Toyota Motor (TM) 1 Nov 222023 Q2 Earnings call transcript

Thank you very much for participating in this financial results announcement despite your occupied schedule. We would like to start the presentation on the financial year 2023 second quarter financial results.

First of all, let me introduce to you the participants from TMC, Executive Vice President, Chief Financial Officer, Kenta Kon. Chief Communication Officer, Jun Nagata. The Chief Officer for Accounting Group, Masahiro Yamamoto. Group, Purchasing of Officer Kazunari Kumakura. Chief Chief Deputy Officer, Production Nakamura. Yoshio Department, And

ladies all, of the of gentlemen, financial will Now first you Yamamoto and share with results. outline

around heartfelt the would as to well would dealers support to We like express who for you this shareholders, who waiting vehicles. our suppliers And to our financial customers us like our But customers us. at the and as appreciation the to are in world results chose appreciation I apologize sincerely caused participating for same who those for we are our of who inconvenience time, announcement. their express

We are possible. as soon deliver working them as to

First, billion, as the the half more. is the rates, let second such first the ending the changing rate, a operating dramatically of changes and result quarter raising of materials income of for interest business fiscal soaring was me environment ¥X,XXX.X of March exchange foreign provide summary rapid year XXXX. The prices

due costs of our dealers, constraints South in we with hard production the to semiconductors, worked Africa, and order et our customers. low due production possible to as in Shanghai, prices in continue from soaring depreciation positive the to materials yen. as and decreased income deliver effects suppliers Operating sites flood many While onetime lockdown cetera, a the despite to supply the cars of

remained from ¥X,XXX previous the unchanged it forecast, anticipate forecast, year billion. of full operating we the income for As so

such million the our semiconductors. taking revised procurement forecast We have risks to by vehicle production as units, units downward into consideration XXX,XXX X.X of

situation in environment. due though predict throughout to we profit to is difficult future even to the chain, with rapid in continue activities it their structure will our business changes which We are the in a the supply strengthen

an terms of compared return year. ¥X the increase share, is the per shareholders, previous dividend fiscal In to interim ¥XX of to

full ¥XXX make amount set billion manner. share We a in of flexible the to have aside repurchase

of units. covering XXXX ended the vehicle fiscal X,XXX,XXX fiscal from to That which XXX.X% such Lexus from for period the and previous the our sales is period previous at of was April was the sales financial X,XXX,XXX the September me XX.X% of the first of September. results explain units, Consolidated was year. same X Let the Toyota for year. same half vehicle months period sales

income the And sales from for sales in the the volume sales billion. were like breakdown, results regional year-on-year. countries to of others before sales such quarterly and the As production regions Operating ¥X,XXX.X of billion. COVID-XX. income Income income revenue of financial as of the in net developed impact Consolidated but billion. to volume recovery operating which Asia ¥X,XXX.X increased due due impacted constraints, to taxes ¥XX,XXX.X €X,XXX factors billion. explain income, would I decreased

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

reduction operating billion, for billion. cost Second, the due to material efforts impact largely ¥XXX income of which soaring account ¥XXX by decreased prices,

marketing Third, by ¥XXX Fourth, income by decreased billion. expenses in income billion. operating an increase efforts ¥XXX increased operating

Russia. to costs valuation in terminate we ¥XXX Lastly, a negative largely of incurred swap our impact losses billion, and to due production also

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

positive despite ¥XXX.X by of material in prices. marketing Japan for the soaring billion America from soaring ¥XXX.X decreased production of to rates by cost due region. income effect Let foreign negative increased the to Europe due expenses. efforts. and effects me billion the the operating by explain prices year-on-year Russia billion ¥XX.X despite effects material the North also terminating in increase our from each prices due materials decreased soaring exchange our to and

well explain effects year-on-year decreased the by as China slide, regions ¥XX.X billion. let Financial billion Asia due me as Services. by to next foreign In business Other ¥XX.X of the increased exchange. in the

accounted and exchange for sales dividend business rates, and stably business, our increase exchange sales China, equity increased an decrease and per we ratio the assets increase term. of operating in effects substantially of to largely as impact of consolidated payout decreased ¥X longer in investment an of to income volume operating of by of of shareholders and well to Services and midterm foreign reward The to our foreign hold increased over the the others. profit order we ¥XX our respect rates. shares to With to sales year mainly continue Financial the income decided because volume, who in share, due pay dividend due increase while earning return, improve As here to maintain consolidated for this in the to our subsidiaries method as year-on-year, intend year-on-year interim

Now of let volume, me forecast. year Motors forecast the March the revenue the operating Please income Hino for fiscal included that and explain XXXX. ending sales in this numbers note from are

for and forecast Toyota Let me production explain Lexus. the vehicle

units as waiting a million seen worked our their for cars time customers suppliers deliver and delivered. long have order for to sites as and a cars have possible the as X.X plan of possible with who production soon high many production to We to in be hard as been

semiconductors. the is predict However, revise from our intend XXX,XXX to million it's effort X.X We down to and continue forecast. together to every still all production make and to previous which risks by Therefore, units units, our future sites. such we difficult possible suppliers decided countermeasures to with as due consider plan of the procurement to

breakdown units. in the volume, X.X sales by XX,XXX Regional our now vehicle consolidated downward sales For units forecast forecast, previous stated presentation. have revised as the anticipate from we is we million and

vehicles, units. the As new units XXX,XXX the downward for the forecast have previous million Lexus and sales revised by from we is Toyota and our forecast ¥X.X volume for forecast

financial Let me explain the full year consolidated forecast.

assumption billion, on foreign quarter, ¥X,XXX based the U.S. the full per which ¥XXX and the The October rate average income taxes ¥XXX adopted Based of operating exchange income euro. before dollar foreign and sales X-month year euro. of rate this, exchange of net ¥XXX second billion at revenue the have We per assumption trillion, on for U.S. of for onwards makes forecast ¥XX per consolidated full rate our billion. of per foreign for exchange ¥X,XXX of year dollar ¥X,XXX is performance are financial a income and both rate

the let may Now explain to income factors impact operating me that forecast. as previous compared the

effect rates income will increase First, foreign the billion. of ¥XXX exchange the by operating

cost Second, by reduction income billion. will efforts ¥XX increase operating

the decrease sales sales operating marketing of worsening by in mix. ¥XXX due decrease effects from will billion supply volume to constraints Third, of and the activities income

cost production in issues ¥XX negative Lastly, we also Russia. terminate of believe billion operating to and income to impact our the we incur a due will on swap that valuation

compared have The As the of forecast we factors the income we income impact the year kept expect from a operating fiscal previous unchanged are operating period result, shown income previous -- that as in presentation. same to forecast. the to

predict rapid structure. in makes Although due it difficult business to in a activities the to future continue situation that environment, the our changes will strengthen profit we we are to

performance EVP results related Toyota Today's X the to Kon, past months. over of financial speaking. the announcement

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rose since had However, recently. Japanese the environment ¥XXX end from has XXXX yen last rate, ¥XXX exchange in dollar rapidly ¥XXX The long U.S. the which between changed and stable dollar, significantly and ¥XXX March half to the at year. to remained

the materials shown price, worldwide the XX-year X.X% to labor as from energy are and and fluctuating. U.S. While risen yield has well government as of Also, slide, situation, rapidly X.X%. as significantly in bonds the

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last Now Kogyo, switch from Masatoshi-san, let Nikkan us move screens. question on the to will we the

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busy Masatoshi. Thank for much meeting. you financial results your schedules. With Mr. very this, to Thank listening the despite you much very conclude we