Toyota Motor Corporation

Transcription

1 Company Fundamentals\Company Profile A Wright Investors' Service Research Report: Toyota Motor Corporation 440 Wheelers Farms Road Milford, CT U.S.A. COMPANY PROFILE Figures in Japanese Yen Wright Quality Rating:ABC7 TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business.the Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business. Stock Chart Officers Chairman Fujio Cho (Rep) Vice Chairman Kazuo Okamoto (Rep) Vice Chairman Katsuaki Watanabe (Rep) President Akio Toyoda (Rep) Vice President Yukitoshi Funo (Rep) Key Data Ticker: : 18,950,973,000,000 Major Industry: Automotive Sub Industry: Diversified Automotive Mfrs. Country: Japan Currency: Japanese Yen Fiscal Year Ends: March Employees 320,590 Stock Price (12/3/2010): 3, Recent stock performance 1 Week Weeks Weeks Weeks Earnings / Dividends (as of 9/30/2010) Earnings Dividends Most Recent Qtr Last 12 Months Ratio Analysis Price / Earnings Ratio Dividend Yield 1.37 Price / Ratio 0.54 Payout Ratio Price / Book Ratio 0.97 Held by Insiders Exchanges: NAS OSA TYO Share Type: Common Market Capitalization: 10,270,345,074,975 Total Shares Outstanding: 3,135,983,229 Closely Held Shares: 1,038,109,000

2 1 Toyotacho Toyota Aichi JAPAN Address Phone Home Page Copyright Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed reliable, but accuracy, completeness and opinions are not guaranteed.

3 Company Fundamentals\Comparative Business Analysis A Wright Investors' Service Research Report: Toyota Motor Corporation Provided By CorporateInformation.com 440 Wheelers Farms Road Milford, CT U.S.A. Wright Comparative Business Analysis Report Report Date: 12/3/2010 Company Description TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business.the Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business. Competitor Analysis Toyota Motor Corporation operates within the Motor vehicles and car bodies sector. This analysis compares Toyota Motor with three other companies: Honda Motor Co., Ltd. (2010 sales of 8.58 trillion Japanese Yen [US$ billion] of which 76 was Automobile Business), Nissan Motor Co Ltd (2010 sales: 7.52 trillion Japanese Yen [US$89.31 billion] of which 93 was Automobiles), and Motors Liquidation Company which is based in the United States (2008 sales of $ billion of which 99 was Automotive Products). Note: not all of these companies have the same fiscal year: the most recent data for each company are being used. Analysis During the year ended March of 2010, sales at Toyota Motor were trillion (US$ billion). This is a decrease of 7.7 versus 2009, when the company's sales were trillion. The sales level in 2010 was fairly close to the level five years ago: in 2005, Toyota Motor had sales of trillion. Contributing to the drop in overall sales was the 13.8 decline in Other, from billion to billion. There were also decreases in sales in Automotive (down 7.3 to trillion) and Financial Services (down 9.6 to 1.23 trillion). Recent at Toyota Motor (Figures in Trillions of Japanese Yen) The company derives most of its revenues in its home market of Japan: in 2010, this region's sales were trillion, which is equivalent to 59.2 of total sales. On a geographical basis, contributing to the decline in the company's sales in 2010 were the declines in Europe, where sales dropped 25.7 to 2.15 trillion. in North America were also lower, falling 7.0 (to 5.67 trillion). However, not all regions experienced a decline in sales. in Japan increased 50.2 (to trillion). also increased in Asia/Far East (up 8.4 to 2.66 trillion) and in Rest of the World (up 3.3 to 1.67 trillion). The company currently employs 320,590. With sales of trillion (US$ billion), this equates to sales of US$702,260 per employee. This is higher than the three comparable companies, which had sales between US$566,571 and US$613,082 per employee. Comparisons (Most Recent Fiscal Year) Company Year Ended (US$blns) Growth / Emp (US$) Largest Region

4 Toyota Motor Mar ,260 Japan (59.2) Honda Motor Co., Ltd. Mar ,425 North America (43.7) Nissan Motor Co Ltd Mar ,571 North America (35.7) Motors Liquidation Company Dec N/A 613,082 the United States (50.6) Recent Stock Performance In recent years, this stock has performed terribly. In fiscal year 2007, the stock traded as high as 8,350.00, versus 3, on 12/3/2010. For the 52 weeks ending 12/3/2010, the stock of this company was down 12.2 to 3, During the past 13 weeks, the stock has increased During the 12 months ending 9/30/2010, earnings per share totalled per share. Thus, the Price / Earnings ratio is These 12 month earnings are substantially greater than the earnings per share achieved during the last fiscal year of the company, which ended in March of 2010, when the company reported earnings of per share. Note that the earnings number - includes a 0.79 pre-tax charge in fiscal year This company is currently trading at 0.54 times sales. Toyota Motor is trading at 0.97 times book value. Since the price to book ratio is less than 1, this means that theoretically, the net value of the assets is greater than the value of a company as a going concern. Summary of company valuations (as of 12/3/2010). Company The market capitalization of this company is trillion (US$ billion). The capitalization of the floating stock (i.e., that which is not closely held) is 6.87 trillion (US$81.62 billion). Dividend Analysis During the 12 months ending 9/30/2010, Toyota Motor paid dividends totalling per share. Since the stock is currently trading at 3,275.00, this implies a dividend yield of 1.4. The company has paid a dividend for 6 straight years. Toyota Motor last raised its dividend during fiscal year 2008, when it raised its dividend to from During the same 12 month period ended 9/30/2010, the Company reported earnings of per share. Thus, the company paid 25.4 of its profits as dividends. Profitability Analysis On the trillion in sales reported by the company in 2010, the cost of goods sold totalled trillion, or 80.6 of sales (i.e., the gross profit was 19.4 of sales). This gross profit margin is better than the company achieved in 2009, when cost of goods sold totalled 82.6 of sales. There was a wide variation in the gross profit margins at the three comparable companies, from 3.9 of sales to 32.6 of sales. Some of this disparity may be due to different accounting standards. The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were 1.56 trillion, or 8.2 of sales. This EBITDA margin is better than the company achieved in 2009, when the EBITDA margin was equal to 5.0 of sales. In 2010, earnings before extraordinary items at Toyota Motor were billion, or 1.1 of sales. This profit margin is an improvement over the level the company achieved in 2009, when the profit margin was -2.1 of sales. The company's return on equity in 2010 was 2.1. This was significantly better than the -3.7 return the company achieved in (Extraordinary items have been excluded). Profitability Comparison P/E Price/ Price/ Book 52 Wk Pr Chg Toyota Motor Honda Motor Co., Ltd Nissan Motor Co Ltd Motors Liquidation Company N/A N/A Company Year Gross Profit EBITDA Margin Margin Earns bef. extra Toyota Motor Toyota Motor Honda Motor Co., Ltd Nissan Motor Co Ltd Motors Liquidation Company

5 Toyota Motor reports profits by product line. During 2010, the itemized operating profits at all divisions were billion, which is equal to 0.8 of total sales. Of all the product lines, Financial Services had the highest operating profits in 2010, with operating profits equal to 20.1 of sales. (However, Financial Services only accounts for 6 of total sales at Toyota Motor). Automotive had the lowest operating profit margin in 2010, with the operating profit showing a loss equivalent to 0.5 of sales. (This product line is the largest product line at Toyota Motor, accounting for approximately 91 of sales in 2010). However, in 2009, Financial Services had the lowest profit margin (-5.3 of sales versus -2.1 for Automotive). Inventory Analysis As of March 2010, the value of the company's inventory totalled 1.42 trillion. Since the cost of goods sold was trillion for the year, the company had 34 days of inventory on hand (another way to look at this is to say that the company turned over its inventory 10.7 times per year). Although the inventory level dropped by billion during FY2010, there was an increase in days in inventory from March 2009, when the company had 1.46 trillion, which was 31 days of sales in inventory. Research and Development Research and Development Expenses at Toyota Motor in 2010 were billion, which is equivalent to 3.8 of sales. In 2010, R&D expenditures dropped both as a percentage of sales and in actual amounts: In 2009, Toyota Motor spent billion on R&D, which was 4.4 of sales. This company's R&D expenditures in 2010 were less than all three companies as a percentage of sales: Honda Motor Co., Ltd. spent 5.4 of its sales on R&D, Nissan Motor Co Ltd spent 5.1, and Motors Liquidation Company spent 5.4. A large portion of the profits that Toyota Motor reported in 2010 are a result of its cut in R&D expenditures. In 2009, the company spent billion, which is billion higher than what it spent in If Toyota Motor had spent the same amount on R&D in 2010 as it spent in 2009, it would have reported profits that were approximately 59 lower (ordinary income before taxes would have been billion instead of billion). Financial Position As of March 2010, the company's long term debt was 7.02 trillion and total liabilities (i.e., all monies owed) were trillion. The long term debt to equity ratio of the company is As of March 2010, the accounts receivable for the company were 6.46 trillion, which is equivalent to 124 days of sales. This is higher than at the end of 2009, when Toyota Motor had 100 days of sales in accounts receivable. Financial Positions Company Year LT Debt/ Equity Days AR Days Inv. R&D/ Toyota Motor Honda Motor Co., Ltd Nissan Motor Co Ltd Motors Liquidation Company 2008 N/A Note that some of the financial ratios stated within this analysis may be distorted because of sales in financing, leasing, etc., which can distort certain ratios. At Toyota Motor, sales of Financial Services totalled 1.23 trillion, which was equal to 6.47 of sales in Industry Overview Important Legal Notice Copyright The Winthrop Corporation Distributed by Wright Investors' Service, Inc. All Rights Reserved THIS REPORT IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. THE REPORTS ARE COMPUTER GENERATED AND MAY BE SUBJECT TO PROGRAMMATIC AND/OR CONTENT ERRORS. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

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7 Company Fundamentals\Summary Analysis SUMMARY ANALYSIS: Toyota Motor Corporation Per Share- Japanese Yen Year Price Value Ratios Equity Capital Earnings Dividends Fiscal Yr Ends: March Market Price Last Price/ Earnings Ratio Price/ Book Ratio Dividend Yield Earned Growth Profit Rate (ROE) Book Value Begin Yr 12 Month Earnings Per Share Change Payout Ratio 12 Month Dividends Per Share , , E , , E BD 3, , ACE , , AE , , ACE , , AE , , AE , n/c , AE n/c n/c , , AE n/c /3/2010 3, n/a n/a 3, n/c (A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - - INCLS 0.79 PRETAX CHG IN FIS 2010, - INCLS PRETAX CHG IN FIS 2009, - INCLS 3.57 PRETAX CHG IN FIS 2008, - INCLS 1.44 PRETAX CHG IN FIS 2007, - INCLS 1.28 PRETAX CHG IN FIS 2006, - INCLS PRETAX CR & PRETAX CHG IN FIS 2005 (INCLS PRETAX CR & PRETAX CHG MAR 2005), - INCLS PRETAX CR & 0.90 PRETAX CHG IN FIS 2004 (B): MAJOR ACCOUNTING STANDARDS SWITCH (C): INCLUDES THE EFFECTS OF A CHANGE IN ACCOUNTING POLICIES OR TAX LAWS - - ADOPTED FIN 47 FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS AND SFAS 153 FOR EXCHANGES OF NOMONETARY ASSETS IN FIS 2006, EARNINGS IMPACT IMMATERIAL IN BOTH CASES, - ADPTD 150 FOR CERTAIN FINANL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABS & EQUITY, 149, AN AMDMT OF STATEMENT 133, 145, AN AMDMT TO SFAS 13, TO ELIMINATE THE REQMNT THAT GN/LOSS FROM EXTNG OF DEBT TO BE TREATED AS XORD ITEM, 143 FOR ASSET RET'T OBLGNS & FIN 46 FOR CONSLDN OF VARIABLE INTEREST ENTITIES, EITF 00-21, EITF 02-9 & EITF 01-8 IN FIS 2004 (D): ACQ'D - TOYOTA AUTO BODY CO LTD, KANTO AUTO WORKS LTD, CENTRAL MOTOR CO LTD & PT TOYOTA MOTOR MANUFACTURING INDONESIA IN FIS 2004, (SOLD 3 J-PHONE GROUP) IN 2001 (E): BASED ON AVERAGE SHARES OUTSTANDING, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 200 WERE , - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2007 WERE , - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2006 WERE , - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2005 WERE , - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2004 WERE , FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2003 WERE Copyright Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed reliable, but accuracy, completeness and opinions are not guaranteed.

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9 Company Fundamentals\ Analysis SALES ANALYSIS: Toyota Motor Corporation Figures in millions of Japanese Yen Cost of Goods Sold Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) After Tax Income before Extraordinary Charges and Credits Employees Year Amount in millions Yearto-year Growth Amount in millions of Amount in millions of Amount in millions of Number Per Employee After Tax Income Per Employee ,424, ,746, ,654, , ,648 62,251,553 2,185, ,106, ,805, ,949, , ,702 61,232,973 2,496, ,054, ,412, ,530, , ,096 60,789,599 3,576, ,294, ,710, ,756, ,162, ,410 65,408,873 4,395, ,551, ,806, ,771, ,171, ,753 69,807,400 4,407, ,036, ,733, ,320, ,372, ,977 73,561,542 4,798, ,948, ,845, ,814, ,644, ,394 79,988,547 5,491, ,289, ,029, ,974, ,717, ,121 83,161,954 5,434, ,529, ,960, , , ,808 63,993,323-1,361, ,950, ,269, ,739, , ,590 59,112, ,345 Copyright Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed reliable, but accuracy, completeness and opinions are not guaranteed.

10 Company Fundamentals\Price Analysis PRICE ANALYSIS: Toyota Motor Corporation Per Share- Japanese Yen Quarter High Price Low Price Closing Price Quarterly Change 12 months Change 2002 Jan - Mar 3, , , n/a n/a Apr - Jun 3, , , n/a Jul - Sep 3, , , n/a Oct - Dec 3, , , n/a 2003 Jan - Mar 3, , , Apr - Jun 3, , , Jul - Sep 3, , , Oct - Dec 3, , , Jan - Mar 3, , , Apr - Jun 4, , , Jul - Sep 4, , , Oct - Dec 4, , , Jan - Mar 4, , , Apr - Jun 4, , , Jul - Sep 5, , , Oct - Dec 6, , , Jan - Mar 6, , , Apr - Jun 6, , , Jul - Sep 6, , , Oct - Dec 8, , , Jan - Mar 8, , , Apr - Jun 7, , , Jul - Sep 7, , , Oct - Dec 6, , , Jan - Mar 6, , , Apr - Jun 5, , ,

11 Jul - Sep 5, , , Oct - Dec 4, , , Jan - Mar 3, , , Apr - Jun 4, , , Jul - Sep 4, , , Oct - Dec 3, , , Jan - Mar 4, , , Apr - Jun 3, , , Jul - Sep 3, , , /3/2010 3, Copyright Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed reliable, but accuracy, completeness and opinions are not guaranteed.

12 Company Fundamentals\Earnings & Dividends Analysis EARNINGS AND DIVIDENDS ANALYSIS: Toyota Motor Corporation Per Share- Japanese Yen Fiscal Year Ends in March Earnings Per Share Dividends Per Share Fiscal Years 12 Months Quarterly Reported Earnings 12 Months Quarterly Reported Dividends Earnings Change Q1 Jun. Q2 Sep. Q3 Dec. Q4 Mar. Dividends Change Q1 Jun. Q2 Sep. Q3 Dec. Q4 Mar. Payout n/a n/a n/c n/a n/a D E n/a n/a n/a n/a E n/a n/a n/a n/a E n/a n/a n/a n/a E n/a n/a n/a BD ACE n/a n/a AE n/a n/a ACE n/a n/a AE n/a n/a AE n/a n/a AE n/c n/a n/a n/c 2010 AE n/c n/a n/a n/a n/c n/a n/a n/a n/c n/a n/a n/a n/c (A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - - INCLS 0.79 PRETAX CHG IN FIS 2010, - INCLS PRETAX CHG IN FIS 2009, - INCLS 3.57 PRETAX CHG IN FIS 2008, - INCLS 1.44 PRETAX CHG IN FIS 2007, - INCLS 1.28 PRETAX CHG IN FIS 2006, - INCLS PRETAX CR & PRETAX CHG IN FIS 2005 (INCLS PRETAX CR & PRETAX CHG MAR 2005), - INCLS PRETAX CR & 0.90 PRETAX CHG IN FIS 2004 (B): MAJOR ACCOUNTING STANDARDS SWITCH (C): INCLUDES THE EFFECTS OF A CHANGE IN ACCOUNTING POLICIES OR TAX LAWS - - ADOPTED FIN 47 FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS AND SFAS 153 FOR EXCHANGES OF NOMONETARY ASSETS IN FIS 2006, EARNINGS IMPACT IMMATERIAL IN BOTH CASES, - ADPTD 150 FOR CERTAIN FINANL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABS & EQUITY, 149, AN AMDMT OF STATEMENT 133, 145, AN AMDMT TO SFAS 13, TO ELIMINATE THE REQMNT THAT GN/LOSS FROM EXTNG OF DEBT TO BE TREATED AS XORD ITEM, 143 FOR ASSET RET'T OBLGNS & FIN 46 FOR CONSLDN OF VARIABLE INTEREST ENTITIES, EITF 00-21, EITF 02-9 & EITF 01-8 IN FIS 2004 (D): ACQ'D - TOYOTA AUTO BODY CO LTD, KANTO AUTO WORKS LTD, CENTRAL MOTOR CO LTD & PT TOYOTA MOTOR MANUFACTURING INDONESIA IN FIS 2004, (SOLD 3 J-PHONE GROUP) IN 2001 (E): BASED ON AVERAGE SHARES OUTSTANDING, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 200 WERE , - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2007 WERE , - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2006 WERE , - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2005 WERE , - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2004 WERE , FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2003 WERE Copyright Distributed by Wright Investors' Service, Inc. All Rights Reserved. Except for quotations by established news media, no pages on this site may be reproduced, stored in a retrieval system, or transmitted for commercial purposes, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission. Information is believed

13 reliable, but accuracy, completeness and opinions are not guaranteed.