Securities Report FY2003 1/3

Toyota Motor Corporation
27 June 2003

                        Report of Independent Accountant
                             (English translation)

                                                                   June 26, 2003

To the Board of Directors


Toyota Motor Corporation
        ChuoAoyama Audit Corporation
             Engagement      C.P.A.  /s/
             Partner

             Engagement      C.P.A.  /s/
             Partner

             Engagement      C.P.A.  /s/
             Partner

             Engagement      C.P.A.  /s/
             Partner


We have audited the accompanying consolidated balance sheet of Toyota Motor
Corporation (the 'Company') and its consolidated subsidiaries as of March 31,
2003, and the related consolidated statement of income, shareholders' equity, of
cash flows and supplementary schedules for the year then ended, to be in
compliance with the Article 193, paragraph 2 of the Security stock Exchange Law.
  These financial statements are the responsibility of the Company's management;
our responsibility is to express an opinion on these financial statements based
on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in Japan, which require that we perform the audit to obtain reasonable assurance
about whether the financial statements are free to material misstatement.  An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation.  We believe that our audit provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly the consolidated financial position of Toyota Motor Corporation and its
consolidated subsidiaries as of March 31, 2003, and the consolidated results of
their operations and their cash flows for the year then ended in conformity with
accounting principles generally accepted in Japan.


We have no interest in or relationship with the Company which is required to be
disclosed pursuant to the provisions of the Certified Public Accountant Law of
Japan.



5.  The Context of Accounting

 1  Principle for the consolidated financial statements and the financial
statements

(1) Toyota Motor Corporation ('TMC') prepares its consolidated financial
statements in accordance with the 'Regulations Concerning the Terminology, Forms
and Preparation Methods of Consolidated Financial Statements'(1976 - the
ministerial ordinance of Ministry of Finance No. 28, 'Regulations Concerning the
Consolidated Financial Statements').

The consolidated financial statements as of and for the year ended March 31,
2002, have been prepared in accordance with the Regulations Concerning the
Consolidated Financial Statements before amendment, and the consolidated
financial statements as of and for the year ended March 31, 2003, have been
prepared in accordance with the Regulations Concerning the Consolidated
Financial Statements after amendment.



(2) TMC prepares its unconsolidated financial statements in accordance with the
'Regulations Concerning the Terminology, Forms and Preparation Methods of
Financial Statements'(1963 - the ministerial ordinance of Ministry of Finance
No. 59, 'Regulations Concerning the Financial Statements').

The unconsolidated financial statements as of and for the year ended March 31,
2002, have been prepared in accordance with the Regulations Concerning the
Financial Statements before amendment, and the unconsolidated financial
statements as of and for the year ended March 31, 2003, have been prepared in
accordance with the Regulations Concerning the Financial Statements after
amendment.



 2  Audit Certification

In compliance with Article 193, paragraph 2 of the Securities and Exchange Law,
the accompanying consolidated and unconsolidated financial statements as of and
for the year ended March 31, 2003 and 2002, respectively, have been audited by
ChuoAoyama Audit Corporation in Japan.


1. Consolidated Financial Statements and Other Information

(1) Consolidated Financial Statements

(a) Consolidated Balance Sheets


                                                  FY 2002, March 31, 2002             FY 2003, March 31, 2003
             Item              Notes          Yen in millions     Percentage      Yen in millions     Percentage
(Assets)
1 Current assets
     1. Cash and deposits                             707,233                             620,870
     2. Trade notes and                             1,561,623                           1,583,393
     accounts receivable
     3. Marketable securities                       1,605,460                           1,661,978
     4. Inventories                                 1,022,718                           1,072,947
     5. Installment credits                         3,334,357                           3,430,444
     from dealers
     6. Short-term loans       *6                   1,192,054                           1,558,161
     7. Deferred income taxes                         379,668                             413,039
     8. Other current assets                          718,693                             826,442
     9. Less: allowance for                         (110,843)                           (147,670)
     doubtful accounts
          Total current assets                     10,410,966        52.3              11,019,607        53.1

2 Fixed assets
(1) Property, plant and        *1
equipment
     1. Buildings and                               1,230,871                           1,253,674
     structures
     2. Machinery and                               1,179,305                           1,163,778
     equipment
     3. Vehicles and delivery  *2                   1,269,275                           1,238,252
     equipment
     4. Land                                        1,070,869                           1,097,189
     5. Construction in                               270,497                             232,966
     progress
     6. Other property, plant                         416,958                             521,123
     and equipment
           Total property,                          5,437,777        27.4               5,506,985        26.6
           plant and equipment
(2) Intangible fixed assets
     Software                                           4,328                               5,123
           Total intangible                             4,328         0.0                   5,123         0.0
           fixed assets
(3) Investments and other
assets
     1. Investments in         *3                   2,642,122                           2,695,939
     securities
     2. Long-term loans                               796,349                             757,922
     receivable
     3. Deferred income taxes                         465,193                             446,123
     4. Other investments and                         159,450                             335,618
     other assets
     5. Less: allowance for                          (27,251)                            (24,934)
     doubtful accounts
           Total investments                        4,035,865        20.3               4,210,669        20.3
           and other assets
           Total fixed assets                       9,477,970        47.7               9,722,778        46.9

Total assets                                       19,888,937       100.0              20,742,386       100.0




                                                       FY 2002, March 31, 2002             FY 2003, March 31, 2003
Item                          Notes            Yen in millions         Percentage  Yen in millions         Percentage
(Liabilities)
1 Current liabilities
    1. Trade notes and                              1,483,170                           1,582,245
    accounts payable
    2. Current portion of                           1,020,930                           1,124,035
    bonds
    3. Short-term borrowings                        1,104,365                             966,243
    4. Commercial papers                                    -                           1,080,613
    5. Accrued expenses and                         1,203,969                           1,356,294
    other accounts payables
    6. Income taxes payable                           339,304                             317,194
    7. Deferred income taxes                            1,769                               1,570
    8. Allowance for product                          229,246                             244,552
    warranties
    9. Allowance for employee                          35,838                              36,026
    bonus
    10. Other current                               1,764,476                             848,764
    liabilities
    Total current liabilities                       7,183,071        36.1               7,557,541        36.4

2 Long-term liabilities
    1. Bonds                                        3,132,372                           3,520,344
    2. Convertible bonds                               13,308                                   -
    3. Long-term borrowings                           481,007                             573,767
    4. Deferred income taxes                          398,273                             410,330
    5. Allowance for                                  769,714                             639,708
    retirement benefits
    6. Other long-term                                121,897                              84,218
    liabilities
           Total long-term                          4,916,572        24.8               5,228,369        25.2
           liabilities

Total liabilities                                  12,099,644        60.9              12,785,911        61.6

(Minority interest in
consolidated subsidiaries)
           Minority interest                          464,220         2.3                 496,207         2.4
           in consolidated
           subsidiaries

(Shareholders' equity)
1 Common stock                                        397,049         2.0                       -           -
2 Capital reserve                                     415,150         2.1                       -           -
3 Consolidated earned surplus                       6,527,956        32.8                       -           -
4 Unrealized gain on other                            152,809         0.8                       -           -
securities, net
5 Translation adjustments                              22,855         0.1                       -           -
                                                    7,515,821        37.8                       -           -
6 Less: treasury stock                              (157,766)        -0.8                       -           -
7 Less: Treasury stock held                          (32,983)        -0.2                       -           -
by consolidated subsidiaries
           Total                                    7,325,072        36.8                       -           -
           shareholders'
           equity

1 Common stock                *4                            -           -                 397,049         1.9
2 Capital surplus                                           -           -                 418,401         2.0
3 Retained earnings                                         -           -               7,219,896        34.8
4 Unrealized gain on other                                  -           -                  78,630         0.4
securities, net
5 Translation adjustments                                   -           -               (112,350)        -0.5
6 Less: treasury stock        *5                            -           -               (541,360)        -2.6
           Total                                            -                           7,460,267        36.0
           shareholders'
           equity
           Total liabilities,                      19,888,937       100.0              20,742,386       100.0
           minority interest
           in consolidated
           subsidiaries and
           shareholders'
           equity





(b) Consolidated Statements of Income


                                              FY2002, For the year ended March     FY2003, For the year ended March
                                                           31,2002                               31,2003
            Item              Notes             Yen in millions       Percentage      Yen in millions     Percentage

1 Net revenues                                       15,106,297       100.0              16,054,290       100.0

2 Cost of revenues              *                    11,518,782        76.3              12,156,140        75.7
Gross profit                                          3,587,515        23.7               3,898,149        24.3

3 Selling, general and          *
administrative expenses
     1. Freight and                         211,293                                         212,364
     transportation charges
     2. Selling expenses                    388,881                                         354,998
     3. Advertisement                       331,903                                         327,793
     4. Provision for product               180,100                                         199,777
     warranties
     5. Salaries and wages                  615,181                                         649,620
     6. Provision for                        23,233                                          25,452
     employee bonus
     7. Net periodic pension                 43,435                              43,869
     cost
     8. Depreciation and                     88,581                              94,975
     amortization
     9. Provision for                        59,389                             124,011
     doubtful accounts
     10. Amortization of                      1,649                              13,498
     goodwill
     11. Other                              520,395   2,464,044        16.3     488,107   2,534,469        15.8
Operating income                                      1,123,470         7.4               1,363,679         8.5

4 Non-operating income
     1. Interest income                      46,958                              43,278
     2. Dividend income                       8,691                              10,002
     3. Gains on sales of                    12,147                              12,641
     securities
     4. Gains on foreign                     36,262                              27,687
     exchange
     5. Equity in earnings of                15,046                              81,966
     affiliates
     6. Other                               125,004     244,111         1.6     120,523     296,100         1.8

5 Non-operating expenses
     1. Interest expenses                    29,838                              28,687
     2. Interests on                          2,151                                 859
     commercial papers
     3. Losses on disposal of                52,637                              53,863
     fixed assets
     4. Unrealized holding                   30,782                              55,273
     losses on securities
     5. Reductions of                         6,082                                 331
     acquisition cost of
     fixed assets
     6. Donations                             7,593                              11,733
     7. Other                               124,971     254,057         1.6      95,026     245,775         1.5
Ordinary income                                       1,113,524         7.4               1,414,003         8.8

6 Extraordinary gains
     Gains on return of                           -           -           -     235,314     235,314         1.5
     substitutional portion
     of employees' pension
     fund plans
     Income before income                             1,113,524         7.4               1,649,318        10.3
     taxes and minority
     interest in consolidated
     subsidiaries
   Income taxes - current                   591,327                             617,556
   Income taxes - deferred                (111,169)     480,158         3.2      33,237     650,794         4.1
   Minority interest in                                  17,541         0.1                  53,852         0.3
   consolidated subsidiaries
   Net income                                           615,824         4.1                 944,671         5.9





(c) Consolidated Statements of Capital Surplus and Retained Earnings


                                                                                   FY2002                  FY2003

                                                                             For the year ended      For the year ended
                                                                                March 31,2002           March 31,2003
               Item                               Notes                        Yen in millions         Yen in millions
1 Consolidated earned surplus at                                                     6,162,656                       -
beginning of year

2 Decrease in consolidated earned
surplus
   1. Dividends                                                            98,638                        -
   2. Bonuses to directors and                                              2,050                        -
   corporate auditors
   3. Decrease resulting from                                              16,742                        -
   increase in consolidated
   subsidiaries
   4. Decrease resulting from                                               3,874                        -
   decrease in consolidated
   subsidiaries
   5. Decrease resulting from                                             129,218      250,524           -           -
   share retirement by the parent
   company

3 Net income                                                                           615,824                       -
4 Consolidated earned surplus at                                                     6,527,956                       -
end of year

(Capital surplus)
1 Capital surplus at beginning of
year
   Capital reserve at beginning of                                              -            -     415,150     415,150
                year

2 Increase in capital surplus
   1. Gain on disposal of treasury                                              -                    1,430
   stock
   2. Increase resulting from                                                   -            -       1,820       3,251
   exchange of shares

3 Capital surplus at end of year                                                             -                 418,401

(Retained earnings)
1 Retained earnings at beginning
of year
   Consolidated earned surplus at                                               -            -   6,527,956   6,527,956
   beginning of year
2 Increase in retained earnings
   1. Net income                                                                -                  944,671
   2. Increase resulting from                                                   -                    3,804
   decrease in consolidated
   subsidiaries
   3. Increase resulting from                                                   -            -         166     948,642
   increase in affiliates
   accounted for under the equity
   method
3 Decrease in retained earnings
   1. Dividends                                                                 -                  109,330
   2. Bonuses to directors and                                                  -                    2,316
   corporate auditors
   3. Decrease resulting from                                                   -                    2,062
   increase in consolidated
   subsidiaries
   4. Decrease resulting from                                                   -            -     142,992     256,702
   share retirement by the parent
   company
4 Retained earnings at end of year                                                           -               7,219,896



(d) Consolidated Statement of Cash Flows


                                                                                          FY2002          FY2003

                                                                                         For the year    For the year
                                                                                             ended           ended

                                                                                        March 31, 2002  March 31, 2003
Item                                                                              Notes Yen in millions Yen in millions

 1  Cash flows from operating activities
1.              Income before income taxes and minority interest in consolidated        1,113,524       1,649,318
subsidiaries
2.              Depreciation                                                            803,607         851,634
3.              Losses on disposal of fixed assets                                      52,637          53,863
4.              Increase (decrease) in allowance for retirement benefits                131,187         (113,478)
5.              Interest and dividend income                                            (55,649)        (53,280)
6.              Interest expenses                                                       31,990          29,547
7.              Equity in earnings of affiliates                                        (15,046)        (81,966)
8.              Increase in trade notes and accounts receivable                         (583,422)       (357,746)
9.              Increase in loans receivable of consolidated finance subsidiaries       (91,321)        (407,186)
10.           (Increase) decrease in inventories                                        11,512          (25,842)
11.           Increase in trade notes and accounts payable                              14,686          108,611
12.           Other                                                                     (174,576)       294,123
Subtotal                                                                                1,239,130       1,947,598
13.           Interests and dividends received                                          68,454          69,766
14.           Interests paid                                                            (31,475)        (30,084)
15.           Income taxes paid                                                         (516,959)       (657,808)
Cash flows from operating activities                                                    759,149         1,329,472

 2  Cash flows from investing activities
1.                     Net (increase) decrease in time deposits                         34,828          (32,195)
2.             Purchases of marketable securities and investments in securities         (667,893)       (1,111,584)
3.             Proceeds from sales of marketable securities and investments in          159,139         208,776 
securities
4.             Proceeds on maturity of marketable securities and investments in         604,080         723,981
securities
5.             Additions to property , plant and equipment (excluding vehicles          (961,402)       (1,012,803)
for lease)
6.                     Additions to vehicles for lease                                  (566,690)       (540,945)
7.             Proceeds from sales of property , plant and equipment (excluding         65,119          64,074
vehicles for lease)
8.                     Proceeds from sales of vehicles for lease                        408,422         283,840
9.                     Other                                                            (29,635)        31,042
Cash flows from investing activities                                                    (954,031)       (1,385,814)

 3  Cash flows from financing activities
1.                     Net increase (decrease) in short-term borrowings                 26,112          (202,190)
2.                     Net increase in commercial papers                                78,331          179,453
3.                     Proceeds from origination of long-term borrowings                261,823         189,693
4.                     Payments for long-term borrowings                                (293,559)       (144,933)
5.                     Proceeds from issuance of bonds                                  1,493,896       1,564,564
6.                     Payments for redemption of bonds                                 (830,294)       (984,848)
7.                     Purchase of treasury stock                                       (282,849)       (454,611)
8.                     Dividends paid                                                   (98,638)        (109,330)
9.                     Other                                                            (6,816)         (4,241)
Cash flows from financing activities                                                    348,005         33,555

 4  Effect of exchange rate changes on cash and cash equivalents                         32,375          (42,098)

 5  Net increase (decrease) in cash and cash equivalents                                 185,499         (64,884)
 6  Cash and cash equivalents at beginning of year                                       1,507,280       1,688,126
 7  Decrease in cash and cash equivalents due to changes in scope of consolidated        (4,654)         -
subsidiaries
 8  Cash and cash equivalents at end of year                                             1,688,126       1,623,241




Notes to Consolidated Financial Statements

Significant Matters for Preparation of Consolidated Financial Statements


       FY2002, For the year ended March 31, 2002              FY2003, For the year ended March 31, 2003
1.          Scope of Consolidation                      1.        Scope of Consolidation

Number of consolidated subsidiaries: 564                Number of consolidated subsidiaries: 581

(1) Number of consolidated                             (1)    Number of consolidated subsidiaries in
subsidiaries in Japan: 355                              Japan: 355

Tokyo Toyota Motor Co., Ltd.                            Tokyo Toyota Motor Co., Ltd.

Tokyo Toyo-Pet Motor Sales Co., Ltd.                    Tokyo Toyo-Pet Motor Sales Co., Ltd.

Osaka Toyopet Co., Ltd.                                 Osaka Toyopet Co., Ltd.

Toyota Tokyo Corolla Co., Ltd.                          Toyota Tokyo Corolla Co., Ltd.

Hino Motors, Ltd.                                       Hino Motors, Ltd.

Toyota Motor Kyushu, Inc.                               Toyota Motor Kyushu, Inc.

Daihatsu Motor Co., Ltd.                                Daihatsu Motor Co., Ltd.

Toyota Motor Hokkaido, Inc.                             Toyota Motor Hokkaido, Inc.

Toyota Auto Body Co., Ltd.                              Toyota Auto Body Co., Ltd.

Kanto Auto Works, Ltd.                                  Kanto Auto Works, Ltd.

Araco Corporation                                       Araco Corporation

Toyota Financial Services Corporation                   Toyota Financial Services Corporation

Toyota Finance Corporation                              Toyota Finance Corporation

Others                                                  Others


(2) Number of overseas                                 (2)    Number of overseas consolidated
consolidated subsidiaries: 209                          subsidiaries: 226

Toyota Motor North America, Inc.                        Toyota Motor North America, Inc.

Toyota Motor Sales, U.S.A., Inc.                        Toyota Motor Europe n.v./s.v.

Toyota Motor Europe Marketing & Engineering n.v./s.a.   Toyota Motor Sales, U.S.A., Inc.

Toyota Deutschland G.m.b.H.                             Toyota Motor Marketing Europe n.v./s.a.

Toyota (GB) PLC                                         Toyota Deutschland G.m.b.H.

Toyota Motor Manufacturing, North America, Inc.         Toyota France S.A.

Toyota Motor Manufacturing, Kentucky, Inc.              Toyota Motor Italia S.p.A.

Toyota Motor Manufacturing, Indiana, Inc.               Toyota (GB) PLC

Toyota Motor Manufacturing Canada Inc.                  Toyota Motor Manufacturing, North America, Inc.

Toyota Motor Europe Manufacturing n.v./s.a.             Toyota Motor Manufacturing, Kentucky, Inc.

Toyota Motor Manufacturing (UK) Ltd.                    Toyota Motor Manufacturing, Indiana, Inc.

Kuozui Motors Ltd.                                      Toyota Motor Manufacturing Canada Inc.

Toyota Motor Thailand Co., Ltd.                          Toyota Motor Engineering & Manufacturing Europe n.v./
                                                                                                          s.a.
Toyota Motor Corporation Australia Ltd.
                                                        Toyota Motor Manufacturing (UK) Ltd.
Toyota Motor Credit Corporation
                                                        Toyota South Africa Motors (Pty) Ltd.
Toyota Credit Canada Inc.
                                                        Kuozui Motors Ltd.
Toyota Kreditbank G.m.b.H.
                                                        Toyota Motor Thailand Co., Ltd.
Toyota Motor Finance (Netherlands) B.V.
                                                        Toyota Motor Corporation Australia Ltd.
Toyota Financial Services (UK) PLC
                                                        Toyota Motor Credit Corporation
Toyota Finance Australia Ltd.
                                                        Toyota Credit Canada Inc.
Others
                                                        Toyota Kreditbank G.m.b.H.

                                                        Toyota Motor Finance (Netherlands) B.V.

                                                        Toyota Financial Services (UK) PLC

                                                        Toyota Finance Australia Ltd.

                                                        Others


During this fiscal year, 146 companies, including Hino  During this fiscal year, 41 companies, including
Motors, Ltd., newly became subsidiaries of Toyota Motor Toyota Motor Europe n.v./s.v., newly became
Corporation ('TMC') and were consolidated. Subsidiaries subsidiaries of Toyota Motor Corporation ('TMC') and
excluded from the scope of consolidation included (i)   were consolidated. Subsidiaries excluded from the
11 companies, including Toyota L&F Tokyo Co., that      scope of consolidation included (i) 6 companies,
ceased to be subsidiaries of TMC due to decreases in    including Toyota Kyoei Service Co., Ltd., that ceased
shareholding ratios resulting from sales of their       to be subsidiaries of TMC due to decreases in
respective voting shares or other reasons; (ii) 8       shareholding ratios resulting from sales of their
companies, including Toyota Industrial Equipment Europe respective voting shares or other reasons; (ii) 12
s.a.r.l., in which TMC no longer holds any voting stake companies, including Toyota Media Station Inc., that
as a result of selling all of their shares; (iii) 5     were liquidated; and (iii) 6 companies, including
companies, including Istarsystems, Inc., that were      Toyota Modellista Fukuoka Corporation, that were
liquidated; and (iv) 3 companies, including Toyota Soft merged into other consolidated subsidiaries.
Engineering Inc., that were merged into other
consolidated subsidiaries.


2.          Application of Equity Method                2.        Application of Equity Method

(1) Number of affiliates accounted for                  (1) Number of affiliates accounted for
under the equity method: 50                             under the equity method: 51

(a) Number of domestic affiliates accounted for under   (a) Number of domestic affiliates accounted for under
the equity method: 35                                   the equity method: 34

Toyota Industries Corporation                           Toyota Industries Corporation

Aichi Steel Corporation                                 Aichi Steel Corporation

Toyoda Machine Works, Ltd.                              Toyoda Machine Works, Ltd.

Toyota Tsusho Corporation                               Toyota Tsusho Corporation

Aisin Seiki Co., Ltd.                                   Aisin Seiki Co., Ltd.

Denso Corporation                                       Denso Corporation

Toyoda Gosei Co., Ltd.                                  Toyoda Gosei Co., Ltd.

Aisin AW Co., Ltd.                                      Aisin AW Co., Ltd.

Aioi Insurance Co., Ltd.                                Aioi Insurance Co., Ltd.

Others                                                  Others



(b) Number of overseas affiliates accounted for under   (b) Number of overseas affiliates accounted for under
the equity method: 15                                   the equity method: 17

New United Motor Manufacturing, Inc.                    New United Motor Manufacturing, Inc.

Others                                                  Toyota Canada Inc.

                                                        Others



From this fiscal year, 2 affiliates, including Taiho    From this fiscal year, 6 affiliates, including Tianjin
Kogyo Co., Ltd. were accounted for under the equity     Toyota Motor Co., Ltd. were accounted for under the
method in consideration of their materiality. In        equity method in consideration of their materiality.
addition, 3 companies previously accounted as equity    In addition, 4 companies previously accounted as
method affiliates, including Hino Motors, Ltd., have    equity method affiliates, including Toyota Woodyou
newly become subsidiaries of TMC and have consequently  Home Corporation and Toyota Espana S.L., have newly
been consolidated.                                      become subsidiaries of TMC and have consequently been
                                                        consolidated.  Jeco Co., Ltd. was no longer accounted
                                                        for under the equity method in consideration of its
                                                        materiality, resulting from the sale of its shares


(2) Number of unconsolidated subsidiaries and           (2) Number of unconsolidated subsidiaries and
affiliates not accounted for under the equity method    affiliates not accounted for under the equity method

      Affiliates: 189, including Aisin Takaoka Co.,           Affiliates: 182, including Aisin Takaoka Co.,
      Ltd.                                                    Ltd.



(3) Affiliates not accounted for under the equity       (3) Affiliates not accounted for under the equity
method are all insignificant in terms of their net      method are all insignificant in terms of their net
income (loss), legal reserve and retained earnings, and income (loss), legal reserve and retained earnings,
impact on the consolidated financial statements is      and impact on the consolidated financial statements is
immaterial.                                             immaterial.

3.          Fiscal Year Ends of Consolidated            3.        Fiscal Year Ends of Consolidated
Subsidiaries                                            Subsidiaries

(1) The fiscal year ends of the following consolidated  (1) The fiscal year ends of the following consolidated
subsidiaries differ from that of TMC, which is March    subsidiaries differ from that of TMC, which is March
31. During this fiscal year, 94 subsidiaries, including 31.
Toyota Motor Europe Manufacturing n.v./s.a., changed
their fiscal year ends from December 31 to March 31. As A total of 39 subsidiaries whose fiscal year ends on
a result, the fiscal years of these subsidiaries lasted December 31 includes:
15 months. The impact, however, on the consolidated
financial statements, was immaterial.                   OOO Toyota Motor

A total of 34 subsidiaries whose fiscal year ends on    Tianjin Toyota Forging Co., Ltd.
December 31 includes:
                                                        Tianjin Fengjin Auto Parts Co., Ltd.
Toyota Motor Italia S.p.A.
                                                        Toyota Motor (China) Investment Co., Ltd.
OOO Toyota Motor
                                                        Toyota Motor Technical Center (China) Co., Ltd.
Toyota Motor Thailand Co., Ltd.
                                                        Toyota Motorsport GmbH
Siam Toyota Manufacturing Co., Ltd.

Tianjin Toyota Forging Co., Ltd.
                                                        In addition, the following subsidiaries' fiscal years
Tianjin Fengjin Auto Parts Co., Ltd.                    end on the date specified in parentheses:

Toyota Motor (China) Investment Co., Ltd.               Fahren Miyagi Co., Ltd. (April 30)

Toyota Motor Technical Center (China) Co., Ltd.         Itagaki Syouji Co., Ltd. (June 30)

Toyota Motorsport GmbH                                  Itagaki Kousan Co., Ltd. (September 30)


(2) Of the above subsidiaries, 13 subsidiaries whose    (2) Of the above subsidiaries, Fahren Miyagi Co., Ltd
fiscal years end on December 31, including Toyota Motor (whose fiscal year ends on April 30), Itagaki Syouji
Thailand Co., Ltd., were consolidated based on the      Co., Ltd (whose fiscal year ends on June 30), Itagaki
amounts for a year ended March 31 prepared for the      Kousan Co., Ltd (whose fiscal year ends on September
purpose of consolidation.  In addition, 21              30) and 10 other subsidiaries whose fiscal years end
subsidiaries, including OOO Toyota Motor, were          on December 31, including Banco Toyota do Brasil S.A.,
consolidated based on their respective financial        were consolidated based on the amounts for a year
statements.                                             ended March 31 prepared for the purpose of
                                                        consolidation. In addition, 29 subsidiaries, including
                                                        OOO Toyota Motor, were consolidated based on their
                                                        respective financial statements.


4.          Significant Accounting Policies             4.        Significant Accounting Policies

(1) Valuation of assets                                 (1) Valuation of assets

(a) Securities                                          (a) Securities

Securities with fair value                              Securities with fair value

Principally stated at fair value based on market prices Principally stated at fair value based on market
at end of fiscal year. (Unrealized holding gains and    prices at end of fiscal year. (Unrealized holding
losses are accounted for as a component of              gains and losses are accounted for as a component of
shareholders' equity; cost of sales is determined using shareholders' equity; cost of sales is determined
the moving average method.)                             using the moving average method.)

Securities not practicable to fair value                Securities not practicable to fair value

Principally stated at cost using the moving average     Principally stated at cost using the moving average
method.                                                 method.
(b) Derivatives                                         (b) Derivatives

Principally stated at fair value.                       Principally stated at fair value.
(c) Money trusts for trading purposes                   (c) Money trusts for trading purposes

         Stated at fair value.                                   Stated at fair value.
(d) Inventories                                         (d) Inventories

TMC and domestic consolidated subsidiaries              TMC and domestic consolidated subsidiaries

Principally stated at cost, as determined using the     Principally stated at cost, as determined using the
periodic average method or the specific identification  periodic average method or the specific identification
method.                                                 method.

Overseas consolidated subsidiaries                      Overseas consolidated subsidiaries

Principally stated at the lower of cost or market value Principally stated at the lower of cost or market
based on the specific identification method,            value based on the specific identification method,
first-in-first-out method or last-in-first-out method.  first-in-first-out method or last-in-first-out method.

(2)  Depreciation and amortization                      (2)  Depreciation and amortization

(a)  Depreciation of property, plant and equipment      (a)  Depreciation of property, plant and equipment

TMC and domestic consolidated subsidiaries:             TMC and domestic consolidated subsidiaries:

Principally computed using the declining balance        Principally computed using the declining balance
method. The determination of useful life and residual   method. The determination of useful life and residual
value is based on the same standards as in the          value is based on the same standards as in the
Corporation Tax Laws of Japan.                          Corporation Tax Laws of Japan.

Buildings and structures, machinery and equipment,      Buildings and structures, machinery and equipment,
vehicles and delivery equipment and other property,     vehicles and delivery equipment and other property,
plant and equipment of TMC are depreciated to their     plant and equipment of TMC is depreciated to their
actual residual value after they have been depreciated  actual residual value after they have been depreciated
to their depreciable limit under the Corporation Tax    to their depreciable limit under the Corporation Tax
Laws of Japan.                                          Laws of Japan.

Overseas consolidated subsidiaries:                     Overseas consolidated subsidiaries:

Principally computed using the straight-line method.    Principally computed using the straight-line method.


(b) Amortization of intangible fixed assets             (b) Amortization of intangible fixed assets

Software for internal use is amortized over its         Software for internal use is amortized over its
estimated useful life of 5 years using the              estimated useful life of 5 years using the
straight-line method.                                   straight-line method.
(3) Accounting for deferred assets                      (3) Accounting of deferred assets

Organization expenses, business commencement expenses,  Organization expenses, business commencement expenses,
share issuance expenses, bond issuance expenses and     share issuance expenses, bond issuance expenses and
bond discounts are expensed when the payment is made.   bond discounts are expensed when the payment is made.


(4) Significant allowances                              (4) Significant allowances

(a)  Allowance for doubtful accounts                    (a)  Allowance for doubtful accounts

TMC:                                                    TMC:

To prepare for losses from uncollectible receivables,   To prepare for losses from uncollectible receivables,
allowance for doubtful accounts is provided in an       allowance for doubtful accounts is provided in an
amount equivalent to the maximum limit deductible for   amount equivalent to the maximum limit deductible for
tax purposes which is determined by the Corporation Tax tax purposes which is determined by the Corporation
Laws or an amount determined by considering the         Tax Laws or an amount determined by considering the
collectibility of receivable                            collectibility of receivable



Consolidated subsidiaries:                              Consolidated subsidiaries:

Principally computed based on the maximum limit         Principally computed based on the maximum limit
deductible for tax purposes which is determined by the  deductible for tax purposes which is determined by the
Corporation Tax Laws or the historical loss experience. Corporation Tax Laws or the historical loss
                                                        experience.


(b) Allowance for product warranties
                                                        (b) Allowance for product warranties
To prepare for expenses related to after-sale services,
allowance for product warranty is provided based on the To prepare for expenses related to after-sale
terms of the warranties and historical experience.      services, allowance for product warranty is provided
                                                        based on the terms of the warranties and historical
                                                        experience.

(c)  Allowance for employee bonuses

To provide for employee bonuses, some of the            (c)  Allowance for employee bonuses
consolidated subsidiaries accrue part of the estimated
bonus payments for the following fiscal year which are  To provide for employee bonuses, some of the
attributed to the current fiscal year.                  consolidated subsidiaries accrue part of the estimated
                                                        bonus payments for the following fiscal year which are
                                                        attributed to the current fiscal year.

(d) Allowance for retirement benefits

Principally to provide for the retirement benefits for  (d) Allowance for retirement benefits
employees, including those already retired, allowance
for retirement benefits obligations deemed to have been Principally to provide for the retirement benefits for
incurred during the current fiscal year is stated based employees, including those already retired, allowance
on estimated retirement benefit obligations and         for retirement benefits obligations deemed to have
estimated pension assets at the end of the fiscal year. been incurred during the current fiscal year is stated
                                                        based on estimated retirement benefit obligations and
                                                        estimated pension assets at the end of the fiscal
                                                        year.


(5)  Accounting for Lease Transactions                  (5)  Accounting for Lease Transactions

Finance lease transactions other than those which are   Finance lease transactions other than those which are
deemed to transfer the ownership of the leased assets   deemed to transfer the ownership of the leased assets
to lessees are accounted for by a method similar to     to lessees are accounted for by a method similar to
that used for ordinary operating lease transactions.    that used for ordinary operating lease transactions.


(6)  Accounting for Hedges                              (6)  Accounting for Hedges

Gains or losses arising from changes in fair value of   Gains or losses arising from changes in fair value of
the derivatives designed as 'hedging instruments' are   the derivatives designed as 'hedging instruments' are
deferred as assets or liabilities, or those derivatives deferred as assets or liabilities, or those
are used for valuating hedged assets or liabilities.    derivatives are used for valuating hedged assets or
                                                        liabilities.
TMC and its consolidated subsidiaries enter into the
following hedge transactions: (i) foreign exchange      TMC and its consolidated subsidiaries enter into the
forward contracts and foreign currency options,         following hedge transactions: (i) foreign exchange
primarily to hedge against exchange rate fluctuation    forward contracts and foreign currency options,
risks related to accounts receivable denominated in     primarily to hedge against exchange rate fluctuation
foreign currencies, primarily the U.S. dollar; (ii)     risks related to accounts receivable denominated in
interest rate options, primarily to hedge against       foreign currencies, primarily the U.S. dollar; (ii)
interest rate fluctuation risks related to              interest rate options, primarily to hedge against
floating-rate liabilities; and (iii) interest rate      interest rate fluctuation risks related to
currency swaps and interest rate swaps, primarily to    floating-rate liabilities; and (iii) interest rate
hedge against currency and interest rate fluctuation    currency swaps and interest rate swaps, primarily to
risks related to the principal and interest of bond     hedge against currency and interest rate fluctuation
portfolios denominated in foreign currencies and        risks related to the principal and interest of bond
straight bonds issued in foreign currencies.            portfolios denominated in foreign currencies and
                                                        straight bonds issued in foreign currencies.
The assessment of hedge effectiveness is conducted by
comparing the accumulated fluctuation in fair value or  The assessment of hedge effectiveness is conducted by
cash flow of the hedged item and the hedge instrument   comparing the accumulated fluctuation in fair value or
in the period between the start date of the hedge       cash flow of the hedged item and the hedge instrument
transaction and the day of assessment.                  in the period between the start date of the hedge
                                                        transaction and the day of assessment.
TMC believes that its exposure to credit risk is
immaterial as the counterparties of the transactions    TMC believes that its exposure to credit risk is
entered into by TMC and its subsidiaries are            immaterial as the counterparties of the transactions
diversified among financial institutions with strong    entered into by TMC and its subsidiaries are
credit profiles.  The execution and management of hedge diversified among financial institutions with strong
transactions are conducted by the financial department  credit profiles.  The execution and management of
of each company upon obtaining approval from directors  hedge transactions are conducted by the financial
overseeing the accounting and financial operations. The department of each company upon obtaining approval
status of these transactions is periodically reported   from directors overseeing the accounting and financial
to these overseeing directors.                          operations. The status of these transactions is
                                                        periodically reported to these overseeing directors.

(7)  Accounting of consumption taxes                    (7)  Accounting of consumption taxes

Consumption tax is computed using the net-of-tax        Consumption tax is computed using the net-of-tax
method.                                                 method.


5.          The valuation of assets and liabilities of  5.        The valuation of assets and liabilities of
consolidated subsidiaries                               consolidated subsidiaries

Assets and liabilities of consolidated subsidiaries are Assets and liabilities of consolidated subsidiaries
revalued at their fair value not recognizing minority   are revalued at their fair value not recognizing
interest as of the date of acquisition                  minority interest as of the date of acquisition


6.          Amortization of goodwill                    6.        Amortization of goodwill

Goodwill is principally amortized over 5 years using    Goodwill is principally amortized over 5 years using
the straight-line method.  If the amount of goodwill is the straight-line method.  If the amount of goodwill
immaterial, however, it is expensed as incurred.        is immaterial, however, it is expensed as incurred.

Goodwill recorded in this fiscal year was expensed as   Goodwill recorded in this fiscal year was expensed as
incurred due to its immateriality.                      incurred due to its immateriality.

7.          Appropriation of retained earnings          7.        Appropriation of retained earnings

Consolidated Statements of Retained Earnings and        Consolidated Statements of Retained Earnings and
Capital Surplus are prepared based on the appropriation Capital Surplus are prepared based on the
of retained earnings approved during this fiscal year.  appropriation of retained earnings approved during
                                                        this fiscal year

8.     Definition of funds on consolidated statements   8.          Definition of funds on consolidated
of cash flows                                           statements of cash flows

Cash and cash equivalents on the consolidated           Cash and cash equivalents on the consolidated
statements of cash flows include cash on hand,          statements of cash flows include cash on hand,
immediately accessible bank deposits, and short-term    immediately accessible bank deposits, and short-term
investments with original maturities of 3 months or     investments with original maturities of 3 months or
less, that are readily convertible into cash and that   less, that are readily convertible into cash and that
bear insignificant risk of changes in value.            bear insignificant risk of changes in value.



(Changes in Accounting Policy)

      FY2002, For the year ended March 31, 2002               FY2003, For the year ended March 31, 2003
                                                       1.     Accounting Standards for Treasury Stock and the
                                                       Withdrawal of Legal Reserve

                                                       In conjunction with the implementation of 'Accounting
                                                       Standards for Treasury Stock and the Withdrawal of
                                                       Legal Researve' (Financial Accounting Standards No.1)
                                                       effective from April 1, 2002, TMC and its domestic
                                                       subsidiaries have adopted this statement for this
                                                       fiscal year.  The adoption of the new standard had no
                                                       material impact on the results for this fiscal year.

                                                       In connection with the amendment of the Regulations
                                                       Regarding Consolidated Financial Statements,
                                                       shareholders' equity in the consolidated balance sheet
                                                       and consolidated statements of retained earnings and
                                                       capital surplus for this fiscal year have been prepared
                                                       in accordance with the amended regulations.

                                                       2.     Earnings per share

                                                       In conjunction with the implementation of 'Accounting
                                                       Standard for Earnings Per Share' (Financial Accounting
                                                       Standards No. 2) and 'Implementation Guidance of
                                                       Accounting Standard for Earnings Per Share'
                                                       (Implementation Guidance of Financial Accounting
                                                       Standards No. 4) for the year beginning on and after
                                                       April 1, 2002, TMC has adopted these statements for
                                                       this fiscal year.  The impact due to the adoption of
                                                       these new standards is described in (Per share data)



(Changes in Presentation)

      FY2002, For the year ended March 31, 2002               FY2003, For the year ended March 31, 2003


                                                       'Commercial papers' is presented as a separate line
                                                       item in the consolidated balance sheet because it
                                                       exceeded 5% of the total amount of liabilities,
                                                       minority interests in consolidated subsidiaries and
                                                       shareholders' equity as of March 31, 2003.

                                                       The line item 'Other current liabilities' under
                                                       'Current liabilities' in the consolidated balance sheet
                                                       of the previous year included commercial papers in the
                                                       amount of JPY952,553 million.




(Additional Information)

      FY2002, For the year ended March 31, 2002               FY2003, For the year ended March 31, 2003


                                                       In conjunction with enforcement of the Defined Benefit
                                                       Enterprise Pension Plan Law, TMC, some of its domestic
                                                       consolidated subsidiaries and domestic affiliates
                                                       accounted for under the equity method received approval
                                                       from the Minister of Health, Labor and Welfare, for
                                                       exemption from the obligation for benefits related to
                                                       future employee service under the substitutional
                                                       portion. (TMC received the approval on April 1, 2002)

                                                       TMC and these subsidiaries and affiliates applied the
                                                       transitional provision stipulated in paragraph 47-2 of
                                                       the 'Practical Guidelines of Accounting for Retirement
                                                       Benefits (Interim Report)' (Accounting Committee Report
                                                       No. 13 issued by the Japanese Institute of Certified
                                                       Public Accountants), and recognized an extinguishment
                                                       of retirement benefit obligation related to the
                                                       substitutional portion as of the date of the approval.

                                                       As a result, JPY32,341 million was recognized as
                                                       'Equity in earnings of affiliates' under 'Non-operating
                                                       income', and JPY235,314 million was recognized as
                                                       'Gains on return of substitutional portion of
                                                       employees' pension fund plans' under 'Extraordinary
                                                       gains' in this fiscal year.

                                                       Perspective amount to be returned is JPY474,400 million
                                                       as of March 31, 2003.







Notes to Consolidated Financial Statements

(Consolidated Balance Sheets)
FY2002, March 31, 2002                                       FY2003, March 31, 2003
1.                                                           1.

(*1) Accumulated depreciation of property,                   (*1) Accumulated depreciation of property, 
plant and equipment                                          plant and equipment

 
                           JPY7,771,307 million                                    JPY7,931,514 million


(*2) Vehicles and delivery equipment include assets         (*2) Vehicles and delivery equipment include assets
under lease contracts (Toyota as lessor) in the amounts of   under lease contracts (Toyota as lessor) in the amounts of 
JPY1,153,861 million.                                        JPY1,134,883 million.


(*3) Assets related to affiliates                           (*3) Assets related to affiliates

(Assets)                                                    (Assets)
                                     Yen in millions                                                    Yen in millions
Investments in securities (Stock)    1,104,863                     Investments in securities (Stock)    1,028,941       
                                                                                                         
Investments in securities (Bonds)    304                           Investments in securities (Bonds)    200
                                                                                                                 
Investments in                       68,005                        Investments in                       48,990
securities (Convertible                                            securities (Convertible
bonds                                                              bonds)



                                                                                                                        
                                                            (*4) Number of outstanding shares of TMC is 3,609,997,492   
                                                                 shares (common share).


                                                                                                                        
                                                            (*5) Number of treasury stock held by TMC, its consolidated 
                                                                 subsidiaries, and affiliates accounted for under the   
                                                                 equity method is 259,094,384 shares (common stock).


                                                                                                                        
                                                            (*6) Fair value of securities held as collateral of         
                                                                 repurchase agreement transactions, which TMC and its   
                                                                 consolidated subsidiaries have the right to dispose of,
                                                                 are JPY24,999 million.


2.   Assets pledged as collateral and secured liabilities       2.  Assets pledged as collateral and secured liabilities

(1)  Assets pledged as collateral                               (1)  Assets pledged as collateral
                                             Yen in millions                                            Yen in millions
Notes receivable                             47,007        Notes receivable                             38,134
Installment credit from dealers              138,102       Installment credit from dealers              66,013
Buildings and structures                     67,504        Buildings and structures                     58,691
Machinery and equipment                      18,028        Machinery and equipment                      12,190
Land                                         106,072       Land                                         98,248
Other                                        20,618        Other                                        27,445
   Total                                     397,334         Total                                     300,723



(2)  Secured liabilities                                        (2) Secured liabilities
                                             Yen in millions                                            Yen in millions
Short-term borrowings                        141,136       Short-term borrowings                        143,266
Long-term borrowings                         73,220        Long-term borrowings                         56,769
Bonds                                        138,102       Bonds                                        66,013
   Total                                     352,459          Total                                     266,048



3.          Liabilities for guarantees                    3.  Liabilities for guarantees
                                             Yen in millions                                             Yen in millions
Debt guarantees related to the operation of  783,339        Debt guarantees related to the operation of  841,871
consolidated finance subsidiaries                           consolidated finance subsidiaries
Other liabilities for guarantees             25,336         Other liabilities for guarantees             35,619
Other acts similar to guarantees             34             Other acts similar to guarantees             13
   Total                                     808,710           Total                                     877,504



4.          Notes receivable                              4.  Notes receivable
                                             Yen in million                                              Yen in million
Discounted                                   7,109                         Discounted                    17,343
Endorsed                                     61                            Endorsed                      11




5.     Unfunded loans under overdraft                      5.  Unfunded loans under overdraft                           
       contracts and loan commitments                      contracts and loan commitments

Unfunded loans provided by consolidated finance               Unfunded loans provided by consolidated finance
subsidiaries under overdraft contracts and loan commitments   subsidiaries under overdraft contracts and loan           
                                                              commitments

                                         JPY731,702 million                                         JPY1,306,483 million



The above funds are not necessarily fully executed, as           The above funds are not necessarily fully executed, as
some of the overdraft contracts and loan commitments referred    some of the overdraft contracts and loan commitments   
above are contingent upon a satisfactory review of the           referred above are contingent upon a satisfactory
creditworthiness of the customer.                                review of the creditworthiness of the customer.





(Consolidated Statement of Income)


FY2002, For the year ended March 31, 2002              FY2003, For the year ended March 31, 2003
*Research and development related expenses included in *Research and development related expenses included in
general and administrative expenses and manufacturing  general and administrative expenses and manufacturing
costs are JPY592,523 million.                          costs are JPY671,608 million.





(Consolidated Statements of Cash Flows)


FY2002, For the year ended March 31, 2002              FY2003, For the year ended March 31, 2003

1.   Reconciliation between cash and cash equivalents  1.   Reconciliation between cash and cash
     presented in the consolidated balance sheets           equivalents presented in the consolidated balance sheets

                                      Yen in millions                                                Yen in millions
Cash and deposits                          707,233          Cash and deposits                              620,870
Marketable securities                      1,605,460        Marketable securities                          1,661,978
  Total                                    2,312,694          Total                                        2,282,848
Time deposits and securities with          (624,568)        Time deposits and securities with              (659,606)
maturities over 3 months                                    maturities over 3 months
Cash and cash equivalents                  1,688,126        Cash and cash equivalents                      1,623,241



2.   Assets and liabilities of newly consolidated subsidiaries 
     due to the acquisition of shares

In connection with the consolidation of Hino Motors, Ltd. and its subsidiaries,
resulting from the acquisition of shares of Hino Motors, Ltd. during FY2002, the
following shows the assets and liabilities of Hino Motors, Ltd. and its
subsidiaries, the acquisition cost of shares, and the net payment for
acquisition.

                                                   Yen in millions
Current assets                                     381,853
Fixed assets                                       436,295
Current liabilities                                (461,628)
Long-term liabilities                              (157,665)
Goodwill                                           (3,575)
Minority interest and others                       (128,994)
Acquisition cost of shares of Hino Motors, Ltd.    66,286
Cash and cash equivalents of Hino Motors Ltd. and  (36,972)
its subsidiaries
Net cash paid for acquisition                      29,314



The above net cash paid for acquisition is included in 'Other' 
under 'Cash flows from investing activities'.
                                                                                                                        
                                              

3.         Significant non-cash transactions               2.            Significant non-cash transactions

During FY2002, no non-cash transaction that will have      During FY2003, no non-cash transaction that will have
a material impact on cash flows in subsequent fiscal       a material impact on cash flows in subsequent fiscal years 
have occurred.                                             years have occurred.                                         
                                                                     






                      This information is provided by RNS
            The company news service from the London Stock Exchange