Final Results - Part 2

Toyota Motor Corporation
16 May 2001

PART 2

                              BUSINESS RESULTS

(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)

1. Summary of Consolidated Financial Results of FY2001

(1) Financial Results
Although there were signs of continuing movements towards a self-sustained
recovery in the Japanese economy during the term, such as increases in capital
investments in the private sector, consumer spending remained sluggish and the
overall economic condition continued to be problematic. Overseas, the slowdown
in the U.S. economy became evident - while European economies remained stable.
Under these conditions, domestic vehicle sales increased by 145 thousand units,
or 6.7%, to 2,322 thousand units in FY2001 compared with FY2000, and Toyota's
market share (including minivehicles) increased by 1.4% to 38.9% in FY2001
compared with FY2000, as a result of the active introduction of new products
that met customer needs and the strong sales efforts of domestic dealers.
Excluding minivehicles, the market share increased by 0.9% to 43.1% In FY2001
compared with FY2000. Meanwhile, overseas, vehicle sales increased by 199
thousand units, or 6.6%, to 3,204 thousand units in FY2001 compared with FY2000.
This was due to steady demand mainly in North America and Europe. As a result,
total vehicle sales in Japan and overseas increased by 344 thousand units, or
6.6%, to 5,526 thousand units in FY2001 compared with FY2000.
Net sales increased by 544.9 billion yen, or 4.2%. to 13,424.4 billion yen in
FY2001 compared with FY2000, and operating income increased by 94.2 billion yen,
or 12.1%, to 870.1 billion yen in FY2001 compared with FY2000. Factors for the
increase in operating income in the amount of 400.0 billion yen included
marketing efforts in the amount of 210.0 billion yen and cost reduction efforts
in the amount of 190.0 billion yen. On the other hand, factors for the decrease
in operating income in the amount of 305.8 billion yen included the effects of
exchange rate fluctuations in the amount of 170.0 billion yen and the increase
of labor and R&D expenses and other factors in the amount of 135.8 billion yen.
Ordinary income increased by 175.2 billion yen, or 22.0%, to 972.2 billion yen
in FY2001 compared with FY2000. Net income increased by 64.5 billion yen, or
15.9%, to 471.2 billion yen in FY2001 compared with FY2000 despite the adverse
effect of retirement benefit expenses caused by the amortization of the
transition obligations at one time in FY2001 resulting from the adoption of the
'Accounting Standards for Retirement Benefit'.
Net sales, operating income, ordinary income, and net income all reached
historic highs.

(2) Cash Flows

Regarding the consolidated cash flows, cash flows from operating activities in
FY2001 resulted in the increase in cash and cash equivalents in the amount of 
1,108.8 billion yen mainly due to income before income taxes and minority
interest in consolidated subsidiaries in the amount of 864.1 billion
yen. Cash flows from operating activities increased by 561.3 billion yen in
FY2001 compared with FY2000. Cash flows from investing activities in FY2001
resulted in the decrease in cash and cash equivalents in the amount of 
1,047.0 billion yen mainly due to the payments for acquisition of property
plant and equipment in the amount of 818.7 billion yen. Compared with cash flows
from investing activities in FY2000, which resulted in the decrease in cash and
cash equivalents in the amount of 814.8 billion yen, the amount was adversely
decreased by 232.2 billion yen in FY2001. Cash flows from financing activities
in FY2001 resulted in the decrease in cash and cash equivalents in the amount of
148.9 billion yen mainly due to the payments for repurchase of treasury stocks
in the amount of 263.5 billion yen. Compared with cash flows from financing
activities in FY2000, which resulted in the increase in cash and cash
equivalents in the amount of 525.4 billion yen, the amount was adversely
decreased by 674.3 billion yen in FY2001. After consideration of the effect of
exchange rate changes on cash and cash equivalents and others, cash and cash
equivalents decreased by 52.5 billion yen, or 3.4%, to 1,507.2 billion yen at
end of FY2001 compared with the end of FY2000.    

Regarding the consolidated cash flows for FY2001 by segment, In non-financial
services business, cash flows from operating activities resulted in the increase
in cash and cash equivalents in the amount of 1,236.4 billion yen, cash flows
from investing activities resulted in the decrease in cash and cash equivalents
in the amount of 906.7 billion yen and cash flows from financing activities
resulted in the decrease in cash and cash equivalents in the amount of 336.9
billion yen Meanwhile, in the financial services business, cash flows from
operating activities resulted in the decrease in cash and cash equivalents in
the amount of 130.4 billion yen, cash flows from investing activities resulted
in the decrease in cash and cash equivalents in the amount of 202.0 billion yen
and cash flows from financing activities resulted in the increase in cash and
cash equivalents in the amount of 252.5 billion yen.

2. Consolidated financial results of FY2001 by segment

(1) Business Segment

Automotive:
Net sales of the automotive segment increased by 660.3 billion yen, or 5.9%, to.
11,940.0 billion yen in FY2001 compared with FY2000, and operating income
increased by 131.1 billion yen, or 19.2%, to 812.6 billion yen in FY2001
compared with FY2000. The increase in operating Income was due to increased
sales in Japan and North America as well as cost reduction efforts made by TMC
and its subsidiaries, despite the appreciation of the yen against the euro and
other currencies.

Financial services:
Net sales of the financial services segment increased by 35.8 billion yen, or
6.8%, to 564.5 billion yen in FY2001 compared with FY2000, and operating income
decreased by 5.1 billion yen, or 14.1%, to 31.1 billion yen in FY2001 compared
with FY2000. The decrease in operating income was mainly due to the effects of
preparations for the start-up of the credit card business.

All other:
Net sales of all other operations decreased by 124.6 billion yen, or 9.7%, to 
1,165.5 billion yen in FY2001 compared with FY2000, and operating loss was 2.0
billion yen, a decrease in operating income of 33.9 billion yen in FY2001
compared with FY2000. The decrease in operating income was mainly due to the
exclusion of IDO Corporation from the scope of consolidation in the second half
in FY2001 and start-up costs for intelligent transport systems (ITS) and
Internet-related business.

(2) Geographical Segment

Net sales in Japan increased by 447.5 billion yen, or 4.7% to 10,056,0 billion
yen in FY2001 compared with FY2000, and operating income increased by 81.9
billion yen, or 13.9% to 670.3 billion yen in FY2001 compared with FY2000. The
increase in operating income was mainly due to the cost reduction efforts made
by TMC and its subsidiaries as well as increases in the number of vehicles sold
in Japan and exported to other countries, despite the appreciation of the yen
against the euro and other currencies.

North America:
Net Sales in North America increased by 297.0 billion yen, or 6.4% to 4,964.8
billion yen in FY2001 compared with FY2000, and operating income increased by
41.8 billion yen, or 25.5%, to 205.8 billion yen in FY2001 compared with FY2000.
The increase in operating income was due to expansion in production at the
Indiana and other plants, as well as increases in the number of vehicles sold,
supported by a steady American economy.

Europe:
Net sales in Europe decreased by 57.8 billion yen, or 5.2%, to 1,047.0 billion
yen in FY2001 compared with FY2000, and operating loss was 23.0 billion yen, a
decrease in operating income of 14.2 billion yen in FY2001 compared with FY2000.
The decrease in operating income was due to the substantial depreciation of the
euro and the start-up costs of the new French plant despite increases in the
number of vehicles sold.

Other:
Net sales in other regions increased by 112.3 billion yen, or 13.5%, to 942.7
billion yen in FY2001 compared with FY2000, and operating income increased by
4.8 billion yen, or 94.8%, to 9.8 billion yen in FY2001 compared with FY2000,
mainly due to increases in the number of vehicles sold.

3. Distribution of Profits for FY2001

Regarding the dividends for FY2001, the interim dividend declared in November
2000 was 11 yen per share. The year-end dividend is scheduled to be increased by
1 yen to 14 yen per share, for a total of 25 yen per share, 1 yen higher than
FY2000, on an annual basis. Accordingly, the dividends payout ratio for FY2001
is 27.8%.

In addition, TMC repurchased and retired 64 million shares in the amount of
263.595 million yen in order to return profits to its shareholders.

4. Others

Litigation in the United States

On July 12, 1999, the United States Department of Justice, acting on behalf of,
the United States Environmental Protection Agency, filed a lawsuit against
Toyota Motor Sales, U.S.A Inc., a consolidated subsidiary of TMC (on November
22, 1999 TMC and Toyota Technical Center U.S.A Inc., a consolidated subsidiary
of TMC, were added as defendants) for alleged defects in on-board diagnostic
systems to detect gas vapor leaks installed in approximately 2.2 million units
of 1996 - 1998 model year Toyota vehicles sold in the U.S.A. in violation of the
U.S. Clean Air Act.
The Environmental Protection Agency and the Department of Justice are seeking
the injunction of sales of Toyota's 1996-1998 model year new Toyota vehicles
that do not comply with the Clean Air Act and other applicable federal
regulations, seeking TMC to take appropriate action to remedy the alleged
violation of the Clean Air Act, and seeking civil penalties of up to $27,500,for
each vehicle allegedly sold in violation of that Act.
Toyota cannot predict the timetable on which this lawsuit will proceed. Toyota
believes that it has valid defenses to this claim and intends to vigorously
defend this lawsuit.


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