FY2008 Financial Results

Transcription

1 FY2008 Financial Results Year ended March 31, 2008 April 25, 2008

2 I. Financial Summary

3 Financial Results (FY2008) 1 Increase in net sales and ordinary income for 9th consecutive year Billion yen 07/3 08/ % 1, ,000.5 (+186.9) (+10.3%) % (+8.8) (+10.1%) % (+20.7) (+19.7%) % (+22.2) (+38.2%) Figures in parentheses show the changes excluding the effects of changes in subsidiaries fiscal year-end

4 Earnings Forecast (FY2009) 2 Decrease in income expected due to material costs, U.S. economy, exchange rate and change in accounting policy (depreciation) Billion yen 08/3 09/3 2, , % % 15.4% 26.7%

5 Progress of Medium-Term Management Plan FY09 results to sustain performance Achieving medium-term targets, aiming for further growth Ordinary income , , ,050.0 billion billion Over 2 Trillion Net sales 1,505.9 Medium-term management plan 06/3 07/3 08/3 09/3 Forecast 11/3 Target 3

6 II. Growth Scenarios Automobile Car Air-Conditioning Compressor Vehicle Engine Car Electronics Materials Handling Equipment

7 1. Automobile Segment Business Environment 1. Global automobile market Market growth TICO s business fields will also expand Other Europe North America Market growth mainly in emerging countries High growth rates Stable growth in Japan, U.S. and European countries Large volume Car Air-Conditioning Compressor Accurately accommodate global market expansion Japan year x 2. Toyota (TMC) vehicle production volume Vehicle 7,360 8,090 8,530 thousand units Engine Car Electronics TMC production expanding Production of hybrid vehicles and diesel engine vehicles also increasing Contribute to TMC s growth strategy x year 4

8 1. Automobile Segment Car Air-Conditioning Compressor 1. Business environment Global automobile market Other Europe North America Japan New customers acquisition thousand units Unit sales 06/3 08/3 Toyota Group 7,110 8,060 Non-Toyota Group 12,000 13,800 Demand for car air-conditioning compressors Emerging countries Japan, U.S. and Europe Demand for a balance between performance and cost Demand for even greater fuel efficiency x year 2. Main activities up to the 2nd year of the Medium-Term Management Plan For future growth New customers Ford, Pugeot Increase in types of AC-equipped vehicles for existing customers 3. Toward further growth Expand sales and emphasize distinctiveness for new products that reflect customer needs Deploy new products in accordance with markets and vehicle characteristics Target: BRICs and compact cars in Europe At the forefront of new technologies New refrigerants Electrically driven compressors thousand units 21,860 22,000 20,460 19,110 Unit sales Strengthen global production structure TACG (U.S.), TDDK (Germany), TACK (China) x plan plan FY 5

9 1. Automobile Segment Vehicle 1. Business environment 3. Toward further growth TMC production volume Expand production worldwide 7,360 8,090 8,530 thousand units 3,900 4,310 Overseas 3,570 Japan 3,790 4,190 4,220 Fully utilize domestic production capacity Contribute to TMC in terms of volume and vehicle models Flexible response for vehicle models Be the leader among body manufacturers in terms of QCD x year 2. Main activities up to the 2nd year of the Medium-Term Management Plan For future growth Expand the number of models that can be produced From compact to medium-sized vehicles Unit sales 360 thousand units QCD No. 1 (Quality, Cost, Delivery) Vehicle shipment quality Good Continue to earn the Superior Quality Performance Award from TMC TICO Co. A Co. B Co. F x plan plan FY 6

10 1. Automobile Segment Engine 1. Business environment 3. Toward further growth TMC production volume Diesel engines Environmental regulations Soaring crude oil prices Firmly respond to the expanding market for clean diesel engines x Year Engine unit production will also increase along with increase in vehicles Automakers accelerate development and sales Daimler: 2006 Japan 2008 North America (planned) Volkswagen 2009 Japan (planned) Honda 2009 and beyond North America, Japan (planned) Develop next-generation clean diesel engines Timely strengthening of production capacity Consigned production in response to burden on TMC s domestic production volume Unit sales 2. Main activities up to the 2nd year of the Medium-Term Management Plan For future growth thousand units Development of clean diesel engines AD type (2005), VD type (2007) Received FY08 Technology Development Award from TMC Strengthen development structure (increase testing facilities and personnel) x plan plan FY 7

11 1. Automobile Segment Car Electronics 1. Business environment 3. Toward further growth Hybrid vehicle market Worldwide TMC 2,350 3,130 Expansion of vehicle models fitted with DC-DC converters Market for hybrid vehicles, centering on Toyota vehicles, is expanding thousand units x year 2. Main activities up to the 2nd year of the Medium-Term Management Plan For future growth Received FY08 Technology Development Award from TMC Establish technologies to reduce costs through more compact and lighter system Develop devices for plug-in hybrid vehicles Charger Exhibited at Tokyo Motor Show 2007 Build a mass production structure at the new Anjo plant Billion yen Net sales Prius (97~) Harrier Hybrid (05~) Camry Hybrid (06~) Lexus LS600h (07~) Strengthen relationships by offering development proposals for TMC x plan plan FY 8

12 2. Materials Handling Equipment Segment 9 Business environment Lift truck markets Australia, Asia, Others Europe thousand units Moderate growth North America Japan forecast 10 1x Year Japan North America Europe Australia, Asia, Others 400,000 units 200,000 units 240,000 units 90,000 units Virtually Virtually Russia and Eastern Large expansion Europe drive centering on China the same level the same level expansion and India

13 2. Materials Handling Equipment Segment 10 Main activities up to the 2nd year of the Medium-Term Management Plan For future growth Europe Enhance sales/services by integrating sales channels (20 countries) Strengthen production capacity of Sweden plant Raise share of investment in TIESA Russia Expand sales via cooperation with Japanese trading companies North America Introduce TPS through TMHMNA (which coordinates North American production) Establish a subsidiary for stable supplies of key components (hydraulic valves) India Commence sales of lift trucks at KTTM (subsidiary) Establish sales bases in Delhi, Mumbai and Coimbatore China Enhance sales/services by integrating sales channels Expand production capacity at TIK (subsidiary) Japan Strengthen production capacity by eliminating bottleneck processes Establish TMHG training center Establish a subsidiary for stable supplies of key components (counterweights) Develop key components Joint development through TMHG Consolidate sales functions into the Takahama Plant Worldwide Brazil Enhance sales/services by integrating sales channels Undertake full model changes for 1- to 3-ton internal combustion lift trucks Promote initiatives for development, production, sales and service that consider regional characteristics

14 2. Materials Handling Equipment Segment Toward further growth Based on measures implemented up to the previous fiscal year, we will strive to expand sales at a rate exceeding market growth and raise profit margins Expand sales at a rate exceeding market growth Raise profit margins Europe Maximize benefits of channel integration North America Australia, Asia, Others Japan Utilize respective strengths of TOYOTA and Raymond brands Strengthen sales activities that respond to higher demand China, India Strengthen sales and service networks Create new markets through proposal-based sales and BT-brand products Standardization of key components Development Optimal production/supply structure (respond to fluctuations in demand in each region) Strengthen presence in existing markets and expand sales networks in emerging markets Unit sales thousand units Accelerate synergies between TOYOTA and BT brands x plan plan FY 11

15 III. Initiatives for the Environment and Human Resources Development

16 Environment Global Environmental Commitment Action policies Realize environmental management throughout the entire Toyota Industries Group Fourth Environmental Action Plan ( ) Curbing global warming Recycling resources Reducing environmental risk factors Consolidated environmental management (1)Air-jet loom (Feb. 2003) Air consumption reduced 50% Initiatives in product fields (2)Internal combustion lift truck (Sep. 2006) Fuel consumption reduced 14% (3)DC-DC converter for electric power steering (Apr. 2007) Equipped on the LEXUS LS600h Lead content reduced 69% Previous model New model Previous model New model Previous model New model 12

17 Environment Production initiatives Incorporating environmental measures from the plant construction stage Cooling tube (summer) For air conditioning External air intake Solar power Wind power Rooftop greening Underground pre-cooling Well water pre-cooling Mirror Duct System Award from Director of Chubu Regional Bureau FY08 Captures sunlight and used in offices Promoting energy efficiency by improving production processes Introduce new methods for automobile painting process Eliminate post-processes (car wash process) by introducing new knife-cut process Japan Environment Management Award (FY08) Environmental Project Award Minister s s Award for Excellent Examples of Energy Conservation Electro coating Drying Intermediate coating Drying Wet sanding Washing Drying Cooling Top coating Drying Reduction of CO 2 emissions by reducing the use of cast iron 13

18 Human Resources Development Specialized Techniques Spirit of Harmony Management Techniques Raising overall capabilities Nurturing a sense of solidarity and teamwork Discovering problems and making improvements We stress learning from mistakes and provide training using case examples, beginning with learning design concepts of Sakichi Toyoda through assembly of the Type G automatic loom. Nurturing experts We promote close communication through on-the-job training by senior employees via programs such as the stewardship program. We cultivate human resources capable of promoting manufacturing by gathering people from each business division at our TPS Dojo and carrying out continuous improvement activities. Acquiring leadership abilities Earned Earned gold gold medal medal at at International International Skills Skills Festival Festival for for All, All, Japan Japan (Nov. (Nov. 07) 07) Won gold medal as Japan s representative in the mechanical assembly category At our Technical Learning Center, we nurture Top Guns in manufacturing by thoroughly teaching leading-edge technologies and skills. Won Won three three gold gold medals medals at at National National Skills Skills Competition Competition Mar. Mar. 08) 08) Seven individuals and two teams competed in five skills categories, winning three gold medals, three silver medals and one bronze medal. We foster the ability to become leaders through such training as teaching work responsibilities in an easily understood and precise manner and creating good human relationships and dynamic workplaces filled with vitality. 14

19 IV. Financial Results

20 Financial Results (FY2008) 15 Increase in net sales and ordinary income for 9th consecutive year Billion yen 07/3 08/ % 1, ,000.5 (+186.9) (+10.3%) % (+8.8) (+10.1%) % (+20.7) (+19.7%) % (+22.2) (+38.2%) Figures in parentheses show the changes excluding the effects of changes in subsidiaries fiscal year-end

21 Net Sales by Segment (FY2008) Increase in net sales in all segments Billion yen ( , Vehicle /3 1, Engine ( ) Compressor 08/3 2, /3 08/ /3 08/3 Automobile Materials Handling Equipment Logistics Textile Machinery Others Excluding the effects of changes in subsidiaries fiscal year-end, net sales totaled billion, an increase of 80.6 billion yen. 16

22 Operating Income by Segment (FY2008) Increase in operating income in Automobile, Logistics and Textile Machinery segments Billion yen 07/3 ( + 6.9) 08/ ( /3 08/3 Automobile Materials Handling Equipment ) 4.2 Logistics Textile Machinery Excluding the effects of changes in subsidiaries fiscal year-end, operating income totaled 45.3 billion, a decrease of 5.5 billion yen Others 17

23 Change in Ordinary Income (FY2008) Cost-reduction efforts and sales expansion offset increase in depreciation and material costs Year-on-year comparison (FY07 and FY08) YoY 18.0 billion yen Depreciation Expenses and others Labor costs Material costs Non-operating income Exchange rates Change in subsidiaries fiscal year-end Sales increases Billion Cost reductions 07/3 08/3 18

24 Earnings Forecast (FY2009) 19 Decrease in income expected due to material costs, U.S. economy, exchange rate and change in accounting policy (depreciation) Billion yen 08/3 09/3 2, , % % 15.4% 26.7%

25 Net Sales by Segment (FY2009 Forecasts) Increase in net sales in Material Handling Equipment and Logistics segments Billion yen ( , Vehicle /3 2, Engine ( ) Compressor 09/3 2, /3 09/3 Forecast /3 09/3 Forecast Automobile Materials Handling Equipment Logistics Textile Machinery Others 20

26 Change in Ordinary Income (FY2009 Forecasts) Decrease in profits due to marterials costs, exchange rate and change in accounting policy (depreciation) Billion yen Cost reductions Year-on-year comparison (FY08 and FY09) 8.0 Sales increases 0.4 Non-operating income Material costs Exchange rates -9.3 Depreciation (YoY 19.4 billion yen) -5.0 Labor costs -4.5 Expenses and others /3 09/3 Forecast 21

27 Capital Expenditures and Depreciation Billion yen / Capital expenditure 83.7 Depreciation /3 07/3 08/3 09/3 Forecast Billion yen 50 Breakdown of capital expenditures /3 08/3 09/3 Forecast Compressor Vehicle/Engine Material Handling Equipment Foundry/ Electronics Others 22

28 Cash Dividends and Payout Ratio Annual cash dividends of 60 yen, an increase of 10 yen (08/3, 09/3) Consolidated payout ratio Yen Dividends per share Year-end Interim 05/3 06/3 07/3 08/3 09/3 Forecast 23

29 Cautionary Statement with Respect to Forward-Looking Statements This presentation contains projections of business results as well as statements regarding business plans, forecasts, strategies, and other forward-looking statements that are not to be taken as historical fact. Projections and forward-looking statements are based on the current expectations and estimates of Toyota Industries and its Group companies. All such projections and forward-looking statements are based on management s assumptions and beliefs derived from the information available to it at the time of producing this report and are not guarantees of future performance. You should also be aware that certain risks and uncertainties could cause the actual results of Toyota Industries and its Group companies to differ materially from any projections or forwardlooking statements appearing in this report. These risks and uncertainties include, but are not limited to, the following: 1) economic trends, 2) various competitive pressures, 3) changes in relevant laws and regulations, and 4) fluctuations in exchange rates.