Toyota Motor (TM) 4 Nov 212022 Q2 Earnings call transcript

Thank you, everyone, for joining us despite your busy schedules. We would now like to begin Toyota Motor Corporation's FY 2022 Second Quarter Financial Results Press Briefing. Starting by introducing our presenters today, Chief Financial Officer, Kenta Kon; Chief Communication Officer, Jun Nagata. We would now like to begin by having our CFO, Mr. Kon, explain about the financial results.

everyone. Hello, joining for today. us you Thank Kon. I am Kenta and appreciation We our of chose as shareholders, heartfelt us. the would to express us, dealers our as like to well who stakeholders, who support all world our suppliers including around customers inconvenience for to reduction. to our We the the customers production recent sincerely caused apologize volume due

spread semiconductor your of to globally. plants like The to caused would to production working soon and made of the are to fiscal I quarter shortage production We this developing to as us possible. countries efforts cars COVID-XX in But some our a summary reduce our possible. understanding. customers as supply great and volume recover Thank as many second of you suppliers, for as provide year. our dealers

fiscal product the our investing cars making make more and for first reflect reduction and costs the fixed appeal for the of growth. of half while efforts year activities results enhancing by efficient to cost enhanced better Our ever use

have higher these We market results led incentives. yen, the increases due certain believe would the has Even of high made forecast and revision have revised and the material our the be this our upwards, as of downward respects new operating supply in raw a to in quantum tightening to excluding the underlying be it beyond though in costs. car to us of depreciation income demand to car prices robust We substance strength. we allowed decrease have in the benefited our factors used also from impact

learned from to operation our what COVID-XX. improving have we keep will We standardize

is JPY the per to shareholders, previous XX JPY XXX of year. an terms In share, our of to fiscal interim the compared increase ordinary return dividend

our decided also repurchase up billion to XXX JPY of stock. have conduct of common We to a

The the sales X,XXX,XXX was of Let the of XXX.X% the factors year. Lexus year before vehicle revenues of X,XXX.X for the year. previous income X,XXX,XXX of consolidated billion, income fiscal of was which vehicle billion operating first was JPY were results half for which of fiscal impacted ended our X,XXX.X vehicle I operating first income billion. like fiscal ratio JPY Consolidated was units, financial the XX.X%. the electrified X,XXX.X Toyota for half net this such of was JPY financial at of sales to sales the sales Consolidated XXXX. income units, discuss period half for previous results XX,XXX.X for vehicles explain of half year-on-year. and first which September of JPY first sales the and at me income brand would taxes XXX.X% billion,

effects rates exchange of operating XXX JPY income First, foreign billion. by the increased

decreased prices. income impact by Second, cost operating reduction JPY soaring billion to due efforts of material the XX

the income by financial increased to the due efforts Third, X,XXX operating in marketing billion business. services sales increased JPY increase volume and largely in earnings

a in billion. income reduction by JPY Finally, expenses operating increased XX

exchange by other As excluding gains billion of income a increased impact and valuation the losses and X,XXX year-on-year. foreign rates, factors, JPY result, swap overall operating

region. for explain Next, I each will operating income

year-on-year sales increased due in income all operating largely the increase in shown, As volume. regions to

of the business, due China share operating accounted the equity using investments our of consolidated for the profit method of As subsidiaries of and to our for impact exchange income increased rates. foreign

lending mainly losses in due the the to balance Regarding margins. for and income the swap increase fiscal increased gains financial Operating year and services. valuation excluding year-on-year

XX hold sustainably to year, compared payout explain we maintain our to to as shares of shareholders. decided this the improved dividends mid the our of like well pay first fiscal shareholders would the dividend to as Based results to I an Next, long to of We JPY ratio on year. increase intend pay interim per and an the for to XXX to business continue who share, long half return term JPY over term. fiscal to over consolidated stably previous dividend reward mid the our

In current as up in dividend addition, billion period, we will consideration repurchase the interim shares to and such investments factors into growth taking areas own JPY levels. of XXX our for

forecasts Next, breakdown I sales the forecast. XX, the will fiscal in expected presentation. is vehicle explain stated be XX.X% year Regional as the million is for units, which Consolidated XXXX. March ending to X.XX the previous sales of is

units, As which previous brand we anticipate of sales the X.X be that vehicle for sales, Lexus forecast. is and Toyota vehicle will XX.X% million

me explain consolidated financial full the performance. let the year Next, forecasts for

performance euro, per dollar We JPY have and the per full JPY XXX on XXX euro. dollar year ForEx adopted of XXX JPY assumptions per onwards JPY rate makes and October of per which assumptions for Based forecasts XXX X,XXX for and income financial income trillion, consolidated are: JPY full operating our of before revenues XX JPY JPY billion, billion. year of income billion sales net of JPY of taxes X,XXX income X,XXX this,

and to the been in to the previous has XXX forecast the assumptions, to income previous operating I fiscal increase the of compared the income presentation. The forecast, due by operating costs. shown income The income operating into period to Next, decrease revision increase impact FX would the operating revised are the the that due like reflecting the same forecast. impact compared account factors explain operating JPY billion the year-on-year from weaker income previous that in upward taking in year to as raw will factors yen in material of

lessons continue you establish stabilization issues as Although in such the will rise to the attention. for future continue to sharp learned to conditions of material well your costs, Thank towards regard from we crisis. with raw as we work unpredictable supply the and as the COVID-XX face the

please. Yomiuri Newspapers, [Operator [Operator Katori from Mr. Instructions] Instructions]

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like hear changes, that maybe this the first half do ended a but assessment Especially and some the performance, record would from think I summary. it's to for I there First, your past income, high has been operating history.

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will our from questions those responded CFO, of both So be Mr. Kon.

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results, assessments, if can comments presentation the the this this And look second in thank is quarter addition make Regarding third page additional on at we summary. material, the like half some the the to to page. first This of – you. I’d

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From [Masatoshi], Kogyo Shimbun, take We'd you, please. Ms. Shiraki. the question. to Thank Nikkan Ms. next like

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Thank [Masatoshi]. question, you for your very much Ms.

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Thank you time. now scheduled is so the much, [Masatoshi-san]. It

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