Exhibit 5
1.Semi-annual consolidated financial statements and other information.
(1) Semi-annual consolidated financial statements
1 Semi-annual consolidated balance sheets
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FY2003 semi-annual FY2004 semi-annual FY2003 selected data
September 30, 2002 September 30, 2003 March 31, 2003
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Item Notes Yen in millions Percent Yen in millions Percent Yen in millions Percent
age age age
- ------------------------------------------------------------------------------------------------------------------------------
(Assets)
1 Current assets
1 Cash and deposits 1,042,984 - 620,870
2 Trade notes and 1,317,877 - 1,583,393
accounts receivable
3 Marketable securities 1,447,001 - 1,661,978
4 Inventories 986,311 - 1,072,947
5 Installment credits 3,480,274 - 3,430,444
from dealers
6 Short-term loans *3 1,260,688 - 1,558,161
7 Deferred income taxes 383,622 - 413,039
8 Other current assets 812,948 - 826,442
9 Less: allowance for (120,339) - (147,670)
doubtful accounts
------------- ----------- -------------
Total current assets 10,611,370 53.2 - - 11,019,607 53.1
2 Fixed assets
(1) Property, plant and *1
equipment
1 Buildings and structures 1,215,000 - 1,253,674
2 Machinery and equipment 1,174,074 - 1,163,778
3 Vehicles and delivery *2 1,237,833 - 1,238,252
equipment
4 Land 1,078,622 - 1,097,189
5 Construction in progress 268,288 - 232,966
6 Other property, plant 433,430 - 521,123
and equipment
------------- -------------- -------------
Total property, plant 5,407,249 27.1 - - 5,506,985 26.6
and equipment
(2) Intangible fixed assets
Software 4,116 - 5,123
------------- -------------- -------------
Total intangible fixed 4,116 0.0 - - 5,123 0.0
assets
(3) Investments and other
assets
1 Investments in 2,599,479 - 2,695,939
securities
2 Long-term loans 727,049 - 757,922
3 Deferred income taxes 327,816 - 446,123
4 Other investments and 299,042 - 335,618
other assets
5 Less: allowance for (19,187) - (24,934)
doubtful accounts
------------- -------------- -------------
Total investments and 3,934,200 19.7 - - 4,210,669 20.3
other assets
------------- -------------- -------------
Total fixed assets 9,345,567 46.8 - - 9,722,778 46.9
------------- -------------- -------------
Total assets 19,956,937 100.0 - - 20,742,386 100.0
------------- -------------- -------------
-1-
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FY2003 semi-annual FY2004 semi-annual FY2003 selected data
September 30, 2002 September 30, 2003 March 31, 2003
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Item Notes Yen in millions Percent Yen in millions Percent Yen in millions Percent
age age age
- ------------------------------------------------------------------------------------------------------------------------------
(Liabilities)
1 Current liabilities
1 Trade notes and 1,420,607 - 1,582,245
accounts payable
2 Current portion of bonds 1,008,708 - 1,124,035
3 Short-term borrowings 1,042,581 - 966,243
4 Commercial papers 1,102,701 - 1,080,613
5 Accrued expenses and
other accounts 1,170,114 - 1,356,294
payables
6 Income taxes payable 309,352 - 317,194
7 Deferred income taxes 1,391 - 1,570
8 Allowance for product 240,397 - 244,552
warranties
9 Allowance for employee 35,679 - 36,026
bonus
10 Other current 833,916 - 848,764
liabilities
------------- -------------- -------------
Total current 7,165,451 35.9 - - 7,557,541 36.4
liabilities
2 Long-term liabilities
1 Bonds 3,231,027 - 3,520,344
2 Long-term debt 467,989 - 573,767
3 Deferred income taxes 338,381 - 410,330
4 Allowance for 674,750 - 639,708
retirement benefits
5 Other long-term 96,184 - 84,218
liabilities
------------- -------------- -------------
Total long-term 4,808,334 24.1 - - 5,228,369 25.2
liabilities
------------- -------------- -------------
Total liabilities 11,973,785 60.0 - - 12,785,911 61.6
(Minority interest in
consolidated subsidiaries)
Minority interest in
consolidated 472,094 2.4 - - 496,207 2.4
subsidiaries
(Shareholders' equity)
1 Common stock 397,049 2.0 - - 397,049 1.9
2 Capital surplus 415,769 2.1 - - 418,401 2.0
3 Retained earnings 6,884,863 34.5 - - 7,219,896 34.8
4 Unrealized gains on other 151,609 0.7 - - 78,630 0.4
securities, net
5 Translation adjustments (83,968) (0.4) - - (112,350) (0.5)
6 Less: treasury stock (254,265) (1.3) - - (541,360) (2.6)
------------- -------------- -------------
Total shareholders' 7,511,057 37.6 - - 7,460,267 36.0
equity
------------- -------------- -------------
Total liabilities, 19,956,937 100.0 - - 20,742,386 100.0
minority interest in
consolidated
subsidiaries and
shareholders' equity
------------- -------------- -------------
-2-
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FY2004 semi-annual
September 30, 2003
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Item Notes Yen in millions Percentage
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(Assets)
1 Current assets
1 Cash and cash equivalents 1,243,211
2 Time deposits 43,086
3 Marketable securities 4 787,715
4 Trade accounts and notes receivable, less
allowance for doubtful accounts of 34,480
million yen 1,290,688
5 Finance receivables, net 2,242,227
6 Other receivables 471,139
7 Inventories 1,059,824
8 Deferred income taxes 400,218
9 Prepaid expenses and other current assets 566,475
-----------------
Total current assets 8,104,583 39.0
2 Noncurrent finance receivables, net 3,026,614 14.6
3 Investments and other assets
1 Marketable securities and other securities 4 2,269,829
investments
2 Affiliated companies 1,245,596
3 Employees receivables 26,023
4 Other 703,915
-----------------
Total investments and other assets 4,245,363 20.4
4 Property, plant and equipment
1 Land 1,134,538
2 Buildings 2,775,775
3 Machinery and equipment 7,652,074
4 Vehicles and equipment on operating leases 5 1,556,037
5 Construction in progress 195,355
-----------------
Sub total 13,313,779
6 Less - Accumulated depreciation (7,913,219)
-----------------
Total property, plant and equipment 5,400,560 26.0
-----------------
Total assets 20,777,120 100.0
-----------------
-3-
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FY2004 semi-annual
September 30, 2003
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Item Notes Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Liabilities)
1 Current liabilities
1 Short-term borrowings 1,999,453
2 Current portion of long-term debt 1,135,297
3 Accounts payable 1,563,774
4 Other payables 633,646
5 Accrued expenses 1,054,127
6 Income taxes payable 267,244
7 Other current liabilities 420,324
-----------------
Total current liabilities 7,073,865 34.0
2 Long-term liabilities
1 Long-term debt 4,108,804
2 Accrued pension and severance costs 1,112,900
3 Deferred income taxes 413,455
4 Other long-term liabilities 68,089
-----------------
Total long-term liabilities 5,703,248 27.5
-----------------
Total liabilities 12,777,113 61.5
(Minority interest in consolidated subsidiaries)
Minority interest in consolidated subsidiaries 427,533 2.1
(Shareholders' equity)
1 Common stock, no par value,
authorized:
9,740,185,400 shares
issued:
3,609,997,492 shares 397,050 1.9
2 Additional paid-in capital 493,790 2.4
3 Retained earnings 7,756,473 37.3
4 Accumulated other comprehensive loss (476,553) (2.3)
5 Treasury stock, at cost (598,286) (2.9)
212,015,180 shares
-----------------
Total shareholders' equity 7,572,474 36.4
(Commitments and contingencies) 8
-----------------
Total liabilities, minority interest in
consolidated subsidiaries and shareholders'
equity 20,777,120 100.0
-----------------
-4-
2 Semi-annual consolidated statements of income
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FY2003 semi-annual FY2004 semi-annual FY2003 selected data
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Item Notes Yen in millions Percent Yen in millions Percent Yen in millions Percent
age age age
- -----------------------------------------------------------------------------------------------------------------------------------
1 Net revenues 7,886,681 100.0 - - 16,054,290 100.0
2 Cost of revenues 5,933,485 75.2 - - 12,156,140 75.7
------------ ------------ -----------
Gross profit 1,953,196 24.8 - - 3,898,149 24.3
3 Selling, general and
administrative expenses
1 Freight and 104,463 - 212,364
transportation charges
2 Selling expenses 179,301 - 354,998
3 Advertisement 136,710 - 327,793
4 Provision for product 102,738 - 199,777
warranties
5 Salaries and wages 310,529 - 649,620
6 Provision for 22,180 - 25,452
employee bonus
7 Net periodic pension 21,348 - 43,869
cost
8 Depreciation and 43,814 - 94,975
amortization
9 Provision for 47,097 - 124,011
doubtful accounts
10 Amortization of 10,711 - 13,498
goodwill
11 Other 243,471 1,222,368 15.5 - - - 488,107 2,534,469 15.8
---------------------- ----------------------- -----------------------
Operating income 730,827 9.3 - - 1,363,679 8.5
4 Non-operating income
1 Interest income 23,072 - 43,278
2 Dividend income 6,466 - 10,002
3 Gains on sales of 1,767 - 12,641
securities
4 Gains on foreign 5,533 - 27,687
exchange
5 Equity in earnings of 51,627 - 81,966
affiliates
6 Other 67,403 155,871 2.0 - - - 120,523 296,100 1.8
----------- ------------ ---------
5 Non-operating expenses
1 Interest expenses 15,426 - 28,687
2 Interests on 459 - 859
commercial papers
3 Losses on disposal of 25,820 - 53,863
fixed assets
4 Unrealized holding 2,034 - 55,273
losses on securities
5 Reductions of
acquisition cost of 547 - 331
fixed assets
6 Donations 3,806 - 11,733
7 Other 44,575 92,671 1.2 - - - 95,026 245,775 1.5
---------------------- ------------------- -----------------------
Ordinary income 794,028 10.1 - - 1,414,003 8.8
6 Extraordinary gains
Gains on return of
substitutional
portion of employees'
pension fund 186,050 186,050 2.3 - - - 235,314 235,314 1.5
---------------------- ------------------- -----------------------
Income before income 980,078 12.4 - - 1,649,318 10.3
taxes and minority
interest in
consolidated
subsidiaries
Income taxes - current 334,162 - 617,556
Income taxes - deferred 59,338 393,500 5.0 - - - 33,237 650,794 4.1
----------- ------------ -----------
Minority interest in 32,780 0.4 - - 53,852 0.3
consolidated
subsidiaries
------------ ------------ ------------
Net income 553,797 7.0 - - 944,671 5.9
------------ ------ ------------
-5-
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
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Item Notes Yen in millions Percentage
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1 Net revenues
1 Sales of products 7,861,781
2 Financing operations 362,460
-----------------------------------
Total net revenues 8,224,241 100.0
2 Costs and expenses
1 Cost of products sold 6,274,364
2 Cost of financing operations 7 191,361
3 Selling, general and administrative 990,747
-----------------------------------
Total costs and expenses 7,456,472 90.7
-----------------------------------
Operating income 767,769 9.3
3 Other income (expense)
1 Interest and dividend income 28,779
2 Interest expense (12,210)
3 Foreign exchange gain, net 7 26,597
4 Other income, net 1,078
-----------------------------------
Total other income 44,244 0.6
-----------------------------------
Income before income taxes, minority interest 812,013 9.9
and equity in earnings of affiliated companies
Provision for income taxes 309,931 3.8
-----------------------------------
-----------------------------------
Income before minority interest and equity in 502,082 6.1
earnings of affiliated companies
-----------------------------------
Minority interest in consolidated subsidiaries (18,615) (0.2)
Equity in earnings of affiliated companies 40,933 0.5
-----------------------------------
Net income 524,460 6.4
-----------------------------------
(Yen)
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Net income per common share
Basic 153.36
Diluted 153.35
Interim cash dividends per common share 20.00
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-6-
3 Semi-annual consolidated statements of capital surplus and retained earnings
and semi-annual consolidated statements of shareholders' equity
(Semi-annual consolidated statements of capital surplus and retained earnings)
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FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ---------------------------------------------------------------------------------------------------------------------
Item Notes Yen in millions Yen in millions Yen in millions
- ---------------------------------------------------------------------------------------------------------------------
(Capital surplus)
1 Capital surplus at beginning
of period
Capital reserve at 415,150 415,150 - - 415,150 415,150
beginning of period
---------- ---------- -----------
2 Increase in capital surplus
1 Gain on disposal of 619 - 1,430
treasury stock
2 Increase resulting from - 619 - - 1,820 3,251
exchange of shares
----------------------------------------------------------------------------
3 Capital surplus at end of 415,769 - 418,401
period
----------- --------- -----------
(Retained earnings)
1 Retained earnings at beginning
of period
Consolidated earned
surplus at beginning of
period 6,527,956 6,527,956 - - 6,527,956 6,527,956
---------- ---------- -----------
2 Increase in retained earnings
1 Net income 553,797 - 944,671
2 Increase resulting from
decrease in consolidated 1,496 - 3,804
subsidiaries
3 Increase resulting from
increase in affiliates
accounted for under the
equity method 272 555,567 - - 166 948,642
---------- ---------- -----------
3 Decrease in retained earnings
1 Dividends 53,342 - 109,330
2 Bonuses to directors 2,316 - 2,316
and corporate auditors
3 Decrease resulting from
increase in consolidated 9 - 2,062
subsidiaries
4 Decrease resulting from
share retirement by the
parent company 142,992 198,660 - - 142,992 256,702
----------------------------------------------------------------------------
4 Retained earnings at end of 6,884,863 - 7,219,896
period ----------- --------- -----------
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-7-
(Semi-annual consolidated statements of shareholders' equity)
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FY2004 semi-annual
April 1,2003 through September 30,2003
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Accumulated
Additional other Treasury
Item Notes Common paid-in Retained comprehensive stock, Total
stock capital earnings income (loss) at cost
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Yen in millions
- ----------------------------------------------------------------------------------------------------------------------
Balance at March 31, 2003 397,050 493,790 7,301,795 (604,272) (467,363) 7,121,000
------------------------------------------------------------------------------
1 Comprehensive income:
(1) Net income 524,460 524,460
(2) Other comprehensive income
(loss),
1 Foreign currency
translation adjustments (112,479) (112,479)
2 Unrealized gains (losses)
on securities,
net of reclassification 228,270 228,270
adjustments
3 Minimum pension liability 11,928 11,928
adjustments
----------
Total comprehensive income 652,179
----------
2 Dividends paid (69,782) (69,782)
3 Purchase and retirement of (130,923) (130,923)
common stock
------------------------------------------------------------------------------
Balance at September 30, 2003 397,050 493,790 7,756,473 (476,553) (598,286) 7,572,474
------------------------------------------------------------------------------
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-8-
4 Semi-annual consolidated statements of cash flows
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FY2003 semi-annual FY2004 semi-annual FY2003 selected data
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ---------------------------------------------------------------------------------------------------------------------
Item Notes Yen in millions Yen in millions Yen in millions
- ---------------------------------------------------------------------------------------------------------------------
1 Cash flows from operating activities
1 Income before income taxes and
minority interest in consolidated 980,078 - 1,649,318
subsidiaries
2 Depreciation 416,044 - 851,634
3 Losses on disposal of fixed 25,820 - 53,863
assets
4 Decrease in allowance for (181,472) - (113,478)
retirement benefits
5 Interest and dividend income (29,539) - (53,280)
6 Interest expenses 15,886 - 29,547
7 Equity in earnings of (51,627) - (81,966)
affiliates
8 Increase in trade notes and (143,035) - (357,746)
accounts receivable
9 Increase in loans receivable
of consolidated finance (98,704) - (407,186)
subsidiaries
10 (Increase) decrease in 7,805 - (25,842)
inventories
11 Increase (decrease ) in (45,766) - 108,611
trade notes and accounts payable
12 Other (4,133) - 294,123
----------------------------------------------------------------------
Sub total 891,355 - 1,947,598
13 Interests and dividends 38,860 - 69,766
received
14 Interests paid (15,574) - (30,084)
15 Income taxes paid (382,641) - (657,808)
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Cash flows from operating activities 532,001 - 1,329,472
- ---------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Net increase in time deposits (11,248) - (32,195)
2 Purchases of marketable
securities and investments in (483,502) - (1,111,584)
securities
3 Proceeds from sales of
marketable securities and 107,632 - 208,776
investments in securities
4 Proceeds on maturity of
marketable securities and 462,247 - 723,981
investments in securities
5 Additions to property, plant
and equipment (excluding vehicles (533,773) - (1,012,803)
for lease)
6 Additions to vehicles for lease (256,877) - (540,945)
7 Proceeds from sales of
property, plant and equipment 31,605 - 64,074
(excluding vehicles for lease)
8 Proceeds from sales of 126,598 - 283,840
vehicles for lease
9 Other 34,403 - 31,042
- ---------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities (522,914) - (1,385,814)
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-9-
- ---------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003 selected data
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ---------------------------------------------------------------------------------------------------------------------
Item Notes Yen in millions Yen in millions Yen in millions
- ---------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Net decrease in short-term (72,158) - (202,190)
borrowings
2 Net increase in commercial 207,884 - 179,453
papers
3 Proceeds from origination of 49,762 - 189,693
long-term debt
4 Payments for long-term debt (63,047) - (144,933)
5 Proceeds from issuance of bonds 840,917 - 1,564,564
6 Payments for redemption of (498,603) - (984,848)
bonds
7 Purchase of treasury stock (169,213) - (454,611)
8 Dividends paid (53,342) - (109,330)
9 Other (5,089) - (4,241)
- ---------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities 237,111 - 33,555
- ---------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on (40,937) - (42,098)
cash and cash equivalents
- ---------------------------------------------------------------------------------------------------------------------
5 Net increase (decrease) in cash and 205,261 - (64,884)
cash equivalents
- ---------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at 1,688,126 - 1,688,126
beginning of period
- ---------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of 1,893,387 - 1,623,241
period
----------------------------------------------------------------------
-10-
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------------------------------------------
Item Notes Yen in millions
- --------------------------------------------------------------------------------------------------------------------
1 Cash flows from operating activities
1 Net income 524,460
2 Adjustments to reconcile net income to net cash provided
by operating activities
(1) Depreciation 475,938
(2) Provision for doubtful accounts and credit losses 38,418
(3) Pension and severance costs, less payments 33,957
(4) Loss on disposal of fixed assets 18,896
(5) Unrealized losses on available-for-sale securities, net 2,697
(6) Deferred income taxes 21,996
(7) Minority interest in consolidated subsidiaries 18,615
(8) Equity in earnings of affiliated companies (40,993)
(9) Changes in operating assets and liabilities 80,125
(10) Other (61,185)
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,112,924
- --------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Additions to finance receivables (4,182,349)
2 Collection of and proceeds from sales of finance 3,727,776
receivables
3 Additions to fixed assets excluding equipment leased to (445,522)
others
4 Additions to equipment leased to others (298,454)
5 Proceeds from sales of fixed assets excluding equipment 31,234
leased to others
6 Proceeds from sales of equipment leased to others 133,073
7 Purchases of marketable securities and security (1,137,863)
investments
8 Proceeds from sales of and maturity of marketable 705,614
securities and security investments
9 Decrease in time deposits 15,845
10 Decrease in investments and other assets 138
11 Payments for additional investments in affiliated
companies, net of cash acquired (18,876)
12 Other (2,720)
- --------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,472,104)
- --------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Purchases of common stock (120,229)
2 Proceeds from issuance of long-term debt 700,149
3 Payments of long-term debt (622,709)
4 Increase in short-term borrowings 160,970
5 Dividends paid (69,782)
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 48,399
- --------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (38,036)
- --------------------------------------------------------------------------------------------------------------------
5 Net decrease in cash and cash equivalents (348,817)
- --------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 1,592,028
- --------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 1,243,211
---------------------------------------
-11-
Significant matters for preparation of semi-annual consolidated financial
statements
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
1. Scope of Consolidation 1. Scope of Consolidation
Number of consolidated Number of consolidated
subsidiaries: 579 subsidiaries: 581
(1) Number of consolidated (1) Number of consolidated
subsidiaries in Japan: 354 subsidiaries in Japan: 355
Tokyo Toyota Motor Co., Ltd. Tokyo Toyota Motor Co., Ltd.
Tokyo Toyo-Pet Motor Sales Tokyo Toyo-Pet Motor Sales
Co., Ltd. Co., Ltd.
Osaka Toyopet Co., Ltd. Osaka Toyopet Co., Ltd.
Toyota Tokyo Corolla Co., Ltd. Toyota Tokyo Corolla Co., Ltd.
Hino Motors, Ltd. Hino Motors, Ltd.
Toyota Motor Kyushu, Inc. Toyota Motor Kyushu, Inc.
Daihatsu Motor Co., Ltd. Daihatsu Motor Co., Ltd.
Toyota Motor Hokkaido, Inc. Toyota Motor Hokkaido, Inc.
Toyota Auto Body Co., Ltd. Toyota Auto Body Co., Ltd.
Kanto Auto Works, Ltd. Kanto Auto Works, Ltd.
Araco Corporation Araco Corporation
Toyota Financial Services Toyota Financial Services
Corporation Corporation
Toyota Finance Corporation Toyota Finance Corporation
Others Others
(2) Number of overseas (2) Number of overseas
consolidated subsidiaries: consolidated subsidiaries:
225 226
Toyota Motor North America, Toyota Motor North America,
Inc. Inc.
Toyota Motor Europe n.v./s.v. Toyota Motor Europe n.v./s.v.
Toyota Motor Sales, U.S.A., Toyota Motor Sales, U.S.A.,
Inc. Inc.
Toyota Motor Marketing Europe ----------------------- Toyota Motor Marketing Europe
n.v./s.a. n.v./s.a.
Toyota Deutschland G.m.b.H. Toyota Deutschland G.m.b.H.
Toyota (GB) PLC Toyota France S.A.
Toyota Motor Manufacturing, Toyota Motor Italia S.p.A.
North America, Inc. Toyota (GB) PLC
Toyota Motor Manufacturing, Toyota Motor Manufacturing,
Kentucky, Inc. North America, Inc.
Toyota Motor Manufacturing, Toyota Motor Manufacturing,
Indiana, Inc. Kentucky, Inc.
Toyota Motor Manufacturing Toyota Motor Manufacturing,
Canada Inc. Indiana, Inc.
Toyota Motor Engineering & Toyota Motor Manufacturing
Manufacturing Europe n.v./s.a. Canada Inc.
Toyota Motor Manufacturing Toyota Motor Engineering &
(UK) Ltd. Manufacturing Europe
Kuozui Motors Ltd. n.v./s.a.
Toyota Motor Thailand Co., Ltd. Toyota Motor Manufacturing
Toyota Motor Corporation (UK) Ltd.
Australia Ltd. Toyota South Africa Motors
Toyota Motor Credit Corporation (Pty) Ltd.
Toyota Credit Canada Inc. Kuozui Motors Ltd.
Toyota Kreditbank G.m.b.H. Toyota Motor Thailand Co.,
Toyota Motor Finance Ltd.
(Netherlands) B.V. Toyota Motor Corporation
Toyota Financial Services (UK) Australia Ltd.
PLC Toyota Motor Credit
Toyota Finance Australia Ltd. Corporation
Others Toyota Credit Canada Inc.
Toyota Kreditbank G.m.b.H.
Toyota Motor Finance
(Netherlands) B.V.
Toyota Financial Services
(UK) PLC
Toyota Finance Australia Ltd.
Others
-12-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
During this semi-annual During this fiscal year, 41
period, 27 companies, companies, including Toyota
including Toyota Motor Europe Motor Europe n.v./s.v., newly
n.v./s.v., newly became became subsidiaries of Toyota
subsidiaries of Toyota Motor Motor Corporation ("TMC") and
Corporation ("TMC") and were were consolidated.
consolidated. Subsidiaries Subsidiaries excluded from
excluded from the scope of the scope of consolidation
consolidation included (i) 4 included (i) 6 companies,
companies, including Toyota including Toyota Kyoei
Kyoei Service Co, Ltd., that Service Co., Ltd., that
ceased to be subsidiaries of ceased to be subsidiaries of
TMC due to decreases in TMC due to decreases in
shareholding ratios resulting shareholding ratios resulting
from sales of their respective from sales of their
voting shares or other respective voting shares or
reasons; (ii) 3 companies, other reasons; (ii) 12
including Toyota Media Station companies, including Toyota
Inc., that were liquidated; Media Station Inc., that were
and (iii) 5 companies, liquidated; and (iii) 6
including Toyota Modellista companies, including Toyota
Fukuoka Corporation, that were Modellista Fukuoka
merged into other consolidated Corporation, that were merged
subsidiaries. into other consolidated
subsidiaries.
2. Application of Equity Method 2. Application of Equity Method
(1)Number of affiliates accounted (1)Number of affiliates
for under the equity method: 50 accounted for under the
equity method: 51
(a) Number of domestic
affiliates accounted for (a) Number of domestic
under the equity method: 34 affiliates accounted for
under the equity method: 34
Toyota Industries Corporation
Aichi Steel Corporation Toyota Industries
Toyoda Machine Works, Ltd. Corporation
Toyota Tsusho Corporation ------------------------ Aichi Steel Corporation
Aisin Seiki Co., Ltd. Toyoda Machine Works, Ltd.
Denso Corporation Toyota Tsusho Corporation
Toyoda Gosei Co., Ltd. Aisin Seiki Co., Ltd.
Aisin AW Co., Ltd. Denso Corporation
Aioi Insurance Co., Ltd. Toyoda Gosei Co., Ltd.
Others Aisin AW Co., Ltd.
Aioi Insurance Co., Ltd.
(b) Number of overseas Others
affiliates accounted for
under the equity method: 16 (b) Number of overseas
affiliates accounted for
New United Motor under the equity method: 17
Manufacturing, Inc.
Others New United Motor
Manufacturing, Inc.
Toyota Canada Inc.
From this semi-annual period, Others
2 affiliates, including
Tianjin Toyota Motor Co., Ltd. From this fiscal year, 6
were accounted for under the affiliates, including Tianjin
equity method in consideration Toyota Motor Co., Ltd. were
of their materiality. In accounted for under the
addition, Toyota Espana S.L., equity method in
which was previously accounted consideration of their
as an equity method affiliate, materiality. In addition, 4
has newly become subsidiaries companies previously
of TMC and has consequently accounted as equity method
been consolidated. Jeco Co., affiliates, including Toyota
Ltd. was no longer accounted Woodyou Home Corporation and
for under the equity method in Toyota Espana S.L., have
consideration of its newly become subsidiaries of
materiality, resulting from TMC and have consequently
the sale of its shares. been consolidated. Jeco Co.,
Ltd. was no longer accounted
for under the equity method
in consideration of its
materiality, resulting from
the sale of its shares.
-13-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
(2) Number of unconsolidated (2) Number of unconsolidated
subsidiaries and affiliates subsidiaries and affiliates
not accounted for under the not accounted for under the
equity method equity method
Affiliates: 184, including Affiliates: 182, including
Aisin Takaoka Co., Ltd. Aisin Takaoka Co., Ltd.
(3) Affiliates not accounted for (3) Affiliates not accounted
under the equity method are for under the equity method
all insignificant in terms of are all insignificant in
their net income (loss), legal terms of their net income
reserve and retained earnings, (loss), legal reserve and
and impact on the semi-annual retained earnings, and
consolidated financial impact on the consolidated
statements is immaterial. financial statements is
immaterial.
3. Semi-Annual Period Ends of 3. Fiscal Year Ends of
Consolidated Subsidiaries Consolidated Subsidiaries
(1) The semi-annual period ends (1) The fiscal year ends of the
of the following consolidated following consolidated
subsidiaries are different subsidiaries differ from that
from the one of TMC, which is of TMC, which is March 31.
September 30.
A total of 39 subsidiaries
A total of 40 subsidiaries whose fiscal year ends on
whose semi-annual period end ------------------------ December 31 includes:
on June 30 includes:
OOO Toyota Motor
Toyota Motor Italia S.p.A. Tianjin Toyota Forging Co.,
OOO Toyota Motor Ltd.
Toyota Motor Thailand Co., Tianjin Fengjin Auto Parts
Limited Co., Ltd.
Tianjin Toyota Forging Co., Toyota Motor (China)
Ltd. Investment Co., Ltd.
Tianjin Fengjin Auto Parts Toyota Motor Technical Center
Co., Ltd. (China) Co., Ltd.
Toyota Motor (China) Toyota Motorsport G.m.b.H.
Investment Co., Ltd.
Toyota Motor Technical Center
(China) Co., Ltd.
Toyota Motorsport G.m.b.H.
In addition, the following
In addition, the following subsidiaries' fiscal years
subsidiaries follow fiscal end on the date specified in
calendars whose semi-annual parentheses:
periods end on the date
specified in parentheses: Fahren Miyagi Co., Ltd.
(April 30)
Itagaki Kousan Co., Ltd. Itagaki Syouji Co., Ltd.
(March 31) (June 30)
Fahren Miyagi Co., Ltd. Itagaki Kousan Co., Ltd.
(October 31) (September 30)
Itagaki Syouji Co., Ltd.
(December 31)
-14-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
(2) Of the above subsidiaries, (2) Of the above subsidiaries,
Itagaki Kousan Co., Ltd (whose Fahren Miyagi Co., Ltd (whose
semi-annual period ends on fiscal year ends on April
March 31), Fahren Miyagi Co., 30), Itagaki Syouji Co., Ltd
Ltd (whose semi-annual period (whose fiscal year ends on
ends on Octorber 31), Itagaki June 30), Itagaki Kousan Co.,
Syouji Co., Ltd (whose Ltd (whose fiscal year ends
semi-annual period ends on on September 30) and 10 other
December 31) and 12 other subsidiaries whose fiscal
subsidiaries whose semi-annual years end on December 31,
periods end on June 30, including Banco Toyota do
including Toyota Motor Brasil S.A., were
Thailand Co., Limited, were consolidated based on the
consolidated based on the amounts for a year ended
amounts for six month period March 31 prepared for the
ended September 30 prepared purpose of consolidation. In
for the purpose of addition, 29 subsidiaries,
consolidation. In addition, 28 including OOO Toyota Motor,
subsidiaries, including OOO were consolidated based on
Toyota Motor, were their respective financial
consolidated based on their statements.
respective semi-annual
financial statements.
4. Significant Accounting Policies 4. Significant Accounting Policies
(1) Valuation of assets (1) Valuation of assets
(a) Securities (a) Securities
Securities with fair value Securities with fair value
Principally stated at fair Principally stated at fair
value based on market value based on market
prices at end of prices at end of fiscal
semi-annual period. year. (Unrealized holding
(Unrealized holding gains gains and losses are
and losses are accounted accounted for as a
for as a component of ------------------------ component of shareholders'
shareholders' equity; cost equity; cost of sales is
of sales is determined determined using the
using the moving average moving average method.)
method.)
Securities not practicable
Securities not practicable to fair value
to fair value
Principally stated at cost
Principally stated at cost using the moving average
using the moving average method.
method.
(b) Derivatives (b) Derivatives
Principally stated at fair Principally stated at fair
value. value.
(c) Money trusts for trading (c) Money trusts for trading
purposes purposes
Stated at fair value. Stated at fair value.
(d) Inventories (d) Inventories
TMC and domestic TMC and domestic
consolidated subsidiaries consolidated subsidiaries
Principally stated at Principally stated at
cost, as determined cost, as determined
using the periodic using the periodic
average method or the average method or the
specific identification specific identification
method. method.
Overseas consolidated Overseas consolidated
subsidiaries subsidiaries
Principally stated at Principally stated at
the lower of cost or the lower of cost or
market value based on market value based on
the specific the specific
identification method, identification method,
first-in-first-out first-in-first-out
method or method or
last-in-first-out method. last-in-first-out
method.
-15-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
(2)Depreciation and amortization (2) Depreciation and amortization
(a) Depreciation of property, (a) Depreciation of property,
plant and equipment plant and equipment
TMC and domestic TMC and domestic
consolidated subsidiaries: consolidated subsidiaries:
Principally computed using Principally computed
the declining balance using the declining
method. The determination balance method. The
of useful life and determination of useful
residual value is based on life and residual value
the same standards as in is based on the same
the Corporate Tax Laws. standards as in the
Corporate Tax Laws.
Buildings and structures,
machinery and equipment, Buildings and structures,
vehicles and delivery machinery and equipment,
equipment and other vehicles and delivery
property, plant and equipment and other
equipment of TMC is property, plant and
depreciated to their equipment of TMC is
actual residual value depreciated to their
after they have been actual residual value
depreciated to their after they have been
depreciable limit under depreciated to their
the Corporate Tax Laws. depreciable limit under
the Corporate Tax Laws.
Overseas consolidated
subsidiaries: Overseas consolidated
subsidiaries:
Principally computed using
the straight-line method. Principally computed
using the straight-line
------------------------ method.
(b) Amortization of intangible (b) Amortization of intangible
fixed assets fixed assets
Software for internal use Software for internal use
is amortized over its is amortized over its
estimated useful life of 5 estimated useful life of
years using the 5 years using the
straight-line method. straight-line method.
(3) Accounting of deferred assets (3) Accounting of deferred assets
Organization expenses, Organization expenses,
business commencement business commencement
expenses, share issuance expenses, share issuance
expenses, bond issuance expenses, bond issuance
expenses and bond discounts expenses and bond discounts
are expensed when the payment are expensed when the
is made. payment is made.
(4) Significant allowances (4) Significant allowances
(a)Allowance for doubtful (a)Allowance for doubtful
accounts accounts
TMC: TMC:
To prepare for losses from To prepare for losses
uncollectible receivables, from uncollectible
allowance for doubtful receivables, allowance
accounts is provided in an for doubtful accounts is
amount equivalent to the provided in an amount
maximum limit deductible equivalent to the maximum
for tax purposes which is limit deductible for tax
determined by the purposes which is
Corporate Tax Laws or an determined by the
amount determined by Corporate Tax Laws or an
considering the amount determined by
collectibility of considering the
receivable. collectibility of
receivable.
-16-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Consolidated subsidiaries: Consolidated subsidiaries:
Principally computed based Principally computed
on the maximum limit based on the maximum
deductible for tax limit deductible for tax
purposes which is purposes which is
determined by the determined by the
Corporate Tax Laws or the Corporate Tax Laws or the
historical loss experience. historical loss
experience.
(b)Allowance for product (b)Allowance for product
warranties warranties
To prepare for expenses To prepare for expenses
related to after-sale related to after-sale
services, allowance for services, allowance for
product warranty is provided product warranty is
based on the terms of the provided based on the
warranties and historical terms of the warranties
experience. and historical experience.
(c)Allowance for employee bonus (c)Allowance for employee bonus
To provide for employee To provide for employee
bonuses, some of the bonus, some of the
consolidated subsidiaries consolidated subsidiaries
accrue part of the estimated ------------------------ accrue part of the
bonus payments for the estimated bonus payments
following fiscal period which for the following fiscal
are attributed to the current year which are attributed
semi-annual period. to the current fiscal
year.
(d)Allowance for retirement (d)Allowance for retirement
benefits benefits
Principally to provide for Principally to provide
the retirement benefits for for the retirement
employees, including those benefits for employees,
already retired, allowance including those already
for retirement benefits retired, allowance for
obligations deemed to have retirement benefits
been incurred during the obligations deemed to
current semi-annual period is have been incurred during
stated based on estimated the current fiscal year
retirement benefit is stated based on
obligations and estimated estimated retirement
pension assets at the end of benefit obligations and
the current semi-annual estimated pension assets
period. at the end of the fiscal
year.
(5)Accounting for Lease (5)Accounting for Lease
Transactions Transactions
Finance lease transactions Finance lease transactions
other than those which are other than those which are
deemed to transfer the deemed to transfer the
ownership of the leased ownership of the leased
assets to lessees are assets to lessees are
accounted for by a method accounted for by a method
similar to that used for similar to that used for
ordinary operating lease ordinary operating lease
transactions. transactions.
-17-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
(6)Accounting for Hedges (6)Accounting for Hedges
Gains or losses arising from Gains or losses arising from
changes in fair value of the changes in fair value of the
derivatives designed as derivatives designed as
"hedging instruments" are "hedging instruments" are
deferred as assets or deferred as assets or
liabilities, or those liabilities, or those
derivatives are used for derivatives are used for
valuating hedged assets or valuating hedged assets or
liabilities. liabilities.
TMC and its consolidated TMC and its consolidated
subsidiaries enter into the subsidiaries enter into the
following hedge transactions: following hedge transactions:
(i) foreign exchange forward (i) foreign exchange forward
contracts and foreign currency contracts and foreign currency
options, primarily to hedge options, primarily to hedge
against exchange rate against exchange rate
fluctuation risks related to fluctuation risks related to
accounts receivable denominated accounts receivable
in foreign currencies, denominated in foreign
primarily the U.S. dollar; (ii) currencies, primarily the U.S.
interest rate options, dollar; (ii) interest rate
primarily to hedge against options, primarily to hedge
interest rate fluctuation risks against interest rate
related to floating-rate fluctuation risks related to
liabilities; and (iii) interest floating-rate liabilities; and
rate currency swaps and (iii) interest rate currency
interest rate swaps, primarily swaps and interest rate swaps,
to hedge against currency and primarily to hedge against
interest rate fluctuation risks currency and interest rate
related to the principal and fluctuation risks related to
interest of bond portfolios the principal and interest of
denominated in foreign bond portfolios denominated in
currencies and straight bonds foreign currencies and
issued in foreign currencies. straight bonds issued in
foreign currencies.
------------------------
The assessment of hedge The assessment of hedge
effectiveness is conducted by effectiveness is conducted by
comparing the accumulated comparing the accumulated
fluctuation in fair value or fluctuation in fair value or
cash flow of the hedged item cash flow of the hedged item
and the hedge instrument in the and the hedge instrument in
period between the start date the period between the start
of the hedge transaction and date of the hedge transaction
the day of assessment. and the day of assessment.
TMC believes that its exposure TMC believes that its exposure
to credit risk is immaterial as to credit risk is immaterial
the counterparties of the as the counterparties of the
transactions entered into by transactions entered into by
TMC and its subsidiaries are TMC and its subsidiaries are
diversified among financial diversified among financial
institutions with strong credit institutions with strong
profiles. The execution and credit profiles.The execution
management of hedge and management of hedge
transactions are conducted by transactions are conducted by
the financial department of the financial department of
each company upon obtaining each company upon obtaining
approval from directors approval from directors
overseeing the accounting and overseeing the accounting and
financial operations. The financial operations. The
status of these transactions is status of these transactions
periodically reported to the is periodically reported to
overseeing directors. these overseeing directors.
(7)Accounting of consumption taxes (7)Accounting of consumption
taxes
Consumption tax is computed
using the net-of-tax method. Consumption tax is computed
using the net-of-tax method.
-18-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
5. Definition of funds on 5. Definition of funds on
semi-annual consolidated consolidated statements of
statements of cash flows cash flows
Cash and cash equivalents on Cash and cash equivalents on
the semi-annual consolidated the consolidated statements of
statements of cash flows cash flows include cash on
include cash on hand, ------------------------ hand, immediately accessible
immediately accessible bank bank deposits, and short-term
deposits, and short-term investments with original
investments with original maturities of 3 months or
maturities of 3 months or less, less, that are readily
that are readily convertible convertible into cash and that
into cash and that bear bear insignificant risk of
insignificant risk of changes changes in value.
in value.
-19-
(Changes in Accounting Policy)
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
1. Accounting Standards for
Treasury Stock and the
Withdrawal of Legal Reserve
In conjunction with the
implementation of "Accounting
Standards for Treasury Stock
and the Withdrawal of Legal
Reserve" (Financial Accounting
Standards No. 1) effective
from April 1, 2002, TMC and
its domestic subsidiaries have
adopted this statement for
this fiscal year. The adoption
of the new standard had no
material impact on the results
for this fiscal year.
In connection with the
amendment of the Regulations
Regarding Consolidated
Financial Statements,
shareholders' equity in the
- ------------------------ ------------------------ consolidated balance sheet and
consolidated statements of
retained earnings and capital
surplus for this fiscal year
have been prepared in
accordance with the amended
regulations.
2. Earnings per share
In conjunction with the
implementation of "Accounting
Standard for Earnings Per
Share" (Financial Accounting
Standards No. 2) and
"Implementation Guidance of
Accounting Standard for
Earnings Per Share"
(Implementation Guidance of
Financial Accounting Standards
No. 4) for the year beginning
on and after April 1, 2002,
TMC has adopted these
statements for this fiscal
year. The impact due to the
adoption of these new
standards is described in (Per
share data).
(Changes in Presentation)
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual
April 1, 2002 through April 1, 2003 through
September 30, 2002 September 30, 2003
- --------------------------------------------------------------------------------------------------------------------
"Commercial paper" is presented as a separate line
item in the semi-annual consolidated balance sheet
because it exceeded 5% of the total of liabilities, --------------------
minority interests and shareholders' equity as of
the end of the semi-annual period.
The line item "Other" under "Current liabilities"
in the semi-annual consolidated balance sheet of
the previous semi-annual period included commercial
paper in the amount of 616,901 million yen.
- --------------------------------------------------------------------------------------------------------------------
-20-
(Additional Information)
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
1.In conjunction with enforcement In conjunction with enforcement
of the Defined Benefit of the Defined Benefit
Enterprise Pension Plan Law, Enterprise Pension Plan Law,
TMC, some of its domestic TMC, some of its domestic
consolidated subsidiaries and consolidated subsidiaries and
domestic affiliates accounted domestic affiliates accounted
for under the equity method for under the equity method
received approval from the received approval from the
Minister of Health, Labor and Minister of Health, Labor and
Welfare, for exemption from the Welfare, for exemption from the
obligation for benefits related obligation for benefits related
to future employee service under to future employee service
the substitutional portion. (TMC under the substitutional
received approval on April 1, portion. (TMC received the
2002). approval on April 1, 2002)
TMC and these subsidiaries and TMC and these subsidiaries and
affiliates applied the affiliates applied the
transitional provision transitional provision
stipulated in paragraph 47-2 of stipulated in paragraph 47-2 of
the "Practical Guidelines of the "Practical Guidelines of
Accounting for Retirement Accounting for Retirement
Benefits (Interim Report)" Benefits (Interim Report)"
(Accounting Committee Report No. (Accounting Committee Report
13 issued by the Japanese No. 13 issued by the Japanese
Institute of Certified Public Institute of Certified Public
Accountants), and recognized an Accountants), and recognized an
extinguishment of retirement extinguishment of retirement
benefit obligation related to benefit obligation related to
the substitutional portion as of the substitutional portion as
the date of the approval. of the date of the approval.
As a result, 30,301 million yen As a result, 32,341 million yen
was recognized as "Equity in was recognized as "Equity in
earnings of affiliates" under earnings of affiliates" under
"Non-operating income", and ------------------------ "Non-operating income", and
186,050 million yen was 235,314 million yen was
recognized as "Gains on return recognized as "Gains on return
of substitutional portion of of substitutional portion of
employees' pension fund" under employees' pension fund" under
"Extraordinary gains" in this "Extraordinary gains" in this
semi-annual period. fiscal year.
Perspective amount to be Perspective amount to be
returned is 354,083 million yen returned is 474,400 million yen
as of September 30, 2002. as of March 31, 2003.
2.From this consolidated
semi-annual period, TMC and its
subsidiaries has adopted the new
standard "Accounting Standard
for Treasury Stock and Reduction
of Legal Reserve" (Financial
Accounting Standards No. 1). The
adoption of the new standard had
no material impact on the
results of this semi-annual
period.
In connection with the amendment
of the Regulations Regarding
Interim Financial Statements,
etc., shareholders' equity in
the semi-annual consolidated
balance sheet and the
semi-annual consolidated
statements of retained earnings
of this semi-annual period have
been prepared in accordance with
the amended regulations.
-21-
Notes to semi-annual consolidated financial statements
(Semi-annual consolidated balance sheets)
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
1. 1.
*1 Accumulated depreciation of *1 Accumulated depreciation of
property, plant and equipment property, plant and equipment
7,770,939 million yen 7,931,514 million yen
*2 Vehicles and delivery equipment *2 Vehicles and delivery
include assets under lease equipment include assets under
contracts (Toyota as lessor) in lease contracts (Toyota as
the amounts of 1,109,561 lessor) in the amounts of
million yen. 1,134,883 million yen.
*3 Fair value of securities held
as collateral of repurchase
agreement transactions, which
TMC and its consolidated
subsidiaries have the right to
dispose of, are 24,999 million
yen.
2. Assets pledged as collateral and 2. Assets pledged as collateral and secured
secured liabilities liabilities
(1) Assets pledged as collateral (1) Assets pledged as collateral
Yen in millions Yen in millions
--------------- ---------------
Notes receivable 42,874 Notes receivable 38,134
Installment credit Installment credit
from dealers 94,699 from dealers 66,013
Buildings and Buildings and
structures 68,954 structures 58,691
Machinery and Machinery and
equipment 18,167 equipment 12,190
Land 103,622 Land 98,248
Other 22,285 Other 27,445
- --------------------------------- ------------------------ ---------------------------------------
Total 350,603 Total 300,723
(2) Secured liabilities (2) Secured liabilities
Yen in millions Yen in millions
----------------- ----------------
Short-term Short-term
borrowings 147,280 borrowings 143,266
Long-term debt 76,378 Long-term debt 56,769
Bonds 94,699 Bonds 66,013
- --------------------------------- ----------------------------------------
Total 318,359 Total 266,048
3. Liabilities for guarantees 3. Liabilities for guarantees
Yen in millions Yen in millions
----------------- ----------------
Debt guarantees Debt guarantees
relate to the related to the
operation of operation of
consolidated consolidated
finance finance
subsidiaries 795,818 subsidiaries 841,871
Other liabilities Other liabilities
for Guarantees 27,532 for guarantees 35,619
Other acts Other acts
similar to similar to
guarantees 16 guarantees 13
- -------------------------------- ------------------------------------------
Total 823,367 Total 877,504
-22-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
4. Notes receivable 4. Notes receivable
Yen in millions Yen in millions
----------------- ----------------
Discounted 12,014 Discounted 17,343
Endorsed 55 Endorsed 11
5. Unexecuted loans under overdraft 5. Unexecuted loans under overdraft
contracts and loan commitments contracts and loan commitments
Unexecuted loans provided by Unexecuted loans provided by
consolidated finance consolidated finance
subsidiaries under overdraft ------------------------ subsidiaries under overdraft
contracts and loan commitments contracts and loan commitment
1,003,915 million yen 1,306,483 million yen
The above loans are not The above loans are not
necessarily fully executed, as necessarily fully executed, as
some of the overdraft contracts some of the overdraft contracts
and loan commitments referred and loan commitments referred
above are contingent upon a above are contingent upon a
satisfactory review of the satisfactory review of the
creditworthiness of the customer. creditworthiness of the
customer.
(Semi-annual consolidated statements of cash flows)
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
1. Reconciliation between cash and 1. Reconciliation between cash and
cash equivalents presented in the cash equivalents presented in the
semi-annual consolidated balance semi-annual consolidated balance
sheets sheets
(September 30, 2002) (March 31, 2003)
Yen in millions Yen in millions
----------------- ------------------------ ----------------
Cash and deposits 1,042,984 Cash and deposits 620,870
Marketable securities 1,447,001 Marketable securities 1,661,978
- ---------------------------------- -------------------------------------------
Total 2,489,986 Total 2,282,848
Time deposits and Time deposits and
securities with securities with
maturities over 3 (596,599) maturities over 3
months months (659,606)
- --------------------------------- -------------------------------------------
Cash and cash Cash and cash
equivalents 1,893,387 equivalents 1,623,241
- --------------------------------------------------------------------------------------------------------------------
-23-
(Lease)
- ------------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
1. Finance lease transactions not 1. Finance lease transactions not
involving a transfer of ownership of involving a transfer of ownership of
leased property to the lessee leased property to the lessee
(1) As lessee (1) As lessee
(a) Amounts equivalent to acquisition (a) Amounts equivalent to acquisition
cost, accumulated depreciation cost, accumulated depreciation
and book value of leased property and book value of leased property
- ------------------------------------------- ----------------------------------------------
Accumu- Accumu-
Acquisi- lated Book Acquisi- lated Book
tion cost deprecia- value tion cost deprecia- value
(Yen in tion (Yen in (Yen in tion (Yen in
millions) (Yen in millions) millions) (Yen in millions)
millions) millions)
- ------------------------------------------- ----------------------------------------------
Machinery Machinery
and 30,389 8,053 22,335 and 31,726 8,468 23,257
equipment equipment
- ------------------------------------------- ----------------------------------------------
Vehicles Vehicles
and 2,797 1,343 1,454 and 7,232 2,637 4,595
delivery delivery
equipment equipment
- ------------------------------------------- ----------------------------------------------
Other 34,032 15,368 18,664 Other 39,141 18,287 20,854
- ------------------------------------------- ----------------------------------------------
Total 67,219 24,765 42,454 Total 78,100 29,392 48,707
- ------------------------------------------- ----------------------------------------------
(b) The amounts equivalent to the (b) The amounts equivalent to the
outstanding future lease payments ------------- outstanding future lease payments
Yen in millions Yen in millions
--------------- ---------------
Due within one year 7,351 Due within one year 8,366
Due after one year 42,207 Due after one year 49,405
- ------------------------------------------- -------------------------------------------
Total 49,558 Total 57,772
- ------------------------------------------- -------------------------------------------
(c) Lease payments, the amounts (c) Lease payments, the amounts
equivalent to depreciation and equivalent to depreciation and
interest expenses interest expenses
Yen in millions Yen in millions
--------------- ---------------
Lease payments 6,113 Lease payments 10,887
Depreciation expenses 5,463 Depreciation expenses 9,830
Interest expenses 1,098 Interest expenses 2,987
(d) Calculation method of the amount (d) Calculation method of the amount
equivalent to depreciation equivalent to depreciation
expenses expenses
The amount equivalent to The amount equivalent to
depreciation expenses is depreciation expenses is
calculated based on the calculated based on the
straight-line method with no straight-line method with no
residual value over the lease residual value over the lease
term term
- ------------------------------------------------------------------------------------------------------------------------------------
-24-
- ------------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
(e) Calculation method of the amount (e) Calculation method of the amount
equivalent to interest expenses equivalent to interest expenses
The amount equivalent to The amount equivalent to
interest expenses is calculated interest expenses is calculated
as the difference between the -------- as the difference between the
total lease payment and the total lease payment and the
amount equivalent to amount equivalent to
acquisition cost of the leased acquisition cost of the leased
property. The allocation of property. The allocation of
the amount equivalent to the amount equivalent to
interset expenses to each interest expenses to each
period is based on the interest period is based on the interest
method. method.
-25-
- ------------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003 selected data
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
(2) As lessor (2) As lessor
(a) Acquisition cost, accumulated (a) Acquisition cost, accumulated
depreciation and book value of depreciation and book value of
leased property included in leased property included in
property, plant and equipment property, plant and equipment
- ------------------------------------------- -------------------------------------------
Accumu- Accumu-
Acquisi- lated Book Acquisi- lated Book
tion cost deprecia- value tion cost deprecia- value
(Yen in tion (Yen in (Yen in tion (Yen in
millions) (Yen in millions millions) (Yen in millions
millions) millions)
- ------------------------------------------- -------------------------------------------
Machinery Machinery
and 17,817 6,590 11,226 and 20,530 7,212 13,317
equipment equipment
- ------------------------------------------- -------------------------------------------
Vehicles Vehicles
and 58,024 29,157 28,866 and 53,045 29,160 23,884
delivery delivery
equipment equipment
- ------------------------------------------- -------------------------------------------
Other 42,181 19,155 23,026 Other 44,100 20,077 24,022
- ------------------------------------------- -------------------------------------------
Total 118,023 54,903 63,119 Total 117,676 56,451 61,224
- ------------------------------------------- -------------------------------------------
(b) The amount equivalent to the (b) The amount equivalent to the
outstanding future lease income outstanding future lease income
Yen in millions Yen in millions
--------------- ---------------
Due within one year 21,902 Due within one year 24,119
Due after one year 44,149 Due after one year 43,571
- ------------------------------------------- ------------------------ -------------------------------------------
Total 66,051 Total 67,691
(c) Lease income, depreciation (c) Lease income, depreciation
expenses and the amount expenses and the amount
equivalent to interest income equivalent to interest income
Yen in millions Yen in millions
--------------- ---------------
Lease income 14,296 Lease income 28,384
Depreciation expenses 9,599 Depreciation expenses 19,851
Interest income 1,215 Interest income 2,806
(d) Calculation method of the (d) Calculation method of the
amount equivalent to interest amount equivalent to interest
income income
The amount equivalent to The amount equivalent to
interest income is calculated as interest income is calculated as
the difference between the total the difference between the total
lease income and estimated lease income and estimated
residual value, and the residual value, and the
acquisition cost of the leased acquisition cost of the leased
property. The allocation of the property. The allocation of the
amount equivalent to interest amount equivalent to interest
income to each period is based income to each period is based
on the interest method. on the interest method.
-26-
- ------------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003 selected data
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ------------------------------------------------------------------------------------------------------------------------------------
2. Operating lease transactions 3. Operating lease transactions
(1) As lessee (1) As lessee
Outstanding future lease payments Outstanding future lease payments
Yen in millions Yen in millions
--------------- ---------------
Due within one year 10,113 Due within one year 9,740
Due after one year 30,675 Due after one year 30,721
- ------------------------------------------- -------------------------------------------
Total 40,788 Total 40,461
---------
(2) As lessor (2) As lessor
Outstanding future lease income Outstanding future lease income
Yen in millions Yen in millions
--------------- ---------------
Due within one year 275,755 Due within one year 281,033
Due after one year 344,899 Due after one year 352,155
- ------------------------------------------- -------------------------------------------
Total 620,655 Total 633,189
-27-
(Securities)
(FY 2003 semi-annual) (As of September 30, 2002)
Securities
1. Bonds with fair value that are classified as be held-to-maturity securities
- ------------------------------------------------------------------------------------------------------------------------------------
Carrying amount
on semi-annual
Category consolidated
balance sheet Fair value Difference
(Yen in millions) (Yen in millions) (Yen in millions)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Government bonds, municipal bonds, etc. - - -
(2) Corporate bonds - - -
(3) Other - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total - - -
- ------------------------------------------------------------------------------------------------------------------------------------
2. Other securities with fair values
- ------------------------------------------------------------------------------------------------------------------------------------
Carrying amount on
Acquisition cost semi-annual Difference
Category (Yen in millions) consolidated (Yen in millions)
balance sheet
(Yen in millions)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Equity securities 413,640 628,744 215,104
(2) Bonds
Government bonds, municipal bonds, etc. 406,979 417,605 10,626
Corporate bonds 912,449 925,076 12,627
Other - - -
(3) Other 392,166 391,691 (475)
- ------------------------------------------------------------------------------------------------------------------------------------
Total 2,125,235 2,363,117 237,882
- ------------------------------------------------------------------------------------------------------------------------------------
3. The main categories of securities not practicable to determining fair value
and their carrying amounts on the semi-annual consolidated balance sheets:
(Yen in millions)
(1) Bonds classified as be held-to-maturity securities
Government bonds, municipal bonds, etc. -
Corporate bonds -
Other -
(2) Other securities
Unlisted equity securities (excluding over-the-counter 44,922
stocks)
Unlisted bonds
Government bonds, municipal bonds, etc. -
Corporate bonds 8,432
Other unlisted securities 574,102
-28-
(FY2003) (As of March 31, 2003)
Securities
1. Bonds with fair value that are classified as be held-to-maturity securities
- ------------------------------------------------------------------------------------------------------------------------------------
Carrying amount on
consolidated
Category balance sheet Fair value Difference
(Yen in millions) (Yen in millions) (Yen in millions)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Government bonds, municipal bonds, etc. - - -
(2) Corporate bonds - - -
(3) Other - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total - - -
- ------------------------------------------------------------------------------------------------------------------------------------
2. Other securities with fair values
- ------------------------------------------------------------------------------------------------------------------------------------
Carrying amount
Acquisition cost on Difference
Category (Yen in millions) consolidated (Yen in millions)
balance sheet
(Yen in millions)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Equity securities 367,184 487,322 120,138
(2) Bonds
Government bonds, municipal bonds, etc. 1,508,258 1,519,977 11,719
Corporate bonds 685,473 697,088 11,615
Other - - -
(3) Other 262,898 263,146 248
- ------------------------------------------------------------------------------------------------------------------------------------
Total 2,823,815 2,967,534 143,719
3. The main categories of securities not practicable to determining fair value
and their carrying amounts on the consolidated balance sheets:
(Yen in millions)
(1) Bonds classified as be held-to-maturity securities
Government bonds, municipal bonds, etc. -
Corporate bonds -
Other -
(2) Other securities
Unlisted equity securities (excluding over-the-counter 55,676
stocks)
Unlisted bonds
Government bonds, municipal bonds, etc. -
Corporate bonds 5,787
Other unlisted securities 237,802
-29-
(Derivative transaction)
The contract amount, fair value and unrealized gains (losses) of derivative
transactions
FY2003 semi-annual FY2003
(September 30, 2002) (March 31, 2003)
Type of Type of Contract Fair value Unrealized gains/ Contract amount Fair value Unrealized
underling transaction amount (Yen in losses (Yen in (Yen in gains/losses
(Yen in millions) (Yen in millions) millions) millions) (Yen in millions)
millions)
Currency Foreign exchange
forward contracts
Selling
Japanese yen 1,000 (1) (1) - - -
British pound - - - - - -
Other 10,124 (51) (51) 19,928 (280) (280)
Buying
U.S. dollar 14,860 (81) (81) 12,033 (47) (47)
Other 1,594 16 16 2,180 10 10
Swap transactions
Receive U.S.
dollar and pay 118,482 (4,877) (4,877) 2,999 10 10
Japanese yen
Receive U.S.
dollar and pay 4,308 741 741 4,646 324 324
Euro
Receive Euro and 111,450 (3,817) (3,817) - - -
pay U.S. dollars
Other 87,957 (766) (766) 137,811 3,197 3,197
Interest Swap transactions
rate
Receive fixed, 652,802 12,846 12,846 673,027 9,332 9,332
pay floating
Receive floating, 1,544,884 (43,287) (43,287) 1,729,098 (40,578) (40,578)
pay fixed
Receive floating, 354,068 762 762 342,930 150 150
pay floating
Options
Cap purchased 956,280 4,648 4,648 1,093,820 4,022 4,022
Total - - (33,866) - - (23,858)
(Notes)
1. Derivative transactions to which the hedge accounting is applied are not
included in the above.
2. Derivative transactions allocated to receivables or payables denominated in
foreign currencies in accordance with the "Accounting Standard for Foreign
Currency Transaction, etc." are not included in the above.
-30-
( Segment information)
- -----------------------------------------------------------------------------------------------------------------------------------
[Segment operating results and assets]
FY 2003 semi-annual (April 1, 2002 through September 30, 2002)
Intersegment
Elimination/ Consolidated
Financial Unallocated Total
Automotive Services All Other Total Amount (Yen
(Yen in (Yen in (Yen in (Yen in (Yen in in
millions) millions) millions) millions) millions) millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to external customers 7,279,136 341,737 265,807 7,886,681 - 7,886,681
(2) Intersegment sales and
transfers 3,173 8,444 131,226 142,844 ( 142,844) -
- -----------------------------------------------------------------------------------------------------------------------------------
Total 7,282,310 350,182 397,034 8,029,526 ( 142,844) 7,886,681
Operating expenses 6,548,048 347,568 394,463 7,290,080 ( 134,226) 7,155,853
- -----------------------------------------------------------------------------------------------------------------------------------
Operating income 734,261 2,614 2,570 739,446 ( 8,618) 730,827
- -----------------------------------------------------------------------------------------------------------------------------------
(Notes) 1. Reporting segments
Reporting segments are defined based on the type of products and
services provided
2. Main products and services of each reporting segment
Automotive -- Passenger cars, trucks, buses, etc.
Financial services -- Financing operations, etc.
All other -- Housing, information technologies, etc.
3. The following table is a breakdown by segment of the assets, depreciation expenses and capital expenditure belonging to
each segment.
Unallocated corporate assets included in "Intersegment Elimination/Unallocated Amount" is (Y)3,354,735 million, and
consists primarily of funds such as cash and deposits, marketable securities and portion of investments in securities of
TMC.
- -----------------------------------------------------------------------------------------------------------------------------------
Intersegment
Elimination/ Consolidated
Financial Unallocated Total
Automotive Services All Other Total Amount (Yen
(Yen in (Yen in (Yen in (Yen in (Yen in in
millions) millions) millions) millions) millions) millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Segment assets 9,073,001 7,198,614 809,616 17,081,232 2,875,704 19,956,937
Depreciation 353,238 53,364 9,441 416,044 - 416,044
Capital expenditures for 495,270 224,332 17,730 737,333 - 737,333
segment assets
- -----------------------------------------------------------------------------------------------------------------------------------
-31-
(Note) 4. Semi-annual consolidated financial statements on non-financial
services business and financial services business
(a) Semi-annual consolidated balance sheets as on non-financial
services business and financial services business
- --------------------------------------------------------------------------------------------------------------------
FY 2003 semi-annual
September 30, 2002
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Assets)
(Non-Financial Services Business)
1 Current assets
1 Cash and deposits 947,523
2 Trade notes and accounts receivable 1,337,361
3 Marketable securities 1,440,996
4 Inventories 986,311
5 Other 1,200,850
----------
Total current assets 5,913,043 29.6
2 Fixed assets
(1) Property, plant and equipment 4,354,678 21.8
(2) Investments and other assets
1 Investments in securities 2,381,021
2 Long-term loans 374,268
3 Other 481,959
------------
Total investments and other assets 3,237,249 16.2
------------
Total fixed assets 7,591,927 38.0
------------
Total assets 13,504,971 67.6
(Financial Services Business)
1 Current assets
1 Cash and deposits 95,460
2 Marketable securities 6,814
3 Installment credits from dealers 3,362,829
4 Other 1,762,115
-----------
Total current assets 5,227,220 26.2
2 Fixed assets
(1) Property, plant and equipment 1,052,571 5.3
(2) Intangible fixed assets 4,116 0.0
(3) Investments and other assets
1 Investment in securities 218,457
2 Long-term loans 570,747
3 Other 125,500
------------
Total investments and other assets 914,705 4.6
------------
Total fixed assets 1,971,393 9.9
------------
Total assets 7,198,614 36.1
(Elimination)
Elimination of assets (746,648) (3.7)
(Consolidated)
------------
Total assets 19,956,937 100.0
------------
- ------------------------------------------------------------------------------------------------------------------
-32-
- --------------------------------------------------------------------------------------------------------------------
FY 2003 semi-annual
September 30, 2002
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Liabilities)
(Non-Financial Services Business)
1 Current liabilities
1 Trade notes and accounts payable 1,413,256
2 Current portion of bonds 69,899
3 Short-term borrowings 866,630
4 Accrued expenses and other accounts payable 1,294,760
5 Income taxes payable 306,821
6 Other 462,871
-----------
Total current liabilities 4,414,239 22.1
2 Long-term liabilities
1 Bonds and convertible bonds 500,400
2 Long-term debt 236,640
3 Other 811,818
-----------
Total long-term liabilities 1,548,859 7.8
-----------
Total liabilities 5,963,099 29.9
(Financial Services Business)
1 Current liabilities
1 Current portion of bonds 939,619
2 Short-term borrowings 664,435
3 Commercial paper 1,077,307
4 Accrued expenses and other accounts payable 139,106
5 Income taxes payable 2,530
6 Other 450,598
-----------
Total current liabilities 3,273,597 16.4
2 Long-term liabilities
1 Bonds 2,730,627
2 Long-term debt 456,094
3 Other 297,498
-----------
Total long-term liabilities 3,484,220 17.4
-----------
Total liabilities 6,757,817 33.8
(Elimination) (747,130) (3.7)
Elimination of liabilities
-----------
(Consolidated) 11,973,785 60.0
Total liabilities
-----------
(Minority interest in consolidated subsidiaries)
(Consolidated) 472,094 2.4
Minority interest in consolidated subsidiaries
-----------
(Shareholders' equity)
(Consolidated)
1 Common stock 397,049 2.0
2 Capital surplus 415,769 2.1
3 Retained earnings 6,884,863 34.5
4 Unrealized gains on other securities, net 151,609 0.7
5 Translation adjustments (83,968) (0.4)
6 Treasury stock (254,265) (1.3)
-----------
Total shareholder's equity 7,511,057 37.6
-----------
(Consolidated) 19,956,937 100.0
Total liabilities, minority interest in
consolidated subsidiaries and shareholders'
equity
-----------
- -----------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Segment assets in the non-financial services business include
unallocated corporate assets.
2. "Trade notes and accounts receivable", "Inventories" and "Trade notes
and accounts payable" in the financial services business were
previously presented as separate line items. As these amounts are not
material, starting
-33-
from this semi-annual period "Trade notes and accounts receivable"
and "Inventories" are included in "Other" in current assets, and
"Trade notes and accounts payable" is included in "Other" in
current liabilities. On the other hand, "Commercial paper" in the
financial services business was previously included in "Other" in
current liabilities. As this item has increased in materiality, it
is presented as a separate line item starting from this semi-annual
period.
-34-
(b) Semi-annual consolidated statements of income on non-financial
services business and financial services business
- --------------------------------------------------------------------------------------------------------------------
FY 2003 semi-annual
April 1, 2002 through September 30, 2002
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Net revenues 7,543,567 100.0
2 Cost of revenues 5,697,351 75.5
---------
Gross profit 1,846,216 24.5
3 Selling, general and administrative expenses 1,107,360 14.7
---------
Operating income 738,855 9.8
4 Non-operating income 153,290 2.0
5 Non-operating expenses 95,605 1.2
---------
Ordinary income 796,540 10.6
6 Extraordinary gains
Gains on return of substituted portion of employee 186,050 186,050 2.4
pension fund
--------------------------------
Income before income taxes and minority interest 982,591 13.0
in consolidated subsidiaries
Income taxes 395,175 5.2
Minority interest in consolidated subsidiaries 32,519 0.4
-----------------
Net income 554,895 7.4
(Financial Services Business)
1 Net revenues 350,182 100.0
2 Cost of revenues 232,141 66.3
-----------------
Gross profit 118,040 33.7
3 Selling, general and administrative expenses 115,426 33.0
-----------------
Operating income 2,614 0.7
4 Non-operating income 5,522 1.6
5 Non-operating expenses 4,543 1.3
-----------------
Ordinary income 3,592 1.0
-----------------
Income before income taxes and minority interest 3,592 1.0
in consolidated subsidiaries
Income taxes 594 0.1
Minority interest in consolidated subsidiaries 272 0.1
-----------------
Net income 2,725 0.8
(Elimination)
Elimination of net income (3,823) -
(Consolidated)
-----------------
Net income 553,797 -
-----------------
- ---------------------------------------------------------------------------------------------------------------------
-35-
(c) Semi-annual consolidated statements of cash flows on
non-financial services business and financial services business
- ----------------------------------------------------------------------------------------------------------------------------------
Y2003 semi-annual
April 1, 2002 through
September 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Item Yen in millions
- -----------------------------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Cash flows from operating activities
1 Income before income taxes and minority interest in consolidated subsidiaries 982,591
2 Depreciation 362,679
3 Losses on disposal of fixed assets 25,680
4 Decrease in allowance for retirement benefits (182,293)
5 Interests and dividend income (30,473)
6 Interest expenses 21,710
7 Equity in earnings of affiliates (46,873)
8 Decrease in trade notes and accounts receivable 247,847
9 Decrease in inventories 7,805
10 Decrease in trade notes and accounts payable (46,458)
11 Other 95,493
-------------------
Sub total 1,437,710
12 Interest and dividends received 38,029
13 Interest paid (21,398)
14 Income taxes paid (376,974)
- ----------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 1,077,366
- ----------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Net decrease in time deposits 663
2 Purchases of marketable securities and investments in securities (388,605)
3 Proceeds from sales of marketable securities and investments in securities 77,796
4 Proceeds on maturity of marketable securities and investments in securities 386,119
5 Additions to property, plant and equipment (excluding vehicles for lease) (509,178)
6 Additions to vehicles for lease (57,793)
7 Proceeds from sales of property, plant and equipment (excluding vehicles for lease) 25,434
8 Proceeds from sales of vehicles for lease 19,839
9 Other (20,566)
- ----------------------------------------------------------------------------------------------------------------
Cash flows from investing activities (466,291)
- ----------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Net decrease in short-term borrowings (61,792)
2 Proceeds from origination of long-term debt 8,675
3 Payments for long-term debt (33,992)
4 Purchase of treasury stock (169,213)
5 Dividends paid (53,342)
6 Other 7,973
- ----------------------------------------------------------------------------------------------------------------
Cash flows from financing activities (301,690)
- ----------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (32,659)
- ----------------------------------------------------------------------------------------------------------------
5 Net increase in cash and cash equivalents 276,725
- ----------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 1,541,940
- ----------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 1,818,666
- ----------------------------------------------------------------------------------------------------------------
-36-
- ----------------------------------------------------------------------------------------------------------------------------------
Y2003 semi-annual
April 1, 2002 through
September 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Item Yen in millions
- -----------------------------------------------------------------------------------------------------------------------------------
(Financial Services Business)
1 Cash flows from operating activities
1 Income before income taxes and minority interest in consolidated subsidiaries 3,592
2 Depreciation 53,364
3 Equity in earnings of affiliates (4,754)
4 Increase in trade notes and accounts receivable (400,729)
5 Increase in loans receivable of consolidated financial subsidiaries (98,704)
6 Other (94,232)
---------------------------------------
Sub total (541,463)
7 Interests and dividends received 1,766
8 Income taxes paid (5,666)
- ------------------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities (545,364)
- ------------------------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Net increase in time deposits (11,911)
2 Purchases of marketable securities and investments in securities (95,707)
3 Proceeds from sales of marketable securities and investments in securities 29,836
4 Proceeds on maturity of marketable securities and investments in securities 76,127
5 Additions to property, plant and equipment (excluding vehicles for lease) (24,594)
6 Additions to vehicles for lease (199,084)
7 Proceeds from sales of property, plant and equipment (excluding vehicles for lease) 6,171
8 Proceeds from sales of vehicles for lease 106,758
9 Other 17,900
- ------------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities (94,502)
- ------------------------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Net increase in short-term borrowings 29,242
2 Net increase in commercial paper 210,671
3 Proceeds from origination of long-term debt 47,942
4 Payments for long-term debt (38,451)
5 Proceeds from issuance of bonds 691,727
6 Payments for redemption of bonds (364,453)
- ------------------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities 576,679
- ------------------------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (8,277)
- ------------------------------------------------------------------------------------------------------------------------------------
5 Net decrease in cash and cash equivalents (71,464)
- ------------------------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 146,185
- ------------------------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 74,721
---------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(Consolidated)
1 Effect of exchange rate changes on cash and cash equivalents (40,937)
- ------------------------------------------------------------------------------------------------------------------------------------
2 Net increase in cash and cash equivalents 205,261
- ------------------------------------------------------------------------------------------------------------------------------------
3 Cash and cash equivalents at beginning of period 1,688,126
- ------------------------------------------------------------------------------------------------------------------------------------
4 Cash and cash equivalents at end of period 1,893,387
---------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
-37-
- -----------------------------------------------------------------------------------------------------------------------------------
FY2003 (April 1, 2002 through March 31, 2003)
- -----------------------------------------------------------------------------------------------------------------------------------
Intersegment
Financial All Other Total Elimination/ Consolidated
Automotive Services (Yen in (Yen in Unallociated Total
(Yen in (Yen in millions) millions) Amount (Yen in
millions millions) (Yen in millions) millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to external customers 14,788,940 700,961 564,387 16,054,290 - 16,054,290
(2) Intersegment sales and 12,337 19,045 307,564 338,947 ( 338,947) -
transfer
- -----------------------------------------------------------------------------------------------------------------------------------
Total 14,801,278 720,007 871,952 16,393,238 ( 338,947) 16,054,290
Operating Expenses 13,468,917 691,486 857,569 15,017,973 ( 327,363) 14,690,610
- -----------------------------------------------------------------------------------------------------------------------------------
Operating Income 1,332,360 28,520 14,383 1,375,264 ( 11,584) 1,363,679
- -----------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Reporting segments
Reporting segments are defined based on the type of products and services provided
2. Main products and services of each segment
Automotive -- Passenger cars, trucks, buses, etc.
Financial services -- Financing operations, etc.
All other -- Housing, information technologies, etc.
3. The following table is a breakdown by segment of the assets, depreciation expenses and capital expenditure belonging to
each segment.
Unallocated corporate assets included in "Intersegment Elimination/Unallocated Amount" is 3,136,008 million yen, and
consists primarily of funds such as cash and deposits, marketable securities and portion of investments in securities of
TMC.
- -----------------------------------------------------------------------------------------------------------------------------------
Intersegment
Financial All Other Total Elimination/ Consolidated
Automotive Services (Yen in (Yen in Unallociated Total
(Yen in (Yen in millions) millions) Amount (Yen in
millions millions) (Yen in millions) millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Segment assets 9,617,993 7,657,144 857,739 18,132,877 2,609,508 20,742,386
Depreciation 722,742 109,151 19,740 851,634 - 851,634
Capital expenditures for 1,013,586 470,863 52,708 1,537,157 - 1,537,157
segment assets
- ------------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
-38-
(Note) 4. Consolidated financial statements on non-financial services business
and financial services business
(a) Consolidated balance sheets on non-financial services business and
financial services business
- -----------------------------------------------------------------------------------------------------------------------------
FY2003
March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- -----------------------------------------------------------------------------------------------------------------------------
(Assets)
(Non-Financial Services Business)
1 Current assets
1 Cash and deposits 443,913
2 Trade notes and accounts receivable 1,599,344
3 Marketable securities 1,655,596
4 Inventories 1,072,947
5 Other 1,293,207
---------------------------
Total current assets 6,065,008 29.2
2 Fixed assets
(1) Property, plant and equipment 4,447,518 21.5
(2) Investments and other assets
1 Investments in securities 2,422,902
2 Long-term loans 327,945
3 Other 590,028
---------------------------
Total investments and other assets 3,340,877 16.1
---------------------------
Total fixed assets 7,788,396 37.6
---------------------------
Total assets 13,853,404 66.8
(Financial Services Business)
1 Current assets
1 Cash and deposits 176,957
2 Marketable securities 6,381
3 Installment credits from dealers 3,320,405
4 Other 2,038,920
---------------------------
Total current assets 5,542,664 26.7
2 Fixed assets
(1) Property, plant and equipment 1,059,466 5.1
(2) Intangible fixed assets 5,123 0.0
(3) Investments and other assets
1 Investments in securities 273,036
2 Long-term loans 610,249
3 Other 166,603
---------------------------
Total investments and other assets 1,049,889 5.1
---------------------------
Total fixed assets 2,114,479 10.2
---------------------------
Total assets 7,657,144 36.9
(Elimination)
Elimination of assets (768,162) (3.7)
(Consolidated)
---------------------------
Total assets 20,742,386 100.0
---------------------------
- -----------------------------------------------------------------------------------------------------------------------------
-39-
- -----------------------------------------------------------------------------------------------------------------------------
FY2003
March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- -----------------------------------------------------------------------------------------------------------------------------
(Liabilities)
(Non-Financial Services Business)
1 Current liabilities
1 Trade notes and accounts payable 1,570,853
2 Current portion of bonds 63,308
3 Short-term borrowings 843,193
4 Accrued expenses and other accounts payable 1,235,818
5 Income taxes payable 310,232
6 Other 713,471
---------------------------
Total current liabilities 4,736,878 22.8
2 Long-term liabilities
1 Bonds and convertible bonds 500,400
2 Long-term debt 247,730
3 Other 842,864
---------------------------
Total long-term liabilities 1,590,995 7.7
---------------------------
Total liabilities 6,327,874 30.5
(Financial Services Business)
1 Current liabilities
1 Current portion of bonds 1,060,727
2 Short-term borrowings 667,814
3 Commercial papers 1,031,271
4 Accrued expenses and other accounts payable 154,595
5 Income taxes payable 6,962
6 Other 483,151
---------------------------
Total current liabilities 3,404,522 16.4
2 Long-term liabilities
1 Bonds 3,019,944
2 Long-term debt 510,829
3 Other 291,392
---------------------------
Total long-term liabilities 3,822,166 18.4
---------------------------
Total liabilities 7,226,689 34.8
(Elimination) (768,651) (3.7)
Elimination of liabilities
---------------------------
(Consolidated) 12,785,911 61.6
Total liabilities
(Minority interest in consolidated subsidiaries)
(Consolidated) 496,207 2.4
Minority interest in consolidated subsidiaries
(Shareholders' equity)
(Consolidated)
1 Common stock 397,049 1.9
2 Capital surplus 418,401 2.0
3 Retained earnings 7,219,896 34.8
4 Unrealized gains on other securities, net 78,630 0.4
5 Translation adjustments (112,350) (0.5)
6 Treasury stock (541,360) (2.6)
---------------------------
Total Shareholder's equity 7,460,267 36.0
---------------------------
(Consolidated)
Total liabilities, minority interest in
consolidated subsidiaries and shareholders' 20,742,386 100.0
equity
---------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Note 1 Segment assets in the non-financial services business include
unallocated corporate assets.
2 "Commercial papers" in the financial services business was
previously included in "Other" in current liabilities. Due to the fact
that this amount became material as of March 31, 2003, it has been
presented as a separate line item.
-40-
(b) Consolidated statements of income on non-financial services
business and financial services business
- -----------------------------------------------------------------------------------------------------------------------------
FY2003
April 1, 2002 through
March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
- -----------------------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Net revenues 15,362,780 100.0
2 Cost of revenues 11,730,912 76.4
---------------------------
Gross profit 3,631,868 23.6
3 Selling, general and administrative expenses 2,279,566 14.8
---------------------------
Operating income 1,352,301 8.8
4 Non-operating income 287,566 1.9
5 Non-operating expenses 256,878 1.7
---------------------------
Ordinary income 1,382,989 9.0
---------------------------
6 Extraordinary gains
Gains on return of substitutional 235,314 235,314 1.5
portion of employees' pension fund
------------------------------------------
Income before income taxes and minority interest 1,618,304 10.5
in consolidated subsidiaries
Income taxes 637,385 4.2
Minority interest in consolidated 53,279 0.3
subsidiaries
---------------------------
Net income 927,639 6.0
(Financial Services Business)
1 Net revenues 720,007 100.0
2 Cost of revenues 428,327 59.5
---------------------------
Gross profit 291,679 40.5
3 Selling, general and administrative expenses 263,158 36.5
---------------------------
Operating income 28,520 4.0
4 Non-operating income 12,773 1.8
5 Non-operating expenses 9,824 1.4
---------------------------
Ordinary income 31,468 4.4
---------------------------
Income before income taxes and minority interest 31,468 4.4
in consolidated subsidiaries
Income taxes 13,790 1.9
Minority interest in consolidated 575 0.1
subsidiaries
---------------------------
Net income 17,102 2.4
(Elimination)
Elimination of net income (71) -
(Consolidated)
---------------------------
Net income 944,671 -
---------------------------
- -----------------------------------------------------------------------------------------------------------------------------
-41-
(c) Consolidated statements of cash flows on non-financial services
business and financial services business
- -----------------------------------------------------------------------------------------------------------------------------
FY2003
April 1, 2002 through
March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
Item Yen in millions
- -----------------------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Cash flows from operating activities
1 Income before income taxes and minority interest in 1,618,304
consolidated subsidiaries
2 Depreciation 742,482
3 Losses on disposal of fixed assets 53,576
4 Decrease in allowance for retirement benefits (113,836)
5 Interest and dividend income (55,078)
6 Interest expenses 48,748
7 Equity in earnings of affiliates (70,649)
8 Decrease in trade notes and accounts receivable 2,952
9 Increase in inventories (25,842)
10 Increase in trade notes and accounts payable 105,652
11 Other 150,494
--------------------------------------
Sub total 2,456,804
12 Interests and dividends received 69,798
13 Interests paid (49,285)
14 Income taxes paid (649,282)
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities 1,828,034
- -----------------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Net increase in time deposits (19,935)
2 Purchases of marketable securities and investments in (860,913)
securities
3 Proceeds from sales of marketable securities and investments 146,331
in securities
4 Proceeds on maturity of marketable securities and 591,922
investments in securities
5 Additions to property, plant and equipment (excluding vehicles for lease) (964,338)
6 Additions to vehicles for lease (121,227)
7 Proceeds from sales of property, plant and equipment (excluding 52,929
vehicles for lease)
8 Proceeds from sales of vehicles for lease 61,222
9 Other (53,639)
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities (1,167,647)
- -----------------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Net decrease in short-term borrowings (104,607)
2 Proceeds from origination of long-term debt 39,447
3 Payments for long-term debt (82,090)
4 Purchase of treasury stock (454,611)
5 Dividends paid (109,330)
6 Other 11,982
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities (699,209)
- -----------------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (34,172)
- -----------------------------------------------------------------------------------------------------------------------------
5 Net decrease in cash and cash equivalents (72,995)
- -----------------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of year 1,541,940
- -----------------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of year 1,468,944
-------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
-42-
- -----------------------------------------------------------------------------------------------------------------------------
FY2003
April 1, 2002 through
March 31, 2003
- -----------------------------------------------------------------------------------------------------------------------------
Item Yen in millions
- -----------------------------------------------------------------------------------------------------------------------------
(Financial Services Business)
1 Cash flows from operating activities
1 Income before income taxes and minority interest in 31,468
consolidated subsidiaries
2 Depreciation 109,151
3 Equity in earnings of affiliates (11,317)
4 Increase in trade notes and accounts receivable (367,213)
5 Increase in loans receivable of consolidated finance subsidiaries (407,186)
6 Other 153,296
-------------------------------------
Sub total (491,800)
7 Interests and dividends received 1,766
8 Income taxes paid (8,526)
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities (498,560)
- -----------------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Net increase in time deposits (12,259)
2 Purchases of marketable securities and investments in (250,670)
securities
3 Proceeds from sales of marketable securities and investments 62,444
in securities
4 Proceeds on maturity of marketable securities and 132,059
investments in securities
5 Additions to property, plant and equipment (excluding vehicles for lease) (48,465)
6 Additions to vehicles for lease (419,718)
7 Proceeds from sales of property, plant and equipment (excluding 11,144
vehicles for lease)
8 Proceeds from sales of vehicles for lease 222,617
9 Other 35,365
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities (267,482)
- -----------------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Net decrease in short-term borrowings (45,124)
2 Net increase in commercial papers 159,080
3 Proceeds from origination of long-term debt 166,768
4 Payments for long-term debt (82,508)
5 Proceeds from issuance of bonds 1,414,564
6 Payments for redemption of bonds (830,698)
- -----------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities 782,080
- -----------------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (7,925)
- -----------------------------------------------------------------------------------------------------------------------------
5 Net increase in cash and cash equivalents 8,111
- -----------------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of year 146,185
- -----------------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of year 154,297
-------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
(Consolidated)
1 Effect of exchange rate changes on cash and cash equivalents (42,098)
- -----------------------------------------------------------------------------------------------------------------------------
2 Net decrease in cash and cash equivalents (64,884)
- -----------------------------------------------------------------------------------------------------------------------------
3 Cash and cash equivalents at beginning of year 1,688,126
- -----------------------------------------------------------------------------------------------------------------------------
4 Cash and cash equivalents at end of year 1,623,241
-------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
-43-
- --------------------------------------------------------------------------------------------------------------------------------
[Geographic information]
FY2003 semi-annual (April 1, 2002 through September 30, 2003)
- --------------------------------------------------------------------------------------------------------------------------------
Other Intersegment
North Foreign Elimination/ Consolidated
Japan America Europe Countries Total Unallociated Total
(Yen in (Yen in (Yen in (Yen in (Yen in Amount (Yen in
millions) millions) millions) millions) millions) (Yen in millions)
millons)
- --------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to external 3,300,299 3,091,451 714,199 780,731 7,886,681 - 7,886,681
customers
(2) Intersegment sales and 2,088,302 127,371 32,043 43,169 2,290,887 (2,290,887) -
transfers
- --------------------------------------------------------------------------------------------------------------------------------
Total 5,388,602 3,218,822 746,243 823,901 10,177,568 (2,290,887) 7,886,691
Operating Expenses 4,852,733 3,039,678 740,825 799,339 9,432,577 (2,276,723) 7,155,853
- --------------------------------------------------------------------------------------------------------------------------------
Operating Income 535,868 178,144 5,417 24,561 744,991 (14,163) 730,827
- --------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Reporting segments
Reporting segments are defined based on geographic proximity.
2. Main countries and regions in each reporting segment
North America -- United States of America, Canada
Europe -- Belgium, Germany, United Kingdom
Other foreign countries -- Thailand, Australia
3. The following table is a breakdown of the assets belonging to each reporting segment.
Unallocated corporate assets included in "Intersegment Elimination/Unallocated Amount" is 3,354,735 yen million, and
consists primarily of funds such as cash and deposits, marketable securities and portion of investments in securities of
TMC.
- --------------------------------------------------------------------------------------------------------------------------------
Other Intersegment
North Foreign Elimination/ Consolidated
Japan America Europe Countries Total Unallociated Total
(Yen in (Yen in (Yen in (Yen in (Yen in Amount (Yen in
millions) millions) millions) millions) millions) (Yen in millions)
millons)
- --------------------------------------------------------------------------------------------------------------------------------
Assets 8,928,115 6,457,512 1,301,488 967,875 17,654,992 2,301,945 19,956,937
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
-44-
- --------------------------------------------------------------------------------------------------------------------------------
FY2003 (April 1, 2002 through March 31, 2003)
- --------------------------------------------------------------------------------------------------------------------------------
Other Intersegment
North Foreign Elimination/ Consolidated
Japan America Europe Countries Total Unallociated Total
(Yen in (Yen in (Yen in (Yen in (Yen in Amount (Yen in
millions) millions) millions) millions) millions) (Yen in millions)
millons)
- --------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to external 6,990,384 5,973,581 1,505,895 1,584,428 16,054,290 - 16,054,290
customers
(2) Intersegment sales and 4,274,841 289,118 85,137 111,381 4,760,478 (4,760,478) -
transfers
- --------------------------------------------------------------------------------------------------------------------------------
Total 11,265,225 6,262,699 1,591,033 1,695,810 20,814,679 (4,760,478) 16,054,290
Operating Expenses 10,232,412 5,972,908 1,587,128 1,643,300 19,435,749 (4,745,139) 14,690,610
- --------------------------------------------------------------------------------------------------------------------------------
Operating Income 1,032,813 289,791 3,904 52,509 1,379,019 ( 15,339) 1,363,679
- --------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Reporting segments
Reporting segments are defined based on geographic proximity.
2. Main countries and regions in each reporting segment
North America -- United States of America, Canada
Europe -- Belgium, Germany, United Kingdom
Other foreign countries -- Thailand, Australia
3. The following table is a breakdown of the assets belonging to each reporting segment.
Unallocated corporate assets included in "Intersegment Elimination/Unallocated Amount" is 3,136,008 yen million, and
consists primarily of funds such as cash and deposits, marketable securities and portion of investments in securities of
TMC.
- --------------------------------------------------------------------------------------------------------------------------------
Other Intersegment
North Foreign Elimination/ Consolidated
Japan America Europe Countries Total Unallociated Total
(Yen in (Yen in (Yen in (Yen in (Yen in Amount (Yen in
millions) millions) millions) millions) millions) (Yen in millions)
millons)
- --------------------------------------------------------------------------------------------------------------------------------
Assets 9,474,768 6,577,056 1,557,523 1,211,312 18,820,660 1,921,725 20,742,386
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
-45-
- --------------------------------------------------------------------------------------------------------------------------------
[Overseas Sales]
FY 2003 semi-annual (April 2002 through September 2002)
- --------------------------------------------------------------------------------------------------------------------------------
Other Foreign
North America Europe Countries Total
- --------------------------------------------------------------------------------------------------------------------------------
1 Overseas sales 3,216,881 717,383 1,328,687 5,262,952
(Yen in millions)
- --------------------------------------------------------------------------------------------------------------------------------
2 Consolidated sales 7,886,681
(Yen in millions)
- --------------------------------------------------------------------------------------------------------------------------------
3 Ratio of overseas sales to 40.8 9.1 16.8 66.7
consolidated sales (%)
- --------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Reporting segments
Reporting segments are defined based on geographic proximity.
2. Main countries and regions in each reporting segment
North America -- United States of America, Canada
Europe -- Germany, United Kingdom
Other foreign countries -- Thailand, Australia
3. Overseas sales shows revenues recorded at TMC and its consolidated subsidiaries in countries or regions outside of Japan.
FY 2003 (April 1, 2002 through March 31, 2003)
- --------------------------------------------------------------------------------------------------------------------------------
Other Foreign
North America Europe Countries Total
- --------------------------------------------------------------------------------------------------------------------------------
1 Overseas sales 6,243,637 1,547,389 2,666,889 10,457,916
(Yen in millions)
- --------------------------------------------------------------------------------------------------------------------------------
2 Consolidated sales 16,054,290
(Yen in millions)
- --------------------------------------------------------------------------------------------------------------------------------
3 Ratio of overseas sales to 38.9 9.6 16.6 65.1
consolidated sales (%)
- --------------------------------------------------------------------------------------------------------------------------------
(Notes)
1. Reporting segments
Reporting segments are defined based on geographic proximity.
2. Main countries and regions in each reporting segments
North America -- United States of America, Canada
Europe -- Germany, United Kingdom
Other foreign countries -- Thailand, Australia
3. Overseas sales shows revenues recorded at TMC and its consolidated subsidiaries in countries or regions outside of Japan.
- --------------------------------------------------------------------------------------------------------------------------------
-46-
(Per Share Data)
- -------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- -------------------------------------------------------------------------------------------------------------------------------
1 Net assets per share 1 Net assets per share
2,179.68 yen 2,226.34 yen
2 Basic net income per share for 2 Basic net income per share
semi-annual period
272.75 yen
158.54 yen
3 Diluted net income per share for 3 Diluted net income per share
semi-annual period
272.73 yen
158.54 yen
(Additional Information) TMC has adopted "Accounting
TMC has adopted "Accounting Standard for Earnings Per Share"
Standard for Earnings Per Share" (Financial Accounting Standards
(Financial Accounting Standards No.2) and "Implementation
No.2) and "Implementation Guidance of Accounting Standard
Guidance of Accounting Standard for Earnings Per Share"
for Earnings Per Share" ______ (Implementation Guidance of
(Implementation Guidance of Financial Accounting Standards No.
Financial Accounting Standards No. 4) for this fiscal year.
4) for this period.
The following represents the per
The following represents the per share data for the year ended March
share data for the period ended 31, 2003, as if it was calculated
September 30, 2002, as if it was based on the previous method.
calculated based on the previous
method.
1 Net assets per share
1 Net assets per share 2,192.85 yen
2,158.47 yen 2 Basic net income per share
2 Basic net income per share for 269.48 yen
semi-annual period
3 Diluted net income per share
156.15 yen
269.48 yen
3 Diluted net income per share for
semi-annual period
156.15 yen
- -------------------------------------------------------------------------------------------------------------------------------
-47-
(Note) Bases for the calculation of basic and diluted net income per
share for the (semi-annual) period are as follows:
- ----------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
(Yen in millions) (Yen in millions) (Yen in millions)
- ----------------------------------------------------------------------------------------------------------------------------------
Basic net income per share
- ----------------------------------------------------------------------------------------------------------------------------------
Net income 553,797 - 944,671
- ----------------------------------------------------------------------------------------------------------------------------------
The amount not attributed to
common shareholders - - 2,382
- ----------------------------------------------------------------------------------------------------------------------------------
(Bonuses to the directors
based on the - - 2,382
appropriation of
earnings, inner amount)
- ----------------------------------------------------------------------------------------------------------------------------------
Net income attributed to 553,797 - 942,289
common shares
- ----------------------------------------------------------------------------------------------------------------------------------
Weighted-average number
of common shares 3,492,915,041 shares - 3,454,704,711 shares
during the period
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted net income per
share
- ----------------------------------------------------------------------------------------------------------------------------------
The amount adjusted to (2) - (52)
net income
- ----------------------------------------------------------------------------------------------------------------------------------
(The amount resulting
from the changes in
equity ownership of
TMC and the decreased (2) - (52)
amount in interest
expenses of the
subsidiaries, inner
amount)
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in number of 6,071 shares - shares 21,577 shares
common shares
- ----------------------------------------------------------------------------------------------------------------------------------
(The number of common
shares to be used for the
stock option plan under
Articles 280-20 and
280-21 of Japanese 6,071 shares - shares 21,577 shares
Commercial Code,
inner amount)
- ----------------------------------------------------------------------------------------------------------------------------------
The description of shares The shares to be used for - The shares to be used for
not included in the the stock option plan under the stock option plan under
calculation of diluted net Article 210-2 of the old Article 210-2 of the old
income per share due to Japanese Commercial Code Japanese Commercial Code
anti-dilutive effect 2,011,000 shares 1,941,000 shares
Unsecured warrant bonds Unsecured warrant bonds
116,400 shares 116,400 shares
- ----------------------------------------------------------------------------------------------------------------------------------
-48-
(Subsequent Events)
- ---------------------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2004 semi-annual FY2003
April 1, 2002 through April 1, 2003 through April 1, 2002 through
September 30, 2002 September 30, 2003 March 31, 2003
- ---------------------------------------------------------------------------------------------------------------------------------
Subsequent to the date of this
semi-annual period end and before the
date of submission of this
Semi-Annual Securities Report, TMC
repurchased 29,385 thousand shares of ______ ______
its common stock at a cost of 93,125
million yen pursuant to a resolution
made in its general shareholders'
meeting held on June 26, 2002.
- ---------------------------------------------------------------------------------------------------------------------------------
-49-
Notes to semi-annual consolidated financial statements
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
1 Accounting Principles, Procedures and Presentation Methods for
Semi-Annual Consolidated Financial Statements
The accompanying semi-annual consolidated financial statements of Toyota
Motor Corporation (the "parent company") have been prepared in
accordance with accounting principles generally accepted in the United
States of America ("U.S. GAAP").
In September 1999, the parent company listed its American Depositary
Shares ("ADS") on the New York Stock Exchange. Since then, the parent
company has prepared the consolidated financial statements in accordance
with the terminology, forms and preparation methods required in issuing
ADS and registered them with the United States Securities and Exchange
Commission.
The following paragraphs describe the major differences between
accounting principles, procedures and presentation methods for
semi-annual consolidated financial statements which the parent company
and its subsidiaries (collectively "Toyota") adopt and those in Japan.
(1) Semi-annual consolidated statements of shareholders' equity
Toyota has prepared semi-annual consolidated statements of
shareholders' equity which present all changes in shareholders'
equity during a period as a part of its semi-annual consolidated
financial statements.
The consolidated comprehensive income and all components of
comprehensive income are disclosed in accordance with Statement of
Financial Accounting Standards ("FAS") No. 130 Reporting
Comprehensive Income in the semi-annual consolidated statements of
shareholders' equity. In the Statement, comprehensive income is
defined as the change in equity of a business enterprise during a
period from transactions and other events and circumstances from
nonowner sources, and consists of net income and other comprehensive
income. Other comprehensive income includes any changes in foreign
currency translation adjustments, unrealized gains or losses on
securities and minimum pension liability adjustments.
Any changes in capital surplus and retained earnings during a period
presented in semi-annual consolidated statements of capital surplus
and retained earnings under accounting principles generally accepted
in Japan ("Japanese GAAP") are included in the semi-annual
consolidated statements of shareholders' equity.
(2) The basis for determination of subsidiary
Under U.S. GAAP, subsidiaries subject to the consolidation are
determined mainly based on the ownership of voting shares (more than
50%). Under Japanese GAAP, subsidiaries according to the control
basis are added to those subsidiaries determined by the ownership of
voting shares.
(3) Reporting category of equity in earnings of affiliated companies
Under Japanese GAAP, equity in earnings of affiliated companies is
included in non-operating income or expenses, while under U.S. GAAP,
it is presented below "Income before minority interest and equity in
earnings of affiliated companies".
(4) Recognition of gains on transfer of the substitutional portion of
the employee pension fund
Under Japanese GAAP, gains or losses on transfer of the
substitutional portion of the employee pension fund are required to
be recognized at the date of the approval for the separation of the
benefit obligation that relates to past employee services, while
those gains or losses can be recognized as a transitional measure at
the date of the approval for the exemption from the payment of the
benefits related to future employee services. Under U.S. GAAP, those
gains or losses should be recorded upon completion of the actual
transfer of the plan assets to the government.
- --------------------------------------------------------------------------------
-50-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(5) Accounting for leases
Under U.S. GAAP, Toyota has accounted for lease transactions in
accordance with FAS No. 13 Accounting for Leases. In the Statement,
as a lessor, Toyota has accounted them as if they are sold, and as
"sales-type leases" or "direct financing leases" for lease
transactions that meet certain criteria. As a lessee, Toyota has
recorded fixed assets as "capital leases" for lease transactions
that meet certain criteria.
(6) Accounting for accrued pension and severance costs
Under U.S. GAAP, Toyota has accrued pension and severance costs in
accordance with FAS No. 87 Employers' Accounting for Pensions ("FAS
87") and FAS No. 88 Employers' Accounting for Settlements and
Curtailments of Defined Benefit Pension Plans and for Termination
Benefits. In FAS 87, additional minimum pension liabilities are
required when the accumulated benefit obligation exceeds the fair
value of plan assets, while such treatment is not provided under
Japanese GAAP. Under U.S. GAAP, unrecognized actuarial gain or loss
is amortized over the remaining service period of employees when
such balance at beginning of year exceeds the "Corridor" which is
defined as a 10% of larger of projected benefit obligation or fair
value of plan assets, while such gain or loss is amortized for a
certain period regardless of the Corridor under Japanese GAAP.
(7) Accounting for goodwill
Under U.S. GAAP, goodwill shall not be amortized and shall be tested
for impairment on annual basis and between annual tests if an event
occurs or circumstances change that would indicate the possibility
of the impairment, and written off when impaired in accordance with
FAS No. 142 Goodwill and Other Intangible Assets. Under Japanese
GAAP, goodwill shall be amortized over 5 years on the straight-line
method, while it shall be expensed as incurred, if not material.
- --------------------------------------------------------------------------------
-51-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
2 Nature of operations
Toyota is primarily engaged in the design, manufacture, assembly and
sale of passenger cars, sport-utility vehicles, minivans, trucks and
related parts and accessories throughout the world. In addition, Toyota
provides retail and wholesale financing, retail leasing and certain
other financial services primarily to its dealers and their customers
related to vehicles manufactured by Toyota.
3 Summary of significant accounting policies
The parent company and its subsidiaries in Japan maintain their records
and prepare their semi-annual financial statements in accordance with
Japanese GAAP, and its foreign subsidiaries in conformity with those of
their countries of domicile. Certain adjustments and reclassifications
have been incorporated in the accompanying semi-annual consolidated
financial statements to conform with. U.S. GAAP. These adjustments were
not recorded in the statutory books.
Significant accounting policies after reflecting adjustments for the
above are as follows:
(1) Basis of consolidation and accounting for investments in
affiliated companies
The semi-annual condensed consolidated financial statements include
the accounts of the parent company and those of its majority-owned
subsidiary companies. All significant intercompany transactions and
accounts have been eliminated. Investments in affiliated companies
in which Toyota exercises significant influence, but which it does
not control, are stated at cost plus equity in undistributed
earnings. Net income includes Toyota's equity in current earnings of
such companies, after elimination of unrealized intercompany
profits. Investments in which Toyota does not exercise significant
influence (generally less than a 20% ownership interest) are stated
at cost.
(2) Estimates
The preparation of Toyota's semi-annual consolidated financial
statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the amounts reported in the
semi-annual consolidated financial statements and accompanying
notes. Actual results could differ from those estimates. The more
significant estimates include: product warranties, allowance for
doubtful accounts and credit losses, residual values for leased
assets, impairment of long-lived assets, postretirement benefits
costs and obligations and post-employment benefit costs and
other-than-temporary losses on marketable securities.
(3) Translation of foreign currencies
All asset and liability accounts of foreign subsidiaries and
affiliates are translated into Japanese yen at appropriate
period-end current rates and all income and expense accounts of
those subsidiaries are translated at average-period exchange rates.
The resulting translation adjustments are included as a component of
accumulated other comprehensive income/loss.
Foreign currency receivables and payables are translated at
appropriate period-end current rates and the resulting transaction
gains or losses are taken into income currently.
- --------------------------------------------------------------------------------
-52-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(4) Revenue recognition
Revenue from sales of vehicles and parts is generally recognized
upon delivery which is considered to have occurred when the dealer
has taken title to the product and the risk and reward of ownership
have been substantively transferred, except as described below.
Toyota's sales incentive programs principally consist of cash
payments to dealers calculated based on vehicle volume or a model
sold by the dealers in a certain period of time. Toyota specifies
those volume, model or period covered in the incentive programs.
Toyota accrues these incentives as revenue reductions at the sale of
a vehicle corresponding to the program by the amount determined in
the related incentive program.
Revenue from the sale of vehicles under which Toyota conditionally
guarantees the minimum resale value is recognized on a pro rata
basis from the date of sale to the first exercise date of the
guarantee in a manner similar to lease accounting. The underlying
vehicles of these transactions are recorded as assets and are
depreciated in accordance with Toyota's depreciation policy.
Revenue from retail financing contracts and finance leases is
recognized using the effective yield method. Revenue from operating
leases is recognized on a straight-line basis over the lease term.
Toyota on occasion sells finance receivables in transactions subject
to limited recourse provisions. These sales are to trusts and Toyota
retains the servicing and is paid a servicing fee. Gains or losses
from the sales of the finance receivables are recognized in the
period in which such sales occur.
(5) Other costs
Advertising and sales promotion costs are expensed as incurred.
Advertising costs were 162,295 million yen for the six month period
ended September 30, 2003.
Toyota generally warrants its products against certain manufacturing
and other defects. Provisions for product warranties are provided
for specific periods of time and/or usage of the product and vary
depending upon the nature of the product, the geographic location of
its sale and other factors. Toyota provides a provision for
estimated product warranty costs at the time the related sale is
recognized based on estimates that Toyota will incur to repair or
replace product parts that fail while still under warranty. The
amount of accrued estimated warranty costs is primarily based on
historical experience as to product failures as well as current
information on repair costs. The amount of warranty costs accrued
also contains an estimate as to warranty claim recoveries from
suppliers.
Research and development costs are expensed as incurred and were
304,638 million yen for the six month periods ended September 30,
2003.
(6) Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments,
generally with original maturities of three months or less, that are
readily convertible to known amounts of cash and are so near
maturity that they present insignificant risk of changes in value
because of changes in interest rates.
- --------------------------------------------------------------------------------
-53-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(7) Marketable securities
Marketable securities consist of debt and equity securities. Debt
and equity securities designated as available-for-sale are carried
at fair value with changes in unrealized gains or losses included as
a component of accumulated other comprehensive income/loss in
shareholders' equity, net of applicable taxes. Should Toyota acquire
securities in the future and designate them as held-to-maturity
investments, such securities would be carried at amortized cost.
Individual securities classified as either available-for-sale or
held-to-maturity are reduced to net realizable value for
other-than-temporary declines in market value. In determining if a
decline in value is other-than-temporary, Toyota considers the
length of time and the extent to which the fair value has been less
than the carrying value, the financial condition and prospects of
the company and Toyota's ability and intent to retain its investment
in the company for a period of time sufficient to allow for any
anticipated recovery in market value. Realized gains and losses,
which are determined on the average cost method, are reflected in
the statement of income upon realized.
(8) Security investments in non-public companies
Security investments in non-public companies are carried at cost as
fair value is not readily determinable. If the value of a non-public
security investment is estimated to have declined and such decline
is judged to be other-than-temporary, Toyota recognizes the
impairment of the investment and the carrying value is reduced to
its fair value. Determination of impairment is based on the
consideration of such factors as operating results, business plans
and estimated future cash flows. Fair value is determined
principally through the use of the latest financial information.
(9) Finance receivables
Finance receivables are recorded at the present value of the related
future cash flows including residual values for finance leases.
(10) Allowance for credit losses
Allowances for credit losses are established to cover probable
losses on receivables resulting from the inability of customers to
make required payments. The allowance for credit losses is based
primarily on historical loss experience. Other factors affecting
collectibility are also evaluated in determining the amount to be
provided.
Losses are charged to the allowance when it has been determined that
payments will not be received and collateral cannot be recovered or
the related collateral is repossessed and sold. Any shortfall
between proceeds received and the carrying cost of repossessed
collateral is charged to the allowance. Recoveries are credited to
the allowance for credit losses.
(11) Allowance for residual value losses
Toyota is exposed to risk of loss on the disposition of off-lease
vehicles to the extent that sales proceeds are not sufficient to
cover the carrying value of the leased asset at lease termination.
Toyota maintains an allowance to cover probable estimated losses
related to unguaranteed residual values on its present owned
portfolio. The allowance is evaluated considering projected vehicle
return rates and projected loss severity. Factors considered in the
determination of projected return rates and loss severity include
historical and market information on used vehicle sales, trends in
lease returns and new car markets, and general economic conditions.
Management evaluates the foregoing factors, develops several
potential loss scenarios, and reviews allowance levels to determine
whether reserves are considered adequate to cover the probable range
of losses.
The allowance for residual value losses is maintained in amounts
considered Toyota to be appropriate in relation to the estimated
losses on the present owned portfolio. Upon disposal of the assets,
the allowance for residual losses is adjusted for the difference
between the net book value and the proceeds from sale.
- --------------------------------------------------------------------------------
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(12) Inventories
Inventories are valued at cost, not in excess of market, cost being
determined on the "average cost" basis, except for the cost of
finished products carried by certain subsidiary companies which is
determined on the "specific identification" basis or "last in, first
out" ("LIFO") basis. Inventories valued on the LIFO basis totaled
169,351 million yen at September 30, 2003. Had the "first in, first
out" basis been used for those companies using the LIFO basis,
inventories would have been 19,136 million yen higher than reported
at September 30, 2003.
(13) Property, plant and equipment
Property, plant and equipment are stated at cost. Major renewals and
improvements are capitalized; minor replacements, maintenance and
repairs are charged to current operations. Depreciation of property,
plant and equipment is mainly computed on the declining-balance
method for the parent company and Japanese subsidiaries and on the
straight-line method for foreign subsidiary companies at rates based
on estimated useful lives of the assets according to general class,
type of construction and use. Estimated useful lives range from 3 to
60 years for buildings and from 2 to 20 years for machinery and
equipment.
Vehicles and equipment on operating leases to third parties are
originated by dealers and acquired by certain consolidated
subsidiaries. Such subsidiaries are also the lessors of certain
property that they acquire directly. Vehicles and equipment on
operating leases are depreciated primarily on a straight-line basis
over the lease term, generally three years, to the estimated
residual value.
(14) Long-lived assets
Toyota reviews its long-lived assets, including investments in
affiliated companies, for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not
be recoverable. An impairment loss would be recognized when the
carrying amount of an asset exceeds the estimated undiscounted
future cash flows expected to result from the use of the asset and
its eventual disposition. The amount of the impairment loss to be
recorded is calculated by the excess of the assets carrying value
over its fair value. Fair value is determined mainly using a
discounted cash flow valuation method.
(15) Goodwill and intangible assets
Goodwill is not material to Toyota's semi-annual consolidated
balance sheet.
Intangible assets consist mainly of software. Intangible assets with
a definite life are amortized on a straight-line basis with
estimated useful lives mainly of 5 years. Intangible assets with a
definite life are tested for impairment whenever events or
circumstances indicate that a carrying amount of an asset (asset
group) may not be recoverable.
An impairment loss would be recognized when the carrying amount of
an asset exceeds the estimated undiscounted cash flows used in
determining the fair value of the asset. The amount of the
impairment loss to be recorded is calculated generally determined
using a discounted cash flow analysis. Costs related to internally
developed intangible assets are expensed as incurred.
- --------------------------------------------------------------------------------
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(16) Environmental matters
Environmental expenditures relating to current operations are
expensed or capitalized as appropriate. Expenditures relating to
existing conditions caused by past operations, which do not
contribute to current or future revenues, are expensed. Liabilities
for remediation costs are recorded when they are probable and
reasonably estimable, generally no later than the completion of
feasibility studies or Toyota's commitment to a plan of action. The
cost of each environmental liability is estimated by using current
technology available and various engineering, financial and legal
specialists within Toyota based on current law. Such liability does
not reflect any offset for possible recoveries from insurance
companies and is not discounted.
(17) Income taxes
The provision for income taxes is computed based on the pretax
income included in the semi-annual consolidated statement of income.
The asset and liability approach is used to recognize deferred tax
liabilities and assets for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases
of assets and liabilities. Valuation allowances are recorded to
reduce deferred tax assets when it is more likely than not that a
tax benefit will not be realized.
(18) Derivative financial instruments
Toyota employs derivative financial instruments, including foreign
exchange forward contracts, foreign currency options, interest rate
swaps, interest rate currency swap agreements and interest rate
options to manage its exposure to fluctuations in interest rates and
foreign currency exchange rates. Toyota does not use derivatives for
speculation or trading purposes. Changes in the fair value of
derivatives are recorded each period in current earnings, depending
on whether a derivative is designated as part of a hedge transaction
and the type of hedge transaction. The ineffective portion of all
hedges is recognized currently in earnings.
(19) Net income per common share
Basic net income per common share is calculated by dividing net
income by the weighted-average number of shares outstanding during
the reported period 3,419,900,609 for the six month period ended
September 30, 2003. The calculation of diluted net income per common
share is similar to the calculation of basic net income per common
share, except that the weighted-average number of shares outstanding
includes the additional dilution from assumed exercise of dilutive
stock options. The weighted average numbers of shares outstanding
used in diluted net income per common share calculation was
3,419,990,391 for the six month period ended September 30, 2003.
(20) Stock-based compensation
Toyota measures compensation expense for its stock-based
compensation plan using the intrinsic value method.
(21) Other comprehensive income/loss
Other comprehensive income/loss refers to revenues, expenses, gains
and losses that, under U.S. GAAP are included in comprehensive
income, but are excluded from net income as these amounts are
recorded directly as an adjustment to shareholders' equity. Toyota's
other comprehensive income/loss is primarily comprised of unrealized
gains/losses on marketable securities designated as
available-for-sale, foreign currency translation adjustments,
gains/losses on derivative instruments and adjustments to recognize
additional minimum liabilities associated with Toyota's defined
benefit pension plans.
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(22) Accounting changes
In June 2001, the Financial Accounting Standards Board ("FASB")
issued FAS No.143 Accounting for Asset Retirement Obligations ("FAS
143"). FAS 143 requires full recognition of asset retirement
obligations on the balance sheet from the point in time at which a
legal obligation exists. The obligation is required to be measured
at fair value. The carrying value of the asset or assets to which
the retirement obligation relates would be increased by an amount
equal to the liability recognized. This amount would then be
included in the depreciable base of the asset and charged to income
over its life as depreciation. Toyota adopted FAS 143 on April 1,
2003. The adoption of FAS 143 did not have a material impact on
Toyota's semi-annual consolidated financial statements.
In April 2002, FASB issued FAS No. 145, Rescission of FAS No. 4, 44,
and 64, Amendment of FAS 13, and Technical Corrections ("FAS 145").
This statement makes various technical corrections to existing
pronouncements including the classification of gain or loss on
extinguishment of debt, sale-lease back accounting for certain lease
modifications. Toyota adopted FAS 145 on April 1, 2003. The adoption
of FAS 145 did not have a material impact on Toyota's semi-annual
consolidated financial statements.
In November 2002, FASB Emerging Issues Task Force ("EITF") reached
consensus on EITF Issue No. 00-21, Revenue Arrangements with
Multiple Deliverables ("EITF 00-21"). EITF 00-21 addresses certain
aspects of the accounting by a vendor for arrangements under which
it will perform multiple revenue-generating activities. Toyota
applied this consensus for revenue arrangements entered into in the
period begun July 1, 2003. The adoption of EITF 00-21 did not have a
material impact on Toyota's semi-annual consolidated financial
statements.
In January 2003, FASB issued FASB Interpretation ("FIN") No. 46,
Consolidation of Variable Interest Entities - an interpretation of
ARB No. 51 ("FIN 46"). This interpretation provides guidance on
identifying variable interest entities ("VIE") for which control is
achieved through means other than voting rights and on how to
determine when a company should consolidate the VIE. It is not
limited to special purpose entities and will require more companies
to consolidate entities with which they have contractual, ownership,
or other pecuniary interests that absorb a portion of that entity's
expected losses or receive a portion of the entity's residual
returns. Toyota applied FIN 46 to VIEs created after January 31,
2003 and to VIEs in which Toyota obtained an interest after that
date upon its creation or obtaining an interest. However, the
application of FIN 46 to these VIEs did not have a material impact
on Toyota's semi-annual consolidated financial statements. Toyota
will apply FIN 46 on December 31, 2003 to VIEs existed at January
31, 2003. Toyota enters into securitization transactions with
certain special-purpose entities. However, because securitization
transactions are primarily with entities that are qualifying
special-purpose entities ("QSPEs") under FAS No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities ("FAS 140"), and because QSPEs are excluded from the
scope of FIN 46, the implementation of FIN 46 relating to these
securitization transactions is not expected to have a material
impact on Toyota's consolidated financial statements. Toyota has
invested in several joint ventures. These joint ventures may be
deemed as variable interest entities, however, neither the aggregate
size of these joint ventures nor Toyota's involvements in these
entities are expected to be material to Toyota's consolidated
financial statements.
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
In February 2003, EITF reached a consensus on EITF Issue No. 03-2,
Accounting for the Transfer to the Japanese Government of the
Substitutional Portion of Employee Pension Fund Liabilities ("EITF
03-2"), which should be applied retroactively to April 1, 2002, the
earliest date on which the separation process begun. EITF 03-2
provides a consensus that the entire process for the transfer of the
substitutional portion of the benefit obligation and related plan
assets to the Japanese government should be accounted for as a
single settlement transaction upon completion of the transfer to the
government. Under the consensus reached, the difference between the
obligation settled, assuming the remeasurement at fair value
immediately prior to the settlement, including the effects of the
future salary increases previously accrued under the substitutional
arrangement, and the assets transferred to the government,
determined pursuant to the government formula, should be accounted
for as settlement gain or loss at the time of the settlement. In
accounting for the settlement of the substitutional portion of the
obligation, a proportionate amount of the unrecognized gain or loss
relating to the entire employee pension fund should also be
recognized as a settlement gain or loss. Toyota has already begun
the separation process by obtaining the approval from the Japanese
government of exemption from the benefits related to future employee
service under the substitutional portion. However, in accordance
with EITF 03-2, no effect of this transaction has been recognized in
the semi-annual consolidated financial statements for the six month
period ended September 30, 2003 as the completion of the transfer of
the substitutional portion of the benefit obligation and related
plan assets to the Japanese government has not completed as at
September 30, 2003.
In March 2003, EITF released Issue No. 02-9, Accounting for Changes
That Result in a Transferor Regaining Control of Financial Assets
Sold ("EITF 02-9"). EITF 02-9 relates to securitizations that have
been accounted for as sales under FAS 140. In the event that one or
more of the control rules are no longer met, the transferor would
have to recognize those assets and the related liabilities on the
consolidated balance sheet at the fair value. Toyota adopted EITF
02-9 prospectively to such events occurring after April 2, 2003. The
adoption of EITF 02-9 did not have a material impact on Toyota's
semi- annual consolidated financial statements.
In April 2003, the FASB issued FAS No. 149, Amendment of Statement
133 on Derivative Instruments and Hedging Activities ("FAS 149").
This statement amends and clarifies financial accounting and
reporting for derivative instruments, including derivative
instruments embedded in other contracts and for hedging activities
under FAS No. 133, Accounting for Derivative Instruments and Hedging
Activities ("FAS 133"). Toyota applied FAS 149 (1) to contracts
entered into or modified after June 30, 2003, with certain
exceptions, and (2) to hedging relationships designated after June
30, 2003. The adoption of FAS 149 did not have a material impact on
Toyota's semi- annual consolidated financial statements.
In May 2003, the FASB issued FAS No. 150, Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity ("FAS 150"). This Statement improves the accounting for
certain financial instruments that, under previous guidance, issuers
could account for as equity. FAS 150 requires that those instruments
be classified as liabilities in the balance sheets. Toyota applied
FAS 150 to financial instruments entered into or modified after May
31, 2003, and otherwise in the fiscal period starting July 1, 2003.
The adoption of FAS 150 did not have a material impact on Toyota's
semi-annual consolidated financial statements.
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- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
In May 2003, the EITF reached consensus on EITF 01-8, Determining
Whether an Arrangement Contains a Lease. EITF 01-8 clarifies the
method to identify lease elements in arrangements that do not
explicitly include lease provisions, and requires any lease element
identified should be accounted for by current accounting literatures
prescribing leases. Toyota applied the provisions of the EITF in the
fiscal period beginning July 1, 2003. The adoption of EITF 01-8 did
not have a significant impact on the Toyota's semi-annual
consolidated financial statements.
(23) Recent pronouncements to be adopted in future periods
In May 2003, EITF announced EITF Topic No. D-107, Lessor
Consideration of Third-Party Residual Value Guarantees. EITF Topic
No. D-107 has clarified that some of the accounting practices by
lessors regarding residual value guarantees issued by an unrelated
third party for a portfolio of leased assets for which settlement is
not solely based upon the residual value of the individual leased
assets. Under this EITF, residual value guarantees of a portfolio of
leased assets preclude a lessor from determining the amount of the
guaranteed residual value of any individual leased asset within the
portfolio at lease inception and, accordingly, no such amounts
should be included in minimum lease payments. Toyota will apply this
provision for the fiscal period starting January 1, 2004. Management
does not expect this provision to have a material impact on Toyota's
consolidated financial statements.
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- --------------------------------------------------------------------------------
FY2004 semi-annual
September 30, 2003
- --------------------------------------------------------------------------------
4 Marketable securities and other securities investments
Marketable securities and other securities investments include debt and
equity securities for which the aggregate cost, gross unrealized gains and
losses and fair value are as follows:
Yen in millions
---------------------------------------------------------------------
Gross Gross
unrealized unrealized Fair
Cost gains losses value
--------------- --------------- --------------- ------------------
Available-for-sale
------------------
Debt securities 1,981,094 17,857 4,010 1,994,941
Equity securities 577,227 353,383 10,422 920,188
--------------- --------------- --------------- ------------------
Total 2,558,321 371,240 14,432 2,915,129
--------------- --------------- --------------- ------------------
Securities not practicable to fair value
----------------------------------------
Debt securities 51,734
Equity securities 90,681
---------------
Total 142,415
---------------
In the ordinary course of business, Toyota maintains long-term investment
securities, included in "Marketable securities and other securities
investments", issued by a number of non-public companies which are recorded
at cost, as their fair values were not readily determinable. Toyota's
management employs a systematic methodology to assess the recoverability of
such investments by reviewing the financial viability of the underlying
companies and the prevailing market conditions in which these companies
operate to determine if Toyota's investment in each individual company is
impaired and whether the impairment is other-than-temporary. If the
impairment is determined to be other-than-temporary, the cost of the
investment is written-down by the impaired amount and the losses are
recognized currently in earnings.
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
FY2004 semi-annual
September 30, 2003
- --------------------------------------------------------------------------------
5 Vehicles and equipment on operating leases
Vehicles and equipment on operating leases consist of the following:
Yen in millions
------------------
September 30, 2003
------------------
Vehicles 1,438,962
Equipment and other 116,075
------------------
1,556,037
Less - Accumulated depreciation (397,650)
------------------
Vehicles and equipment on
operating leases, net 1,158,387
------------------
Rental income from vehicles and equipment on operating leases was 149,591
million yen for the six month period ended September 30, 2003. Future
minimum rentals from vehicles and equipment on operating leases are due in
installments as follows:
Years ending September 30: Yen in millions
---------------------------------- ------------------
2004 276,546
2005 187,976
2006 96,863
2007 28,039
2008 7,474
The future minimum rentals as shown above should not be considered
indicative of future cash collections.
- --------------------------------------------------------------------------------
-61-
6 Lease commitments
Toyota leases certain assets under capital lease and operating lease
arrangements.
Yen in millions
-------------------
Class of property September 30, 2003
-------------------
Building 11,006
Machinery and equipment 157,121
Less - Accumulated depreciation (111,487)
-------------------
56,640
-------------------
Amortization expense under capital leases for the six month period ended
September 30, 2003 was 9,116 million yen.
Future minimum lease payments under capital leases together with the present
value of the net minimum lease payments as of September 30, 2003 are as
follows:
Years ending September 30: Yen in millions
---------------------------------- ------------------
2004 16,817
2005 14,085
2006 13,922
2007 14,936
2008 5,368
Thereafter 24,385
-------------------
Total minimum lease payments 89,513
Less - Amount representing interest (10,744)
-------------------
Present value of net minimum lease 78,769
payments
Less - Current obligations (14,316)
-------------------
Long-term capital lease obligations 64,453
-------------------
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- --------------------------------------------------------------------------------
FY2004 semi-annual
September 30, 2003
- --------------------------------------------------------------------------------
Rental expense under operating leases for the six month period ended
September 30, 2003 was 40,679 million yen.
The minimum rental payments required under operating leases relating
primarily to land, buildings and equipment having initial or remaining
non-cancelable lease terms in excess of one year at September 30, 2003 are
as follows:
Years ending September 30: Yen in millions
----------------------------------------------- --------------------
2004 8,072
2005 7,186
2006 5,185
2007 3,670
2008 2,703
Thereafter 12,192
--------------------
Total minimum future rentals 39,008
--------------------
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
7 Derivative financial instruments
Toyota employs derivative financial instruments, including foreign exchange
forward contracts, foreign currency options, interest rate swaps and
interest rate currency swap agreements to manage its exposure to
fluctuations in interest rates and foreign currency exchange rates. Toyota
does not use derivatives for speculation or trading.
Fair value hedges
-----------------
Toyota enters into interest rate swaps, and interest rate currency swap
agreements mainly to convert its fixed-rate debt to variable-rate debt.
Toyota uses interest rate swap agreements in managing its exposure to
interest rate fluctuations. Interest rate swap agreements are executed as
either an integral part of specific debt transactions or on a portfolio
basis. Toyota uses interest rate currency swap agreements to entirely hedge
exposure to exchange rate fluctuations on principal and interest payments
for borrowings denominated in foreign currencies. Notes and loans payable
issued in foreign currencies are hedged by concurrently executing interest
rate currency swap agreements which involve the exchange of foreign currency
principal and interest obligations for each functional currency obligations
at agreed-upon currency exchange and interest rates.
For the six month period ended September 30, 2003, Toyota reported a gain of
2,007 million yen, related to the ineffective portion of Toyota's fair value
hedges which is included in cost of financing operations in the accompanying
semi-annual consolidated statement of income. For fair value hedging
relationships, the components of each derivative's gain or loss are included
in the assessment of hedge effectiveness.
Undesignated derivative financial instruments
---------------------------------------------
Toyota uses foreign exchange forward contracts, foreign currency options,
interest rate swaps, interest rate currency swap agreements, and interest
rate options, which manage its exposure to foreign currency exchange
fluctuation and interest rate fluctuation from an economic perspective, and
which Toyota is unable or has elected not to apply hedge accounting.
Unrealized gains or losses on these derivative instruments are reported in
cost of financing operations and foreign exchange gain, net in the
accompanying semi-annual consolidated statement of income.
- --------------------------------------------------------------------------------
-64-
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
8 Other commitments and contingencies, concentrations and factors that
may affect future operations
Commitments outstanding at September 30, 2003 for the purchase of property,
plant and equipment and other assets are 78,372 million yen.
Toyota enters into contracts with Toyota dealers to guarantee customers'
payment of their installment payables that arises from installment contracts
between customers and Toyota dealers, as and when requested by Toyota
dealers. Guarantee periods are set to match maturity of installment
payments, and range from 1 month to 105 months at September 30, 2003,
however, they are generally shorter than the useful lives of products sold.
Toyota is required to execute its guarantee primarily when customers are
unable to make required payments. The maximum potential amount of future
payments as of September 30, 2003 is 907,069 million yen. Liability for
guarantee of 4,295 million yen has been provided as of September 30, 2003.
Under these guarantee contracts, Toyota is entitled to recover its payments
from customers either by cash or through vehicles foreclosed.
In February 2003, Toyota, General Motors, Ford, DaimlerChrysler, Honda,
Nissan and BMW and their U.S. and Canadian sales and marketing subsidiaries,
the National Automobile Dealers Association and the Canadian Automobile
Dealers Association were named as defendants in purported nationwide class
actions on behalf of all purchasers of new motor vehicles in the United
States since January 1, 2001. These actions were filed in federal courts in
California, Illinois, New York, Massachusetts, Florida, New Jersey and
Pennsylvania. Additionally, parallel class actions were filed in state
courts in California, Minnesota, New Mexico, New York, Tennessee, Wisconsin,
Arizona, Florida, Massachusetts, Iowa, and New Jersey on behalf of the same
purchasers in those states. As of November 30, 2003, approximately 10 such
cases were pending before the various federal and state courts. (The cases
in the federal courts, and the state courts in California and New Jersey
have been consolidated respectively.) The nearly identical complaints allege
that the defendants violated the Sherman Antitrust Act by conspiring among
themselves and with their dealers to prevent the sale to United States
citizens of vehicles produced for the Canadian market. The complaints allege
that new vehicle prices in Canada are 10% to 30% lower than those in the
United States and that preventing the sale of these vehicles to United
States citizens resulted in United States consumers paying excessive prices
for the same type of vehicles. The complaints seek permanent injunctions
against the alleged antitrust violations and treble damages in an
unspecified amount. The cases are at a preliminary stage; as of November 30,
2003, no defendant has yet answered the complaints and there has been no
decision on the certification of the alleged cases. Toyota believes that its
actions have been lawful and intends to vigorously defend these cases.
Toyota has various other legal actions, governmental proceedings and other
claims pending against it, including product liability claims in the United
States. Although the claimants in some of these actions seek potentially
substantial damages, Toyota cannot currently determine its potential
liability or the damages, if any, with respect to these claims. However,
based upon information currently available to Toyota, Toyota believes that
its losses from these matters, if any, would not have a material adverse
effect on Toyota's financial position, operating results or cash flows.
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
In September 2000, the European Union approved a directive that mandates
member states to promulgate regulations implementing, by April 21, 2002, the
following requirements (1) manufacturers shall bear all or a significant
part of the cost for taking back end-of-life vehicles put on the market
after July 1, 2002 and dismantling and recycling those vehicles; provided
however, that beginning January 1, 2007, manufacturers will also be
financially responsible for vehicles put on the market before July 1, 2002;
(2) manufacturers may not use certain hazardous materials in vehicles to be
sold after July 2003; (3) vehicle type approved and put on the market after
three years after the amendment of Directive on Type-approval, shall be
re-usable and/or recyclable to a minimum of 85% by weight per vehicle and
shall be re-usable and/or recoverable to a minimum of 95% by weight per
vehicle; and (4) end-of-life vehicles must meet actual re-use and recovery
targets of 80% and 85%, respectively, of vehicle weight by January 1, 2006,
rising respectively to 85% and 95% by January 1, 2015. Currently, there are
numerous uncertainties surrounding the form and implementation of the
applicable regulations in different European Union member states, including
in particular, regarding manufacturer responsibilities and resulting
expenses that may be incurred. As of November 30, 2003, the following 10
member states have adopted legislation to implement the directive: The
Netherlands, Germany, Austria, Spain, Luxembourg, Italy, Portugal, France,
United Kingdom and Ireland. In addition, Sweden, Norway and Denmark have
adopted legislation similar to the directive and Belgium has adopted
legislation that partially implements the directive. Despite the requirement
to enact legislation to implement the directive by April 21, 2002,
implementation of the directive has been delayed in some countries. In
addition, under this directive, member states must take measures to ensure
that car manufacturers, distributors and other auto-related businesses
establish adequate used vehicle disposal facilities and to ensure that
hazardous materials and recyclable parts are removed from vehicles prior to
scrapping. Accordingly, this directive may impact Toyota's vehicles sold in
the European Union. Based on the legislation that has been enacted to date,
Toyota has provided for its estimated liability related to covered vehicles
in existence as of September 30, 2003. Depending on the legislation
implemented in the 2 member states that have not yet enacted legislation and
other circumstances, Toyota may be required to take additional accruals for
the expected costs to comply with these regulations. Although Toyota does
not expect its compliance with the directive to result in significant cash
expenditures, Toyota is continuing to assess the impact of this future
legislation on its results of operations, cash flows and financial position.
Toyota has a concentration of material purchases from a supplier which is an
affiliated company. These purchases approximate 10% of material costs.
The parent company has a concentration of labor supply in employees working
under collective bargaining agreements and a substantial portion of these
employees are working under the agreement that will expire on December 31,
2005.
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FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
9 Segment data
The operating segments reported below are the segments of Toyota for which
separate financial information is available and for which operating
income/loss amounts are evaluated regularly by executive management in
deciding how to allocate resources and in assessing performance.
The major portions of Toyota's operations on a worldwide basis are derived
from the Automotive and Financial Services business segments. The Automotive
segment designs, manufactures, assembles and distributes passenger cars,
sport-utility vehicles, minivans, trucks and related parts and accessories.
The Financial Services segment consists primarily of financing operations,
and vehicle and equipment leasing operations to assist in the merchandising
of Toyota's products as well as other products. The All Other segment
includes Toyota's housing business and various other business activities.
The following tables present certain information regarding Toyota's industry
segments and operations by geographic areas as of September 30, 2003 and for
the six month period ended September 30, 2003:
(Segment operating results and assets)
---------------------------------------------------------------------------------------------------------------------------------
Intersegment
Financial Elimination/ Consolidated
Automotive Services All Other Unallocated Total
(Yen in millions) (Yen in millions) (Yen in millions) Amount (Yen in millions)
(Yen in millions)
---------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to external 7,584,310 362,460 277,471 - 8,224,241
customers
(2) Intersegment sales 6,126 9,000 126,208 ( 141,334) -
---------------------------------------------------------------------------------------------------------------------------------
Total 7,590,436 371,460 403,679 ( 141,334) 8,224,241
---------------------------------------------------------------------------------------------------------------------------------
Depreciation 368,242 97,493 10,203 - 475,938
---------------------------------------------------------------------------------------------------------------------------------
Operating income 702,634 61,681 6,047 ( 2,593) 767,769
---------------------------------------------------------------------------------------------------------------------------------
Segment assets 9,689,020 7,560,742 831,670 2,695,688 20,777,120
---------------------------------------------------------------------------------------------------------------------------------
Investment in equity 993,789 181,226 - 64,171 1,239,186
method investees
---------------------------------------------------------------------------------------------------------------------------------
Expenditures for segment 459,390 238,155 20,371 26,060 743,976
assets
---------------------------------------------------------------------------------------------------------------------------------
Semi-annual consolidated financial statement data on non-financial services
business and financial services business
---------------------------------------------------------------------------
Toyota is preparing certain financial statement data relating to the
segmentation of Toyota's non-financial services and financial services
businesses.
This financial statement data includes semi-annual balance sheet at
September 30, 2003, semi-annual statement of income for the six month period
ended September 30, 2003 and semi-annual statement of cash flows for the six
month period ended September 30, 2003.
-67-
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FY2004 semi-annual
September 30, 2003
- --------------------------------------------------------------------------------
(a) Semi-annual consolidated balance sheet on non-financial services
business and financial services business
--------------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
--------------------------------------------------------------------------------------------------------------------------------
(Assets)
(Non-Financial Services Business)
1 Current assets
1 Cash and cash equivalents 1,119,422
2 Time deposits 17,014
3 Marketable securities 780,942
4 Trade accounts and notes receivable, less allowance for 1,318,935
doubtful accounts
5 Finance receivables, net 14,678
6 Inventories 1,059,824
7 Prepaid expenses and other current assets 1,495,026
---------------------------------------------
Total current assets 5,805,841 27.9
2 Noncurrent finance receivables, net 13,319 0.1
3 Investments and other assets 3,915,763 18.8
4 Property, plant and equipment 4,383,157 21.1
---------------------------------------------
Total assets 14,118,080 67.9
---------------------------------------------
(Financial Services Business)
1 Current assets
1 Cash and cash equivalents 123,789
2 Time deposits 26,072
3 Marketable securities 6,773
4 Finance receivables, net 2,227,549
5 Prepaid expenses and other current assets 600,411
---------------------------------------------
Total current assets 2,984,594 14.4
2 Noncurrent finance receivables, net 3,013,295 14.5
3 Investments and other assets 545,450 2.6
4 Property, plant and equipment 1,017,403 4.9
---------------------------------------------
Total assets 7,560,742 36.4
(Elimination)
Elimination of assets (901,702) (4.3)
(Consolidated)
---------------------------------------------
Total assets 20,777,120 100.0
---------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
-68-
- --------------------------------------------------------------------------------
FY2004 semi-annual
September 30, 2003
- --------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
-------------------------------------------------------------------------------------------------------------------------------
(Liabilities)
(Non-Financial Services Business)
1 Current liabilities
1 Short-term borrowings 822,072
2 Current portion of long-term debt 69,438
3 Accounts payable 1,552,185
4 Accrued expenses 1,008,779
5 Income taxes payable 260,128
6 Other current liabilities 914,782
---------------------------------------------
Total current liabilities 4,627,384 22.2
2 Long-term liabilities
1 Long-term debt 774,022
2 Accrued pension and severance costs 1,111,749
3 Other long-term liabilities 269,617
---------------------------------------------
Total long-term liabilities 2,155,388 10.4
---------------------------------------------
Total liabilities 6,782,772 32.6
(Financial Services Business)
1 Current liabilities
1 Short-term borrowings 1,783,862
2 Current portion of long-term debt 1,129,859
3 Accounts payable 12,083
4 Accrued expenses 49,302
5 Income taxes payable 7,116
6 Other current liabilities 170,337
---------------------------------------------
Total current liabilities 3,152,559 15.2
2 Long-term liabilities
1 Long-term debt 3,531,045
2 Accrued pension and severance costs 1,151
3 Other long-term liabilities 211,926
---------------------------------------------
Total long-term liabilities 3,744,122 18.0
---------------------------------------------
Total liabilities 6,896,681 33.2
(Elimination) Elimination of liabilities (902,340) (4.3)
---------------------------------------------
(Consolidated) Total liabilities 12,777,113 61.5
(Minority interest in consolidated subsidiaries)
(Consolidated)
Minority interest in consolidated subsidiaries 427,533 2.1
(Shareholders' equity)
---------------------------------------------
(Consolidated) Total shareholder's equity 7,572,474 36.4
---------------------------------------------
(Consolidated)
Total liabilities, minority interest in
consolidated subsidiaries and shareholders'
equity 20,777,120 100.0
---------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
(Note) Segment assets in the non-financial services business include
unallocated corporate assets.
-69-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(b) Semi-annual consolidated statement of income on non-financial
services business and financial services business
-------------------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage
-------------------------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Net revenues 7,867,021 100.0
2 Costs and expenses 7,156,401 91.0
1 Cost of revenues 6,275,627
2 Selling, general and administrative 880,774
------------------------------
Operating income 710,620 9.0
3 Other income, net 44,272 0.6
------------------------------
Income before income taxes, minority interest and 754,892 9.6
equity in earnings of affiliated companies
Provision for income taxes 285,959 3.6
------------------------------
Income before minority interest and equity 468,933 6.0
in earnings of affiliated companies
------------------------------
Minority interest in consolidated subsidiaries (18,150) (0.3)
Equity in earnings of affiliated companies 37,413 0.5
------------------------------
Net income 488,196 6.2
(Financial Services Business)
1 Net revenues 371,460 100.0
2 Costs and expenses 309,779 83.4
1 Cost of revenues 192,157
2 Selling, general and administrative 117,622
------------------------------
Operating income 61,681 16.6
3 Other expenses, net (4,689) (1.3)
------------------------------
Income before income taxes, minority interest and 56,992 15.3
equity in earnings of affiliated companies
Provision for income taxes 23,840 6.4
------------------------------
Income before minority interest and equity 33,152 8.9
in earnings of affiliated companies
------------------------------
Minority interest in consolidated subsidiaries (465) (0.1)
Equity in earnings of affiliated companies 3,580 1.0
------------------------------
Net income 36,267 9.8
(Elimination)
Elimination of net income (3) -
(Consolidated)
------------------------------
Net income 524,460 -
------------------------------
-------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
-70-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(c) Semi-annual consolidated statement of cash flows on non-financial
services business and financial services business
------------------------------------------------------------------------------------------------------------
Item Yen in millions
------------------------------------------------------------------------------------------------------------
(Non-Financial Services Business)
1 Cash flows from operating activities
1 Net income 488,196
2 Adjustments to reconcile net income to net cash provided
by operating activities
(1) Depreciation 378,445
(2) Pension and severance costs, less payments 34,000
(3) Loss on disposal of fixed assets 18,423
(4) Unrealized losses on available-for-sale securities, net 2,697
(5) Deferred income taxes 6,831
(6) Minority interest in consolidated subsidiaries 18,150
(7) Equity in earnings of affiliated companies (37,413)
(8) Changes in operating assets and liabilities 21,737
(9) Other (66,198)
------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 864,868
------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Additions to fixed assets excluding equipment leased to others (433,924)
2 Additions to equipment leased to others (71,897)
3 Proceeds from sales of fixed assets excluding equipment
leased to others 25,888
4 Proceeds from sales of equipment leased to others 24,840
5 Purchases of marketable securities and security investments (968,766)
6 Proceeds from sales of and maturity of marketable securities
and security investments 582,102
7 Decrease in time deposits 15,856
8 Increase in investments and other assets (15,431)
9 Payments for additional investments in affiliated
companies, net of cash acquired (18,876)
10 Other (3,595)
------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (863,803)
------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Purchases of common stock (120,229)
2 Proceeds from issuance of long-term debt 32,088
3 Payments of long-term debt (111,290)
4 Decrease in short-term borrowings (4,387)
5 Dividends paid (69,782)
6 Other (15,000)
------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (288,600)
------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (30,774)
------------------------------------------------------------------------------------------------------------
5 Net decrease in cash and cash equivalents (318,309)
------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 1,437,731
------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 1,119,422
---------------------------------------
------------------------------------------------------------------------------------------------------------
-71-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
Item Yen in millions
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
(Financial Services Business)
1 Cash flows from operating activities
1 Net income 36,267
2 Adjustments to reconcile net income to net cash provided
by operating activities
(1) Depreciation 97,493
(2) Deferred income taxes 15,033
(3) Minority interest in consolidated subsidiaries 465
(4) Equity in earnings of affiliated companies (3,580)
(5) Changes in operating assets and liabilities (43,735)
(6) Other 44,259
------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 146,202
------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Additions to finance receivables (4,182,349)
2 Collection of and proceeds from sales of finance receivables 3,727,776
3 Additions to fixed assets excluding equipment leased to others (11,598)
4 Additions to equipment leased to others (226,557)
5 Proceeds from sales of fixed assets excluding equipment leased to
leased to others 5,346
6 Proceeds from sales of equipment leased to others 108,233
7 Purchases of marketable securities and security investments (169,097)
8 Proceeds from sales of and maturity of marketable securities and
security investments 123,512
9 Increase in time deposits (11)
10 Other (19,270)
------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (644,015)
------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Proceeds from issuance of long-term debt 706,040
2 Payments of long-term debt (546,392)
3 Increase in short-term borrowings 299,919
4 Other 15,000
------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 474,567
------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (7,262)
------------------------------------------------------------------------------------------------------------
5 Net decrease in cash and cash equivalents (30,508)
------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 154,297
------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 123,789
---------------------------------------
------------------------------------------------------------------------------------------------------------
(Consolidated)
1 Effect of exchange rate changes on cash and cash equivalents (38,036)
------------------------------------------------------------------------------------------------------------
2 Net decrease in cash and cash equivalents (348,817)
------------------------------------------------------------------------------------------------------------
3 Cash and cash equivalents at beginning of period 1,592,028
------------------------------------------------------------------------------------------------------------
4 Cash and cash equivalents at end of period 1,243,211
---------------------------------------
------------------------------------------------------------------------------------------------------------
-72-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
(Geographic information)
-------------------------------------------------------------------------------------------------------------------------------
Intersegment
Other Foreign Elimination/ Consolidated
Japan North America Europe Countries Unallocated Total
(Yen in (Yen in (Yen in (Yen in Amount (Yen in
millions) (millions) millions) millions) (Yen in millions)
millions)
-------------------------------------------------------------------------------------------------------------------------------
Net revenues
(1) Sales to
external
customers 3,325,570 2,896,155 977,630 1,024,886 - 8,224,241
(2) Intersegment 2,171,720 117,912 54,645 77,931 ( 2,422,208) -
sales
-------------------------------------------------------------------------------------------------------------------------------
Total 5,497,290 3,014,067 1,032,275 1,102,817 ( 2,422,208) 8,224,241
-------------------------------------------------------------------------------------------------------------------------------
Operating income 529,742 163,616 22,474 53,293 ( 1,356) 767,769
-------------------------------------------------------------------------------------------------------------------------------
Segment assets 9,796,611 6,037,536 1,616,800 1,309,265 2,016,908 20,777,120
-------------------------------------------------------------------------------------------------------------------------------
Long-lived assets 3,016,108 1,633,045 424,368 327,039 - 5,400,560
-------------------------------------------------------------------------------------------------------------------------------
Revenues are attributed to geographies based on the country location of the
parent company or the subsidiary that transacted the sale with the external
customer.
There are no any individually material countries with respect to revenues
and long-lived assets included in other foreign countries.
Transfers between industry or geographic segments are made at amounts which
Toyota's management believes arm's-length prices. In measuring the
reportable segments' income or losses, operating income consists of sales
and operating revenue less costs and operating expenses. Unallocated assets
consist primarily of cash and cash equivalents and marketable securities
maintained for general corporate purposes.
(Overseas Sales)
The following information shows revenues that are attributed to countries
based on location of customers for the six month period ended September 30,
2003.
In addition to the disclosure required by FAS No. 131, Toyota discloses the
supplemental information in order to provide Japanese readers with valuable
information.
-----------------------------------------------------------------------------------------------------
North America Europe Other Foreign Total
Countries
-----------------------------------------------------------------------------------------------------
1 Overseas sales 3,013,321 944,563 1,601,666 5,559,550
(Yen in millions)
-----------------------------------------------------------------------------------------------------
2 Consolidated sales 8,224,241
(Yen in millions)
-----------------------------------------------------------------------------------------------------
3 Ratio of overseas sales to 36.6 11.5 19.5 67.6
consolidated sales (%)
-----------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
-73-
- --------------------------------------------------------------------------------
FY2004 semi-annual
April 1, 2003 through
September 30, 2003
- --------------------------------------------------------------------------------
10 Per share information
The following table shows net assets per common share as of
September 30, 2003.
--------------------
September 30,
2003
--------------------
Net assets per common share 2,228.52 Yen
11 Subsequent events
(1) On September 1, 2003, the employee pension fund of the parent
company received an approval from the Minister of Health, Labor and
Welfare for transition to the corporate defined benefit pension
plan. On December 22, 2003, as required by the article 112-5 of the
Defined Benefit Enterprise Pension Plan Law, the parent company
contributed 115,294 million yen in cash, equivalent to the
difference between the minimum funding amount required by the Law
and the amount of net assets of the employee pension fund as at its
dissolution. This contribution did not have any impact on Toyota's
consolidated income statement.
(2) At the meeting on November 5, 2003, the Board of Directors of the
parent company approved to repurchase treasury stock from the
market, based on the resolution of the Ordinary Shareholders'
Meeting held on June 26, 2003, in order to improve its capital
efficiency and implement its capital policy flexibly in response to
the business environment. During the repurchasing periods, which
were November 27, 2003 and from December 2, 2003 to December 15,
2003, the parent company repurchased 40,000 thousand shares of its
common stock amounting to 132,203 million yen.
- --------------------------------------------------------------------------------
-74-
(2) Other
(U.S. GAAP Financial Information)
(The accompanying financial information as of and for the six month period
ended September 30, 2002 and for the year ended March 31, 2003, in
conformity with U.S. GAAP, has not been audited with the auditing standards
which is required by the article 193-2 of the Securities and Exchange Law.)
1 Semi-annual consolidated balance sheets
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2003
September 30, 2002 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Assets)
1 Current assets
1 Cash and cash equivalents 1,870,153 1,592,028
2 Time deposits 32,324 55,406
3 Marketable securities 561,783 605,483
4 Trade accounts and notes receivable,
less allowance for doubtful accounts
of 24,398 million yen as of 1,221,335 1,475,797
September 30, 2002 and 29,489
million yen as of March 31, 2003
5 Finance receivables, net 2,187,518 2,505,140
6 Other receivables 518,999 513,952
7 Inventories 927,040 1,025,838
8 Deferred income taxes 441,378 385,148
9 Prepaid expenses and other current 442,270 463,441
assets
--------------- ---------------
Total current assets 8,202,800 42.0 8,622,233 42.8
2 Noncurrent finance receivables, net 2,708,898 13.9 2,569,808 12.8
3 Investments and other assets
1 Marketable securities and other 1,555,701 1,652,110
securities investments
2 Affiliated companies 1,314,640 1,279,645
3 Employees receivables 15,276 21,270
4 Other 622,373 804,029
--------------- ---------------
Total investments and other assets 3,507,990 18.0 3,757,054 18.6
4 Property, plant and equipment
1 Land 1,045,286 1,064,125
2 Buildings 2,445,338 2,521,208
3 Machinery and equipment 7,014,789 7,089,592
4 Vehicles and equipment on operating 1,419,989 1,601,060
leases
5 Construction in progress 240,200 211,584
--------------- ---------------
Sub total 12,165,602 12,487,569
6 Less - Accumulated depreciation (7,060,763) (7,283,690)
--------------- ---------------
Total property, plant and equipment 5,104,839 26.1 5,203,879 25.8
--------------- ---------------
Total assets 19,524,527 100.0 20,152,974 100.0
--------------- ---------------
- --------------------------------------------------------------------------------------------------------------------
-75-
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2003
September 30, 2002 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
(Liabilities)
1 Current liabilities
1 Short-term borrowings 1,878,992 1,855,648
2 Current portion of long-term debt 1,192,895 1,263,017
3 Accounts payable 1,377,863 1,531,552
4 Other payables 541,683 618,748
5 Accrued expenses 941,825 1,063,496
6 Income taxes payable 296,015 300,718
7 Other current liabilities 439,507 420,757
--------------- ---------------
Total current liabilities 6,668,780 34.2 7,053,936 35.0
2 Long-term liabilities
1 Long-term debt 3,798,192 4,137,528
2 Accrued pension and severance costs 727,057 1,052,687
3 Deferred income taxes 496,531 371,004
4 Other long-term liabilities 104,437 101,353
--------------- ---------------
Total long-term liabilities 5,126,217 26.2 5,662,572 28.1
--------------- ---------------
Total liabilities 11,794,997 60.4 12,716,508 63.1
(Minority interest in consolidated
subsidiaries)
Minority interest in consolidated 345,038 1.8 315,466 1.6
subsidiaries
(Shareholders' equity)
1 Common stock, no par value,
authorized:
9,740,185,400 shares at September
30, 2002
9,740,185,400 shares at March 31,
2003;
issued: 397,050 2.0 397,050 2.0
3,609,997,492 shares at September
30, 2002 and
3,609,997,492 shares at March 31,
2003
2 Additional paid-in capital 491,158 2.5 493,790 2.4
3 Retained earnings 7,033,122 36.0 7,301,795 36.2
4 Accumulated other comprehensive loss (356,412) (1.8) (604,272) (3.0)
5 Treasury stock, at cost
62,014,597 shares and at September
30, 2003 (180,426) (0.9) (467,363) (2.3)
158,940,796 shares at March 31, 2003
--------------- ---------------
Total shareholders' equity 7,384,492 37.8 7,121,000 35.3
(Commitments and contingencies)
Total liabilities, minority interest in --------------- ---------------
consolidated subsidiaries and 19,524,527 100.0 20,152,974 100.0
shareholders' equity --------------- ---------------
- --------------------------------------------------------------------------------------------------------------------
-76-
2 Semi-annual consolidated statements of income
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2003
April 1, 2002 through April 1, 2002 through
September 30, 2002 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Percentage Yen in millions Percentage
- --------------------------------------------------------------------------------------------------------------------
1 Net revenues
1 Sales of products 7,270,735 14,793,973
2 Financing operations 342,687 707,580
---------------------------- -----------------------------
Total net revenues 7,613,422 100.0 15,501,553 100.0
2 Costs and expenses
1 Cost of products sold 5,792,840 11,914,245
2 Cost of financing operations 227,292 423,885
3 Selling, general and administrative 908,267 1,891,777
---------------------------- -----------------------------
Total costs and expenses 6,928,399 91.0 14,229,907 91.8
---------------------------- -----------------------------
Operating income 685,023 9.0 1,271,646 8.2
3 Other income (expense)
1 Interest and dividend income 29,892 52,661
2 Interest expense (15,464) (30,467)
3 Foreign exchange gain, net 21,033 35,585
4 Other loss, net (6,023) (102,773)
---------------------------- -----------------------------
Total other income (expense) 29,438 0.4 (44,994) (0.3)
---------------------------- -----------------------------
Income before income taxes, minority 714,461 9.4 1,226,652 7.9
interest and equity in earnings of
affiliated companies
Provision for income taxes 296,920 3.9 517,014 3.3
---------------------------- -----------------------------
Income before minority interest and 417,541 5.5 709,638 4.6
equity in earnings of affiliated
companies ---------------------------- -----------------------------
Minority interest in consolidated (9,528) (0.1) (11,531) (0.1)
subsidiaries
Equity in earnings of affiliated 17,787 0.2 52,835 0.3
companies
---------------------------- -----------------------------
Net income 425,800 5.6 750,942 4.8
---------------------------- -----------------------------
- --------------------------------------------------------------------------------------------------------------------
(Yen)
- --------------------------------------------------------------------------------------------------------------------
Net income per common share
Basic 118.44 211.32
Diluted 118.44 211.32
Cash dividends per common share
applicable to earnings for the period
(year) 16.00 36.00
- --------------------------------------------------------------------------------------------------------------------
-77-
3 Semi-annual consolidated statements of shareholders' equity
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual
April 1, 2002 through
September 30, 2002
- --------------------------------------------------------------------------------------------------------------------
Accumulated
Common Additional Retained other Treasury
Item stock paid-in earnings comprehensive stock, Total
capital income (loss) at cost
- --------------------------------------------------------------------------------------------------------------------
Yen in millions
- --------------------------------------------------------------------------------------------------------------------
Balance at March 31, 2002 397,050 490,538 6,804,722 (267,304) (160,894) 7,264,112
-------------------------------------------------------------------------------------
1 Issuance during the period 620 620
2 Comprehensive income
(1) Net income 425,800 425,800
(2) Other comprehensive income
(loss)
1 Foreign currency translation (107,889) (107,889)
adjustments
2 Unrealized gains on securities,
net of reclassification 10,182 10,182
adjustments
3 Minimum pension liability 9,141 9,141
adjustments
4 Net losses on derivative
instruments (542) (542)
---------------
Total comprehensive income 336,692
---------------
3 Dividends paid (54,108) (54,108)
4 Purchase and retirement of (143,292) (19,532) (162,824)
common stock
-------------------------------------------------------------------------------------
Balance at September 30, 2002 397,050 491,158 7,033,122 (356,412) (180,426) 7,384,492
-------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
FY2003
------
April 1, 2002 through
September 30, 2002
- --------------------------------------------------------------------------------------------------------------------
Accumulated
Common Additional Retained other Treasury
Item stock paid-in earnings comprehensive stock, Total
capital income (loss) at cost
- --------------------------------------------------------------------------------------------------------------------
Yen in millions
- --------------------------------------------------------------------------------------------------------------------
Balance at March 31, 2002 397,050 490,538 6,804,722 (267,304) (160,894) 7,264,112
-------------------------------------------------------------------------------------
1 Issuance during the year 3,252 3,252
2 Comprehensive income
(1) Net income 750,942 750,942
(2) Other comprehensive income
(loss)
1 Foreign currency translation (139,285) (139,285)
adjustments
2 Unrealized losses on securities,
net of reclassification (26,495) (26,495)
adjustments
3 Minimum pension liability (171,978) (171,978)
adjustments
4 Net income on derivative
instruments 790 790
---------------
Total comprehensive income 413,974
---------------
3 Dividends paid (110,876) (110,876)
4 Purchase and retirement of (142,993) (306,469) (449,462)
common stock
-------------------------------------------------------------------------------------
Balance at March 31, 2003 397,050 493,790 7,301,795 (604,272) (467,363) 7,121,000
-------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
-78-
4 Semi-annual consolidated statement of cash flows
- --------------------------------------------------------------------------------------------------------------------
FY2003 semi-annual FY2003
April 1, 2002 through April 1, 2002 through
September 30, 2002 March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Item Yen in millions Yen in millions
- --------------------------------------------------------------------------------------------------------------------
1 Cash flows from operating activities
1 Net income 425,800 750,942
2 Adjustments to reconcile net income to net cash provided by
operating activities
(1) Depreciation 434,995 870,636
(2) Provision for doubtful accounts and credit losses 19,709 99,837
(3) Pension and severance costs, less payments 30,315 55,637
(4) Loss on disposal of fixed assets 23,880 46,492
(5) Unrealized losses on available-for-sale securities, net 23,853 111,346
(6) Deferred income taxes (24,067) (74,273)
(7) Minority interest in consolidated subsidiaries 9,528 11,531
(8) Equity in earnings of affiliated companies (17,787) (52,835)
(9) Changes in operating assets and liabilities 134,014 129,054
(10) Other 50,698 136,680
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,110,938 2,085,047
- --------------------------------------------------------------------------------------------------------------------
2 Cash flows from investing activities
1 Additions to finance receivables (2,474,800) (6,481,200)
2 Collection of and proceeds from sales of finance receivables 1,938,368 5,825,456
3 Additions to fixed assets excluding equipment leased to others (519,108) (1,005,931)
4 Additions to equipment leased to others (289,594) (604,298)
5 Proceeds from sales of fixed assets excluding equipment 31,606 61,847
leased to others
6 Proceeds from sales of equipment leased to others 125,919 286,538
7 Purchases of marketable securities and security investments (521,364) (1,113,998)
8 Proceeds from sales of and maturity of marketable securities 569,846 921,965
and security investments
9 Increase in time deposits (12,085) (33,379)
10 (Increase) decrease in investments and other assets 7,527 (30,481)
11 Payments for additional investments in affiliated companies (16,016) (28,229)
net of cash acquired
12 Other 20,652 55,303
- --------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,139,049) (2,146,407)
- --------------------------------------------------------------------------------------------------------------------
3 Cash flows from financing activities
1 Purchases of common stock (142,090) (454,611)
2 Proceeds from issuance of long-term debt 907,482 1,686,564
3 Payments of long-term debt (561,651) (1,117,803)
4 Increase in short-term borrowings 132,004 30,327
5 Dividends paid (54,108) (110,876)
6 Other - 4,074
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 281,637 37,675
- --------------------------------------------------------------------------------------------------------------------
4 Effect of exchange rate changes on cash and cash equivalents (40,533) (41,447)
- --------------------------------------------------------------------------------------------------------------------
5 Net increase (decrease) in cash and cash equivalents 212,993 (65,132)
- --------------------------------------------------------------------------------------------------------------------
6 Cash and cash equivalents at beginning of period 1,657,160 1,657,160
- --------------------------------------------------------------------------------------------------------------------
7 Cash and cash equivalents at end of period 1,870,153 1,592,028
------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
-79-