SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of November, 2023

Commission File Number 001-14948

Toyota Motor Corporation

(Translation of Registrant’s Name Into English)

 

 

1, Toyota-cho, Toyota City,

Aichi Prefecture 471-8571,

Japan

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F      X        Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                 

 

 

 


Material Contained in this Report:

 

I.

Executive Summary of the Japanese-language Quarterly Securities Report, as filed with the Director of the Kanto Local Finance Bureau on November 10, 2023.

 

II.

The registrant’s Unaudited Condensed Consolidated Financial Statements for the periods ended September 30, 2023, prepared in accordance with IFRS, which materially conform to the Consolidated Financial Statements filed with the Japanese-language Quarterly Securities Report referred to above.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Toyota Motor Corporation

By:

 

    /s/     Yoshihide Moriyama

 

Name:

 

Yoshihide Moriyama

 

Title:

 

General Manager,

    Capital Strategy & Affiliated Companies Finance Division

Date: November 30, 2023

Japanese-language Quarterly Securities Report for the period ended September 30, 2023, as filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance of Japan on November 10, 2023, and which includes the following:

 

  I.

Corporate information

 

  A.

Corporate overview

 

  1.

History of changes in major business indices

 

  2.

Overview of business

 

  B.

Business

 

  1.

Risk factors

 

  2.

Management’s analysis of financial position, results of operations and cash flows

 

  3.

Material contracts

 

  C.

Company information

 

  1.

Share information

 

  2.

Directors and corporate auditors

 

  D.

Financial information

 

  1.

Condensed quarterly consolidated financial statements and notes

 

  2.

Other

 

  II.

Information on Guarantors

Auditors Report

Certificate

TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

Financial results

Consolidated vehicle unit sales in Japan and overseas increased by 585 thousand units, or 14.1%, to 4,744 thousand units in FY2024 first half (the first half ended September 30, 2023) compared with FY2023 first half (the first half ended September 30, 2022). Vehicle unit sales in Japan increased by 202 thousand units, or 23.3%, to 1,072 thousand units in FY2024 first half compared with FY2023 first half. Overseas vehicle unit sales increased by 382 thousand units, or 11.6%, to 3,672 thousand units in FY2024 first half compared with FY2023 first half.

The results of operations for FY2024 first half were as follows:

 

Sales revenues

   ¥ 21,981.6 billion    

(an increase of ¥4,272.2 billion or 24.1%

compared with FY2023 first half)

Operating income

   ¥ 2,559.2 billion    

(an increase of ¥1,417.8 billion or 124.2%

compared with FY2023 first half)

Income before income taxes

   ¥ 3,521.5 billion    

(an increase of ¥1,687.2 billion or 92.0%

compared with FY2023 first half)

Net income attributable to Toyota Motor Corporation

   ¥ 2,589.4 billion    

(an increase of ¥1,418.3 billion or 121.1%

compared with FY2023 first half)

The changes in operating income were as follows:

 

Marketing efforts

   an increase of ¥1,290.0 billion

Effects of changes in exchange rates

   an increase of ¥260.0 billion

Cost reduction efforts

   a decrease of ¥110.0 billion

Increase or decrease in expenses and expense reduction efforts

   a decrease of ¥220.0 billion

Other

   an increase of ¥197.8 billion

 

1

 

 


TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

 

Segment operating results

 

(i)

Automotive:

Sales revenues for the automotive operations increased by ¥4,036.2 billion, or 25.0%, to ¥20,165.3 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥1,344.3 billion, or 148.9%, to ¥2,247.2 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts.

 

(ii)

Financial services:

Sales revenues for the financial services operations increased by ¥264.9 billion, or 19.5%, to ¥1,621.3 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥45.9 billion, or 23.1%, to ¥244.9 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to decrease in valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States.

 

(iii)

All other:

Sales revenues for all other businesses increased by ¥92.2 billion, or 17.3%, to ¥625.6 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥41.1 billion, or 106.2%, to ¥79.8 billion in FY2024 first half compared with FY2023 first half.

 

2

 

 


TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

 

Geographic information

 

(i)

Japan:

Sales revenues in Japan increased by ¥2,320.3 billion, or 28.3%, to ¥10,510.3 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥723.1 billion, or 84.3%, to ¥1,581.0 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts and the effects of changes in exchange rates.

 

(ii)

North America:

Sales revenues in North America increased by ¥1,722.7 billion, or 25.1%, to ¥8,596.2 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥360.1 billion, to ¥289.1 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts and cost reduction efforts.

 

(iii)

Europe:

Sales revenues in Europe increased by ¥746.1 billion, or 39.0%, to ¥2,658.4 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥228.3 billion, to ¥182.3 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts and the effect of recording a loss of ¥96.9 billion in FY2023 first half from terminating vehicle production in Russia.

 

(iv)

Asia:

Sales revenues in Asia increased by ¥362.1 billion, or 9.2%, to ¥4,311.1 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥19.4 billion, or 5.0%, to ¥411.1 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts and cost reduction efforts.

 

(v)

Other (Central and South America, Oceania, Africa and the Middle East):

Sales revenues in other regions increased by ¥453.4 billion, or 26.1%, to ¥2,189.7 billion in FY2024 first half compared with FY2023 first half, and operating income increased by ¥79.7 billion, or 72.6%, to ¥189.6 billion in FY2024 first half compared with FY2023 first half. The increase in operating income was mainly due to marketing efforts.

 

3

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

            Yen in millions  
     Notes      March 31,
2023
    September 30,
2023
 

Assets

       

Current assets

                                                         

Cash and cash equivalents

        7,516,966       7,926,063  

Trade accounts and other receivables

        3,586,130       3,738,439  

Receivables related to financial services

        8,279,806       9,964,278  

Other financial assets

        1,715,675       3,494,692  

Inventories

        4,255,614       4,749,878  

Income tax receivable

        218,704       182,247  

Other current assets

        886,885       996,842  
     

 

 

   

 

 

 

Total current assets

        26,459,781       31,052,438  
     

 

 

   

 

 

 

Non-current assets

       

Investments accounted for using the equity method

        5,227,345       5,570,443  

Receivables related to financial services

        16,491,045       19,118,129  

Other financial assets

        10,556,431       11,185,272  

Property, plant and equipment

       

Land

        1,426,370       1,443,141  

Buildings

        5,464,811       5,718,603  

Machinery and equipment

        14,796,619       15,847,591  

Vehicles and equipment on operating leases

        6,774,427       7,383,194  

Construction in progress

        846,866       1,004,753  
     

 

 

   

 

 

 

Total property, plant and equipment, at cost

        29,309,093       31,397,283  
     

 

 

   

 

 

 

Less - Accumulated depreciation and impairment losses

        (16,675,119     (17,777,602
     

 

 

   

 

 

 

Total property, plant and equipment, net

        12,633,974       13,619,681  
     

 

 

   

 

 

 

Right of use assets

        491,368       514,696  

Intangible assets

        1,249,122       1,309,946  

Deferred tax assets

        387,427       441,902  

Other non-current assets

        806,687       848,884  
     

 

 

   

 

 

 

Total non-current assets

        47,843,399       52,608,953  
     

 

 

   

 

 

 

Total assets

        74,303,180       83,661,391  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

4

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

            Yen in millions  
     Notes      March 31,
2023
    September 30,
2023
 

Liabilities

                                                         

Current liabilities

       

Trade accounts and other payables

        4,986,309       5,227,888  

Short-term and current portion of long-term debt

        12,305,639       14,068,253  

Accrued expenses

        1,552,345       1,599,860  

Other financial liabilities

        1,392,397       1,560,246  

Income taxes payable

        404,606       651,446  

Liabilities for quality assurance

        1,686,357       1,839,034  

Other current liabilities

        1,632,063       1,958,229  
     

 

 

   

 

 

 

Total current liabilities

        23,959,715       26,904,958  
     

 

 

   

 

 

 

Non-current liabilities

       

Long-term debt

        17,074,634       19,330,739  

Other financial liabilities

        533,710       626,909  

Retirement benefit liabilities

        1,065,508       1,126,636  

Deferred tax liabilities

        1,802,346       2,120,186  

Other non-current liabilities

        603,052       699,195  
     

 

 

   

 

 

 

Total non-current liabilities

        21,079,251       23,903,665  
     

 

 

   

 

 

 

Total liabilities

        45,038,967       50,808,623  
     

 

 

   

 

 

 

Shareholders’ equity

       

Common stock

        397,050       397,050  

Additional paid-in capital

        498,728       498,052  

Retained earnings

        28,343,296       30,747,689  

Other components of equity

        2,836,195       4,102,743  

Treasury stock

        (3,736,562     (3,852,421
     

 

 

   

 

 

 

Total Toyota Motor Corporation shareholders’ equity

        28,338,706       31,893,112  
     

 

 

   

 

 

 

Non-controlling interests

        925,507       959,656  
     

 

 

   

 

 

 

Total shareholders’ equity

        29,264,213       32,852,768  
     

 

 

   

 

 

 

Total liabilities and shareholders’ equity

        74,303,180       83,661,391  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

5

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

            Yen in millions  
     Notes      For the first
half ended
September 30,

2022
    For the first
half ended
September 30,

2023
 

Sales revenues

                    

Sales of products

     VIII        16,363,930       20,383,442  

Financial services

     VIII        1,345,419       1,598,175  
     

 

 

   

 

 

 

Total sales revenues

     VIII                    17,709,348                   21,981,617  
     

 

 

   

 

 

 

Costs and expenses

       

Cost of products sold

        14,049,248       16,542,695  

Cost of financial services

        845,222       1,006,082  

Selling, general and administrative

        1,673,434       1,873,546  
     

 

 

   

 

 

 

Total costs and expenses

        16,567,905       19,422,323  
     

 

 

   

 

 

 

Operating income

        1,141,444       2,559,294  
     

 

 

   

 

 

 

Share of profit (loss) of investments accounted for

using the equity method

        304,623       378,530  

Other finance income

        197,354       337,941  

Other finance costs

        (70,350     (44,300

Foreign exchange gain (loss), net

        291,455       299,376  

Other income (loss), net

        (30,250     (9,314
     

 

 

   

 

 

 

Income before income taxes

        1,834,276       3,521,525  
     

 

 

   

 

 

 

Income tax expense

        614,720       874,004  
     

 

 

   

 

 

 

Net income

        1,219,556       2,647,521  
     

 

 

   

 

 

 

Net income attributable to

       

Toyota Motor Corporation

        1,171,084       2,589,428  

Non-controlling interests

        48,472       58,093  
     

 

 

   

 

 

 

Net income

        1,219,556       2,647,521  
     

 

 

   

 

 

 
            Yen  

Earnings per share attributable to Toyota Motor Corporation

       

Basic and Diluted

     IX        85.42       191.26  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

6

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

            Yen in millions  
     Notes      For the first
half ended
September 30,
2022
    For the first
half ended
September 30,
2023
 

Net income

                                 1,219,556                   2,647,521  

Other comprehensive income, net of tax

       

Items that will not be reclassified to profit (loss)

       

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        26,178       376,618  

Remeasurements of defined benefit plans

        (8,696     (5,201

Share of other comprehensive income of equity method investees

        (80,105     178,815  
     

 

 

   

 

 

 

Total of items that will not be reclassified to profit (loss)

        (62,622     550,232  
     

 

 

   

 

 

 

Items that may be reclassified subsequently to profit (loss)

       

Exchange differences on translating foreign operations

        1,243,648       944,115  

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (183,228     (64,377

Share of other comprehensive income of equity method investees

        237,212       167,894  
     

 

 

   

 

 

 

Total of items that may be reclassified subsequently to profit (loss)

        1,297,631       1,047,633  
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        1,235,009       1,597,865  
     

 

 

   

 

 

 

Comprehensive income

        2,454,565       4,245,386  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to

       

Toyota Motor Corporation

        2,371,417       4,145,722  

Non-controlling interests

        83,147       99,664  
     

 

 

   

 

 

 

Comprehensive income

        2,454,565       4,245,386  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

7

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

            Yen in millions  
     Notes      For the second
quarter ended
September 30,

2022
    For the second
quarter ended
September 30,

2023
 

Sales revenues

                    

Sales of products

     VIII                    8,519,475                   10,597,988  

Financial services

     VIII        698,757       836,798  
     

 

 

   

 

 

 

Total sales revenues

     VIII        9,218,232       11,434,786  
     

 

 

   

 

 

 

Costs and expenses

       

Cost of products sold

        7,349,121       8,501,716  

Cost of financial services

        445,382       563,134  

Selling, general and administrative

        860,940       931,543  
     

 

 

   

 

 

 

Total costs and expenses

        8,655,443       9,996,392  
     

 

 

   

 

 

 

Operating income

        562,789       1,438,394  
     

 

 

   

 

 

 

Share of profit (loss) of investments accounted for

using the equity method

        133,554       185,174  

Other finance income

        71,561       147,813  

Other finance costs

        (50,988     (20,961

Foreign exchange gain (loss), net

        108,196       52,600  

Other income (loss), net

        (12,583     (2,047
     

 

 

   

 

 

 

Income before income taxes

        812,528       1,800,972  
     

 

 

   

 

 

 

Income tax expense

        351,225       480,341  
     

 

 

   

 

 

 

Net income

        461,303       1,320,631  
     

 

 

   

 

 

 

Net income attributable to

       

Toyota Motor Corporation

        434,264       1,278,056  

Non-controlling interests

        27,040       42,575  
     

 

 

   

 

 

 

Net income

        461,303       1,320,631  
     

 

 

   

 

 

 
            Yen  

Earnings per share attributable to Toyota Motor Corporation

       

Basic and Diluted

     IX        31.73       94.51  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

8

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

            Yen in millions  
     Notes      For the second
quarter ended
September 30,

2022
    For the second
quarter ended
September 30,

2023
 

Net income

                                 461,303                   1,320,631  

Other comprehensive income, net of tax

       

Items that will not be reclassified to profit (loss)

       

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (15,435     1,584  

Remeasurements of defined benefit plans

        (5,168     (2,127

Share of other comprehensive income of equity method investees

        (20,100     117,892  
     

 

 

   

 

 

 

Total of items that will not be reclassified to profit (loss)

        (40,703     117,349  
     

 

 

   

 

 

 

Items that may be reclassified subsequently to profit (loss)

       

Exchange differences on translating foreign operations

        325,505       183,933  

Net changes in revaluation of financial assets measured at fair
value through other comprehensive income

        (95,968     (56,773

Share of other comprehensive income of equity method investees

        116,117       126,358  
     

 

 

   

 

 

 

Total of items that may be reclassified subsequently to profit (loss)

        345,653       253,519  
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        304,951       370,868  
     

 

 

   

 

 

 

Comprehensive income

        766,254       1,691,499  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to

       

Toyota Motor Corporation

        736,238       1,645,123  

Non-controlling interests

        30,016       46,376  
     

 

 

   

 

 

 

Comprehensive income

        766,254       1,691,499  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

9

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Changes in Equity

 

 

For the first half ended September 30, 2022

 

          Yen in millions  
    Notes     Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Other
components
of equity
    Treasury
stock
    Toyota Motor
Corporation
shareholders’
equity
    Non-controlling
interests
    Total
shareholders’
equity
 

Balances at April 1, 2022

      397,050       498,575       26,453,126       2,203,254       (3,306,037     26,245,969       908,851       27,154,820  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

                 

Net income

                  1,171,084                   1,171,084       48,472       1,219,556  

Other comprehensive income, net of tax

                        1,200,334             1,200,334       34,675       1,235,009  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

                  1,171,084       1,200,334             2,371,417       83,147       2,454,565  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners and other

                 

Dividends paid

    VII                   (385,792                 (385,792     (69,506     (455,299

Repurchase of treasury stock

                              (195,545     (195,545           (195,545

Reissuance of treasury stock

            334                   573       907             907  

Equity transactions and other

            297                         297       602       899  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

            631       (385,792           (194,972     (580,134     (68,905     (649,038
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reclassification to retained earnings

                  66,577       (66,577                        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at September 30, 2022

      397,050       499,206       27,304,994       3,337,011       (3,501,009     28,037,253       923,094       28,960,346  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

For the first half ended September 30, 2023

 

   
          Yen in millions  
    Notes     Common
stock
    Additional
paid-in
capital
    Retained
earnings
    Other
components
of equity
    Treasury
stock
    Toyota Motor
Corporation
shareholders’
equity
    Non-controlling
interests
    Total
shareholders’
equity
 

Balances at April 1, 2023

      397,050       498,728       28,343,296       2,836,195       (3,736,562     28,338,706       925,507       29,264,213  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

                 

Net income

                  2,589,428                   2,589,428       58,093       2,647,521  

Other comprehensive income, net of tax

                        1,556,294             1,556,294       41,571       1,597,865  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

                  2,589,428       1,556,294             4,145,722       99,664       4,245,386  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with owners and other

                 

Dividends paid

    VII                   (474,781                 (474,781     (74,812     (549,593

Repurchase of treasury stock

                              (116,507     (116,507           (116,507

Reissuance of treasury stock

            263                   649       911             911  

Equity transactions and other

            (939                       (939     9,296       8,358  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

            (676     (474,781           (115,858     (591,316     (65,516     (656,831
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reclassification to retained earnings

                  289,746       (289,746                        
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at September 30, 2023

      397,050       498,052       30,747,689       4,102,743       (3,852,421     31,893,112       959,656       32,852,768  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

10

 

 


TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Cash Flows

 

 

            Yen in millions  
     Notes      For the first
half ended
September 30,
2022
    For the first
half ended
September 30,
2023
 

Cash flows from operating activities

                                                                                

Net income

        1,219,556       2,647,521  

Depreciation and amortization

        1,016,123       1,019,961  

Interest income and interest costs related to financial services, net

        (355,403     (367,298

Share of profit (loss) of investments accounted for using the equity method

        (304,623     (378,530

Income tax expense

        614,720       874,004  

Changes in operating assets and liabilities, and other

        (398,273     (1,899,459

Interest received

        677,731       1,038,446  

Dividends received

        355,592       463,630  

Interest paid

        (229,205     (482,012

Income taxes paid, net of refunds

        (937,422     (638,183
     

 

 

   

 

 

 

Net cash provided by (used in) operating activities

        1,658,797       2,278,079  
     

 

 

   

 

 

 

Cash flows from investing activities

       

Additions to fixed assets excluding equipment leased to others

        (733,675     (847,498

Additions to equipment leased to others

        (930,723     (1,298,943

Proceeds from sales of fixed assets excluding equipment leased to others

        21,016       67,703  

Proceeds from sales of equipment leased to others

        876,929       932,990  

Additions to intangible assets

        (160,772     (147,974

Additions to public and corporate bonds and stocks

        (659,075     (1,014,675

Proceeds from sales of public and corporate bonds and stocks and

upon maturity of public and corporate bonds

        744,952       1,215,728  

Other, net

     X        58,857       (1,558,924
     

 

 

   

 

 

 

Net cash provided by (used in) investing activities

        (782,490     (2,651,591
     

 

 

   

 

 

 

Cash flows from financing activities

       

Increase (decrease) in short-term debt

        121,280       278,309  

Proceeds from long-term debt

        4,574,105       5,261,465  

Payments of long-term debt

        (4,444,965     (4,328,396

Dividends paid to Toyota Motor Corporation common shareholders

     VII        (385,792     (474,781

Dividends paid to non-controlling interests

        (69,506     (74,812

Reissuance (repurchase) of treasury stock

        (195,545     (116,507

Other, net

              8,758  
     

 

 

   

 

 

 

Net cash provided by (used in) financing activities

        (400,424     554,035  
     

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

        390,632       228,573  
     

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

        866,514       409,097  
     

 

 

   

 

 

 

Cash and cash equivalents at beginning of period

        6,113,655       7,516,966  
     

 

 

   

 

 

 

Cash and cash equivalents at end of period

        6,980,169       7,926,063  
     

 

 

   

 

 

 

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

11

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

I.

Reporting entity

Toyota Motor Corporation (“TMC”) is a limited liability, joint-stock company located in Japan, and TMC’s principal executive offices are registered in Toyota City, Aichi Prefecture. For the first half and second quarter ended September 30, 2023, the condensed quarterly consolidated financial statements of the group consist of TMC, its consolidated subsidiaries (collectively, “Toyota”) and their interests in associates and joint ventures.

Toyota and its associates are primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world. In addition, Toyota and its associates provide financing, vehicle leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.

 

II.

Basis of preparation

1. Compliance with international financial reporting standards

Toyota’s condensed quarterly consolidated financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed quarterly consolidated financial statements should be read in conjunction with Toyota’s consolidated financial statements for the fiscal year ended March 31, 2023, since the condensed quarterly consolidated financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

The condensed quarterly consolidated financial statements were approved on November 1, 2023 by the Board of Directors.

2. Basis of measurement

Toyota’s condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value and assets and liabilities associated with defined benefit plans.

3. Functional currency and presentation currency

The condensed quarterly consolidated financial statements are presented in Japanese yen, which is the functional currency of TMC. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated. Amounts may not sum to totals due to rounding.

 

III.

Material accounting policies

Toyota’s condensed quarterly consolidated financial statements are prepared based on the same accounting policies as those applied and described in the consolidated financial statements for the fiscal year ended March 31, 2023.

 

12

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

IV.

Significant accounting judgments and estimates

The preparation of the condensed quarterly consolidated financial statements in conformity with IFRS requires management to make judgments, estimates, and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates were revised and in any future periods affected.

The condensed quarterly consolidated financial statements are prepared based on generally the same judgments and estimations as those applied and described in Toyota’s consolidated financial statements for the fiscal year ended March 31, 2023.

 

13

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

V.

Segment information

1. Outline of reporting segments

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 and distributes sedans, minivans, compact cars, SUVs, trucks and related parts and accessories. The Financial services segment consists primarily of financing and vehicle leasing operations to assist in the merchandising of Toyota’s products as well as other products. The All other segment includes telecommunications and other businesses.

2. Segment operating results

For the first half ended September 30, 2022:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                                                                                              

Revenues from external customers

     16,109,561        1,345,419        254,369              17,709,348  

Inter-segment revenues and transfers

     19,522        10,970        279,069        (309,562      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     16,129,083        1,356,388        533,439        (309,562     17,709,348  

Operating expenses

     15,226,094        1,157,451        494,744        (310,384     16,567,905  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     902,989        198,937        38,695        822       1,141,444  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the first half ended September 30, 2023:

             
     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

             

Revenues from external customers

     20,131,829        1,598,175        251,613              21,981,617  

Inter-segment revenues and transfers

     33,479        23,191        374,053        (430,723      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     20,165,308        1,621,366        625,666        (430,723     21,981,617  

Operating expenses

     17,918,009        1,376,466        545,862        (418,014     19,422,323  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     2,247,299        244,900        79,804        (12,709     2,559,294  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

14

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

For the second quarter ended September 30, 2022:

 

     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

                                                                                                                              

Revenues from external customers

     8,392,069        698,757        127,406              9,218,232  

Inter-segment revenues and transfers

     16,910        5,507        143,672        (166,089      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     8,408,979        704,264        271,078        (166,089     9,218,232  

Operating expenses

     7,955,249        619,840        250,760        (170,406     8,655,443  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     453,731        84,424        20,318        4,317       562,789  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the second quarter ended September 30, 2023:

             
     Yen in millions  
     Automotive      Financial
services
     All other      Elimination     Consolidated  

Sales revenues

             

Revenues from external customers

     10,462,045        836,798        135,943              11,434,786  

Inter-segment revenues and transfers

     15,319        9,388        183,280        (207,987      
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     10,477,363        846,186        319,223        (207,987     11,434,786  

Operating expenses

     9,175,703        748,579        279,645        (207,534     9,996,392  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     1,301,661        97,608        39,578        (453     1,438,394  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Accounting policies applied by each segment are in conformity with those of Toyota’s condensed quarterly consolidated financial statements. Transfers between industry segments are made in accordance with terms and conditions in the ordinary course of business.

 

15

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

3. Geographic information

For the first half ended September 30, 2022:

 

     Yen in millions  
     Japan      North America     Europe     Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                                                                                                        

Revenues from external customers

     3,973,602        6,719,009       1,819,181       3,498,495        1,699,061              17,709,348  

Inter-segment revenues and transfers

     4,216,356        154,498       93,204       450,520        37,254        (4,951,832      
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

     8,189,958        6,873,507       1,912,385       3,949,015        1,736,315        (4,951,832     17,709,348  

Operating expenses

     7,332,030        6,944,539       1,958,366       3,557,368        1,626,398        (4,850,796     16,567,905  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     857,927        (71,031     (45,981     391,647        109,917        (101,036     1,141,444  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

  For the first half ended September 30, 2023:

 

           
     Yen in millions  
     Japan      North America     Europe     Asia      Other      Elimination     Consolidated  

Sales revenues

                 

Revenues from external customers

     5,158,456        8,454,796       2,575,613       3,724,613        2,068,138              21,981,617  

Inter-segment revenues and transfers

     5,351,855        141,487       82,875       586,572        121,647        (6,284,436      
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

     10,510,310        8,596,283       2,658,488       4,311,185        2,189,785        (6,284,436     21,981,617  

Operating expenses

     8,929,231        8,307,132       2,476,089       3,900,067        2,000,101        (6,190,298     19,422,323  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     1,581,079        289,151       182,399       411,119        189,684        (94,138     2,559,294  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

16

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

For the second quarter ended September 30, 2022:

 

     Yen in millions  
     Japan      North America     Europe     Asia      Other      Elimination     Consolidated  

Sales revenues

                                                                                                                                                                        

Revenues from external customers

     2,064,560        3,456,159       895,413       1,922,154        879,946              9,218,232  

Inter-segment revenues and transfers

     2,225,630        67,445       43,932       231,197        27,647        (2,595,851      
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

     4,290,191        3,523,603       939,345       2,153,351        907,593        (2,595,851     9,218,232  

Operating expenses

     3,769,028        3,609,234       1,004,938       1,974,433        843,512        (2,545,701     8,655,443  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     521,163        (85,630     (65,593     178,918        64,081        (50,150     562,789  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

  For the second quarter ended September 30, 2023:

 

           
     Yen in millions  
     Japan      North America     Europe     Asia      Other      Elimination     Consolidated  

Sales revenues

                 

Revenues from external customers

     2,570,275        4,429,081       1,320,159       2,021,702        1,093,567              11,434,786  

Inter-segment revenues and transfers

     2,834,481        75,128       39,262       324,904        71,574        (3,345,350      
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

     5,404,757        4,504,209       1,359,422       2,346,607        1,165,141        (3,345,350     11,434,786  

Operating expenses

     4,525,627        4,334,716       1,260,113       2,121,690        1,060,865        (3,306,618     9,996,392  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Operating income

     879,130        169,493       99,309       224,917        104,276        (38,732     1,438,394  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

“Other” consists of Central and South America, Oceania, Africa and the Middle East.

The above amounts are aggregated by region based on the location of the country where TMC or consolidated subsidiaries are located. Transfers between geographic areas are made in accordance with terms and conditions in the ordinary course of business.

 

17

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

4. Sales revenues by location of external customers

In addition to the disclosure requirements under IFRS, Toyota discloses this information in order to provide financial statements users with valuable information.

 

                           Yen in  millions                        
     For the first half ended September 30,  
     2022      2023  

Japan

     2,903,012        3,775,930  

North America

     6,726,406        8,474,279  

Europe

     1,766,966        2,508,640  

Asia

     3,570,439        3,826,384  

Other

     2,742,526        3,396,385  
  

 

 

    

 

 

 

Total

     17,709,348        21,981,617  
  

 

 

    

 

 

 
                           Yen in  millions                        
     For the second quarter ended September 30,  
     2022      2023  

Japan

     1,527,138        1,887,446  

North America

     3,451,542        4,442,356  

Europe

     894,259        1,282,646  

Asia

     1,958,074        2,039,445  

Other

     1,387,219        1,782,892  
  

 

 

    

 

 

 

Total

     9,218,232        11,434,786  
  

 

 

    

 

 

 

“Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.

 

18

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VI.

Fair value measurements

1. Definition of fair value hierarchy

In accordance with IFRS, Toyota classifies fair value measurement into the following three levels based on the observability and significance of the inputs used.

 

Level 1:

 

Quoted prices in active markets for identical assets or liabilities

Level 2:

 

Fair value measurement based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly

Level 3:  

Fair value measurement based on models using unobservable inputs for the assets or liabilities

2. Method of fair value measurement

The fair value of assets and liabilities is determined using relevant market information and appropriate valuation methods.

The methods and assumptions for measuring the fair value of assets and liabilities are as follows:

(1) Cash and cash equivalents -

Cash equivalents include money market funds and other investments with original maturities of three months or less. In the normal course of business, substantially all cash and cash equivalents and time deposits are highly liquid and are carried at amounts which approximate fair value due to their short duration.

(2) Trade accounts and other receivables and Trade accounts and other payables -

These receivables and payables are carried at amounts which approximate fair value due to their short duration.

(3) Receivables related to financial services -

The fair value of receivables related to financial services is estimated by discounting expected cash flows to present value using internal assumptions, including prepayment speeds, expected credit losses and collateral value.

As unobservable inputs are utilized, the fair value of receivables related to financial services is classified as Level 3.

(4) Other financial assets -

(Public and corporate bonds)

Public and corporate bonds include government bonds. Japanese bonds and foreign bonds, including U.S., European and other bonds, represent 30% and 70% (as of March 31, 2023) and 30% and 70% (as of September 30, 2023) of public and corporate bonds, respectively. Toyota primarily uses quoted market prices for identical assets to measure the fair value of these securities.

 

19

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

(Stocks)

Listed stocks on the Japanese stock markets represent 86% (as of March 31, 2023) and 84% (as of September 30, 2023) of stocks that Toyota holds. Toyota primarily uses quoted market prices for identical assets to measure fair value of these securities. Therefore, stocks with an active market are classified as Level 1.

Fair value of stocks with no active market is measured by using the market approach or other appropriate methods. Therefore, stocks with no active market are thus classified as Level 3.

Price book-value ratios (“PBR”) of comparable companies, discount ratios of discounted cash flow valuation method and others are the significant unobservable inputs relating to the fair value measurement of stocks classified as Level 3. The fair value increases (decreases) as PBR of a comparable company rises (declines) or the discount rate declines (rises). The estimated increase or decrease in fair value of stocks if the unobservable inputs were to be replaced by other reasonable alternative assumptions are not significant.

These estimates are based on valuation methods that are considered appropriate in each case. The significant assumptions involved in the estimations include the financial condition and future prospects and trends of the investees and the outcome of the referenced transactions. Due to the uncertain nature of these assumptions or by using different assumptions and estimates, the fair value may be impacted materially.

The shares classified as Level 3 are measured by the responsible department using quarterly available information in accordance with Toyota’s consolidated financial accounting policies and reported to the supervisors along with the basis of the change in fair value.

(5) 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 primarily estimates the fair value of derivative financial instruments using industry-standard valuation models that require observable inputs including interest rates and foreign exchange rates, and the contractual terms. The usage of these models does not require significant judgment to be applied. These derivative financial instruments are classified as Level 2. In other certain cases when market data are not available, key inputs to the fair value measurement include quotes from counterparties, and other market data. Toyota assesses the reasonableness of changes of the quotes using observable market data. These derivative financial instruments are classified as Level 3. Toyota’s derivative fair value measurements consider assumptions about counterparty and Toyota’s own non-performance risk, using such as credit default probabilities.

 

20

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

(6) Short-term and long-term debt -

The fair values of short-term and long-term debt including the current portion, except for secured loans provided by securitization transactions using special-purpose entities (“Loans Based on Securitization”), are estimated based on the discounted amounts of future cash flows using Toyota’s current borrowing rates for similar liabilities. As these inputs are observable, the fair value of these debts is classified as Level 2.

The fair values of the Loans Based on Securitization are primarily estimated based on current market rates and credit spreads for debt with similar maturities. Internal assumptions including prepayment speeds and expected credit losses are used to estimate the timing of cash flows to be paid on the underlying securitized assets. In cases where these valuations utilize unobservable inputs, the fair value of the Loans Based on Securitization is classified as Level 3.

 

21

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

3. Financial instrument measured at fair value on recurring basis

The following table summarizes the fair values of the assets and liabilities measured at fair value on a recurring basis. Transfers between levels of the fair value are recognized at the date of the event or change in circumstances that caused the transfer:

 

     Yen in millions  
     March 31, 2023  
     Level 1      Level 2     Level 3      Total  

Other financial assets:

          

Financial assets measured at fair value through profit or loss

          

Public and corporate bonds

     98,458        88,989       6,369        193,816  

Stocks

                  168,214        168,214  

Derivative financial instruments

            610,340              610,340  

Other

     334,071        161,981              496,052  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     432,529        861,310       174,583        1,468,422  
  

 

 

    

 

 

   

 

 

    

 

 

 

Financial assets measured at fair value through other comprehensive income

          

Public and corporate bonds

     3,976,333        2,405,823       26,963        6,409,119  

Stocks

     3,214,720              199,060        3,413,780  

Other

     7,838                     7,838  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     7,198,891        2,405,823       226,023        9,830,736  
  

 

 

    

 

 

   

 

 

    

 

 

 

Other financial liabilities:

          

Financial liabilities measured at fair value through profit or loss

          

Derivative financial instruments

            (456,257            (456,257
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

            (456,257            (456,257
  

 

 

    

 

 

   

 

 

    

 

 

 
     Yen in millions  
     September 30, 2023  
     Level 1      Level 2     Level 3      Total  

Other financial assets:

          

Financial assets measured at fair value through profit or loss

          

Public and corporate bonds

     99,975        98,591       7,111        205,677  

Stocks

                  198,752        198,752  

Derivative financial instruments

            701,211              701,211  

Other

     368,949        224,589              593,537  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     468,924        1,024,390       205,863        1,699,177  
  

 

 

    

 

 

   

 

 

    

 

 

 

Financial assets measured at fair value through other comprehensive income

          

Public and corporate bonds

     4,094,536        2,702,624       22,980        6,820,140  

Stocks

     3,462,031              181,923        3,643,954  

Other

     9,233                     9,233  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

     7,565,800        2,702,624       204,903        10,473,327  
  

 

 

    

 

 

   

 

 

    

 

 

 

Other financial liabilities:

          

Financial liabilities measured at fair value through profit or loss

          

Derivative financial instruments

            (625,694            (625,694
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

            (625,694            (625,694
  

 

 

    

 

 

   

 

 

    

 

 

 

 

22

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

4. Changes in financial instruments classified as level 3 and measured at fair value on recurring basis

The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the periods ended September 30, 2022 and 2023:

 

     Yen in millions  
     For the first half ended September 30, 2022  
     Public and corporate
bonds
    Stocks     Derivative
financial instruments
     Total  

Balance at beginning of year

     21,852       319,294              341,146  

Total gains (losses)

         

Net income (loss)

     (142     24,331              24,190  

Other comprehensive income (loss)

           7,354              7,354  

Purchases and issuances

           6,004              6,004  

Sales and settlements

     (1,548     (2,679            (4,226

Transfer to (from) Level 3

     (451                  (451

Others

     11,861       29,957              41,818  
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance at end of period

     31,572       384,262              415,835  
  

 

 

   

 

 

   

 

 

    

 

 

 
     Yen in millions  
     For the first half ended September 30, 2023  
     Public and corporate
bonds
    Stocks     Derivative
financial instruments
     Total  

Balance at beginning of year

     33,332       367,274              400,606  

Total gains (losses)

         

Net income (loss)

     (88     18,453              18,364  

Other comprehensive income (loss)

           (1,829            (1,829

Purchases and issuances

     476       7,636              8,112  

Sales and settlements

     (3,118     (409            (3,527

Transfer to (from) Level 3

     490                    490  

Others

     (1,000     (10,450            (11,450
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance at end of period

     30,091       380,674              410,766  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss) in public and corporate bonds, stocks and derivative financial instruments, other than transactions related to financial services, are each included in “Other finance income” and “Other finance costs” in the accompanying condensed quarterly consolidated statement of income. Transactions related to financial services are included in each of “Sales revenues - Financial services” and “Cost of financial services” in the condensed quarterly consolidated statement of income.

In the reconciliation table above, derivative financial instruments are presented as net of assets and liabilities.

“Others” includes foreign currency translation adjustments for the first half ended September 30, 2022 and 2023.

 

23

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

5. Financial assets and liabilities measured at amortized cost

The following table summarizes the carrying amount and the fair value of financial assets and liabilities measured on an amortized cost basis:

 

     Yen in millions  
     March 31, 2023  
     Carrying
amount
     Fair value  
     Level 1      Level 2      Level 3      Total  

Receivables related to financial services

     24,770,851                      24,741,916        24,741,916  

Interest-bearing liabilities

              

Long-term debt (Including current portion)

     24,333,981               18,598,205        5,149,410        23,747,616  
     Yen in millions  
     September 30, 2023  
     Carrying
amount
     Fair value  
     Level 1      Level 2      Level 3      Total  

Receivables related to financial services

     29,082,407                      29,022,412        29,022,412  

Interest-bearing liabilities

              

Long-term debt (Including current portion)

     27,649,734               21,064,246        5,804,833        26,869,080  

Of financial assets and liabilities that are measured on an amortized cost basis, those with carrying values that approximate fair value are excluded from the table above.

 

24

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VII.

Dividends

The paid dividend amounts are as follows:

For the first half ended September 30, 2022

 

                Resolution                 

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

           Record date           

 

  

           Effective date           

 

The Board of
Directors Meeting
on May 11, 2022

   Common shares      385,792        28.00          March 31, 2022             May 27, 2022     

 

  

 

  

 

 

    

 

 

    

 

  

 

For the first half ended September 30, 2023

 

                Resolution                 

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

           Record date           

 

  

           Effective date           

 

The Board of
Directors Meeting
on May 10, 2023

   Common shares      474,781        35.00      March 31, 2023    May 26, 2023

 

  

 

  

 

 

    

 

 

    

 

  

 

Dividends of which the record date falls within the first half ended September 30, and the effective date is after the first half ended September 30 are as follows:

For the first half ended September 30, 2022

 

                Resolution                 

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

           Record date           

 

  

           Effective date           

 

The Board of
Directors Meeting
on November 1, 2022

   Common shares      342,187        25.00      September 30, 2022    November 22, 2022

 

  

 

  

 

 

    

 

 

    

 

  

 

For the first half ended September 30, 2023

 

                Resolution                 

 

  

Type of shares

 

   Total amount of
dividends

(yen in millions)
     Dividend per share
(yen)

 

    

           Record date           

 

  

           Effective date           

 

The Board of
Directors Meeting
on November 1, 2023

   Common shares      405,416        30.00      September 30, 2023    November 22, 2023

 

  

 

  

 

 

    

 

 

    

 

  

 

 

25

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

VIII.

Sales revenues

The table below shows Toyota’s sales revenues from external customers by business and by product category.

 

     Yen in millions  
     For the first half ended September 30,  
                 2022                              2023              

Sales of products

     

Automotive

     

Vehicles

     13,502,726        17,238,673  

Parts and components for production

     849,493        845,780  

Parts and components for after service

     1,378,898        1,539,364  

Other

     378,443        508,011  
  

 

 

    

 

 

 

Total automotive

     16,109,561        20,131,829  

All other

     254,369        251,613  
  

 

 

    

 

 

 

Total sales of products

     16,363,930        20,383,442  

Financial services

     1,345,419        1,598,175  
  

 

 

    

 

 

 

Total sales revenues

     17,709,348        21,981,617  
  

 

 

    

 

 

 
     Yen in millions  
     For the second quarter ended September 30,  
     2022      2023  

Sales of products

     

Automotive

     

Vehicles

     7,048,599        9,029,212  

Parts and components for production

     439,996        410,499  

Parts and components for after service

     722,627        804,923  

Other

     180,847        217,411  
  

 

 

    

 

 

 

Total automotive

     8,392,069        10,462,045  

All other

     127,406        135,943  
  

 

 

    

 

 

 

Total sales of products

     8,519,475        10,597,988  

Financial services

     698,757        836,798  
  

 

 

    

 

 

 

Total sales revenues

     9,218,232        11,434,786  
  

 

 

    

 

 

 

 

26

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

IX.

Earnings per share

Reconciliation of the difference between basic and diluted earnings per share attributable to Toyota Motor Corporation are as follows:

 

     Yen
in millions
     Thousands
of shares
     Yen  
     Net income
attributable to
Toyota Motor
Corporation
     Weighted-
average
common shares
     Earnings per share
attributable to
Toyota Motor
Corporation
 

For the first half ended September 30, 2022

        

Net income attributable to Toyota Motor Corporation

     1,171,084        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     1,171,084        13,710,052        85.42  
  

 

 

    

 

 

    

 

 

 

For the first half ended September 30, 2023

        

Net income attributable to Toyota Motor Corporation

     2,589,428        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     2,589,428        13,539,126        191.26  
  

 

 

    

 

 

    

 

 

 
     Yen
in millions
     Thousands
of shares
     Yen  
     Net income
attributable to
Toyota Motor
Corporation
    
Weighted-
average
common shares
     Earnings per share
attributable to
Toyota Motor
Corporation
 

For the second quarter ended September 30, 2022

        

Net income attributable to Toyota Motor Corporation

     434,264        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     434,264        13,687,535        31.73  
  

 

 

    

 

 

    

 

 

 

For the second quarter ended September 30, 2023

        

Net income attributable to Toyota Motor Corporation

     1,278,056        
  

 

 

    

 

 

    

 

 

 

Basic and Diluted earnings per share attributable to Toyota Motor Corporation

     1,278,056        13,522,589        94.51  
  

 

 

    

 

 

    

 

 

 

“Diluted earnings per share attributable to Toyota Motor Corporation” equals “Basic earnings per share attributable to Toyota Motor Corporation” for both the first halves and the second quarters ended September 30, 2022 and 2023, because there were no potential dilutive shares during such periods.

 

27

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

X.

Supplemental cash flow information

“Other, net” in cash flows from investing activities includes a net decrease in time deposits of ¥283,954 million and a net increase in time deposits of ¥1,352,870 million for the first half ended September 30, 2022 and 2023, respectively.

 

XI.

Contingencies

Guarantees -

Toyota enters into contracts with Toyota dealers to guarantee customers’ payments of their installment payables that arise from installment contracts between customers and Toyota dealers, as and when requested by Toyota dealers. 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, 2023 is ¥3,640,409 million. Liabilities for guarantees totaling ¥15,035 million have been provided as of September 30, 2023. Under these guarantee contracts, Toyota is entitled to recover any amount paid by Toyota from the customers whose original obligations Toyota has guaranteed.

Legal proceedings -

Toyota and other automakers have been named in certain class actions filed in Mexico, Australia, Israel, Brazil and Argentina relating to Takata airbag issues. The actions in Israel, Brazil and Argentina are being litigated. The actions in Mexico and Australia have been resolved.

Toyota is named as a defendant in an economic loss class action lawsuit in Australia in which damages are claimed on the basis that diesel particulate filters in certain vehicle models are defective. Toyota received an unfavorable judgment both in the primary court on April 7, 2022 and in the appeal court on March 27, 2023. The judgments included a finding that there was a perceived reduction in vehicle value of certain vehicle models. Toyota disagrees with the judgments and has filed an application for a further appeal. Other claims of economic loss in this class action lawsuit continue to be litigated at the court of first instance. In estimating the provision Toyota should record in the condensed quarterly consolidated financial statements as a result of the aforementioned judgments, Toyota has considered various factors including the legal and factual circumstances of the case, the contents of the judgments, and the views of legal counsel. The currently estimated probable economic outflow related to the class action is immaterial to Toyota’s consolidated financial position, results of operations and cash flows. At this stage, however, the final outcome and therefore ultimate financial liability for Toyota on account of this matter cannot be predicted with certainty.

 

28

 

 


TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

In April 2020, Toyota reported possible anti-bribery violations related to a Thai subsidiary to the SEC and the Department of Justice (“DOJ”), and is cooperating with their investigations. Investigations by governmental authorities related to these matters could result in the imposition of civil or criminal penalties, fines or other sanctions, or litigation. Toyota cannot predict the scope, duration or outcome of these matters at this time.

Toyota also has various other pending legal actions and claims, including without limitation personal injury and wrongful death lawsuits and claims in the United States, as well as intellectual property litigation, and is subject to government investigations from time to time.

Beyond the amounts accrued with respect to all aforementioned matters, Toyota is unable to estimate a range of reasonably possible loss, if any, for the pending legal matters because (i) many of the proceedings are in evidence gathering stages, (ii) significant factual issues need to be resolved, (iii) the legal theory or nature of the claims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of other matters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Therefore, for all of the aforementioned matters, which Toyota is in discussions to resolve, any losses that are beyond the amounts accrued could have an adverse effect on Toyota’s financial position, results of operations or cash flows.

 

29

 

 


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