May. 11, 2016
TMC Announces Financial Results for Fiscal Year Ended March 31, 2016
(All consolidated financial information has been prepared in accordance with U.S. generally accepted accounting principles)
Toyota City, Japan, May 11, 2016―Toyota Motor Corporation (TMC) today announces its financial results for the fiscal year ended March 31, 2016.
Consolidated vehicle sales totaled 8,681,328 units, a decrease of 290,536 units compared to the previous fiscal year. On a consolidated basis, net revenues for the period totaled 28.4031 trillion yen, an increase of 4.3 percent. Operating income increased from 2.7505 trillion yen to 2.8539 trillion yen, while income before income taxes1 was 2.9833 trillion yen. Net income2 increased from 2.1733 trillion yen to 2.3126 trillion yen.
Operating income increased by 103.4 billion yen. Major factors contributing to the increase included cost reduction efforts of 390.0 billion yen and currency fluctuations of 160.0 billion yen.
Commenting on the results, TMC executive vice president Takahiko Ijichi said: "Operating income increased by 103.4 billion yen compared to the previous fiscal year. The positive factors such as cost reduction efforts and favorable foreign exchange rates more than offset the negative factors such as decreased vehicle sales and increased expenses, particularly labor costs and R&D expenses."
In Japan, vehicle sales totaled 2,059,093 units, a decrease of 94,601 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 102.6 billion yen to 1,676.7 billion yen.
In North America, vehicle sales totaled 2,839,229 units, an increase of 124,056 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 32.2 billion yen to 505.6 billion yen.
In Europe, vehicle sales totaled 844,412 units, a decrease of 14,626 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 0.3 billion yen to 75.7 billion yen.
In Asia, vehicle sales totaled 1,344,836 units, a decrease of 144,086 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 21.4 billion yen to 455.0 billion yen.
In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totaled 1,593,758 units, a decrease of 161,279 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 6.0 billion yen to 103.4 billion yen.
Financial services operating income decreased by 22.6 billion yen to 339.2 billion yen, including a gain of 20.1 billion yen in valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income decreased by 2.8 billion yen to 319.0 billion yen.
For the fiscal year ending March 31, 2017, TMC estimates that consolidated vehicles sales will be 8.9 million units.
In addition, TMC forecasts consolidated net revenue of 26.5 trillion yen, operating income of 1.70 trillion yen and net income of 1.50 trillion yen for the fiscal year ending March 31, 2017, based on an exchange rate of 105 yen to the U.S. dollar and 120 yen to the euro.
This forecast does not include the effects of suspension of operations on vehicle assembly lines in Japan resulting from the Kumamoto Earthquake that struck Japan's island of Kyushu last month.
Today, TMC's board of directors resolved to pay 110 yen per share as the year-end dividend on common shares. The annual dividend on common shares for the fiscal year will be 210 yen per share including the interim dividend of 100 yen per share. Also today, TMC's board of directors resolved to buy back up to 500 billion yen or 100 million shares of the company's common stock.
*1Income before income taxes and equity in earnings of affiliated companies
*2Net income attributable to Toyota Motor Corporation
(Please see attached information for details on financial results. Further information is also available at www.toyota-global.com)
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.
