May. 16, 2001

Toyota Reports Record Year-end Results
Increased Localized Production, Successful
Product Launches Play Key Role

(All financial information has been prepared in accordance with Generally Accepted
Accounting Principles in Japan)

 

Tokyo--TOYOTA MOTOR CORPORATION (TMC) today announced record operating results for the fiscal year ended March 31, 2001.

On a consolidated basis, net sales for the 12 months ended March 31, 2001, increased 4.2 percent year-over-year to 13.4 trillion yen, an all-time high. Operating income hit a new peak at 870.1 billion yen, an increase of 12.1 percent versus the same period last year, while ordinary income rose 22.0 percent to a highest-ever 972.2 billion yen. Net income climbed 15.9 percent to 471.2 billion yen, also a record. Earnings per share for the year were 127.88 yen, an increase of 17.93 yen over the fiscal year ended March 31, 2000.

Unconsolidated net sales for the period were 7.9 trillion yen, an increase of 6.7 percent versus the same period last year. Operating income increased 3.0 percent to 506.8 billion yen, while ordinary income was 621.7 billion yen, up 14.8 percent. Net income totaled 333.5 billion yen, up 1.3 percent.

TMC also announced a second-half cash dividend for the six months ended March 31, 2001, of 14 yen per share. Total dividend payout for the full year was 25 yen per share, an increase of 1 yen per share over the previous year.

Commenting on the results, TMC President Fujio Cho said, "Toyota's record performance is a reflection of our ongoing commitment to meet the needs of a wide variety of customers. Our aggressive product launch strategy helped increase our market share in Japan to 43.1 percent, excluding mini-vehicles, an all-time high.

"At the same time, we continue to benefit from increased local production. In January, we began manufacturing the Yaris (known as the Vitz in Japan) at our new plant in France. In North America, we announced a number of additional expansions throughout the year, including a new V8 engine plant."

He concluded, "We believe these strategies, along with a continued focus on cost reduction and the maximization of the total power of the Toyota Group, will serve us well as we strive to be a leading global company in the 21st century."

For the fiscal year ending March 31, 2002, TMC envisions* unconsolidated sales of 8.0 trillion yen, ordinary income of 630.0 billion yen and net income of 370.0 billion yen.
* Based on an exchange rate of 115 yen to the dollar and 105 yen to the euro.

(Please see attached information for details on consolidated and unconsolidated results. Further information is also available on the Internet at www.toyota.co.jp)
Cautionary Statement with Respect to Forward-Looking Statements
This release contains forward-looking statements that reflect our plans and expectations. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our 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: (a) changes in economic conditions affecting the automotive markets in Japan, North America, Europe and other markets in which we operate; (b) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the United States dollar and the euro; (c) our ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (d) changes in the laws, regulations and government policies affecting our automotive operations, particularly laws, regulations and policies relating to environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies affecting our other operations, including our telecommunications operations and the outcome of future litigation and other legal proceedings; (e) political instability in the markets in which we operate; (f) our ability to timely develop and achieve market acceptance of new products; and (g) fuel shortages or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to or difficulties in the employment of labor in the major markets where we purchase materials, components and supplies for the production of our products or where our products are produced, distributed or sold. A discussion of these and other factors which may affect our actual results, performance, achievements or financial position is contained in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section and elsewhere in our annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.