FINANCIAL SUMMARY. (All financial information has been prepared in accordance with U.S. generally accepted accounting principles)

Transcription

1 FINANCIAL SUMMARY FY2018 Third Quarter (April 1, 2017 through December 31, 2017) English translation from the original Japanese-language document TOYOTA MOTOR CORPORATION

2 FY2018 Third Quarter Consolidated Financial Results English translation from the original Japanese-language document February 6, 2018 Company name : Toyota Motor Corporation Stock exchanges on which the shares are listed : Tokyo and Nagoya Stock Exchanges in Japan Code number : 7203 URL : Representative : Akio Toyoda, President Contact person : Kenta Kon, General Manager, Accounting Division Tel. (0565) Filing date of quarterly securities report : February 13, 2018 Payment date of cash dividends : Supplemental materials prepared for quarterly financial results : yes Earnings announcement for quarterly financial results : yes (Amounts are rounded to the nearest million yen) 1. Consolidated Results for FY2018 First Nine Months (April 1, 2017 through December 31, 2017) (1) Consolidated financial results (For the nine months ended December 31) (% of change from previous first nine months) (2) Consolidated financial position Net revenues Operating income 3. Forecast of Consolidated Results for FY2018 (April 1, 2017 through March 31, 2018) Income before income taxes and equity in earnings of affiliated companies Net income attributable to Toyota Motor Corporation Million yen % Million yen % Million yen % Million yen % FY2018 first nine months 21,796, ,770, ,003, ,013, FY2017 first nine months 20,154, ,555, ,764, ,432, (Note) Comprehensive income: FY2018 first nine months 2,428,083 million yen ( 50.3 %), FY2017 first nine months 1,615,665 million yen ( %) Net income attributable to Toyota Motor Corporation per common share Basic Net income attributable to Toyota Motor Corporation per common share Diluted Yen Yen FY2018 first nine months FY2017 first nine months Total assets Mezzanine equity and Shareholders' equity Toyota Motor Corporation shareholders' equity Ratio of Toyota Motor Corporation shareholders' equity Million yen Million yen Million yen % FY2018 third quarter 51,216,462 20,170,391 18,996, FY ,750,186 18,668,953 17,514, Cash Dividends Annual cash dividends per common share End of first End of second End of third quarter quarter quarter Year-end Total Yen Yen Yen Yen Yen FY FY FY2018 (forecast) (Note) Revisions to the forecast of cash dividends since the latest announcement: none Please refer to "(Reference) Cash Dividends on Class Shares" for information regarding cash dividends on class shares, which are unlisted and have different rights from common stock. Net revenues Operating income Income before income taxes and equity in earnings of affiliated companies Net income attributable to Toyota Motor Corporation (% of change from FY2017) Net income attributable to Toyota Motor Corporation per common share Basic Million yen % Million yen % Million yen % Million yen % Yen Full-year 29,000, ,200, ,450, ,400, (Note) Revisions to the forecast of consolidated results since the latest announcement: yes

3 Notes (1) Changes in significant subsidiaries during the current quarter (Changes in specified subsidiaries that caused a change in the scope of consolidation): none (2) Simplified accounting procedures and specific accounting procedures: yes Note: For more details, please see page 9 "Other Information". (3) Changes in accounting policies (i) Changes by a newly issued accounting pronouncement: yes (ii) Changes other than (3)-(i) above: none Note: For more details, please see page 9 "Other Information". (4) Number of shares issued and outstanding (common stock) (i) Number of shares issued and outstanding at the end of each period (including treasury stock): FY2018 third quarter 3,262,997,492 shares, FY2017 3,262,997,492 shares (ii) Number of treasury stock at the end of each period: FY2018 third quarter 324,695,986 shares, FY ,274,636 shares (iii) Average number of shares issued and outstanding in each period: FY2018 first nine months 2,955,906,559 shares, FY2017 first nine months 3,017,815,402 shares This report is not reviewed. Cautionary Statement with Respect to Forward-Looking Statements, and Other Information 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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting the automotive markets in Japan, North America, Europe, Asia 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, the Russian ruble, the Canadian dollar and the British pound, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota's ability to market and distribute effectively; (v) Toyota's ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) 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 government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota's other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota's ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota's brand image; (x) Toyota's reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota's reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, 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; and (xiv) the impact of natural calamities including the negative effect on Toyota's vehicle production and sales. 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 information prepared in accordance with U.S. generally accepted accounting principles. (Reference) Cash Dividends on Class Shares Cash dividends on class shares, which have different rights from common stock, are as follows: Annual cash dividends per First Series Model AA Class Share End of first End of second End of third quarter quarter quarter Year-end Total Yen Yen Yen Yen Yen FY FY FY2018 (forecast) (Note) The First Series Model AA Class Shares were issued in July 2015.

4 TABLE OF CONTENTS 1. Consolidated Financial Statements... 2 (1) Consolidated Balance Sheets... 2 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income... 4 (3) Consolidated Statements of Cash Flows... 8 (4) Going Concern Assumption... 9 (5) Significant Changes in Shareholders' Equity Other Information... 9 (1) Changes in significant subsidiaries during the current period... 9 (2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements... 9 (3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements... 9 Supplemental Material for Financial Results for FY2018 Third Quarter 1

5 1. Consolidated Financial Statements (1) Consolidated Balance Sheets Assets Current assets: FY2017 (March 31, 2017) FY2018 third quarter (December 31, 2017) (Yen in millions) Increase (Decrease) Cash and cash equivalents 2,995,075 2,746,661 (248,414) Time deposits 1,082,654 1,201, ,162 Marketable securities 1,821,598 1,842,324 20,726 Trade accounts and notes receivable, less allowance for doubtful accounts 2,115,938 2,093,532 (22,406) Finance receivables, net 6,196,649 6,581, ,854 Other receivables 436, ,370 41,503 Inventories 2,388,617 2,542, ,690 Prepaid expenses and other current assets 796,297 1,018, ,822 Total current assets 17,833,695 18,504, ,937 Noncurrent finance receivables, net 9,012,222 9,836, ,680 Investments and other assets: Marketable securities and other securities investments 7,679,928 8,163, ,912 Affiliated companies 2,845,639 3,071, ,202 Employees receivables 25,187 23,292 (1,895) Other 1,156,406 1,152,631 (3,775) Total investments and other assets 11,707,160 12,411, ,444 Property, plant and equipment: Land 1,379,991 1,390,339 10,348 Buildings 4,470,996 4,652, ,595 Machinery and equipment 11,357,340 11,695, ,426 Vehicles and equipment on operating leases 5,966,579 6,267, ,101 Construction in progress 474, ,638 19,450 Total property, plant and equipment, at cost 23,649,094 24,500, ,920 Less Accumulated depreciation (13,451,985) (14,036,690) (584,705) Total property, plant and equipment, net 10,197,109 10,463, ,215 Total assets 48,750,186 51,216,462 2,466,276 2

6 FY2017 (March 31, 2017) FY2018 third quarter (December 31, 2017) (Yen in millions) Increase (Decrease) Liabilities Current liabilities: Short-term borrowings 4,953,682 5,551, ,444 Current portion of long-term debt 4,290,449 4,321,512 31,063 Accounts payable 2,566,382 2,308,305 (258,077) Other payables 936, ,679 (35,259) Accrued expenses 3,137,827 3,044,969 (92,858) Income taxes payable 223, ,934 82,360 Other current liabilities 1,210,113 1,358, ,868 Total current liabilities 17,318,965 17,792, ,541 Long-term liabilities: Long-term debt 9,911,596 10,491, ,242 Accrued pension and severance costs 905, ,929 14,859 Deferred income taxes 1,423,726 1,291,030 (132,696) Other long-term liabilities 521, ,768 28,892 Total long-term liabilities 12,762,268 13,253, ,297 Total liabilities 30,081,233 31,046, ,838 Mezzanine equity Model AA Class Shares, no par value, 485, ,902 3,025 authorized: 150,000,000 shares at March 31, 2017 and December 31, 2017 issued: 47,100,000 shares at March 31, 2017 and December 31, 2017 Shareholders' equity Toyota Motor Corporation shareholders' equity: Common stock, no par value, 397, ,050 authorized: 10,000,000,000 shares at March 31, 2017 and December 31, 2017 issued: 3,262,997,492 shares at March 31, 2017 and December 31, 2017 Additional paid-in capital 484, ,954 3,941 Retained earnings 17,601,070 18,984,330 1,383,260 Accumulated other comprehensive income (loss) 640, , ,857 Treasury stock, at cost, (1,608,243) (1,843,625) (235,382) 288,274,636 shares at March 31, 2017 and 324,695,986 shares at December 31, 2017 Total Toyota Motor Corporation shareholders' equity 17,514,812 18,996,488 1,481,676 Noncontrolling interests 668, ,001 16,737 Total shareholders' equity 18,183,076 19,681,489 1,498,413 Commitments and contingencies Total liabilities, mezzanine equity and shareholders' equity 48,750,186 51,216,462 2,466,276 Note: The total number of authorized shares for common stock and Model AA Class Shares is 10,000,000,000 shares. 3

7 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income First nine months ended December 31 Consolidated Statements of Income Net revenues: FY2017 first nine months (Nine months ended December 31, 2016) FY2018 first nine months (Nine months ended December 31, 2017) (Yen in millions) Increase (Decrease) Sales of products 18,833,706 20,335,530 1,501,824 Financing operations 1,321,014 1,461, ,430 Total net revenues 20,154,720 21,796,974 1,642,254 Costs and expenses: Cost of products sold 15,693,468 16,859,814 1,166,346 Cost of financing operations 864, ,418 89,568 Selling, general and administrative 2,040,951 2,212, ,605 Total costs and expenses 18,599,269 20,026,788 1,427,519 Operating income 1,555,451 1,770, ,735 Other income (expense): Interest and dividend income 129, ,661 19,017 Interest expense (19,588) (20,049) (461) Foreign exchange gain, net 42,536 73,755 31,219 Other income (loss), net 56,029 30,560 (25,469) Total other income (expense) 208, ,927 24,306 Income before income taxes and equity in earnings of affiliated companies 1,764,072 2,003, ,041 Provision for income taxes 525, ,309 (246,935) Equity in earnings of affiliated companies 258, , ,849 Net income 1,496,830 2,083, ,825 Less Net income attributable to noncontrolling interests (64,126) (70,478) (6,352) Net income attributable to Toyota Motor Corporation 1,432,704 2,013, ,473 Note: Net income attributable to common shareholders for the first nine months ended December 31, 2017 and 2016 is 2,003,958 million yen and 1,425,357 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 9,219 million yen and 7,347 million yen, respectively, from Net income attributable to Toyota Motor Corporation. (Yen) Net income attributable to Toyota Motor Corporation per common share Basic Diluted

8 Consolidated Statements of Comprehensive Income FY2017 first nine months (Nine months ended December 31, 2016) FY2018 first nine months (Nine months ended December 31, 2017) (Yen in millions) Increase (Decrease) Net income 1,496,830 2,083, ,825 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 9, , ,852 Unrealized gains (losses) on securities 94, , ,429 Pension liability adjustments 14,890 7,202 (7,688) Total other comprehensive income (loss) 118, , ,593 Comprehensive income 1,615,665 2,428, ,418 Less Comprehensive income attributable to noncontrolling interests (69,935) (85,049) (15,114) Comprehensive income attributable to Toyota Motor Corporation 1,545,730 2,343, ,304 5

9 Third quarter for the three months ended December 31 Consolidated Statements of Income Net revenues: FY2017 third quarter (Three months ended December 31, 2016) FY2018 third quarter (Three months ended December 31, 2017) (Yen in millions) Increase (Decrease) Sales of products 6,617,000 7,101, ,556 Financing operations 467, ,211 37,024 Total net revenues 7,084,187 7,605, ,580 Costs and expenses: Cost of products sold 5,636,630 5,869, ,361 Cost of financing operations 331, ,159 (2,878) Selling, general and administrative 677, ,972 56,038 Total costs and expenses 6,645,601 6,932, ,521 Operating income 438, , ,059 Other income (expense): Interest and dividend income 49,890 55,899 6,009 Interest expense (8,475) (6,508) 1,967 Foreign exchange gain, net 70,443 19,936 (50,507) Other income (loss), net 37,094 7,968 (29,126) Total other income (expense) 148,952 77,295 (71,657) Income before income taxes and equity in earnings of affiliated companies 587, , ,402 Provision for income taxes 170,320 (95,938) (266,258) Equity in earnings of affiliated companies 89, ,808 34,201 Net income 506, , ,861 Less Net income attributable to noncontrolling interests (20,294) (28,837) (8,543) Net income attributable to Toyota Motor Corporation 486, , ,318 Note: Net income attributable to common shareholders for the third quarter ended December 31, 2017 and 2016 is 938,776 million yen and 484,082 million yen, respectively, which is derived by deducting dividend and accretion to Model AA Class Shares of 3,073 million yen and 2,449 million yen, respectively, from Net income attributable to Toyota Motor Corporation. (Yen) Net income attributable to Toyota Motor Corporation per common share Basic Diluted

10 Consolidated Statements of Comprehensive Income FY2017 third quarter (Three months ended December 31, 2016) FY2018 third quarter (Three months ended December 31, 2017) (Yen in millions) Increase (Decrease) Net income 506, , ,861 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 563,916 47,759 (516,157) Unrealized gains (losses) on securities 286,339 39,293 (247,046) Pension liability adjustments 15,604 3,205 (12,399) Total other comprehensive income (loss) 865,859 90,257 (775,602) Comprehensive income 1,372,684 1,060,943 (311,741) Less Comprehensive income attributable to noncontrolling interests (61,567) (36,559) 25,008 Comprehensive income attributable to Toyota Motor Corporation 1,311,117 1,024,384 (286,733) 7

11 (3) Consolidated Statements of Cash Flows (Yen in millions) FY2017 first nine months (Nine months ended December 31, 2016) FY2018 first nine months (Nine months ended December 31, 2017) Cash flows from operating activities: Net income 1,496,830 2,083,655 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 1,174,743 1,280,923 Provision for doubtful accounts and credit losses 66,522 57,317 Pension and severance costs, less payments 28,370 10,990 Losses on disposal of fixed assets 20,493 29,293 Unrealized losses on available-for-sale securities, net 5, Deferred income taxes 33,654 (200,218) Equity in earnings of affiliated companies (258,002) (358,851) Changes in operating assets and liabilities, and other (407,207) (59,617) Net cash provided by operating activities 2,161,288 2,843,881 Cash flows from investing activities: Additions to finance receivables (10,055,887) (11,310,609) Collection of and proceeds from sales of finance receivables 9,491,446 10,494,113 Additions to fixed assets excluding equipment leased to others (860,918) (871,349) Additions to equipment leased to others (1,749,248) (1,750,068) Proceeds from sales of fixed assets excluding equipment leased to others 25,175 46,658 Proceeds from sales of equipment leased to others 917, ,071 Purchases of marketable securities and security investments (1,809,606) (2,190,010) Proceeds from sales of and maturity of marketable securities and security investments 1,400,215 1,927,388 Changes in investments and other assets, and other 481,892 (144,938) Net cash used in investing activities (2,159,208) (2,909,744) Cash flows from financing activities: Proceeds from issuance of long-term debt 3,218,047 3,547,901 Payments of long-term debt (2,844,726) (3,315,773) Increase in short-term borrowings 560, ,968 Dividends paid to Toyota Motor Corporation class shareholders (3,697) (6,194) Dividends paid to Toyota Motor Corporation common shareholders (634,476) (620,698) Dividends paid to noncontrolling interests (62,297) (63,727) Reissuance (repurchase) of treasury stock, and other (610,112) (233,260) Net cash used in financing activities (377,167) (213,783) Effect of exchange rate changes on cash and cash equivalents (13,555) 31,232 Net decrease in cash and cash equivalents (388,642) (248,414) Cash and cash equivalents at beginning of period 2,939,428 2,995,075 Cash and cash equivalents at end of period 2,550,786 2,746,661 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. 8

12 (4) Going Concern Assumption None (5) Significant Changes in Shareholders' Equity None 2. Other Information (1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries that caused a change in the scope of consolidation) None (2) Simplified accounting procedures and accounting procedures specific to quarterly consolidated financial statements Provision for income taxes The provision for income taxes is computed by multiplying income before income taxes and equity in earnings of affiliated companies for the first nine months by estimated annual effective tax rates. These estimated annual effective tax rates reflect anticipated investment tax credits, foreign tax credits and other items, including changes in valuation allowances, that are expected to affect estimated annual effective tax rates. (3) Changes in accounting principles, procedures, and disclosures for consolidated financial statements In July 2015, the Financial Accounting Standards Board ("FASB") issued updated guidance to simplify the measurement of inventory. The parent company and its consolidated subsidiaries ("Toyota") adopted this guidance on April 1, The adoption of this guidance did not have a material impact on Toyota's consolidated financial statements. In March 2016, the FASB issued updated guidance for effect of derivative contract novations on existing hedge accounting relationships. This guidance clarifies that a change in the counterparty to a designated derivative hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. Toyota adopted this guidance on April 1, The adoption of this guidance did not have a material impact on Toyota's consolidated financial statements. In March 2016, the FASB issued updated guidance for contingent put and call options in debt instruments. This guidance clarifies whether embedded contingent put and call options are clearly and closely related to the debt host when bifurcating embedded derivatives. Toyota adopted this guidance on April 1, The adoption of this guidance did not have a material impact on Toyota's consolidated financial statements. In October 2016, the FASB issued updated guidance for consolidation. Under this guidance, a reporting entity would evaluate its indirect economic interest in a variable interest entity held through a related party under common control on a proportionate basis. Toyota adopted this guidance on April 1, The adoption of this guidance did not have a material impact on Toyota's consolidated financial statements. 9

13 Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated) < U.S. GAAP > Vehicle Production (thousands of units) (Japan) - including Daihatsu & Hino FY2017 FY2018 FY2018 Forecast 1Q 2Q 3Q 9 months 4Q 12 months 1Q 2Q 3Q 9 months 12 months (2016/4-6) (2016/7-9) (2016/10-12) (2016/4-12) (2017/1-3) ('16/4-'17/3) (2017/4-6) (2017/7-9) (2017/10-12) (2017/4-12) ('17/4-'18/3) 2,149 2,240 2,240 6,629 2,347 8,975 2,216 2,176 2,266 6, ,059 1,013 3,006 1,104 4,109 1,023 1,039 1,100 3,162 [Daihatsu & Hino] [ 194 ] [ 215 ] [ 236 ] [ 645 ] [ 277 ] [ 921 ] [ 266 ] [ 260 ] [ 273 ] [ 799 ] (Overseas) - including Daihatsu & Hino 1,215 1,181 1,227 3,623 1,243 4,866 1,193 1,137 1,166 3,496 [Daihatsu & Hino] [ 86 ] [ 95 ] [ 114 ] [ 295 ] [ 105 ] [ 400 ] [ 92 ] [ 93 ] [ 90 ] [ 275 ] North America , , ,406 Europe Asia , , ,202 Central and South America Oceania Africa Vehicle Sales (thousands of units) (Japan) - including Daihatsu & Hino 2,172 2,191 2,280 6,643 2,327 8,971 2,215 2,175 2,289 6,678 8, , , ,639 2,250 [Daihatsu & Hino] [ 132 ] [ 146 ] [ 150 ] [ 429 ] [ 195 ] [ 623 ] [ 164 ] [ 162 ] [ 158 ] [ 484 ] [ 680 ] (Overseas) - including Daihatsu & Hino 1,661 1,624 1,746 5,030 1,666 6,697 1,671 1,632 1,737 5,039 6,700 [Daihatsu & Hino] [ 72 ] [ 70 ] [ 82 ] [ 223 ] [ 78 ] [ 302 ] [ 71 ] [ 75 ] [ 79 ] [ 224 ] [ 290 ] North America , , ,132 2,810 Europe Asia , , ,148 1,550 Central and South America Oceania Africa Middle East Other Total Retail Unit Sales (thousands of units) [Toyota, Daihatsu and Hino] Housing Sales (units) 2,529 2,538 2,645 7,712 2,539 10,251 2,590 2,626 2,631 7,847 10,300 1,185 1,611 1,282 4,078 6,243 10,321 2,312 5,399 2,699 10,410 16,300 Supplemental 1

14 Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated) < U.S. GAAP > FY2017 FY2018 FY2018 Foreign Exchange Rates Yen to US Dollar Rate Yen to Euro Rate Market Share (Japan) Toyota(excluding Mini-Vehicles) (%) Toyota, Daihatsu and Hino (including Mini-Vehicles) (%) Forecast 1Q 2Q 3Q 9 months 4Q 12 months 1Q 2Q 3Q 9 months 12 months (2016/4-6) (2016/7-9) (2016/10-12) (2016/4-12) (2017/1-3) ('16/4-'17/3) (2017/4-6) (2017/7-9) (2017/10-12) (2017/4-12) ('17/4-'18/3) as premise: 111 as premise: 129 approximately: 47.0 Number of Employees 354, , , , , , , , , ,883 (Note 1) Net Revenues (billions of yen) 6, , , , , , , , , , ,000.0 Geographic Information Japan North America 3, , , , , , , , , , , , , , , , , , , ,029.0 Europe , , ,312.0 Asia 1, , , , , , , , , ,825.9 Other , , ,854.0 Elimination Business Segment Automotive Financial Services -1, , , , , , , , , , , , , , , , , , , , , , ,510.1 All Other , ,149.9 Elimination Operating Income (billions of yen) , , , ,200.0 (Operating Income Ratio) (%) ( 9.7 ) ( 7.3 ) ( 6.2 ) ( 7.7 ) ( 5.9 ) ( 7.2 ) ( 8.1 ) ( 7.3 ) ( 8.9 ) ( 8.1 ) ( 7.6 ) Geographic Information Japan , ,111.1 North America Europe Asia Other Elimination Business Segment Automotive , , ,481.5 Financial Services All Other Elimination Income before Income Taxes (billions of yen) , , , ,450.0 (Income before Income Taxes Ratio) (%) ( 10.3 ) ( 7.7 ) ( 8.3 ) ( 8.8 ) ( 5.8 ) ( 7.9 ) ( 9.6 ) ( 8.0 ) ( 9.9 ) ( 9.2 ) ( 8.4 ) Equity in Earnings of Affiliated Companies (billions of yen) Net Income (billions of yen) , , , ,400.0 (Net Income Ratio) (%) ( 8.4 ) ( 6.1 ) ( 6.9 ) ( 7.1 ) ( 5.4 ) ( 6.6 ) ( 8.7 ) ( 6.4 ) ( 12.4 ) ( 9.2 ) ( 8.3 ) Dividends Common Shares Cash Dividends (billions of yen) (Note 3) Cash Dividends per Share (yen) Payout Ratio (%) Model AA Class Shares Cash Dividends (billions of yen) Cash Dividends per Share (yen) Value of Shares Repurchased (billions of yen)[actual purchase] Value of Shares Repurchased (billions of yen)[shareholder return] Number of Shares Canceled (thousands) Number of Outstanding Common Shares (thousands) Number of Outstanding Model AA Class Shares (thousands) (maximum) 75,000 75,000 75,000 (Note 6) 3,337,997 3,337,997 3,262,997 3,262,997 3,262,997 3,262,997 3,262,997 3,262,997 3,262,997 3,262,997 47,100 47,100 47,100 47,100 47,100 47,100 47,100 47,100 47,100 47,100 (Note 3) (Note 4) (Note 4) (Note 5) (Note 2) Supplemental 2

15 Supplemental Material for Financial Results for FY2018 Third Quarter (Consolidated) < U.S. GAAP > FY2017 FY2018 FY2018 Forecast 1Q 2Q 3Q 9 months 4Q 12 months 1Q 2Q 3Q 9 months 12 months (2016/4-6) (2016/7-9) (2016/10-12) (2016/4-12) (2017/1-3) ('16/4-'17/3) (2017/4-6) (2017/7-9) (2017/10-12) (2017/4-12) ('17/4-'18/3) R&D Expenses (billions of yen) Depreciation Expenses (billions of yen) Geographic Information , , (Note 7) Japan North America Europe Asia Other Capital Expenditures (billions of yen) Geographic Information , ,280.0 (Note 7) Japan North America Europe Asia Other Total Liquid Assets (billions of yen) 8, , , , , , , , , ,309.1 (Note 8) Total Assets (billions of yen) 44, , , , , , , , , ,216.4 Toyota Motor Corporation Shareholders' Equity (billions of yen) 16, , , , , , , , , ,996.4 Return on Equity (%) Return on Asset (%) Number of Consolidated Subsidiaries (including Variable Interest Entities) No. of Affil. Accounted for Under the Equity Method Analysis of Consolidated Net Income for FY2018 3Q 9 months (billions of yen, approximately) (2017/10-12) (2017/4-12) (Note 2) Effects of Marketing Activities Effects of Changes in Exchange Rates Cost Reduction Efforts From Engineering From Manufacturing and Logistics Increases in Expenses, etc. Other (Changes in Operating Income) Non-operating Income Equity in Earnings of Affiliated Companies Income Taxes, Net Income Attributable to Noncontrolling Interests (Changes in Net Income) (Note 2) 1 Translational impacts concerning operating income of overseas subsidiaries and concerning provisions in foreign currencies are included in "Effects of Changes in Exchange Rates". 2 Net income attributable to Toyota Motor Corporation for the third quarter and first nine months ended December 31, 2017 include reduction in income taxes of billion yen, which is mainly attributable to the reversal of deferred tax assets and liabilities resulting from the Tax Cuts and Jobs Act of 2017 of the United States. Supplemental 3

16 Supplemental Material for Financial Results for FY2018 Third Quarter (Unconsolidated) < Japan GAAP > Toyota & Lexus brand FY2017 FY2018 FY2018 Forecast 1Q 2Q 3Q 9 months 4Q 12 months 1Q 2Q 3Q 9 months 12 months (2016/4-6) (2016/7-9) (2016/10-12) (2016/4-12) (2017/1-3) ('16/4-'17/3) (2017/4-6) (2017/7-9) (2017/10-12) (2017/4-12) ('17/4-'18/3) Domestic Vehicle Production (thousands of units) Overseas Vehicle Production (thousands of units) Domestic Vehicle Retail Sales (thousands of units) Exports Vehicle Sales (thousands of units) , , ,363 3,200 1,494 1,422 1,477 4,393 1,498 5,891 1,464 1,420 1,435 4,319 5, , , ,157 1, , , ,401 1,850 North America Europe Asia Central and South America Oceania Africa Middle East Other Net Revenues (billions of yen) 2, , , , , , , , , , ,900.0 Domestic , , , , , ,976.9 Exports 1, , , , , , , , , ,071.1 Operating Income (billions of yen) ,100.0 (Operating Income Ratio) (%) ( 9.2 )( 4.1 )( 4.0 )( 5.6 )( 12.0 )( 7.3 )( 7.8 )( 7.4 )( 10.5 )( 8.6 ) ( 9.2 ) Ordinary Income (billions of yen) , , , ,080.0 (Ordinary Income Ratio) (%) ( 18.1 )( 13.4 )( 18.6 )( 16.7 )( 12.9 )( 15.7 )( 19.9 )( 17.6 )( 20.7 )( 19.4 ) ( 17.5 ) Net Income (billions of yen) , , , ,750.0 (Net Income Ratio) (%) ( 15.4 )( 11.6 )( 16.1 )( 14.4 )( 10.4 )( 13.3 )( 17.0 )( 15.0 )( 18.0 )( 16.7 ) ( 14.7 ) R&D Expenses (billions of yen) Depreciation Expenses (billions of yen) Capital Expenditures (billions of yen) Analysis of Unconsolidated Net Income for FY2018 (billions of yen, approximately) Effects of Marketing Activities Effects of Changes in Exchange Rates 3 Cost Reduction Efforts From Engineering From Manufacturing and Logistics Increases in Expenses, etc. Other 3Q 9 months (2017/10-12) (2017/4-12) (Changes in Operating Income) Non-operating Income Income Taxes, etc (Changes in Net Income) 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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting the automotive markets in Japan, North America, Europe, Asia 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, the Russian ruble, the Canadian dollar and the British pound, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota s ability to market and distribute effectively; (v) Toyota s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) 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 government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota s brand image; (x) Toyota s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, 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; and (xiv) the impact of natural calamities including the negative effect on Toyota s vehicle production and sales. 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. (Note 1) Shows the number of employees as of the end of each period (excluding loan employees from Toyota and its consolidated subsidiaries ("Toyota") to outside Toyota and including loan employees from outside Toyota to Toyota) (Note 2) Shows "Net income attributable to Toyota Motor Corporation" (Note 3) 2Q= Interim Dividend, 4Q= Year-end Dividend, FY= Annual Dividend (Note 4) Value of common shares repurchased (excluding shares constituting less than one unit that were purchased upon request) (Note 5) Value of common shares repurchased (shareholder return on Net Income for the period) (Note 6) Number of common shares canceled (Note 7) Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease (Note 8) Excludes financial subsidiaries 3 Translational impacts concerning provisions in foreign currencies are included in "Effects of Changes in Exchange Rates". Supplemental 4