Toyota Motor Corporation Q4 FY2020 earnings call

• Conveyed condolences to those affected by COVID-19 and gratitude to stakeholders. • FY2020 financial results: net revenue ¥2,929.9B, operating income ¥2,442.8B; COVID-19 impacted net revenues by ¥380B and operating income by ¥160B. • Factors affecting operating income: foreign exchange rates -¥305B, cost reduction +¥170B, marketing +¥90B, expense reduction +¥45B. Excluding forex, etc., operating income improved ¥125B. • Region-wise operating income breakdown: Japan down, North America up, Europe up, Asia down. • China business: consolidated subsidiaries operating income down, equity method affiliates up; financial services operating income down due to provisions. • Dividends: ¥120 per share year-end dividend, total ¥220 per share, payout 29.9%; no share repurchase.

For the fiscal year ended March 2020, consolidated vehicle sales decreased to 8,958,000 units (-19,000 units vs previous year). Net revenue was ¥2,929.9 billion, operating income ¥2,442.8 billion, pretax income ¥2,554.6 billion, and net income ¥2,076.1 billion. Region-wise operating income: Japan down ¥121.8 billion to ¥1,568.5 billion; North America up ¥145.4 billion to ¥289.5 billion; Europe up ¥190.6 billion to ¥140.7 billion; Asia down ¥66.9 billion to ¥386.8 billion. China business: consolidated subsidiaries operating income decreased by ¥15.2 billion to ¥134.4 billion; equity method affiliates up ¥13.1 billion to ¥118.1 billion. Financial services operating income down ¥32.6 billion to ¥309.7 billion.

• Forecast for FY2021: consolidated vehicle sales expected 7 million units (down 1.958 million vs prior year). • Consolidated financial performance forecast: net revenue ¥24 trillion, operating income ¥500 billion. • Factors impacting FY2021 operating income: negative forex effect ¥430 billion, volume decrease ¥1,500 billion.

• Impact of COVID-19 on sales volume and financial performance uncertainty. • Uncertain global economy affecting automotive manufacturing. • Supply chain disruptions due to COVID-19.

Q: Impact of remote work on R&D activities and quality issues?

A: R&D remote work is heavy with tools like CAT; quality first philosophy unchanged, sorry for any inconvenience but quality won't be compromised.