TMC Announces First Quarter Financial Results

(All consolidated financial information has been prepared in accordance with
U.S. generally accepted accounting principles)

Toyota City, Japan, August 5, 2014—Toyota Motor Corporation (TMC) today announces its financial results for the first quarter ended June 30, 2014.

Consolidated vehicle sales for the first quarter totaled 2,241,285 units, an increase of 9,426 units compared to the same period last fiscal year. On a consolidated basis, net revenues for the period totaled 6.39 trillion yen, an increase of 2.2 percent compared to the same period last fiscal year. Operating income increased from 663.3 billion yen to 692.7 billion yen, while income before income taxes¹ was 771.8 billion yen. Net income² increased from 562.1 billion yen to 587.7 billion yen.

Operating income increased by 29.3 billion yen. Major factors contributing to the increase included cost reduction efforts of 40.0 billion yen and currency fluctuations of 30.0 billion yen.

Commenting on the results, TMC Managing Officer Takuo Sasaki said: “In addition to cost reduction efforts and favourable foreign exchange rates, valuation gains and losses mainly from interest-rate swaps were positive factors. However, changes in model mix and increases in expenses impacted us negatively. ”

In Japan, vehicle sales totaled 505,827 units, a decrease of 19,950 units. Operating income decreased by 90.1 billion yen to 365.9 billion yen.

In North America, vehicle sales totaled 710,409 units, an increase of 21,753 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 46.1 billion yen to 149.7 billion yen.

In Europe, vehicle sales totaled 207,481 units, an increase of 14,970 units, while operating income increased by 5.6 billion yen to 10.8 billion yen.

In Asia, vehicle sales totaled 385,376 units, a decrease of 9,490 units, while operating income increased by 6.2 billion yen to 110.3 billion yen.

In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totaled 432,192 units, an increase of 2,143 units, while operating income decreased by 8.4 billion yen to 34.0 billion yen. 

For the financial services, operating income increased by 46.9 billion yen to 98.2 billion yen, including a gain of 16.1 billion yen of valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income increased by 3.8 billion yen to 82.0 billion yen.

For the fiscal year ending March 31, 2015, TMC estimates that consolidated vehicle sales will be 9.1 million units, as announced in May.

In addition, TMC forecasts consolidated net revenue of 25.7 trillion yen, operating income of 2.3 trillion yen and net income of 1.78 trillion yen, based on an exchange rate assumption of 101 yen to the U.S. dollar and 136 yen to the euro.

(Please see attached information for details on financial results. Further information is also available at www.toyota-global.com)

Cautionary Statement with Respect to Forward-Looking Statements

This release contains forward-looking statements that reflect Toyota's plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyota's 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, but are not limited to: (i) changes in economic conditions, market demand, and the competitive environment affecting, the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (xiv) the impact of natural calamities including the negative effect on Toyota’s vehicle production and sales.

A discussion of these and other factors which may affect Toyota's actual results, performance, achievements or financial position is contained in Toyota's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.