On a consolidated basis for FY2010, ended March 2010, vehicles sales were down 330,000 units, to 7,237,000 units, and net revenues declined 7.7%, to 18,950.9 billion yen, and yet, operating income increased 608.5 billion yen to 147.5 billion yen, and net income increased 646.4 billion yen to 209.4 billion yen. As a result, Toyota was able to report profits in both operating income and net income. In response to the severe business climate in FY2010, all dealers and suppliers worked hard to deliver as many vehicles as possible to customers, and all overseas affiliates and employees made continuous, concerted cost-reduction efforts, particularly in the reduction of fixed costs, and the company was able to improve revenue by 1,690 billion yen and lower its break-even point. Toyota will continue its efforts to make further improvements beyond FY2011, ending in March 2011.
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Markets continued to expand in China, India and other emerging countries. At the same time, overall market conditions in developed countries were adversely affected by changes in the market structure, namely, a shift in consumer demand toward compact and low-priced vehicles, despite government efforts to stimulate demand. Consolidated vehicle sales decreased by 242,000 units (3.4%) from the previous fiscal year, to 6,809,000 units.
Consolidated vehicle sales both in Japan and overseas decreased by 330,000 units, or 4.4%, to 7,237,000 units in FY2010 compared to FY2009 (April 1 through March 31, 2009). Vehicle sales in Japan increased by 218,000 units, or 11.2%, to 2,163,000 units in FY2010 compared with FY2009, primarily as a result of the introduction of new products and the efforts of dealers nationwide. Market share for Toyota and Lexus brands, excluding mini vehicles, was 48.2%, both figures representing a record high. Meanwhile, overseas vehicle sales decreased by 548,000 units, or 9.7% in FY2010 compared to FY2009, because of reduced sales in Europe and other regions, notwithstanding sales expansion in Asia.
Vehicle Production by Region
Vehicle Sales by Region
Net Revenues and Operating Income
Net revenues in Japan decreased by 966.4 billion yen, or 7.9%, to 11,220.3 billion yen in FY2010 compared with FY2009. However, operating loss decreased by 12.3 billion yen to 225.2 billion yen in FY2010 compared to FY2009. The decrease in operating loss was mainly due to cost reduction efforts and reductions in fixed costs, in spite of the effects of changes in exchange rates and decreases in both production volume and vehicle exports.
Net revenues in North America decreased by 552.4 billion yen, or 8.9%, to 5,670.5 billion yen in FY2010 compared to FY2009. At the same time, operating income increased by 475.6 billion yen to 85.4 billion yen in FY2010 compared to FY2009. The increase in operating income was mainly due to decreases in the provision for credit losses, net charge-offs and allowances for residual value losses, as well as valuation gains recorded on interest rate swaps stated at fair value by sales finance subsidiaries, a reduction in fixed costs and other cost reduction efforts.
Net revenues in Europe decreased by 866.1 billion yen, or 28.7%, to 2,147.0 billion yen in FY2010 compared to FY2009. Operating loss decreased by 110.3 billion yen to 33.0 billion yen in FY2010 compared with FY2009. The decrease in operating loss was mainly due to reductions in fixed costs and other cost reduction efforts, despite decreases in both production volume and vehicle unit sales.
Net revenues in Asia decreased by 64.0 billion yen, or 2.4%, to 2,655.4 billion yen in FY2010 compared to FY2009. Meanwhile, operating income increased by 27.5 billion yen, or 15.6%, to 203.6 billion in FY2010 compared with FY2009. The increase in operating income was due mainly to increases in both production volume and vehicle unit sales.
Other (Central and South America, Oceania and Africa):
Net revenues in other regions decreased by 209.1 billion yen, or 11.1%, to 1,673.8 billion yen in FY2010 compared to FY2009. However, operating income increased by 27.9 billion yen, or 31.9%, to 115.5 billion yen in FY2010 compared to FY2009.
Net Revenues and Operating Income by Geographic Segment (Figures for net revenues include intra-region net revenues)
Net income totaled 209.4 billion yen. ROE on a consolidated basis was 2.1%.
Net Income and ROE
Toyota made an effort to invest more effectively, focusing on mid- and long-term strategic fields such as hybrid vehicles and environment-considering vehicles, while at the same time reviewing current investment strategies and subsequently postponing or scaling down new construction projects and other capacity-expansion initiatives. As a result of these measures, the consolidated capital expenditure for FY2010 totaled 579.0 billion yen.
Capital Expenditure and R&D Expenses