Financial Summary
Toyota Motor Corporation
01 November 2004
FINANCIAL SUMMARY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
FY2005 Semi-Annual
(April 1, 2004 through September 30, 2004)
English translation from the original Japanese-language document
TOYOTA MOTOR CORPORATION
Cautionary Statement with Respect to Forward-Looking Statements
This report contains forward-looking statements that reflect Toyota's plans
and expectations. These forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other factors
that may cause Toyota's actual results, performance, achievements or financial
position to be materially different from any future results, performance,
achievements or financial position expressed or implied by these forward-looking
statements. These factors include: (i) changes in economic conditions and
market demand affecting, and the competitive environment in, the automotive
markets in Japan, North America, Europe and other markets in which Toyota
operates; (ii) fluctuations in currency exchange rates, particularly with
respect to the value of the Japanese yen, the U.S. dollar, the Euro, the
Australian dollar and the British pound; (iii) Toyota's ability to realize
production efficiencies and to implement capital expenditures at the levels and
times planned by management; (iv) changes in the laws, regulations and
government policies in the markets in which Toyota operates that affect Toyota's
automotive operations, particularly laws, regulations and policies relating to
trade, environmental protection, vehicle emissions, vehicle fuel economy and
vehicle safety, as well as changes in laws, regulations and government policies
that affect Toyota's other operations, including the outcome of future
litigation and other legal proceedings; (v) political instability in the markets
in which Toyota operates; (vi) Toyota's ability to timely develop and achieve
market acceptance of new products; and (vii) fuel shortages or interruptions in
transportation systems, labor strikes, work stoppages or other interruptions to,
or difficulties in, the employment of labor in the major markets where Toyota
purchases materials, components and supplies for the production of its products
or where its products are produced, distributed or sold.
A discussion of these and other factors which may affect Toyota's actual
results, performance, achievements or financial position is contained in
Toyota's annual report on Form 20-F, which is on file with the United States
Securities and Exchange Commission.
This report contains summarized and condensed financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America.
OVERVIEW OF ASSOCIATED COMPANIES
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
Toyota Motor Corporation ('TMC') and its associated companies (540 consolidated
subsidiaries and 226 affiliates as of September 30, 2004) are engaged mainly in
the automotive industry and also in the financial services and other businesses.
The following three business segments are segmented on the basis as stated under
the 'Segment Information' according to the business category.
Automotive:
This business involves the design, manufacturing and sale of passenger cars,
recreational vehicles, sport utility vehicles, minivans, trucks, buses and
related parts. Automobiles are manufactured mainly by TMC, Hino Motors, Ltd.,
and Daihatsu Motor Co., Ltd., but a portion of manufacturing is consigned to
Toyota Auto Body Co., Ltd. and others. Automobiles are also manufactured by
Toyota Motor Manufacturing, Kentucky, Inc. and other overseas companies.
Automobile parts are manufactured by TMC, Denso Corporation and others. These
products are sold through Tokyo Toyo-Pet Motor Sales Co., Ltd. and other dealers
and to certain large customers, directly by TMC. Overseas, sales are made
through Toyota Motor Sales, U.S.A., Inc. and other distributors and dealers. In
addition, Volkswagen vehicles are sold through TMC and some dealers in Japan.
Financial Services:
This business involves the provision of loans and leases to customers and the
provision of loans to dealers. Toyota Finance Corporation in Japan, Toyota
Motor Credit Corporation and other overseas subsidiaries and affiliates provide
sales financing for TMC's products and the products of its subsidiaries and
affiliates.
All other:
Other business includes the design, manufacturing and sale of housing,
telecommunications and other businesses. Housing is manufactured by TMC and
sold through domestic housing dealers.
* Consolidated subsidiaries, ** Companies accounted for under the equity method
Toyota Motor Corporation Flow of products
Flow of services
*Hino Motors, Ltd.
*Daihatsu Motor Co., Ltd.
Manufacturing companies in Japan Manufacturing companies overseas
*Toyota Motor Kyushu, Inc. *Toyota Motor Manufacturing, Kentucky, Inc.
*Toyota Motor Hokkaido, Inc. *Toyota Motor Manufacturing, Indiana, Inc.
*Toyota Auto Body Co., Ltd. *Toyota Motor Manufacturing Canada Inc.
*Kanto Auto Works, Ltd. *Toyota Motor Manufacturing (UK) Ltd.
*Araco Corporation *Toyota Motor Thailand Co., Limited
**Toyota Industries Corporation *Toyota Motor Corporation Australia Ltd.
**Aichi Steel Corporation *PT Astra Daihatsu Motor
**Toyoda Machine Works, Ltd. **New United Motor Manufacturing, Inc. etc.
**Aisin Seiki Co., Ltd.
**Denso Corporation
**Toyoda Gosei Co., Ltd.
**Aisin AW Co., Ltd. etc.
Dealers in Japan Distributors overseas
*Tokyo Toyota Motor Co., Ltd. *Toyota Motor Sales, U.S.A., Inc.
*Tokyo Toyo-Pet Motor Sales Co., Ltd. *Toyota Motor Marketing Europe n.v./s.a.
*Osaka Toyopet Co., Ltd. *Toyota Deutschland GmbH
*Toyota Tokyo Corolla Co., Ltd. *Toyota (GB) PLC
*Tokyo Hino Motors, Ltd. *Hino Motors Sales (Thailand) Ltd.
*Hyogo Daihatsu Hanbai Co., Ltd. etc. *Daihatsu Deutschland GmbH etc.
Financial companies
*Toyota Finance Corporation Dealers overseas
*Toyota Motor Credit Corporation etc.
Customers
Other major companies include Toyota Motor North America, Inc., which deals with
public relations and research activities in North America, Toyota Motor
Manufacturing, North America, Inc., which controls manufacturing companies in
North America, Toyota Motor Europe n.v./s.a., which deals with public relations
activities in Europe, Toyota Motor Engineering & Manufacturing Europe n.v./s.a.,
which controls manufacturing companies in Europe, and Toyota Financial Services
Corporation, which controls the management of financial companies.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
For FY2005 semi-annual, there is no change in our major associated companies.
Management Policy
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Toyota's Basic Management Policy
Toyota Motor Corporation ('TMC') holds up the 'Guiding Principles at Toyota
Motor Corporation' as its basic management policy and believes that efforts to
achieve the goals set forth in the principles will lead to an increase in
shareholder value. The 'Guiding Principles at Toyota Motor Corporation' are as
follows:
(1) Honor the language and spirit of the law of every nation and undertake open
and fair corporate activities to be a good corporate citizen of the world.
(2) Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in the communities.
(3) Dedicate ourselves to providing clean and safe products and to enhancing the
quality of life everywhere through all our activities.
(4) Create and develop advanced technologies and provide outstanding products
and services that fulfill the needs of customers worldwide.
(5) Foster a corporate culture that enhances individual creativity and teamwork
value, while honoring mutual trust and respect between labor and management.
(6) Pursue growth in harmony with the global community through innovative
management.
(7) Work with business partners in research and creation to achieve stable,
long-term growth and mutual benefits, while keeping ourselves open to new
partnerships.
2. Basic Policy on the Distribution of Profits
TMC positions the benefit of its shareholders as one of its priority management
policies and promotes its business aggressively while improving and
strengthening its corporate foundations. We seek to achieve stable and
continuous growth over the long term. Based on this policy, TMC will endeavor
to continue payment of stable dividends over the long term, taking into
consideration its financial performance and dividend payout ratios, etc. We are
responding appropriately to changes in the business environment and acquiring
treasury stock to improve capital efficiency.
In anticipation of continued growth in automotive markets, we will continue to
consider appropriate utilization of our internal funds to develop solid
management foundations that can withstand extreme changes in the business
environment, to invest in the improvement of product performance and the
development of next-generation technologies to achieve future growth, to develop
production and sales networks in Japan and overseas and to expand into new
business segments to further augment our global business.
3. Policy for the Granting of Stock Options and Other Incentive Plans
Currently, TMC maintains an incentive plan for granting stock options to our
directors, managing officers and senior managers, etc. Together with this plan,
TMC also maintains an incentive plan for the executives of its overseas
subsidiaries and affiliated companies.
TMC believes that these incentive plans will heighten their willingness and
motivation to improve business performance in the medium- and long-term, enhance
international competitiveness and profitability, and contribute to increased
shareholder value.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
4. Basic Policy on Corporate Governance and Status of Policy Implementation
TMC has positioned the stable long-term growth of shareholder value as a
top-priority management issue. We believe that in carrying this out, it is
essential that we achieve long-term and stable growth by building positive
relationships with all stakeholders including shareholders and customers as well
as business partners, local communities and employees, and by supplying products
that will satisfy our customers. To this end, we are working to enhance
corporate governance through a variety of measures designed to further increase
our competitiveness as a global company.
Specifically, TMC has introduced a new management system, as approved by the
general shareholders' meeting in June 2003, which features a streamlined board
of directors with a smaller headcount and a new position of managing officers.
Under the new system, senior managing directors not only participate in the
company's overall management as board members but also serve as a link between
management and operations by acting as the top managers of particular
operational divisions (businesses). TMC believes that the adoption of this
system reflecting ideas of front-line operations, which has been one of the
company's strengths, will lead to a quick implementation of the management
decisions into operations, facilitate incorporation of the ideas of front-line
operations in the company's overall business strategies and promote decision
making that is close to front-line operations.
TMC also maintains a corporate auditor system based on the Japanese Commercial
Code, which serves to ensure appropriate management. In order to ensure
transparency in the company's activities, TMC has increased the number of
outside corporate auditors to four out of a total of seven at last year's
general shareholder's meeting. In addition, TMC has established a 'Committee of
Ethics for Corporate Conduct', consisting of directors at the executive vice
president level and above as well as corporate auditors, to review all corporate
activities from the viewpoint of legal compliance and corporate ethics.
Furthermore, TMC holds a meeting of the International Advisory Board twice a
year, which is comprised of experts outside Japan and provides TMC with advice
concerning management strategies in connection with its globalization
initiatives. Further, councils and committees such as 'Labor-Management
Council, Joint Labor-Management Round Table Conference,' 'Corporate Philanthropy
Committee', and 'Stock Option Committee' monitor and deliberate management and
corporate behavior from the viewpoint of various stakeholders.
TMC has also established a Compliance Hotline that allows employees to consult
with an outside attorney concerning corporate ethics and compliance issues, and
has implemented measures such as establishing a dedicated task force that
assists departments in identifying compliance risks. TMC will continue to
promote the 'Guiding Principles at Toyota Motor Corporation' and the 'Code of
Conduct for Toyota Employees' which is a guideline for employees' attitude and
conduct and will work to advance corporate ethics through training and education
at all levels and in all departments. Furthermore, TMC is working towards
reinforcing its internal control framework through establishment of project
teams within the TMC in response to Section 404 of the U.S. Sarbanes-Oxley Act
of 2002, applicable from fiscal year ending March 31, 2006.
To enhance accountability, last year TMC began providing quarterly financial
information to shareholders, investors and other stakeholders as part of its
ongoing disclosure efforts, and last year we adopted accounting principles
generally accepted in the United States of America for the preparation of
consolidated financial statements to enhance the timeliness, transparency, and
accessibility of the company's financial data. TMC also established a
Disclosure Committee in its efforts to further ensure the complete and fair
disclosure of material information in the annual report filed with the SEC, etc.
in light of the Sarbanes-Oxley Act.
TMC is audited by ChuoAoyama PricewaterhouseCoopers, the external auditor,
pursuant to the Commercial Code Special Exemption Law of Japan, Securities
Exchange Law of Japan and the U.S. Securities Exchange Act.
TMC remains committed to the stable enhancement in shareholder value over the
long-term by proposing and implementing these management strategies based on
long-term perspectives.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
5. TMC's Medium- and Long-term Management Strategy
To continue its growth over the long-term, the Toyota Group will make combined
efforts to address the following issues.
An immediate issue is the steady implementation of key domestic and overseas
projects. In Japan, we are promoting product deployment consistent with the
branding of each sales channel and reinforcing our domestic sales structure
including dealers through the creation of the new Netz dealer network and the
introduction of the Lexus brand. Overseas, we are putting our full efforts into
a successful launch of the IMV Project, for manufacturing facilities mainly in
the ASEAN region to supplement each other in the manufacture of key parts for
the production of pickup trucks and multi-purpose vehicles, and the
joint-venture project with Peugeot Citroen Automobiles SA in the Czech Republic.
In the rapidly growing Chinese market, where various auto manufacturers are
quickly expanding their operations, TMC strives to build strong relationships
with its local business partners and to develop a solid foundation for all
aspects of business from development to procurement, production and sales.
Medium- to long-term strategies include, first, reinforcing our development of
environmental technologies and developing and supplying products that anticipate
customer needs. Next, in the pursuit of compatibility between growth and
efficiency, is the maintenance of the world's highest levels of quality, and
reinforcement of cost competitiveness as well as the efficient utilization of
group resources to create a globally balanced business structure. Last, based
on the idea that the source of corporate competitiveness is in the development
of talents, we will continue to promote the development of human resources that
can pass on Toyota's technologies and skills and that share Toyota's values in
manufacturing.
By addressing these issues, we will seek increases in shareholder value and work
to become a company that can successfully compete on a global scale and continue
to grow in the 21st century as well as a global company trusted worldwide that
contributes to the development of a prosperous society.
In addition, we reaffirm our commitment to corporate ethics including strict
compliance with laws and regulations, and will strive to fulfill our corporate
social responsibility in areas including safety, quality, and the environment in
the pursuit, with sincerity and humility, of growth that is in harmony with
society.
BUSINESS RESULTS AND FINANCIAL POSITION
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Summary of Consolidated Financial Results of FY2005 Semi-Annual
(1) Financial Results
During this semi-annual period, although the soaring price of crude oil was
cause for concern, the domestic economy made a substantial recovery as a result
of improvements in corporate profits and employment as well as a moderate
increase in consumer spending. Overseas, economies continue to expand,
particularly in North America, and the Euro zone experienced a modest recovery.
Under these conditions, in FY2005 semi-annual results, a result of the active
introduction of new products that met customer needs and the strong sales
efforts of domestic dealers, although the overall market was smaller than that
of the same period the previous year, domestic vehicle sales increased by 25
thousand units, or 2.3%, to 1,106 thousand units (six months period ended
September 30, 2004) compared with FY2004 semi-annual results and Toyota's market
share excluding mini-vehicles increased by 2.1% to reach 44.6% for the FY2005
semi-annual results compared with FY2004 semi-annual results. Meanwhile,
overseas vehicle sales increased by 372 thousand units, or 17.8%, to 2,461
thousand units in FY2005 semi-annual results compared with FY2004 semi-annual
results, due to increased sales in all regions. Consequently, total vehicle
sales in Japan and overseas increased by 397 thousand units, or 12.5%, to 3,567
thousand units in FY2005 semi-annual results compared with FY2004 semi-annual
results, resulting in a record high of total vehicle sales for TMC in its
semi-annual results for the sixth consecutive periods.
Net revenues increased by 801.4 billion yen, or 9.7%, to 9,025.6 billion yen in
FY2005 semi-annual results compared with FY2004 semi-annual results, and
operating income increased by 98.5 billion yen, or 12.8%, to 866.2 billion yen
in FY2005 semi-annual results compared with FY2004 semi-annual results which
made increases in revenues and operating income for the fifth consecutive
periods. Among the factors contributing to the increase in operating income of
330.0 billion yen, marketing efforts accounted for 260.0 billion yen and cost
reduction efforts for 70.0 billion yen. On the other hand, the factors
affecting to the decrease in operating income mainly included the effects of
changes in exchange rates of 120.0 billion yen and increases in R&D and other
expenses of 111.5 billion yen.
Income before income taxes, minority interest and equity in earnings of
affiliated companies increased by 101.2 billion yen, or 12.5%, to 913.2 billion
yen in FY2005 semi-annual results compared with FY2004 semi-annual results. Net
income increased by 59.6 billion yen, or 11.4%, to 584.0 billion yen in FY2005
semi-annual results compared with FY2004 semi-annual results.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Cash Flows
Cash flows from operating activities resulted in an increase in cash by 1,367.9
billion yen in FY2005 semi-annual period, mainly due to net income of 584.0
billion yen. Net cash provided by operating activities increased by 255.0
billion yen from 1,112.9 billion yen in FY2004 semi-annual results. Cash flows
from investing activities resulted in a decrease in cash by 1,760.2 billion yen
in FY2005 semi-annual results, mainly due to the additions to finance
receivables of 4,358.8 billion yen. Net cash used in investing activities
decreased by 288.1 billion yen from 1,472.1 billion yen in FY2004 semi-annual
results. Cash flows from financing activities resulted in an increase in cash
by 151.5 billion yen in FY2005 semi-annual results, mainly due to the proceeds
from issuance of long-term debt of 921.2 billion yen. Net cash provided by
financing activities increased by 103.2 billion yen compared with FY2004
semi-annual results. After consideration of the effect of exchange rate
changes, cash and cash equivalents decreased by 201.5 billion yen, or 11.7%, to
1,528.2 billion yen at the end of FY2005 semi-annual period compared with the
end of FY2004.
Regarding the consolidated cash flows by segment for FY2005 semi-annual period,
in non-financial services business, net cash provided by operating activities
was 947.7 billion yen, net cash used in investing activities was 1,018.0 billion
yen and net cash used in financing activities was 266.5 billion yen. Meanwhile,
in the financial services business, net cash provided by operating activities
was 348.4 billion yen, net cash used in investing activities was 720.9 billion
yen and net cash provided by financing activities was 468.7 billion yen.
2. Consolidated Financial Results of FY2005 Semi-Annual by Segment
(1) Segment Operating Results
Automotive:
Net revenues for the automotive operations increased by 749.2 billion yen, or
9.9%, to 8,339.6 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results, and operating income increased by 54.2 billion yen, or
7.7%, to 756.8 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results. The increase in operating income was mainly due to
increases in vehicle units sold in all regions, including Japan, North America
and Asia, and cost reduction efforts made by TMC and its subsidiaries, partially
offset by increases in R&D and other expenses.
Financial services:
Net revenues for the financial services operations increased by 12.9 billion
yen, or 3.5%, to 384.4 billion yen in FY2005 semi-annual results compared with
FY2004 semi-annual results, and operating income increased by 41.0 billion yen,
or 66.4%, to 102.7 billion yen in FY2005 semi-annual results compared with
FY2004 semi-annual results. The increase in operating income was primarily due
to solid performance as a result of an increase in financing volumes and in
addition, in FY2005 semi-annual, sales financing subsidiaries in the United
States capitalized certain disbursements, including disbursements made in prior
years, directly related to origination of loans, in accordance with Statement of
Financial Accounting Standards No. 91.
All other:
Net revenues for all other businesses increased by 63.1 billion yen, or 15.7%,
to 466.8 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results, and operating income increased by 6.7 billion yen, or
110.8%, to 12.7 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Geographic Information
Japan:
Net revenues in Japan increased by 283.3 billion yen, or 5.2%, to 5,780.6
billion yen in FY2005 semi-annual results compared with FY2004 semi-annual
results, while operating income decreased by 39.1 billion yen, or 7.4%, to 490.6
billion yen in FY2005 semi-annual-results compared with FY2004 semi-annual
results. The decrease in operating income was mainly due to the impact from
exchange rate changes as well as an increase in R&D expenses and other costs,
partially offset by cost reduction efforts made by TMC and its subsidiaries and
increases in vehicle units sold.
North America:
Net revenues in North America increased by 175.6 billion yen, or 5.8%, to
3,189.7 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results, and operating income increased by 81.1 billion yen, or
49.6%, to 244.7 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results. The increase in operating income was mainly due to
increases in both local production volume and vehicle units sold, as well as
cost reduction efforts made by manufacturing subsidiaries.
Europe:
Net revenues in Europe increased by 169.0 billion yen, or 16.4%, to 1,201.3
billion yen in FY2005 semi-annual results compared with FY2004 semi-annual
results, and operating income increased by 43.8 billion yen, or 194.9%, to 66.3
billion yen in FY2005 semi-annual results compared with FY2004 semi-annual
results. The increase in operating income was mainly due to increases in local
production volumes in Turkey, France and the United Kingdom, as well as
substantial increases in vehicle units sold.
Other Foreign Countries:
Net revenues in other markets increased by 229.5 billion yen, or 20.8%, to
1,332.3 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results, and operating income increased by 17.6 billion yen, or
33.0%, to 70.9 billion yen in FY2005 semi-annual results compared with FY2004
semi-annual results. The increase in operating income was primarily due to
increases in local production volumes as well as vehicle units sold mainly in
Asia.
3. Distribution of Profits for FY2005 Semi-Annual
The FY2005 interim dividend increased by 5 yen to 25 yen per share compared with
the FY2004 interim dividend. Accordingly, the dividend payout ratio for FY2005
semi-annual results is 31.1%.
CONSOLIDATED Production and Sales
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Production
(Units)
FY2005 semi-annual FY2004 semi-annual Increase FY2004
(April 2004 through (April 2003 through (Decrease) (April 2003 through
September 2004) September 2003) March 2004)
Vehicles Japan 2,177,133 2,022,621 154,512 4,283,943
(new) North America 575,418 488,537 86,881 1,034,323
Europe 282,782 230,278 52,504 514,992
Others 433,720 322,649 111,071 680,533
Overseas total 1,291,920 1,041,464 250,456 2,229,848
Total 3,469,053 3,064,085 404,968 6,513,791
Houses (Japan) 2,384 2,274 110 4,564
Note: The total production of vehicles (new) includes 353,004 units of
Daihatsu brand vehicles (including OEM production) in FY2005 semi-annual
results, 307,393 units in FY2004 semi-annual results and 662,818 units in FY2004
results, and 47,631 units of Hino brand vehicles (including OEM production) in
FY2005 semi-annual results, 43,471 units in FY2004 semi-annual results and
87,071 units in FY2004 results.
2. Sales (by destination)
(Units)
FY2005 semi-annual FY2004 semi-annual Increase FY2004
(April 2004 through (April 2003 through (Decrease) (April 2003 through
September 2004) September 2003) March 2004)
Vehicles Japan 1,106,718 1,081,866 24,852 2,303,078
(new) North America 1,125,537 1,005,079 120,458 2,102,681
Europe 476,471 441,122 35,349 898,201
Others 858,355 642,807 215,548 1,415,403
Overseas total 2,460,363 2,089,008 371,355 4,416,285
Total 3,567,081 3,170,874 396,207 6,719,363
Houses (Japan) 2,194 2,169 25 4,752
Note: The total sales of vehicles (new) includes 330,161 units of Daihatsu
brand vehicles in FY2005 semi-annual results, 288,453 units in FY2004
semi-annual results and 623, 016 units in FY2004 results, and 47,171 units of
Hino brand vehicles in FY2005 semi-annual results, 42,201 units in FY2004
semi-annual results and 87,304 units in FY2004 results.
BREAKDOWN OF CONSOLIDATED NET REVENUES
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual Increase
(April 2004 through (April 2003 through (Decrease)
September 2004) September 2003)
Vehicles 7,133,743 6,498,206 635,537
Parts & components for overseas 117,493 113,086 4,407
production
Parts 563,921 496,080 67,841
Others 517,004 476,938 40,066
Total Automotive 8,332,161 7,584,310 747,851
Financial services 374,408 362,460 11,948
Housing 55,200 54,720 480
Telecommunications 21,286 22,875 (1,589)
Others 242,610 199,876 42,734
Total 9,025,665 8,224,241 801,424
Note: The amounts represent net revenues to external customers.
CONSOLIDATED STATEMENTS OF INCOME
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual Increase FY2004
(April 2004 through (April 2003 through (Decrease) (April 2003
through
September 2004) September 2003) March 2004)
Net revenues : 9,025,665 8,224,241 801,424 17,294,760
Sales of products 8,651,257 7,861,781 789,476 16,578,033
Financing operations 374,408 362,460 11,948 716,727
Costs and expenses : 8,159,416 7,456,472 702,944 15,627,870
Cost of products sold 6,961,521 6,274,364 687,157 13,506,337
Cost of financing operations 177,728 191,361 (13,633) 364,177
Selling, general and 1,020,167 990,747 29,420 1,757,356
administrative
Operating income 866,249 767,769 98,480 1,666,890
Other income (expense): 46,966 44,244 2,722 98,903
Interest and dividend income 33,128 28,779 4,349 55,629
Interest expense (7,944) (12,210) 4,266 (20,706)
Foreign exchange gain, net 6,196 26,597 (20,401) 38,187
Other income, net 15,586 1,078 14,508 25,793
Income before income taxes, 913,215 812,013 101,202 1,765,793
minority interest and equity in
earnings of affiliated companies
Provision for income taxes 361,338 309,931 51,407 681,304
Income before minority interest 551,877 502,082 49,795 1,084,489
and equity in earnings of
affiliated companies
Minority interest in consolidated (26,652) (18,615) (8,037) (42,686)
subsidiaries
Equity in earnings of affiliated 58,813 40,993 17,820 120,295
companies
Net income 584,038 524,460 59,578 1,162,098
(Yen)
Net income per share - basic 176.32 153.36 22.96 342.90
Net income per share - diluted 176.28 153.35 22.93 342.86
CONSOLIDATED BALANCE SHEETS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 Increase FY2004
(As of September 30, (As of March 31, (Decrease) semi-annual
2004) 2004) (As of September
30, 2003)
Assets
Current assets : 9,137,709 8,848,453 289,256 8,104,583
Cash and cash equivalents 1,528,243 1,729,776 (201,533) 1,243,211
Time deposits 68,375 68,473 (98) 43,086
Marketable securities 679,172 448,457 230,715 787,715
Trade accounts and notes 1,401,820 1,531,651 (129,831) 1,290,688
receivable, less allowance for
doubtful accounts
Finance receivables, net 2,835,006 2,622,939 212,067 2,242,227
Other receivables 455,747 396,788 58,959 471,139
Inventories 1,191,041 1,083,326 107,715 1,059,824
Deferred income taxes 464,369 457,161 7,208 400,218
Prepaid expenses and other 513,936 509,882 4,054 566,475
current assets
Noncurrent finance receivables, 3,830,554 3,228,973 601,581 3,026,614
net
Investments and other assets : 4,746,120 4,608,155 137,965 4,245,363
Marketable securities and 2,424,590 2,241,971 182,619 2,269,829
other securities investments
Affiliated companies 1,430,730 1,370,171 60,559 1,245,596
Employees receivables 43,698 35,857 7,841 26,023
Other 847,102 960,156 (113,054) 703,915
Property, plant and equipment : 5,595,811 5,354,647 241,164 5,400,560
Land 1,170,975 1,135,665 35,310 1,134,538
Buildings 2,863,953 2,801,993 61,960 2,775,775
Machinery and equipment 7,866,194 7,693,616 172,578 7,652,074
Vehicles and equipment on 1,664,343 1,493,780 170,563 1,556,037
operating leases
Construction in progress 260,804 237,195 23,609 195,355
Less - Accumulated (8,230,458) (8,007,602) (222,856) (7,913,219)
depreciation
Total assets 23,310,194 22,040,228 1,269,966 20,777,120
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 Increase FY2004 semi-annual
(As of September (As of March 31, (Decrease) (As of September
30, 2004) 2004) 30, 2003)
Liabilities
Current liabilities : 7,841,687 7,597,991 243,696 7,073,865
Short-term borrowings 2,285,994 2,189,024 96,970 1,999,453
Current portion of 1,157,635 1,125,195 32,440 1,135,297
long-term debt
Accounts payable 1,648,873 1,709,344 (60,471) 1,563,774
Other payables 697,566 665,624 31,942 633,646
Accrued expenses 1,208,947 1,133,281 75,666 1,054,127
Income taxes payable 271,250 252,555 18,695 267,244
Other current liabilities 571,422 522,968 48,454 420,324
Long-term liabilities : 6,454,099 5,817,377 636,722 5,703,248
Long-term debt 4,807,512 4,247,266 560,246 4,108,804
Accrued pension and 714,795 725,569 (10,774) 1,112,900
severance costs
Deferred income taxes 822,567 778,561 44,006 413,455
Other long-term 109,225 65,981 43,244 68,089
liabilities
Total liabilities 14,295,786 13,415,368 880,418 12,777,113
Minority interest in 472,332 446,293 26,039 427,533
consolidated subsidiaries
Shareholders' equity :
Common stock 397,050 397,050 - 397,050
Additional paid-in capital 494,431 495,179 (748) 493,790
Retained earnings 8,827,003 8,326,215 500,788 7,756,473
Accumulated other (134,377) (204,592) 70,215 (476,553)
comprehensive loss
Treasury stock, at cost (1,042,031) (835,285) (206,746) (598,286)
Total shareholders' equity 8,542,076 8,178,567 363,509 7,572,474
Total liabilities and 23,310,194 22,040,228 1,269,966 20,777,120
shareholders' equity
CONSOLIDATED STATEMENTS OF
SHAREHOLDERS' EQUITY
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(1) FY2005 semi-annual results (April 2004 through September 2004)
(Amounts are rounded to the nearest million yen)
Common Additional Retained Accumulated Treasury Total
stock paid-in earnings other stock,
capital comprehensive at cost
income (loss)
Balances at March 31, 2004 397,050 495,179 8,326,215 (204,592) (835,285) 8,178,567
Issuance during the period (748) (748)
Comprehensive income:
Net income 584,038 584,038
Other comprehensive income
(loss)
Foreign currency 119,499 119,499
translation adjustments
Unrealized losses on (55,051) (55,051)
securities, net of reclassification
adjustments
Minimum pension liability 5,767 5,767
adjustments
Total comprehensive income 654,253
Dividends paid (83,250) (83,250)
Purchase and reissuance of common (206,746) (206,746)
stock
Balances at September 30, 2004 397,050 494,431 8,827,003 (134,377) (1,042,031) 8,542,076
(2) FY2004 semi-annual results (April 2003 through September 2003)
(Amounts are rounded to the nearest million yen)
Common Additional Retained Accumulated Treasury Total
stock paid-in earnings other stock,
capital comprehensive at cost
income (loss)
Balances at March 31, 2003 397,050 493,790 7,301,795 (604,272) (467,363) 7,121,000
Issuance during the period -
Comprehensive income:
Net income 524,460 524,460
Other comprehensive income
(loss)
Foreign currency (112,479) (112,479)
translation adjustments
Unrealized gains on 228,270 228,270
securities, net of reclassification
adjustments
Minimum pension liability 11,928 11,928
adjustments
Total comprehensive income 652,179
Dividends paid (69,782) (69,782)
Purchase and reissuance of common (130,923) (130,923)
stock
Balances at September 30, 2003 397,050 493,790 7,756,473 (476,553) (598,286) 7,572,474
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual FY2004
(April 2004 through (April 2003 through (April 2003 through
September 2004) September 2003) March 2004)
Cash flows from operating activities :
Net income 584,038 524,460 1,162,098
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 485,311 475,938 969,904
Provision for doubtful accounts and 31,966 38,418 83,138
credit losses
Pension and severance costs, less 3,085 33,957 (159,267)
payments
Loss on disposal of fixed assets 18,914 18,896 39,742
Unrealized losses on available-for-sale 1,997 2,697 3,063
securities, net
Deferred income taxes 49,858 21,996 120,828
Minority interest in consolidated 26,652 18,615 42,686
subsidiaries
Equity in earnings of affiliated (58,813) (40,993) (120,295)
companies
Changes in operating assets and 224,965 18,940 141,126
liabilities and other
Net cash provided by operating activities 1,367,973 1,112,924 2,283,023
Cash flows from investing activities :
Additions to finance receivables (4,358,871) (4,182,349) (8,126,880)
Collection of and proceeds from sales of 3,837,570 3,727,776 6,878,953
finance receivables
Additions to fixed assets excluding (538,886) (445,522) (945,803)
equipment leased to others
Additions to equipment leased to others (361,708) (298,454) (542,738)
Proceeds from sales of fixed assets 29,152 31,234 73,925
excluding equipment leased to others
Proceeds from sales of equipment leased to 152,433 133,073 288,681
others
Purchases of marketable securities and (747,373) (1,137,863) (1,336,467)
security investments
Proceeds from sales of and maturity of 226,907 705,614 1,436,142
marketable securities and security investments
Payment for additional investments in (683) (18,876) (20,656)
affiliated companies, net of cash acquired
Changes in investments and other assets and 1,168 13,263 (17,941)
other
Net cash used in investing activities (1,760,291) (1,472,104) (2,312,784)
Cash flows from financing activities :
Purchase of common stock (206,917) (120,229) (357,457)
Proceeds from issuance of long-term debt 921,299 700,149 1,636,570
Payments of long-term debt (538,467) (622,709) (1,253,045)
Increase in short-term borrowings 58,904 160,970 353,833
Dividends paid (83,250) (69,782) (137,678)
Net cash provided by financing activities 151,569 48,399 242,223
Effect of exchange rate changes on cash and cash 39,216 (38,036) (74,714)
equivalents
Net decrease in cash and cash equivalents (201,533) (348,817) 137,748
Cash and cash equivalents at beginning of period 1,729,776 1,592,028 1,592,028
Cash and cash equivalents at end of period 1,528,243 1,243,211 1,729,776
Note: In the Consolidated Statements of Cash Flows, cash and cash equivalents
include cash on hand, bank deposits that can be withdrawn at any time and
short-term investments that can be converted into cash at any time and carry
minimal risk of change in value.
segment information
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
1. Segment Operating Results
(1) FY2005 semi-annual results (April 2004 through September 2004)
(Amounts are rounded to the nearest million yen)
Automotive Financial All Other Intersegment Consolidated
Services Elimination and/or
Unallocated Amount
Net revenues :
(1) Sales to external 8,332,161 374,408 319,096 - 9,025,665
customers
(2) Intersegment sales 7,477 9,958 147,795 (165,230) -
and transfers
Total 8,339,638 384,366 466,891 (165,230) 9,025,665
Operating expenses 7,582,799 281,699 454,143 (159,225) 8,159,416
Operating income 756,839 102,667 12,748 (6,005) 866,249
Depreciation expenses 378,416 96,252 10,643 - 485,311
Capital expenditure 543,568 295,427 21,357 40,242 900,594
(2) FY2004 semi-annual results (April 2003 through September 2003)
(Amounts are rounded to the nearest million yen)
Automotive Financial All Other Intersegment Consolidated
Services Elimination and/or
Unallocated Amount
Net revenues :
(1) Sales to external 7,584,310 362,460 277,471 - 8,224,241
customers
(2) Intersegment sales 6,126 9,000 126,208 (141,334) -
and transfers
Total 7,590,436 371,460 403,679 (141,334) 8,224,241
Operating expenses 6,887,802 309,779 397,632 (138,741) 7,456,472
Operating income 702,634 61,681 6,047 (2,593) 767,769
Depreciation expenses 368,242 97,493 10,203 - 475,938
Capital expenditure 459,390 238,155 20,371 26,060 743,976
2. Consolidated Financial Statements as Classified into Non-Financial Services
Business and Financial Services Business
(1) Consolidated Statements of Income as Classified into Non-Financial Services
Business and Financial Services Business
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual Increase
(April 2004 through (April 2003 through (Decrease)
September 2004) September 2003)
(Non-financial services)
Net revenues 8,655,852 7,867,021 788,831
Costs and expenses : 7,883,784 7,156,401 727,383
Cost of revenues 6,958,489 6,275,627 682,862
Selling, general and administrative 925,295 880,774 44,521
Operating income 772,068 710,620 61,448
Other income, net 40,854 44,272 (3,418)
Income before income taxes, 812,922 754,892 58,030
minority interest and equity in earnings of
affiliated companies
Provision for income taxes 319,354 285,959 33,395
Income before minority interest and equity in 493,568 468,933 24,635
earnings of affiliated companies
Minority interest in consolidated subsidiaries (26,413) (18,150) (8,263)
Equity in earnings of affiliated companies 50,762 37,413 13,349
Net income 517,917 488,196 29,721
(Financial services)
Net revenues 384,366 371,460 12,906
Costs and expenses : 281,699 309,779 (28,080)
Cost of revenues 182,535 192,157 (9,622)
Selling, general and administrative 99,164 117,622 (18,458)
Operating income 102,667 61,681 40,986
Other expense, net (2,395) (4,689) 2,294
Income before income taxes, 100,272 56,992 43,280
minority interest and equity in earnings of
affiliated companies
Provision for income taxes 41,976 23,840 18,136
Income before minority interest and equity in 58,296 33,152 25,144
earnings of affiliated companies
Minority interest in consolidated subsidiaries (239) (465) 226
Equity in earnings of affiliated companies 8,051 3,580 4,471
Net income 66,108 36,267 29,841
(Elimination)
Elimination of net income 13 (3) 16
(Consolidated)
Net income 584,038 524,460 59,578
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(2) Consolidated Balance Sheets as Classified into Non-Financial Services
Business and Financial Services Business
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 Increase
(As of September 30, (As of March 31, (Decrease)
2004) 2004)
Assets
(Non-financial services)
Current assets : 6,216,920 6,125,239 91,681
Cash and cash equivalents 1,314,036 1,618,876 (304,840)
Time deposits 13,511 16,689 (3,178)
Marketable securities 678,372 444,543 233,829
Trade accounts and notes receivable, less 1,427,122 1,570,205 (143,083)
allowance for doubtful accounts
Inventories 1,191,041 1,083,326 107,715
Prepaid expenses and other current assets 1,592,838 1,391,600 201,238
Investments and other assets 4,477,055 4,254,625 222,430
Property, plant and equipment 4,522,952 4,398,163 124,789
Total 15,216,927 14,778,027 438,900
(Financial services)
Current assets : 3,689,362 3,379,957 309,405
Cash and cash equivalents 214,207 110,900 103,307
Time deposits 54,864 51,784 3,080
Marketable securities 800 3,914 (3,114)
Finance receivables, net 2,835,006 2,608,340 226,666
Prepaid expenses and other current assets 584,485 605,019 (20,534)
Noncurrent finance receivables, net 3,830,554 3,221,013 609,541
Investments and other assets 467,465 580,843 (113,378)
Property, plant and equipment 1,072,859 956,484 116,375
Total 9,060,240 8,138,297 921,943
(Elimination)
Elimination of assets (966,973) (876,096) (90,877)
(Consolidated)
Total assets 23,310,194 22,040,228 1,269,966
Note: Assets in the non-financial services include unallocated corporate
assets.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 Increase
(As of September 30, (As of March 31, (Decrease)
2004) 2004)
Liabilities
(Non-financial services)
Current liabilities : 4,924,971 4,774,129 150,842
Short-term borrowings 758,411 718,396 40,015
Current portion of long-term debt 66,061 62,634 3,427
Accounts payable 1,628,552 1,695,255 (66,703)
Accrued expenses 1,151,471 1,084,357 67,114
Income taxes payable 255,131 241,691 13,440
Other current liabilities 1,065,345 971,796 93,549
Long-term liabilities : 2,083,149 2,096,318 (13,169)
Long-term debt 764,403 771,791 (7,388)
Accrued pension and severance costs 713,352 724,369 (11,017)
Other long-term liabilities 605,394 600,158 5,236
Total 7,008,120 6,870,447 137,673
(Financial services)
Current liabilities : 3,631,366 3,457,028 174,338
Short-term borrowings 2,152,069 2,029,258 122,811
Current portion of long-term debt 1,094,264 1,088,762 5,502
Accounts payable 20,596 15,287 5,309
Accrued expenses 62,186 53,031 9,155
Income taxes payable 16,119 10,864 5,255
Other current liabilities 286,132 259,826 26,306
Long-term liabilities : 4,632,745 3,971,941 660,804
Long-term debt 4,304,904 3,726,355 578,549
Accrued pension and severance costs 1,443 1,200 243
Other long-term liabilities 326,398 244,386 82,012
Total 8,264,111 7,428,969 835,142
(Elimination)
Elimination of liabilities (976,445) (884,048) (92,397)
(Consolidated)
Total liabilities 14,295,786 13,415,368 880,418
(Consolidated)
Minority interest in consolidated 472,332 446,293 26,039
subsidiaries
Shareholders' equity
(Consolidated)
Common stock 397,050 397,050 -
Additional paid-in capital 494,431 495,179 (748)
Retained earnings 8,827,003 8,326,215 500,788
Accumulated other comprehensive loss (134,377) (204,592) 70,215
Treasury stock, at cost (1,042,031) (835,285) (206,746)
Total shareholders' equity 8,542,076 8,178,567 363,509
(Consolidated)
Total liabilities and shareholders' equity 23,310,194 22,040,228 1,269,966
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(3) Consolidated Statements of Cash Flows as Classified into Non-Financial
Services Business and Financial Services Business
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual
(April 2004 through (April 2003 through
September 2004) September 2003)
(Non-financial services)
Cash flows from operating activities :
Net income 517,917 488,196
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 389,059 378,445
Pension and severance costs, less payments 2,857 34,000
Loss on disposal of fixed assets 18,540 18,423
Unrealized losses on available-for-sale securities, net 1,997 2,697
Deferred income taxes 19,492 6,831
Minority interest in consolidated subsidiaries 26,413 18,150
Equity in earnings of affiliated companies (50,762) (37,413)
Changes in operating assets and liabilities and other 22,187 (44,461)
Net cash provided by operating activities 947,700 864,868
Cash flows from investing activities :
Additions to fixed assets excluding equipment leased to others (531,073) (433,924)
Additions to equipment leased to others (74,094) (71,897)
Proceeds from sales of fixed assets excluding equipment leased 26,037 25,888
to others
Proceeds from sales of equipment leased to others 38,576 24,840
Purchases of marketable securities and security investments (686,319) (968,766)
Proceeds from sales of and maturity of marketable securities 166,815 582,102
and security investments
Payment for additional investments in affiliated companies, (683) (18,876)
net of cash acquired
Changes in investments and other assets and other 42,691 (3,170)
Net cash used in investing activities (1,018,050) (863,803)
Cash flows from financing activities :
Purchase of common stock (206,917) (120,229)
Proceeds from issuance of long-term debt 13,463 32,088
Payments of long-term debt (28,653) (111,290)
Increase (decrease) in short-term borrowings 45,804 (4,387)
Dividends paid (83,250) (69,782)
Other (7,000) (15,000)
Net cash used in financing activities (266,553) (288,600)
Effect of exchange rate changes on cash and cash equivalents 32,063 (30,774)
Net decrease in cash and cash equivalents (304,840) (318,309)
Cash and cash equivalents at beginning of period 1,618,876 1,437,731
Cash and cash equivalents at end of period 1,314,036 1,119,422
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
(Amounts are rounded to the nearest million yen)
FY2005 semi-annual FY2004 semi-annual
(April 2004 through (April 2003 through
September 2004) September 2003)
(Financial services)
Cash flows from operating activities :
Net income 66,108 36,267
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation 96,252 97,493
Deferred income taxes 30,358 15,033
Minority interest in consolidated subsidiaries 239 465
Equity in earnings of affiliated companies (8,051) (3,580)
Changes in operating assets and liabilities and other 163,504 524
Net cash provided by operating activities 348,410 146,202
Cash flows from investing activities :
Additions to finance receivables (4,358,871) (4,182,349)
Collection of and proceeds from sales of finance receivables 3,837,570 3,727,776
Additions to fixed assets excluding equipment leased to others (7,813) (11,598)
Additions to equipment leased to others (287,614) (226,557)
Proceeds from sales of fixed assets excluding equipment leased 3,115 5,346
to others
Proceeds from sales of equipment leased to others 113,857 108,233
Purchases of marketable securities and security investments (61,054) (169,097)
Proceeds from sales of and maturity of marketable securities 60,092 123,512
and security investments
Changes in investments and other assets and other (20,247) (19,281)
Net cash used in investing activities (720,965) (644,015)
Cash flows from financing activities :
Proceeds from issuance of long-term debt 928,861 706,040
Payments of long-term debt (543,592) (546,392)
Increase in short-term borrowings 76,440 299,919
Other 7,000 15,000
Net cash provided by financing activities 468,709 474,567
Effect of exchange rate changes on cash and cash equivalents 7,153 (7,262)
Net increase (decrease) in cash and cash equivalents 103,307 (30,508)
Cash and cash equivalents at beginning of period 110,900 154,297
Cash and cash equivalents at end of period 214,207 123,789
(Consolidated)
Effect of exchange rate changes on cash and cash equivalents 39,216 (38,036)
Net decrease in cash and cash equivalents (201,533) (348,817)
Cash and cash equivalents at beginning of period 1,729,776 1,592,028
Cash and cash equivalents at end of period 1,528,243 1,243,211
Note: In the Consolidated Statements of Cash Flows, cash and cash equivalents
include cash on hand, bank deposits that can be withdrawn at any time and
short-term investments that can be converted into cash at any time and carry
minimal risk of change in value.
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
3. Geographic Information
(1) FY2005 semi-annual results (April 2004 through September 2004)
(Amounts are rounded to the nearest million yen)
Japan North America Europe Other Foreign Intersegment Consolidated
Countries Elimination
Net revenues :
(1) Sales to external 3,540,760 3,102,246 1,129,304 1,253,355 - 9,025,665
customers
(2) Intersegment sales 2,239,791 87,520 71,993 78,951 (2,478,255) -
and transfers
Total 5,780,551 3,189,766 1,201,297 1,332,306 (2,478,255) 9,025,665
Operating expenses 5,289,985 2,944,990 1,135,027 1,261,412 (2,471,998) 8,159,416
Operating income 490,566 244,776 66,270 70,894 (6,257) 866,249
(2) FY2004 semi-annual results (April 2003 through September 2003)
(Amounts are rounded to the nearest million yen)
Japan North America Europe Other Foreign Intersegment Consolidated
Countries Elimination
Net revenues :
(1) Sales to external 3,325,570 2,896,155 977,630 1,024,886 - 8,224,241
customers
(2) Intersegment sales 2,171,720 117,912 54,645 77,931 (2,422,208) -
and transfers
Total 5,497,290 3,014,067 1,032,275 1,102,817 (2,422,208) 8,224,241
Operating expenses 4,967,548 2,850,451 1,009,801 1,049,524 (2,420,852) 7,456,472
Operating income 529,742 163,616 22,474 53,293 (1,356) 767,769
(All financial information has been prepared in accordance with accounting
principles generally accepted in the United States of America)
4. Overseas Sales
(1) FY2005 semi-annual results (April 2004 through September 2004)
(Amounts are rounded to the nearest million yen)
North America Europe Other Total
Overseas sales 3,194,425 1,139,092 1,865,702 6,199,219
Consolidated sales - - - 9,025,665
Ratio of overseas % % % %
sales to consolidated
sales 35.4 12.6 20.7 68.7
(2) FY2004 semi-annual results (April 2003 through September 2003)
(Amounts are rounded to the nearest million yen)
North America Europe Other Total
Overseas sales 3,013,321 944,563 1,601,666 5,559,550
Consolidated sales - - - 8,224,241
Ratio of overseas % % % %
sales to consolidated
sales 36.6 11.5 19.5 67.6
UNCONSOLIDATED STATEMENTS OF INCOME
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted.)
FY2005 semi-annual FY2004 semi-annual Increase FY2004
(April 2004 (April 2003 (Decrease) (April 2003
through through through
September 2004) September 2003) March 2004)
Net sales 4,459,736 4,302,173 157,563 8,963,712
Cost of sales 3,570,278 3,393,804 176,474 7,186,182
Selling, general and administrative 497,062 449,185 47,877 943,738
expenses
Operating income 392,395 459,184 (66,789) 833,791
Non-operating income 132,913 106,079 26,834 180,108
Interest income 7,677 10,053 (2,376) 16,492
Dividend income 67,633 44,009 23,624 57,867
Others 57,602 52,016 5,586 105,748
Non-operating expenses 82,927 54,674 28,253 98,170
Interest expenses 5,345 5,514 (169) 10,847
Others 77,582 49,160 28,422 87,323
Ordinary income 442,382 510,589 (68,207) 915,728
Extraordinary losses 24,996 - 24,996 23,231
Losses on return of - - - 23,231
substitutional portion of employee pension
fund
Impairment losses 24,996 - 24,996 -
Income before income taxes 417,385 510,589 (93,204) 892,496
Income taxes - current 159,100 174,700 (15,600) 300,300
Income taxes - deferred (5,454) (2,163) (3,291) 10,726
Net income 263,740 338,052 (74,312) 581,470
Unappropriated retained earnings 497,867 470,341 27,526 470,341
brought forward
Loss on sales of treasury stock 114 - 114 -
Interim cash dividends - - - 67,984
Unappropriated retained earnings 761,493 808,393 (46,900) 983,826
at end of period
Note: Accounting Standard on Impairment of Fixed Assets were adopted starting
first half of this fiscal year. As a result of this change, impairment
losses of 24,996 million yen regarding certain leased real estate were reported
as extraordinary losses.
UNCONSOLIDATED BALANCE SHEETS
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted.)
FY2005 FY2004 Increase FY2004
semi-annual (As of semi-annual
(As of March 31, 2004) (Decrease) (As of
September 30, September 30,
2004) 2003)
Assets
Current assets 3,237,132 3,358,189 (121,057) 3,270,863
Cash and deposits 119,776 87,052 32,724 95,407
Trade accounts receivable 892,524 1,037,717 (145,193) 869,956
Marketable securities 898,441 995,893 (97,452) 1,053,485
Finished goods 141,986 113,465 28,521 104,723
Raw materials 13,833 13,615 218 12,188
Work in process 68,052 70,877 (2,825) 69,697
Supplies 8,223 7,639 584 7,649
Short-term loans 463,079 354,616 108,463 375,560
Deferred income taxes 245,783 244,726 1,057 237,439
Others 388,331 437,584 (49,253) 450,555
Less: allowance for doubtful (2,900) (5,000) 2,100 (5,800)
accounts
Fixed assets 5,433,623 5,458,975 (25,352) 5,395,347
Property, plant and equipment 1,216,696 1,260,728 (44,032) 1,250,797
Buildings 356,694 360,374 (3,680) 351,515
Structures 39,907 40,770 (863) 40,365
Machinery and equipment 310,931 323,619 (12,688) 321,015
Vehicle and delivery equipment 10,124 10,973 (849) 10,433
Tools, furniture and fixtures 73,963 84,473 (10,510) 77,400
Land 389,753 394,616 (4,863) 394,803
Construction in progress 35,320 45,899 (10,579) 55,263
Investments and other assets 4,216,927 4,198,247 18,680 4,144,549
Investments in securities 1,621,856 1,601,002 20,854 1,594,102
Investments in subsidiaries 1,907,560 1,926,603 (19,043) 1,897,792
and affiliates
Long-term loans 399,060 388,914 10,146 368,424
Deferred income taxes 167,390 135,922 31,468 204,532
Others 155,059 166,404 (11,345) 93,497
Less: allowance for doubtful (34,000) (20,600) (13,400) (13,800)
accounts
Total assets 8,670,755 8,817,164 (146,409) 8,666,210
(All financial information has been prepared in accordance with accounting
principles generally accepted in Japan)
(Million yen; amounts less than one million yen are omitted.)
FY2005 FY2004 Increase FY2004
semi-annual (As of (Decrease) semi-annual
(As of March 31, 2004) (As of
September 30, September 30,
2004) 2003)
Liabilities
Current liabilities 1,903,035 1,970,407 (67,372) 1,856,276
Trade notes payable 973 932 41 1,024
Trade accounts payable 800,183 837,241 (37,058) 755,094
Current portion of bonds 600 - 600 -
Other payables 340,002 378,831 (38,829) 308,885
Income taxes payable 161,035 127,807 33,228 171,463
Accrued expenses 413,675 409,709 3,966 375,777
Deposits received 157,856 197,750 (39,894) 194,330
Allowance for EXPO 2005 Aichi 3,816 2,548 1,268 1,548
Others 24,891 15,585 9,306 48,153
Long-term liabilities 850,871 862,081 (11,210) 836,358
Bonds 500,000 500,600 (600) 500,600
Allowance for retirement 290,706 292,493 (1,787) 293,269
benefits
Others 60,165 68,988 (8,823) 42,489
Total liabilities 2,753,906 2,832,489 (78,583) 2,692,635
Shareholders' equity
Common stock 397,049 397,049 - 397,049
Capital surplus 416,970 416,970 - 416,970
Capital reserve 416,970 416,970 - 416,970
Retained earnings 5,911,059 5,731,342 179,717 5,555,909
Legal reserve 99,454 99,454 - 99,454
Reserve for losses on overseas 252 254 (2) 254
investments
Reserve for special 2,457 1,498 959 1,498
depreciation
Reserve for reduction of 6,475 5,382 1,093 5,382
acquisition cost of fixed assets
General reserve 5,040,926 4,640,926 400,000 4,640,926
Unappropriated retained 761,493 983,826 (222,333) 808,393
earnings at end of period
Net unrealized gains on other 264,984 305,725 (40,741) 232,829
securities
Less: treasury stock (1,073,216) (866,413) (206,803) (629,185)
Total shareholders' equity 5,916,848 5,984,675 (67,827) 5,973,575
Total liabilities and shareholders' 8,670,755 8,817,164 (146,409) 8,666,210
equity
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