Toyota Announces Financial Results for Fiscal 1999
25 May 1999
Toyota Announces Financial Results for Fiscal 1999
TOKYO, May 24 -- Toyota Motor Corporation (TMC) today
announced its financial results for fiscal 1999 (April 1998 to March 1999).
In TMC's consolidated results, net sales were 12,749 billion yen, up 9.2%
compared to last year. This was a result of favorable sales overseas, and
because the TMC subsidiaries IDO Corp. and Daihatsu Motor Co., Ltd., were
included in the consolidated results. With regard to profit and loss (*),
however, a 5.3% decrease to 774.9 billion yen was recorded in operating
income; ordinary income saw a decrease of 12.7% to 771.8 billion yen; and net
income was down 21.6% to 356.1 billion yen. In short, it was a year of
increased revenue and reduced profits.
In unconsolidated results, net sales were 7,525.5 billion yen, down 3.1%
compared to last year. With regard to profit and loss (*), a 13.6% decrease
was recorded in operating income to 543.8 billion yen; ordinary income was
higher than the full-term figure predicted in the interim report, but saw a
decrease of 16.8% to 578.0 billion yen; and net income was down 26.8% to
267.2 billion yen. This is the first time in five years (since FY1994 -- July
1993 to June 1994) that a decrease in both revenue and profits was recorded.
TMC's unconsolidated forecast for FY2000 (ending in March 2000) is for net
sales of 7,200 billion yen, operating income of 450 billion yen, ordinary
income of 510 billion yen, and net income of 300 billion yen. The method of
tax effect accounting is applicable to the next term.
* Because of a revision in accounting regulations, "enterprise taxes,"
formally included as part of "selling, general and administrative expenses"
has been accounted for under "income taxes." Therefore, the year-on-year
comparison has been made after converting the figures for FY1998 in accordance
with the new regulations.
In FY1999, TMC achieved its market share target of 40% excluding
minivehicles due to aggressive launches of attractive products such as the
Altezza and the Vitz. TMC will continue its efforts to increase demand in
FY2000 as well, through the introduction of attractive products and other
measures. It will also increase the intensity of its price-reduction
activities, as a means of further strengthening the foundations of its sales
and profits.
Also, TMC has decided to begin preparations for listing on the New York
and London stock exchanges, which it hopes to achieve in the second half of
this calendar year. With these overseas listings, the company looks forward
to developing a deeper understanding of TMC on the part of customers, business
partners and global investors, as well as an environment that allows easier
access to the company's stocks.
Highlights of Financial Results for
FY1999 Consolidated
(April 1998 to March 1999)
(Billions of yen unless otherwise specified;
amounts less than 100 million yen are omitted)
FY1998 FY1999 FY2000 forecast
(Apr. 1997 to (Apr. 1998 to (Apr. 1999 to
Mar. 1998) Mar. 1999) Mar. 2000)
Net Sales 11,678.3 12,749.0(9.2%) --
Operating income 818.1 774.9 (-5.3%) --
<7.0%> <6.1%> --
Ordinary income 884.5 771.8 (-12.7%) --
<7.6%> <6.1%> --
Net income 454.3 356.1 (-21.6%) --
<119.43 yen> <94.21 yen> --
<3.9%> <2.8%> --
<7.8%> <5.8%> --
Total assets 13,854.3 14,753.3 --
Shareholders' equity 6,021.8 6,175.9 --
Equity to assets ratio 43.5% 41.9% --
Shareholders' equity
per share 1,583.15 yen 1,642.90 yen --
Breakdown of increases
or decreases in
operating income (Decrease) --
Sales side loss etc.
110.0
Increase in labor costs
and depreciation expenses etc.
153.2
(Increase)
Effect of cost reduction
120.0
Foreign exchange fluctuations
100.0
Capital investment 788.7 973.4 920
Depreciation expenses 508.3 606.1 650
R&D spending 444.4 487.3 480
Vehicle production
(thousand units) 4,233.3 4,458.4(5.3%) --
Vehicle Sales:
Domestic -
(thousands units) 1,907.0 1,929.2(1.2%) --
Overseas -
(thousand units) 2,549.2 2,765.8(8.5%) --
Employees 159,035 183,879 --
Note:
1. Figures in parentheses () show year-on-year change
2. The February 20, 1998 revision of "Regulations Concerning the
Terminology, Forms and Preparation Methods of Consolidated Financial
Statements" (the Finance Ministry's Ordinance No. 28 of 1976) is
applied to both the current and the previous terms.
Toyota Decides Details of Stock Buy-Back Plan
Toyota Motor Corporation (TMC) announced that its board of directors
earlier today decided upon the details of a TMC stock buy-back plan that will
be used for stock options.
(1) Stock Option
To further motivate board members to improve corporate performance and
increase Toyota's international competitiveness, and in accordance with
Commercial Law 210.2, which allows for the transfer of shares to members of
the board of directors and employees, a stock option plan will be implemented
as follows:
Share Buy-Back Outline
Type of shares: TMC common shares
Number of shares: Total not to exceed 600,000
Total Value: Not to exceed 2.2 billion yen
Share Transfer Outline
Recipients: All 56 sitting directors as of the closing of the 95th
general shareholders meeting on June 25, 1999
Number of shares: Each director will receive options for no more than
15,000 and no fewer than 5,000 shares
Transfer price: 1.025 times the price quoted at the closing of the Tokyo
Stock Exchange on the date from which the plan becomes
effective (in the case of no trading on that day, the
closing price for the previous trading day will apply)
Effective date: August 1, 1999
Effective term: Within four years of the date from which the plan becomes
effective
Conditions:
(1) In the event of the retirement or death of a recipient, the following
conditions will apply:
Retirement: Recipients may exercise their options up to six months after
retirement
Death: The right to exercise options is void upon death of the recipient
(2) Other conditions will be contracted between TMC and the individual
directors on the basis of the resolutions of the general shareholders meeting
and the upcoming board of directors meeting.
* Note: This decision is contingent upon approval at the 95th general
shareholders meeting on June 25, 1999, of the proposal for "a buy-back of
shares which are to be transferred to TMC board members."
Toyota Announces Proposed Changes to Board of Directors
Toyota Motor Corporation (TMC) today announced proposed personnel changes
to its Board of Directors. These changes await approval at the 95th general
shareholders meeting to be held June 25, 1999.
Candidates for Directorship, Member of the Board
KAZUSHI IWATSUKI
President, Osaka Toyopet Company, Ltd.
AKIO KAMIYA
Director, Tokyo Toyopet Motor Sales Co. Ltd.
HIDETO OZAKI
General Manager, Finance Division
MASATAMI TAKIMOTO
General Manager, Planning Division III, Vehicle Development Center III
SHINRO IWATSUKI
General Manager, Overseas Planning Division
TSUTOMU KANO
General Manager, Machining Division II, Kamigo Plant
SHOKICHI YASUKAWA
General Manager, Production Engineering Planning Division
TETSUO HATTORI
Chief Engineer, Vehicle Development Center I
HIR0AKI YOSHIDA
General Manager, IT & Telecom Business Division
KATSUYUKI KAMIO
General Manager, Domestic Sales Planning Division
Personnel Leaving the Board of Directors
AKIHIRO WADA
Executive Vice President
IWAO OKIJIMA
Executive Vice President
AKIRA TAKAHASHI
Executive Vice President
AKIRA YOKOI
Executive Vice President
KANJI KURIOKA
Executive Vice President
TOSHIHIRO TAKAHASHI
Managing Director
TAKAYA YAMADA
Director
HIDEAKI OTAKA
Director
KOHSHI YOSHIDA
Director
KOJI MITANI
Director
Proposed Changes for Current Board Members
SHOICHIRO TOYODA
Honorary Chairman
Presently Chairman
HIROSHI OKUDA
Chairman
Presently President
FUJIO CHO
President
Presently Executive Vice President
KOSUKE IKEBUCHI
Executive Vice President
Presently Senior Managing Director
SHINICHI KATO
Executive Vice President
Presently Senior Managing Director
TADAAKI JAGAWA
Executive Vice President
Presently Senior Managing Director
NORITAKA SHIMIZU
Executive Vice President
Presently Senior Managing Director
RYUJI ARAKI
Senior Managing Director
Presently Managing Director
YOSHIO ISHIZAKA
Senior Managing Director
Presently Director
KOSUKE SHIRAMIZU
Senior Managing Director
Presently Managing Director
KATSUAKI WATANABE
Senior Managing Director
Presently Managing Director
KOICHIRO NOGUCHI
Senior Managing Director
Presently Managing Director
SUSUMU MIYOSHI
Senior Managing Director
Presently Managing Director
TOSHIAKI TAGUCHI
Senior Managing Director
Presently Managing Director
KAZUSHI IWATSUKI
Senior Managing Director
Presently President, Osaka Toyopet Company, Ltd.
AKIYOSHI MORITA
Senior Managing Director
Presently Managing Director
KOJI HASEGAWA
Managing Director
Presently Director
YASUHITO YAMAUCHI
Managing Director
Presently Director
HIROAKI KAZAOKA
Managing Director
Presently Director
ZENJI YASUDA
Managing Director
Presently Director
MASANAO MOTONAMI
Managing Director
Presently Director
HIDEAKI MIYAHARA
Managing Director
Presently Director
TAKASHI KAMIO
Managing Director
Presently Director
HIROYUKI WATANABE
Managing Director
Presently Director