Toyota Motor Corporation

Good afternoon, ladies and gentlemen. Thank you very much for coming. We'd now like to start this 2024, the financial results debriefing meeting. And I'm Irie, and I'd like to serve as the emcee for today's session. I really appreciate you for coming. The first, I would like to introduce Masahiro Yamamoto, to the Chief Head of the Accounting Division to report on new financial results of the FY2024 second quarter. We would like to express our heartfelt appreciation to our customers around the world who chose us, as well as our shareholders, dealers, and suppliers who support us.

Thank you.

First, let me provide a summary of the second quarter of the fiscal year ending March 2024. Operating income was 2,359.2 billion yen. We are grateful for the support of many stakeholders, including suppliers from production to logistics, sales, and services. In addition, our operating income increased compared to the same period of the previous fiscal year as a result of selling each car with care and at prices that match the product appeal we have refined on making ever better cars. As for the full year forecast, we have revised the forecast upward from the previous forecast to 4 trillion 500 billion yen In light of the impact of the exchange rate fluctuation as well as the efforts to improve profitability, the internal dividend will be 30 yen per share, a year-on-year increase of 5 yen, and we plan to proceed with 100 billion yen as the maximum as for the share we purchase. We intend to continuously evolve our cycle of growth together with stakeholders aiming to realize the mobility of society through the business foundation we have built up and through frontline efforts that maximize the effectiveness of such First, let me explain our financial results for the first half ended September 2023, covering six months from April to September. Consolidated vehicle sales for the period was at 4,744,000 units, which was 114.1% of the consolidated vehicle sales for the same period of the previous fiscal year. Toyota and Lexus brand vehicle sales was at 5,172,000 units, which was 109.1%. of such sales for the same period of the previous fiscal year. The sales volume increased in all regions. Also, we increased the sale of electrified vehicles, mainly HEVs, with electrified vehicles constituting 35.3% of the sales. Consolidated financial results were sales revenue of 21,981.6 billion yen, operating income 2,559.2 billion yen, income before income taxes of 3,521.5 billion yen, A net income of 2 trillion, 589.4 billion yen. I would like to explain the factors which impacted operating income year on year. First, the effects of foreign exchange rates increased operating income by 260 billion yen. Cost reduction efforts decreased operating income by 110 billion yen due to the impact of soaring materials prices. Marketing efforts increased operating income by 1 trillion, 290 billion yen. due to an increase in sales volume improvement of sales mix and price revisions mainly outside of japan an increase in expenses decreased operating done by 220 billion due to an increase in labor costs and investments in areas such as digitalization we also experienced a positive uplift of 197.8 billion largely due to swap valuation gains and losses as a result including overall impact of foreign exchange rates, swap valuation gains and losses, and other factors, operating income increased by 960 billion yen year-on-year. Let me explain the operating income for each region. Japan increased year-on-year due to strong sales. North America, Europe, Asia, and other regions also increased year-on-year, supported by strong sales and price revisions based on product competitiveness. In the next slide, let me explain about our business in China as well as financial services business. As for business in China, due to steady demand for HEVs, our strength, we are maintaining Toyota and Lexus sales volume. The operating income of consolidated subsidiaries and our share of profit of investment accounted for Using the equity method, both decreased year-on-year due to the fluctuation in foreign exchange rates and increase in selling expenses. Regarding the financial services business, operating income including swap valuation gains losses for the fiscal year decreased year-on-year largely due to the decrease in margins.