the global head office for Lexus brand development, sales, marketing and advertising. Successful overhauls lead from a decline to record sales In 2013...

  • Page 6
    ... Corporate Information Financial Section Overview of Four Business Units: Lexus International Toyota No. 1 Toyota No. 2 Unit Center Improving Our Earnings Structure and Offering Advanced Technologies in Developed Markets Toyota Vehicle Production in Japan by Year (1935-2013) (Million) 5 Dec. 2013...

  • Page 7
    ... Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Overview of Four Business Units: Lexus International Toyota No. 1 Toyota No. 2 Unit Center Supporting Toyota in Future Growth Markets Ceremony to commemorate the start of...

  • Page 8
    ... Management and Corporate Information Financial Section Overview of Four Business Units: Lexus International Toyota No. 1 Toyota No. 2 Unit Center Developing and Commercializing Major Components with Best-in-World Competitiveness How to Improve Thermal Efficiency 1.3-liter gasoline engine...

  • Page 9
    ANNUAL REPORT 2014 P ri nt S earch C ontents P ag e Investor Information 9 Ne x t President's Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Toyota's DNA Will ...

  • Page 10
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years [1 of 6] Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor...

  • Page 11
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years [2 of 6] Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor...

  • Page 12
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years [3 of 6] Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor...

  • Page 13
    ...Lexus vehicles annually. In our quest to innovate and make tomorrow's Toyota even better than today's, we have decided to establish a new North American headquarters, moving our regional manufacturing, sales and marketing, corporate, and financial services headquarters to a single location in Plano...

  • Page 14
    ... of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor Information Our DNA is Creating Ever-Better Cars Enriching Lives and Building Tomorrow's Toyota through Innovation Message from the Executive Vice President Responsible for...

  • Page 15
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years [6 of 6] Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor...

  • Page 16
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor Information...

  • Page 17
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor Information...

  • Page 18
    ... directives, which form part of Toyota's management philosophy, are by no means limited to the production front-line. They apply universally to all endeavors. In effect, TPS represents the building blocks of Toyota's human resource development endeavors. Kaizen (continuous improvement) The Toyota...

  • Page 19
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor Information...

  • Page 20
    ... Financial Section Investor Information Our DNA is Creating Ever-Better Cars Enriching Lives and Building Tomorrow's Toyota through Innovation [2 of 4] Message from the Executive Vice President Responsible for Accounting Automated driving technology While respecting the intentions of drivers...

  • Page 21
    ...car ownership experience. Toyota is developing new system technologies and building platforms that leverage Big Data, such as a car's position, speed, and driving conditions, to create new value, enhance safety and improve quality. These systems combine highly accurate maps and navigation to support...

  • Page 22
    ... happy in transport and everyday life. Social฀networking฀service linking฀people฀and฀vehicles: TOYOTA฀friend Industrial฀Energy฀Management: F-Grid Home฀and฀Vehicle Energy฀Management: Smart฀House฀&฀HEMS Future Optimizing฀the฀energy฀use฀of฀the฀entire฀community...

  • Page 23
    ...'s Message Pre v Overview of Four Business Units Toyota in 10 Years and 100 Years Special Feature Consolidated Performance Highlights What Sets Toyota Apart Review of Operations Management and Corporate Information New Values for the Next Hundred Years Financial Section Investor Information...

  • Page 24
    ... RAV4, Lexus IS, and Tundra, served to drive sales forward. We thus saw vehicle sales grow mainly in North America, Europe, and the Middle East. The sales increase in Japan and across many countries and regions worldwide reï¬,ects the introduction of new car models that accurately address the needs...

  • Page 25
    ... the Toyota New Global Architecture (TNGA), an initiative to overhaul the way we work with the goal of facilitating the timely launch of appealing products globally. Under TNGA, we are improving development efficiency and making ever-better cars by standardizing parts and components through grouped...

  • Page 26
    ...Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Performance (U.S. GAAP) Millions of yen 2010 2011 2012 2013 2014 % change 2014 vs. 2013 Fiscal years ended March 31 Net Revenues: Automotive Financial Services...

  • Page 27
    ...'s Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights [2 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Performance (U.S. GAAP) Net Revenues...

  • Page 28
    ...Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Vehicle Production and Sales Thousands of units Fiscal years ended March 31 2010 2011 2012 2013 2014 % change 2014 vs. 2013 ˾ Japan ˾ Overseas Total...

  • Page 29
    ...ended March 31 2010 2011 2012 2013 2014 2014 vs. 2013 Consolidated Vehicle Sales (Thousands of units) 10,000 '10 '11 '12 '13 '14 8,871 8,000 9,116 2,365 +245 +86 Operating Income (Loss) (Â¥ Billion) 2,000 2,279 6,000 Net Revenues by Region: Japan 11,220,303 North America 5,670,526 Europe...

  • Page 30
    ... company, Toyota Financial Services Kazakhstan MFO LLP, which commenced business in January 2014. In such major markets as Europe and the United States, TFS aims to ensure stable earnings by working to secure margins and achieve thorough low-cost operations with consideration for vehicle sales...

  • Page 31
    ... than current safety technologies. In conjunction with this, Toyota developed an onboard communications device, mainly for expressway use, compatible with the ITS Spot Service. Also, in 2011 Toyota commercialized the Driving Safety Support System (DSSS), an onboard navigation system for public...

  • Page 32
    ...Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations [2 of 3] Hands-free conversation What time will you get here? Maybe around 5. Information Technology and Telecommunications Toyota dealers also serve as sales points for mobile...

  • Page 33
    ..., a 24-hour endurance race in Germany. Employees take part both as drivers and mechanics. In addition to helping develop human resources well-versed in the making of cars, Toyota places considerable emphasis on promoting efforts aimed at commercializing models that deliver the fun of driving in the...

  • Page 34
    ... Information Corporate Philosophy Corporate Governance Management Team R&D and Intellectual Property Toyota's R&D is dedicated to the development of attractive, affordable, high-quality products for customers worldwide. The intellectual property that R&D generates is a vital management resource...

  • Page 35
    ...and Intellectual Property [2 of 2] Financial Section Investor Information Corporate Philosophy Corporate Governance Management Team R&D and Intellectual Property Facility Name Europe Toyota Motor Europe NV/SA Toyota Europe Design Development Toyota Motorsport GmbH (TMG) Vehicle Engineering and...

  • Page 36
    ...'s Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information R&D and Intellectual Property Financial Section Investor Information Corporate Philosophy Corporate Governance Management Team...

  • Page 37
    ...Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance [1 of 2] Management Team...

  • Page 38
    ...Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance [2 of 2] Management Team...

  • Page 39
    ...of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance Management Team [1 of 2] Management Team (As฀of฀June฀20,฀2014) Board of Directors Chairman of the Board President, Member of...

  • Page 40
    ... of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance Management Team [2 of 2] Management Team (As฀of฀June฀20,฀2014) Outside Audit & Supervisory Board Members Full-Time Audit...

  • Page 41
    ...'s Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance Management Team Risk...

  • Page 42
    ... and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance Management Team Risk Factors [2 of 3] Risk Factors Toyota's ability to market and distribute effectively is an integral part of Toyota's successful sales. Toyota's success in the sale of...

  • Page 43
    ...'s Message Pre v Overview of Four Business Units Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information R&D and Intellectual Property Corporate Philosophy Financial Section Investor Information Corporate Governance Management Team Risk...

  • Page 44
    ... 34.6% 2009 Per Share Data: Net Income (Loss) Attributable to Toyota Motor Corporation (Basic) Annual Cash Dividends Toyota Motor Corporation Shareholders' Equity Stock Information (March 31): Stock Price Market Capitalization (Yen in millions) Number of Shares Issued (shares) * Excluding vehicles...

  • Page 45
    ... change 2014 vs. 2013 Per Share Data: Net Income (Loss) Attributable to Toyota Motor Corporation (Basic) Annual Cash Dividends Toyota Motor Corporation Shareholders' Equity Stock Information (March 31): Stock Price Market Capitalization (Yen in millions) Number of Shares Issued (shares) * Excluding...

  • Page 46
    ... of Operations Consolidated Segment Information Toyota Motor Corporation Fiscal years ended March 31 Yen in millions 2009 2010 2011 2012 2013 2014 % change 2014 vs. 2013 Business Segment: Net Revenues: Automotive Financial Services All Other Intersegment Elimination Consolidated Operating Income...

  • Page 47
    ...to Toyota Motor Corporation % Change Business Segment: Net Revenues: Automotive Financial Services All Other Intersegment Elimination Consolidated Operating Income: Automotive Financial Services All Other Intersegment Elimination Consolidated Geographic Information: Net Revenues: Japan North America...

  • Page 48
    ... operations. Automotive operations are Toyota's most significant business segment, accounting for 90% of Toyota's total revenues before the elimination of intersegment revenues for fiscal 2014. Toyota's primary markets based on vehicle unit sales for fiscal 2014 were: Japan (26%), North America...

  • Page 49
    ...actions may affect the production, licensing, distribution or sale of Toyota's products, cost of products or applicable tax rates. From time-to-time when potential safety problems arise, Toyota issues vehicle recalls and takes other safety measures including safety campaigns relating to its vehicles...

  • Page 50
    ... 31, 2013 to ¥380.9 billion. Other Business Operations Toyota's other business operations consist of housing (including the manufacture and sale of prefabricated homes), information technology related businesses (including information technology and telecommunications, intelligent transport systems...

  • Page 51
    .... Management assesses financial and non-financial data such as vehicle unit sales, production volume, market share information, vehicle model plans and plant location costs to allocate resources within the automotive operations. ˾ Geographic Breakdown The following table sets forth Toyota's net...

  • Page 52
    ...'s Message Pre v Selected Financial Summary (U.S. GAAP) Overview of Four Business Units Consolidated Segment Information Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor...

  • Page 53
    ... Net revenues: Sales of products Financial services Total Toyota's domestic and exported vehicle unit sales increased by 18 thousand vehicles compared with North America Thousands of units Years ended March 31, 2014 vs. 2013 Change 2013 2014 Amount Percentage (%) Years ended March 31, 2013 2014 The...

  • Page 54
    ... March 31, 2013 2014 2014 vs. 2013 Change Amount Percentage (%) Toyota's consolidated vehicle unit sales 1,684 1,609 Yen in millions (75) -4.5 Years ended March 31, 2013 2014 2014 vs. 2013 Change Amount Percentage (%) Net revenues: Sales of products Financial services Total Excluding the...

  • Page 55
    ...,000 75 2014, continued cost reduction efforts together with suppliers contributed to the improvement in earnings. These cost reduction efforts related to ongoing value engineering and value analysis activities, the use of common parts resulting in a reduction of part types and other manufacturing...

  • Page 56
    ...'s Message Pre v Selected Financial Summary (U.S. GAAP) Overview of Four Business Units Consolidated Segment Information Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor...

  • Page 57
    ...'s Message Pre v Selected Financial Summary (U.S. GAAP) Overview of Four Business Units Consolidated Segment Information Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Quarterly...

  • Page 58
    ...rapid advances in information and communications technology, fierce competition exists on a global scale. In light of the foregoing external factors, Toyota expects that net revenues for fiscal 2015 will increase compared with fiscal 2014 due to price revisions and other factors, partially offset...

  • Page 59
    ...'s Message Pre v Selected Financial Summary (U.S. GAAP) Overview of Four Business Units Consolidated Segment Information Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Quarterly...

  • Page 60
    ...as of March 31, 2014. Liquid assets, which Toyota defines as cash and cash equivalents, time deposits, marketable debt securities and its investment in monetary trust funds, increased during fiscal 2014 by ¥1,954.5 billion, or 28.7%, to ¥8,759.0 billion. Trade accounts and notes receivable, less...

  • Page 61
    ... rate. The decrease in unfunded pension liabilities of foreign plans also reï¬,ects the increase in pension assets resulting mainly from an increase in equity security prices. See note 19 to the consolidated financial statements in Toyota's annual report on Form 20-F. Toyota's treasury policy...

  • Page 62
    ... and Analysis of Financial Condition and Results of Operations Consolidated Balance Sheets Toyota Motor Corporation March 31, 2013 and 2014 Yen in millions Yen in millions 2014 ASSETS Current assets Cash and cash equivalents Time deposits Marketable securities Trade accounts and notes receivable...

  • Page 63
    ... of Financial Condition and Results of Operations Consolidated Statements of Income Toyota Motor Corporation For the years ended March 31, 2012, 2013 and 2014 Yen in millions 2012 2013 2014 Net revenues Sales of products Financing operations Total net revenues Costs and expenses Cost of products...

  • Page 64
    ...Investor Information Consolidated Quarterly Financial Summary Management's Discussion and Analysis of Financial Condition and Results of Operations Consolidated Statements of Comprehensive Income Toyota Motor Corporation For the years ended March 31, 2012, 2013 and 2014 Yen in millions 2012 2013...

  • Page 65
    ... Section Investor Information Consolidated Quarterly Financial Summary Management's Discussion and Analysis of Financial Condition and Results of Operations Consolidated Statements of Shareholders' Equity Toyota Motor Corporation For the years ended March 31, 2012, 2013 and 2014 Common stock...

  • Page 66
    ... Investor Information Consolidated Quarterly Financial Summary Management's Discussion and Analysis of Financial Condition and Results of Operations Consolidated Statements of Cash Flows Toyota Motor Corporation For the years ended March 31, 2012, 2013 and 2014 2012 Yen in millions 2013 2014...

  • Page 67
    ... and Corporate Information Financial Section Investor Information Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Toyota Jidosha Kabushiki Kaisha ("Toyota Motor Corporation") In our opinion, the accompanying consolidated balance sheets and...

  • Page 68
    ... 1,000 0 Trading volume (Million shares) 400 300 200 Major Shareholders (Top 10) Number of Employees: 68,240 (Consolidated: 338,875) Corporate Web Site: [Corporate Information] http://www.toyota-global.com [IR Information] http://www.toyota-global.com/investors Name Number of Shares Held (Thousands...