TMC Announces April-December 2015 Financial Results

Toyota City, Japan, February 5, 2016—Toyota Motor Corporation (TMC) today announced its financial results for the nine-month period ended December 31, 2015.

Consolidated vehicle sales totaled 6,492,784 units, a decrease of 246,374 units compared to the same period last fiscal year. On a consolidated basis, net revenues for the period totaled 21.4313 trillion yen, an increase of 6.5 percent. Operating income increased from 2.1148 trillion yen to 2.3056 trillion yen, while income before income taxes¹ was 2.4529 trillion yen. Net income² increased from 1.7268 trillion yen to 1.8860 trillion yen.

Operating income increased by 190.8 billion yen. Major factors contributing to the increase included currency fluctuations of 310.0 billion yen and cost reduction efforts of 235.0 billion yen.

In Japan, vehicle sales totaled 1,476,655 units, a decrease of 51,507 units, while operating income increased by 207.4 billion yen to 1.3509 trillion yen.

In North America, vehicle sales totaled 2,140,655 units, an increase of 33,032 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 29.4 billion yen to 427.6 billion yen.

In Europe, vehicle sales totaled 617,684 units, a decrease of 15,894 units. Operating income decreased by 15.7 billion yen to 50.7 billion yen.

In Asia, vehicle sales totaled 1,016,235 units, a decrease of 112,478 units, while operating income increased by 58.3 billion yen to 378.9 billion yen.

In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totaled 1,241,555 units, a decrease of 99,527 units. Operating income decreased by 15.3 billion yen to 91.9 billion yen.

Financial services operating income decreased by 19.9 billion yen to 265.0 billion yen, including a gain of 1.7 billion yen in valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income increased by 13.9 billion yen to 263.3 billion yen.

TMC also updated its consolidated financial forecasts for the fiscal year ending March 31, 2016. Despite revised exchange rate assumptions of 120 yen to the U.S. dollar and 132 yen to the euro, TMC still forecasts consolidated net revenue of 27.5 trillion yen, operating income of 2.8 trillion yen, income before income taxes of 2.98 trillion yen, and net income of 2.27 trillion yen.

This forecast does not include the impact of the suspension of vehicle production in February.

Commenting on the operating income forecasts for the fiscal year, TMC Managing Officer Tetsuya Otake said: "At 2.8 trillion yen, our latest forecast remains unchanged from the previous forecast, having reflected both positive factors—such as progress in cost reduction and the weaker-than-expected Yen so far—and negative factors such as an expected increase in sales expenses and other expenses."

This release 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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting, 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 Russian ruble, the Canadian dollar and the British pound, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota's ability to market and distribute effectively; (v) Toyota's ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which 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; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota's ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota's brand image; (x) Toyota's reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota's reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, 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 (xiv) the impact of natural calamities 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.