You are on page 1of 124

Annual Report 2013

Year ended March 31, 2013

True Competitiveness for Sustainable Growth

Unveiled in March 2011, the Toyota Global Vision is an articulation of the kind of company we want to be. It clarifies our values; we want to be a company that people choose and to bring a smile to the face of every Toyota customer. Supported by a virtuous cycle that entails making ever-better cars, enriching communities, and ensuring a stable base of business, we will continue to pursue sustainable growth through our Global Vision.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

03
Ne x t

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

04 President’s Message

07 Making Ever-Better Cars
Special Feature I

17

Special Feature II

Enriching Lives of Communities

20 Stable Base of Business
Special Feature III

“Rewarded with a smile by exceeding your expectations,” all 330,000 of us at Toyota around the world work together as one to make ever-better cars and to contribute to society.

The global financial crisis that began in 2008 reminded us once again that the foundation of sustainable growth is making cars that customers love. We changed direction, recommitting all of our resources to making even better cars, and over the course of the following four years we significantly improved our manufacturing methods.

More than just providing transportation, the cars of the future will use information technology to serve a variety of functions that benefit both people and society as a whole. This vision underpins Toyota’s commitment to enriching lives of communities. Toyota is broadening its horizons as it seeks to improve day-today life and to bring smiles to the faces of future generations.

First and foremost, we strive to make ever-better cars and enrich communities in order to achieve sustainable growth and a stable business foundation. This ever-growing stable business foundation, in turn, provides us with the strength to make ever-better cars and enrich society. It is a virtuous circle.

05 Launching a New Structure to 21 Message from the Executive 23 What Sets Toyota Apart

24 Consolidated Performance Highlights 27 Review of Operations
27 28 29
Automotive Operations Financial Services Operations Non-Automotive Business Operations

37 39

Management Team Risk Factors

122 123

Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm

Help Fulfill the Toyota Global Vision

42 Financial Section
42 44 45 46 72 78
Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Consolidated Financial Statements Notes to Consolidated Financial Statements

124

Investor Information

Vice President Responsible for Accounting

32 Management and Corporate Information
32 34 35
R&D and Intellectual Property Corporate Philosophy Corporate Governance

“Toyota Global Vision” on the Front-lines
The following special feature outlines how the Company engages in visionary management in the words of front-line personnel. Please read from the Special Feature page or turn to the following if accessing from the Special Content top page.

Cautionary Statement with Respect to Forward-Looking Statements
This document 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 and market demand affecting, and the competitive environment in, 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.

however. There is a growing sense that the business model set forth in the Toyota Global Vision is steadily becoming more robust. we must set our gaze even further. Toyota’s roots lie in its founding principle of contributing to society by making automobiles. these crises allowed us to gain invaluable experience and taught us many truths that would have remained hidden if conditions had been more settled. Looking at the consolidated results for the fiscal year ended March 31.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 04 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information The last four years have also been an opportunity to reconnect with our roots and return to the things that we have always held dear. true competitiveness cannot be measured simply in True Competitiveness for Sustainable Growth Firstly.” all 330. Toyota celebrated its 75th anniversary in November 2012. but rather represents a challenge that must be met on a groupwide basis. We kindly request the continued support and understanding of all our stakeholders. we learned that a traditionally broadbased auto industry. sales outlets. Particularly during the global financial crisis. Ultimately. I am deeply grateful for their confidence and support. It is important. terms of profit and loss. Since 2009. “Rewarded with a smile by exceeding your expectations. This achievement is entirely attributable to the backing provided by the global Toyota team. Toyota recorded substantial improvements in both revenue and earnings. we are entering the final quarter of the auto industry’s first century. Today. I would like to express my sincere gratitude for your continued support and understanding. 2013. Over the next 25 years. Toyota has faced a series of prolonged crises. and gain some insight into this industry’s second century. we are making steady progress in reforming production technology and making new cars based on the Toyota New Global Architecture (TNGA). We must always bear in mind that the sustainable growth we are striving to achieve will create a better society for our children and grandchildren. our goal should ever be to make ever-better cars. Looking back. while positioned to enjoy the fruits of rapid growth. Our efforts to meet this challenge are exemplified by our adoption of TNGA and the reorganization of our business units. In establishing the Company all those years ago. which encompasses a wide range of stakeholders such as employees. may also be vulnerable to abrupt decline that could bring anxiety to a substantial number of people. At the same time. On a nonconsolidated basis. We must then use this insight to inform our own long-term business structure. when we fell into the red. July 2013 Akio Toyoda President . This upturn was largely attributable to the increase in vehicle sales in North America and Asia and concerted efforts by the entire Toyota Group to boost profits. Toyota was successful in turning a profit for the first time in five years. customers.000 of us at Toyota around the world work together as one to make ever-better cars and to contribute to society. of course. The products that are only just beginning to roll off the lines represent the first results of our groupwide emphasis on making ever-better cars. Put simply. We are now more attuned to the importance of sustainable growth and have learned the critical lesson that an increase in production does not necessarily equate to growth. Kiichiro Toyoda envisioned a strong Japanese auto industry with its roots in Japanese manufacturing traditions. to remember that we have merely reached the next starting line and that every member of the Toyota Group needs to focus on ensuring true competitiveness—competitiveness that will support sustainable growth regardless of external factors. and. suppliers.

Kodaira. East Asia & Oceania. and Latin America & the Caribbean. which covers all unitNew Structure related operations.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 05 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information [1 of 2] Launching a New Structure to Help Fulfill the Toyota Global Vision In April 2013. which covers our Lexus brand. Maekawa. 2 China. Africa. Europe. Kato. 1 Toyota No. 1. planning. This more agile and autonomous management structure will enable us to clarify responsibility for operations and earnings. the president has taken the reins of the newly formed Lexus International unit. 2. Recognizing that innovation is required in order to establish Lexus as a Japanese global luxury brand. East Asia & Oceania. Europe. TNGA Planning Division Product & Business Planning Division Lexus International IT & ITS External Affairs & Public Affairs Administration & HR Accounting Purchasing Customer First Promotion Technical Administration R&D Production Control Vehicle Production Engineering & Manufacturing Toyota No. and will allow managers in the field to make decisions more quickly based on genchi Chairman/President genbutsu (on-site. Together with the four newly established units encompassing our automotive operations. Asia & the Middle East. Japan Development. hands-on experience). which is responsible for business in China. Sudo) .to long-term technology-based product strategies under TNGA. which oversees operations in North America. Clarifying responsibility for operations and earnings while accelerating decision making Toyota has split its automotive business into four units comprising Lexus International. the TNGA Planning Division will be responsible for driving medium. Asia & the Middle East. Toyota No. and the Unit Center. Ozawa. Toyota optimized its organizational structure in an effort to better fulfill the Toyota Global Vision by manufacturing ever-better cars. while the Product and Business Planning Division will focus on generating market-based product and business strategies. Toyota No. Latin America & the Caribbean (planning to production/sales) Unit Center North America. Africa. and Japan. and production of engines & other unit components (planning to production/sales) President Toyoda and six executive vice presidents (from left: Ihara.

With regard to annual vehicle sales. By making decisions in a timely manner and optimizing our business development strategies to suit markets. it is possible that components will play an even more significant role. 1 and Toyota No. 2 to ensure that the unique markets of each region are handled in an attentive and appropriate manner. which are expected to play an increasingly central role in the manufacture of ever-better cars. respectively. With the aim of bringing products to market in a responsive and timely manner. 4. and must expand these markets by introducing ever-better cars. In these markets it is essential to capture new customers by introducing well-timed products that fit market needs. The second is to create a system that can evaluate all stages of development. and will play a vital role in transforming the way we work and supporting the future of the company. have been consolidated under the Unit Center with an executive vice president appointed to oversee operations as head of the Unit Center. Looking ahead. In overall terms. 2 units at approximately 500. Essentially. To ensure that Toyota maintains a genuine competitive advantage. its cars. To secure the comprehensive structure these operations entail. The facility. In addition to the ongoing development of the Lexus business as a in-house company. we will position TNGA at the heart of our endeavors as we engage in a comprehensive review of the way we work. both Toyota No. the emerging markets in which Toyota No. 2 must work to understand the particular stage of development of their respective markets. and Toyota No. success rests on our ability to capture replacement demand amid a market that is projected to remain stagnant in terms of scale. each business unit will optimize its own business model and aim for steady improvement. For the developed markets in which Toyota No.000. The overarching goal of the Toyota Global Vision is achieving sustainable growth. 1 operates. Just as the Lexus business has its own business model. goals have been set for the Lexus. and 3. They will also need to harness their accumulated knowhow to address the concerns that come with expansion.000.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 06 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information [2 of 2] Launching a New Structure to Help Fulfill the Toyota Global Vision Ensuring that each unit pursues the most appropriate business model Under the new management structure. every effort will be channeled toward securing qualitative growth by expanding sales of ever-better cars that incorporate advanced technologies in such fields as the environment and safety. all related component departments. including factories. Toyota has thus put in place a structure that is capable of continuously making ever-better cars and maintaining outstanding quality and profitability while further expanding vehicle sales.000 units. In keeping with the above. Toyota has constructed a new facility to facilitate the development of powertrains.000 units.000 units. the Toyota business has been split into two business units and executive vice presidents appointed to assume responsibility for operations and earnings. The first is to create an environment in which powertrain research and development staff can engage in face-to-face discussions with the staff responsible for production technologies and the development of production methods. we will strive to make ever-better cars that meet local needs the world over. and its purview encompasses all operations from components planning to the development of production technologies and functions. under one roof. Meanwhile. While Toyota’s principal products. are universally recognized as central to its business and management. which went online in February 2013. from fundamental technologies to finished vehicles and components. 1. regional headquarters have been established within Toyota No. Adopting a horizontal structure.228m2) . Toyota No. the Toyota brand maintains two clearly distinct models covering operations in developed and emerging markets. Vehicle and component evaluation area 3 Single item and product evaluation on a vehicle and component basis Component evaluation Transforming the way we work Powertrain Development and Production Engineering Building b Unified development office (1) Stronger collaboration between engineering and production b Comprehensive evaluation under one roof (2) Expeditious prototype creation and evaluation (3) Single item and product evaluation on a vehicle and component basis 12F Prototype and production Prototype technique development creation and Performance evaluation area production 2 Expeditious prototype development creation and evaluation Standalone evaluation 11F Performance evaluation 10F 9F Unified development office 1 Strengthen collaboration and engineering and production Product development 8F 7F 6F 5F 4F Powertrain Development and Production Engineering Building ˾ Optimum development efficiency ˾ Challenge of developing new technologies Power package evaluation 3F 2F Power package evaluation on a vehicle basis 1F (Dimensions: 108m x 89m x 58m. and this will remain our focus as we look to the future. will enable us to produce ever-better powertrains. 2 operates are experiencing rapid growth. it is quite possible that the fate of manufacturing companies will depend more on the competitiveness of their components than that of their finished products. there two overarching goals for transforming the way we work. an approach that is expected to contribute to across-the-board growth. With this in mind. 1 and Toyota No. total floor space: 101. the Unit Center has been charged with developing globally competitive “unit” components.

>How do we create ever-better cars that delight our customers? >The definition of a better car varies depending on the location. Kiichiro Toyoda.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 07 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [1 of 10] Stable Base of Business At Toyota. we believe we’ve worked harder than anyone else to build better cars. and over the course of the following four years we significantly improved our manufacturing methods. The global financial crisis that began in 2008 reminded us once again that the foundation of sustainable growth is making cars that customers love. >What is essential to building the better cars of the future? . as well as the first-generation Toyota Prius. This drive gave us the original Crown. was to establish an automobile industry in Japan based on Japanese technology and skill. the world’s first mass-produced hybrid car. recommitting all of our resources to making even better cars. We changed direction. The ambition of our founder.

Platform transmission. In terms of engine types. they also have the unique characteristics that our customers expect from better cars. We believe that a car that brings a smile to the face of a customer is without a doubt a better car. Toyota has always followed an optimized development process for each car model. platform. fuel consumption. ride. What constitutes a better car? What makes a car better? The answer to this question is different for each customer and it varies depending on where they are. drivetrain variations Exhaust regulation compliance. when it comes to making ever-better cars. for example. To continue making ever-better cars.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 08 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [2 of 10] Stable Base of Business How do we create ever-better cars that delight our customers? Number of engine types Cumulative total Number of types Engine series Displacement variations Fuel consumption and horsepower variations Platform. handling. and create happiness. and environmental performance. with regard to design. We aim to inspire. However. model variations Source: Toyota Motor Corp. INSIGHT All Toyota cars share the same emphasis on quality. no finish line. and the number of models in each line has expanded in tandem with increasing production volume. INSIGHT The Toyota 86 reignited people’s love of cars Each car is the product of connections between people . excite. This is why we are dedicated to constantly delivering products and services that always exceed the expectations of our customers. horsepower. this has resulted in an increasing range of specifications for displacement. and equipment. and drivetrain in addition to modifications in compliance with country-specific exhaust regulations. there is no magic bullet. safety. At the same time. we must constantly reassess the way development is optimized for each car model.

ua ality basic c par rts performance a d shar an shar sh rin ing g th t em m acr ros oss s differen d e t ve v hicl c e se egm g ents s Source: Toyota Motor Corp. This streamlining has resulted in extra R&D capacity. and driving performance to the preferences of our customers. Just as a road determines the cars that will be driven on it. Toyota has developed three front-wheel-drive platforms and plans to develop several car models based on each of these platforms. ride. So far.to long-term product lineup and release schedule. By grouping and unifying optimal driving positions and hip-point heights. engineering. first finalizing the projected . commercial vehicles Next-generation vehicles (Environment-friendly cars. which we are directing toward optimizing processes in each region—for example. driving performance. This. manufacturing. safety. Toyota plans to start unveiling new car models developed under TNGA from 2015. as well as staff from Japan. sales. we are able to share common cockpit modules and parts across different car models and platforms. and braking to world-class levels. high performance vehicles. and large platforms (chassis) respectively. Under TNGA. appealing yet practical vehicles. we listen to our customers to understand their expectations regarding design. and it is now able to standardize parts and units across different models through grouped development that puts multiple models through the planning process at the same time. new concept cars) Representation of vehicle volume Zone B New concept cars Zone C Shift to zone B in the future Zone D Ca C ars r wit it ith th un niq ique e cha ha haract a ct cte teris isti tics ti du d ue to o reg egio iona io na al opti op pt ti imi miza z ti za tion on an nd di d ffer rentiat a ion n Product lineup Appealing cars Architecture Toyota’s car manufacturing design concepts LFA CROWN CRO R WN W H HIA HIACE CE E WEL WELCAB E CAB A PRIUS TOYOTA i-ROAD Customer expectations Grouped planning & development Modules and parts Compatible systems and parts families Parts developed for mediumto long-term scenarios • Individualistic designs • Excitement and inspiration • Superior driving performance • Emotional engagement and sensory appeal • Appealing designs • High basic performance • Ease of use • Price and affordability • Durability • Ease of use • Price and affordability • New concepts • New technologies • Environment-friendly/energysaving features Improving basic ride. matching interior cabins. Common items: quality. and services. allows us to cut both the number of part variations and engineering man-hours. We expect TNGA to result in lower basic costs and contribute to enhanced profitability. INSIGHT medium. taxis. in turn. exterior designs. For example. environmental performance Consistently delivering better cars to customers Toyota divides the vehicles it makes into four zones: exciting. with the ultimate aim of creating products that stir our customers’ emotions. commercial and heavy-duty vehicles. turning. turning. In our pursuit of ever-better cars. across vehicle segments. enables us to make cars that delight customers the world over. Toyota aims to make ever-better cars more efficiently by simultaneously cutting basic costs and substantially improving product appeal—which at first glance may seem to be contradictory goals. Toyota applies a distinct planning and development process with each car model. The Toyota New Global Architecture (TNGA) is our framework for making ever-better cars for a wide variety of customers and regions in smarter and more efficient ways. collaboration between the members of marketing and R&D teams around the world. Toyota intends to raise the competitiveness of basic parts relating to ride. midsized.to long-term plans Focus on interests and sensibilities (particularly for sports cars) High-volume cars for individuals and the general public Special-purpose vehicles. then grouping models within the lineup. Toyota’s design and R&D bases in nine locations outside Japan are key components of its globalized and localized operations.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 09 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [3 of 10] Stable Base of Business How do we create ever-better cars that delight our customers? How to standardize parts and units What is required of ever-better cars Zone A Medium. and next-generation vehicles. and equipment in each of these zones. which integrate development. we have separately standardized the parts and units for compact. Our engineers always keep customer expectations firmly in mind Smarter and more efficient In line with TNGA. including platforms and powertrains. Toyota is increasing standardization while enhancing basic performance and product appeal above and beyond customer expectations. we aim for full optimization by standardizing even more basic parts. and braking Us sin i g hi h gh-q . Based on the new vehicle architecture.

Toyota has been producing three million cars annually in Japan for more than 30 years. Competitiveness cannot be created overnight. We will continue to make capital investments that are necessary to sustain growth. nor should it be regarded as a measurement derived from short-term profits and costs. The QC team’s job is to deliver zero defects . To be truly competitive. since the early 1980s Toyota has progressively increased its car production in countries where its vehicles are sold. Toyota has made significant progress toward its goal of reducing the basic unit of capital invested in model redesigns by 40% compared to the levels seen before the global financial crisis.and long-term perspectives. Toyota has now begun to transition to a sustainable growth model. and in 2007 its overseas production exceeded its production in Japan for the first time. shifting its focus away from volume-driven growth. manufacturing expertise. it is the sum of countless factors. for example. We believe that sustainable growth can only be achieved by focusing on areas where we are truly competitive over the longer term. In line with our policy of producing where there is demand. Toyota expanded production outside Japan in accordance with sharp growth in sales. including after-sales services. Toyota will continue its policy of concentrating investment in regions that are expected to grow—particularly in emerging markets. Competitiveness is a multifaceted challenge that cannot be measured with data or numbers. It is this foundation that has supported Toyota’s global ambitions. both inside and outside Japan. While keeping total investment at an optimal level. the ability to innovate. Today. Toyota has a robust manufacturing foundation replete with advanced technologies. Toyota vehicles are driven in more than 170 countries and regions. From 2001 onward. and will focus on investing more efficiently. a corporate culture that pursues greater productivity through better quality and shorter lead times. which fluctuate depending on prevailing business conditions. and this production structure has laid the foundation of the manufacturing competitiveness of the Toyota Group. In Japan. Japan is and always will be central to the Company’s ability to make competitive cars and create innovative manufacturing technologies. and a multilayered supply network. such as a company’s ability to nurture human resources. Looking at the situation from both the medium. because of its long history in the country. and marketing skills. Toyota is working hard to improve productivity. We have put in place groupwide systems that will enable us to continue making ever-better cars that are profitable and excel in quality. Toyota is poised to refine and improve its competitiveness. We are placing top priority on maximizing capacity utilization and making effective use of our existing plants and manufacturing facilities from a global perspective. including its network of suppliers. INSIGHT Continuing to concentrate investments in growth areas With further growth in sales volume likely. Toyota now has 51 manufacturing bases in 26 countries and regions. talented human resources.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 10 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [4 of 10] Stable Base of Business How do we create ever-better cars that delight our customers? Bringing out our true competitiveness Toyota has been selling automobiles around the world ever since the first Crown was exported to the United States in 1957. where we will step up investments substantially. however. Having learned a great deal from the recent global financial crisis. Over the next three years we plan to concentrate on modernizing existing facilities rather than building new plants (excluding those for which construction is already planned or in progress). The current degree of our competitiveness varies by country and region. we think it is crucial to further increase Japan’s competitiveness as a global base.

including the Camry and Avalon. This facility is playing a key role in shortening development times and standardizing designs. having produced a significant portion of the 25 million cars made by Toyota in North America as of the end of October 2012. For example. for the U. market. (TMMK). teams.” has emerged as a symbol of Toyota’s “ReBORN” campaign. we continue to pursue the true competitiveness symbolized by the words “Made by Toyota. was designed and developed entirely by U. Toyota has decided to start making the Lexus ES 350 at TMMK in the summer of 2015. TMMK now produces half a million cars a year.000. with the ultimate aim of creating innovations that exceed the expectations of our customers. We aim to strengthen our competitiveness and enable sustainable growth through the provision of high-quality products in areas where we are truly competitive. giving the car an undeniable sense of presence. which has been focusing on improving quality since it started production more than 25 years ago in 1988. TMMK plans to expand its annual production capacity to 550. In light of this enhanced competitiveness in the United States. which first rolled off the production line in October 2012. evolved out of intense discussions and collaboration between designers and manufacturing technology engineers.” Nowhere is this commitment better demonstrated than at Toyota Motor Manufacturing. . the Crown is in the vanguard of our drive to make ever-better cars. for example. Sales of the new Crown surged from the start—in the first three months of its release we sold double our target volume of 4.S. Inc. To create a better car. Kentucky. The new Crown was created with the goal of making ever-better cars in mind.000 cars a month (the expected average over the life of the model). In the United States.000 vehicles from its current 500.” A prime example of TNGA’s approach to development process reforms can be seen at the new Powertrain Development and Production Engineering Building.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 11 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [5 of 10] Stable Base of Business How do we create ever-better cars that delight our customers? LEXUS ES 350 Toyota Motor Manufacturing Kentucky AVALON INSIGHT Our teams design appealing cars that turn heads CROWN Strengthening manufacturing competitiveness The latest Crown model. we overhauled our previous approach of simply discarding aesthetic improvements on the basis that they were “inefficient. With the start of ES 350 production. Representing the pinnacle of Japanese manufacturing. In addition. where employees involved in the development of new technologies and units are brought into close contact with one another to facilitate the development and engineering processes. inspired by the slogan “Taking on the challenge of innovation. with lines that leap forward. the fourth-generation Avalon. These discussions led to major advances in design and production techniques. the distinctive side profile of the Crown.S. and required us to make major changes in the way everyone worked. and is a core manufacturing base.

where dust can be a problem Brazil Indonesia • A cut above the rest. Argentina. Oceania. Toyota began to manufacture a range of cars that better reflect the needs of each region. Etios • Steel plates protecting the underbody of the car from loose rocks on rough roads • Beverage holder capable of carrying seven one-liter bottles • Air conditioner vents arranged side-by-side to circulate cool air to the rear seats • Best-in-class fuel economy with 17. however. a compact car designed as a step up from the Etios. The Lexus brand is now independent. The Etios Valco hatchback has quickly become the “national car of Indonesia. with an elegant design that evokes status • One-touch power windows and other extras in high demand locally • Extremely roomy interior and plenty of storage space • Smooth ride and comfort on rough roads • Best-in-class fuel economy Thailand Accelerating the development of compact cars in emerging markets Toyota has reorganized its automotive operations into four business units to propel the company toward achieving the Toyota Global Vision. with the launch of the Innovative International Multipurpose Vehicle (IMV) series in 2004 heralding a particularly important turning point. starting in 2010 with the launch of the Etios compact car. Toyota now has a total of eight compact cars designed for emerging markets and plans to sell them in more than 100 countries. in emerging markets.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 12 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [6 of 10] Stable Base of Business The definition of a better car varies depending on the location. With the launch of sedan and hatchback versions of the Etios. Toyota has progressively expanded its operations in emerging markets (especially in ASEAN countries) since the 1960s.” Toyota also manufactures the Vios. Our desire to exceed the expectations of each and every customer has led us to promote the development of the automotive industry around the world. Indonesia. These efforts have culminated in the development of compact cars designed specifically for emerging markets. at Toyota’s second plant in Karawang. and Toyota brand operations are divided into those in emerging markets and those in North America. These components are then supplied to the countries that make the car bodies. Toyota’s guiding philosophy since its foundation has been to contribute to communities the world over through localized operations. Europe. and a comfortable ride on rough roads • Dust proofing specifically for customers in Brazil. Africa. weathering the Asian currency crisis to steadily deliver cars that match customer preferences. Production of the Etios commenced in India (2010). followed by Brazil (2012). Toyota has endeavored for years to build relationships of trust. and Japan to reflect their markedly different business models and to accelerate decision making in tune with local market needs. Europe. A local parts procurement ratio of 100% was targeted. thereby keeping car body prices competitive. IMV series vehicles are sold in 170 countries and regions throughout Asia. Toyota’s largest production base in the ASEAN region. and transmissions are made in the Philippines and India. and the Middle East. pleasant interior offering value for money • Optional package offering superior comfort in rear seats • Best-in-class fuel economy India • Bioethanol-compatible flex fuel specifications • Stability while driving on highways. gasoline engines are made in Indonesia. The IMV series was developed for sale in more than 140 countries. and most recently Indonesia (2013). the IMV series is manufactured in 12 countries and regions. and Toyota began manufacturing five base models in five countries simultaneously. The IMV series was developed as a globally integrated model for all regions.6 kilometers per liter of gasoline ( (calculated according g to Indian standards) • Optimizations factors izations s based on 101 fa facto fac tors to ors specific to th the Indian marke market et Etios Valco Vios • Compact car developed from the ground up for emerging markets • Dynamic. . Latin America. elegant and clean exterior. At present. The Vios is currently produced and sold in Thailand. with Thailand. Diesel engines are made in Thailand. and there are plans to export it to more than 80 countries. and South Africa positioned as four global supply bases. and as of March 2012 a cumulative total of 5 million IMVs have been sold worldwide. In Southeast Asia.

FORTUNER. (Taiwan) CAMRY. INNOVA. TMEC is working toward the production of eco-cars in China. VIOS. located in Changshu City. HIACE. optimize powertrains to comply with local regulations. (Bangladesh) LAND CRUISER Toyota’s presence in emerging markets China VIOS S 1964 P 1999 TFTM (China) VIOS. TMEC showcased its accomplishments by exhibiting the Yundong Shuangqing II concept car. VIOS. (TMAP-EM) collaborates with nearby R&D bases to develop cars specifically for emerging markets. ETIOS South Africa S 1962 P 1962 TSAM (South Africa) COROLLA. COROLLA. At the Beijing International Automotive Exhibition in April 2013. testing. CAMRY. RAV4 SFTM (China) COASTER. CAMRY HYBRID Taiwan S 1949 P 1986 Kuozui Motors. ETIOS Thailand S 1962 P 1964 TMT (Thailand) VIOS. FORTUNER. They develop car bodies and parts in line with local needs. INNOVA. HILUX. HIACE AVANZA Argentina S 1978 P 1997 TASA (Argentina) HILUX. HILUX VIGO. As a core base in the Asia/Oceania region. TDV (Venezuela) TMMBC (Mexico) TAKOMA COROLLA AAV (Egypt) FORTUNER Aftab Automobiles Ltd. HILUX. INNOVA. Legend For each country/region: S = Start of sales P = Start of production Producer P (name (n of country or region) Main models produced (as of September 2012) Source: Toyota Motor Corp. VIOS. CAMRY HYBRID. To put the finishing touches on its local development structure. REIZ. FORTUNER. FORTUNER Brazil S 1958 P 1959 TDB (Brazil) COROLLA. COROLLA. Ltd. tests and conducts performance evaluations on a large-scale test course. HIGHLANDER. YARIS. Since the widespread use of eco-cars benefits the environment. Ltd. INNOVA IMC (Pakistan) COROLLA. CAMRY HYBRID Yundong Shuangqing II concept car at the 12th Beijing International Automotive Exhibition . VIOS Malaysia DYNA S 1967 P 1982 ASSB (Malaysia) HIACE. LAND CRUISER PRADO. The increasing importance of localized R&D Our R&D bases allow us to make ever-better cars that are competitive in each region. Jiangsu Province. YARIS. HILUX AVA (Kenya) LAND CRUISER TMP (Philippines) INNOVA. TMEC oversees the development of engines for cars produced in China. FORTUNER Indonesia S 1971 P 1977 HMMI (Indonesia) DYNA ADM (Indonesia) AVANZA TMMIN (Indonesia) INNOVA.. which features hybrid components that are currently in development.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 13 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [7 of 10] Stable Base of Business The definition of a better car varies depending on the location. (TMEC). HILUX TMV (Vietnam) CAMRY. WISH. To develop cutting-edge fundamental technologies. PRIUS.. FORTUNER India S 1985 P 1999 TKM (India) COROLLA. TMAP-EM plans to add to its team of roughly 600 employees to bolster its product planning. DYNA. Toyota Motor Engineering & Manufacturing (China) Co. YARIS. PRIUS GTMC (China) CAMRY. ETIOS FALCO TMCA (Australia) CAMRY. COROLLA. and prototyping capabilities. FORTUNER COROLLA. FORTUNER. Toyota Motor Asia Pacific Engineering and Manufacturing Co. and develops environmental technologies. COROLLA. and expand the local procurement of parts in cooperation with local suppliers. COROLLA. CROWN. Ltd. conducts research and development in collaboration with the R&D centers of two joint ventures engaged primarily in the development of car bodies. LAND CRUISER.

we have been focusing on enhancing performance. hybrid vehicles accounted for around 40% of all cars sold by Toyota in Japan. Toyota plans to launch 15 2 million 3 400 10% 250 600 new hybrid vehicle models by the end of 2015.800 117 months 1.500 27 months 18 months 14 11 months months 6 800 40% 680 4 million 5 600 4 1. As of August 2013. To encourage more customers to choose hybrid vehicles (the most popular type of eco-car on the market). in about 80 countries and regions. . 2013) Hybrid vehicles are no longer “niche” products The environment is one of Toyota’s top management priorities. which can work in tandem with a wide variety of fuel types and which includes all of the fundamental technologies necessary to make eco-cars. As a result.-Mar. the number of hybrid vehicles sold by Toyota topped the five million mark. Japan ˾ 2008 ˾ 2012 Source: Toyota Motor Corp. 2013. North America Europe ˾ Annual sales b Cumulative sales (right scale) (Mar. 31. 15 years and seven months since the first hybrid vehicle was launched in August 1997. Toyota estimates that the combined effect of all the hybrid vehicles it has sold is an approximately 34 million ton reduction in CO2 emissions (assuming that gasoline engine cars of an equivalent class. 1 million 2 200 13% 7% 100 110 5% 50 300 Lineup of hybrid vehicles in all categories 1 0 (CY) 0 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 Jan. including one plug-in hybrid. size. In addition. We have promoted the proliferation of hybrid vehicles since the introduction of the original Prius in 1997 because we believe that the widespread use of eco-cars will benefit the environment. Impact of the widespread use of hybrid vehicles As of March 31. the Company is focusing on hybrid technology. such as the development of non-hybrid eco-cars that are compatible with other types of fuels. Hybrid vehicles are no longer “niche” products. Toyota sells 23 hybrid vehicles. Toyota estimates that the amount of gasoline saved is equivalent to about 12 million kiloliters (using an equivalent class of gasoline engine car as a benchmark). and Toyota considers hybrid technology to be the core environmental technology of the 21st century. and expanding our lineup. reducing costs. In March 2013. as well as developing eco-cars other than hybrid vehicles. In 2012. and horsepower would have been sold instead). Toyota sells 23 hybrid vehicle 900 models (including a plug-in hybrid) in approximately 80 countries and regions. and about 14% on a global basis.200 3 million 15% 350 As of August 2013. we believe that creating ever-better cars will require us to focus our efforts on a wide range of technological initiatives.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 14 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [8 of 10] Stable Base of Business What is essential to building the better cars of the future? Hybrid vehicle sales volume (Thousands of units) (Millions of units) Hybrid vehicle share of Toyota product mix by region (Thousands of units) 5 million 1.

Toyota has already achieved a high level of aerodynamic performance in its cars. 27m high Six-component balance with 5-belt moving belt system.35 STARLET RLE RLET LE ET 0.20 (Year) 1980 1990 2000 2010 2020 Promoting the further uptake of hybrid vehicles Toyota aims to make hybrid vehicles more appealing to a wider range of customers by improving performance. all of which will enable us to develop everbetter cars. three-dimensional flow analysis system Source: Toyota Motor Corp.000kW output Air portal dimensions: 7m wide × 4. and reducing wind noise.30 to 0. If the coefficient of drag for a compact hybrid vehicle is reduced from 0. wide-area. low-noise driving simulation wind tunnel Aerodynamics Laboratory 0. During the 12 years between the launch of the first Prius and the launch of today’s third-generation Prius. with the Prius as a prime example. vehicle package. Nevertheless.25 at this speed. Vehicle testing at the Aerodynamics Laboratory Large wind tunnel fan 0. 8.55 Resistance to vehicle motion when driving at 100km/h 0. Toyota plans to launch 15 new hybrid vehicle models globally between August 2013 and December 2015.5m high Tunnel dimensions: Main equipment: 110m long. reducing costs. Toyota is improving aerodynamic performance by reducing the vehicles’ air resistance. 52m wide. With regard to cost reductions. ventilation.45 70% 0.40 ROLLA A COROLLA R RAV4 ES E ESTIMA TIMA SUVs Minivans [Overview of the Aerodynamics Laboratory] Wind tunnel type: Circuit.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 15 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [9 of 10] Stable Base of Business What is essential to building the better cars of the future? Measures to reduce air resistance Unit: Coefficient of drag 0. Toyota has substantially reduced the cost of hybrid systems while significantly improving fuel economy by optimizing the hybrid system with each successive generation of the Prius. and expanding its lineup. The Head Office Technical Center contains a newly constructed Aerodynamics Laboratory for conducting research into reducing air resistance.30 Maximum wind speed: 250 km/h CELSIOR 0. and airflow under the body of the car.25 Hatchbacks Sedans PRIUS S Fan: 9m fan diameter. improving driving performance. Toyota continues to develop technologies to enhance aerodynamic performance even further by improving the exterior shape. . sound analysis system. airflow around the tires. Toyota managed to reduce the cost of the hybrid system to only one-third of the original cost. Air resistance accounts for approximately 70% of the resistance to vehicle motion at 100 kilometers per hour.50 Rolling resistance: LAND CRUISER 30% Air resistance: about 0. fuel economy improves by about 8%.

the amount of CO2 emitted and gasoline consumed decreases accordingly. CO2 emissions can be reduced to significantly lower levels. a range comparable to a similar gasolinepowered car. This is why we believe that plug-in hybrid vehicles will be the winner among next-generation eco-cars. This will not only help prevent atmospheric pollution but also provide economic benefits in the form of lower fuel and electricity costs. As the driving range of electric vehicles increases. Toyota is conducting R&D in this area. and storing energy at the household level will become possible through the skillful management of electricity used to recharge electric or plug-in hybrid vehicles and electricity used inside homes. biofuel. if electricity generated by solar power is used to recharge car batteries. diesel. etc. Plug-in hybrid vehicles operate as conventional hybrid vehicles once their batteries have been depleted. hydrogen refueling stations) has yet to be put in place. gasoline. and the fact that hydrogen can be produced from a variety of primary energy sources.e. synthetic fuel..i n hybr i d veh i cles Large trucks High-speed railway railw Electr i c veh i cles Metropolitan buses Passenger cars Engine Zero CO2 emissions over a limited range EV Motor Battery Motor Largecapacity battery Compact delivery vehicles Short-distance applications Delivery trucks Ordinary railway FCV(BUS) HV Vehicle size Engine Fuel tank EV FCV-R FC PHV HV FCV Motor Battery Zero CO2 emissions Winglet Win i series i-series Motorcycles FC Hydrogen stack tank Energy source Electricity. Breakdown of mobility in the future Fuel cell veh i cles PHV Motor Largecapacity battery Fuel tank Hybr i d and plug. The batteries of plug-in hybrid vehicles can be recharged directly from household electrical outlets. However. including zero CO2 emissions while driving. Moreover. a new concept that combines the benefits of hybrid and electric vehicles. and have numerous potential benefits. highperformance fuel cell systems at lower cost with the aim of introducing a sedan-type FCV around 2015 in major cities where it would be relatively easy to build the necessary infrastructure.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 16 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars [10 of 10] Stable Base of Business What is essential to building the better cars of the future? Toyota is developing a variety of next-generation eco-cars that leverage its advanced hybrid technologies. Toyota is working to create compact. What will be the next winner among eco-cars? Toyota believes that next-generation eco-cars will use plug-in hybrid technology. FCV-R concept car on display at the 2011 Tokyo Motor Show . Fuel cell vehicles (FCVs) also represent a key technology of the future. The hybrid technologies honed by Toyota to date are vitally important to the development of FCVs. CNG. conserving. Generating. the necessary infrastructure (i. Hydrogen Electric vehicles: short-distance applications Hybrid vehicle and plug-in hybrid vehicles: passenger cars Fuel cell vehicles: medium and long-distance applications Source: Toyota Motor Corp. These vehicles are powered by electricity generated by the chemical reaction between oxygen in the air and hydrogen. and charging batteries allows vehicles to operate primarily in EV mode over short ranges.

We aim to help create a responsible and safe automobile society that emphasizes IT-based infrastructure.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 17 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities [1 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars Stable Base of Business More than just providing transportation. To this end. . we are engaging in the development of “smart communities.” environment-conscious cities featuring smart grids that link people with their cars and homes. This vision underpins Toyota’s commitment to enriching lives of communities. Toyota is broadening its horizons as it seeks to improve day-to-day life and to bring smiles to the faces of future generations. the cars of the future will use information technology to serve a variety of functions that benefit both people and society as a whole. In addition to supporting efforts aimed at realizing a low-carbon society through the development and promotion of eco-cars.

monitors traffic conditions using telematics services which gather information through in-car navigation and mobile communication units. we recognize the importance of finding new ways to link people. an EV concept car Toyota believes that promoting the widespread use of eco-cars will benefit the environment greatly. for example. This includes meeting the power and recharging needs of drivers of plug-in hybrid (PHV) and electric vehicles (EVs). To this end. medical. INSIGHT Taking a “three are better than one” approach We aim to make driving more fun Robots can improve our quality of life INSIGHT INSIGHT . TOYOTA i-ROAD. Toyota is also contributing to society in the transportation information field. Toyota participates in testing and demonstrations around the world to get closer to its goal of achieving smart communities and a smart. This fundamental conviction has been key to Toyota’s growth over the years and is essential to its future sustainability. The Big Data platform achieved outstanding results in the aftermath of the Great East Japan Earthquake. This project aims to determine the viability of providing an alternative means of transport for short distances of a few kilometers (often referred to as “last mile” transfer needs) while offering clues to resolving inner-city transportation issues.” is one of two EVs selected for an experimental car sharing program that will provide ultra-compact EVs for short-distance travel in and around the city of Grenoble. high-mobility society. and the communities they live in. This is why the TOYOTA i-ROAD. Toyota is contributing to society and communities through the development of partner robots. In addition to the above. Our Big Data platform.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 18 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities [2 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars Stable Base of Business How Toyota Plans to Enrich Communities Charging the PHV PRIUS at home Estimates of household electric power consumption in Japan by application following growth in EV and PHV use TVs EV and PHV charging Lighting Air conditioning 33% Water heaters Refrigerators Telematics service Other Electric carpets Source: Toyota Motor Corp. In addition. Toyota aims to improve quality of life by developing robots for nursing. we are leveraging the considerable technological know-how we have cultivated in the industrial robotics field since the 1970s. the cars they drive. France. Enriching communities entails contributing to their development and welfare worldwide. and home care purposes. a twin-seater EV concept car designed to provide “exhilarating motion.

Of the approximately 8. Toyota intends to position its factories at the heart of its efforts to reenergize communities and provide society with unique and innovative services. Moving forward. Compared with industrial complexes of a similar size and scale. the project will create a smart community through comprehensive energy management that encompasses the entire industrial area as well as the surrounding area. around 500. and comfortable lifestyles. We received the 2012 Mécénat Award for Supporting Hearts in recognition of our efforts under the Company’s Kokoro Hakobu Project. efforts will be made to secure an energy self-sufficiency ratio of approximately 70%.000 were produced in the Tohoku region. which aims to support reconstruction and revitalization efforts in disaster-stricken areas. Spearheaded by TMEJ. which aims to facilitate safe. the F-Grid is expected to achieve energy savings of 20% and reduce emissions by nearly 30%. In Japan. the award presented to the Company was specifically for INSIGHT the support activities carried out in the immediate aftermath of the Great East Japan Earthquake. in turn. Hybrid vehicles such as the Aqua and Prius can also generate and store power. and human resource development. led to the establishment of TMEJ. such as the environment.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 19 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities [3 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars Stable Base of Business Contributing to Society through the Manufacture of Cars The F-Grid Concept Energy flow: Normal conditions Electricity Heat Emergency conditions Electricity The Toyota East Japan Technical Skills Academy. In an effort to position the Tohoku region as the Company’s third major production base in Japan after the Chubu and Kyushu regions. Inc. was a major tipping point for us. and we asked ourselves what we could do on a more permanent basis to work with and support society. The project also aims to provide electricity (together with local power companies) to the local community during emergencies. By leveraging its manufacturing strengths. Moreover. Toyota will continue to contribute to local communities though conscientious manufacturing. and TMEJ is becoming a major compact car production center and exporter. Organized by the Association for Corporate Support of the Arts. we place considerable emphasis on society and culture and have been recognized for our efforts. storage batteries. traffic safety.700. responsible. which devastated the Tohoku region of Japan on March 11. is manufactured by TMEJ. The Great East Japan Earthquake. Under the F-Grid Concept. From global perspectives. and contributes to society through a range of unique projects. Toyota has worked diligently to uphold the principle of contributing to society by making ever-better cars. The Aqua. we have launched the Factory Grid (F-Grid) Concept. we channel our energies toward key fields. an in-house training facility established to strengthen manufacturing capabilities in the Tohoku region Supporting the swift recovery of local communities during emergencies using a variety of facilities and devices. including solar panels. and satellite phones The Kokoro Hakobu Project— An initiative that supports disaster-stricken areas Mobile power source during emergencies The Toyota East Japan Technical Skills Academy Artist’s depiction of a factory and industrial complex based on the F-Grid Concept Toyota aims to be a good corporate citizen. (TMEJ). Since its foundation.000 vehicles produced by Toyota worldwide in fiscal 2013. 2011. Japan’s top-selling hybrid hatchback in fiscal 2013. Toyota established Toyota Motor East Japan. INSIGHT The “F-Grid” shows us what future communities could look like Cars will change the lifestyles of the future We see the global environment as a core customer A crisis is emerging in one of the world’s most forested countries INSIGHT INSIGHT . which. The earthquake and its aftermath made us realize the considerable amount of time a full recovery requires. We realized that we could best help the region by expanding local manufacturing activities.

” We feel confident that we are now within sight of ensuring sustainable profitability. In this context. . This ever-growing stable business foundation. It is a virtuous circle. In 2011. in turn. changes from moment to moment. we realize that crucial intangible attributes. provides us with the strength to make ever-better cars and enrich society. we unveiled the “Toyota Global Vision. such as a corporate ethos that is conducive to innovation.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 20 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Enriching Lives of Communities Review of Operations Management and Corporate Information Financial Section Investor Information Making Ever-Better Cars Stable Base of Business [1 of 4] First and foremost. however. meaning that we must constantly strive to secure forward-looking human resources and improve efficiency. a key tenet of the vision. we strive to make ever-better cars and enrich communities in order to achieve sustainable growth and a stable business foundation. Toyota’s business environment. cannot be ignored in our quest for sustainable growth.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

21
Ne x t

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights
Enriching Lives of Communities

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

Making Ever-Better Cars

Stable Base of Business [2 of 4]

Message from the Executive Vice President Responsible for Accounting
Fiscal 2013 Business Results On a consolidated basis for the fiscal year ended March 31, 2013, vehicle sales increased 1.519 million units to 8.871 million units compared with the previous fiscal year. Net revenues expanded ¥3.4805 trillion to ¥22.0641 trillion, operating income grew ¥965.2 billion to ¥1.3208 trillion, and net income rose ¥678.6 billion to ¥962.1 billion. Factors that contributed to operating income included ¥650.0 billion from marketing efforts, ¥450.0 billion from cost reduction efforts, ¥150.0 billion due to exchange-rate fluctuations, and ¥15.2 billion due to other factors. Factors that were detrimental to operating income included a ¥300.0 billion rise in expenses. With regard to marketing, the volume of sales was higher in all regions owing to supply shortages in the previous fiscal year caused by the Great East Japan Earthquake and flooding in Thailand. In Japan, sales Consolidated Financial Forecasts for Fiscal 2014 For the fiscal year ending March 31, 2014, we forecast vehicle sales of 9.1 million units, net revenues of ¥23.5 trillion, operating income of ¥1.8 trillion and net income of ¥1.37 trillion on a consolidated basis. Our exchange rate assumptions are ¥90 per US$1 and ¥120 per €1. In our forecast for consolidated operating income, we expect exchange-rate fluctuations (¥400 billion), cost reduction efforts (¥160 billion), and marketing efforts (¥80 billion) to be contributing factors. We also expect a ¥160.8 billion rise in expenses that will negatively affect operating income. However, the expected increase will be largely attributable to forward-looking expenditures, such as R&D aimed at making ever-better cars. As such, we view these expenses as necessary investments for future growth. Meanwhile, we will continue working to steadily improve earnings in our daily operations, including through companywide value analysis (VA) activities and other cost reduction efforts as well as measures to promote sales efficiency. We have been aiming to establish a cycle of developing cars that delight our customers and benefit society while fulfilling our duty to increase sales and consequently profits that are then reinvested in developing ever-better cars. To support this cycle, we aim to maintain and build on a strong earnings base through marketing, suitable controls on fixed costs and thorough cost reductions.

We aim to achieve sustainable growth by maintaining and building on a strong earnings base.

increased during fiscal 2013 due in part to the invigorating effect of eco-car subsidies on the market. In North America, sales of such mainstay models as the Corolla and Camry remained strong amid robust demand. In Asia, sales volumes grew substantially as the company rode market growth in each country, especially in Thailand and Indonesia. Operating income also received a significant boost from a drive to reduce costs undertaken together with our suppliers throughout the fiscal year as well as a weakening of the yen in the second half of the fiscal year. I believe these results have positioned the company within reach of accomplishing its objective of creating a strong earnings base under the Toyota Global Vision announced in 2011.

Financial Strategy The three key priorities of our financial strategy are growth, efficiency and stability. We believe that the balanced pursuit of these three priorities over the medium to long term will allow us to achieve steady and sustainable growth, as well as increase corporate value.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

22
Ne x t

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights
Enriching Lives of Communities

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

Making Ever-Better Cars

Stable Base of Business [3 of 4]

Message from the Executive Vice President Responsible for Accounting
FY2014 Forecast: Consolidated Vehicle Sales
(Thousands of units) 10,000 8,000 6,000

1. Growth: Sustainable growth through continuous forward-looking investments
+229 -159 +171 +31 +76 +110 Change

growth in automotive markets, propelled by a recovery in the United States and expansion in emerging markets. We believe that, in addition to putting crisis measures into place, maintaining adequate liquidity is essential to the implementation of forward-looking investment aimed at improving product appeal and the development of next-generation technologies as well as to the establishment of global production and sales structures. We will continue to pursue improvements in capital efficiency and cash flow.

8,871 2,279 2,469

9,100 2,120 2,640 830 1,760 1,750 FY2014 Forecasts

We believe that automotive markets worldwide will grow over the medium to long term. As they expand, the focus of market growth is likely to shift toward emerging markets and such fuel-efficient options as hybrid and compact vehicles. We plan to invest efficiently and actively in these areas to meet structural shifts in demand and to ensure long-term sustainable growth. For example, we will prioritize the investment of management resources in the development of next-generation environmental technologies, such as fuel cells. We will also expand our lineup of hybrids and other eco-cars and sell them globally while increasing sales in emerging markets by strengthening locally produced models and building an optimized supply structure. I believe we should work to realize a balanced business structure as stated in the Toyota Global Vision, i.e., the
(Billions of yen) Change

4,000 2,000 0

799 1,684 1,640 FY2013 Results

Dividends and Share Acquisitions Toyota considers the enhancement of shareholder value a priority management policy and to this end is aiming for sustainable growth through corporate reorganization to increase corporate value. We aim to pay stable, ongoing dividends, targeting a consolidated payout ratio of 30%, while giving due consideration to such factors as performance each term, investment plans, and cash and cash equivalents. To succeed in this highly competitive industry, we plan to use retained earnings to quickly commercialize environment- and safety-related next-generation technologies, with emphasis on customer safety and peace of mind. Within this context, Toyota declared an annual dividend payment of ¥90 per share for the fiscal year ended March 31, 2013. Toyota did not acquire its own shares in the fiscal year ended March 31, 2013. We will continue striving to further improve profits and meet the expectations of our shareholders. July 2013

˾ Japan

˾ North America ˾ Europe ˾ Asia ˾ Other

FY2014 Forecast: Consolidated Financial Summary
FY2014 Forecasts (Apr. 1, 2013– Mar. 31, 2014) FY2013 Results (Apr. 1, 2012– Mar. 31, 2013)

“50:50 sales ratio,” with half of our sales coming from developed markets such as Japan, the United States, and Europe and the other half from emerging markets. 2. Efficiency: Improving profitability and capital efficiency Toyota will continue its push forward with the Toyota New Global Architecture (TNGA), an initiative to overhaul the way we work with the goal of facilitating the timely launch of appealing products globally. Under TNGA, we are improving development efficiency and making ever-better cars by standardizing parts and components through grouped development. Moreover, Toyota has improved its ability to invest capital efficiently and is aiming to obtain the same results with less outlay. We will strive to further improve our earnings structure through efficient investment that emphasizes the areas in which we want to advance, including hybrids, other eco-cars, and emerging markets. 3. Stability: Maintaining a solid financial base To ensure a solid financial base, we secure sufficient liquidity and stable shareholders’ equity. This allows us to maintain capital expenditure and R&D investment at levels conducive to future growth as well as to maintain working capital at a level sufficient for operations, even when business conditions are difficult due to such factors as steep increases in raw materials prices or volatility in foreign exchange rates. We plan to refine and implement measures to improve business continuity planning in the event of a major disaster. Toyota anticipates

Net Revenues Operating Income Income before Income Taxes and Equity in Earnings of Affiliated Companies Net Income Attributable to Toyota Motor Corporation FOREX Rates Yen/US$ Yen/Euro

¥23,500.0 1,800.0 1,890. 0 1,370.0 ¥ 90 120

¥22,064.1 1,320.8 1,403.6 962.1 ¥ 83 107

¥1,435.9 479.2 486.4 407.9 ¥ +7 +13

FY2014 Forecast: Consolidated Operating Income Analysis (vs. FY2013)
(Billions of yen) Operating Income

FY2013 Results Effects of FOREX Rates Cost Reduction Efforts Marketing Efforts Financial Services Subtotal Increase in Expenses, etc. FX Effects at Overseas Subsidiaries (Translational) Subtotal

Positive Factors

1,320.8 +400.0 +160.0 +80.0 -30.0 +640.0 -160.8 +60.0 -160.8 +479.2 1,800.0

Nobuyori Kodaira Executive Vice President

Negative Factors

Total FY2014 Forecasts

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

23
Ne x t

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights
Enriching Lives of Communities

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

Making Ever-Better Cars

Stable Base of Business [4 of 4]

What Sets Toyota Apart
Toyota has grown from a single core concept that is still shared by the entire Group: contributing to society by making ever-better cars. Some of the values and ideas that have defined Toyota over its 75-year history are listed below.
INSIGHT

> The improvement process is infinite, and after-thefact improvements are in essence forward-looking improvements These directives, which form part of Toyota’s management philosophy, are by no means limited to the production front-line. They apply universally to all endeavors. In effect, TPS represents the building blocks of Toyota’s human resource development endeavors.

suggestions be made openly, discussed, and put into prac-

Kaizen (Continuous Improvement)

tice to ensure continuous improvement.
INSIGHT

We aim to be valued for our trustworthiness

Building “true competitiveness”

We want to build a sense of unity

The Toyota Production System (TPS)
TPS encourages the complete elimination of waste, overburdening, and irregularities from the production process. The system, originally employed in the textile industry, is based on two fundamental concepts: jidoka, which can be loosely translated as “automation with a human touch,” and the Just-in-Time (JIT) principle. Under these concepts, if a problem occurs, the equipment immediately stops running, preventing the manufacture of defective products, and at each stage production is limited to only what is needed, when it is needed, and in the amount needed. > Establish the facts through genchi genbutsu (on-site, hands-on experience) > Stop production lines when a problem occurs and implement corrective and improvement measures
INSIGHT

Genchi Genbutsu (On-Site, Hands-On Experience)
The genchi genbutsu principle refers to much more than merely visiting a site to examine something in situ. It entails understanding and respectfully considering the opinions of on-site individuals as well as of individuals who have extensive relevant knowledge. Genchi genbustu is thus a key concept in the improvement process. Furthermore, the notion of “respect for people” is consistent with Toyota’s founding philosophy, and is underpinned by the concept of thoroughgoing and direct communication.
INSIGHT

Representing a never-ending cycle of progress, the word kaizen encapsulates a spirit of striving for continuous improvement and a refusal to accept the idea that something cannot be made better. Toyota believes that acknowledging the possibility of continuous improvement can make tasks easier and more enjoyable. From an organizational standpoint, kaizen involves the entire workforce while relying on the extensive knowledge, skills, and experience of the people working directly on the process. The concept is based on individuals taking ownership of their work and focusing on what should be done rather than on what can be done. At the same time, the kaizen process is underpinned by thoroughgoing and direct communication. It is essential to follow through once a decision has been made upon thorough deliberation with the participation of all. We consider this a valuable part of our corporate culture. Taiichi Ono (1912-1990), a former Toyota executive vice president and founder of the Toyota Production System, once commented that while the wisdom of humankind was infinite, that wisdom tended to emerge only during periods of adversity. When things are not going well and a better method is discovered, it is critical that To consistently deliver a higher level of quality and competitive products to its customers, Toyota must continue to nurture a corporate culture that places the utmost value on quality, productivity, and cost efficiency. In addition to an unwavering commitment to JIT that underscores our commitment to the development of a short and efficient supply chain, we realize that we must also provide customers with a wide-ranging, comprehensive, and well-organized after-sales service network. From a long-term perspective, we can only stay competitive if we continue to focus on developing human resources, fostering relationships of trust between management and labor, and ensuring that each employee remains committed to conscientious manufacturing. For its part, Toyota will continue to hone its true competitiveness, which provides the underlying strength for its manufacturing platform over the medium to long term. By doing so, we hope to ensure sustainable growth.
INSIGHT

We continue to improve the traditional process of sintering We are striving to cut energy use in half

The nature of the Toyota Production System

A smile from a customer is the sign of a job well done

1 ¥ 3.1 +13. U.183 3.08 ¥ 90.4 % change 2013 vs.294) 14.912.704 315.793.269 6.3 — — +15.309.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 24 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights [1 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Performance (U.428 1.5% 2.79 45.516 (86.49 ¥ 130. 2012 2009 2010 2011 2012 2013 2013 Per Share Data: Net Income (Loss) Attributable to Toyota Motor Corporation*2 Annual Cash Dividends Shareholders’ Equity Stock Information (March 31) Stock Price Market Capitalization (Yen in millions. dollars in millions) ¥ (139.7% ¥30.0 +15.280 35.583.370) 246.166 10.230 — — $377.349.8 +15.0% -1.045 10.062 (14.973 358.9 +3.17 50.550.650.963.252 (508. less Current Portion ¥20.174 *1: U.256.616 6.550. *2: “Net Income attributable to Toyota Motor Corporation”.9% ¥35.011) (394.120 ¥10. dollar amounts have been translated at the rate of ¥94.303.951.888 944.860 ¥16.317 12.05=US$1.00 3.4% ¥29.96 40.570 ¥12.4 +1.377. .037 10.615 (439.261 5.S.23 0.00 3.9 +21.965 10.048.9% ¥30.331.337.41 ¥ 66.937) -4.4 +4. dollars*1 +18.745 ¥12.13) 100.824 $234.359. the approximate current exchange rate at March 31.670 1. dollars*1 in millions 2013 % change 2013 vs.950.994.2 +6.197.407 947.688 17.163 8.876) (71.947 (597.5 — +239.339 (6.8 +80.358 570 72 10.295.216) 408.00 3.184 6.4% ¥29.548 1.915 (560.956 7.483.469 ¥18.101) (436.100 1.556) 283.287 10.324 1. Including Current Portion of Long-Term Debt Long-Term Debt.860) (4.064.564.456 2.559 2.993.21 50.S.751 ¥ 3.S.277 ¥22.00 3. 2012 Fiscal years ended March 31 Net Revenues: Automotive Financial Services All Other Inter-Segment Elimination Operating Income (Loss): Automotive Financial Services All Other Inter-Segment Elimination Net Income (Loss) Attributable to Toyota Motor Corporation*2 ROE ROA As of March 31 Total Assets Toyota Motor Corporation Shareholders’ Equity Short-Term Debt.279 85.S.449.015.371 5.268 $ 51.67 $178.320 1.089) 468.1 +27.184.820 53.00 3.818.947) 9.020 U.570 18.351 ¥ 4.529.438 42.757.301.1 +36.320.237 78. equivalent to “Net Income” up to 2009.281 129.181) 209.927 (8.51 ¥ 303.997 7.78 +236.192 20.82 90.757.409 ¥18.220 Yen ¥18.973 17.748 962.1 +36. GAAP) Millions of yen 2009 2010 2011 2012 2013 U.752 ¥ 3.207 6.S.332.447 11.477) 147.683 306.7 — +271.208. 2013.653 16.192.245.546 1.419.205 972.30 $ 3.723 5.723 1.627 21.039) 1.148.317.648) (461.109 12.132) 355.1% 0.836 6.350 ¥11.042.170.7 +20.792 ¥ 3.913 (4.242 (11.497.7% 0.035 6.835.9% 1.066.461 (592.100.337.601 217.045 3.166 72.062.061.

000 12.000 750 500 250 0 -250 -500 FY (%) 20 15 10 5 0 -5 -10 b Net Revenues: b Operating Income b Net Income Attributable to Toyota Motor Corporation ¥22.500 1.9* ’13 17.3 +28.7 160.0 ’13 +24.000 9. Oceania and Africa Note: Fiscal years ended March 31 .000 20.000 283.000 6.000 0 FY ’12 -207.000 6.9 FY2012 FY2013 ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 Operating Income by Region (¥ Billion) * Figures for North America exclude valuation gains/losses from interest rate swaps.0 Increase in Expenses. Plant and Equipment (¥ Billion) 1.8 Income Taxes.3%) Analysis of Net Income Attributable to Toyota Motor Corporation (¥ Billion) Net Income Attributable to Toyota Motor Corporation (+678.5 Equity in Earnings of Affiliated Companies +33.000 3.3) ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 Marketing Efforts +650.6) Operating Income (965.064.2) Excluding Valuation Gains/Losses from Interest Rate Swaps (+952.9 133.000 0 -10.7 ’12 376.1 ˾˾ Total Assets bb ROA (¥ Billion) 40.000 9.2* ’13 ’12 188.000 (%) 15 10 Net Income (Loss) Attributable to Toyota Motor Corporation/ROE ˾˾ Net Income (Loss) Attributable to Toyota Motor Corporation bb ROE (¥ Billion) 1.0 Other +15.7 ’13 108. etc.000 10.8 ’12 Japan North America Europe Asia ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 Central and South America.5 Cost Reduction Efforts +450.1 billion ( +18.3 Japan North America Europe Asia Other Regions +783.7 ’12 +8.000 5. etc. -300.1 billion (+239.8 billion (+271. Plant and Equipment (excluding vehicles and equipment operating leases) ˾˾ R&D Expenses ˾˾ Capital Expenditures for Property.6 26.000 500 10.4 ’13 +119.000 30.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 25 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights [2 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Performance (U.000 20.320.7%) 1.2 256.000 0 FY 0 -500 0 -5 5 (¥ Billion) 1.000 15.” equivalent to “Net Income” up to 2009. Net Revenues by Region (¥ Billion) 15. GAAP) Net Revenues Operating Income (Loss)/ Operating Income Ratio ˾˾ Operating Income (Loss) bb Operating Income Ratio (¥ Billion) 25.0 Effects of FOREX Rates +150. -325.000 0 FY (%) 50 40 30 20 0 10 0 962.000 12. R&D Expenses/Capital Expenditures for Property.0 576.2 NonOperating Income +5.0 Note: “Net Income Attributable to Toyota Motor Corporation.4%) 962.200 900 600 300 0 FY Total Assets/ROA Toyota Motor Corporation Shareholders’ Equity/ Shareholders’ Equity to Total Assets ˾˾ Toyota Motor Corporation Shareholders’ Equity bb Shareholders’ Equity to Total Assets (%) 8 6 4 2 0 -2 (¥ Billion) 15.000 3.S.500 1.

000 6.871 thousand units 18.0% ’09 ’10 ’11 ’12 ’13 [Reference] Vehicle Sales > Consolidated vehicle unit sales in Japan and overseas came to 8.567 3.395 2. 2013.338 372 1.5 +26. Vehicle Sales * There are certain exceptional cases that do not follow the aforementioned flow.9 +7. 92.956 2.872 798 1.000.031 796 1. or 20.422 1. including the Daihatsu and Hino brands. Lexus vehicle unit sales in Japan.0 +21.924 205 100 148 8.000.692. year on year.871.3% ’09 ’10 ’11 ’12 ’13 Vehicle Sales by Region ˾ Japan ˾ Overseas Total (Thousands of units) 10. representing a record market share of 48.000 8. higher than the previous fiscal year. By geographic region.255 281 248 209 569 6 7.698 2.2% 2.237 3.169 1.8% 9.000.000.7%.275 383 1.000.000 0 FY 19.5 +21.281 1.000 0 FY 4.0 +34.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 26 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights [3 of 3] Review of Operations Management and Corporate Information Financial Section Investor Information Consolidated Performance Highlights Consolidated Vehicle Production and Sales Thousands of units Fiscal years ended March 31 2009 2010 2011 2012 2013 % change 2013 vs. Toyota and Lexus vehicle unit sales (retail) was 1. or 11.721 3.000 FY2013 49.308 3.000.9 +26.5 -2. 270.796 919 482 947 151 130 167 7.255 2.945 5.435 2.098 858 979 231 251 184 466 7 7.279 6.871 +8. > Total vehicle unit sales (retail).2%. Europe.000 6. up 162.000 8. compared with the previous fiscal year.612. and other were about 42. .2 % 22.5 +20. Asia.3%.212 1.358.448 1. or 16.000.519.042 433 1.5 -3.000 in the fiscal year ended March 31.5 +34.0% 27.000.677 368 1.592 2.684 364 271 259 741 5 8. Excluding mini-vehicles.4%. reaching 9.622 2. 43.6%. or 10.000 Breakdown of Vehicle Sales by Region ˾ Japan ˾ North America ˾ Europe ˾ Asia ˾ Other Regions Consolidated Total: 8.809 2.1% 4.2% 19. up 1.7% FY2013 2.913 5. North America.1%.0 +24.0 +10. 2012 ˾ Japan ˾ Overseas Total Vehicle Production by Region Breakdown of Vehicle Production by Region ˾ Japan ˾ North America ˾ Europe ˾ Asia ˾ Other Regions Consolidated Total: 8.074 2.000.062 905 279 261 289 606 8 7.5 +31.000.021 146 106 105 6.469 799 1.000.071 5.000. respectively.495 1.441 152 93 151 7.352 4. a year-on-year increase of 1.051 1.276 4.9 +33. > Consolidated vehicle unit sales in Japan were 2.7 (Thousands of units) 10. or 20.7 -37.000.1 +26.853 1.344 148 113 133 7. > Consolidated Lexus vehicle unit sales came to approximately 500.327 289 223 214 550 8 7.000 4.0 +17.8 +31.000. and 49.000 5.5% 25. around 85.940 3.698 thousand units Vehicle Production by Region: Japan Overseas Total North America Europe Asia Central and South America Oceania Africa Consolidated Total Vehicle Sales by Region: Japan Overseas Total North America Europe Asia Central and South America Oceania Africa Middle East Other Consolidated Total 4.279. an increase of 208. was also a historic high.9 +0.163 5.

7 +46.093) (4.841) (4.918 ¥(207. Vehicle Sales by Principal Markets Japan (Thousands of units) 4.981.000 ’09 ’10 ’11 ’12 ’13 8. trends mainly in the United States and emerging regions including Asia were firm. Vietnam.222.886 6.476 Other* 1.265 Intersegment elimination/ (5.821.914 5.385. and the Czech Republic Asia: Indonesia.000 5.469 1.000 20.993.000 800 600 400 200 0 -200 -400 FY 2.534 3.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 27 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations Looking at conditions in the automotive market.790 108.574 1.495.105) unallocated amount Operating income (loss): Japan ¥(237. net revenues from automotive operations totaled ¥20. Hungary. During the fiscal year under review. Switzerland.2%.018 North America 6.424.147.129 4. Toyota aggressively introduced new products in Japan and successfully expanded sales thanks to the efforts of dealers nationwide.246 ¥11.462 376.142) ¥576. The fiscal year ended March 31.497 1.604. Belgium. an increase of ¥3.055 133.977 160. Spain.000 barrier in annual global vehicle sales for hybrid cars with cumulative sales exceeding 5.648 Intersegment elimination/ 46.000 8. Sweden.5 billion.7 billion.503 13.000 6.352 6.519 Operating Income (Loss) (¥ Billion) 1.809.284.814 (7.000 2. Denmark. Outside Japan.633) — +19.000 15.423.000.419.000 2.000 5.871 7.122 ¥(362.000 0 FY Source: Toyota Motor Corp.083.655. Note: Market definitions are as follows: Europe: Germany.438) (4. the United Kingdom.186.000 30 20 10 North America (Thousands of units) 20. Toyota’s initial foray into the hybrid market.329 2. Poland.040) 186.128 2.000 1. Portugal.925 26.374.640 +356 +1 +357 +597 Net Revenues by Region: Japan ¥12.000 10.737 ¥11. Taiwan. the Netherlands. 0 CY 0 15. the Company boosted vehicle sales across all regions.396) 339.000 4.409 17.071 2. Oceania.684 1. Africa and the Middle East. Operating income also climbed by ¥923. 2012 Consolidated Vehicle Sales (Thousands of units) 10.429.000 10.673. Austria.000 0 FY ˾˾ Total market sales (excluding mini-vehicles) bb Toyota market share (%) 60 45 30 15 0 Automotive Operations The Company works diligently to produce everbetter cars that exceed expectations in order to deliver products that bring smiles to the faces of people who choose Toyota. and Brunei Darussalam Japan: Mini-vehicles excluded 15.060 Other* 87.947) (5.237 unallocated amount +14. Greece.9 — ’09 ’10 ’11 ’12 ’13 Japan { North America { Europe { Asia  { Other* Note: Fiscal years ended March 31 * Central and South America.000 2. Against this backdrop.000 3.113 Asia 2.175 2. Ireland. In the fiscal year under review.3 +4.220.000 5. Italy.000 8. Finland.490 (32.242) 85. compared with the previous fiscal year. Norway.000 ˾˾ Total market sales bb Toyota market share (%) 40 ’09 ’10 ’11 ’12 ’13 ’08 ’09 ’10 ’11 ’12 Europe (Thousands of units) 25.000 10.274 4. France.000 20.000 4. Malaysia.116 1.760.327 1.719.670.136 4.4 +22.167.882.233) Asia 176.955) 203.0 billion.946 2.861 1.0 — 0 FY ’12 ’13 Change ¥(225.192) Europe (143.986. South Korea.013.303 ¥10.5 +31. the Philippines.872 799 798 1. Thailand.334.1 billion.319 ¥12.000 ˾˾ Total market sales bb Toyota market share Asia (%) 10 8 6 4 2 0 (Thousands of units) 10. the Company broke through the 1.279 +208 2.5 +19.335 221.526 5.000.284 1. etc. 2013 marked the 15th anniversary since the launch of the Prius.527 115.000 0 CY ˾˾ Total market sales bb Toyota market share (%) 25 20 15 10 5 0 Net Revenues (¥ Billion) 25.094.000 0 CY ’08 ’09 ’10 ’11 ’12 ’08 ’09 ’10 ’11 ’12 % change Millions of yen For the years ended March 31 2009 2010 2011 2012 2013 2013 vs.425 Europe 3.000.8 +32.148 312.1 +48. year on year to ¥944.531) North America (390.796 256.744 (13. . or 20.000 +1.049 1.416.900 1.586.751.327 3. Singapore.

operating income climbed ¥9. or 6. In such major markets as Europe and the United States.8 billion 34 countries and regions worldwide approx.0 million customers in 34 countries and regions worldwide. TFS continued to broaden its connections with customers in Japan.170.6 billion. From a profit perspective.231. 2013) Net Revenues (¥ Billion) 1. such as IT platform development and human resource cultivation in management.6 billion ¥315. TFS will strengthen groupwide compliance and risk management structures while focusing on enhancements to its business platform. TFS provides financial services primarily for vehicle purchases and leases to approximately 9. Delhi. handled by Toyota Financial Services Corporation (TFS). During the period under review. or 3. 2013. Financial Services Operations Toyota offers automotive financing and a variety of other financial services for total support of customer lifestyles. and Mumbai. up ¥70. year on year to ¥315. Overseas.8 billion.3 billion. This upswing in operating income was largely attributable to the increase in financing volume.4 billion ¥1. After establishing a local subsidiary in India in May 2011. the Company took proactive steps to develop business in emerging markets. which has overall control of financial services subsidiaries worldwide. we continued with last year’s efforts to strengthen regional strategies by enhancing our relationships with distributors through the provision of financial products and services meeting various national and regional customer characteristics.170. To respond to dramatic changes in the business environment.500 1. In the fiscal year ended March 31. responding to their needs by offering ready access to sound financial services Overview of Toyota’s Financial Services Operations Total assets Net revenues Operating income Operating areas Number of employees (As of March 31. TFS aims to ensure stable earnings by working to secure margins and achieve thorough low-cost operations with consideration for vehicle sales support and the balancing of business risks. compared with the previous fiscal year. operations commenced in earnest from June 2012.200 900 600 300 0 FY such as credit cards and housing loans in addition to automotive financing. In the ensuing period.1%.000 ’09 ’10 ’11 ’12 ’13 Financial Services Operations Organization Operating Income (¥ Billion) 400 300 Total Assets ˾˾ Toyota (Consolidated) ˾˾ TFS (¥ Trillion) 35 30 25 200 100 0 -100 FY 20 15 10 5 0 ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 Note: Fiscal years ended March 31 Note: Fiscal years ended March 31 .4%.3 billion. net revenues from financial service operations amounted to ¥1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 28 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations Toyota’s financial services operations are primarily expanded its business in such major cities as Bangalore. 9. TFS has successfully ¥16.

net revenues from non-automotive business operations were ¥1. an information service for onboard terminals. thereby contributing to sustainable economic development. Based on such data. higher than the previous fiscal year. mainly for expressway use.5 billion. and assist disaster relief measures. rental offices.” a new kind of service utilizing big data that collects and stores traffic information via telematics services. provide map information services.6 billion.200 1. Toyota upgraded its existing “smart G-BOOK” telematics service for smartphones to allow private users access to “Big Data Traffic Information Service” content. compatible with the ITS Spot Service. or 1. housing.5 billion. and features “T-Probe” traffic information (available for the first time on systems other than official Toyota on-board navigation systems) that enables tailored route calculation taking traffic congestion into account. from driving to walking. such as actively participating in public and private sector field trials. an onboard navigation system for public highways.000 sales outlets (vehicle dealers. Moving forward. Toyota is has also been engaged in the promotion of functions and services that link cars and mobile phones. we helped create a practical vehicleinfrastructure cooperative system for safe driving that prevents traffic accidents more effectively than current safety technologies. information on roads that remain open as well as evacuation sites.066. ĭ Read more Net Revenues (¥ Billion) 1. traffic information. with other telematics services planned for China and other countries. such as hands-free telephones and G-BOOK services. we are seeking ideas for new businesses outside the Toyota group of companies as another key aspect in the creation of future core businesses. marine. information technology and telecommunications. e-TOYOTA. we are developing G-BOOK/G-Link.4 billion. Also. year on year to ¥53.” The Company is dedicated to building safe communities while supporting infrastructure that is resilient to disasters. We view this technology as a valuable way to link motor vehicles and transportation infrastructures. ĭ Read more TOPICS New “Big Data Traffic Information Service” Toyota developed the “Big Data Traffic Information Service. and biotechnology and afforestation businesses. The upgraded service features full support for a range of mobility options. In conjunction with this. b e-TOYOTA Toyota is developing e-TOYOTA business operations to facilitate the integration of IT services and automobiles. and L&F offices) throughout Japan. and other related information can be provided to local governments and businesses to aid traffic flow improvement. cars and homes. In the fiscal year under review. Toyota is also engaging in R&D for vehicle infrastructure cooperative systems. and other facilities can be accessed at any time free of charge. Operating income also improved ¥11. Also. In the field of telematics. We designed and developed the GAZOO members-only automobile portal site.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 29 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations [1 of 3] Non-Automotive Business Operations Non-automotive business operations include Intelligent Transport Systems (ITS).000 800 600 400 200 0 FY ’09 ’10 ’11 ’12 ’13 equipped with this device. and in 2012 launched the eCONNECT for the new Prius PHV and the Toyota Friend service. b Intelligent Transport Systems Toyota is involved in the planning and development of products and services for Intelligent Transport Systems (ITS). ¥17. We will continue to increase the number of models b Information Technology and Telecommunications Toyota dealers also serve as sales points for mobile phones and point-to-point telecommunications services provided by KDDI Corporation at more than 7. Toyota developed an onboard communications device. Toyota’s information technology and telecommunications business will come to play an even more important role as we develop smart grids that link people. In 2009. so as to bring them into use as soon as possible. a threedimensional virtual city called METAPOLIS and other services. in 2011 Toyota commercialized the Driving Safety Support System (DSSS). or 27. At the same time. Toyota is committed to providing increasingly convenient total life services by promoting the widespread use of its “Big Data Traffic Information Service” as well as such linked services as the new “smart G-BOOK. parts dealers. In each of these operations we are fostering a workplace culture that encourages creativity and entrepreneurship. In disaster situations.5%. shelters. statistics. ĭ Read more Operating Income (¥ Billion) 60 50 40 30 20 10 0 -10 FY ’09 ’10 ’11 ’12 ’13 Note: Fiscal years ended March 31 .7%.

At the same time. The PONAM-35. ĭ Read more . as well as excellent security. and won the 2011 Good Design Award. Toyota Housing Corporation has expanded to provide homes under the name Toyota Home. we are engaging in a forest restoration model project in the town of Odaicho. All products take full advantage of our engine technologies and other advanced technologies cultivated during years of automotive manufacturing. all housing operation production and technical development functions were transferred from Toyota Motor Corporation to Toyota Housing Corporation. and in November 2011. and Smart Green Wall for wall greening. Toyota is engaging in leading-edge development in a variety of fields. we added to our lineup of ResQ Series manure composting facility deodorizers. In our agricultural biomass operations. which was launched in September 2011.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 30 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations [2 of 3] b Housing Since Toyota entered the housing business in 1975. which provides greening in parking areas. Following previous afforestation and forestry development projects in Australia and the Philippines. We have established a sales subsidiary in China for this business. we began selling “smart houses. marine engines and a variety of marine components. Toyota Housing Corporation offers environmentfriendly homes that conserve and create energy while having the durability to last for many years. In our Greenification Business. environmental greening and agricultural biomass operations. was voted Japan’s 2011 Boat of the Year. such as the operational testing of smart grids. ĭ Read more b Marine Toyota manufactures and sells pleasure boats. health and environmental features. ĭ Read more bBiotechnology and Afforestation Toyota is making every effort to contribute to the creation of a resource recycling society through our afforestation activities. 2010. Note: Effective October 1. as well as our horticultural.” comfortable and economical homes that combine Toyota technologies to link homes and cars. located in Japan’s Mie Prefecture. offering high durability and earthquake resistance. to counteract the urban heat-island phenomenon we offer Smart Green Parking.

Toyota continued its ongoing involvement in the SUPER GT and SUPER FORMULA series in Japan as well as the NASCAR Nationwide Series of races in the United States. every year Toyota participates in the ADAC 24h Rennen Nürburgring. Toyota is striving through GAZOO Racing* to make ever-better cars that satisfy drivers and promote the joy of cars in ways that transcend the role of a typical car manufacturer. * A vehicle-development and motor-sports support program created by GAZOO for people to experience the fun of cars. ĭ Read more . GAZOO gives Toyota test drivers chances to race. and helps in our goal of making ever-better cars through vehicle development. As a part of its unwavering commitment to making ever-better cars. In addition to helping develop human resources well-versed in the making of cars. Employees take part both as drivers and mechanics. Toyota places considerable emphasis on promoting efforts aimed at commercializing models that deliver the fun of driving in the GRMN (GAZOO Racing tuned by MN) and G (G Sports) categories.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 31 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Automotive Operations Financial Services Operations Non-Automotive Business Operations [3 of 3] TOPICS Promoting the Fun of Automobiles Toyota is developing a range of activities to make cars more fun for dedicated motorsports fans as well as for a broader range of car enthusiasts. a 24-hour endurance race in Germany. the Company not only participated in the FIA World Endurance Championship for hybrid vehicles. Furthermore. In 2013. Activities for dedicated motorsports fans Activities for car fans and enthusiasts Aimed at broadening the appeal of car racing and fostering more car enthusiasts. in striving to promote the joy of cars. the Company holds circuit driving programs throughout Japan to allow individuals with no racing experience to easily enjoy the thrills of circuit driving in a safe environment. At the same time. ĭ Read more WEC NASCAR NA NAS A C CAR AR R SUP SUPER UP PE ER RG GT T SUPER SUP UP U PER E FORMULA FOR FO F ORMUL O ULA In 2012. while promoting the allure of cars through grassroots motor sports. Toyota has thus had the opportunity to provide enjoyment and excitement to a great many people. The TOYOTAGAZOO Racing FESTIVAL is one initiative that strives to broaden opportunities in which car fans and enthusiasts can interact. the Company will work diligently to provide even more opportunities for people to enjoy the world of racing. it won several of the series’ races.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

32
Ne x t Risk Factors

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

R&D and Intellectual Property [1 of 2]

Corporate Philosophy

Corporate Governance

Management Team

R&D and Intellectual Property
Toyota R&D is dedicated to the development of attractive, affordable, high-quality products for customers worldwide. The intellectual property that R&D generates is a vital management resource that Toyota utilizes and protects to maximize its corporate value.

b R&D Activities
The overriding goal of Toyota’s technology and product development activities is to minimize the negative aspects of driving, such as traffic accidents and the burden that automobiles have on the environment, and maximize the positive aspects, such as driving pleasure, comfort, and convenience. By achieving these sometimes conflicting goals to a high degree, we want to open the door to the automobile society of the future. To ensure efficient progress in R&D activities, we

3.7% of consolidated net revenues. We worked closely with suppliers to develop components and products more efficiently and took steps to reduce our own R&D expenses. At the same time, we plan to continue making substantial investments in R&D involving forward-looking, leading-edge technologies and the development of products associated with the environment, energy, and safety. These investments are essential to preserving our competitive edge in terms of technologies and products.
ĭ Read more about “History of Technological Development”

b R&D Organization
Toyota operates a global R&D organization with the primary goal of building automobiles that precisely meet the needs of customers in every region of the world. In Japan, R&D operations are led by Toyota Central Research & Development Laboratories, Inc., which works closely with Daihatsu Motor Co., Ltd., Hino Motors, Ltd., Toyota Auto Body Co., Ltd., Toyota Motor East Japan, Inc., and many other Toyota Group companies. Overseas, we have a worldwide network of technical centers as well as design and motorsports R&D centers.

R&D Guiding Principles b Providing clean and safe products and enhancing the quality of life of people everywhere through all our activities. b Pursuing advanced technological development in a wide range of fields, we pledge to provide attractive products and services that respond to the needs of customers worldwide.

coordinate and integrate all phases, from basic research to forward-looking technology and product development. With respect to such basic research issues as energy, the environment, information technology, telecommunications, and materials, projects are regularly reviewed and evaluated in consultation with outside experts to achieve efficient R&D cost control. And with respect to forward-looking, leading-edge technology and product development, we establish cost-performance benchmarks on a project-by-project basis to ensure efficient development investment.
Development theme discovery Research on basic vehicle-related technology Basic research Forward-looking and leading-edge technology development

b Domestic and Overseas R&D Bases
Facility Name Japan
Head Office Toyota Technical Center Higashi-Fuji Technical Center Tokyo Design Research & Laboratory Shibetsu Proving Ground Toyota Central Research & Development Laboratories, Inc. Product Planning, Design, Vehicle Engineering and Evaluation Advanced Engineering Research of Advanced Styling Designs Vehicle Testing and Evaluation Basic Research Toyota City, Aichi Prefecture Susono City, Shizuoka Prefecture Hachioji City, Tokyo Shibetsu City, Hokkaido Nagakute City, Aichi Prefecture

Activities

Location

R&D Expenses
(¥ Billion) 1,000 800 600 400 200 0 FY

Head Office Toyota Technical Center

Higashi-Fuji Technical Center

Tokyo Design Research & Laboratory

Shibetsu Proving Ground

Technological breakthroughs Development of leading-edge components related to and systems ahead of competitors components and systems Primary responsibility for new model development Development of all-new models and existing-model upgrades

Toyota Central Research & Development Laboratories, Inc.

Facility Name USA
Toyota Motor Engineering & Manufacturing North America, Inc. Calty Design Research, Inc.

Activities
Product Planning, Vehicle Engineering and Evaluation, Basic Research Design

Location

Michigan, California, Arizona, Washington DC Newport Beach, California Ann Arbor, Michigan

Product development

b R&D Expenditures
In fiscal 2013, R&D expenses totaled ¥807.4 billion,
’09 ’10 ’11 ’12 ’13

up 3.5% from the previous fiscal year, representing

Toyota Motor Engineering & Manufacturing North America, Inc.

Calty Design Research, Inc.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

33
Ne x t Risk Factors

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

R&D and Intellectual Property [2 of 2]

Corporate Philosophy

Corporate Governance

Management Team

R&D and Intellectual Property
Facility Name Europe
Toyota Motor Europe NV/SA Toyota Europe Design Development Toyota Motorsport GmbH (TMG) Vehicle Engineering and Evaluation Brussels, Belgium; Derby, U.K. Design Nice, France Development for Motorsport Vehicles, Cologne, Germany Advanced Engineering

Activities

Location

b Intellectual Property
Intellectual Property Guiding Principle b Securing greater corporate flexibility and maximizing corporate value through the appropriate acquisition and utilization of intellectual property.

b Intellectual Property Strategies
Toyota carefully analyzes patents and the need for patents in each area of research to formulate more effective R&D strategies. We identify R&D projects in which Toyota should acquire patents, and file relevant applications as necessary to help build a strong global patent portfolio. In addition, we want to contribute to sustainable mobility by promoting the spread of technologies with environmental and safety benefits. This is why we take an open stance to patent licensing and grant licenses when appropriate terms are met. A good example of this policy is the licensing to other companies of patents in the area of hybrid technology, which is one of our core technologies involving environmental energy.

Toyota Motor Europe NV/SA

Toyota Europe Design Development

Toyota Motorsport GmbH (TMG)

b Intellectual Property Activities
Toyota’s competitiveness springs from the forwardlooking R&D stance that is instrumental to core strengths associated with products and technologies. Underlying each new product that emerges from R&D, there are always intellectual properties such as inventions and expertise that we value as important management resources.

Facility Name China
Toyota Motor Engineering and Manufacturing (China) Co., Ltd. Tianjin FAW Toyota Motor Co., Ltd. FAW Toyota R&D Center GAC Toyota Motor Co., Ltd. R&D Center

Activities
Basic Research, Technical Research and Vehicle Evaluation Vehicle Engineering and Evaluation Vehicle Engineering and Evaluation

Location

Jiangsu Tianjin Guangdong

b Intellectual Property Systems
R&D and intellectual property activities are organizationally linked to enable us to focus on selected development themes and build a strong patent portfolio.
Toyota Motor Engineering and Manufacturing (China) Co., Ltd. FAW Toyota Research & Development Co., Ltd. GAC Toyota Motor Co., Ltd. R&D Center

We have established an Intellectual Property Committee made up of individuals involved with management, R&D, and intellectual property. This committee acquires and utilizes important intellectual property that contributes to business operations and helps determine policies for management risks associated with intellectual property.

Facility Name Asia Pacific
Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. Toyota Technical Center Asia Pacific Australia Pty., Ltd.

Activities

Location

Vehicle Engineering and Evaluation Vehicle Engineering and Evaluation

Samutprakarn Province, Thailand Melbourne, Australia

Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd.

Toyota Technical Center Asia Pacific Australia Pty., Ltd.

ĭ See Domestic and Overseas R&D Bases

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

34
Ne x t Risk Factors

Toyota Global Vision
Pre v

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information

Financial Section

Investor Information

R&D and Intellectual Property

Corporate Philosophy

Corporate Governance

Management Team

Corporate Philosophy
{ Seeking Harmony between People, Society and the Global Environment, and Sustainable Development of Society through Manufacturing Since its foundation, Toyota has continuously strived to contribute to the sustainable development of society through the manufacturing and provision of innovative, high-quality products and services that lead the times. The automobile is a wonderful machine that provides freedom of movement. Nevertheless, automobiles have an impact on the environment and society. This is something we at Toyota always keep in mind, and we try to create harmony among people, societies and the environment by listening to what our customers and local communities have to say. Our operations are aimed at creating a sustainable society through monozukuri (conscientious manufacturing). Toyota develops and produces environment-friendly vehicles such as hybrid vehicles, and we also offer superior accident prevention and collision safety features. In addition, Toyota is involved in new businesses, such as biotech, afforestation and renewable
Positioning of the CSR Policy

{ The Spirit of the Toyoda Precepts, Passed down since Toyota’s Founding The Toyoda Precepts represent the essential philosophy of the founder of the Toyota group of companies, Sakichi Toyoda, and are a source of spiritual support for Toyota employees.

energy. The pillars of our social contribution are “environment,” “traffic safety,” and “human resources development.” Toyota seeks to be of value to communities and to society through our main lines of business, and to bring smiles to people’s faces. Toyota’s basic Corporate Social Responsibility (CSR) policy is to contribute to the sustainable development of society. This phrase embodies the spirit of the Toyota Guiding Principles, and clarifies our CSR stance for our stakeholders, both within and outside the company. Toyota subsidiaries and suppliers share this CSR policy, and we expect them to adhere to the spirit of the policy in their operations. Toyota also participated in the formulation of the Charter of Corporate Behavior of the Nippon Keidanren (Japan Business Federation), which is an alliance of Japanese leading corporations, and observes the standards outlined therein.
Overview of Toyota’s CSR Activities

The Toyoda Precepts
• Always be faithful to your duties, thereby contributing to the company and to the overall good. • Always be studious and creative, striving to stay ahead of the times. • Always be practical and avoid frivolousness. • Always strive to build a homelike atmosphere at work that is warm and friendly. • Always have respect for spiritual matters, and remember to be grateful at all times.

{ Toyota Guiding Principles The Toyota Guiding Principles (adopted in 1992 and revised in 1997) reflect the kind of company that Toyota seeks to be in light of the unique management philosophy, values, and methods that it has embraced since its foundation. Toyota, along with its consolidated subsidiaries, seeks to contribute to the continuous development of human society and of the planet through its businesses based on understanding and sharing the Toyota Guiding Principles.

1. Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world. 2. Respect the culture and customs of every nation and contribute to economic and social development
Safety Environment

through corporate activities in their respective communities. 3. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. 4. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. 5. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management. 6. Pursue growth through harmony with the global community via innovative management. 7. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

Social Aspect

Environmental Aspect

Toyota Way 2001

Comfort and Convenience

Economic Aspect

Resources/ Energy Sources

Toyota’s Social Contribution Activities Societal Issues

ĭ Read more

We believe that in carrying this out. and realize the Toyota Global Vision. and Unit Center (engine. and by supplying products that will satisfy our customers. such as stock exchange regulations. involving the supervision and auditing of the execution of business by our Board of Directors (including Outside Directors) and Audit & Supervisory Board Members (including Outside Audit & Supervisory Board Members). We believe that our current system. Toyota No. are used as references in making such appointments.” which aim to exceed customer expectations by the development of ever-better cars and enriching the lives of societies. In April 2013. in order to achieve sustainable growth { Toyota’s Basic Policy on Corporate Governance { Corporate Governance System through the continuous development of even-better cars that exceed customer expectations around the Toyota has positioned the stable long-term growth of corporate value as a top-priority management issue. the Company believes that such appointments are appropriate since various rules on independence. Toyota adopted and presented the CSR Policy “Contribution towards Sustainable Development. While Toyota currently does not have its own standard or policy on independence in appointing Outside Directors. receives advice on a wide range of management issues from a global perspective. At the 109th Ordinary General Shareholders’ Meeting held in June 2013. including commitment to manufacturing. Toyota No.” This is based on values that have guided Toyota since its founding. Toyota made organizational changes with the aim of further increasing the speed of decision making by clarifying responsibilities for operations and earnings. In March 2011.” an interpretation of the “Guiding Principles at Toyota” that organizes the relationships with its stakeholders. including the “Labor-Management Council. and employees. We believe our Outside Directors will advise us in our management decision-making process based on their broad experience and insight in their respective fields of expertise. three Outside Directors were appointed in order to further reflect the opinions of those from outside the Company in management’s decisionmaking process. an organization directly under Toyota’s top management. and has endeavored to swiftly communicate the views of customers and information from operations on-ground to management and facilitate rapid management decision making. We believe it is important to put in place a system that enables customer opinions and on-site information to be swiftly communicated to management in order to make a prompt management decision. Toyota announced the “Toyota Global Vision” and commenced “Visionary Management. such as the “Guiding Principles at Toyota” and the “Toyota Way.” which is a statement of Toyota’s fundamental business policies. the TNGA Planning Division. and. Asia & the Middle East. it is essential that we achieve long-term and stable growth by building positive relationships with all stakeholders.” In order to manage and implement important activities for fulfilling social responsibilities. .” Toyota has an “International Advisory Board” consisting of advisors from each region overseas. was established in order to rapidly promote the implementation of the “Toyota New Global Architecture (TNGA).ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 35 Ne x t Risk Factors Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance [1 of 2] Management Team Corporate Governance Additionally. is the most appropriate system for us. Toyota reduced the Board of Directors and decision-making layers. 2 (China. with an emphasis on front-line operations and problem solving based on the actual on-site situation (genchi genbutsu). specifically by dividing the automotive business into the following four units—Lexus International (Lexus business).” and the “Toyota Environment Committee. Latin America & the Caribbean). With respect to our system regarding directors. Africa.” at the core consisting of directors at the executive vice president level and above as well as representatives of the Audit & Supervisory Board. This position is reflected in the “Guiding Principles at Toyota. and enables us to review whether such management decisions are accepted by our customers and society. and other “unit”-related operations)—and an Executive Vice President was put in charge of the operations of each unit in order to realize organizational change that supports operations and earnings responsibility. transmission. local communities. Also. East Asia & Oceania. the Company has a wide variety of conferences and committees for deliberations and the monitoring of management and corporate activities that reflect the views of various stakeholders. including shareholders and customers as well as business partners. We are working to enhance corporate governance through a variety of measures designed to further increase our competitiveness as a global company. 1 (North America. the Joint LaborManagement Round Table Conference. { Management Transparency world. In order to fulfill the Toyota Global Vision. and to be rewarded with a smile that ultimately leads to a stable base of business. we believe that it is important to elect individuals that comprehend and engage in our strengths. TMC has established the “CSR Committee. In addition. as appropriate. Toyota’s current management structure is based on the structure introduced in April 2011. Europe and Japan).

has created and maintained a sound corporate climate based on the “Guiding Principles at Toyota” and the “Toyota Code of Conduct. Toyota has established the Disclosure Committee chaired by an officer of the Accounting Division.” and the status of accounting audits is reported by independent External Auditors to the Audit & Supervisory Board Members (including Outside Audit & Supervisory Board Members) through the Audit & Supervisory Board. Toyota will continue to promote the “Toyota Code of Conduct” which is a guideline for the behavior and conduct of employees of Toyota and its consolidated subsidiaries (together “Toyota”) all around the world. and takes measures to ensure that Toyota is aware of significant information concerning legal compliance as quickly as possible. and timely disclosure of information. Toyota has adopted an auditor system. In addition. the three auditing functions—audit by Audit & Supervisory Board Members. legal compliance. and accounting audit by Independent External Auditors— aid in conducting an effective and efficient audit through meetings held periodically and as necessary to share information and come to understanding through discussion on audit plans and results. Emphasizing Front-line Operations + Multidirectional Monitoring . are used as references in making such appointments.S. and also holds Toyota’s Corporate Governance { Basic Policy Regarding the System to Secure the Appropriateness of Business Toyota.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 36 Ne x t Risk Factors Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance [2 of 2] Management Team Corporate Governance Toyota currently does not have its own standard or { Compliance policy on independence in appointing Outside Audit & Supervisory Board Members.S. The Committee holds regular meetings for the purpose of preparing. which enables them to consult with an outside attorney. that such appointments are appropriate since various rules on independence.” In order to ensure the accurate. Toyota has created a number of facilities for employees to make inquiries concerning compliance matters. risk management. fair. The Outside Audit & Supervisory Board Members advise Toyota from a fair and neutral perspective. Toyota has engaged in timely and fair disclosure of corporate and financial information as stated in the CSR Policy “Contribution towards Sustainable Development. In addition. based on their broad experience and insight in their respective fields of expertise. reporting. Toyota will work to advance corporate ethics through training and education at all levels and in all departments. While ĭ Read more { Accountability extraordinary committee meetings from time to time whenever necessary. To enhance the system for internal audits. including the Compliance Hotline. and Form 20-F under the U. such as stock exchange regulations. Securities Exchange Act. Seven Audit & Supervisory Board Members (including four Outside Audit & Supervisory Board Members) play a role in Toyota’s corporate governance efforts by undertaking audits in accordance with the audit policies and plans determined by the Audit & Supervisory Board.” Toyota integrates the principles of problem identification and continuous improvement into its business operation process and makes continuous efforts to train employees who will put these principles into practice. and social contribution and also develops action plans concerning these issues. In order to enhance the reliability of the financial reporting of Toyota. the Company believes The CSR Committee reviews important issues relating to corporate ethics. Toyota has secured the personnel and framework supporting the audit by Audit & Supervisory Board Members. and assessing its annual securities report. quarterly report under the Financial Instruments and Exchange Law of Japan. SarbanesOxley Act and Article 24-4-4 (1) of the Financial Instruments and Exchange Law of Japan. The state of internal controls and internal audits are reported to Audit & Supervisory Board Members (including Outside Audit & Supervisory Board Members) through the Audit & Supervisory Board and the “CSR Committee. a specialized organization made independent of direct control by the management evaluates the effectiveness of the system to secure the appropriateness of documents regarding financial calculation and other information in accordance with Section 404 of the U. together with its subsidiaries. internal audit.

Member of the Board Mamoru Furuhashi ’73 ’03 ’07 ’11 Joined TMC Managing Officer Senior Managing Director Director and Senior Managing Officer Kiyotaka Ise ’80 Joined TMC ’07 Managing Officer ’13 Senior Managing Officer Koei Saga ’77 Joined TMC ’08 Managing Officer ’12 Senior Managing Officer Shigeki Terashi ’80 Joined TMC ’08 Managing Officer ’13 Senior Managing Officer Member of the Board Member of the Board Member of the Board Member of the Board Yoshimasa Ishii ’76 ’05 ’09 ’11 Joined Toyota Motor Sales Co. Ltd. Agency for Natural Resources and Energy ’06 Retired from the same ’08 Advisor to TMC ’09 Managing Officer ’10 Senior Managing Director ’11 Director and Senior Managing Officer ’12 Executive Vice President Executive Vice President.. ’03 Managing Officer of TMC ’07 President of Toyota Administa Corporation ’07 Advisor to TMC ’09 Senior Managing Director ’11 Senior Managing Officer ’12 Executive Vice President Yasumori Ihara ’75 ’04 ’07 ’09 ’11 Joined Toyota Motor Sales Co. T. Member of the Board Takeshi Uchiyamada ’69 Joined Toyota Motor Corporation (“TMC”) ’98 Director ’01 Managing Director ’03 Senior Managing Director ’05 Executive Vice President ’12 Vice Chairman Akio Toyoda ’84 ’00 ’02 ’03 ’05 ’09 Joined TMC Director Managing Director Senior Managing Director Executive Vice President President Satoshi Ozawa ’74 ’03 ’07 ’10 Joined Toyota Motor Sales Co.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 37 Ne x t Risk Factors Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance Management Team [1 of 2] Management Team (As of June 14. Mark.. Member of the Board Senior Managing Officer. Hogan* ’73 Joined General Motors Corporation ’02 Vice President of General Motors Group ’04 President of Magna International Inc. Member of the Board Mitsuhisa Kato ’75 ’04 ’06 ’10 ’11 ’12 Joined TMC Managing Officer Advisor Senior Managing Director Senior Managing Officer Executive Vice President Masamoto Maekawa ’73 Joined Toyota Motor Sales Co. Managing Officer Advisor Senior Managing Director Director and Senior Managing Officer Seiichi Sudo ’74 ’03 ’08 ’12 Joined TMC Managing Officer Advisor Senior Managing Officer Member of the Board Senior Managing Officer. Ltd. Ltd. Managing Officer Senior Managing Director Executive Vice President Nobuyori Kodaira ’72 Joined Ministry of International Trade and Industry ’04 Director-General. Managing Officer of TMC Senior Managing Director Senior Managing Officer Ikuo Uno* ’59 Joined Nippon Life Insurance Company ’97 President and Representative Director of the same ’05 Chairman and Representative Director of the same ’11 Advisor to the same Haruhiko Kato* ’75 Joined Ministry of Finance (Japan) ’09 Director-General of National Tax Administration Agency ’11 President and CEO of Japan Securities Depository Center. Member of the Board Executive Vice President. 2013) Board of Directors Chairman of the Board President. Inc... Ltd. Member of the Board Senior Managing Officer. ’08 President and CEO of The Vehicle Production Group LLC ’10 President of Dewey Investments LLC * Outside Director .

Ltd. ’93 President of the same ’00 Chairman of the same ’06 Outside Audit & Supervisory Board Member of TMC ’06 Executive Advisor to Matsushita Electric Industrial Co. Ltd. Ltd. Ltd.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 38 Ne x t Risk Factors Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance Management Team [2 of 2] Management Team (As of June 14.. ’05 Special Advisor to Sumitomo Mitsui Banking Corporation ’06 Outside Audit & Supervisory Board Member of TMC ’10 Honorary Advisor to Sumitomo Mitsui Banking Corporation Kunihiro Matsuo ’68 Prosecutor of Tokyo District Public Prosecutors Office ’04 Prosecutor General of Supreme Public Prosecutors Office ’06 Registered as attorney ’07 Outside Audit & Supervisory Board Member of TMC Yoko Wake ’70 Joined The Fuji Bank. Limited ’93 Professor of Faculty of Business and Commerce of Keio University ’11 Outside Audit & Supervisory Board Member of TMC .. 2013) Outside Audit & Supervisory Board Members Full-Time Audit & Supervisory Board Member Yoichiro Ichimaru ’71 ’01 ’03 ’05 ’09 ’11 Joined Toyota Motor Sales Co.. Ltd.. ’06 Audit & Supervisory Board Member of TMC Masahiro Kato ’75 Joined TMC ’09 Managing Officer ’11 Audit & Supervisory Board Member Outside Audit & Supervisory Board Member Yoichi Morishita ’57 Joined Matsushita Electric Industrial Co. Ltd. Director of TMC Managing Officer Senior Managing Director Executive Vice President Audit & Supervisory Board Member Masaki Nakatsugawa ’76 Joined Toyota Motor Sales Co. ’97 President of Sakura Bank. ’12 Special Corporate Advisor to Panasonic Corporation Akishige Okada ’63 Joined Mitsui Bank. ’01 Chairman of Sumitomo Mitsui Banking Corporation ’02 Chairman of Sumitomo Mitsui Financial Group Inc.

Each of the markets in which Toyota competes has been subject to considerable volatility in demand. at competitive prices. however. economic conditions are moderately recovering due to factors such as increased Toyota’s future success depends on its ability to offer new innovative competitively priced products that meet customer demand on a timely basis. There is no assurance. safety. as the automotive market is rapidly transforming in light of the changing global economy. including cost reduction capacity. while there continues to be some signs of weakness. economic conditions in such markets are particularly important to Toyota. Such shifts in demand for automobiles is continuing.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 39 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance Management Team Risk Factors [1 of 3] Risk Factors Operational and other risks faced by Toyota that could significantly influence the decisions of investors are set out below. meeting rapidly changing customer preferences and demand is more fundamental to Toyota’s success than ever. Meeting customer demand by introducing attractive new vehicles and reducing the amount of time required for product development are critical to automotive manufacturers. Demand for vehicles depends to a large extent on social. the economic environment is gradually recovering. safety and reliability. safety. sources of raw materials and parts and components. In the United States. The worldwide automotive market is highly competitive. and the rate of economic growth is slowing down in emerging economies. Toyota’s financial condition and results of operations may be adversely affected if the shifts in demand for automobiles continues or progresses further. the amount of time required for innovation and development. the economic environment continues to remain stagnant due to the ongoing sovereign debt crisis. styling and other features in a timely manner could result in a lower market share and reduced sales volumes and margins. the future. As Toyota’s revenues are derived from sales in markets worldwide. In particular. Toyota faces intense competition from automotive manufacturers in the markets in which it operates. there is no assurance that Toyota will be capable of developing and manufacturing new. competition is likely to further intensify in light of further continuing globalization in the worldwide automotive industry. political and economic conditions in a given market and the introduction of new vehicles and technologies. However. Further. prices of raw materials and parts and components. Increased competition may lead to lower vehicle unit sales. price competitive products in a timely manner with its available technology. However. . import regulation and other taxes). the following does not encompass all risks related to the operations of Toyota. the filing date of Form 20-F. The timely introduction of new vehicle models. Toyota’s ability to adequately respond to the recent rapid changes in the automotive market and to maintain its competitiveness will be fundamental to its future success in existing and new markets and to maintain its market share. reliability. that Toyota will adequately and appropriately respond to changing customer preferences and demand with respect to quality. cost of fuel and governmental reguThe worldwide automotive industry is highly volatile. Demand may also be affected by factors directly impacting vehicle price or the cost of purchasing and operating vehicles such as sales and financing incentives. it is critical to meet lations (including tariffs. consumer spending. and production capacity. Toyota’s inability to develop and offer products that meet customers’ preferences and demand with respect to quality. which may result in a further downward price pressure and adversely affect Toyota’s financial condition and results of operations. Although the global economy is gradually recovering. reliability. Volatility in demand may lead to lower vehicle unit sales. Any such risk factors could influence the decisions of investors. Even if Toyota succeeds in perceiving customer preferences and demand. There are risk factors other than those given below. safety. Factors affecting competition include product quality and features. styling and other features in a timely manner. reliability. which may result in downward price pressure and adversely affect Toyota’s financial condition and results of operations. in Europe. customer service and financing terms. pricing. In addition. intellectual property. fuel economy. The forwardlooking statements included below are based on information available as of June 24. competition in the automotive industry has further intensified amidst difficult overall market conditions. possibly resulting in further industry reorganization. customer demand with respect to quality. In Japan. There can be no assurances that Toyota will be able to compete successfully in { Industry and Business Risks The worldwide automotive market is highly competitive. and it is unclear how this situation will transition in the future. 2013. and may adversely affect Toyota’s financial condition and results of operations. there is no assurance that Toyota will be able to implement capital expenditures at the level and times planned by management.

including sensitive data. adversely affecting its financial condition and results of operations. For some supplies. A loss of any single or limited source supplier or inability to obtain supplies from suppliers in a timely and cost-effective manner could lead to increased costs or delays or suspensions in Toyota’s operations and vehicles rely on various digital and information technologies. liability or regulatory penalties under applicable laws. Toyota’s vehicles may rely on Toyota’s operations are subject to currency and interest rate fluctuations. Toyota’s digital and information technology networks and systems may be vulnerable to damage. Toyota purchases supplies including parts. A decline in Toyota’s vehicle unit sales. Toyota’s financial services operations may adversely affect its financial condition and results of operations. some of which are not within Toyota’s control. disclose sensitive data. If Toyota is unable to effectively maintain and develop its brand image as a result of its inability to provide safe. Such incidents could materially disrupt critical operations. supply chain management. Toyota is sensitive to fluctuations in foreign currency exchange rates and is principally exposed to fluctuations in the value of the Japanese yen. including information service and driving assistance functions. These factors include the ability of Toyota’s suppliers to provide a continued source of supply. and as a result revenues and profits may not increase as expected or were to rely on a large number of suppliers. whose replacement with another supplier may be difficult. various digital and information technologies. components and raw materials from a number of external suppliers located around the world. may decrease. Despite security measures. . Increased competition in automobile financing may lead to decreased margins. There is no assurance that Toyota will be able to develop sales techniques and distribution networks that effectively adapt to changing customer preferences or changes in the regulatory environment in the major markets in which it operates. it is critical to maintain and develop a brand image. Toyota’s success in the sale of vehicles depends on its ability to market and distribute effectively based on distribution networks and sales techniques tailored to the needs of its customers. and utility failures or other catastrophic events like natural disasters. and to manage or support a variety of business processes and activities. If Toyota is unable to adequately respond to the changes and competition in automobile financing. high-quality products or as a result of the failure to promptly implement safety measures such as recalls when necessary. computer viruses. it is necessary to further increase customers’ confidence by providing safe.S. Toyota’s production and deliveries. high-quality products that meet customer preferences and demand. an increase in the ratio of credit losses and increased funding costs are factors which may impact Toyota’s financial services operations. and Toyota’s ability to effectively compete and obtain competitive prices from suppliers. an increase in residual value risk due to lower used vehicle price. the U.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 40 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance Management Team Risk Factors [2 of 3] Risk Factors Toyota’s ability to market and distribute effectively is an integral part of Toyota’s successful sales. Furthermore. service failures or bankruptcy of third parties such as software development or cloud computing vendors. to process. first-tier suppliers with whom Toyota directly transacts may in turn rely on a single second-tier supplier or limited second-tier suppliers. vehicle unit sales and/or sale prices may decrease. Toyota relies on suppliers for the provision of certain supplies including parts. Inability to obtain supplies from a single or limited source supplier may result in difficulty obtaining supplies and may restrict Toyota’s ability to produce vehicles. In order to maintain and develop a brand image. power shortages and outages. and/or give rise to legal claims or proceedings. errors or malfeasance by employees and others who have or gain access to the networks and systems Toyota depends on. which could have an adverse effect on Toyota’s brand image and its financial condition and results of operations. including manufacturing. In addition. Toyota depends on various information technology networks and systems. components and raw materials. dollar { Financial Market and Economic Risks The worldwide financial services industry is highly competitive. some of which are managed by third parties. The worldwide financial services industry is highly competitive. Toyota’s inability to maintain well-developed sales techniques and distribution networks may result in decreased sales and market share and may adversely affect its financial condition and results of operations. which could have an adverse effect on Toyota’s financial condition and results of operations. disruptions or shutdowns due to attacks by hackers. transmit and store electronic information. In the highly competitive automotive industry. interfere with information services and driving assistance functions in Toyota’s vehicles. Toyota’s ability to continue to obtain supplies from its suppliers in a timely and costeffective manner is subject to a number of factors. even if Toyota Toyota’s success is significantly impacted by its ability to maintain and develop its brand image. breaches due to unauthorized use. sales and accounting. research and development. Toyota relies on a single supplier or a limited number of suppliers.

Increases in prices for raw materials that Toyota and Toyota’s suppliers use in manufacturing their products or parts and components such as steel. non-ferrous alloys including aluminum. This could. terrorism. to a lesser extent. Toyota may incur various costs including significant costs for free repairs. and expects to incur in the future. legal proceedings brought by its shareholders and governmental proceedings and investigations. precious governmental regulations. it may adversely affect Toyota’s financial condition and results of operations. Toyota believes that its use of certain derivative financial instruments including foreign exchange forward contracts and interest rate swaps and increased localized production of its products have reduced. the effects of interest rate and foreign currency exchange rate fluctuations. Toyota may. new legislation or changes in existing legislation may also subject Toyota to additional expenses in the future. may lead to higher production costs for parts and components. interruption in social infrastructure including energy supply. or enact price or exchange controls. Toyota is in fact currently subject to a number of pending legal proceedings and government investigations. wars. a number of financial institutions and investors will face difficulties in providing capital to the financial markets at levels corresponding to their own financial capacity. Should the major markets in which Toyota purchases materials. gas. metals. Toyota is subject to various risks associated with conducting business worldwide. If Toyota launches products that result in safety measures such as recalls. and plastic parts. transportation systems. distributed or sold be affected by any of these events. These risks include natural calamities. If Toyota incurs significant costs related to implementing safety measures or meeting laws and governmental regulations. In particular. it may result in disruptions and delays in the operations of Toyota’s business. Toyota may be adversely affected by natural calamities. dollar can have an adverse effect on Toyota’s operating results. Toyota may also be subject to { Political. but not eliminated. The worldwide automotive industry is subject to various laws and governmental regulations including those related to vehicle safety and environmental matters such as emission levels. The automotive industry is subject to various High prices of raw materials and strong pressure on Toyota’s suppliers could negatively impact Toyota’s profitability. the Australian dollar. Many governments also impose tariffs and other trade barriers. political and economic instability. fuel shortages or interruptions in social infrastructure. As an automotive manufacturer. fuel shortages. there is a risk that companies may not be able to raise capital under terms that they would expect to receive with their creditworthiness. terrorism and labor strikes. as a result. taxes and levies. decide to voluntarily implement recalls or other safety measures even if the vehicle complies with the safety standards of relevant laws and governmental regulations. In addition. such as Toyota are required to implement safety measures such as recalls for vehicles that do not or may not comply with the safety standards of laws and governmental regulations. and changes in foreign currency exchange rates may also affect the price of products sold and materials purchased by Toyota in foreign currencies through transaction risk. strengthening of the Japanese yen against the U. or communication systems resulting from natural hazards or technological hazards. Toyota may become subject to legal proceedings in respect of various issues. In particular. If Toyota is unable to raise the necessary capital under appropriate conditions on a timely basis. Toyota’s consolidated financial statements. labor strikes. automotive manufacturers Toyota may become subject to various legal proceedings. fuel economy. Toyota has incurred. water. are affected by foreign currency exchange fluctuations through translation risk. political and economic instability. a negative impact resulting from fluctuations in foreign currency exchange rates and changes in interest rates may adversely affect Toyota’s financial condition and results of operations. A negative outcome in one or more of these pending legal proceedings could adversely affect Toyota’s financial condition and results of operations. Should the world economy suddenly deteriorate. including product liability and infringement of intellectual property. wars. Toyota’s financial condition and results of operations may be adversely affected. noise and pollution. . and. parts and components and supplies for the manufacture of Toyota products or in which Toyota’s products are produced. Should significant or prolonged disruptions or delays related to Toyota’s business operations occur. negatively impact Toyota’s future profitability because Toyota may not be able to pass all those costs on to its customers or require its suppliers to absorb such costs. Regulatory. the Canadian dollar and the British pound. in turn. which are presented in Japanese yen. the Russian ruble. Toyota’s financial condition and results of operations may be adversely affected.S. Furthermore. and work stoppages. significant costs in complying with these regulations. Legal and Other Risks The downturn in the financial markets could adversely affect Toyota’s ability to raise capital.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 41 Ne x t Toyota Global Vision Pre v President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Corporate Philosophy Financial Section Investor Information R&D and Intellectual Property Corporate Governance Management Team Risk Factors [3 of 3] Risk Factors and the euro and. Nonetheless. in order to reassure its customers of the safety of Toyota’s vehicles.

458.909 ¥16.491.865 ¥ 2.255.940 (3.512 ¥24.997.623 ¥19.5% ¥ 2.059.670.312 1.425.709.018.068.171.874.375 8.287 997.560.044.6% 2.360 795.17 ¥ 540.578. GAAP) [1 of 2] Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Management’s Discussion and Analysis of Financial Condition and Results of Operations Notes to Consolidated Financial Statements Selected Financial Summary (U.294.547 36.09 120 3.260 13.904 ¥ 8.717.481 3.870 ¥ 1.931 1.628.3% 2.416 ¥21.844 2.312 609.189 958.216.238.480 (3.527 32.911 812.481.492 ¥ 4.238.637 657.158.997.880 ¥14.483.574.862 760.147 1.430 ¥23.006.338 1.263.820.356 ¥15.196) 419.548 3.790.8% Yen 2006 ¥22.068.664 ¥18.011 5.356.492 ¥ 3.925 1.683 9.335.7% ¥ 3.459 1.727 ¥17.609.65 140 3.408 ¥ 2.948.255 872.753 37.277.092 32.879 14.731.997.495) 242.981.6% 2008 Per Share Data: Net Income (Loss) Attributable to Toyota Motor Corporation (Basic) Annual Cash Dividends Toyota Motor Corporation Shareholders’ Equity Stock Information (March 31): Stock Price Market Capitalization (Yen in millions) Number of Shares Issued (shares) * Excluding vehicles and equipment of operating leases ¥ 342.551.523.567 22.666.776 37.015 ¥21.375.495 1.447.247.730 ¥26.091 ¥18.890 9.1% 2004 ¥17.768.211.734 (2.35 65 2.500.403.6% 1.177 1.754.526 ¥14.950 24.135 ¥11.0% ¥ 2.836.765.480.515.595 5.644.814 1.6% ¥ 2.814.342 8.569.981.032 14.0% 1.456.S.632 2.468.609.382.493 977.882 1.793 681.384 755.768 890.2% ¥ 2.320 5.213 ¥16.67 ¥ 421.228 4.382.087.506.567 ¥ 1.289.213.803 969.757.015 2.910 1.760 ¥13.609.379 36.162.270.492 ¥ 6.990 ¥14.516 898.878.779 6.550 ¥27.304 1.994 ¥23.63 ¥ 512.186.098 15.014.594 ¥11.036.970 ¥17.627.767.790 3.729.097 1.437.490 1.585 1.240 ¥20.498.869.9% 2.178.452.033 716.672.713 ¥ 9.212.2% 2005 ¥20.257.08 ¥ 355.266 1.040.339 ¥ 1. GAAP) Toyota Motor Corporation Fiscal years ended March 31 2004 2005 Yen in millions 2006 2007 2008 For the Year: Net Revenues: Sales of Products Financing Operations Total Costs and Expenses: Cost of Products Sold Cost of Financing Operations Selling.136.90 45 2. General and Administrative Total Operating Income (Loss) % of Net Revenues Income (Loss) before Income Taxes and Equity in Earnings of Affiliated Companies Provision for Income Taxes Net Income (Loss) Attributable to Toyota Motor Corporation ROE Net Cash Provided by Operating Activities Net Cash Used in Investing Activities Net Cash Provided by (Used in) Financing Activities R&D Expenses Capital Expenditures for Property.510 1.173 (3.879.492 ¥ 7.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 42 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.180 14.570 1.648 1.061.997.187 9.782 1.900.701.387 36.609.624 (3.997.153 1.449 28.372.76 90 3.378) 881.370.009.335.282 369.337 364.178 ¥10.279 945.890 3.500) 876.138 2.3% 2007 ¥24.284 3. Plant and Equipment* Depreciation At Year-End: Toyota Motor Corporation Shareholders’ Equity Total Assets Long-Term Debt Cash and Cash Equivalents Ratio of Toyota Motor Corporation Shareholders’ Equity ¥16.223 682.S.97 ¥ 3.492 .222 911.886) 706.640.

3 +239.534. General and Administrative Total Operating Income (Loss) % of Net Revenues Income (Loss) before Income Taxes and Equity in Earnings of Affiliated Companies Provision for Income Taxes Net Income (Loss) Attributable to Toyota Motor Corporation ROE Net Cash Provided by Operating Activities Net Cash Used in Investing Activities Net Cash Provided by (Used in) Financing Activities R&D Expenses Capital Expenditures for Property.49 ¥ 130.830 ¥10.280 34.8 +271.51 ¥ 303.426 2.279 2.083 ¥18.290 312.570 ¥12.024.660 ¥18.163 8. 2012 For the Year: Net Revenues: Sales of Products Financing Operations Total Costs and Expenses: Cost of Products Sold Cost of Financing Operations Selling.5 +15.688 ¥15.30 +236.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 43 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.381) (56.492 ¥ 4.729 1. GAAP) Toyota Motor Corporation Fiscal years ended March 31 2009 2010 Yen in millions 2011 2012 2013 % change 2013 vs.850.997.985.340 629.492 ¥ 3.462 ¥18.468 92.937) -4.537 1.3 +13.344) 434.015.558.950.550.261 30.79 45 3.456 2.724.309 ¥20.3 +18.5 +18.916 1.173.4 +7.536 1.5% ¥ 2.7% ¥ 1.105.444.327 730.492 .9% ¥ 2.781 ¥20.312) 477.184) (277.792 3.4 +2.918 592.337.035 35.268 3.102.287 7.824 1.973 ¥15.757.965 6.914.752 3.997.442.582 1.17 50 3.806 723.1 +15.109 ¥12.326 1.320.686 962.042 ¥22.170 ¥10.7 +14.982) 725.4 +14.850 ¥20. Plant and Equipment* Depreciation At Year-End: Toyota Motor Corporation Shareholders’ Equity Total Assets Long-Term Debt Cash and Cash Equivalents Ratio of Toyota Motor Corporation Shareholders’ Equity ¥19.208.080.331.119.8 +21.345 604.511.803.723 30.317 7.997.476.720 1.997.301.468.304 ¥ 1.150.364. 2012 Per Share Data: Net Income (Loss) Attributable to Toyota Motor Corporation (Basic) Annual Cash Dividends Toyota Motor Corporation Shareholders’ Equity Stock Information (March 31): Stock Price Market Capitalization (Yen in millions) Number of Shares Issued (shares) * Excluding vehicles and equipment of operating leases ¥ (139.116.5% 563.061.8 +80.8 — — +3.451.865.447.0% 1.350 ¥11.529.026 ¥ 355.583.414.13) 100 3.409 ¥ 468.627 1. GAAP) [2 of 2] Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Management’s Discussion and Analysis of Financial Condition and Results of Operations Notes to Consolidated Financial Statements Selected Financial Summary (U.658) (355.230.841 904.071.301 2.1 +3.818.912.743.573 ¥10.751 3.820.220) 698.S.3 — +68.835.192 ¥18.168 ¥18.783 629.839.447.8% 291.1% 2010 ¥17.469 2.860 ¥16.447.550.435 (1.359.525.990.21 50 3.2% 2013 +19.516 0.569 ¥10.416 987.452.1 +36.3 — % change 2013 vs.010.495.483.581 ¥ (461.347) 779.737 ¥18.295.316 (3.011) -2.82 90 3.228.064.888 6.173.242 807.175.649 551.653 ¥15.520 1.3 +110.0 +15.409 1.1% ¥ 2.297 34.997.6% 2009 ¥17.7% Yen 2011 ¥17.442) (436.148.042.067.2% (560.277 1.0% ¥ 1.993.207 29.664 209.1 — ¥ 3.120 ¥10.4% 2012 ¥20.646 1.447.009 (2.569 630.496 712.447.332.166 6.S.9% 432.650.384 2.492 ¥ 3.709 34.718.403.757.309.220 2.41 ¥ 66.355.4 — +224.821 408.795.457 ¥ 147.905 (1.150 1.244 ¥18.0 +6.371 29.351 3.679.075 1.561 1.454 854.745 ¥12.530 (2.200 34.449.559 2.349.746 34.910.570 ¥17.543 1.873 262.183 3.303.037 6.492 ¥ 3.272 283.08 ¥ 90.226.027.971.1 +36.062.

688 ¥ 85.790 108.319 4.356 143.683 306.861 (4.416.137 (7.104) ¥ 2.352 141.184.279 ¥16.270.284.7 — +19.670.320.751.497 3.688 ¥ (362.122 147.346.503 13.653 ¥ 21.100 1.286 305.101) (461.105) ¥22.583.385.571 256.148 312.737 6.900 (5.5 — +271.192 576.039) ¥22.049 2. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Segment Information Toyota Motor Corporation Fiscal years ended March 31 Yen in millions 2008 2009 2010 2011 2012 2013 % change 2013 vs. 2012 Business Segment: Net Revenues: Automotive Financial Services All Other Intersegment Elimination Consolidated Operating Income (Loss): Automotive Financial Services All Other Intersegment Elimination Consolidated Geographic Information: Net Revenues: Japan North America Europe Asia Other Intersegment Elimination Consolidated Operating Income (Loss): Japan North America Europe Asia Other Intersegment Elimination Consolidated ¥24.918 468.320 1.066.040) 186.375 ¥12.653 ¥ (207.080 (21.315.222.094.915 (560.1 +27.147.423.925 26.240 ¥ 1.978 (17.955 (733.821.993.327 1.8 +32.270.320.089) ¥18.546 1.116 (4.4 ¥ ¥ ¥ ¥ ¥15.993.064.973 358.274 1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 44 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.973 ¥ (225.615 (439.428 1.192.4 +22.993.548 1.9 +3.526 2.375) ¥26.670 1.946 3.170.407 947.723 1.748 ¥ 1.289.648) ¥20.329 1.011) ¥17.5 +19.062 (14.306 1.927 (8.055 133.973 ¥ (86.279 ¥11.168) ¥ 2.1 +48.476 2.994.858.477) ¥18.294.175 (4.440.796 256.826 2.242 (11.494 33.337.886 1.534 1.256.334.7 +46.167.377.205 972.181) 147.570 ¥ (394.876) (71.246 5.820 53.192 944.719.324 1.060 87.2 +6.177.888 ¥ +14.7 +4.905 86.423.S.633) ¥ 1.947) 9.814 (7.220.574 1.136 1.216) 468.438 42.048.064.627 ¥20.100.354 1.252 (508.673.529.527 115.950.227) ¥26.120.586.289.409 17.434 3.237 (461.438) ¥20.986.5 +31.396) 339.335 221.4 ¥ ¥ ¥ ¥ .531) (390.841) ¥18.913 (4.370) 246.704 315.280 35.093) ¥18.375 ¥18.419.760.950.240 ¥ 2.142) 355.4 +1.648 46.947 (597.556) 355.490 (32.011) ¥11.744 (13.9 — +271.245.914 3.462 376.860) (4.977 160.258 3.498.564.128 2.265 (5.083.242) 85.583.192) (143.812 9.171.888 ¥ +20.129 4.186.132) ¥18.616 6.882.495.0 — +18.429.947) ¥18.529.197.303 5.604.374.7 — +18.993.809.113 4.233) 176.570 ¥ (237.981.013.516 ¥17.018 6.425 2.627 ¥12.461 (592.3 +4.516 ¥10.955) 203.655.

9 8.8% 238.3 24.2% 121.3) ¥ 238.6 ¥ ¥5.6 1.7 13.5 59.432.6% 79.0 331.4% 415.3 87.5% ¥5.889.3% 131.085.1 117.1) ¥3.837.4% 257.5 417.9 -4.4 271.3% 379.9) ¥4.2 1.4% 1.1 (0.2 1.7 32.865.7 ¥ 239.1 -99.0) ¥4.5 22.5% 4.3 379.9 507.7 9.1 21.4) 75.6 (126.5) —% 1.5 ¥ 107.9 72.161.929.715.5% ¥5.406.4 ¥4.7 69.008.5 530.5 37.8 190.5 ¥ 174.402.318.9 (1.4 101.1% 198.7 -16.9 497.6) ¥ 353.4 -32.2 1.6 ¥2.9 31.9% 99.1 1.6 483.9% ¥5.3 455.3 1.574.5 ¥5.2 500.3 ¥ .0 272.5 5.5 15.5 ¥ ¥3.471.7 11.4% (108.4 ¥3.2) ¥ 340.9 1.5 1.2 301.5 (96.4) ¥ 502.0 ¥ (206.8 (6.406.976.2 (134.4 9.3 (6.2 (149.2 827.183.7 9.120.3 10.8 1.9 (7.3% 124.7) ¥5.6 51.8 285.4 (1.3) ¥ 149.1 —% 6.9) 75.4% ¥3.501.0 1.7 272.5) 76.6 92.2 4.0 (133.7 18.2 91.837.2% 80.8% 6.4 243.784.8 102.2) ¥5.1 89.1 (3.7) ¥5.9 ¥ (7.4 -18.5% ¥4.2% 235.0 -29.574.4 ¥ 502.2 (136.7) ¥5.024.5 99.5 272.8% 313.406.4) ¥ 124.9 159.S.0 322.3 (7.0 1.0) 1.869.702.6 86.0) —% -3.5 853.9% 353.3 (1.9 23.525.0 ¥ 149.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 45 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.4 (3.2% 340.5) 60.8) ¥5.7 43.0 368.5 ¥ 258.060.441.3 ¥ 340.7) ¥ 353.0 704.1 274.2 460.702.501.0 376.242.0 2.110.489.073.401.1% 3.4 34.7) ¥ 238.6 467.6) ¥5.4% ¥5.0) ¥2.6 ¥4.572.3 110.7 499.9 -13.6 565.9 579.5 1.8 512.8 56.865.3 (1.2 (30.6% 8.9 (3.0 (3.2 57.8% 75.7 15.3) 32.1% (80.2 15.6% 477.2 (1.4 (195.6 3.112.501.8 308.7 12.1 ¥5.1% 149.5 (1.2 —% 290.7) ¥3.6 70.2) ¥5.441.8 (725.8) ¥5.837.0 ¥ 402.1) ¥ 124.4% ¥4.6) ¥4.2 -33.5 9.8) ¥5.4% 502.592.279.5 51.7% 80.8 (1.4) ¥4.450. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Quarterly Financial Summary Toyota Motor Corporation Fiscal years ended March 31 Yen in billions 2012 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter 2013 Third Quarter Fourth Quarter Net Revenues % Change Operating Income (Loss) % Change Operating Income Margin Income (Loss) before Income Taxes and Equity in Earnings of Affiliated Companies % Change Net Income Attributable to Toyota Motor Corporation % Change Business Segment: Net Revenues: Automotive Financial Services All Other Intersegment Elimination Consolidated Operating Income (Loss): Automotive Financial Services All Other Intersegment Elimination Consolidated Geographic Information: Net Revenues: Japan North America Europe Asia Other Intersegment Elimination Consolidated Operating Income (Loss): Japan North America Europe Asia Other Intersegment Elimination Consolidated ¥3.6) 28.7% ¥5.5 27.9) ¥ (108.1 -38.4 40.0 ¥ (202.9 18.5 (1.318.4 37.102.574.6 (2.9 ¥ (108.7 42.865.7 ¥ ¥3.3 (1.7 ¥ ¥5.0 508.379.0 255.3 262.0 252.9 700.0 (179.441.5 459.333.4 5.6 53.7 ¥ 143.9 475.8 (3.6 351.1 0.163.0 15.2 85.318.088.9 ¥ (69.9 1.7% 2.7 64.6 (1.9 220.229.294.5 527.306.1 ¥3.438.1) 9.6 (17.702.1 83.6) ¥5.6 ¥ ¥3.9) ¥4.5) 90.1 271.3 ¥ ¥1.0 ¥ 309.5) 94.

469 799 1. The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America.S.872 798 1. particularly in North America due to impact of the Great East Japan Earthquake and 2011 2013 Japan North America Europe Asia Other* Overseas total Total 1. These factors can cause consumer demand to vary substantially in different geographic markets and for different types of automobiles. Thousands of units Years Ended March 31. although an increase in Asia resulted from steady demand in spite of the flood in Thailand.4% for fiscal 2013.071 1. • the adverse effect on production due to the reliance on various suppliers for the provision of supplies. 2012 2. The demand for automobiles is affected by a number of factors including social.327 1. and costs incurred by customers to purchase or operate vehicles.000 Toyota’s share of total vehicle unit sales in each market is influenced by the quality. • the efficient use of production capacity. financial services operations and all other operations. Europe (9%) and Asia (19%). .640 6.313 5.000 4.000 8. • the mix of vehicle models and options sold. • the ability to control costs. sales and productions of natural calamities and interruptions of social infrastructure. During fiscal 2013. and • changes in the value of the Japanese yen and other currencies in which Toyota conducts business.395 7.031 796 1. economy and utility of Toyota’s vehicles compared with those offered by other manufacturers. Toyota and Lexus brands’ market share excluding mini-vehicles was 48. Overseas consolidated vehicle unit sales decreased during The following table sets forth Toyota’s consolidated vehicle unit sales by geographic market based on location of customers for the past three fiscal years.871 the flood in Thailand. etc.684 1. • the adverse effect on market. • the prices of raw materials. Toyota’s primary markets based on vehicle unit sales for fiscal 2013 were: Japan (26%). and emerging countries such as Asia. During fiscal 2012.3% following the prior fiscal year. Toyota’s ability to satisfy changing customer preferences can affect its revenues and earnings significantly.913 2. design.279 2.281 7. For the automobile industry. Toyota’s consolidated vehicle unit sales in Japan increased as compared with each prior fiscal year. Consolidated Vehicle Sales (Thousands of units) 10. • the cost of research and development and other fixed costs. markets have progressed in a steady manner. The timely introduction of new or redesigned vehicles is also an important factor in satisfying customer needs. • the level of parts and service sales. whereas they increased during fiscal 2013. safety. introduction of new vehicles and technologies.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 46 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. primarily as a result of the active introduction of new products and the efforts of dealers nationwide. political and general economic conditions. especially in the U.308 2.284 5. representing a record high. Automotive operations are Toyota’s most significant business segment. North America (28%). performance.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [1 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations All financial information discussed in this section is derived from Toyota’s consolidated financial statements that appear elsewhere in this annual report.000 0 FY ’09 ’10 ’11 ’12 ’13 is affected by many factors. • the cost of customer warranty claims and other customer satisfaction actions.255 1. and market share (including Daihatsu and Hino brands) including mini-vehicles remained at a high level of 44. The demand for products with advanced green technology has remained strong throughout all markets worldwide. price. Oceania. reliability. Automotive Market Environment The worldwide automotive market is highly competitive and volatile. * “Other” consists of Central and South America.592 8. The profitability of Toyota’s automotive operations Overview The business segments of Toyota include automotive operations. fiscal 2012. These factors include: • vehicle unit sales volumes. Africa and the Middle East.352 2. total overseas vehicle unit sales increased in every region.000 6. accounting for 90% of Toyota’s total revenues before the elimination of intersegment revenues for fiscal 2013. • the levels of price discounts and other sales incentives and marketing costs. total overseas vehicle unit sales decreased. During fiscal 2013 and 2012.

000 15. Toyota issues vehicle recalls and takes other safety measures including safety campaigns with respect to its vehicles. Many governments also regulate local content. and later expanded it to include additional models. impose tariffs and other trade barriers. “Information on the Company—Business Overview—Governmental Regulation. Toyota announced a safety campaign in North America for certain models of Toyota and Lexus brands’ vehicles related to floor mat entrapment of accelerator pedals. margins on financing transactions may decrease and market share may also decline as customers obtain financing for Toyota vehicles from alternative sources. Toyota announced a recall in North America for certain models of Toyota vehicles related to sticking and slow-to-return accelerator pedals. policies and other governmental actions can also materially impact the profitability of Toyota’s automotive operations. Also in January 2010. Changes in these laws. regulations and policies. Total Assets by Financial Services Operations (¥ Billion) 20. For a more detailed description of these claims. The worldwide automotive industry is in a period of global competition which may continue for the foreseeable future. policies and other governmental actions may affect the production. credit unions and other finance companies. Toyota announced a recall in markets including Japan. distribution or sale of Toyota’s products. The recalls and other safety measures described above have led to a number of claims. In November 5. commercial banks and other captive automobile finance companies also compete against Toyota’s wholesale financing activities. and in general the competitive environment in which Toyota operates is likely to intensify. lawsuits and government investigations against Toyota in the United States. In February 2010. Toyota recalled in Europe and China certain models of Toyota vehicles related to sticking accelerator pedals. see note 23 to the consolidated financial statements. Toyota’s competitors for retail financing and retail leasing include commercial banks. regulations. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [2 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Changes in laws.000 2009. Meanwhile. As competition increases. Toyota has expanded its network of finance subsidiaries in order to offer financial services in many countries. fuel economy and emissions that can add significantly to the cost of vehicles. Toyota’s total finance receivables increased during fiscal 2013 mainly due to the favorable impact of fluctuations in foreign currency translation rates and an increase in the retail receivables. lawsuits and government investigations. cost of products or applicable tax rates. Financial Services Operations The competition of worldwide automobile financial services industry is intensifying despite the recovery trend in the automotive markets. North America and Europe related to the braking control system in certain vehicle models including the Prius. and enact price or exchange controls that can limit an automaker’s operations and can make the repatriation of profits unpredictable. These laws.000 0 FY ’09 ’10 ’11 ’12 ’13 . regulations. In January 2010. The European Union has enforced a directive that requires manufacturers to be financially responsible for taking back end-oflife vehicles and to take measures to ensure that adequate used vehicle disposal facilities are established and those hazardous materials and recyclable parts are removed from vehicles prior to scrapping.S. Therefore. Toyota’s financial services operations mainly include loans and leasing programs for customers and dealers. strategies and technologies in place to compete effectively in the industry as an independent company for the foreseeable future. Environmental and Safety Standards” in Toyota’s annual report on Form 20-F and note 23 to the consolidated financial statements for a more detailed discussion of these laws. licensing. From time-to-time when potential 10.000 safety problems arise. Toyota believes it has the resources. See “Legislation Regarding End-of-Life Vehicles”. regulations and policies include those attributed to environmental matters. vehicle safety. Toyota believes that its ability to provide financing to its customers is an important value added service.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 47 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.

533 (494.887 2. unrealized gains or losses related to derivatives that are not designated as a hedge are recognized currently in operations. the Russian ruble.135) ¥ 1. 2011 to ¥307. Toyota had 10.615. are affected by foreign currency exchange fluctuations through both translation risk and transaction risk.0 billion from March 31.717.9 million cardholders compared with March 31.848 (49.238) (8. See discussion in “Critical Accounting Estimates—Derivatives and Other Contracts at Fair Value” and “Quantitative and Qualitative Disclosures about Market Risk” and notes 20 and 26 to the consolidated financial statements. Funding costs are affected by a number of factors. some of which are not in Toyota’s control. .536.S.943.793 955. the Canadian dollar. Toyota’s consolidated financial statements. an increase of 0.117.243) (139. net ¥ 7.5 billion. Translation risk is the risk that Toyota’s consolidated financial statements for a particular period or for a particular date will be affected by changes in the prevailing exchange rates of the currencies in those countries in which Toyota does business compared with the Japanese yen. intelligent transport systems and GAZOO.693. Finance Receivables Retail Finance leases Wholesale and other dealer loans Deferred origination costs Unearned income Allowance for credit losses Retail Finance leases Wholesale and other dealer loans Total finance receivables.123) (77. Toyota is exposed to fluctuations in the value of the Japanese yen against the U.0 million cardholders compared with March 31.999. These leasing activities are subject to residual value risk. to a lesser extent.928) (26.899.602. 2013 increased by ¥30.090) 2. See discussion in “Critical Accounting Estimates—Allowance for Doubtful Accounts and Credit Losses” and note 11 to the consolidated financial statements.248. Residual value losses could be incurred when the lessee of a vehicle does not exercise the option to purchase the vehicle at the end of the lease term. Funding costs decreased during fiscal 2012 and 2013. 2012 2013 Toyota enters into interest rate swap agreements and cross currency interest rate swap agreements to convert its fixed-rate debt to variable-rate functional currency debt.575.637) (24. net Less—Current portion Noncurrent finance receivables. Yen in millions March 31.353 (667. 2012. 2012 increased by ¥44.114. 2013. Currency Fluctuations Toyota is affected by fluctuations in foreign currency exchange rates.5 billion from March 31. and. and others.359 (4.766 ¥ 2. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [3 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations The following table provides information regarding Toyota’s finance receivables and operating leases in the past two fiscal years.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 48 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.238. Other Business Operations Toyota’s other business operations consist of housing including the manufacture and sale of prefabricated homes. These factors include general economic conditions. 2012 to ¥338. Toyota launched its credit card business in Japan in April 2001.177 105.397 135. net Operating Leases Vehicles Equipment Less—Deferred income and other Less—Accumulated depreciation Less—Allowance for credit losses Vehicles and equipment on operating leases. and other businesses. the British pound.033.728 12.020) ¥ 2. The credit card receivables at March 31. dollar and the euro and.753 Toyota’s finance receivables are subject to collectability risks. prevailing interest rates and Toyota’s financial strength.462 ¥ 2.812 ¥ 9.061.351 (65.280.294 104.954 10. which are presented in Japanese yen. an increase of 2. 2011.595 87.238) (132. Toyota continues to originate leases to finance new Toyota vehicles.660) ¥ 6.897) ¥ 5.9 million cardholders. mainly as a result of lower interest rates.8 million cardholders. Toyota had 11. information technology related businesses including information technology and telecommunications. Even though the fluctuations of currency exchange rates to the Japanese yen can be substantial. 2012.426 (5.S. As of March 31.782 1. The fluctuations in funding costs can affect the profitability of Toyota’s financial services operations. Toyota does not expect its other business operations to materially contribute to Toyota’s consolidated results of operations.634) 3. A portion of the derivative instruments are entered into to hedge interest rate risk from an economic perspective and are not designated as a hedge of specific assets or liabilities on Toyota’s consolidated balance sheet and accordingly. The credit card receivables at March 31.011 (749.406) (8.398 (628.047.353) (30. See discussion in “Critical Accounting Estimates—Investment in Operating Leases” and note 2 to the consolidated financial statements.430 2.1 billion.029) 12. the Australian dollar.858) (28. As of March 31. These risks include consumer and dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying values of these receivables.228) 9.038.340) (83.029. therefore.

However.7% and 58.173 9. See further discussion in “Quantitative and Qualitative Disclosures about Market Risk—Market Risk Disclosures—Foreign Currency Exchange Rate Risk”.113 4. the Japanese yen was on average stronger against the euro in comparison to fiscal 2011 and 2012. In calendar 2011 and 2012.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 49 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Management allocates resources to.644.640. production volume.7% 18. 57. In fiscal 2012 and 2013. Geographic Breakdown The following table sets forth Toyota’s net revenues in each geographic market based on the country location of the parent company or the subsidiaries that transacted the sale with the external customer for the past three fiscal years. During fiscal 2012 and 2013. Although. Generally.003. 2012 Revenues by Market FY2013 ˾ Japan ˾ North America ˾ Europe  ˾ Asia ˾ All Other Markets 2013 8.849 1.0% * “Other” consists of Central and South America. . Toyota has continued to localize production by constructing production facilities in the major markets in which it sells its vehicles.S. vehicle model plans and plant location costs to allocate resources within the automotive operations. A strengthening of the Japanese yen against other currencies has the opposite effect.966. but not eliminated. the Japanese yen was on average and at the end of the fiscal year stronger against the U. respectively.809 1. Toyota does not manage any subset of its automotive operations.244 ¥7. which in some years can be significant. Toyota produced 71.S.456 6. such as domestic or overseas operations or parts. Results excluding the impact of currency fluctuations year-on-year are not on the same basis as Toyota’s consolidated financial statements and do not conform with U. 66. its automotive operations as a single business segment on a worldwide basis. See notes 20 and 26 to the consolidated financial statements for additional information. As part of its globalization strategy.8% and 75. GAAP measures. market share information. dollar and the euro compared to the prior fiscal year has fluctuated as described above. Furthermore. Toyota carries out its automotive operations as a global competitor in the worldwide automotive market.629 1. it was on average and at the end of the fiscal year weaker in fiscal 2013. Oceania and Africa.5% of vehicles sold in calendar 2011 and 2012 respectively were produced locally. The Japanese yen was at the end of fiscal 2012 stronger against the euro in comparison to the prior fiscal year.611.S. This has reduced.8% Japan North America Europe Asia Other* ¥6. operating income and net income attributable to Toyota Motor Corporation.4% of its non-domestic sales outside Japan.058.S. and assesses the performance of. Toyota does not hedge against translation risk.929 5.S. respectively. In Europe.408 3.920. dollar in comparison to the prior fiscal year.348 1. Toyota also enters into foreign currency transactions and other hedging instruments to address a portion of its transaction risk.804 4.112 1. The operating results excluding the impact of currency fluctuations described in “Results of Operations—Fiscal 2013 Compared with Fiscal 2012” and “Results of Operations—Fiscal 2012 Compared with Fiscal 2011” show results of net revenues obtained by applying the Japanese yen’s average exchange rate 2011 in the previous fiscal year to the local currencydenominated net revenues for fiscal 2012 and 2013.821 2. as separate management units. Management assesses financial and non-financial data such as vehicle unit sales. as if the value of the Japanese yen had remained constant for the comparable periods. respectively. Transaction risk is the risk that the currency structure of Toyota’s costs and liabilities will deviate from the currency structure of sales proceeds and assets.917.167. a weakening of the Japanese yen against other currencies has a positive effect on Toyota’s revenues. the translation risk is a reporting consideration and does not reflect Toyota’s underlying results of operations. which allows for a better match of local currency revenues with local currency expenses.327. Toyota believes that the location of its production facilities in different parts of the world has significantly reduced the level of transaction risk.3% of vehicles sold in calendar 2011 and 2012 respectively were produced locally.138.4% 35. but was weaker at the end of fiscal 2013 due to the depreciation of the yen in the second half of the fiscal year.3% and 75. in fiscal 2012. Transaction risk relates primarily to sales proceeds from Toyota’s non-domestic operations from vehicles produced in Japan. GAAP.293. In North America. Segmentation Toyota’s most significant business segment is its automotive operations.924.422 ¥7. Localizing production enables Toyota to locally purchase many of the supplies and resources used in the production process. Toyota does not believe that these measures are a substitute for U. Toyota believes that such results excluding the impact of currency fluctuations year-on-year provide additional useful information to investors regarding the operating performance on a local currency basis. Yen in millions Years Ended March 31.116.1% 28.416 3. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [4 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations significantly impact comparisons with prior periods and among the various geographic markets. The management of the automotive operations is aligned on a functional basis with managers having oversight responsibility for the major operating functions within the segment. the effects of foreign currency exchange rate fluctuations.910. the average exchange rate of the Japanese yen against the U.

The automotive market in 2012 increased by 11.624 3.756 1.946 2.385.9 — +271. Under these automotive market conditions.142) (13. Vehicles Parts and components for overseas production Parts and components for after service Other Total Automotive All Other Total sales of products Financial services Total ¥14.167.7 +46.284.947) (5. and emerging countries such as Asia developed in a steady manner.1 billion.8 billion.402.7 .964.083.2% increase compared with the prior fiscal year.055 108.113 3. Toyota’s consolidated vehicle unit sales increased to 8.2 +5.192 ¥ (207.873 2.051.4 FY ’09 ’10 ’11 ’12 ’13 ¥ The table below shows Toyota’s net revenues from external customers by product category and by business. Oceania and Africa.604. an increase of ¥3. 2012 2013 Yen in millions 2013 vs.234 78.3 +18. 2012 Change Amount Percentage (%) Net Revenues Toyota had net revenues for fiscal 2013 of ¥22.627 ¥ 1.0% 432.930 (6.378.916 20.940 ¥17. or 18.064.403. net revenues would have been ¥21.423.491) ¥ 965.000 20.375 35.167 1.538 535.462 256.3% in North America and 14.2 +19.150) 3.334.533 18.219 997. +224.471 68.000 356.090 (1.888 1.261 4.653 ¥22.701 283.000 10.604 2.378 20. the market in the U.790 376.000 15.150.094.1 –2.018 4.539 +23.818 678.7 — +19.7%.843 16.414.516 8.737 1.1 +48. 2012 Change Amount Percentage (%) +17.384 (12.409 221.539 ¥ 783.5% 1.180. compared with the prior fiscal year.559 1. 2012 2013 2013 vs.4 +7.8 billion.821.5 +31.690 929.583.319 ¥12.175 2.3 * “Other” consists of Central and South America.760. Excluding the difference in the Japanese yen value used for translation purposes of ¥281.480.425 1.4% 231.993.000 5.1% 970.925 17.335 186.5 billion.4% ¥1.511.751.473 338. a 17.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 50 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.1 +239.480.4 +20.814 133.8 +32.0 — +18.040) ¥ 576.042 ¥18.3 billion during fiscal 2013.446.S.150 1.9% +14.219 1.192 ¥3.649 6.633) 355.577.519 962.3% in Asia compared with the prior fiscal year.158) ¥3.762 547.320. Net Revenues (¥ Billion) 25.532.653 ¥22.265 24.476 1.3% 197.064. In fiscal 2013.666 119.480.265 (4.782.305 ¥3.5 +3.071.583.281.164.064.0 +7.3 +4.7% compared with the prior fiscal year.105) ¥18.756 45. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [5 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations — Fiscal 2013 Compared with Fiscal 2012 Yen in millions Years ended March 31.653.031.388 17.274 4.3 Years ended March 31.532.776 4.744 (7.4 +22.202 334.5 billion and favorable impact of fluctuations in foreign currency translation rates of ¥281. This increase reflected changes in numbers of the vehicle unit sales and sales mix of ¥3.886 6.871 thousand vehicles by 20.699 1.914.1% 33.9% 6.163 4.S.539 89.5 +19.796 26.000 0 Net revenues: Japan North America Europe Asia Other* Intersegment elimination/unallocated amount Total Operating income (loss): Japan North America Europe Asia Other* Intersegment elimination/unallocated amount Total Operating margin Income before income taxes and equity in earnings of affiliated companies Net margin from income before income taxes and equity in earnings of affiliated companies Equity in earnings of affiliated companies Net income attributable to Toyota Motor Corporation Net margin attributable to Toyota Motor Corporation ¥11.

2012 Change 2012 2013 Amount Percentage (%) Toyota’s consolidated vehicle unit sales* * including number of exported vehicle unit sales 3.0% in Other compared with the prior fiscal year.8 billion.0% in Asia and 22. 2013 vs. The following is a discussion of net revenues in each geographic market (before the elimination of intersegment revenues).092 126.4 +2.4 Thousands of units Years ended March 31. 2012 Change 2012 2013 Amount Percentage (%) 2013 compared with the prior fiscal year. Number of financing contracts in thousands Years ended March 31. net revenues from sales of products would have been ¥20.284.469 Yen in millions 597 +31.3 Years ended March 31. .672 68 61 29 219 66 443 +4.964 ¥12.0 +14.354 ¥4.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 51 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.571 ¥1. 6.167. 31.018 ¥1.765 4.532.3% in North America.651 16. 2012 Change 2012 2013 Amount Percentage (%) * “Other” consists of Central and South America. net revenues from financial services operations would have been ¥1.242 ¥6. 2012 2013 2013 vs.150. 2012 2013 2013 vs. Excluding the difference in the Japanese yen value used for translation purposes of ¥246.914. an 18.128 7. Japan Thousands of units Years ended March 31.888 ¥1.4 +32. increased by 461 thousand vehicles compared with the prior fiscal year due mainly to a recovery from the negative impact of the Great East Japan North America Japan North America Europe Asia Other* Total 1.9% in Europe.202 Yen in millions 461 +12.886 ¥5.S. 32.821.2 billion. Excluding the difference in the Japanese yen value used for translation purposes of ¥35.699 +14.355 133.8 Earthquake in the first half of fiscal 2012. Oceania and Africa.0 billion. 2013 vs. consisting of net revenues from automotive operations and all other operations.697 4. The increase in net revenues from sales of products is due to an increase in Toyota vehicle unit sales by 1. which increased by 19.183 720.040.926 ¥11.535 796 649 552 8.9 +5. Net revenues: Sales of products Financial services Total In North America. a 4. the vehicle unit sales increased by 597 thousand vehicles compared with the prior fiscal year due mainly to the market recovering in a Years ended March 31. an increase in demand by subsidies for eco-cars offered by the government and strong sales of Aqua and other car models in fiscal 2013.532 703.596 825 868 618 8.0 +1.2% in North America.751.319 ¥12.8 billion rental revenue generated by vehicles and equipment on operating lease. Camry and other car models.872 2.229 1.9 Geographically.4% during fiscal 2013 compared with the prior fiscal year to ¥20.3 steady manner and strong sales of Corolla.564. net revenues (before the elimination of intersegment revenues) for fiscal 2013 increased by 14. net revenues in fiscal 2013 would have increased by 14.9 +6.5% in Europe. 4.8% in Japan.114.668.5% in Other compared with the prior fiscal year.048.8% in Japan. and net revenues from financial services operations which increased by 7.0% increase during fiscal The following table shows the number of financing contracts by geographic region at the end of the fiscal 2013 and 2012.8 billion.741 4. and 19. 2013 vs. 2012 Change Amount Percentage (%) Net revenues: Sales of products Financial services Total Toyota’s domestic and exported vehicle unit sales ¥11.515.0 billion. Toyota’s consolidated vehicle unit sales 1. 26.687.425 ¥1.0% increase during fiscal 2013 compared with the prior fiscal year.539 +37.7 +33.3 +3.3% during fiscal 2013 compared with the prior fiscal year to ¥1.5% in Asia.1 billion.1 billion.7 +11.646. Excluding the difference in the Japanese yen value used for translation purposes of ¥281. This increase was mainly due to an increase of ¥25. 28. 2012 Change Amount Percentage (%) ¥4. respectively.653. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [6 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Toyota’s net revenues include net revenues from sales of products.519 thousand vehicles.

918 ¥334.032.083. The vehicle unit sales increased due mainly to ¥2.5 +19.515.214.327 1.684 Yen in millions 357 +26. The vehicle unit sales increased in Eastern Asia ¥1. 2012 Change Amount Percentage (%) Net revenues: Sales of products Financial services Total Net revenues in Europe as a whole increased due primarily to the 1 thousand vehicles increase in vehicle unit sales compared with the prior fiscal year.102.426 1.207 75.278 Yen in millions 2013 vs. 2012 2013 2013 vs.476 ¥1.569 592.630 ¥89.636. although sales of Toyota brands’ vehicles decreased in Western Europe compared with the prior fiscal year due to the European sovereign debt crisis.780 262. and the recovery during fiscal 2013 from the negative impacts of the flood in Thailand in fiscal 2012.050 ¥2. Thousands of units Years ended March 31.871 58. 2013 vs.307.172 27. 2012 2013 2013 vs. The vehicle unit sales increased due mainly to Operating Costs and Expenses strong sales of IMV and Land Cruiser in each region in fiscal 2013 and the recovery from the shortages of parts supplies caused by the Great East Japan Earthquake and the flood in Thailand in fiscal 2012.533 ¥4.8 Years ended March 31.010.000 (450.946 ¥2.8 +31.026 ¥20.334. 2012 Change Amount Percentage (%) Years ended March 31.113 ¥81.278 ¥2.7 +22.993.276 ¥1.3 +13. 2013 vs. 2012 2013 2013 vs.670 68. general and administrative Total ¥15.2 +11.942.385.646 630.8 ¥3.847 ¥2.906 ¥2.943 77.9 Years ended March 31.304 ¥2.175 ¥1. 2012 Change 2012 2013 Amount Percentage (%) Yen in millions Years ended March 31. year.215 152.0 +6. 2012 2013 2013 vs.760.309 ¥18.043 124.515.925.228.007.202 +31.278 .167 +4. especially in Russia.5 +32.000) 335.5 Net revenues: Sales of products Financial services Total ¥1.284 1.051.462 2.537 7.000 270.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 52 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.795.839.274 ¥4. 2012 Change Amount Percentage (%) Net revenues: Sales of products Financial services Total Net revenues in Asia as a whole increased due primarily to the 357 thousand vehicles increase in vehicle unit sales compared with the prior fiscal Operating costs and expenses: Cost of products sold Cost of financing operations Selling. 2012 Change 2012 2013 Amount Percentage (%) Toyota’s consolidated vehicle unit sales 798 799 Yen in millions 1 +0. 2012 Change +14.0 Europe. 2013 vs.640 Yen in millions 356 +27.275. 2012 Change 2012 2013 Amount Percentage (%) Other Thousands of units Years ended March 31.918 ¥18.360.132 ¥1.094.5 Changes in operating costs and expenses: Effect of changes in vehicle unit sales and sales mix Effect of fluctuation in foreign currency translation rates Effect of cost reduction efforts Effect of increase in miscellaneous costs and others Total the expansion of markets such as Thailand and Indonesia.2 +4.743.072 19.403 ¥3.090 +18.651 37.S.4 +14. 2012 Change Amount Percentage (%) Toyota’s consolidated vehicle unit sales 1. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [7 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Europe Thousands of units Years ended March 31.130 ¥1.1 Toyota’s consolidated vehicle unit sales 1.265 ¥306. Net revenues in Other as a whole increased due primarily to the 356 thousand vehicles increase in vehicle unit sales compared with the prior fiscal year.

the ¥270.4 billion during fiscal 2013 compared with the prior fiscal year. The amount of effect of cost reduction efforts includes the impact of fluctuation in the price of steel. This increase in product quality related expenses resulted from the weakening of the Japanese yen at the end of fiscal 2013 against other currencies in comparison to the prior fiscal year. the ¥50.S. 5. partially offset by the ¥450.0 billion increase in labor costs. or 14.0 billion charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the U.0%. to ¥2.000 25 0 0 FY ’09 ’10 ’11 ’12 ’13 Cost of Financing Operations Cost of financing operations increased by ¥37.124.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 53 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.000 75 10. the ¥70.000 50 Cost Reduction Efforts During fiscal 2013.8 billion.743.S. general and administrative expenses increased by ¥262.1 billion unfavorable impact of fluctuations in foreign currency translation rates.8%. The increase resulted from the ¥2.010. These cost reduction efforts related to ongoing value engineering and value analysis activities.000) 15.8 billion unfavorable impact of fluctuations in foreign currency translation rates. The increase in miscellaneous costs and others was due mainly to the ¥90.5 billion during fiscal 2013 compared with the prior fiscal year. or 14. to ¥18. 0 FY ’09 ’10 ’11 ’12 ’13 ¥650.0 billion.7 billion. In fiscal 2013.6 billion.2 billion.102. Toyota Cost of Products Sold Cost of products sold increased by ¥2. precious metals. continued cost reduction efforts together with suppliers contributed to the improvement in earnings.0 billion impact of cost reduction efforts.360.0 billion impact of changes in vehicle unit sales and sales mix and the ¥201.000 800 600 400 200 (%) 5 4 3 2 1 0 15.0 billion increase in research and development expenses. General and Administrative Expenses Selling. R&D Expenses ˾˾ R&D expenses bb % of net revenues (Right scale) (¥ Billion) 1. Changes in operating income and loss: Effect of marketing efforts Effect of cost reduction efforts Effect of changes in exchange rates Effect of increase of miscellaneous costs and others Other Total Operating Income Yen in millions 2013 vs.000 (%) 100 Selling.261 .0 billion impact of cost reduction efforts.S. Cost of Products Sold ˾˾ Cost of products sold bb % of net revenues (Right scale) (¥ Billion) 20. This increase reflected the ¥90.0 billion impact of changes in vehicle unit sales and sales mix.2 billion increase in miscellaneous costs and others.000 150.4%.3 billion during fiscal 2013 compared with the prior fiscal year. partially offset by the ¥450. Toyota’s continued cost reduction efforts reduced operating costs and expenses by ¥450. or 13.000 (300. non-ferrous alloys including aluminum.3%. This increase resulted from the ¥2. In November 2012.0 billion charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the U. The increase resulted from the ¥33. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [8 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Operating costs and expenses increased by ¥2. During fiscal 2013.000 450. the use of common parts resulting in a reduction of part types and other manufacturing initiatives designed to reduce the costs of vehicle production.0 billion unfavorable impact of fluctuations in foreign currency translation rates.2 billion increase in expenses for the financial services operations and the ¥35.214.515. or 6.3 billion during fiscal 2013 compared with the prior fiscal year. See note 14 to the consolidated financial statements.. the ¥43. to ¥630. 2012 Change announced in Japan and other regions the voluntary safety recall of certain models of Toyota brands’ vehicles in relation to the insufficient hardness treatment of some intermediate extension shafts and in relation to the electric water pump for the hybrid system.261 ¥965.0 billion unfavorable impact of fluctuations in foreign currency translation rates and the ¥335. plastic parts and other production materials and parts.. to ¥20. Toyota announced recalls and other safety measures including the following: In October 2012. Toyota announced in Japan and other regions the voluntary safety recall of certain models of Toyota brands’ vehicles in relation to the inspection and application of special fluorine grease to the driver’s side Power Window Master Switch (PWMS).0 billion impact of increase in product quality related expenses and the ¥20.

9%.000) 20.000) (6.2 billion. 2012 Change Changes in operating income and loss: Effect of marketing efforts Effect of cost reduction efforts Effect of increase of miscellaneous costs and others Other Total Europe ¥30. ¥8.0 billion increase of marketing efforts. in Other.000) 3. increased by ¥783.6 billion. operating income (before elimination of intersegment profits).0 billion increase in miscellaneous costs and others.516 ¥35. to ¥1. This increase was due mainly to the ¥650.000 380.265 ¥119. in Asia.S. ¥35. partially offset by the ¥300.4%. in North America.4%.000 (170. -500 -5 0 0 1. the ¥50.0 billion impact of increase in product quality related expenses and the ¥20.8 billion during fiscal 2013 compared with the prior fiscal year. or 48.666 FY ’09 ’10 ’11 ’12 ’13 The following is a description of operating income in each geographic market.0 billion impact of cost reduction efforts and the ¥150.516 Yen in millions 2013 vs.000 165.5 billion.S.625) ¥783.3 billion in Japan compared with the prior fiscal year.000 15. 2012 Change 500 5 Changes in operating income and loss: Effect of marketing efforts Effect of cost reduction efforts Effect of increase of miscellaneous costs and others Other Total Asia ¥5.000) (30. The increase in miscellaneous costs and others was due mainly to the ¥90.500 (%) 15 North America Yen in millions 2013 vs.000 (5.0 billion favorable impact of changes in exchange rates. or 19.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 54 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.000 5. and ¥24. 2012 Change Changes in operating income and loss: Effect of marketing efforts Effect of cost reduction efforts Effect of changes in exchange rates Effect of increase of miscellaneous costs and others Other Total ¥415. Japan Yen in millions 2013 vs.000 (65.000 10 During fiscal 2013.. the ¥450. 2012 Change Yen in millions 2013 vs.000 (10. in Europe.000 50. the ¥70.7%.000) 9. or 271. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [9 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Toyota’s operating income increased by ¥965.375 Changes in operating income and loss: Effect of marketing efforts Effect of cost reduction efforts Effect of changes in exchange rates Effect of increase of miscellaneous costs and others Other Total ¥135.0 billion charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the U. or 46.0 billion increase in labor costs.320.265 . Operating Income (Loss) ˾˾ Operating income (loss) bb % of net revenues (Right scale) (¥ Billion) 1.9 billion.1%. or 22.666 ¥8.2 billion. ¥119.0 billion increase in research and development expenses.

2%. net decreased by ¥31. or the value translated by appropriate year-end current exchange rates.039) (14. 2012 2013 effective tax rate for fiscal 2013 was 39.304 +20.1 billion during fiscal 2013 compared with the prior fiscal year.683 944.0 billion of favorable impact of changes in vehicle unit sales and sales mix and the ¥245.1 billion. and from unrealized holding gains on securities in fiscal 2013 of ¥368.000 750 500 250 0 -250 -500 (%) 10. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [10 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Other Income and Expenses Interest and dividend income decreased by ¥1.3 billion in the prior fiscal year.704 1. Automotive Operations Segment The automotive operations segment is Toyota’s largest operating segment by net revenues.3%. to ¥98.0 FY ’09 ’10 ’11 ’12 ’13 Segment Information The following is a discussion of results of operations for each of Toyota’s operating segments. or 239.9 billion during fiscal 2013.066. to ¥121.915 1. 2012 Change Amount Percentage (%) ¥16.554 923.382 17.424. including those settled using forward foreign currency exchange contracts.5 -5.5 billion compared with gains of ¥129. Other loss.6 billion.0 2.554 (31.8 billion. or 110. This increase was due mainly to an increase during fiscal 2013 in net income attributable to the shareholders of affiliated companies accounted for by the equity method.048.5 billion. on the same level as that of the prior fiscal year.5 5.5 billion during fiscal 2013 compared with the prior fiscal year.7 billion in the prior fiscal year. or 1.556) 6. to ¥5.1 +1. to ¥962.3%.062 53. or 17.5 billion during fiscal 2013 compared with the prior fiscal year. This increase resulted from favorable foreign currency translation adjustments gains of ¥434.324 1. Yen in millions 2013 vs.419.4 +3.4 billion favorable impact of fluctuations in foreign currency translation rates.256. with the prior fiscal year.419.546 ¥20.0 7. This increase was due mainly to an increase during fiscal 2013 in net income attributable to the shareholders of consolidated subsidiaries. This was due mainly to deferred tax liabilities relating to undistributed earnings in affiliated companies accounted for by the equity method.030. which was higher than the statutory tax rate in Japan.6 billion in fiscal 2013 compared with losses of ¥87.5 billion compared with the prior fiscal year. Operating income from the automotive operations increased by ¥923. Income Taxes The provision for income taxes increased by ¥289.907) 21. This increase in operating income was due mainly to the Net Income and Loss Attributable to Noncontrolling Interests and Equity in Earnings of Affiliated Companies Net income attributable to noncontrolling interests increased by ¥36.5 billion decrease in foreign exchange gain.1 billion.670 306. The increase reflects the ¥3.021 70.7 +27.546 11.6 billion during fiscal 2013 compared with the prior fiscal year.7 billion for fiscal 2013 compared Net Income Attributable to Toyota Motor Corporation Net income attributable to the shareholders of Toyota Motor Corporation increased by ¥678.461 42.1%.0%.616 (560. Foreign exchange gain.S.6 billion during fiscal 2013 compared with the prior fiscal year due to the increase in income before income taxes.2%. or 43.0 billion during fiscal 2013 compared with the prior fiscal year to ¥944.994.5 billion. or 20. compared with the prior fiscal year to ¥20.100.820 1. or 85. Interest expense was ¥22. Equity in earnings of affiliated companies during fiscal 2013 increased by ¥33.132) (592.170.8 billion to ¥822.3 billion to ¥1.4 billion. The amounts presented are prior to intersegment elimination.9 +6.424. The ¥31.2 +4.5 — — . net increased by ¥38. Automotive: Financial Services: All Other: Intersegment elimination/ unallocated amount: Net revenues Operating income Net revenues Operating income Net revenues Operating income Net revenues Operating income Years ended March 31. net was due mainly to the losses resulting from the Japanese yen being stronger against foreign currencies at the time foreign currency bonds were redeemed during fiscal 2013 than those at the time of purchase. to ¥551. The Other Comprehensive Income and Loss Other comprehensive income increased by ¥856.3 billion during fiscal 2013 compared with the prior fiscal year.346 9.748 ¥3.5 billion. Net revenues for the automotive segment increased during fiscal 2013 by ¥3.7 billion.2%.5 0 -2. The increase in unrealized holding gains on securities was due mainly to changes in stock prices.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 55 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Net Income (Loss) Attributable to Toyota Motor Corporation and ROE ˾˾ Net income (loss) attributable to Toyota Motor Corporation bb ROE (Right scale) (¥ Billion) 1. to ¥231. Foreign exchange gains and losses include the differences between the value of foreign currency denominated assets and liabilities recognized through transactions in foreign currencies translated at prevailing exchange rates and the value at the date the transaction settled during the fiscal year.3%.438 315.100 21.

894 ¥(410.648 (56.319 5.3% 197.941) 162.24% 0.175 (4.653 ¥ (362. The changes in vehicle unit sales and changes in sales mix was due primarily to the increase in Toyota’s vehicle unit sales by 1.947) ¥18.279 ¥ 2. Oceania and Africa.0 billion increase in miscellaneous costs and others.5 billion.809. to ¥1.3 billion. Operating income from financial services operations increased by ¥9. This increase was due primarily to the recording of ¥12.814 (7. Ratio of credit loss experience in the United States is as follows: Years ended March 31.5% 563.356 (153.136 4.1%.148 312.6)% (130.129 4.1 ¥ –23.21% 0. or 6. or 1.586.0 billion charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the U.4%.2 –2.S.751.559 1.116 1.290 3.6 billion during fiscal 2013 compared with the prior fiscal year.035) ¥ 155.986.7%.6 –12.9 billion of valuation gains on interest rate swaps stated at fair value. and the ¥450.0 — –24. 2011 Change Amount Percentage (%) Net charge-offs as a percentage of average gross earning assets: Finance receivables Operating lease Total All Other Operations Segment Net revenues for Toyota’s other operations segments increased by ¥17.0 billion of favorable impact of changes in vehicle unit sales and sales mix.423.0 billion favorable impact of changes in exchange rates.5%.0% 215. to ¥53.094) 4.841) (4.066.5 billion.18 0.981.250) 12.167.760.073 (677.688 ¥18. 2011 2012 2012 vs.0 billion increase in labor costs.0 billion impact of increase in product quality related expenses and the ¥20.701 283. the ¥50. 2012 2013 Financial Services Operations Segment Net revenues for the financial services operations increased during fiscal 2013 by ¥70.0 –32.2 –8.503 13.0 billion favorable impact of fluctuations in foreign currency translation rates and the ¥25.886 1.29% 0.274 1.4 billion during fiscal 2013 compared with the prior fiscal year.790 108.374.040) 186.6)% +1.9% 432.918 468.6 billion.0 billion increase in research and development expenses.016 408.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 56 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.449 (40. compared with the prior fiscal year to ¥1.583.519 thousand vehicles compared with the prior fiscal year resulting from the increase in vehicle unit sales in every region.260) (48. partially offset by the ¥300. to ¥315.417) (0.6 –1.4 –18.497 1.7 — –2.8 billion during fiscal 2013 compared with the prior fiscal year.1 +35.5% ¥ 181.1% (207.409 17. .S.796 256. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [11 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations ¥150.142) 355.946 3.246 ¥11.7)% (17.977 160.183 2.624) (0. The increase in miscellaneous costs and others was due mainly to the ¥90.5 +0. 0.315) (12.3 billion.873 2. the ¥645.27% Net revenues: Japan North America Europe Asia Other* Intersegment elimination/unallocated amount Total Operating income (loss): Japan North America Europe Asia Other* Intersegment elimination/unallocated amount Total Operating margin Income before income taxes and equity in earnings of affiliated companies Net margin from income before income taxes and equity in earnings of affiliated companies Equity in earnings of affiliated companies Net income attributable to Toyota Motor Corporation Net margin attributable to Toyota Motor Corporation ¥10.429.0 billion impact of cost reduction efforts.315) (124.993. This increase was primarily due to the ¥36..396) ¥ 339. Operating income from Toyota’s other operations segments increased by ¥11.652) (0.170.2 — –45. or 3. or 27.187) (51. Results of Operations — Fiscal 2012 Compared with Fiscal 2011 Yen in millions Years ended March 31.334.627 1.993.060) ¥(112.5 * “Other” consists of Central and South America.11 0.8 billion increase in rental income from vehicles and equipment on operating leases.534 3. the ¥70.1 –30.

Toyota’s consolidated vehicle unit sales increased to 7. respectively. 2011 Change Amount Percentage (%) 1. and net revenues from financial services operations which decreased by 8. and would have increased by 1.0 billion.916 1. compared with the prior fiscal year. Excluding the difference in the Japanese yen value used for translation purposes of ¥650.5% in North America.3 * “Other” consists of Central and South America. Excluding the difference in the Japanese yen value used for translation purposes of ¥717.411 929. and 2.322.0 –1. net revenues would have been approximately ¥19.0 billion and other factors.2% in Asia. which decreased by 1.9 +0.6% increase compared with the prior fiscal year.202 1.9 billion.511.219 17.431) ¥(410.7% in Other. partially offset by changes in numbers of the vehicle unit sales and sales mix of approximately ¥320.8% in Asia and 1.7 billion.709 4.532.4 +0.9 billion.688 ¥18.301. a decrease of ¥410.6 billion.9% increase during fiscal 2012 compared with the prior fiscal year.3% in Europe.7 billion.S.S.9% in Asia compared with the prior fiscal year due to that market in the U.553.583.940 335. and emerging countries such as Asia have developed in a steady manner. net revenues in fiscal 2012 would have decreased by 5.071.753 16. The table below shows Toyota’s net revenues from external customers by product category and by business.520 17. This decrease reflects unfavorable impact of fluctuations in foreign currency translation rates and others of ¥717. a 1.6% compared with the prior fiscal year.7% in Other compared with the prior fiscal year. whereas net revenues increased by 1. a 2. net revenues from financial services operations would have been approximately ¥1.7 –8. This decrease was mainly due to the decrease of ¥18.2 Geographically. despite the Great East Japan Earthquake and the flood in Thailand.479 ¥14.3 billion during fiscal 2012.964. 5.278) 2.993.1 +10.7 billion.3 +4.000 1. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [12 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Net Revenues Toyota had net revenues for fiscal 2012 of ¥18.8 billion.3 –2.229 (12) (119) 6 127 25 27 –0.7 +24.035) –2. 2011 2012 2012 vs. consisting of net revenues from automotive operations and all other operations. Under these automotive market conditions.6% in Japan.538 17. The automotive market in fiscal 2012 increased by 9.352 thousand vehicles by 0.6 billion.7% during fiscal 2012 compared with the prior fiscal year to ¥17. Japan North America Europe Asia Other* Total The following table shows the number of financing contracts by geographic region at the end of the fiscal 2012 and 2011.535 796 649 552 8. net revenues from sales of products would have been ¥18.497 1. 1. Yen in millions Years ended March 31.138.771 (308.162. Toyota’s net revenues include net revenues from sales of products.3 billion rental revenue generated by vehicles and equipment on operating lease.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 57 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.6 –2. The increase in net revenues from sales of . 2012 vs. a 1.4 +0.1% in North America.604) (101.168 1. 3.511.164.634 (21.173.366 338. or 2.808 (358.539) 2.7 billion.7% in North America and 3.654 790 522 527 8.767 547.7 –2.507.378 497.6 +0.375) 49.2%. net revenues (before the elimination of intersegment revenues) for fiscal 2012 decreased by 12. Excluding the difference in the Japanese yen value used for translation purposes of ¥717. Oceania and Africa. Excluding the difference in the Japanese yen value used for translation purposes of ¥66.6% during fiscal 2012 compared with the prior fiscal year to ¥1.9% decrease during fiscal 2012 compared with the prior fiscal year.6% in Europe compared with the prior fiscal year.8 –1.820.071. Vehicles Parts and components for overseas production Parts and components for after service Other Total Automotive All Other Total sales of products Financial services Total ¥14.219 926.6% in Japan and 0.583.7 billion.737 ¥18. 2011 Change 2011 2012 Amount Percentage (%) products is due to an increase in Toyota vehicle unit sales by 44 thousand vehicles.697 4. Number of financing contracts in thousands Years ended March 31.653 ¥(342.

670 68.660) (122.635 4.355 ¥10. 2011 Change 2011 2012 Amount Percentage (%) Net revenues: Sales of products Financial services Total In North America. Net revenues: Sales of products Financial services Total ¥3. 2011 2012 2012 vs. Net revenues in North America decreased Europe compared with the prior fiscal year due to the decrease in vehicle unit sales and the unfavorable impact of fluctuations in foreign currency translation rates of ¥398.329 ¥11. 2011 Change 2011 2012 Amount Percentage (%) Years ended March 31.319 ¥176. or 30. such as a 18 thousand vehicles decrease in Italy and a 7 thousand vehicles decrease in Portugal.981.864. 2011 Change Amount Percentage (%) of shortages of parts supplies caused by the Great East Japan Earthquake and the flood in Thailand. 2011 Change 2011 2012 Amount Percentage (%) Toyota’s consolidated vehicle unit sales 2.944 ¥5.031 1.964 121. 2012 vs.7 ¥4.336 71.327 Yen in millions 72 +5.6 +3.7%. 2011 Change Amount Percentage (%) Thousands of units Years ended March 31.466 49.497 ¥1. primarily to the 2 thousand vehicles increase in vehicle unit sales compared with the prior fiscal year.403 ¥3.334 (2.438 ¥181. The increase in vehicle unit sales resulted primarily from introduction of new products such as Prius Ͱ and Aqua.354 ¥4. Toyota’s domestic and exported vehicle unit sales over the fiscal year increased by 130 North America Net revenues: Sales of products Financial services Total Net revenues in Europe as a whole increased due ¥1. 2012 vs.595) 9.751. 2011 2012 2012 vs.986.334.590) ¥(677.872 (159) –7.048. a 26 thousand vehicles.917 126. decrease in Corolla sales. or 22.993.8 –12. 2011 2012 2012 vs.429.8 Yen in millions Years ended March 31.3 Net revenues: Sales of products Financial services Total Although Toyota’s domestic and exported vehicle ¥10. both of which were mainly due to the European sovereign debt crisis.192 825. Japan Thousands of units Years ended March 31.871 58.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 58 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. although sales of Toyota brands’ vehicles decreased in some Asia Thousands of units Years ended March 31.275.4%.9 billion.040.910.374.073 +1.946 ¥15.8 –4. unit sales decreased due to the impact of the Great East Japan Earthquake in the first half of fiscal 2012. the vehicle unit sales decreased by 159 thousand vehicles compared with the prior fiscal year due to decreased production as a result Toyota’s consolidated vehicle unit sales 1. 2012 vs. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [13 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations The following is a discussion of net revenues in each geographic market (before the elimination of intersegment revenues).068 ¥3. 2011 Change 2011 2012 Amount Percentage (%) decrease in RAV4 sales. 2011 Change Amount Percentage (%) thousand vehicles compared with the prior fiscal year.6 +1.6 Thousands of units Years ended March 31.S.534 ¥3.2 .886 ¥(554. decrease in Tundra sales.136 ¥4.5 Years ended March 31. 2011 Change Amount Percentage (%) Toyota’s consolidated vehicle unit sales 796 798 Yen in millions 2 +0.246 ¥11.0 –14. or 7. consisting of a 67 thousand vehicles.260) –1. where the economy has been strong.603.925. 2012 vs. 2011 2012 2012 vs.276 ¥1. such as a 49 thousand vehicles increase in Russia.335 ¥(40.167.6 European countries compared with the prior fiscal year. and a 21 thousand vehicles.255 1.611 3.885) ¥12.741 Yen in millions 130 +3.449 +0.5 +19.250) –12.3%. Toyota’s consolidated vehicle unit sales* * including number of exported vehicle unit sales 3.0 –1.532 703.325.1 +0.274 ¥(49.6 Years ended March 31.161 ¥1.

2011 2012 2012 vs.795.910.3 billion favorable impact of fluctuations in foreign currency translation rates and others.9 billion increase in other various costs. The affected vehicle models included AlphardG.026 ¥(189.2 Years ended March 31. RX400h. Solara.760.9 –3. charge warning light indicators.383) Operating costs and expenses decreased by ¥297. Although Toyota’s vehicle unit sales in Asia increased.918 629. and increasing of handle operation force resulted from peeling of a bonded part of the engine crankshaft pulley.000 (432.941) –3.132 ¥1. partially offset by the ¥150.680 114.7 Toyota’s vehicle unit sales decreased by 25 thousand vehicles in Oceania.0 relation to damage to elements of the substrate and potential shutdown of the hybrid system that may have resulted from improper manufacturing of electronic converter control substrate.5 –2. 2011 Change ¥ 150.116 ¥1. general and administrative Total ¥15. partially offset by the ¥120. 2011 Change Amount Percentage (%) billion impact of decrease in product quality related expenses and others. Toyota announced in Japan and other regions a voluntary safety recall of certain models of Toyota and Lexus brands’ vehicles in Operating costs and expenses: Cost of products sold Cost of financing operations Selling. net revenues in Other Thousands of units Years ended March 31.0 billion impact of cost reduction efforts.228.0 billion impact of changes in vehicle unit sales and sales mix and other operational factors and the ¥134. Toyota’s consolidated vehicle unit sales 1.865) (36. a ¥50. 181 thousand vehicles were included in this service campaign. Changes in operating costs and expenses: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of cost reduction efforts Effect of increase in miscellaneous costs and others Total Yen in millions 2012 vs. ES330.462 ¥18. 2012 vs.000) 134. compared with the prior fiscal year.7 –1. or 1. Toyota announced in Japan the service campaign of certain models of Toyota in relation to abnormal noise and oil leakage that may have resulted from slack of bolts in the sub transmission and the rear wheel differential.985. and the ¥150. In November 2011.S. KlugerV. This decrease resulted from the ¥432.083 1.8 billion and others. Harrier. RX300.621) ¥(297.043 124.5 +8. This cost decreased because costs related to recalls and other safety measures occurred at a high level during the prior fiscal year.6 .409 ¥18.525.436 ¥1. RX330. Yen in millions Years ended March 31.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 59 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. 2011 2012 2012 vs.2 –5.637) 9. respectively.636. RX400h. to ¥18. The affected vehicle models included Harrier Hybrid.175 ¥(58.897) (70. 111 thousand vehicles were included in this recall. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [14 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Despite the flood in Thailand. The affected vehicle models included EstimaL.6%.0 billion increase in labor costs.917 ¥(297. 2011 Change 2011 2012 Amount Percentage (%) Asia decreased compared with the prior fiscal year mainly due to the unfavorable impact of fluctuations in foreign currency translation rates of ¥168. EstimaL.0 billion during fiscal 2012 compared with the prior fiscal year.284 Yen in millions (29) –2.809. Avalon.543 592.696 ¥(48. Camry. Kluger Hybrid. Windom. EstimaT and Wish.694. KlugerL.0 billion increase in research and development expenses and the ¥104.300) (150.783 ¥15. During fiscal 2012. Sienna. EstimaT. ES300. In September 2011. Kluger Hybrid.313 1. Toyota announced in Japan and other regions the voluntary safety recall of certain models of Toyota and Lexus brands’ vehicles in relation to abnormal noise. and Highlander Hybrid. See note 14 to the consolidated financial statements.228. Harrier Hybrid. and by 19 thousand vehicles in the Middle East.9 billion increase in miscellaneous costs and others.646 1. The increase in miscellaneous costs and others was due mainly to a ¥100.839. AlphardV. Operating Costs and Expenses ¥1. 2011 Change Amount Percentage (%) Net revenues: Sales of products Financial services Total Net revenues in Other decreased due to decreases in Toyota’s vehicle unit sales primarily as a result of shortages of parts supplies caused by the Great East Japan Earthquake and the flood in Thailand.383) –1.3 billion. Highlander. Toyota’s vehicle unit sales in Asia increased by 72 thousand vehicles compared with the prior fiscal year due to steady growth in automotive markets. Toyota announced recalls and other safety measures including the following: In June 2011.

raw materials prices were on an increasing trend.6 billion during fiscal 2012 compared with the prior fiscal year.7 billion favorable impact of fluctuations in foreign currency translation rates and others. general and administrative expenses decreased by ¥70. and ¥110.748 ¥(112.0 billion. to ¥1.839.6 billion favorable impact of fluctuations in foreign currency translation rates and Selling.0 billion impact of changes in vehicle unit sales and sales mix and other operational factors. Cost of Products Sold Cost of products sold decreased by ¥189. decreased by ¥56.6 billion during fiscal 2012 compared with the prior fiscal year. The amount of effect of cost reduction efforts includes the impact of fluctuation in the price of steel.6 billion.1%. lion.0%. partially offset by the ¥170.9%.000 (285.4 billion unfavorable impact of fluctuations in foreign currency translation rates and others. to ¥355. These cost reduction efforts related to ongoing value engineering and value analysis activities. ¥195. operating income (before elimination of intersegment profits). or 35. plastic parts and other production materials and parts. The decrease resulted from the ¥343. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [15 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations and Highlander Hybrid. partially offset by the ¥20. in North America. This decrease was due mainly to the ¥285. to ¥592. operating loss (before elimination of intersegment profits). 2011 Change others. or 1. During fiscal 2012. The decrease resulted from the ¥35. and the ¥100.9 billion during fiscal 2012 compared with the prior fiscal year.3 billion in Japan compared with the prior fiscal year. 2011 Change Changes in operating income and loss: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of increase in miscellaneous costs and others Effect of cost reduction efforts.000 (275. partially offset by the ¥135.000) 235. the use of common parts resulting in a reduction of part types and other manufacturing initiatives designed to reduce the costs of vehicle production.0 billion increase in miscellaneous costs and others.0 billion increase in miscellaneous costs and others. in Other. and the ¥150. however.795. or 18. The unfavorable impact of fluctuations in foreign currency translation rates and others included ¥250. General and Administrative Expenses Selling. and decreased by ¥51.2 billion. whereas it decreased by ¥153. Japan Yen in millions 2012 vs. and others.356 ¥155. and the ¥19.0 billion favorable impact of fluctuations in foreign currency translation rates and others. or 5. Cost Reduction Efforts During fiscal 2012. decreased by ¥155.0 billion increase in labor costs.8 billion recording of valuation losses on interest rate swaps stated at fair value. financial services operations.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 60 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.356 .4%. in Asia.0 billion.7 billion increase of cost reduction efforts. financial services operations. This decrease reflects the ¥53.0 billion decrease in operating income in the financial services operations. Toyota’s continued cost reduction efforts reduced operating costs and expenses by ¥150. to ¥15. precious metals.652) Toyota’s operating income decreased by ¥112. and others reflects the ¥150. continued cost reduction efforts together with suppliers contributed to the improvement in earnings by more than offsetting the effects from raw materials price increase. decrease in miscellaneous costs and others Total The following is a description of operating income and loss in each geographic market. or 24. Operating Income Yen in millions 2012 vs. 549 thousand vehicles were included in this recall.000) 102.0%.4 billion during fiscal 2012 compared with the prior fiscal year. in Europe compared with the prior fiscal year. non-ferrous alloys including aluminum.2 billion decrease for the financial services operations.400) (100.6 bilCost of Financing Operations Cost of financing operations decreased by ¥36.S.2%.0 billion impact of cost reduction efforts. or 32. During fiscal 2012.3 billion.8 billion. The increase in miscellaneous costs was due mainly to the ¥50.7%. increased by ¥4. The ¥102. and others Total ¥ 170. financial services operations. In fiscal 2012.1%.7 billion increase of cost reduction efforts. partially offset by the ¥10.8 billion.0 billion of favorable impact by changes in vehicle unit sales and sales mix and other operational factors and the ¥102. or 3.6 billion. Changes in operating income and loss: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of cost reduction efforts.0 billion unfavorable impact of fluctuations in foreign currency transaction rates.0 billion increase in research and development expenses and the ¥80.0 billion impact of cost reduction efforts. or 45.

The ¥22. net.648 .5 billion unfavorable impact of the fluctuations in foreign currency translation rates and others. 2011 Change Changes in operating income and loss: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of cost reduction efforts.1 billion in fiscal 2012 was primarily attributable to Toyota Motor Corporation’s receivables denominated in the U.3 billion impact of the cost reduction efforts. dollars and the yen as well as the euro and the yen. the functional currencies for Toyota Motor Corporation’s Brazilian and Thai ¥5.000) 11. net increased by ¥22. The increase in vehicle unit sales was mainly due to introduction of new products such as Prius Ͱ and Aqua. together with the impact of forward foreign currency exchange contracts.6 billion favorable impact of the fluctuation in foreign currency translation rates and others.8 billion. partially offset by ¥15. Foreign exchange gain. or 21. partially offset by the ¥275.0 billion increase in miscellaneous costs and others.8 billion during fiscal 2012 compared with the prior fiscal year. during fiscal 2012 compared with the prior fiscal year was mainly attributable to the losses incurred by certain subsidiaries during fiscal 2011.0 billion impact of the cost reduction efforts and ¥40. and the weakening of the Japanese yen against the U.0 billion.2 billion unfavorable impact of fluctuations in foreign currency translation rates and others.0 billion negative impact of changes in Asia vehicle unit sales and sales mix and other operational factors and the ¥1.8 billion increase in foreign exchange gain.0 billion increase in operating income in the financial services operations.187) The net gain of ¥37. The increase in operating income in Europe was due to the ¥10.594) ¥(153.S.3 billion. to ¥37.000) (1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 61 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.S. or 159.848 ¥ 4. which were mainly denominated in the U.S. Other Income and Expenses Interest and dividend income increased by ¥9.0 billion impact of cost reduction efforts and the ¥5.0 billion decrease in operating income in the financial services operations.787) ¥(56.9 billion during fiscal 2012 compared with the prior fiscal year. decrease in miscellaneous costs and others mainly reflect the ¥130.4%.0 billion negative impact of changes in vehicle unit sales and sales mix and other operational factors and the ¥90.094) ¥ Changes in operating income and loss: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of cost reduction efforts. ¥(10. or 10. 2011 Change Changes in operating income and loss: Effect of changes in vehicle unit sales and sales mix and other operational factors Effect of fluctuation in foreign currency translation rates and others Effect of cost reduction efforts. the Europe (5.0 billion of favorable impact by changes in vehicle unit sales and sales mix and other operational factors and ¥235. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [16 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations The decrease in operating losses in Japan reflects the ¥195. 2011 Change foreign currency transaction rates and others.000) (7.0 billion decrease in miscellaneous costs and others. dollars. partially offset by the ¥11. decrease in miscellaneous costs and others Total ¥(15.8%. Yen in millions 2012 vs. Interest expense decreased by ¥6.0%. and decrease in miscellaneous costs and others.0 billion unfavorable impact of effect of fluctuation in North America Yen in millions 2012 vs.0 billion negative impact of changes in vehicle unit sales and sales mix and other operational factors and others and the ¥35.200) 20. to ¥99.0 billion increase in miscellaneous costs and others. The cost reduction efforts.500) (140. increase in miscellaneous costs and others Total The decrease in operating income in North America was due to the ¥55. specifically transactional gains on account of an increase in export volume due to the recovery of production levels in the second half of fiscal 2012 after the Great East Japan Earthquake. the ¥7.S. Such losses were principally due to the Brazilian real and the Thai baht. dollar in the second half of fiscal 2012. to ¥22. increase in miscellaneous costs and others Total The decrease in operating income in Asia was due to the ¥10.600 (57. Yen in millions 2012 vs.1 billion during fiscal 2012 compared with the prior fiscal year.

5 billion. both strengthening against the U.048. The amounts presented are prior to intersegment elimination.089) (560.3 billion. and the ¥150.994. Other loss.663 6.3 billion decrease in rental income from vehicles and equipment on operating leases.4 — — .0 –74.205 1.6 billion.7 billion compared with the prior fiscal year. compared with the prior fiscal year to ¥1.324 358. The changes in vehicle unit sales and changes in sales mix was due primarily to an increase in Toyota’s vehicle unit sales by 44 thousand vehicles compared with the prior fiscal year resulting from the introduction of new products in spite of the impact of the Great East Japan Earthquake and the flood in Thailand. Net revenues for the automotive segment decreased during fiscal 2012 by ¥342.6 billion in the prior fiscal year.S.2 billion unfavorable impact of fluctuations in foreign currency translation rates and others. which was higher than the statutory tax rate in Japan.0 billion increase in miscellaneous costs and others. This decrease in operating income was due to the ¥250.320 ¥16.0 billion increase in labor costs and the ¥50.2%. This was due to the recognition of impairment losses on available-for-sale securities.4 billion. and from unrealized holding gains on securities in fiscal 2012 of ¥129.8 billion.820 (52.556) ¥(342. or 16.S.5 +7.0 billion increase in research and development expenses.5 billion during fiscal 2012 compared with the prior fiscal year.438 972. to ¥283. 2011 2012 Segment Information The following is a discussion of results of operations for each of Toyota’s operating segments.8 –7. Equity in earnings of affiliated companies during fiscal 2012 decreased by ¥17. and other operational factors.7%.1%. or 30.1 billion in the prior fiscal year.1 billion for fiscal 2012 compared with the prior fiscal year. respectively. This decrease resulted from unfavorable foreign currency translation adjustments losses of ¥87.192.7 billion in fiscal 2012 compared with losses of ¥287. partially offset by the ¥170.100.132) (11.3 billion during fiscal 2012 compared with the prior fiscal year to ¥21. The increase in unrealized holding gains on securities was due to changes in stock prices.546 85. Operating income from the automotive operations decreased by ¥64. fiscal 2012 in net income attributable to the shareholders of consolidated subsidiaries. to ¥262. This was due to recurring items such as the valuation allowance and deferred tax liabilities relating to undistributed earnings in affiliated companies accounted for by the equity method.337.043) (3.0 billion unfavorable impact of fluctuations in foreign currency rates and the ¥100. dollar.774) (64.242 42.8 billion to ¥34. Yen in millions 2012 vs.062 (508. Financial Services Operations Segment Net revenues for the financial services operations decreased during fiscal 2012 by ¥91.0 billion of favorable impact by changes in vehicle unit sales and sales mix.0 billion of favorable impact by changes in vehicle unit sales and sales mix.0 billion effect of cost reduction efforts. Net Income Attributable to Toyota Motor Corporation Net income attributable to the shareholders of Toyota Motor Corporation decreased by ¥124.0 billion to ¥36. or 47.340) –2. Automotive: Financial Services: All Other: Intersegment elimination/ unallocated amount: Net revenues Operating income Net revenues Operating income Net revenues Operating income Net revenues Operating income Years ended March 31.994. Income Taxes The provision for income taxes decreased by ¥50. to ¥84.9 billion and the ¥18.290) (91. partially offset by the ¥320.7 billion.6%.881) (51. Automotive Operations Segment The automotive operations segment is Toyota’s largest operating segment by net revenues. or 7. or 8. compared with the prior fiscal year to ¥16. The decrease reflects the ¥649.683 1. or 2.8 billion during fiscal 2012 compared with the prior fiscal year. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [17 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations subsidiaries.5 billion.9 +19. The increase in miscellaneous costs and others was due primarily to the ¥100. This decrease was primarily due to the unfavorable impact of fluctuations in foreign currency translation rates and others of ¥66. net decreased by ¥56.2 billion during fiscal 2012 compared with the prior fiscal year due to the decrease in income before income taxes.3 billion. The effective tax rate for fiscal 2012 was 60.915 35.5%. This increase was due to an increase during Other Comprehensive Income and Loss Other comprehensive loss decreased by ¥263.100.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 62 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. to ¥197.7 –14.252 1.973 21.9%.842) 76.280 306. This decrease was due to a decrease during fiscal 2012 in net income attributable to the shareholders of affiliated companies accounted for by the equity method.216) (14.0%.3 billion compared with losses of ¥26. Net Income and Loss Attributable to Noncontrolling Interests and Equity in Earnings of Affiliated Companies Net income attributable to noncontrolling interests increased by ¥27.6 billion. decreasing the value of assets denominated in dollars that were not settled during the year.7 billion during fiscal 2012 compared with the prior fiscal year. 2011 Change Amount Percentage (%) ¥17.

dollar and ¥120 to the euro. or 19. 2011 2012 operating results.8 billion of valuation losses on interest rate swaps stated at fair value. See “Overview—Currency Fluctuations” for further discussion. Toyota is assuming an average exchange rate of ¥90 to the U. With the foregoing external factors in mind. to ¥42.048.000 500 0 1. economic conditions and others.S.000 Capital Expenditures for Property.S. or 14.000 300 0 efforts.500 2.S. to ¥306. including those described in “Risk Factors”. the U.6 billion.8 billion.500 600 1. and cost reduction 500 Net Cash Provided by Operating Activities and Free Cash Flow* ˾˾ Net cash provided by operating activities ˾˾ Free cash flow (¥ Billion) 3. and net income attributable to Toyota Motor Corporation will increase in fiscal 2014. factors expected to contribute to a decrease in operating income include increase in miscellaneous costs and others. amid the change in market structure.9%. still faces the risk of economic stagnation due to the sovereign debt crisis and other factors. increased vehicle unit sales through marketing efforts. fierce competition exists on a global scale. In particular.000 1. or 7. The automotive market is expected to see recovery in the U. Toyota’s actual results of operations could vary significantly from those described above as a result of unanticipated changes in the factors described above or other factors. plant and equipment.22 0. Outlook As for our world future business environment. Toyota expects that net revenues for fiscal 2014 will increase compared with fiscal 2013 as results of a favorable impact of fluctuations in foreign currency translation rates and an increase in vehicle unit sales.61% 0.500 2. dollar can have a material adverse effect on Toyota’s Net charge-offs as a percentage of average gross earning assets: Finance receivables Operating lease Total All Other Operations Segment Net revenues for Toyota’s other operations segments increased by ¥76.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 63 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. For the purposes of this outlook discussion. As the 0 FY ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 * (Net cash provided by operating activities)(Capital expenditures for property. Toyota has funded its capital expenditures and research and development activities through cash generated by operations. though a gradual bottoming out is anticipated. Europe.500 1. meanwhile. Liquidity and Capital Resources Historically. economy is expected to benefit from ongoing moderate recovery and a pickup in the pace of economic expansion in emerging countries.5%. Toyota expects that operating income will increase in fiscal 2014 compared with fiscal 2013.52% 0.24% 0. and expansion in emerging countries.8 billion. as seen in the expansion and diversification of demand for eco-cars backed by rising environmental consciousness. Plant and Equipment* and Depreciation ˾˾ Capital expenditures ˾˾ Depreciation (¥ Billion) 1.4%.S. 0. to ¥1. Toyota expects that income before income taxes and equity in earnings of affiliated companies Ratio of credit loss experience in the United States is as follows: Years ended March 31. With respect to operating income.4 billion during fiscal 2012 compared with the prior fiscal year. However.000 2. market demand for Toyota’s products. See “Cautionary Statement Concerning Forward-Looking Statements”.200 900 Cash and Cash Equivalents at End of Year (¥ Billion) 2. excluding vehicles and equipment on operating leases) * Excluding vehicles and equipment on operating leases . factors expected to contribute to an increase in operating income include the favorable impact of fluctuations in foreign currency rates.S. Exchange rate fluctuations can materially affect Toyota’s operating results.9 billion during fiscal 2012 compared with the prior fiscal year. result. On the other hand.21% Operating income from Toyota’s other operations segments increased by ¥6. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [18 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Operating income from financial services operations decreased by ¥51. a strengthening of the Japanese yen against the U. The foregoing statements are forward-looking statements based upon Toyota’s management’s assumptions and beliefs regarding exchange rates.0 billion during fiscal 2012 compared with the prior fiscal year.11 0. Also.500 1. This decrease was due primarily to the recording of ¥20.

However. from both cash generated by operations and borrowings by its sales finance subsidiaries. compared with ¥1.3 billion for fiscal 2013.6 billion to ¥3. 2013.6 billion as of March 31.1 billion decrease in purchases of marketable securities and security investments.3 billion for fiscal 2013. Inventory levels were at comparable levels as between the ends of fiscal 2010 and 2011. In addition. Net cash provided by operating activities increased by ¥998.4 billion for fiscal 2012. This increase was due primarily to an increase of investments in North America and Asia. The decrease was primarily attributable to the ¥112.4 billion for fiscal 2012.445.6 billion to ¥1. compared with ¥2.1% over the ¥723. compared with ¥2. . an increase of 38. Toyota will use its funds for the development of environment technologies.451. The decrease was primarily attributable to the ¥536.452.0 billion increase in purchases of investments in property.5 billion to ¥1.027. maintenance and replacement of manufacturing facilities. the inventory level at the end of fiscal 2012 increased due to the recovery of production and sales after the Great East Japan Earthquake.8 billion to ¥2. The increase was primarily attributable to the ¥965.3 billion decrease in sales and maturity of marketable securities and security investments. Furthermore. time deposits were ¥106.442. Cash and cash equivalents were ¥1.7 billion in fiscal 2012 as a result of a reduction of Toyota’s capital expenditures after the Lehman financial crisis compared with capital expenditures before such financial crisis.116. to the ¥426. were ¥854. and information concerning Toyota’s principal capital expenditures and divestitures currently in progress. plant and equipment. The increase was primarily attributable to the ¥796. while the reduction in sales after the Lehman financial crisis and other factors kept the inventory level low at the end of fiscal 2010.718. which resulted in reducing the net cash provided by operating activities by ¥396. dollars.584.2 billion increase in operating income.6 billion decrease in proceeds from issuance of long-term debt and to the ¥377.7 billion and marketable securities were ¥1. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [19 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations In fiscal 2014.5 billion in total capital expenditures during the prior fiscal year. The decrease in depreciation favorably affected net income while it did not affect the net cash provided by operating activities. Toyota does not expect environmental matters to have a material impact on its financial position.5 billion increase in marketable securities and security investments and to the ¥311.S.248.6 billion to ¥355. excluding vehicles and equipment on operating leases. plant and equipment.5 billion during fiscal 2013. Toyota funds its financing programs for customers and dealers.5 billion to ¥477. partially offset by a ¥859.4 billion decrease in payments of long-term debt. Net cash used in investing activities decreased by ¥673. and the introduction of new products. Toyota expects to sufficiently fund its capital expenditures and research and development activities through cash and cash equivalents on hand. and cash generated by operations. Net cash provided by operating activities decreased by ¥571. to a decline in depreciation expense of ¥107.452. Most of Toyota’s cash and cash equivalents are held in the Japanese yen or in the U.3 billion decrease for fiscal 2012.2 billion as of March 31.7 billion. Total capital expenditures for property.S.119. compared with ¥1.7 billion and a reduction in inventory. See “Results of Operations—Fiscal 2013 Compared with Fiscal 2012—Operating income” for further information regarding the increase in operating income. Toyota seeks to expand its ability to raise funds locally in markets throughout the world by expanding its network of finance subsidiaries.2 billion increase for fiscal 2013.5 billion increase in finance receivables.4 billion increase in proceeds from issuance of long-term debt and to the ¥185.5% over the ¥808. to be approximately ¥910.3 billion for fiscal 2011. This increase was due to an increase in investments in the financial services operations. depreciation decreased by ¥107. 2013. See “Information on the Company— Business Overview—Capital Expenditures and Divestitures” in Toyota’s annual report on Form-20F for information regarding Toyota’s material capital expenditures and divestitures for fiscal 2011. compared with ¥434. The impact of changes in interest and other items on net cash provided by operating activities were also not material. the inventory level at the end of fiscal 2011 was approximately equivalent because of the Great East Japan Earthquake and the subsequent downturn in production.0 billion during fiscal 2014.3 billion increase for fiscal 2011.3 billion decrease for fiscal 2012.0 billion for fiscal 2011. Based on currently available information.9 billion increase in payments of long-term debt. Total capital expenditures for vehicles and equipment on operating leases were ¥1. uncertainty exists with respect to Toyota’s obligations under current and future environment regulations as described in “Information on the Company—Business Overview—Governmental Regulation. changes in other working capital items largely offset each other such that Toyota believes the impact of such changes on net cash provided by operating activities was not material.024.442. liquidity or cash flows during fiscal 2014. Net cash used in investing activities increased by ¥1. Net cash provided by or used in financing activities decreased by ¥789. Toyota expects investments in property. 2012 and 2013. compared with ¥355. results of operations.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 64 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. The decrease was primarily attributable to the ¥1. including loans and leasing programs. Even though other working capital items significantly fluctuated in line with the significant decrease in production and sales in March 2011 due to the Great East Japan Earthquake and increase in sales in the second half of fiscal 2012 due to the recovery of production levels from the Great East Japan Earthquake. This increase of inventory involved related expenditures incurred in producing the inventory.6 billion decrease in operating income.5 billion during fiscal 2013.6 billion for fiscal 2012.6 billion for fiscal 2012. However. an increase of 18.5 billion in expenditures from the prior fiscal year. excluding vehicles and equipment on operating leases. Net cash provided by or used in financing activities increased by ¥832. The increase was primarily attributable to the ¥630. Environmental and Safety Standards” in Toyota’s annual report on Form 20-F.

2013. or 21. Toyota’s total interest bearing debt was 116. marketable debt securities and its investment in monetary trust funds. partially offset by the impacts of depreciation charges during the year.295. Accrued expenses increased during fiscal 2013 by ¥357.7%. which Toyota defines as cash and cash equivalents. or 5. dollars.000 2. The current portion of long-term debt increased during fiscal 2013 by ¥191. or 1. This decrease was due mainly to a decrease in production volume in the fourth quarter of fiscal 2013. to ¥2. time deposits. to ¥504. The following table provides information for credit rating of Toyota’s short-term borrowing and longterm debt from rating agencies. A credit rating is not a recommendation to buy.8 billion.500 3.1%. Marketable securities and other securities investments. 2012.089. or 7.000 4.5%. primarily reflecting fluctuations in foreign currency translation rates and the increase in the capital expenditures.5 billion. approximately 40% of long-term debt was denominated in the U.000 7.6%.00% to 27.0 billion.5% and in Other 13. despite an increase in . or 5.000 0 5. or 9. to ¥1. or 24.500 0 20 10 0 30 Shareholders’ Equity and Equity Ratio ˾˾ Shareholders’ equity bb Equity ratio (Right scale) (¥ Billion) 15.8%. or 24.S. 2013. or 19.000 5.8 billion. as of May 31.S. Inventories increased during fiscal 2013 by ¥93.1 billion.0 billion. Inc.9%. time deposits. Total finance receivables.704.8 billion.4%. to ¥153.9%.000 12. Toyota hedges interest rate risk exposure of fixed-rate borrowings by entering Short-term borrowing Long-term debt A-1+ AA- P-1 Aa3 — AA+ Toyota’s unfunded pension liabilities of Japanese plans decreased during fiscal 2013 by ¥48. unsecured notes and long-term capital lease obligations with interest rates ranging from 0. A credit rating may be subject to withdrawal or revision at any time.30%.061. or 26.0%. to ¥4. This increase was due average interest rate of 2. compared with 113. Standard & Poor’s Ratings Group (S&P).387.S.9 billion.6 billion. including those included in current assets.0%. marketable debt securities and investment in monetary trust funds Liquid assets. As of March 31.0 billion. medium-term notes.7 billion. Toyota’s total borrowings increased during fiscal 2013 by ¥2. to ¥7.5 billion. 17% in the Japanese yen. This increase was due mainly to the fluctuations in foreign currency translation rates. This decrease was due to a decrease in the volume of sales in the fourth quarter of fiscal 2013.6%.4%.4%.52%. The increase in total borrowings resulted from an increase in medium-term notes. or 18. increased during fiscal 2013 by ¥1. in Japan 9. As of March 31. plant and equipment increased during fiscal 2013 by ¥615.000 1.804. and maturity dates ranging from 2013 to 2050.337. or 16. Moody’s Investors Services (Moody’s). (R&I). sell or hold securities. 2013.31% and commercial paper with a weighted-average interest rate of 0. and 30% in other currencies.1 billion.4 billion. Toyota’s long-term debt consists of unsecured and secured loans. net increased during fiscal 2013 by ¥2.8% as of March 31.000 (%) 60 50 40 mainly to the charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the U. and Rating and Investment Information.8%.5 billion. The unfunded amounts will be funded through future cash contributions by Toyota or in some cases will be settled on the retirement date of each covered employee. to ¥12.043. On the other hand. S&P Moody’s R&I FY ’09 ’10 ’11 ’12 ’13 FY ’09 ’10 ’11 ’12 ’13 * Cash and cash equivalents. The decrease in unfunded pension liabilities of the Japanese plans as of the end of fiscal 2013 compared with the prior fiscal year end reflects mainly an increase in pension assets due to rising equity security prices. 13% in the Australian dollars. less allowance for doubtful accounts decreased during fiscal 2013 by ¥28.5%. Each rating should be evaluated separately of any other rating.7%.2 billion.5 billion. or 18. to ¥6. or 8. increased during fiscal 2013 by ¥1. Toyota’s shortterm borrowings consist of loans with a weighted- into interest rate swaps. and the increase of product quality related expenses resulted from the weakening of the Japanese yen at the end of fiscal 2013 against other currencies in comparison to the prior fiscal year. in Europe 10.500 10.6 billion.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 65 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.126.4 billion. the liabilities of foreign plans increased during fiscal 2013 by ¥30.344. Accounts and notes payable decreased during fiscal 2013 by ¥128. 2013.1%.000 2. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [20 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquid Assets* (¥ Billion) 7. in Asia 9.8 billion. finance receivables were geographically distributed as follows: in North America 57. Short-term borrowings increased during fiscal 2013 by ¥638. Income taxes payable increased during fiscal 2013 by ¥22.971. Trade accounts and notes receivable.8 billion.000 6. This increase was due mainly to the fluctuations in foreign currency translation rates and an increase in the number of financing contracts.6 billion. or 17. to ¥1. As of March 31.5%.4 billion and the non-current portion increased by ¥1. as a result of reflecting fluctuations in foreign currency translation rates. reflecting an increase in the fair values of common stocks and purchase of marketable securities and security investments. Property.1 billion.715. There are no material seasonal variations in Toyota’s borrowings requirements.3% of Toyota Motor Corporation shareholders’ equity.8%.

As customary for credit card businesses. Toyota enters into long-term arrangements with suppliers for purchases of certain raw materials. the value of the underlying collateral or guarantees may not be sufficient to cover Toyota’s exposure under such agreements.795. Toyota is considered the primary beneficiary of these special purpose entities and therefore consolidates them. and working capital requirements. Toyota is required to execute its guarantee primarily when customers are unable to make required payments. it will continue to be able to access funds from external sources in large amounts and at relatively low costs. Toyota is entitled to recover any amounts paid by it from the customers whose obligations it guaranteed. These credit facilities may be used for business acquisitions. 2013.5 billion have been provided as of March 31. On the other hand. as appropriate.S. business acquisitions. components and services. These arrangements may contain fixed/minimum quantity purchase requirements. for wholesale inventory financing. Toyota believes that it maintains sufficient liquidity for its present requirements and that by maintaining its high credit ratings. Toyota remains centralized. and working capital requirements. financing to various multi-franchise dealer organizations. ranged from one month to 35 years.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 66 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.4 billion. these credit limits. real estate purchases. as appropriate. Toyota’s outstanding credit facilities with dealers totaled ¥1. vehicle inventory. 2013. as and when requested by Toyota dealers. Toyota’s financial services operations also provide Guarantees Toyota enters into certain guarantee contracts with its dealers to guarantee customers’ payments of their installment payables that arise from installment contracts between customers and Toyota dealers. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [21 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations pension benefit obligations resulted from a decline in discount rate. often as part of a lending consortium. capital lease obligations. Liabilities for these guarantees of ¥6.8 billion as of March 31. 22 and 23 to the consolidated financial statements. referred to as dealer groups. These loans are typically collateralized with liens on real estate. capital expenditures and financial services operations efficiently even if earnings are subject to short-term fluctuations. facilities refurbishment. 2013. Under these guarantee contracts. as well as Toyota’s successful implementation of its business strategy. and/or other dealership assets. and to actively monitor marketplace exposures. real estate purchases. . the increase in liabilities of foreign plans reflects the increase in pension benefit obligations resulted from a decline in discount rate. to adhere to stringent counterparty credit standards. Toyota’s ability to maintain its high credit ratings is subject to a number of factors. The key element of Toyota’s financial strategy is maintaining a strong financial position that will allow Toyota to fund its research and development initiatives. Toyota maintains credit facilities with holders of credit cards issued by Toyota. 2013 is ¥1. Toyota prices the credit facilities according to the risks assumed in entering into the credit facility. Contractual Obligations and Commitments For information regarding debt obligations. These factors include general economic conditions in Japan and the other major markets in which Toyota does business. they are generally shorter than the useful lives of products sold. The maximum potential amount of future payments as of March 31. Although loans made to customers through these facilities are not secured. Toyota enters into such arrangements to facilitate an adequate supply of these materials and services. as part of Toyota’s normal business practices. However. see notes 13. including amounts maturing in each of the next five years. Toyota employs its own risk management policy which includes an analysis of information provided by financial institutions in alliance with Toyota.849. 2013. See note 19 to the consolidated financial statements for further discussion. In addition. some of which are not within Toyota’s control. facilities refurbishment. Toyota obtains a personal guarantee from the dealer or corporate guarantee from the dealership when deemed prudent. operating lease obligations and other obligations. Lending Commitments Credit Facilities with Credit Card Holders Toyota’s financial services operations issue credit cards to customers. and is pursuing global efficiency of its financial services operations through Toyota Financial Services Corporation. Although the loans are typically collateralized or guaranteed. and as of March 31. Toyota has not entered into any off-balance sheet securitization transactions during fiscal 2013.2 billion as of March 31. Guarantee periods are set to match the maturity of installment payments. Toyota’s treasury policy is to maintain controls on all exposures. These facilities are used upon each holder’s requests up to the limits established on an individual holder’s basis. for the purposes of minimizing credit risks and of appropriately establishing credit limits for each individual credit card holder. Off-Balance Sheet Arrangements Toyota uses its securitization program as part of its funding through special purpose entities for its financial services operations. Credit Facilities with Dealers Toyota’s financial services operations maintain credit facilities with dealers. Outstanding credit facilities with credit card holders were ¥245. Toyota periodically reviews and revises.

902 3. and for interim period within the fiscal year. Management does not expect this guidance to have a material impact on Toyota’s consolidated financial statements. This guidance requires additional disclosures about gross and net information for assets and liabilities including financial instruments eligible for offset in the balance sheets.822 ¥503.493 ¥813. Beginning January 1. the effect of significant amounts reclassified out of each component of accumulated other comprehensive income based on its source. Yen in millions Amount of Commitment Expiration Per Period Total Amounts Committed Less than 1 year 1 to 3 years 3 to 5 years 5 years and after Recent Accounting Pronouncements in the United States In December 2011.688 million overseas to its pension plans in fiscal 2014.155.491 Commitments for the purchase of property. this requirement will also be applicable to vehicles put on the market before July 1.399 4.853 2. In February 2013.839 3.260.086 Capital lease obligations (note 13) 21.644 111.295 — — — Long-term debt* (note 13) 10. FASB issued updated guidance of disclosures about offsetting assets and liabilities.027. Toyota is unable to make reasonable estimates of the period of cash settlement with respect to liabilities recognized for uncertain tax benefits. either in a single note or parenthetically on the face of the financial statements.098 ¥1.207 * “Long-term debt” represents future principal payments.849.788.761 132.139 ¥7.333 3.108 ¥134.233 ¥ — ¥ — ¥ — Commercial paper 3.062.691.581 220. 2007. respectively. This guidance requires to present.701 21.901 57.754 ¥813. by 2015.754 ¥503.020.062.248 Non-cancelable operating lease obligations (note 22) 61.233 ¥1. and for interim period within the fiscal year.631 2. 2013.094 million domestically and ¥8. 2002.120. Commercial Commitments (note 23): Maximum potential exposure to guarantees given in the ordinary course of business Total Commercial Commitments ¥1. Legislation Regarding End-of-Life Vehicles In October 2000.775 986.700.552 299. 2002 and dismantling and recycling those vehicles. the European Union enforced a directive that requires member states to promulgate regulations implementing the following: • manufacturers shall bear all or a significant part of the costs for taking back end-of-life vehicles put on the market after July 1. This guidance is effective for fiscal year beginning on or after December 15.114 Estimated amount of interest expense on long-term debt 757.027.217 9.822 ¥397.299 17.083. FASB issued updated guidance on the presentation of items reclassified out of . plant and other assets (note 23) 203. See note 16 to the consolidated financial statements for further discussion.849. Yen in millions Payments Due by Period Total Less than 1 year 1 to 3 years 3 to 5 years 5 years and after Related Party Transactions Toyota does not have any significant related party transactions other than transactions with affiliated companies in the ordinary course of business.268 Total ¥15.877 11. See note 23 to the consolidated financial statements for further discussion.493 ¥1.S. 2013. Toyota expects to contribute ¥54.108 ¥397. and • end-of-life vehicles must meet actual re-use of 80% and re-use as material or energy of 85%.777 ¥4. 2012. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [22 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations The following tables summarize Toyota’s contractual obligations and commercial commitments as of March 31.809 cal year beginning on or after January 1.545. of vehicle weight by 2006.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 67 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. • vehicles type-approved and put on the market after December 15.299 126.970 9. respectively. Contractual Obligations: Short-term borrowings (note 13) Loans ¥ 1. Management does not expect this guidance to have a material impact on Toyota’s consolidated financial statements.295 3. and accordingly such liabilities are excluded from the table above.809 ¥134. See note 12 to the consolidated financial statements for further discussion.386 11. 2008 shall be re-usable and/or recyclable to a minimum of 85% by weight per vehicle and shall be re-usable and/or recoverable to a minimum of 95% by weight per vehicle.095 4.057 ¥2. rising to 85% and 95%. • manufacturers may not use certain hazardous materials in vehicles sold after July 2003. This guidance is effective for fisaccumulated other comprehensive income.

As the historical recovery amounts received from suppliers is used as a factor in Toyota’s calculation of estimated accrued warranty cost. The estimate of warranty claim per unit is calculated by dividing the actual amounts of warranty claim. and aggregates such liabilities in determining the final liability amount. actual warranty costs may differ from the estimated amounts and could require additional warranty provisions. Toyota calculates these liabilities for units sold in the current period and each of the past 10 fiscal years. All product warranties are consistent with commercial practices. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [23 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Critical Accounting Estimates The consolidated financial statements of Toyota are prepared in conformity with accounting principles generally accepted in the United States of America. the geographic location of the sale and other factors. The “expected liability for the cost of recalls and other safety measures” are calculated by multiplying the “sales unit” by the “expected average repair cost per unit”. judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Thus. . The foregoing evaluations are inherently uncertain. The “pattern of payment occurrence” represents a ratio that shows the measure of payment occurrence over 10 years based on actual payments with regard to units sold within 10 years. Toyota provides for such “liabilities for recalls and other safety measures” at the time of vehicle sales comprehensively by aggregate sales of various models in a certain period by geographical regions instead of by individual models. Allowance for Doubtful Accounts and Credit Losses Natures of estimates and assumptions Retail receivables and finance lease receivables consist of retail installment sales contracts secured by passenger cars and commercial vehicles. While there is no difference in the calculation method among geographical regions. The preparation of these financial statements requires the use of estimates. Toyota includes a provision for estimated product warranty costs as a component of cost of sales at the time the related sale is recognized. If these factors require a significant increase in Toyota’s accrued estimated warranty costs. The accrued warranty costs represent management’s best estimate at the time of sale of the total costs that Toyota will incur to repair or replace product parts that fail while still under warranty. in estimating the comprehensive provision. the following may involve a higher degree of judgments. However. Collectability risks include consumer and dealer insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying values of these receivables. Provisions for product warranties are provided for specific periods of time and/or usage of the product and vary depending upon the nature of the product. Toyota believes it is reasonable to calculate the liabilities by geographical regions because of factors such as varying labor costs among geographical regions. net of claim recovery cost received from suppliers. estimates and assumptions: Product Warranties and Recalls and Other Safety Measures Toyota generally warrants its products against certain manufacturing and other defects. As described above. The “liabilities for the costs of recalls and other safety measures” recorded in the balance sheet is calculated by deducting the “accumulated amount of repair cost paid” from the “expected liability for the cost of recalls and other safety measures”. The “expected average repair cost per unit” is calculated based on dividing the “accumulated amount of repair cost paid per unit” by the “pattern of payment occurrences”. The amount of accrued estimated warranty costs is primarily based on historical experience of product failures as well as current information on repair costs. included as a component of cost of sales at the time of vehicle sale. which is considered as part of our estimation process for future recalls and other safety measures. Toyota may seek recovery to suppliers over the life of the warranty. by the number of sales units for the fiscal year. an individual recall announcement generally does not directly impact the financial statements when it occurs. Consequently. Toyota maintains an allowance for doubtful accounts and credit losses representing management’s estimate of the amount of asset impairment in the portfolios Factors that may cause a difference between the amount accrued at the time of vehicle sale and actual payment on individual recalls and other safety measures mainly include actual cost of recalls and safety measures during the period being significantly different from the accumulated amount of repair cost paid per unit (generally comprised of parts and labor) and the actual pattern of payment occurrence during the period being significantly different from the pattern of the payment occurrence in the past.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 68 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. An estimate of warranty claim accrued for each fiscal year is calculated based on the estimate of warranty claim per unit. as well as product warranty cost described above. The amount of warranty costs accrued also contains an estimate of warranty claim recoveries to be received from suppliers. Toyota believes that there is not a significant uncertainty of estimated amounts based on historical experience regarding recoveries received from suppliers. As such. as they require material estimates and some products’ warranties extend for several years. the actual cost of individual recalls and other safety measures is included as a component of the calculation such as the accumulated amount of repair cost paid per unit.S. Toyota accrues for costs of recalls and other safety measures. it would negatively affect future operating results of the automotive operations. and there are no other significant special terms and conditions including cap on amounts that can be recovered. the estimated accrued warranty cost may change depending on the average recovery amounts received from suppliers in the past. As a matter of policy. this liability is evaluated every period based on new data and are adjusted as appropriate. Toyota believes that of its significant accounting policies.

However.950 . which has a greater impact on Toyota’s results of operations. Factors affecting the estimated residual value at lease maturity include. The overall allowance for credit losses is evaluated at least quarterly. Severity of loss is the extent to which the end-of-term fair value of a lease is less than its carrying value at lease end. and projected loss severity. The extent of the impact this will have on the end of term residual value depends on the significance of the incentive programs and whether they are sustained over a number of periods. is influenced by two factors: frequency of occurrence and expected severity of loss. new vehicle incentive programs. To the extent that sales incentives remain an integral part of sales promotion. Such factors might adversely affect the results of operations for financial services due to significant charges reducing the estimated residual value. interest rates. additional provisions may be necessary due to (i) changes in management estimates and assumptions about asset impairments. resale prices of used vehicles and. (ii) information that indicates changes in expected future cash flows. exposures to credit losses are segmented into the two primary categories of “consumer” and “dealer”. The “dealer” category consists of wholesale and other dealer loan receivables. Toyota determines the allowance for doubtful accounts and credit losses based on a systematic. correspondingly. 2013 ¥3. are valued at cost and depreciated over their estimated useful lives using the straight-line method to their estimated residual values. Toyota’s “consumer” category consists of smaller balances that are homogenous retail receivables and finance lease receivables. current economic events and conditions. Toyota evaluates the recoverability of the carrying values of its leased vehicles for impairment when there are indications of declines in residual values. considering a variety of assumptions and factors to determine whether reserves are considered adequate to cover probable losses. For evaluation purposes. including the amounts and timing of future cash flows expected to be received. management performs periodic evaluations of estimated end-ofterm fair values to determine whether estimates used in the determination of the contractual residual value are still considered reasonable. the general economic outlook. ongoing review and evaluation performed as part of the credit-risk evaluation process. where Toyota is the lessor. and if impaired. projected vehicle return rates. it could negatively affect future operating results of the financial services operations. considering a variety of assumptions and factors to determine whether reserves are considered adequate to cover probable losses. new vehicle pricing. new vehicle pricing. The table below represents the impact on the allowance for credit losses in Toyota’s financial services operations of the change in frequency of occurrence or expected severity of loss as any change impacts most significantly on the financial services operations. which may be susceptible to significant change. adversely impacting the expected residual value of the current operating lease portfolio and increasing the provision for residual value losses. or (iii) changes in economic and other events and conditions. A higher rate of vehicle returns exposes Toyota to higher potential losses incurred at lease termination.S. 10 percent change in frequency of occurrence or expected severity of loss Yen in millions Effect on the allowance for credit losses as of March 31. correspondingly. safety and reliability of vehicles. resale prices of used vehicles and. Toyota utilizes industry published information and its own historical experience to determine estimated residual values for these vehicles. The vehicle return rate represents the number of leased vehicles actually returned at contract maturity as a percentage of the number of lease contracts originally scheduled to be mature in the same period less lease contracts subject to early terminations. projected vehicle return rates and projected loss severity. the collateral value of Toyota’s retail receivables and finance lease receivables could experience further downward pressure. To the extent that sales incentives remain an integral part of sales promotion with the effect of reducing new vehicle prices. is Sensitivity analysis The level of credit losses. Investment in Operating Leases Natures of estimates and assumptions Vehicles on operating leases. assuming all other assumptions are held consistent respectively. The level of credit losses. influenced by two factors: frequency of occurrence and expected severity of loss. This in turn can impact the projection of future used vehicle values. Although management considers the allowance for doubtful accounts and credit losses to be adequate based on information currently available. The overall allowance for credit losses is evaluated at least quarterly. inflation. the estimated fair value and adequacy of collateral. trade and other receivables. which may offset this effect. The following table illustrates the effect of an assumed change in frequency of occurrence or expected severity of loss mainly in the United States. and other pertinent factors. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [24 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations of finance. used vehicle supply. If these factors require a significant increase in Toyota’s allowance for doubtful accounts and credit losses. which could significantly impact Toyota’s results of operations.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 69 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. the size and composition of the portfolios. but are not limited to. Toyota recognizes an allowance for losses on its residual values. including the supply of and demand for used vehicles. This evaluation is inherently judgmental and requires material estimates. the actual or perceived quality. historical loss experience. various other factors impact used vehicle values and the projection of future residual values. Throughout the life of the lease. the fair value of Toyota’s leased vehicles could be subject to downward pressure.

key inputs to the fair value measurement include quotes from counterparties. 2014 March 31. changes in estimates of such cash flows and fair values would affect the evaluations and negatively affect future operating results of the automotive operations. holding all other assumptions constant. Pension Costs and Obligations Natures of estimates and assumptions Pension costs and obligations are dependent on assumptions used in calculating such amounts. therefore. However. However. The following table represents the impact on the residual value losses in Toyota’s financial services operations of the change in vehicle return rate and end-of-term market values as those changes have a significant impact on financial services operations. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [25 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Sensitivity analysis The following table illustrates the effect of an assumed change in the vehicle return rate and endof-term market values mainly in the United States. While management believes that the assumptions used are appropriate. in determining the residual value losses. 2013 March 31.984 ¥(5. Sensitivity analysis The following table illustrates the effects of assumed changes in weighted-average discount rates and the weighted-average expected rate of return on plan assets.217) 6.0% domestically and 5.5% overseas is the result of assumption used for the various pension plans in calculating Toyota’s consolidated pension obligations for fiscal 2013. 2013 and 7.0% overseas and a weighted-average expected rate of return on plan assets of 2. and the contractual terms. including intangible assets.7% domestically and 4. Toyota determines the expected rates of return for pension assets after considering several applicable factors including.396) 2.956 (52.5% decrease 0.396 ¥57. Toyota estimates the fair value of derivative financial instruments using industry-standard valuation models that require observable inputs including interest rates and foreign exchange rates. Toyota determines the discount rates mainly based on the rates of high quality fixed income bonds or fixed income governmental bonds currently available and expected to be available during the period to maturity of the defined benefit pension plans. Actual results that differ from the assumptions are ¥1. 2014 March 31.113 (108.5% increase Expected rate of return on plan assets 0. which Toyota believes are critical estimates in determining pension costs and obligations. 1 percent increase in vehicle return rate 1 percent increase in end-of-term market values Impairment of Long-Lived Assets Toyota periodically reviews the carrying value of its long-lived assets held and used and assets to be disposed of.5% domestically Discount rates 0.5% increase Derivatives and Other Contracts at Fair Value Toyota uses derivatives in the normal course of Yen in millions Domestic Overseas Effect on Effect on pre-tax Effect on Effect on pre-tax obligations for income for obligations for income for the year ended the year ended the year ended the year ended March 31. Toyota’s principal policy for plan asset management.451 ¥117. historical results of the returns on plan assets. mortality rates and other factors.365 ¥(2. assumed risks of asset management.5% decrease 0.267 accumulated and amortized over future periods and. generally affect recognized expense in future periods. when events and circumstances warrant such a review. In determining if a decline in value is other-than-temporary. an impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value.451) 5. Toyota considers the length of time and the extent to which the fair value has been less than the carrying value.417) ¥(4. The two most critical assumptions impacting the calculation of pension costs and obligations are the discount rates and the expected rates of returns on plan assets. and other market data. the use of . benefits earned.S.908) different assumptions may have a material effect on the estimated fair value amounts. 2013 ¥(7. Marketable Securities and Investments in Affiliated Companies Toyota’s accounting policy is to record a write-down of such investments to net realizable value when a decline in fair value below the carrying value is other-than-temporary. If the carrying value of a long-lived asset is considered impaired. which Toyota believes are the critical estimates. Also. These estimates are based upon valuation methodologies deemed appropriate under the circumstances. business to manage its exposure to foreign currency exchange rates and interest rates. differences in actual experience or changes in assumptions may affect Toyota’s pension costs and obligations. These assumptions include discount rates.035 5. Management believes that the estimates of future cash flows and fair values are reasonable. expected rate of return on plan assets. and forecasted market conditions. A weightedaverage discount rate of 2. the composition of plan assets held.598) 4.0% overseas are the results of assumptions used for the various pension plans in calculating Toyota’s consolidated pension costs for fiscal 2013. The accounting for derivatives is complex and continues to evolve. the financial condition and prospects of the company and Toyota’s ability and intent to retain its investment in the company for a period of time sufficient to allow for any anticipated recovery in fair value.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 70 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. assuming all other assumptions are consistent. This review is performed using estimates of future cash flows. In other certain cases when market data is not available. Yen in millions Effect on the residual value losses over the remaining terms of the operating leases on and after April 1. a weighted-average discount rate of 1. interest costs.

1 billion at March 31.g. investing and cash management activities. 2012 and ¥208. such as non-ferrous alloys (e.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 71 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. finance receivables. 2012 and ¥140.4 billion as of March 31.9 billion and ¥99.g. The VAR of the combined foreign exchange position represents a potential loss in pretax earnings that was estimated to be ¥87. However. A description of Toyota’s accounting policies for derivative instruments is included in note 2 to the consolidated financial statements and further disclosure is provided in notes 20 and 26 to the consolidated financial statements. actual loan prepayments may deviate significantly from the assumptions used in the model. Toyota is exposed to foreign currency risk related to future earnings or assets and liabilities that are exposed due to operating cash flows and various financial instruments that are denominated in foreign currencies. There are certain shortcomings inherent to the sensitivity analyses presented. based on the weight of that evidence.2 billion as of March 31. Quantitative and Qualitative Disclosures about Market Risk Toyota is exposed to market risk from changes in foreign currency exchange rates. which recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effects on Toyota’s operating results. Toyota monitors and manages these financial exposures as an integral part of its overall risk management program. foreign currency options. selling and financing in currencies other than the local currencies in which it operates.5 billion as of March 31. Toyota does not use derivative instruments to hedge the price risk associated with the purchase of those commodities and controls its commodity price risk by holding minimum stock levels. respectively. interest rate swaps. they may not react correspondingly to changes in market interest rates. Toyota’s model does not address prepayment risk for automotive related finance receivables. Also. Anticipated transactions denominated in foreign currencies that are covered by Toyota’s derivative hedging are not included in the market risk analysis. 2013. a valuation allowance is needed for deferred tax assets which are not more-likely-than-not to be realized. Toyota’s most significant foreign currency exposures relate to the U. in the event of a change in interest rates. changes are rarely instantaneous. The fair value of available-for-sale equity securities was ¥1. 2013.. 2012 and ¥1. Commodity Price Risk Commodity price risk is the possibility of higher or Interest Rate Risk Toyota is subject to market risk from exposures to changes in interest rates based on its financing. on the realization date and a 10-day holding period. lower costs due to changes in the prices of commodities. 2013. is considered to determine whether. exchange rates. In order to manage the risk arising from changes in foreign currency exchange rates and interest rates. interest rate currency swap agreements and interest rate options.1 billion. platinum and rhodium) and ferrous alloys. Finance receivables are less susceptible to prepayments when interest rates change and. 2012 and 2013. precious metals (e.1 billion as of March 31. Although certain assets and liabilities may have similar maturities or periods to repricing.S. However. dollar and the euro. certain commodity and equity security prices. both positive and negative.S. while interest rates on other types of assets may lag behind changes in market rates. in reality. securities investments. All available evidence. as a result. would be approximately ¥103. The potential decrease in fair value resulting from a hypothetical 100 basis point upward shift Foreign Currency Exchange Rate Risk Toyota has foreign currency exposures related to buying. Unanticipated events or changes could result in re-evaluating the realizability of deferred tax assets. The VAR was estimated by using a Monte Carlo Simulation Method and assumed 95% confidence level fluctuate with changes in market interest rates. Toyota enters into a variety of derivative financial instruments.401.034. interest rates. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations [26 of 26] Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Discussion and Analysis of Financial Condition and Results of Operations Deferred Tax Assets The factors used to assess the likelihood of realization of the deferred tax assets are the future reversal of existing taxable temporary differences. the interest rates on certain types of assets and liabilities may Equity Price Risk Toyota holds investments in various available-forsale equity securities that are subject to price risk. . Based on Toyota’s overall currency exposure (including derivative positions).. marketable securities.1 billion as of March 31. Toyota uses a value-at-risk analysis (“VAR”) to evaluate its exposure to changes in foreign currency in interest rates would be approximately ¥144. Toyota’s portfolio of derivative financial instruments consists of forward foreign currency exchange contracts. Toyota has included these instruments in determining interest rate risk. The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. with a high of ¥129. long-term and shortterm debt and all derivative financial instruments.3 billion as of March 31. which Toyota uses in the production of motor vehicles. Although operating leases are not required to be included. assuming a 10% change in prices. aluminum). palladium. The potential change in the fair value of these investments. the future taxable income and available tax planning strategies that are prudent and feasible. The financial instruments included in the market risk analysis consist of all of Toyota’s cash and cash equivalents.5 billion and a low of ¥78. Toyota enters into various financial instrument transactions to maintain the desired level of exposure to the risk of interest rate fluctuations and to minimize interest expense.1 billion. the risk during fiscal 2013 to pre-tax cash flow from currency movements was on average ¥99. The accounting for deferred tax assets represents Toyota’s current best estimate based on all available evidence.

927 308.849.371 1.238 1.704.512.041 22.034 1.074 Accumulated other comprehensive income (loss) (1.000 shares in 2012 and 2013.662 10.650 Retained earnings 11.689.146 14.040 12.414 4.011 291.741 569.112 1.821 12.660. at cost.809 $377.015 137.180 3.133.650.781.181.715. dollars in millions 2013 2013 ASSETS Current assets Cash and cash equivalents Time deposits Marketable securities Trade accounts and notes receivable.539 18.859 134.851 6. plant and equipment Land Buildings Machinery and equipment Vehicles and equipment on operating leases Construction in progress Total property.281 The accompanying notes are an integral part of these consolidated financial statements.279 9.078 9.243.784.772.797. dollars in millions 2013 2013 Yen in millions U.987 56. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Balance Sheets Toyota Motor Corporation March 31.450.766 20.357 16.572 1.178. net Other receivables Inventories Deferred income taxes Prepaid expenses and other current assets Total current assets Noncurrent finance receivables.235. authorized: 10.222 5.048) 129.874. .739 shares in 2012 and 280.582 2.261 Noncontrolling interests 516.528 2.200 80.649 2.902) 6.568.601 18.833) Treasury stock.462 1.912 9.547 1.475 7.317 4.575.765 (120.786 749.667 23.380 ¥30.277 708.321.971.787) (12. 2012 and 2013 Yen in millions U.918 12.S.824 766.778 721.693 1.381) 6.093 1.261 3.217 Total shareholders’ equity 11.816 7.282 (10.999.378 12.266 941.861 41.053.679.S.824 shares in 2013 (1.042.447.917.890 6.308 32.997.185.000.524 460.622.570 73.100 193.574 ¥ 4. net Investments and other assets Marketable securities and other securities investments Affiliated companies Employees receivables Other Total investments and other assets Property.491.492 shares in 2012 and 2013 397.363 571 6. no par value.065 2.851.178 4.020 8.223.903.117.301 1. plant and equipment. plant and equipment.303.114.912.148.968 5.050 551.243 7.663 $ 18.138) 12.281 Shareholders’ equity Toyota Motor Corporation shareholders’ equity Common stock.297 106.613.920 (3. issued: 3.276 104.004 million in 2012 and ¥15.856 ¥35.422 55.283 53.964 54.385.620 2.611 3.239 ¥35.483.094.778 984.736 3.337.194 103. less allowance for doubtful accounts of ¥13.070 ¥ 1.965 397.351 7.189 5.166 6.372.897 408.445.537 156.650.934 5.482 28.050 Additional paid-in capital 550.294 Long-term liabilities Long-term debt Accrued pension and severance costs Deferred income taxes Other long-term liabilities Total long-term liabilities 6.000.206 (356.399 2.755 22.718.242.687 516.965 1.918) 72.103.520 $ 43.483.827 4.620 (11.943.700 1.716.941 78.176.659 5.828.113.830 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Short-term borrowings Current portion of long-term debt Accounts payable Other payables Accrued expenses Income taxes payable Other current liabilities Total current liabilities 2012 ¥ 3.402 908. 281.920.802. at cost Less—Accumulated depreciation Total property.604 146.660 432.875 million ($169 million) in 2013 Finance receivables.398 527.583 629.913 7.602.478 Commitments and contingencies Total liabilities and shareholders’ equity ¥30.089.680) Total Toyota Motor Corporation shareholders’ equity 10.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 72 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [1 of 6] Financial Section Investor Information Selected Financial Summary (U.328 11.643 135.034 13.302 3.523 133.883 143.317 13.059 84.123) (1.S.550.847 $377.135.428 2.270 1.038.135 15.066.035 624. net Total assets 2012 ¥ 1.187.282 718.353 275.

173.688 15.16 50.026 355. 2012 and 2013 Yen in millions 2011 2012 2013 U.290 312.083.967) 5.253 95.016 465.00 ¥ ¥ ¥ 90.96 .17 130.743.319) ¥ 962. general and administrative Total costs and expenses Operating income Other income (expense) Interest and dividend income Interest expense Foreign exchange gain.925 5.S.246 432.551 1.888 $222.802) 77.21 90.373 12.918 592. ¥ ¥ ¥ 130.703 22.482 (121.583.320.S.290) $ 10.049 (244) 59 16 880 14.150.272 197.519 1.761 1.S.462 18.865 (22.985.230 U.105 (36.00 $ $ $ 3.064.302 (84.20 50.485 (57.23 0.916 1.150 1.168 18.743) 283.993.873 262.559 Yen 98.569 630.042 22. dollars Net income attributable to Toyota Motor Corporation per share — Basic — Diluted Cash dividends per share The accompanying notes are an integral part of these consolidated financial statements.309 20.511.304 1.520 (1.771 (29.914.426 2.627 ¥20.183 ¥ 99.525.228 234. 2011.601 191.737 18. net Other income (loss). net Total other income (expense) Income before income taxes and equity in earnings of affiliated companies Provision for income taxes Equity in earnings of affiliated companies Net income Less: Net income attributable to noncontrolling interests Net income attributable to Toyota Motor Corporation ¥17.302) ¥ 408.010.163 1.403.653 15.686 231.82 303.795.543 1.922) 37.00 ¥ ¥ ¥ 303.866 2.673 (22.071.556 14.011 563.23 3.783 629.318) 14.461 11.839.045 90.78 90.504 82.646 1.820.701 368.409 468.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 73 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [2 of 6] Financial Section Investor Information Selected Financial Summary (U.102.500 6.192 18.821 215.305 19.279 ¥17.353 220.083 18. dollars in millions 2013 Net revenues Sales of products Financing operations Total net revenues Costs and expenses Cost of products sold Cost of financing operations Selling.649 551. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Statements of Income Toyota Motor Corporation For the years ended March 31.910.228.520 1.

873 $11. ¥465. net of tax Foreign currency translation adjustments Unrealized gains (losses) on securities.209 14.407) ¥110.S.934.292) 131.711 850.694 (85.744) ¥255.045 20.482 461.978 .794 (65. dollars in millions 2013 Net income Other comprehensive income (loss). 2011.485 (299.520 4.608) 341.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 74 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [3 of 6] Financial Section Investor Information Selected Financial Summary (U.784.979 156 9.754 374. net of reclassification adjustments Pension liability adjustments Total other comprehensive income (loss) Comprehensive income Less: Comprehensive income attributable to noncontrolling interests Comprehensive income attributable to Toyota Motor Corporation The accompanying notes are an integral part of these consolidated financial statements. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Statements of Comprehensive Income Toyota Motor Corporation For the years ended March 31.565 (1.950 ¥1.302 (93.587) $18.454 (315.083.110) (26.578) (27.297 ¥368.156 (149.781) 149.283) ¥1.704 (39. 2012 and 2013 Yen in millions 2011 2012 2013 U.S.910 3.657) 11.674 1.

135.542 ¥(1.478 5.024 (2.217 4.835.578) (27.483 283.208) (156.824) 283.119 465.559 (87.602 ¥ (846.785 (141.744 (37. 2011 Equity transaction with noncontrolling interests and other Issuance during the year Comprehensive income Net income Other comprehensive income (loss) Foreign currency translation adjustments Unrealized gains (losses) on securities. net of reclassification adjustments Pension liability adjustments Total comprehensive income Dividends paid to Toyota Motor Corporation shareholders Dividends paid to noncontrolling interests Purchase and reissuance of common stock Balances at March 31.754 374.209 14.120) (27.356) (20) ¥11.638 368.702 (4.040 (23) ¥12.123) ¥624.098 85.720 5.371 117.083.772.262 1.640) 1.507 19.743 (5.785 110.485 (299.066.310 2.950 (156.550.292) 131.466 4.565 1.332.854) 149.050 ¥505.234 ¥12.058) 15.680) 84.689.183 ¥570.599) (4.183 ¥10.934.729) 129.930.920.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 75 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [4 of 6] Financial Section Investor Information Selected Financial Summary (U.483 ¥11.008) 2.144.261 675 ¥397.178.297 (141.794 (65.657) 11.653 (119.319 27.821 .636 408.711 1.704 (141.148.116 5.234 ¥12. 2013 The accompanying notes are an integral part of these consolidated financial statements.961 962.784.425) ¥10.454 149.640) 2.356) (87.723 2.283 (45.008) (285) ¥551.008) (45.563) 2. 2011.365) ¥(1.785) (37.443 7.074 ¥(1.856 ¥397.729) 129.156 (190.050 ¥501.163 434.328 (69.058) 15.050 ¥ (356.050 ¥11.785) 96 ¥550.835) ¥(1.S.261.665 (45.721) (6.383) 125.163 434.310 2.694 (156.833) ¥516.331) 39.120) (958) ¥(1.260.110) 341.206 2.328 (69.208) 255.483 368.120) (958) ¥10.138) 962.311 1.302 (11.119 ¥11.359.035 121.562) 1. ¥397. 2012 Equity transaction with noncontrolling interests and other Issuance during the year Comprehensive income Net income Other comprehensive income (loss) Foreign currency translation adjustments Unrealized gains (losses) on securities.493 2.331 2.565 (190. 2012 and 2013 Common stock Additional paid-in capital Retained earnings Yen in millions Accumulated other comprehensive Treasury stock.657) (958) ¥10.760 43.917.638 368.657) (287.482 461.507 19.819 57.559 ¥397. net of reclassification adjustments Pension liability adjustments Total comprehensive income Dividends paid to Toyota Motor Corporation shareholders Dividends paid to noncontrolling interests Purchase and reissuance of common stock Balances at March 31.568.407 (27.873 (190. income (loss) at cost Total Toyota Motor Corporation shareholders’ equity Noncontrolling interests Total shareholders’ equity Balances at March 31.133.119 408. 2010 Equity transaction with noncontrolling interests and other Issuance during the year Comprehensive income Net income Other comprehensive income (loss) Foreign currency translation adjustments Unrealized gains (losses) on securities.183 (287.503) ¥587.302 (93. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Statements of Shareholders’ Equity Toyota Motor Corporation For the years ended March 31.650 675 (116) ¥(1.965) (1.613) (26.785) (20) ¥10.613) (26. net of reclassification adjustments Pension liability adjustments Total comprehensive income Dividends paid to Toyota Motor Corporation shareholders Dividends paid to noncontrolling interests Purchase and reissuance of common stock Balances at March 31.

565 (2.489 53 $117. income (loss) at cost Total Toyota Motor Corporation shareholders’ equity Noncontrolling interests Total shareholders’ equity Balances at March 31.535) $(12.643 .809 $4. net of reclassification adjustments Pension liability adjustments Total comprehensive income Dividends paid to Toyota Motor Corporation shareholders Dividends paid to noncontrolling interests Purchase and reissuance of common stock Balances at March 31.222 $ (3.710 $(12. $4.910 3.020) 24 $129.920 27 $(12. 2012 and 2013 Common stock Additional paid-in capital Retained earnings U.622 3.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 76 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [5 of 6] Financial Section Investor Information Selected Financial Summary (U. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Statements of Shareholders’ Equity (Continued) Toyota Motor Corporation For the years ended March 31.859 (0) $134. dollars in millions Accumulated other comprehensive Treasury stock.787) $6.855 7 $126.020) (486) 24 $135.622 3. 2013 The accompanying notes are an integral part of these consolidated financial statements.290 288 61 (52) 1.177 7 $5.666 60 10.048) 10.075) $112.S.020) (3) $5.979 156 20. 2011.230 4.S. 2012 Equity transaction with noncontrolling interests and other Issuance during the year Comprehensive income Net income Other comprehensive income (loss) Foreign currency translation adjustments Unrealized gains (losses) on securities.230 4.222 $5.978 (2.166 1.918 208 (2.918 208 18.587 (486) 11.520 4.

879 $ 26.561) (1.008) (43.867.313 (3.067.617) 434.851 39.682.634) 162.931.435 ¥ 2.312) 3.633.005 172 36 (32. and other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year ¥(8.865. 2012 and 2013 2011 Yen in millions 2012 2013 U.679.037 3.943 22.482 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 1.718.297 The accompanying notes are an integral part of these consolidated financial statements.629) 20.537) (808.509) (854.527.364 424 (9.710 6.367 credit losses Pension and severance costs.396 (3.789) 537 (500) (2.572) 311.366 280.658) 2. $ 11.807) 189.160 364.750 291 (217) 343 22 1.785) (37.865) 51. dollars in millions 2013 Cash flows from operating activities Net income ¥ 465.127 Increase in other current liabilities 239.573 1.119.029) 214. net of cash acquired Changes in investments and other assets.333.216 3.139 (2.364 8.466 416 17.831 2.098) 477.423 (585.191.746 ¥ 2.651 (156.421.261 (190.175.528 32.302 ¥ 1.136) 201.080.083 Other 183.033) Increase (decrease) in accounts payable (406.934.665 (147) 209.S.063.173.672 (36.027.701) (231.854 $ 18.709 1.999 39.119 (299) 177.109 Provision for doubtful accounts and 4.327 (127. net Deferred income taxes 85.379) 96.709 (723.448) (355.200 ¥ 1.414) 16.830 1.080.105.214 33.412.632) 162.785) ¥(8. and other (Increase) decrease in accounts and 421. and other Net cash used in investing activities Cash flows from financing activities Proceeds from issuance of long-term debt Payments of long-term debt Increase in short-term borrowings Dividends paid Purchase of common stock.160 2.225) 235 2.326) (1. less payments (23.633 431.342 486.074 1.442.140 9.283) 374 28.009 ¥ 1.020) (458) 5.904) 417 5.845 (629.394.429) Losses on disposal of fixed assets 36.623 27.007.464) (168.242 137.016) (197.344) 2.939) (401.024. dollars in millions 2013 2011 Yen in millions 2012 2013 U.963 1.857 Net cash provided by operating activities ¥ 2.701 (2.008 Equity in earnings of affiliated companies (215.083.004.807 (2.529) (47.120) (28. 2011.307 (180.319 316.591) 39.451.605 (2.223 (2.178 2.284) Increase (decrease) in accrued income taxes (40.011 69.711 9.452.711 (20.200 ¥ 1.441 (3.972 (1.086) (11.931 (28.978 3.363 (209.928) 7.423) 35.064 Cash flows from investing activities Additions to finance receivables Collection of finance receivables Proceeds from sales of finance receivables Additions to fixed assets excluding equipment leased to others Additions to equipment leased to others Proceeds from sales of fixed assets excluding equipment leased to others Proceeds from sales of equipment leased to others Purchases of marketable securities and security investments Proceeds from sales of marketable securities and security investments Proceeds upon maturity of marketable securities and security investments Payment for additional investments in affiliated companies.545) 36. .260 (141.518) 2.248) ¥(10.347) (55.913 16.519) Changes in operating assets and liabilities. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Consolidated Statements of Cash Flows Toyota Motor Corporation For the years ended March 31.221 Unrealized losses on available-for-sale 7.104 securities.808 (344.485 ¥ 368.461) (1.316 The accompanying notes are an integral part of these consolidated financial statements.695 (4.489.260) notes receivable (Increase) decrease in inventories 51.191 533.483 (Increase) decrease in other current assets 38.061.116.576 53.679.S.097 $(106.384 111.694.520 11.436 (2.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 77 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements [6 of 6] Financial Section Investor Information Selected Financial Summary (U.915 53.395 160.923) 50.S.188) 33.438.270 2.210) 756.

residual values for leased assets. Revenues from operating leases are recognized on a straight-line basis over the lease term. the geographic location of the sale and other factors. The more significant estimates include: product warranties. after elimination of unrealized intercompany profits. All significant intercompany transactions and accounts have been eliminated. and sale of sedans.S. respectively. The sale of certain vehicles includes a determinable amount for the contract. but which it does not control. Toyota generally warrants its products against certain manufacturing and other defects. GAAP are included in the consolidated financial statements. pension costs and obligations. if applicable. Revenue recognition Revenues from sales of vehicles and parts are generally recognized upon delivery which is considered to have occurred when the dealer has taken title to the product and the risk and reward of ownership have been substantively transferred. which entitles customers to free vehicle maintenance. Toyota provides financing.S. compact cars.S. except as described below.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 78 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Consolidated net income includes Toyota’s equity in current earnings of such companies. are stated at cost plus equity in undistributed earnings. Advertising costs were ¥308. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Toyota accrues these incentives as revenue reductions upon the sale of a vehicle corresponding to the program by the amount determined in the related incentive program. 2. impairment of long-lived assets. Such revenues from free maintenance contracts are deferred and recognized as revenue over the period of the contract.S. The amount of accrued estimated warranty costs is primarily based on historical experience as to product failures as well as current information on repair costs. other-than-temporary losses on marketable securities. recorded as assets and are depreciated in accordance with Toyota’s depreciation policy. Revenues from the sales of vehicles under which Toyota conditionally guarantees the minimum resale value are recognized on a pro rata basis from the date of sale to the first exercise date of the guarantee in a manner similar to operating lease accounting. which approximates the pattern of the related costs. fair value of derivative financial instruments. The foreign currency translation adjustments are included as a component of accumulated other comprehensive income.518 million) for the years ended March 31. The accounts of variable interest entities as defined by U. Summary of significant accounting policies . 2011. Investments in non-public companies in which Toyota does not exercise significant influence (generally less than a 20% ownership interest) are stated at cost.903 million. Toyota’s sales incentive programs principally consist of cash payments to dealers calculated based on vehicle volume or a model sold by a dealer during a certain period of time. Investments in such Estimates The preparation of Toyota’s consolidated financial statements in conformity with U. Investments in affiliated companies in which Toyota exercises significant influence. Actual results could differ from those estimates. Foreign currency receivables and payables are The parent company and its subsidiaries in Japan and its foreign subsidiaries maintain their records and prepare their financial statements in accordance with accounting principles generally accepted in Japan and those of their countries of domicile. Nature of operations Toyota is primarily engaged in the design.713 million and ¥330. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [1 of 44] Notes to Consolidated Financial Statements 1. 2012 and 2013. minivans. companies are reduced to net realizable value if a decline in market value is determined other-thantemporary. Provisions for product warranties are provided for specific periods of time and/or usage of the product and vary depending upon the nature of the product. Revenues from retail financing contracts and finance leases are recognized using the effective yield method. trucks and related parts and accessories throughout the world. vehicle and equipment leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota. The underlying vehicles of these transactions are Other costs Advertising and sales promotion costs are expensed as incurred. litigation liabilities and valuation allowance for deferred tax assets. manufacture. Translation of foreign currencies All asset and liability accounts of foreign subsidiaries and affiliated companies are translated into Japanese yen at appropriate year-end current exchange rates and all income and expense accounts of those subsidiaries are translated at the average exchange rates for each period. sport-utility vehicles. Toyota records a provision for estimated product warranty costs at the time the related sale is recognized based on estimates that Toyota will incur to repair or replace product parts that fail while under warranty. The amount of warranty costs translated at appropriate year-end current exchange rates and the resulting transaction gains or losses are recorded in operations currently.870 million ($3. liabilities accrued for recalls and other safety measures. allowance for doubtful accounts and credit losses. Significant accounting policies after reflecting adjustments for the above are as follows: Basis of consolidation and accounting for investments in affiliated companies The consolidated financial statements include the accounts of the parent company and those of its majority-owned subsidiary companies. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform to U. GAAP. ¥304. In addition.

net of applicable taxes. In cases where additional security interests would be required. Toyota retains responsibility for contract collection and administration. as additional security.585 million) for the years ended March 31. Deferred origination costs are amortized so as to approximate a level rate of return over the term of the related contracts. Vehicles returned to Toyota at the end of their leases are sold by auction. or both. net of any unearned income and deferred origination costs and the allowance for credit losses. Toyota also makes term loans to dealers for business acquisitions.454 million ($8. If the value of a non-public security investment is estimated to have declined and such decline is judged to be other-than-temporary. that are readily convertible to known amounts of cash and are so near maturity that they present insignificant risk of changes in value because of changes in interest rates. Research and development costs were ¥730.S. These contracts acquired must first meet specified credit standards. Debt and equity securities designated as available-for-sale are carried at fair value with unrealized gains or losses included as a component of accumulated other comprehensive income in shareholders’ equity. business plans and estimated future cash flows. are reflected in the consolidated statements of income when realized. Marketable securities Marketable securities consist of debt and equity securities. an amount that represents management’s best estimate of expenses related to future recalls and other safety measures. Security investments in non-public companies Security investments in non-public companies are carried at cost as fair value is not readily determinable. Toyota recognizes the impairment of the investment and the carrying value is reduced to its fair value. Toyota has the right to liquidate any assets acquired and seek legal remedies. facilities refurbishment. Individual securities classified as available-for-sale are reduced to net realizable value for other-than-temporary declines in market value. Toyota considers the length of time and the extent to which the fair value has been less than the carrying value. The determination of portfolio segments is based primarily on the qualitative consideration of the nature of Toyota’s business operations and finance receivables. 2011. Wholesale and other dealer loan receivables portfolio segment Toyota provides wholesale financing to qualified dealers to finance inventories. real estate purchases and working capital requirements. Thereafter. Research and development costs are expensed as incurred. Retail receivables portfolio segment The retail receivables portfolio segment consists of retail installment sales contracts acquired mainly from dealers (“auto loans”) including credit card loans. Toyota acquires security interests in the vehicles financed and has the right to repossess vehicles if customers fail to meet their contractual obligations. the similarity of the credit risks. Finance receivables Finance receivables recorded on Toyota’s consolidated balance sheets are comprised of the unpaid principal balance. the financial condition and prospects of the company and Toyota’s ability and intent to retain its investment in the company for a period of time sufficient to allow for any anticipated recovery in market value. ¥779. Toyota is responsible for contract collection and administration during the lease period. In addition to product warranties above. Toyota employs an estimation model. If a dealer defaults.806 million and ¥807. which relieves the dealers from financial responsibility in the event of repossession. . These loans are typically secured with liens on real estate. Toyota is generally permitted to take possession of the vehicle upon a default by the lessee. The residual value is estimated at the time the vehicle is first leased. Almost all auto loans are non-recourse. Realized gains and losses. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [2 of 44] Notes to Consolidated Financial Statements accrued also contains an estimate of warranty claim recoveries to be received from suppliers. Cash and cash equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or less. The three portfolio segments within finance receivables are as follows: Finance lease receivables portfolio segment Toyota acquires new vehicle lease contracts originated primarily through dealers. Litigation liabilities are established to cover probable losses on various lawsuits based on the information currently available. plus accrued interest. Toyota takes dealership assets or personal assets. Lease contracts acquired must first meet specified credit standards after which Toyota assumes ownership of the leased vehicle. Toyota classifies retail receivables portfolio segment into one class based on common risk characteristics associated with the underlying finance receivables. respectively. Toyota classifies finance lease receivables portfolio segment into one class based on common risk characteristics associated with the underlying finance receivables and the similarity of the credit risks.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 79 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Determination of impairment is based on the consideration of such factors as operating results. In determining if a decline in value is other-than-temporary. Toyota accrues for costs of recalls and other safety measures based on management’s estimates when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. less charge-offs. other dealership assets and/or personal assets of the dealers. and the quantitative materiality. 2012 and 2013. Attorneys’ fees are expensed as incurred. The contract periods of auto loans primarily range from 2 to 7 years. which are determined on the average-cost method.340 million. to accrue at the time of vehicle sale. Fair value is determined principally through the use of the latest financial information. The estimation model for recalls and other safety measures takes into account Toyota’s historical experience of recalls and other safety measures. The contract periods of these primarily range from 2 to 5 years. Toyota acquires security interests in vehicles financed at wholesale.

906 $196 37 $233 . Vehicles and equipment on operating leases are not within the scope of Finance lease receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on finance lease receivables by applying reserve rates to such receivables. Impaired finance receivables include certain nonaccrual receivables for which a specific reserve has been assessed. In addition. The allowance for credit losses is based on a systematic. dollars in millions March 31. the estimated fair value and adequacy of collateral and other pertinent factors.S. current economic events and conditions and other pertinent factors.038 ¥ 4.485 11. finance receivables on nonaccrual status were as follows: Yen in millions March 31.464 ¥21. ongoing review and evaluation performed as part of the credit-risk evaluation process. 2013 U. or when principal or interest is 90 days or more contractually past due. 2013 U. An account modified as a troubled debt restructuring is considered to be impaired.985 4. resulting from the inability of customers to make required payments. general and administrative expenses.S. real estate and working capital. compliance with terms and conditions of the underlying loan agreement and other subjective factors related to the financial stability of the borrower are considered when determining whether a loan is impaired. accounting guidance governing the disclosure of portfolio segments. Retail receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on retail receivables by applying reserve rates to such receivables. Allowance for credit losses Allowance for credit losses is established to cover probable losses on finance receivables and vehicles and equipment on operating leases.443 1. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [3 of 44] Notes to Consolidated Financial Statements Toyota classifies wholesale and other dealer loan receivables portfolio segment into three classes of wholesale. Accounts are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured. based on current information and events. it is probable that Toyota will be unable to collect all amounts due according to the terms of the contract. finance receivables past due over 90 days and still accruing were as follows: Yen in millions March 31.263 7. these receivables are generally written-off against the allowance for credit losses when payments due are no longer expected to be received or the account is 120 days contractually past due. historical loss experience.S. Retail Finance leases 2012 2012 As of March 31. A troubled debt restructuring occurs when an account is modified through a concession to a borrower experiencing financial difficulty. Retail receivables class and finance lease receivables class are not placed generally on nonaccrual status when principal or interest is 90 days or more past due.987 $ 47 12 21 46 1 $127 As of March 31. dollars in millions March 31. However. A receivable account balance is considered impaired when. Provision for credit losses is included in selling. Factors such as payment history.674 ¥31. Receivable balances are written-off against the allowance for credit losses when it is probable that a loss has been realized. All classes of wholesale and other dealer loan receivables portfolio segment are placed on nonaccrual status when full payment of principal or interest is in doubt. based on the risk characteristics associated with the underlying finance receivables.736 37 ¥21. the size and composition of the portfolios.822 958 5. whichever occurs first. whichever occurs first.135 1. Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. 2012 and 2013. 2013 Retail Finance leases Wholesale Real estate Working capital ¥ 2. the amortization of net deferred fees is suspended.354 70 ¥11. Collateral dependent loans are placed on nonaccrual status if collateral is insufficient to cover principal and interest.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 80 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. 2012 and 2013. 2013 ¥24. current economic events and conditions.442 3. Reserve rates are calculated mainly by historical loss experience.937 ¥18. Interest accrued but not collected at the date a receivable is placed on nonaccrual status is reversed against interest income.

respectively. plant and equipment Property. respectively. except for the cost of finished products carried by certain subsidiary companies which is determined on the “specific identification” basis or “last-in. Wholesale and other dealer loan receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on wholesale and other dealer loan receivables by applying reserve rates to such receivables. current economic events and conditions and other pertinent factors. Factors considered in the determination of projected return rates and loss severity include historical and market information on used vehicle sales. plant and equipment are stated at cost. and general economic conditions. Inventories Inventories are valued at cost. minor replacements. if recoverable. Toyota maintains an allowance to cover probable estimated losses related to unguaranteed residual values on its owned portfolio. Related collateral. current economic events and conditions and other pertinent factors such as used car markets. Vehicles and equipment on operating leases to third parties are originated by dealers and acquired by certain consolidated subsidiaries. cost being determined on the “average-cost” basis. first-out” basis been used for those companies using the LIFO basis. Specific reserves on impaired receivables within the wholesale and other dealer loan receivables portfolio segment are recorded by an increase to the allowance for credit losses based on the related measurement of impairment. the allowance for residual losses is adjusted for the difference between the net book value and the proceeds from sale.082 million ($2. Fair value is determined mainly using a discounted cash flow valuation method. levels to determine whether reserves are considered adequate to cover the probable range of losses. Major renewals and improvements are capitalized. Depreciation of property. 2012 and 2013. Inventories valued on the LIFO basis totaled ¥220. at rates based on estimated useful lives of the respective assets according to general class. and reviews allowance Property.340 million) at March 31. Had the “first-in. is repossessed and sold and the account balance is written-off. Reserve rates are calculated mainly by financial conditions of the dealers. The receivable is determined collateral-dependent if the repayment of the loan is expected to be provided by the underlying collateral. For the receivables in which the fair value of the underlying collateral was in excess of the outstanding balance. Troubled debt restructurings in the retail receivables and finance lease receivables portfolio segments are specifically identified as impaired and aggregated with their respective portfolio segments when determining the allowance for credit losses. The estimated useful lives range from 2 to 65 years for buildings and from 2 to 20 years for machinery and equipment. maintenance and repairs are charged to current operations. generally from 2 to 5 years. Incremental direct costs incurred in connection with the acquisition of operating lease contracts are capitalized and amortized on a straight-line method over the lease term. Impaired loans in the retail receivables and finance Allowance for residual value losses Toyota is exposed to risk of loss on the disposition of off-lease vehicles to the extent that sales proceeds are not sufficient to cover the carrying value of the leased asset at lease termination. no allowance was provided. inventories would have been ¥56. Recoveries are reversed from the allowance for credit losses. 2012 and 2013. trends in lease returns and new car markets. Toyota establishes specific reserves to cover the estimated losses on individually impaired receivables within the wholesale and other dealer loan receivables portfolio segment. develops several potential loss scenarios. Upon disposal of the assets. The fair value of the underlying collateral is used if the receivable is collateral-dependent. The allowance is evaluated considering projected vehicle return rates and projected loss severity. terms of collateral setting. . Any shortfall between proceeds received and the carrying cost of repossessed collateral is charged to the allowance.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 81 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.S. type of construction and use. Vehicles and equipment on operating leases are depreciated primarily on a straight-line method over the lease term. Management evaluates the foregoing factors. not in excess of market. Long-lived assets Toyota reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable.582 million and ¥220. The amount of the impairment loss to be recorded is calculated by the excess of the carrying value of the asset group over its fair value. Specific reserves on impaired receivables are determined by the present value of expected future cash flows or the fair value of collateral when it is probable that such receivables will be unable to be fully collected.979 million ($712 million) higher than reported at March 31. first-out” (“LIFO”) basis. Such subsidiaries are also the lessors of certain property that they acquire directly.799 million and ¥66. plant and equipment is mainly computed on the declining-balance method for the parent company and Japanese subsidiaries and on the straight-line method for foreign subsidiary companies lease receivables portfolio segments are insignificant for individual evaluation and Toyota has determined that allowance for credit losses for each of the retail receivables and finance lease receivables portfolio segments would not be materially different if they had been individually evaluated for impairment. to the estimated residual value. An impairment loss would be recognized when the carrying amount of an asset group exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The allowance for residual value losses is maintained in amounts considered by Toyota to be appropriate in relation to the estimated losses on its owned portfolio. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [4 of 44] Notes to Consolidated Financial Statements Reserve rates are calculated mainly by historical loss experience.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

82
Ne x t

Toyota Global Vision
Prev

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information
Consolidated Financial Statements

Financial Section

Investor Information

Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm

Notes to Consolidated Financial Statements [5 of 44]

Notes to Consolidated Financial Statements
Goodwill and intangible assets Goodwill is not material to Toyota’s consolidated balance sheets. Intangible assets consist mainly of software. Intangible assets with a definite life are amortized on a straight-line basis with estimated useful lives mainly of 5 years. Intangible assets with an indefinite life are tested for impairment whenever events or circumstances indicate that a carrying amount of an asset (asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss to be recorded is generally determined by the difference between the fair value of the asset using a discounted cash flow valuation method and the current book value. Employee benefit obligations Toyota has both defined benefit and defined contribution plans for employees’ retirement benefits. Retirement benefit obligations are measured by actuarial calculations in accordance with U.S. GAAP. The funded status of the defined benefit postretirement plans is recognized on the consolidated balance sheets as prepaid pension and severance costs or accrued pension and severance costs, and the funded status change is recognized in the year in which it occurs through other comprehensive income. Environmental matters Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Derivative financial instruments Toyota employs derivative financial instruments, including forward foreign currency exchange contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements and interest rate options to manage its exposure to fluctuations in interest rates and foreign currency exchange Stock-based compensation Toyota measures compensation expense for its stockbased compensation plan based on the grant-date fair value of the award, and accounts for the award. Income taxes The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Net income attributable to Toyota Motor Corporation per share Basic net income attributable to Toyota Motor Corporation per common share is calculated by dividing net income attributable to Toyota Motor Corporation by the weighted-average number of shares outstanding during the reported period. The calculation of diluted net income attributable to Toyota Motor Corporation per common share is similar to the calculation of basic net income attributable to Toyota Motor Corporation per share, except that the weighted-average number of shares outstanding includes the additional dilution from the assumed exercise of dilutive stock options. Recent pronouncements to be adopted in future periods In December 2011, FASB issued updated guidance of disclosures about offsetting assets and liabilities. This guidance requires additional disclosures about gross and net information for assets and liabilities including financial instruments eligible for offset in Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and reasonably estimable, generally no later than the completion of feasibility studies or Toyota’s commitment to a plan of action. The cost of each environmental liability is estimated by using current technology available and various engineering, financial and legal specialists within Toyota based on current law. Such liabilities do not reflect any offset for possible recoveries from insurance companies and are not discounted. There were no material changes in these liabilities for all periods presented. rates. All derivative financial instruments are recorded on the consolidated balance sheets at fair value, taking into consideration the effects of legally enforceable master netting agreements that allow us to net settle positive and negative positions and offset cash collateral held with the same counterparty on a net basis. Toyota does not use derivatives for speculation or trading purposes. Changes in the fair value of derivatives are recorded each period in current earnings or through other comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and the type of hedge transaction. The ineffective portion of all hedges is recognized currently in operations. Accounting changes In June 2011, FASB issued updated guidance on the presentation of comprehensive income. This guidance requires to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statements of comprehensive income or in two separate but consecutive statements. Toyota adopted this guidance from the interim period within the fiscal year, begun after December 15, 2011. The adoption of this guidance did not have a material impact on Toyota’s consolidated financial statements. Other comprehensive income Other comprehensive income refers to revenues, expenses, gains and losses that, under U.S. GAAP are included in comprehensive income, but are excluded from net income as these amounts are recorded directly as an adjustment to shareholders’ equity. Toyota’s other comprehensive income is primarily comprised of unrealized gains/losses on marketable securities designated as available-for-sale, foreign currency translation adjustments and adjustments attributed to pension liabilities associated with Toyota’s defined benefit pension plans.

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

83
Ne x t

Toyota Global Vision
Prev

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information
Consolidated Financial Statements

Financial Section

Investor Information

Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm

Notes to Consolidated Financial Statements [6 of 44]

Notes to Consolidated Financial Statements
the balance sheets. This guidance is effective for fiscal year beginning on or after January 1, 2013, and for interim period within the fiscal year. Management does not expect this guidance to have a material impact on Toyota’s consolidated financial statements. In February 2013, FASB issued updated guidance on the presentation of items reclassified out of accumulated other comprehensive income. This guidance requires to present, either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified out of each component of accumulated other
Cost

comprehensive income based on its source. This guidance is effective for fiscal year beginning on or after December 15, 2012, and for interim period within the fiscal year. Management does not expect this guidance to have a material impact on Toyota’s consolidated financial statements.

5. Acquisitions and dispositions
During the years ended March 31, 2011, 2012 and 2013, Toyota made several acquisitions and dispositions, however the assets and liabilities acquired or transferred were not material.

6. Marketable securities and other securities investments
Reclassifications Certain prior year amounts have been reclassified to conform to the presentations as of and for the year ended March 31, 2013. Marketable securities and other securities investments include public and corporate bonds and common stocks for which the aggregate cost, gross unrealized gains and losses and fair value are as follows:
Yen in millions March 31, 2012 Gross Gross unrealized unrealized gains losses

Fair value

3. U.S. dollar amounts
U.S. dollar amounts presented in the consolidated financial statements and related notes are included solely for the convenience of the reader and are unaudited. These translations should not be construed as representations that the yen amounts actually represent, or have been or could be converted into, U.S. dollars. For this purpose, the rate of ¥94.05 = U.S. $1, the approximate current exchange rate at March 31, 2013, was used for the translation of the accompanying consolidated financial amounts of Toyota as of and for the year ended March 31, 2013.

Available-for-sale: Public and corporate bonds Common stocks Other Total Securities not practicable to determine fair value: Public and corporate bonds Common stocks Total

¥3,606,290 605,889 449,393 ¥4,661,572 22,047 79,420 ¥ 101,467 ¥

¥ 74,357 444,073 19,974 ¥538,404

¥51,147 15,643 11 ¥66,801

¥3,629,500 1,034,319 469,356 ¥5,133,175

4. Supplemental cash flow information
Cash payments for income taxes were ¥211,487 million, ¥282,440 million and ¥331,007 million ($3,519 million) for the years ended March 31, 2011, 2012 and 2013, respectively. Interest payments during the years ended March 31, 2011, 2012 and 2013 were ¥382,903 million, ¥365,109 million and ¥325,575 million ($3,462 million), respectively. Capital lease obligations of ¥10,478 million, ¥5,847 million and ¥3,749 million ($40 million) were incurred for the years ended March 31, 2011, 2012 and 2013, respectively. Available-for-sale: Public and corporate bonds Common stocks Other Total Securities not practicable to determine fair value: Public and corporate bonds Common stocks Total

Cost

Yen in millions March 31, 2013 Gross Gross unrealized unrealized gains losses

Fair value

¥4,350,942 599,371 537,272 ¥5,487,585 ¥ ¥ 20,148 79,082 99,230

¥ 211,070 804,405 31,416 ¥1,046,891

¥ 8,866 2,593 2 ¥11,461

¥4,553,146 1,401,183 568,686 ¥6,523,015

ANNUAL REPORT 2013 P ri nt S earch C ont ent s

Page

84
Ne x t

Toyota Global Vision
Prev

President’s Message

Launching a New Structure

Special Feature

Consolidated Performance Highlights

Review of Operations

Management and Corporate Information
Consolidated Financial Statements

Financial Section

Investor Information

Selected Financial Summary (U.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm

Notes to Consolidated Financial Statements [7 of 44]

Notes to Consolidated Financial Statements
U.S. dollars in millions March 31, 2013 Gross Gross unrealized unrealized gains losses

companies operate to determine if Toyota’s investment in each individual company is impaired and whether the impairment is other-than-temporary.
Fair value

the impairment is determined to be other-thantemporary, the carrying value of the investment is written-down by the impaired amount and the losses are recognized currently in operations.

Cost

Toyota periodically performs this impairment test for significant investments recorded at cost. If

Available-for-sale: Public and corporate bonds Common stocks Other Total Securities not practicable to determine fair value: Public and corporate bonds Common stocks Total Public and corporate bonds included in availablefor-sale represent 60% of Japanese bonds, and 40% of U.S., European and other bonds as of March 31, 2012, and 49% of Japanese bonds, and 51% of U.S., European and other bonds as of March 31, 2013. Listed stocks on the Japanese stock markets represent 83% and 85% of common stocks which are included in available-for-sale as of March 31, 2012 and 2013, respectively. Public and corporate bonds include primarily government bonds, and “Other” includes primarily investment trusts. Unrealized losses continuing over a 12 month period or more in the aggregate were not material at March 31, 2012 and 2013. As of March 31, 2012 and 2013, maturities of public and corporate bonds and other included in available-for-sale are mainly from 1 to 10 years. Proceeds from sales of available-for-sale securities were ¥189,037 million, ¥162,160 million and ¥35,178 million ($374 million) for the years ended March 31, 2011, 2012 and 2013, respectively. On

$46,262 6,373 5,713 $58,348 $ 214 841 $ 1,055

$ 2,244 8,553 334 $11,131

$ 94 28 0 $122

$48,412 14,898 6,047 $69,357

7. Finance receivables
Finance receivables consist of the following:
Yen in millions March 31, 2012 2013 U.S. dollars in millions March 31, 2013

those sales, gross realized gains were ¥8,974 million, ¥4,822 million and ¥1,048 million ($11 million) and gross realized losses were ¥87 million, ¥15 million and ¥31 million ($0 million), respectively. During the years ended March 31, 2011, 2012 and 2013, Toyota recognized impairment losses on available-for-sale securities of ¥7,915 million, ¥53,831 million and ¥2,104 million ($22 million), respectively, which are included in “Other income (loss), net” in the accompanying consolidated statements of income. In the ordinary course of business, Toyota maintains long-term investment securities, included in “Marketable securities and other securities investments” and issued by a number of non-public companies which are recorded at cost, as their fair values were not readily determinable. Management employs a systematic methodology to assess the recoverability of such investments by reviewing the financial viability of the underlying companies and the prevailing market conditions in which these

Retail Finance leases Wholesale and other dealer loans Deferred origination costs Unearned income Allowance for credit losses Retail Finance leases Wholesale and other dealer loans Total allowance for credit losses Total finance receivables, net Less—Current portion Noncurrent finance receivables, net Finance receivables were geographically distributed as follows: in North America 58.1%, in Japan 12.0%, in Europe 10.3%, in Asia 7.1% and in Other

¥ 7,248,793 955,430 2,033,954 10,238,177 105,533 (494,123) (77,353) (30,637) (24,238) (132,228) 9,717,359 (4,114,897) ¥ 5,602,462

¥ 9,047,782 1,029,887 2,615,728 12,693,397 135,398 (628,340) (83,858) (28,928) (26,243) (139,029) 12,061,426 (5,117,660) ¥ 6,943,766

$ 96,202 10,950 27,812 134,964 1,439 (6,681) (892) (307) (279) (1,478) 128,244 (54,414) $ 73,830

12.5% as of March 31, 2012, and in North America 57.6%, in Europe 10.0%, in Japan 9.9%, in Asia 9.5% and in Other 13.0% as of March 31, 2013.

722 (90.046 ¥1.S.051 10. Retail Wholesale and Finance leases other dealer loans Retail U.537) (28. Current 31-60 days past due 61-90 days past due Over 90 days past due Total $94.127.305.923.528 ¥9.430 ¥923.365 64.645 7.615.766 2.716 6.886 $6.430 1.034 2.074 3.126 ¥9.978 162. dollars in millions Wholesale and Finance leases other dealer loans Retail Finance leases The table below shows the amount of the finance receivables segregated into aging categories based on the number of days outstanding as of March 31.263 ¥7.721.180 119.585 1.698 Yen in millions March 31.542 2.202 $3. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with ¥688.052 1.016 1.331 1.950 38 (931) (307) $ 9. 2012 Wholesale Real estate Working capital 2014 2015 2016 2017 2018 Thereafter ¥3.928) ¥ 916.106 1.032.305.047.642 266.447 ¥742.950 $13. Toyota estimates allowance for credit losses by variety of credit-risk evaluation process to cover probable and estimable losses above.998 ¥658.899 3.767 29. 2013 Retail Finance leases Real estate Working capital Minimum lease payments Estimated unguaranteed residual values Deferred origination costs Less—Unearned income Less—Allowance for credit losses Finance leases.478 3.442 149. 2013 Wholesale ¥535.887 3. the future minimum lease payments on finance leases and the contractual maturities of wholesale and other dealer loans at March 31.782 ¥1. 2012 and 2013: Yen in millions March 31.729 699 316 69 $7.899 $21. 2013 Finance leases Wholesale Real estate Working capital Toyota or otherwise fail to perform as agreed.558 609.953 45 — — ¥1.881 897 184 240 $96.430 3.671 70 — 121 ¥574.998 $6.695 1. net Toyota is exposed to credit risk on Toyota’s finance receivables.887 ¥1.218.312 22.999 $ 7.029.230 1.248.040.878 ¥2.661 4.674 ¥955.642 3 — 53 ¥923.593 18.255 338.202 $10.S.296 — — 98 ¥535. 2012 2013 U.639 65.244 23.793 ¥939.862 Finance leases consist of the following: Yen in millions March 31.788 955.324 192.887) (30.812 Current 31-60 days past due 61-90 days past due Over 90 days past due Total ¥7.782 ¥285.021. dollars in millions March 31.628 ¥ 742.497 65.271 700 $27.047.728 $32.553 Retail U.S.354 17.928 — — — $6.553 — — — ¥651.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 85 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [8 of 44] Notes to Consolidated Financial Statements The contractual maturities of retail receivables.637) ¥837.394 ¥574.588 84. dollars in millions March 31.091 115. 2013 are summarized as follows: Yen in millions Years ending March 31.886 0 — — $13.640 125.345 5.857 33 17 43 $10.314 13.177 ¥651.871 ¥2.851 24.146.750 Current 31-60 days past due 61-90 days past due Over 90 days past due Total ¥8.989 6.871 1.595 $96.928 .871 287.997 1 — — $6.029.114 63 — — ¥658.S.303 11.577 (87.

2013 Real estate Working capital Wholesale Total Yen in millions March 31.243 1.532 155.367 ¥1.689 $3. 2013 Real estate Working capital Total Performing Credit Watch At Risk Default Total ¥720.264 17. Performing: At Risk: Default: Account not classified as either Credit Watch.197 $2.382 12.951 5.867 38.S.958 ¥451.370 98.005 ¥307.995 Other regions Credit qualities of the wholesale and other dealer loan receivables portfolio segment in other regions are also monitored based on internal risk assessments by dealers on a consistent basis as in the United States.587 Wholesale Yen in millions March 31.297 Performing Default Total ¥485.480 ¥1.176 54. Wholesale Total Wholesale Total Performing Credit Watch At Risk Default Total ¥513.801 2.726 $13.610 ¥227.513 6.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 86 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.759 ¥152.410. dollars in millions March 31.431 Wholesale U. 2012 and 2013: Wholesale U.871 5.659 996 33 1 $8.936 ¥952.418 ¥488.659 89 4 $14.580 $1.929 8.429 ¥347.968 583 28 1 $4.401 17 $2. dollars in millions March 31.S.114 106 ¥817.169 919 ¥1.464 3.057.827 ¥225.632 55. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [9 of 44] Notes to Consolidated Financial Statements The tables below show the recorded investment for each credit quality of the finance receivable within the wholesale and other dealer loan receivables United States The wholesale and other dealer loan receivables portfolio segment is primarily segregated into credit qualities below based on internal risk assessments by dealers.072 ¥176.485 2.693 ¥170.367 Performing Default Total ¥330. “Performing” and “Default”.161 36 $5.655 23.679 507 ¥489.616 80 28 2 $1.202 $12.808 1.758 59 $12. 2013 Real estate Working capital Total Performing Credit Watch At Risk Default Total $7.245.308 93.505 431 ¥451.186 ¥1. 2012 Real estate Working capital portfolio segment in the United States and other regions as of March 31.014 618 423 ¥122.651 131 ¥430. At Risk or Default Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors Account is not currently meeting contractual obligations or we have temporarily waived certain contractual requirements Yen in millions March 31.643 3.363 ¥488.406 430 ¥1.157 30 ¥358. and consequently the tables below summarize information for two categories.436 ¥116. 2013 Real estate Working capital Total Performing Default Total $5.418 $5.909 19.S.926 ¥ 938. These accounts classified as “Credit Yen in millions March 31. 2012 Real estate Working capital Credit Watch: Account designated for elevated attention Watch” or “At Risk” were not significant in other regions.817 .048 7.196 6 $5.641 193 ¥162.205.199.886 6.932 ¥976.171 ¥373.394 466 ¥576.

939 ¥25.426 ¥81.068 ¥15.721 3.967 ¥2.529 ¥23.592 ¥82.S.718 ¥1.105 ¥11.967 ¥ 8.574 3.939 ¥7.897 ¥14.246 573 Total ¥25. For the years ended March 31.165 Working capital 38 496 38 496 Total ¥14.891 Working capital 1.790 ¥39.068 ¥15.120 18.033 5.056 1 166 415 83 ¥3.763 ¥40.438 ¥40.137 2.970 ¥39. dollars in millions March 31. 2013 and for which there was a payment default were not significant for all classes of such receivables.015 ¥ 6.429 6.236 ¥14.165 15 9.790 ¥39.726 4.450 1.726 16.616 161 20.444 15. 2013 Average impaired finance Interest income receivables recognized Yen in millions Average impaired finance receivables Interest income recognized For the years ended March 31. 2013 Recorded investment Unpaid principal balance Individually evaluated allowance Impaired account balances individually evaluated for impairment with an allowance: Wholesale ¥ 8.015 ¥ 6. 2013 was not significant for all classes of finance receivables.897 Impaired account balances aggregated and evaluated for impairment: Retail ¥42.203 22.429 6. 2012 2013 2012 2013 Total impaired account balances: Retail Finance leases Wholesale Real estate Working capital Total ¥44. 2012 2013 U.260 ¥3.789 ¥3.716 Real estate 16. 2012 2013 Individually evaluated allowance March 31.590 ¥41.444 15.797 Finance leases 325 103 180 85 Wholesale 22. dollars in millions For the year ended March 31. .438 ¥40.700 7 79 395 79 ¥4.252 Working capital 995 5.691 ¥6.487 ¥41.360 ¥80.734 16.742 Total ¥82.246 995 5.203 Real estate 16.862 Impaired account balances individually evaluated for impairment with an allowance: Wholesale $127 $127 $16 Real estate 72 72 18 Working capital 56 56 39 Total $255 $255 $73 Impaired account balances individually evaluated for impairment without an allowance: Wholesale $ 67 $ 67 Real estate 97 97 Working capital 5 5 Total $169 $169 Impaired account balances aggregated and evaluated for impairment: Retail $430 $423 Finance leases 1 1 Total $431 $424 Total impaired account balances: Retail $430 $423 Finance leases 1 1 Wholesale 194 194 Real estate 169 169 Working capital 61 61 Total $855 $848 U.362 279 18.721 Total impaired account balances: Retail Finance leases Wholesale Real estate Working capital Total The amount of finance receivables modified as a troubled debt restructuring for the year ended March 31.882 Total impaired account balances: Retail ¥42.820 ¥79.567 ¥79.104 ¥39.541 Impaired account balances individually evaluated for impairment without an allowance: Wholesale ¥14.891 16.236 Real estate 15 9.S.120 18.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 87 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.797 Finance leases 325 103 180 85 Total ¥42. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [10 of 44] Notes to Consolidated Financial Statements The tables below summarize information about impaired finance receivables: Recorded investment March 31.S.033 5. 2012 2013 Yen in millions Unpaid principal balance March 31.529 ¥23.742 1.105 ¥11.487 ¥41.618 15. Finance receivables modified as troubled $421 2 219 165 41 $848 $33 0 2 4 1 $40 debt restructurings for the year ended March 31.

572 $ 4.047 ¥44.715.071 million) for the years ended March 31.S. 11. 2012 2013 U.622.498 405 119 44 $10.786 $10.848 (49.126 ¥957.898 3.294 104.595 87.007.S.890 1.093 million and ¥30. Allowance for doubtful accounts and credit losses An analysis of activity within the allowance for doubtful accounts relating to trade accounts and notes receivable for the years ended March 31. Rental income from vehicles and equipment on operating leases was ¥475. Yen in millions U.S. net ¥2.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 88 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.706 1. 2011.361 million and ¥476.243 The future minimum rentals as shown above should not be considered indicative of future cash collections.685 302.353 (667.745 (457) 759 ¥46. respectively.280.011 (749. 2011 2012 2013 U.097 1.999. is attributed to certain non-current receivable balances which are reported as other assets in the consolidated balance sheets.182 Finished goods Raw materials Work in process Supplies and other Total ¥ 981. dollars in millions March 31.634) 3.164 4. Inventories Inventories consist of the following: Yen in millions March 31.144 $469 19 (5) 8 $491 The other amount includes the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest and currency translation adjustments for the years ended March 31.690 140. Vehicles and equipment on operating leases Vehicles and equipment on operating leases consist of the following: Yen in millions March 31. 2013 Vehicles Equipment Less—Deferred income and other Less—Accumulated depreciation Less—Allowance for credit losses Vehicles and equipment on operating leases.036 71. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [11 of 44] Notes to Consolidated Financial Statements 8.575.020) ¥2.094) ¥44. Future minimum rentals from vehicles and equipment on operating leases are due in installments as follows: Years ending March 31. respectively. 2011.878 221.406) (8.865 38. 2011.042 11. ¥451. 2012 and 2013 is as follows: 10.134 2.302 (7.753 $31. 2012 and 2013 totaling ¥31.843 (699) (5. dollars in millions 9.756 ¥1. .690) (1. 2013 Yen in millions For the years ended March 31.536.269 million ($322 million).S.714 4.135) ¥1. A portion of the allowance for doubtful accounts balance at March 31.238) (8. 2012 and 2013. dollars in millions March 31.047 5.218 1.097 ¥44.935 million ($5. 2012 2013 U.812 ¥2.476 83.966) (86) $24.282 ¥1.780 235.S.110 (698) 32.504 891 $18. Other receivables Other receivables relate to arrangements with certain component manufacturers whereby Toyota procures inventory for these component manufactures and is reimbursed for the related purchases.472 million.871 ¥1.775) ¥44. 2013 2014 2015 2016 2017 2018 Thereafter Total minimum future rentals ¥460.038.899. net of reversal Write-offs Other Allowance for doubtful accounts at end of year ¥46.351 (65. 2012 and 2013. dollars in millions For the year ended March 31.090) 2.659 388.250 Allowance for doubtful accounts at beginning of year Provision for doubtful accounts.806 (2.612 347.

2012 Retail Finance leases Wholesale and Other dealer loans Allowance for credit losses at beginning of year Provision for credit losses.243 . GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [12 of 44] Notes to Consolidated Financial Statements An analysis of the allowance for credit losses relating to finance receivables and vehicles and equipment on operating leases for the years ended March 31.079 (48.508) (2. 2011. net of reversal Charge-offs Recoveries Other Allowance for credit losses at end of year ¥232.063) (2.024 (4.495. dollars in millions For the year ended March 31.147. 2012 and 2013 are as follows: Summarized financial information for affiliated companies accounted for by the equity method is shown below: Yen in millions March 31.541.129 57 ¥ 9.847 ¥ 6.286 76.795 13.768 $ 22.S.517 ¥18.580 (4.701) 14.493 272 (603) 156 246 $1.539 ¥28.078 ¥18.027. 2012 2013 U.103 ¥ 1.769 8. 2012 and 2013 is as follows: Yen in millions For the years ended March 31.622 (56.112. 2011 2012 2013 U.045 6. 2013 Wholesale and Finance leases Other dealer loans Allowance for credit losses at beginning of year Provision for credit losses.S.928 ¥24.129.795 $192.356 Allowance for credit losses at beginning of year Provision for credit losses.002 4.159 ¥83.895 6.049 $1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 89 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.276 ¥77. Affiliated companies and variable interest entities Investments in and transactions with affiliated companies An analysis of the allowance for credit losses above relating to retail receivables portfolio segment.578) 16. 2013 Wholesale and Finance leases Other dealer loans Current assets Noncurrent assets Total assets Current liabilities Long-term liabilities and noncontrolling interests Affiliated companies accounted for by the equity method shareholders’ equity Total liabilities and shareholders’ equity Toyota’s share of affiliated companies accounted for by the equity method shareholders’ equity Number of affiliated companies accounted for by the equity method at end of period ¥ 9.637 (4.051 2.006) (110) 3 4.032.363 ¥140.775) 590 4. dollars in millions March 31.118 ¥26.690 23.768 $ 67.268 649 ¥167.103 ¥ 5.325 $192.129. dollars in millions For the year ended March 31.569 (44.415 4.075 ¥147.199 13. 2013 Yen in millions For the year ended March 31.027. 2012 and 2013.102.914.584 56 $102.363 25.847. net of reversal Charge-offs Recoveries Other Allowance for credit losses at end of year $823 309 (516) 136 140 $892 $326 (43) (30) 6 48 $307 $257 (21) (1) 0 44 $279 The other amount primarily includes the impact of currency translation adjustments for the years ended March 31.564 Allowance for credit losses at beginning of year Provision for credit losses.495 4. finance lease receivables portfolio segment and wholesale and other dealer loan receivables portfolio segment for the years ended March 31.767) (305) 16 714 ¥24.742) 14.780 (51.847 ¥ 2.615 ¥167.S.499) 718 902 ¥30.238 Retail Yen in millions For the year ended March 31.334 (86. 2011. net of reversal Charge-offs Recoveries Other Allowance for credit losses at end of year ¥77.238 (2.208 ¥16.328 7.S. 12. 2013 Retail U.479 2.443 90. net of reversal Charge-offs Recoveries Other Allowance for credit losses at end of year ¥92.222.914.131 ¥140.528) 12.563 ¥16.615 3.634.115) 18.858 ¥30.637 ¥28.366.353 ¥36.687 48.353 29.

350 million).4% 22.467. Toyota evaluated its investments in affiliated companies.413 million and ¥1. 2012 and 2013 were ¥103.582.208. respectively.977 million ($1. 2011.816 million in secured debt as of March 31. respectively.4% 22.950 million and ¥126.867 $ $ 7.926.536.687 6.326 3. Toyota Tsusho Corporation Toyoda Gosei Co. Variable interest entities Toyota enters into securitization transactions using special-purpose entities.831 million) at March 31.499 2. dollars in millions March 31.757 $ 27. Certain affiliated companies accounted for by the equity method with carrying amounts of ¥1. Name of affiliated companies Denso Corporation Toyota Industries Corporation Aisin Seiki Co.497 707.1% 43.988 million ($16.284 ¥1.9% 24. 2013 Net revenues Gross profit Net income attributable to affiliated companies accounted for by the equity method Equity in earnings of affiliated companies attributable to Toyota Motor Corporation ¥21.027 $2.297.016 ¥22..664 million ($443 million) in vehicles on operating leases.136 million in retail finance receivables.242.8% 23.874. interest rate.1% 24. the financial condition and near-term prospects of the affiliated companies and Toyota’s ability and intent to retain those investments in the companies for a period of time.780 million). 2011 2012 2013 Entities comprising a significant portion of Toyota’s investment in affiliated companies and percentage of ownership are presented below: Percentage of ownership March 31. and other receivables Accounts payable and other payables ¥283. As a result.488 42. 2013 Account balances and transactions with affiliated companies are presented below: Yen in millions March 31.477.138 $20.S.S. 2012 and 2013.513 million ($12.983 197.955 Yen in millions ¥252. 2011.143 ¥ 2.745 Dividends from affiliated companies accounted for by the equity method for the years ended March 31.342.8% 23.397 3. Toyota does not have any significant related party transactions other than transactions with affiliated companies in the ordinary course of business.400 million) in secured debt as of March 31..135.249 231.660 ¥ ¥ 554.519 $257. 2011 2012 2013 U.347 million ($20.295 U.541 million in restricted cash and ¥1.785.185 ¥1.954. ¥58. ¥41. As for VIEs other than those specified above. 2012 and 2013.771 215.575 million and ¥1. respectively. 2012 2013 U. and/or prepayment risks are not incremental compared with the situation before Toyota enters into securitization transactions. Ltd. ¥65.020. Risks to which Toyota is exposed including credit.9% 24.211. ¥122. neither the aggregate size of these VIEs nor Toyota’s involvements in these VIEs are material to Toyota’s consolidated financial statements. 2012 and have ¥1. Although the finance receivables and vehicles on operating leases related to securitization transactions have been legally sold to the VIEs. dollars in millions For the year ended March 31. Toyota has both the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance and the obligation to absorb losses of the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. dollars in millions For the year ended March 31.0% length of time and the extent to which the quoted market prices have been less than the carrying amounts.1% 43.892 ¥ ¥ 705. 2013. 2012 2013 Net revenues Purchases ¥1.706 ¥ ¥ 641.708 592.612. .620. The consolidated securitization VIEs have ¥1.854 4. Ltd. Toyota is considered the primary beneficiary of the VIEs and therefore consolidates the VIEs.046 ¥ 2.701 ¥24.S. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [13 of 44] Notes to Consolidated Financial Statements Yen in millions For the years ended March 31.770 million ($625 million) in restricted cash and ¥978.655.169 million.233 ¥ 2. Toyota did not recognize any impairment loss for the years ended March 31.040.095 million ($10. were quoted on various established markets at an aggregate value of ¥1.074 million) in retail finance receivables. 2013 For the years ended March 31.S.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 90 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. that are considered variable interest entities (“VIEs”). considering the 24.461 Trade accounts and notes receivable.

plant and equipment with a book value of ¥91.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 91 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.891 946.263 million ($21.876 530.40% per annum in 2013 Unsecured notes of parent company.40% per annum in 2012 and from 0. Japanese yen.450. 2013 of 0. 2012 and March 31.840 million) related to commercial paper programs.649 3.787 47.834 million ($976 million) and in addition. .810 21.277 21.000 4. Unsecured loans. property. These other assets principally consist of securitized finance receivables. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [14 of 44] Notes to Consolidated Financial Statements 13.00% per annum in 2012 and from 0. 2013 2012 Long-term debt at March 31.93% and of 2.938 million) of which ¥455.636 9.399 10. representing obligations principally to banks.180 million ($4. 2013 U. Toyota is authorized to obtain short-term financing at prevailing interest rates for periods not in excess of 360 days.141. due 2012 to 2019 in 2012 and due 2013 to 2019 in 2013 with interest ranging from 1. respectively ¥1. 2013 of 1.755) $ 78.062.S. 2013.90% per annum in 2012 and from 0.428) ¥ 7.554.000 460. approximately 40%. 2012 and 2013 consist of the following: Yen in millions March 31.10% to 11.093 ¥3.134 million) were pledged as collateral mainly for certain debt obligations of subsidiaries.411 $ 33. with a weighted-average interest at March 31.785 ¥ 3.188 $43.19% to 3.142.295 ¥4. dollars. respectively.502.482 As of March 31. dollars in millions March 31.027.199 million ($12. Under these programs.00% per annum in 2013 Long-term capital lease obligations.40% to 14.73% per annum in 2013 Less—Current portion due within one year ¥3.30% per annum in 2013 Secured loans.294 2.S.063.704. Toyota has unused shortterm lines of credit amounting to ¥2.52% per annum.S. respectively Commercial paper with a weighted-average interest at March 31. 2012 and March 31. due 2012 to 2030 in 2012 and due 2013 to 2030 in 2013 with interest ranging from 0.348 8. 2012 2013 U.38% to 14.72% and of 0.37% to 11.17% to 24.337.460 922. 2013 Loans.75% per annum in 2013 Medium-term notes of consolidated subsidiaries.252 (2.064.289 4. 13% and 30% of long-term debt are denominated in U. Short-term borrowings and long-term debt Short-term borrowings at March 31.00% to 27.13% to 8. due 2012 to 2031 in 2012 and due 2013 to 2031 in 2013 with interest ranging from 0.528 32.558 3.233 $11.50% per annum in 2012 and from 0.042.620) ¥6.07% to 3.089. Australian dollars and other currencies.S. other assets aggregating ¥1. 17%.13% to 9. As of March 31.00% per annum in 2012 and from 0.042. 2013.31% per annum. representing obligations principally to finance receivables securitization due 2012 to 2050 in 2012 and due 2013 to 2050 in 2013 with interest ranging from 0.00% per annum in 2013 Unsecured notes of consolidated subsidiaries.019 10. 2013.020 As of March 31. principally from banks.00% to 32.556 ¥1. due 2012 to 2047 in 2012 and due 2013 to 2047 in 2013 with interest ranging from 0.775 (28.158.015 993. 2012 and 2013 comprises the following: Yen in millions March 31. due 2012 to 2029 in 2012 and due 2013 to 2029 in 2013 with interest ranging from 0. dollars in millions March 31.412 855.23% per annum in 2012 and from 0.824 228 106.292.13% to 23.137.897 (2.512.

930 (3.207.834 (344. As of March 31.984 (1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 92 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.383) 24.661) 5.925) 270. dollars in millions The net changes in liabilities for quality assurances above for the years ended March 31. Product warranties and recalls and other safety measures The table below shows the net changes in liabilities for recalls and other safety measures which are comToyota provides product warranties for certain defects mainly resulting from manufacturing based on warranty contracts with its customers at the time of sale of products. Liabilities for quality assurances at beginning of year Payments made during year Provision for quality assurances Changes relating to pre-existing quality assurances Other Liabilities for quality assurances at end of year ¥680. 2013 2014 2015 2016 2017 2018 Standard agreements with certain banks in Japan include provisions that collateral (including sums on deposit with such banks) or guarantees will be furnished upon the banks’ request and that any collateral furnished.023 $ 8.096) 356.791) ¥764.252.703.090.344) 237. In addition to product warranties.499 (159.110 22. 2011. 2011 2012 2013 U. Toyota has unused longterm lines of credit amounting to ¥7.224 (1.907 635 ¥468.827) (5.091 1. 2013.542 (8. 2011.109 million). Yen in millions For the years ended March 31.880 82 $6. dollars in millions For the year ended March 31. dollars in millions For the year ended March 31.225 12.003.751 ¥566. Toyota has not received any significant such requests from these banks.268 2011 indebtedness to such banks. 2012 2013 U.771) 588.406 $4.219 2.369 ¥764.499 ¥389. 2012 and 2013.901 $28.385) ¥839.835 14. Liabilities for product warranties and liabilities for recalls and other safety measures have been combined into a single table showing an aggregate liability for quality assurances due to the fact that both are liabilities for costs to repair or replace defects of vehicles and the amounts incurred for recalls and other safety measures may affect the amounts incurred for product warranties and vice versa.422 (263.022 .S.749 (5.279) 491. 2013 ¥301.369 (348. During the year ended March 31. 2013. Toyota accrues for costs of recalls and other safety measures at the time of vehicle sale based on the amount estimated from historical experience.341. pursuant to such agreements or otherwise.704. Toyota initiates recalls and other safety measures to repair or to replace parts which might be expected to fail from products safety perspectives or customer satisfaction standpoints.226 (89) 259 $10. Yen in millions U.924) 2. 14. Liabilities for recalls and other safety measures at beginning of year Payments made during year Provision for recalls and other safety measures Other Liabilities for recalls and other safety measures at end of year prised in liabilities for quality assurances above for the years ended March 31. 2012 and 2013 consist of the following: Yen in millions For the years ended March 31.697 ¥468. will be applicable to all present or future ¥2.891 (7.S.576) ¥389.834 ¥ 839.755 18. Liabilities for quality assurances are included in “Accrued expenses” in the consolidated balance sheets.697 (180.428 1.251 1.408 (476.883 7. Toyota accrues estimated warranty costs to be incurred in the future in accordance with the warranty contracts. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [15 of 44] Notes to Consolidated Financial Statements The aggregate amounts of annual maturities of long-term debt during the next five years are as follows: Years ending March 31.309 ¥1.701) (25.S.S.214) 436.081 million ($77.665 The other amount primarily includes the impact of currency translation adjustments and the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest.

3 39.8) (9.6% for the years ended March 31.008 ¥551.925 The provision for income taxes consists of the following: Yen in millions For the years ended March 31.265 4.489 212 1.1) (4.686 $1.866 .2% and 37.9 (1.395 ¥262.821 ¥111.290 ¥(177.5 (1.111 (44.931 7.363 144.994 $14.S.6) 2. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [16 of 44] Notes to Consolidated Financial Statements 15. 40.165 1.272 ¥178. 2012 2013 2011 Income (loss) before income taxes: Parent company and domestic subsidiaries Foreign subsidiaries ¥(278.335 6.2% 2. 2013 Statutory tax rate Increase (reduction) in taxes resulting from: Non-deductible expenses Deferred tax liabilities on undistributed earnings of foreign subsidiaries Deferred tax liabilities on undistributed earnings of affiliated companies accounted for by the equity method Valuation allowance Tax credits The difference between the statutory tax rate in Japan and that of foreign subsidiaries Unrecognized tax benefits adjustments Other Effective income tax rate 40.2%.016 391.877 (57.940) 64.1 (2.8) 0.2 4. Income taxes The components of income (loss) before income taxes comprise the following: Yen in millions For the years ended March 31.725 ¥ 432.7 (3.6) (9. plant and equipment and non-manufacturing purchases. 2011 2012 2013 U.268) 129.519 ¥ 563.290 141.S.5% 40.852 751.229) 841. dollars in millions For the year ended March 31.6 8. Other payables Other payables are mainly related to purchases of property.514 255. Reconciliation of the differences between the statutory tax rate and the effective income tax rate 16.403.3% Current income tax expense: Parent company and domestic subsidiaries Foreign subsidiaries Total current Deferred income tax expense (benefit): Parent company and domestic subsidiaries Foreign subsidiaries Total deferred Total provision ¥ 85.2 14.821 227. respectively. 2012 and 2013.2) 60.678 140.873 ¥ 651.1 1.1 55.8 12.900 2. 2011. Toyota is subject to a number of different income taxes which.7 4.2% 1. The statutory tax rates in effect for the year in which the temporary differences are expected to reverse are used to calculate the tax effects of temporary differences which are expected to reverse in the future years. in the aggregate.710 ¥312.967 160.7 9.978 85.662 213.S.8 4.6% 0.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 93 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.1 1.6) 0.041 19. 2013 is as follows: 2011 For the years ended March 31.852) 610.701 $5.649 $ 6. dollars in millions For the year ended March 31. 2012 2013 U.797 ¥1.6 1.3) (0. indicate a statutory rate in Japan of approximately 40.6% 37.

426 147.978 369.265 337.S.605) ¥309.812 million ($115 million).292) ¥ 749.857 (14.713) (567.776) (34.298) ¥280.915) (712) (18. 2011.950) dation and deconsolidation of certain entities due to changes in ownership interest and currency translation adjustments during the years ended March 31.835) 1.905 million) as of March 31. Deferred tax assets: Accrued pension and severance costs Accrued expenses and liabilities for quality assurances Other accrued employees’ compensation Operating loss carryforwards for tax purposes Tax credit carryforwards Property.927) ¥ (559. 2012 and 2013 consist of the following: Yen in millions For the years ended March 31.874 (284. 2013.251 151. Unanticipated events or changes could result in re-evaluating the realizability of deferred tax assets.028) 12.718.596 1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 94 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.950) The valuation allowance mainly relates to deferred tax assets of operating loss and foreign tax credit carryforwards for tax purposes that are not expected to be realized.734.627) ¥ (559.076 1. respectively.028 Deferred tax assets: Deferred income taxes (Current assets) Investments and other assets—Other Deferred tax liabilities: Other current liabilities Deferred income taxes (Long-term liabilities) Net deferred tax liability The other amount includes the impact of consoli¥ 718.280 million ($811 million) and ¥422. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [17 of 44] Notes to Consolidated Financial Statements Significant components of deferred tax assets and liabilities are as follows: Yen in millions March 31. respectively.494 (4. . Tax credit carryforwards as of March 31.736) $ (5.288 407 (755) 88 $3.135) (274) (6. 2012 2013 U.647) (650.953) (908.133 million ($4. management has made no provision for income taxes on those undistributed earnings aggregating ¥2.510) ¥ (113. and are available as an offset against future taxable income.420 15.175. respectively.581) (504.398 100.408. Toyota estimates an additional tax provision of ¥118.475) (27.043 227. 2013 2011 The deferred tax assets and liabilities above that comprise the net deferred tax liability are included in the consolidated balance sheets as follows: Yen in millions March 31.S.936 101.809) (54.685 ¥280. The net changes in the total valuation allowance for deferred tax assets for the years ended March 31.606 2.292) ¥ 230. 2013 Valuation allowance at beginning of year Additions Deductions Other Valuation allowance at end of year ¥239. 2012 2013 U.446 5.155 1.265 million) would be required if the full amount of those undistributed earnings were remitted.054) (35.986) 8.285 (70.258) (1.389) (66. Because management intends to reinvest undistributed earnings of foreign subsidiaries to the extent not expected to be remitted in the foreseeable future.444) $ (5.923) (1.749) (1. 2012 and 2013. dollars in millions For the year ended March 31.604.906 296.754 (65. 2012 2013 U. The majority of these carryforwards in Japan and foreign countries expire in years 2014 to 2022 and expire in years 2014 to 2033. dollars in millions March 31.021 480.199 (23.588) $ 2.566) (2. The accounting for deferred tax assets represents Toyota’s current best estimate based on all available evidence.S.687 91. plant and equipment and other assets Other Gross deferred tax assets Less—Valuation allowance Total deferred tax assets Deferred tax liabilities: Unrealized gains on securities Undistributed earnings of foreign subsidiaries Undistributed earnings of affiliated companies accounted for by the equity method Basis difference of acquired assets Lease transactions Other Gross deferred tax liabilities Net deferred tax liability ¥ 236.108 1.998 million ($1.268 38.385.968 1. 2011.992 108.488 million). dollars in millions March 31. 2013 in Japan and foreign countries were ¥76.522 (3.269 55.459.428 108.065 (247) (14.029) (379) (6.039 (388.985 106. 2013 The factors used to assess the likelihood of realization of the deferred tax assets are the future reversal of existing taxable temporary differences. the future taxable income and available tax planning strategies that are prudent and feasible. both positive and negative.711 1.218 (210.588) $ 7. is considered to determine whether.791 (10. based on the weight of that evidence.901) (25.835 $3. 2013 in Japan and foreign countries were ¥90. respectively.934 1.268 ¥309.S. a valuation allowance is needed for deferred tax assets which are not more-likely-than-not to be realized.120) (576.268) 1. All available evidence. Operating loss carryforwards for tax purposes as of March 31.599 160.883) ¥(113.268 ¥284.439 million ($961 million) and ¥10.486 (309.685 96.077) (4. and the majority of these carryforwards in Japan and foreign countries expire in years 2014 to 2016 and expire in years 2014 to 2033.295.554 million ($28.

held on June 14. 2012. Interest and penalties related to income tax liabilities are included in “Other income (loss). Shareholders’ equity Changes in the number of shares of common stock issued have resulted from the following: 2011 For the years ended March 31. Toyota remains subject to income tax examination for the tax returns related to the years beginning on and after April 1.133) — (2.279 million and ¥5.901 ¥16.492 — — 3.S.794) (2.447. with various tax jurisdictions in Japan and foreign countries. 2012 and 2013.997. Retained earnings at March 31. if recognized.453 4.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 95 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.735 million ($1. respectively. In accordance with customary practice in Japan. 2012 and 2013 was ¥173.S. 2012 and 2013.020 million). and Kanto Auto Works.292 million) as of March 31.869 million).. 2011 2012 2013 U.201 ¥22.362) ¥15. 2011.997.758 million) relating to equity in undistributed earnings of affiliated companies accounted for by the equity method.447. The amounts of statutory retained earnings of the parent company available for dividend payments to shareholders were ¥5.447.187 10. 2000.447. and is excluded from the calculation of the profit available for dividend.776) 3.711 million and ¥175. Ltd. the parent The amount of unrecognized tax benefits that. respectively. which were approved at the Ordinary General Shareholders’ Meeting. No further appropriations are required when the total amount of the capital reserve and the retained earnings reserve reaches 25% of stated capital. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [18 of 44] Notes to Consolidated Financial Statements A summary of the gross unrecognized tax benefits changes for the years ended March 31.055 million ($16.492 The Companies Act provides that an amount equal to 10% of distributions from surplus paid by the parent company and its Japanese subsidiaries be appropriated as a capital reserve or a retained earnings reserve. Retained earnings at March 31.64) per share. On January 1. The amounts of interest and penalties accrued as of and recognized for the years ended March 31. The Companies Act provides that the retained earnings reserve of the parent company and its Japanese subsidiaries is restricted and unable to be used for dividend payments. ¥60 ($0.997.492 — — 3. the parent company implemented share exchanges as a result of which the parent company became a wholly-owning parent company and each of Toyota Auto Body Co.576. 2012 2013 Balance at beginning of year Additions based on tax positions related to the current year Additions for tax positions of prior years Reductions for tax positions of prior years Reductions for tax positions related to lapse of statute of limitations Reductions for settlements Other Balance at end of year ¥23. . dollars in millions For the year ended March 31.492 — — 3.492 3. the distributions from surplus are not accrued in the financial statements for the corresponding period. 2013.997.858. The retained earnings reserve included in retained earnings as of March 31.997.492 3. Ltd.801 (363) — (12. net”. As a˛result of these share exchanges. 2013 17.901 2.619) — (2. and the parent company acquired additional shares of each subsidiary. would affect the effective tax rate was not material at March 31. respectively.339 (1.447 $180 26 46 (17) — (30) 34 $239 Common stock issued: Balance at beginning of year Issuance during the year Purchase and retirement Balance at end of year 3.965 213 12. 2013 include ¥1.447.447. Toyota does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. were not material.551 million ($62. but are recorded in the subsequent accounting period after shareholders’ approval has been obtained. 2006 and January 1. 2012 and 2013 is as follows: Yen in millions For the years ended March 31. 2011.348. became a whollyowned subsidiary. 2012 and 2013.997.564 (16.046 million ($2.453 ¥15.820) (357) ¥16. respectively. 2011. respectively. 2013 include amounts representing year-end cash dividends of ¥190.401 4.

802) 15.729) 99. respectively.956 ¥ 6.358) 26.721) (6.710 Detailed components of accumulated other comprehensive income (loss) in Toyota Motor Corporation shareholders’ equity at March 31.309) $4.151.480) ¥194.559) (7.514 ¥ (31. 2013 $(13.306 368.855) ¥ (10.748 .499 481 321 $11.285 (26.371 7.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 96 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.227 751 129. 2012 and 2013 consist of the following: Foreign currency translation adjustments Yen in millions Unrealized gains Pension (losses) on liability securities adjustments Accumulated other comprehensive income (loss) 2.256) (3.870) (192) (113) $(2.332 (111.918 $7. accumulated other comprehensive income (loss) decreased by ¥6.076) (10. 2012 Equity transaction with noncontrolling interests and other Foreign currency translation adjustments Unrealized gains (losses) on securities: Unrealized net holding gains (losses) arising for the year Less: reclassification adjustments for (gains) losses included in net income attributable to Toyota Motor Corporation Pension liability adjustments Other comprehensive income (loss) For the year ended March 31.886) ¥ (6. dollars in millions Tax amount Net-of-tax amount For the year ended March 31. and treasury stock decreased by ¥125.565 ¥ 822.246) Balances at March 31.776) (287.622 3.039. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [19 of 44] Notes to Consolidated Financial Statements company issued 31. 2013 Foreign currency translation adjustments Unrealized gains (losses) on securities: Unrealized net holding gains (losses) arising for the year Less: reclassification adjustments for (gains) losses included in net income attributable to Toyota Motor Corporation Pension liability adjustments Other comprehensive income (loss) $ 4.169 45.234) 42.565 ¥(209. For the year ended March 31.178.664) (175.535) 8. additional paid-in capital decreased by ¥551 million and retained earnings decreased by ¥45.S.098 (69.148 shares of treasury stock.230 30. 2012 and 2013 are as follows: Yen in millions Tax amount Net-of-tax amount ¥ (294. 2011.279) (31.503) (27. noncontrolling interests decreased by ¥117.872 50.638 341.271) 4.899) (6.112) ¥ 434.756 5.S. As a result of acquiring additional shares of each subsidiary.643 ¥(287.785 ¥(297.622 $ (8.613) (1.S.160. net of taxes for the years ended March 31.344) 15.835) (297.833) 822.435) 208 $(2.748 $ (3.330 27. 2012 Other comprehensive income (loss) Balances at March 31.328 298.787) Pre-tax amount U.123) Foreign currency translation adjustments U.069) ¥ 447.021) 19.232 ¥1. dollars in millions Pension Unrealized gains liability (losses) on adjustments securities Accumulated other comprehensive income (loss) Balances at March 31.629 289 208 $8. 2011.171 3.144.227) $(12.507 ¥666. 2012 and 2013 and the related changes.503) (87.785 (152.613) (22.874) (95.254) (69.365 million.177 19.058) 168. 2011 Foreign currency translation adjustments Unrealized gains (losses) on securities: Unrealized net holding gains (losses) arising for the year Less: reclassification adjustments for (gains) losses included in net income attributable to Toyota Motor Corporation Pension liability adjustments Other comprehensive income (loss) For the year ended March 31. As a result.556 (10.677) 164.302 517.948 (65. 2013 ¥ (872.043) ¥ (12.208) ¥ (34.813 ¥(168.886) (1. 2011 Equity transaction with noncontrolling interests and other Other comprehensive income (loss) Balances at March 31.881 million.916 million. 2012 Other comprehensive income (loss) Balances at March 31.649) $3.642) (20.089 $(2.248.722) ¥ (3.253 30. 2013 Foreign currency translation adjustments Unrealized gains (losses) on securities: Unrealized net holding gains (losses) arising for the year Less: reclassification adjustments for (gains) losses included in net income attributable to Toyota Motor Corporation Pension liability adjustments Other comprehensive income (loss) Pre-tax amount Tax effects allocated to each component of other comprehensive income (loss) for the years ended March 31.667) ¥(217.456) ¥ (846.208) (229.819 million and losses on disposal of treasury stock occurred in the amount of ¥45.710 ¥ (356. 2010 Other comprehensive income (loss) Balances at March 31.389) — (87.638 ¥ (813.729) (1.969 ¥ 4.481 million.681 ¥ (305.609) (1.666 9.118) 434.896) ¥ 7.057 $ (134) (1.503 million and additional paid-in capital increased by ¥44.839) (18.

369.036.759 4.147 million ($23 million). 2013 was ¥2.000 9. 2013 was ¥364 million ($4 million).716.31 1. 2013: Outstanding Exercise price range Yen Weighted-average exercise price Yen U.000 ¥4. Each year until June 2010.56 7.183 – 5.0 No options were exercised for the years ended March 31.000) 10.000 — (1. Stock-based compensation In June 1997. since the plans’ inception.000) (1. 2013 13.000 10.480.921 1.04 ¥ 565 4.000 — (645.821 ¥5. No cash was received from the exercise of stock options for the years ended March 31.909 $43 72 52 . 2010 Granted Exercised Canceled Options outstanding at March 31.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 97 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.05 3.56 3.S. Cash received from the exercise of stock options for the year ended March 31.849.328 5. Toyota recognized stock-based compensation expenses for stock options of ¥2.55 ¥1.79 4. The grant-date fair value of options granted is estimated using the Black-Scholes option pricing model with the following weightedaverage assumptions: 2011 Number of shares Weighted-average exercise price The following table summarizes Toyota’s stock option activity: Yen Weighted-average remaining contractual life in years Yen in millions Aggregate intrinsic value Options outstanding at March 31.S.522 million.183 — 4.774 4. The total intrinsic value of options exercised for the year ended March 31.774 4.700 3.539 million and ¥325 million ($3 million) as selling.909 ¥5.849.363 3.025 times the closing price of Toyota’s common stock on the date of grant. In June 2001.778.480.435.786.369.001 – 7.910 — 3.800) 12. Authorized shares for each year that remain ungranted are unavailable for grant in future years. 2011 Options exercisable at March 31. 2011 and 2012.256.183 – 7.900) 15.800 — — (3.849. dollars Number of shares Number of shares ¥3.921 ¥ — ¥ — ¥5. ¥1. 2013 Options exercisable at March 31.364.56 ¥5.941 — — 5.S.909 5.068 6.530. 2012 and 2013. the parent company’s shareholders approved a stock option plan for board members. Dividend rate Risk-free interest rate Expected volatility Expected holding period (years) For the years ended March 31. 2011. 2011 Granted Exercised Canceled Options outstanding at March 31.23 ¥ — 5.000 5. 2011 was ¥724 per share. Stock options granted in and after August 2006 have terms of 8 years and an exercise price equal to 1. 2012 Granted Exercised Canceled Options outstanding at March 31. 2012 Options exercisable at March 31.3% 32% 5. These options generally vest 2 years from the date of grant.000 ¥5. the shareholders have approved the authorization for the grant of options for the purchase of Toyota’s common stock. The fair value of options granted is amortized over the option vesting period in determining net income attributable to Toyota Motor Corporation in the consolidated statements of income.89 3.909 $43 72 52 4.059 4.849.000 10.065 3.278 3. 2011 and 2012. general and administrative expenses. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [20 of 44] Notes to Consolidated Financial Statements 18.347. The weighted-average grant-date fair value of options granted during the year ended March 31. dollars Weightedaverage remaining life Years Exercisable Weighted-average exercise price Yen U.907 ¥4.396 ¥4.800 9. the shareholders approved an amendment of the plan to include both board members and key employees.278 10.000 3.000 7.000 3.000 ¥4. The following table summarizes information for options outstanding and options exercisable at March 31.5% 0.068 6.

153 $15.491 (103. Effective October 1. dollars in millions March 31. These pension plan assets consist principally of common stocks.053 57.261 27.193 (1.411 927. 2012 and 2013 are comprised of the following: Yen in millions March 31.096 (19.387 885.543 (3) 573 10 (393) 11.480.S. 2004.S.141 (264) 53. the parent company partly amended its retirement plan and introduced the quasi cash-balance plan under which benefits are determined based on the variable-interest crediting rate rather than the fixed-interest crediting rate as was in the pre-amended plan. Employees receive additional benefits upon involuntary retirement.842 ¥1. government bonds and insurance contracts.241 30. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [21 of 44] Notes to Consolidated Financial Statements 19.160 582. Employees receive additional benefits on involuntary retirement. The benefits for these plans are based primarily on lengths of service and current rates of pay. employees of the parent company and subsidiaries in Japan are entitled.153 $ 268 6.100) $5.862 1. Effective October 1. Most foreign subsidiaries have pension plans or severance indemnity plans covering substantially all of their employees under which the cost of benefits are currently invested or accrued. Toyota uses a March 31 measurement date for its benefit plans. There are three types of “points” that vest in each year of service consisting of “service period points” which are attributed to the length of service. the minimum payment prior to retirement age is an amount based on voluntary retirement.667 (776) (61. the minimum payment prior to retirement age is an amount reflecting an adjustment rate applied to represent voluntary retirement.462) 90.362.660 834 632 67.423 834 (38. employees are entitled to lump-sum or pension payments determined based on accumulated “points” vested in each year of service.498) ¥504. The contributions to the plans are funded with several financial institutions in accordance with the applicable laws and regulations.545 145. including retirement at the age limit. which are pursuant to the Corporate Defined Benefit Pension Plan Law (CDBPPL). 2013 U. Employee benefit plans Pension and severance plans Upon terminations of employment. under the retirement plans of each company.S. The parent company and most subsidiaries in Japan have contributory funded defined benefit pension plans. Under normal circumstances.435 (65.553 553.804 918 (3. based on current rates of pay and lengths of service or the number of “points” mainly determined by those.480. “job title points” which are attributed to the job title of each employee. 2013 Accrued expenses (Accrued pension and severance costs) Accrued pension and severance costs Investments and other assets— Other (Prepaid pension and severance costs) Net amount recognized ¥ 19. the parent company amended its retirement plan to introduce a “point” based retirement benefit plan.807) ¥552. Under the new plan. and “performance points” which are attributed to the annual performance evaluation of each employee.953 9.842 ¥ 25.545 ¥ 552. dollars in millions March 31.361 . to lump-sum indemnities or pension payments.493 27. including retirement at the age limit.387 60.740 641 296 10 (37) 964 (8) (653) 16. 2012 2012 Information regarding Toyota’s defined benefit plans is as follows: Japanese plans Yen in millions March 31.947 50.741 1. 2013 U.594. Under normal circumstances.906 918 (36.566) 1.361 Amounts recognized in the consolidated balance sheets as of March 31. 2013 Change in benefit obligation: Benefit obligation at beginning of year Service cost Interest cost Plan participants’ contributions Plan amendments Net actuarial loss Acquisition and other Benefits paid Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Acquisition and other Employer contributions Plan participants’ contributions Benefits paid Fair value of plan assets at end of year Funded status ¥1.388) 1.893) 927.258 ¥ 504.988) 1.592 $ 5.098 27.090. 2005.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 98 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.

GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [22 of 44] Notes to Consolidated Financial Statements Amounts recognized in accumulated other comprehensive income (loss) as of March 31.997 $341 177 37 (86) — (2) $467 The other amount includes the impact of transition to defined contribution pension plans and consolidation and deconsolidation of certain entities due to changes in ownership interest during the years ended March 31.S.843) $(3.262 $7.3% 1.804 (22. dollars in millions For the year ended March 31.421) 1. respectively.196 153.561 685.090) ¥32.885 million) at March 31.763 165. 2013 Net actuarial loss Prior service costs Net transition obligation Net amount recognized ¥(381. 2012 and 2013.203) 53. 2011 2012 2013 U.352) (8.543) 567 — $(2.029 1.469 639.033) — (173) ¥43.200 million ($130 million).976) 2011 The accumulated benefit obligation for all defined benefit pension plans was ¥1.379.163) 28. 2013 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows: Yen in millions For the years ended March 31.134 31.373 million and ¥1.494.782 (21.366) ¥(87. 2012 and 2013.011 million ($15. Projected benefit obligation Accumulated benefit obligation Fair value of plan assets ¥728.261 27. 2011.241 30. 2012 2013 U.S.734) 15.033) 16.840) ¥(333. dollars in millions March 31.342 1.2% use the rates of compensation increase to determine benefit obligations.619 — ¥74. 2014 are ¥(5.558) (16.S.291 1.342 (632) (16.421) 15.326) 1.S.626 ¥79. 2012 2013 U.360 — ¥(279.462 (8.619 3. accumulated benefit obligation and fair value of plan assets for which the accumulated benefit obligations exceed plan assets are as follows: Yen in millions March 31. dollars in millions March 31.944 ¥64.930 — ¥(323. The estimated prior service costs and net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost during the year ending March 31.000) million ($(53) million) and ¥12. the parent company and certain subsidiaries in Japan employ “point” based retirement benefit plans and do not 2.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 99 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.0% 2. dollars in millions For the year ended March 31.770) 57. 2012 2013 Service cost Interest cost Expected return on plan assets Amortization of prior service costs Recognized net actuarial loss Amortization of net transition obligation Net periodic pension cost ¥61. 2013 Net actuarial gain (loss) Recognized net actuarial loss Prior service costs Amortization of prior service costs Amortization of net transition obligation Other Total recognized in other comprehensive income (loss) ¥(15.299 $641 296 (238) (86) 177 — $790 Discount rate Rate of compensation increase As of March 31.122 16. . 2012 2013 U. The projected benefit obligation.660 (21. 2012 and 2013.S. 2013 Weighted-average assumptions used to determine benefit obligations as of March 31.7% 2.200) (24.970 7.326) 28.529 ¥(11.029 1.945 ¥749. 2012 and 2013 are comprised of the following: Yen in millions March 31.944 10. 2012 and 2013 are as follows: March 31. respectively.757 Components of the net periodic pension cost are as follows: Yen in millions For the years ended March 31.268 ¥57.985 ¥60.626 63 ¥(74.287 (24.

2011. approximately 50% of the plan assets is invested in equity securities.971 81.326 3.309 63.835 91. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [23 of 44] Notes to Consolidated Financial Statements Weighted-average assumptions used to determine net periodic pension cost for the years ended March 31.027 511.993 4.879 184.027 — 176.155 196.065 ¥40. Toyota establishes bench mark return rates for each individual investment. historical results of the returns on plan assets. industry type. To assess performance of the investments.867 — 17. 2012 and 2013 are as follows: 2011 For the years ended March 31.971 184.327 — — 63. currencies and liquidity of each potential investment under consideration to mitigate concentrations of risks such as market risk and foreign currency exchange rate risk.282 — 353.S.3% 2. Toyota’s principal policy for plan asset management.976 .247 ¥1.596 20.746 260. and the rest of them is invested in insurance contracts and other products. 2012 and 2013.535 ¥41.027 158.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 100 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.006 ¥443.035 309.503 ¥443. Toyota’s policy and objective for plan asset management is to maximize returns on plan assets to meet future benefit payment requirements under risks which Toyota considers permissible.594 227. Toyota rebalances its investments in accordance with the policies.933 23. Asset allocations under the plan asset management are determined based on plan asset management policies of each plan which are established to achieve the optimized asset compositions in terms of the long-term overall plan asset management.258 — — 441 441 — 41.5% 2.627 ¥ — 184. 2012 Level 2 Level 3 Discount rate Expected return on plan assets Rate of compensation increase During the years ended March 31.282 63.879 625. 2013 Level 2 Level 3 Total ¥440. 2011. and compares the combined rates with the corresponding actual return rates on each asset category. Prior to making individual investments.3% 2.090.574 ¥927.655 ¥ — — — ¥ 440.923 ¥507. and forecasted market conditions. assumed risks of asset management.933 24.326 63.879 — 203.867 203. Yen in millions March 31.327 — 27. See note 26 to the consolidated financial statements for three levels of input which are used to measure fair value. When actual allocations are not in line with target allocations. 2012 and 2013.596 20. 2012 2013 The following table summarizes the fair value of classes of plan assets as of March 31.971 — 440.5% 2. approximately 30% is invested in debt securities. The expected rate of return on plan assets is determined after considering several applicable factors including.3% 2.527 91. combines these individual bench mark rates based on the asset composition ratios within each asset category.282 158.615 ¥ — 158.3% Level 1 Total Equity securities: Common stocks Commingled funds Debt securities: Government bonds Commingled funds Other Insurance contracts Other Total Excepting equity securities contributed by Toyota. 2.0% 2.669 83.867 — — 81.3% 2. Toyota performs in-depth assessments of corresponding factors including category of products.656 Level 1 Yen in millions March 31.274 ¥ — — — ¥353.327 176.850 81. the composition of plan assets held.789 ¥540.3% 2.545 — — 591 591 — 40. Insurance contracts Other Total Debt securities: Government bonds Commingled funds Other Equity securities: Common stocks Commingled funds ¥353. the parent company and certain subsidiaries in Japan employ “point” based retirement benefit plans and do not use the rates of compensation increase to determine net periodic pension cost.751 83.993 71.

032 — ¥41. information about the valuation techniques used to measure fair value.374 (1. .655 870 2. dollars in millions March 31.065 ¥39. 2012 Debt securities Other Total The following is description of the assets.S.294 971 672 $11.689 1. Common stocks include 69% of Japanese stocks and 31% of foreign stocks as of March 31.748 $ — 1.293 — ¥40.592 Balance at beginning of year Actual return on plan assets Purchases.966 — 2. and 71% of Japanese stocks and 29% of foreign stocks as of March 31. other private placement investment funds and other assets.419 971 42 $5. and are categorized by the ability to redeem investments at the measurement day.453 — ¥40.168 251 2.689 870 — — 870 — 189 $5.421 934 19 — ¥38.976 U. sales and settlements Other Balance at end of year $ 6 0 (1) — $ 5 $426 4 11 — $441 $432 4 10 — $446 Toyota expects to contribute ¥54. and are categorized by the ability to redeem investments at the measurement day. The fair values of commingled funds are measured using the net asset value (“NAV”) provided by the administrator of the fund.656 441 879 — ¥41. Other consists of cash equivalents.535 ¥40. 2012 and 2013: Total Yen in millions For the year ended March 31.094 million ($575 million) to its pension plans in the year ending March 31.966 1.349 941 (170) — ¥39. 2012. 2014. key inputs and significant assumptions: Quoted market prices for identical securities are used to measure fair value of common stocks.656 Yen in millions For the year ended March 31.689 — 4. Government bonds include 35% of Japanese government bonds and 65% of foreign government bonds as of March 31.762) 3.374 ¥38. 2013.168 256 3. 2013. dollars in millions For the year ended March 31. 2011 Debt securities Other Total Level 1 Equity securities: Common stocks Commingled funds Debt securities: Government bonds Commingled funds Other Insurance contracts Other Total $4. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [24 of 44] Notes to Consolidated Financial Statements The following tables summarize the changes in Level 3 plan assets measured at fair value for the years U.065 438 1. 2012.S. 2011. 2013 Level 2 Level 3 ended March 31. Quoted market prices for identical securities are used to measure fair value of government bonds.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 101 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.757) 3.120 (1.120 Yen in millions For the year ended March 31. Balance at beginning of year Actual return on plan assets Purchases. and 44% of Japanese government bonds and 56% of foreign government bonds as of March 31. sales and settlements Other Balance at end of year ¥591 3 (153) — ¥441 ¥40.398 $ — — — — — 5 5 — 441 $446 $ 4. 2013 Debt securities Other Total Balance at beginning of year Actual return on plan assets Purchases. 2013 Debt securities Other Total Balance at beginning of year Actual return on plan assets Purchases. Commingled funds are beneficial interests of collective trust. sales and settlements Other Balance at end of year ¥928 7 (189) — ¥746 ¥37. sales and settlements Other Balance at end of year ¥746 5 (160) — ¥591 ¥38.S. The fair values of insurance contracts are measured using contracted amount with accrued interest.966 6. The fair values of other private placement investment funds are measured using the NAV provided by the administrator of the fund.

780 379.762 183.123 ¥251.600 16. 2012 2013 U.061 (6. 2013 are comprised of the following: Yen in millions March 31. dollars in millions March 31. 2012 and 2013.644 14.523 155.402) ¥(96.774) 467.275 460 .180) 343.497 67.934 43. 2013 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets ¥229.596 213. 2012 2013 U.333) — ¥(77.306 ¥ 1.226 ¥123.S. 2012 2013 U.072) $(1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 102 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.445 66.921 Amounts recognized in accumulated other comprehensive income (loss) as of March 31.369 ¥707.069) (2.774 (31.000 27.S.042) ¥533.S.S. 2013 Change in benefit obligation: Benefit obligation at beginning of year Service cost Interest cost Plan participants’ contributions Plan amendments Net actuarial loss Acquisition and other Benefits paid Benefit obligation at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Acquisition and other Employer contributions Plan participants’ contributions Benefits paid Fair value of plan assets at end of year Funded status ¥367.096 $1.636 Net actuarial loss Prior service costs Net transition obligation Net amount recognized The accumulated benefit obligation for all defined benefit pension plans was ¥385.160 343.125 21.462) ¥153.298 21.953 (335) $1.179) 633. dollars in millions Amounts recognized in the consolidated balance sheets as of March 31. Yen in millions U.000 297.675 2.921) — ¥(98.774 ¥467.348 million and ¥(75. respectively. 2012 and 2013 Yen in millions March 31. dollars in millions March 31. 2012 2013 U.551 million ($5.015 190.965 297 258 3 (0) 415 881 (87) 6.151) (1.138 35.359 60. 2013 Accrued expenses (Accrued pension and severance costs) Accrued pension and severance costs Investments and other assets— Other (Prepaid pension and severance costs) Net amount recognized ¥ 1.816 19. dollars in millions March 31. as appropriate.522 Yen in millions March 31.300 246 (43) 38.S.943 24. which reflect expected future service.673 million) at March 31.921 $4.402 $ 665 689 706 707 721 4.636 (33.986 82. The projected benefit obligation.739 221 108 50.422 52.S.226 46. 2012 and 2013 are comprised of the following: 2014 2015 2016 2017 2018 from 2019 to 2023 Total Foreign plans ¥ 62. dollars in millions March 31. accumulated benefit obligation and fair value of plan assets for which the accumulated benefit obligations exceed plan assets are as follows: Yen in millions March 31.022) (20) — $(1.125 221 (5.277 $2.055) ¥123.508 64.222 13.803 66. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [25 of 44] Notes to Consolidated Financial Statements The following pension benefit payments.239 ¥153.732 3. are expected to be paid: Years ending March 31.034 $7.649 493 640 376 3 (65) 5.354 246 (6.084) 479.621 $ 18 1.907 (8.

To assess performance of the investments. Prior to making individual investments.162) ¥(20. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [26 of 44] Notes to Consolidated Financial Statements Components of the net periodic pension cost are as follows: Yen in millions For the years ended March 31.S. 2014 are ¥300 million ($3 million) and ¥4. Toyota’s policy and objective for plan asset management is to maximize returns on plan assets to meet future benefit payment requirements under risks which Toyota considers permissible. and compares the combined rates with the corresponding actual return rates on each asset category.066 — ¥22.177) 369 2. 2011. 2011 2012 2013 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as follows: Yen in millions For the years ended March 31.0% 4. The estimated prior service costs and net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost during the year ending March 31.299 ¥21. 2012 and 2013 are as follows: For the years ended March 31. currencies and liquidity of each potential investment under consideration to mitigate concentrations of risks such as market risk and foreign currency exchange rate risk.4% 5.670) $(168) 31 0 4 — (87) $(220) The other amount includes the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest and currency translation adjustments during the years ended March 31.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 103 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.5% 4. Asset allocations under the plan asset management are determined based on plan asset management policies of each plan which are established to achieve the optimized asset compositions in terms of the long-term overall plan asset management. 2012 2013 Service cost Interest cost Expected return on plan assets Amortization of prior service costs Recognized net actuarial loss Amortization of net transition obligation Net periodic pension cost ¥21.888 ¥(50. assumed risks of asset management. 2011 Net actuarial loss Recognized net actuarial loss Prior service costs Amortization of prior service costs Amortization of net transition obligation Other Total recognized in other comprehensive income (loss) ¥ (6. 2012 and 2013 are as follows: March 31.0% 4. Toyota’s principal policy for plan asset management.884 43 369 — (8.783 — ¥22. industry type. and forecasted market conditions.5% equity securities. 2013 Weighted-average assumptions used to determine benefit obligations as of March 31.244) 1. approximately 60% of the plan assets is invested in 6. dollars in millions For the year ended March 31.307 ¥27.400 million ($47 million).0% 7.739 (22.884 — ¥32.298 21. historical results of the returns on plan assets.300 (23.864) 351 1.819 ¥(58. combines these individual bench mark rates based on the asset composition ratios within each asset category.S. the composition of plan assets held. Toyota rebalances its investments in accordance with the policies. dollars in millions For the year ended March 31. approximately 30% is invested in debt securities. .720 (21.783 (108) 351 — 5. 2012 and 2013. Excepting equity securities contributed by Toyota.4% 4. respectively.356) ¥(15.S.5% 4.5% 5. 2011.066 142 389 — 30.2% 7. 2013 Discount rate Expected return on plan assets Rate of compensation increase The expected rate of return on plan assets is determined after considering several applicable factors including.943 24.7% 7.319 $297 258 (246) 4 31 — $344 Discount rate Rate of compensation increase 5. When actual allocations are not in line with target allocations. Toyota establishes bench mark return rates for each individual investment.3% 4.164) 389 1.270) 1. 2011 2012 2013 U.6% Weighted-average assumptions used to determine net periodic pension cost for the years ended March 31. 2012 2013 U. Toyota performs indepth assessments of corresponding factors including category of products.466 ¥25.804) 2.288 20. and the rest of them is invested in other products.

084 — — 25.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 104 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. dollars in millions March 31. The fair values of other private placement investment funds are measured using the NAV provided by the administrator of the fund. Level 1 Yen in millions March 31.084 — 21.424 — 56. Government bonds include mainly foreign government bonds as of March 31.218 ¥177.202 6.539 86.199 — — — — — 40.239 — 42.278 72.486 130.611 86. key inputs and significant assumptions: Commingled funds are beneficial interests of collective trust.607 .S.952 501 — — 501 — 327 $2.815 ¥ — — — ¥114. Level 1 Yen in millions March 31.377 — 455 430 885 13 66 $1. 2013 Level 2 Level 3 Total Quoted market prices for identical securities are used to measure fair value of common stocks.607 ¥40.611 47. information about the valuation techniques used to measure fair value.952 920 2.884 The following is description of the assets. other private placement investment funds and other assets.340 — 3.626 — — — — — 31. and are categorized by the ability to redeem investments at the measurement day.062 29. See note 26 to the consolidated financial statements for three levels of input which are used to measure fair value.226 $1.815 74. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [27 of 44] Notes to Consolidated Financial Statements The following table summarizes the fair value of classes of plan assets as of March 31.955 — 114.433 ¥ — 86. Common stocks include mainly foreign stocks as of March 31.202 77. 2012 and 2013.386 13 825 $5.754 40.323 1.952 — 1.739 ¥261.032 ¥343.611 — 183. Other consists of cash equivalents. and are categorized by the ability to redeem investments at the measurement day. 2012 and 2013.062 29. 2013 Level 2 Level 3 Total Level 1 Total Equity securities Common stocks Commingled funds Debt securities Government bonds Commingled funds Other Insurance contracts Other Total Equity securities Common stocks Commingled funds Debt securities Government bonds Commingled funds Other Insurance contracts Other Total ¥114.278 97.083 — — 47.377 ¥31.754 40.955 74.872 501 455 430 1.150 47.184 ¥161.955 25.240 1. 2012 Level 2 Level 3 U. The fair values of commingled funds are measured using the NAV provided by the administrator of the fund. Equity securities Common stocks Commingled funds Debt securities Government bonds Commingled funds Other Insurance contracts Other Total ¥183.S.471 ¥150.539 ¥ — — — ¥183.083 — 30.539 270.223 ¥ — 74.096 — 43.770 25.084 43.083 42.815 189.486 83.564 ¥479.780 $ — 920 920 $ — — — — — — — — 432 $432 $1. 2012 and 2013. Quoted market prices for identical securities are used to measure fair value of government bonds.

514 143 ¥31. interest rate swaps.599 4.472 2.663 305 (2.377 2.377 ¥20. Derivative financial instruments Toyota employs derivative financial instruments. These benefits are provided through various insurance companies. sales and settlements Other Balance at end of year $— — — — $— $334 26 28 44 $432 $334 26 28 44 $432 Toyota expects to contribute ¥8.159 ¥40.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 105 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. the ineffective portion of Toyota’s fair value hedge relationships was not material.514 143 ¥31.243 9. sales and settlements Other Balance at end of year ¥— — — — ¥— ¥20. sales and settlements Other Balance at end of year ¥2. Fair value hedges Toyota enters into interest rate swaps and interest rate currency swap agreements mainly to convert its fixed-rate debt to variable-rate debt. subsidiaries provide certain health care and life insurance benefits to eligible retired employees.535 9.556 91 99 106 113 122 783 $1.477 2014 2015 2016 2017 2018 from 2019 to 2023 Total ¥ 8.759) (209) ¥ — ¥ 9. 2011. 2012 and 2013: Yen in millions For the year ended March 31. dollars in millions For the year ended March 31. Toyota does not use derivatives for speculation or trading.472 2. Balance at beginning of year Actual return on plan assets Purchases.159 ¥40. interest rate currency swap agreements and interest rate options to manage its exposure to fluctuations in interest rates and foreign currency exchange rates.279 8.S.491 73.477 ¥11.S.477 1.377 Yen in millions For the year ended March 31. which reflect expected future service. as appropriate.607 ¥31. Toyota uses interest rate swap agreements in managing interest rate risk exposure. For fair value hedging relationships.065) ¥20.264 9.S. . 2011 Debt securities Other Total The following pension benefit payments.097 974 11. Yen in millions U. sales and settlements Other Balance at end of year ¥— — — — ¥— ¥31. Toyota provides benefits to certain former or inactive employees after employment. 2013 Debt securities Other Total Balance at beginning of year Actual return on plan assets Purchases. including foreign exchange forward contracts.599 4. dollars in millions Balance at beginning of year Actual return on plan assets Purchases.477 1.712 (1.660 11.314 $ Yen in millions For the year ended March 31.688 million ($92 million) to its pension plans in the year ending March 31.760 1.377 2.243 9.955 10.S. The costs of these benefits are recognized over the period the employee provides credited service to Toyota. 2012 and 2013. which involve the exchange of foreign currency principal and interest obligations for each functional currency obligations at agreedupon currency exchange and interest rates.651 ¥123. In addition. are expected to be paid: Years ending March 31.274) ¥20.607 20.471 (1. U. For the years ended March 31. foreign currency options. but before retirement. 2011. Interest rate swap agreements are executed as either an integral part of specific debt transactions or on a portfolio basis. Toyota uses interest rate currency swap agreements to hedge exposure to currency exchange rate fluctuations on principal and interest payments for borrowings denominated in foreign currencies. Notes and loans payable issued in foreign currencies are hedged by concurrently executing interest rate currency swap agreements. 2013 Debt securities Other Total Balance at beginning of year Actual return on plan assets Purchases. 2012 Debt securities Other Total Postretirement benefits other than pensions and postemployment benefits Toyota’s U. the components of each derivative’s gain or loss are included in the assessment of hedge effectiveness. Toyota’s obligations under these arrangements are not material. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [28 of 44] Notes to Consolidated Financial Statements The following tables summarize the changes in Level 3 plan assets measured at fair value for the years ended March 31. health care providers and others. 2014.

219 ¥12.301) $(1.501 $134.926 22.769 39.666 2. The amounts of counterparty netting and cash collateral pledged that partially offset derivative liabilities were ¥(90.689.174 ¥ 68.371 $157. 2012 2013 U.807. Fair value and gains or losses on derivative financial instruments The following table summarizes the fair values of derivative financial instruments as of March 31.569 ¥ 50.363) ¥ 10. 2012 and 2013.983 157. As of March 31. 2012 and 2013: Yen in millions March 31.340 ¥ (2.S. These amounts included in the above table were offset in the consolidated balance sheets.509 million and ¥158.S.623 ¥10. and for which Toyota is unable or has elected not to apply hedge accounting.736) (70) ¥ (21.807 million ($1. 2012 and 2013: Yen in millions March 31. dollars in millions March 31.963) million and ¥(86.293 ¥235.048 ¥14.777 $ (395) (1.696) 78 — $ 78 $ (384) (0) $ (384) $ $ .150 ¥ (37.133) (122.219 — ¥235.477) million ($(919) million).554) (143) ¥ (2.297 ¥ 61.697) $ $ $ $ 114 421 535 (27) (2) (29) Interest rate and currency swap agreements ¥344.625 ¥ (38.340 ¥ (36.731 139. and interest rate options. respectively. the amounts of counterparty netting and cash collateral received that partially offset derivative assets were ¥218. 2013 The following table summarizes the notional amounts of derivative financial instruments as of March 31.623 Foreign exchange forward and option contracts — Total ¥344.338 ¥ (2.501 — $2.060) (303) ¥ (2.338) (120.199. 2012 Undesignated Designated derivative derivative financial financial instruments instruments 2013 Undesignated Designated derivative derivative financial financial instruments instruments U.553) 7.531 ¥ (21.666) ¥(159.004) ¥ 9. respectively.S.166 61.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 106 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.689 million). foreign currency options. to manage its exposure to foreign currency exchange rate fluctuations and interest rate fluctuations from an economic perspective.482 $ 1.420) ¥(159.806) ¥ 27.092) ¥ 295 1. interest rate currency swap agreements.419 ¥ 167.340 — ¥ 7.607.104.822 $2. dollars in millions March 31.642 ¥ 219. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [29 of 44] Notes to Consolidated Financial Statements Undesignated derivative financial instruments Toyota uses foreign exchange forward contracts.627 ¥12.531 — ¥ 9. interest rate swaps. 2013 Undesignated Designated derivative derivative financial financial instruments instruments Derivative financial instruments designated as hedging instruments: Interest rate and currency swap agreements Prepaid expenses and other current assets Investments and other assets—Other Total Other current liabilities Other long-term liabilities Total Undesignated derivative financial instruments: Interest rate and currency swap agreements Prepaid expenses and other current assets Investments and other assets—Other Total Other current liabilities Other long-term liabilities Total Foreign exchange forward and option contracts Prepaid expenses and other current assets Investments and other assets—Other Total Other current liabilities Other long-term liabilities Total ¥ 7.087) (5) ¥ (36.793.774 2.

2011. Additionally.834 (28) (3.815) 53.491 (166) ¥(68.204) 1. dollars in millions For the year ended March 31. Financial instruments involve. Unrealized gains or (losses) on undesignated derivative financial instruments reported in the cost Credit risk related contingent features Toyota enters into International Swaps and Derivatives Association Master Agreements with counterparties. Derivative financial instruments designated as hedging instruments—Fair value hedge: Interest rate and currency swap agreements Cost of financing operations Interest expense Undesignated derivative financial instruments: Interest rate and currency swap agreements Cost of financing operations Foreign exchange gain (loss). Toyota’s risk is limited to the fair value of the instrument. and virtually all foreign currency contracts are denominated in U.082 (1. In the unlikely event the counterparties fail to meet the contractual terms of a foreign . net Foreign exchange forward and option contracts Cost of financing operations Foreign exchange gain (loss). net Foreign exchange forward and option contracts Cost of financing operations Foreign exchange gain (loss).727) million ($(646) million) those reported in foreign exchange gain (loss).617 (4. including financial assets and liabilities which arose in the normal course of business. it does not anticipate significant losses due to the nature of its counterparties.305 million ($184 million). and elements of credit risk in the event a counterparty should default. Other financial instruments Toyota has certain financial instruments. 2013 Gains or Gains or (losses) on (losses) on derivative hedged financial items instruments 21.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 107 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. to varying degrees. dollars. Toyota accounts for these derivative financial instruments as economic hedges with changes in the fair value recorded directly into current period earnings.393) (2. 2011 2012 Gains or Gains or Gains or (losses) on Gains or (losses) on (losses) on derivative (losses) on derivative hedged financial hedged financial items instruments items instruments Undesignated derivative financial instruments are used to manage risks of fluctuations in interest rates to certain borrowing transactions and in foreign currency exchange rates of certain currency receivables and payables. net ¥ 71. the maximum amount of assets to be posted or for which Toyota could be required to settle the contracts is ¥3. euros and other cur- ¥(24. If the ratings of Toyota decline below specified thresholds.693) 110. ¥(5.354) — ¥2.272 ¥ — — — — Yen in millions For the year ended March 31.S. The aggregate fair value amount of derivative financial instruments that contain credit risk related contingent features that are in a net liability position after being offset by cash collateral as of March 31. ¥ 72.741) 166 ¥ (1. 2013 is ¥3. These Master Agreements contain a provision requiring either Toyota or the counterparty to settle the contract or to post assets to the other party in the event of a ratings downgrade below a specified threshold.738 — $(255) — $263 — are executed with creditworthy financial institutions. The aggregate fair value amount of assets that are already posted as cash collateral as of March 31.370 million. Although Toyota may be exposed to losses in the event of nonperformance by counterparties on financial instruments. market risk as instruments are subject to price fluctuations. Toyota believes that the overall credit risk related to its financial instruments is not significant. These financial instruments currency or an interest rate instrument. 2013. 2012 and 2013: Yen in millions For the years ended March 31. 2011. Derivative financial instruments designated as hedging instruments—Fair value hedge: Interest rate and currency swap agreements Cost of financing operations Interest expense Undesignated derivative financial instruments: Interest rate and currency swap agreements Cost of financing operations Foreign exchange gain (loss). international financial institutions.543) million and ¥(7. net were ¥(240) million.239) ¥ — — — — $(257) 17 (49) (524) $ — — — — rencies of major developed countries.S.211 ¥ — — — — ¥35. Cash flows from transactions of derivative financial instruments are included in cash flows from operating activities in the consolidated statements of cash flows.572) (49.934) million and ¥(60. respectively. in general. 2012 and 2013 were ¥93. Toyota does not have a significant exposure to any individual counterparty. 2013 is ¥17. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [30 of 44] Notes to Consolidated Financial Statements The following table summarizes the gains and losses on derivative financial instruments and hedged items reported in the consolidated statements of income for the years ended March 31. net ¥(23.289 million ($35 million). 2013 Gains or Gains or (losses) on (losses) on derivative hedged financial items instruments U.S.289 million ($35 million) as of March 31.965) — ¥24. ¥(14.999 — of financing operations for the years ended March 31.447) million ($(79) million). Counterparties to Toyota’s financial instruments represent.

649) (847.693 (4. dollars in millions March 31.137. All other types of cash and cash equivalents and time deposits are classified in Level 2.297 ¥1.020. Finance receivables.936 408.270 1. As unobservable inputs are utilized.528) — (4.584 4.224.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 108 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.693 — (4.649) (8.301 — — (3. As these valuations utilize unobservable inputs.700 — 11.450. Other receivables Other receivables are short-term receivables.584 4. net Other receivables Short-term borrowings Long-term debt including the current portion $ 18. Cash equivalents and time deposits include negotiable certificate of deposit measured at fair value on a recurring basis.924 80.548) $14.356 106.571) (3.495 4.270 1. expected credit losses and collateral value.273 — — — — — $ 3.412) $ 18. Internal assumptions including prepayment speeds and expected credit losses are used to estimate the timing of cash flows to be paid on the underlying securitized assets. The fair values of the secured loans provided by securitization transactions are estimated based on current market rates and credit spreads for debt with similar maturities.700 — 11.601 (43.528) — (10.482) (106.835.297 106.135 — — (43. are estimated based on the discounted amounts of future cash flows using Toyota’s current borrowing rates for similar liabilities. excluding marketable securities and other securities investments. 2012 Estimated fair value Level 2 Level 3 Cash and cash equivalents and time deposits In the normal course of business.547 (194. net Other receivables Short-term borrowings Long-term debt including the current portion ¥1.200 80.601 — (10.693 432. As these inputs are observable.256. See note 26 to the consolidated financial statements for three levels of input which are used to measure fair value.942) (979. 2013 Estimated fair value Level 2 Level 3 Total Assets (Liabilities): Cash and cash equivalents Time deposits Total finance receivables. and the difference between the carrying amount and the fair value is not material.528) (9.533. Yen in millions March 31.135 121. These receivables are carried at amounts which approximate fair value. this value is used to determine the fair value of the fund investment. Carrying amount Level 1 Total Assets (Liabilities): Cash and cash equivalents Time deposits Total finance receivables.196) (10.936 9.301 9. net Other receivables Short-term borrowings Long-term debt including the current portion ¥ 1. See note 12 to the consolidated financial statements for information regarding the secured loans.936 11.427 — 432.970) ¥ — ¥ 1.138) Carrying amount Level 1 U. affiliated companies and derivative financial instruments.601 (43.276 — — — — — ¥ 234.200 — 80.547 (3.078) (7. including prepayment speeds.879.434. the secured loans are classified in Level 3. and the investment is classified in Level 1.089.S.298) $ — — 121.089.135 118. finance receivables are classified in Level 3. substantially all cash and cash equivalents and time deposits are highly liquid and are carried at amounts which approximate fair value due to its short duration.700 — 106. Short-term borrowings and long-term debt The fair values of short-term borrowings and longterm debt including the current portion.244.223) (8.482) (98. These receivables are classified in Level 3.679.679.549) ¥1.089. Where money market funds produce a daily net asset value in an active market.683.144. net The fair values of finance receivables are estimated by discounting expected cash flows to present value using internal assumptions.137.853) — ¥ 375. except for secured loans provided by securitization transactions using special-purpose entities.547 408. Certain impaired finance receivables are measured at fair value on a nonrecurring basis based on collateral values.941 ¥ — ¥ 1.997 1.444. these debts are classified in Level 2. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [31 of 44] Notes to Consolidated Financial Statements The following table summarizes the estimated fair values of Toyota’s financial instruments.718.450.936 — 432. 2013 Estimated fair value Level 2 Level 3 Total Assets (Liabilities): Cash and cash equivalents Time deposits Total finance receivables.S.434.342.710) .482) (108.301 8.731 408.193) Carrying amount Level 1 Yen in millions March 31.718.

572 million and ¥5.252 (23. 2013 The minimum rental payments required under operating leases relating primarily to land. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [32 of 44] Notes to Consolidated Financial Statements 22.408 $149 343 (254) $238 2014 2015 2016 2017 2018 Thereafter Total minimum future rentals ¥11.665 million).398 7.049 12. respectively. Yen in millions U.S. 2013.S. and as of March 31. In November 2009.590 million ($70 million) have been provided as of March 31. Guarantees Toyota enters into contracts with Toyota dealers to guarantee customers’ payments of their installment payables that arise from installment contracts between customers and Toyota dealers. Yen in millions U.029 million.409 2. Toyota announced a recall in North America for certain models of Toyota vehicles related to sticking and slow-toreturn accelerator pedals. Also in January 2010. Liabilities for guarantees totaling Legal Proceedings Product Recalls From time-to-time. 2013 for the purchase of property.096) ¥17. China and other regions ¥6. Toyota announced a safety campaign in North America for certain models of Toyota and Lexus vehicles related to floor mat entrapment of accelerator pedals.354 21.168 million). 2013 is ¥1.698 (20.849. as and when requested by Toyota dealers. 2013.303 $ 53 38 30 25 22 137 305 (77) 228 (44) $184 Rental expenses under operating leases for the years ended March 31. Toyota is required to execute its guarantee primarily when customers are unable to make required payments. 2014 2015 2016 2017 2018 Thereafter Total minimum lease payments Less—Amount representing interest Present value of net minimum lease payments Less—Current obligations Long-term capital lease obligations ¥ 4. Lease commitments Toyota leases certain assets under capital lease and operating lease arrangements. An analysis of leased assets under capital leases is as follows: Yen in millions March 31.S. dollars in millions March 31.901 million ($2. 2013 are as follows: Years ending March 31.790 2. 2011. Toyota recalled in Europe. Toyota is entitled to recover any amount paid by Toyota from the customers whose original obligations Toyota has guaranteed.644 ¥13. ¥5.493 million ($19.877 $120 100 85 67 57 229 $658 Amortization expenses under capital leases for the years ended March 31.993 3.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 109 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.988 6.299 9.284) ¥23. . ¥91.230 31.709 (7. Toyota issues vehicle recalls and takes other safety measures including safety campaigns relating to its vehicles.491 ¥61. respectively. concentrations and factors that may affect future operations Commitments Commitments outstanding as of March 31. The maximum potential amount of future payments as of March 31.310) 21.052 million and ¥90.265 million ($56 million). plant and equipment and other assets totaled ¥203. range from 1 month to 35 years. Under these guarantee contracts. they are generally shorter than the useful lives of products sold.081 million ($958 million). In January 2010.926 28. buildings and equipment having initial or remaining non-cancelable lease terms in excess of one year at March 31. 2011.399 (4. however. and later expanded it to include additional models.966 million. Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of March 31. 2013 are as follows: Years ending March 31.S. dollars in millions 23. 2012 2013 U.999 32.843) ¥22. dollars in millions Class of property: Building Machinery and equipment Less—Accumulated depreciation ¥12.347 5. 2012 and 2013 were ¥89. Other commitments and contingencies. 2012 and 2013 were ¥5.542 2. Guarantee periods are set to match maturity of installment payments.

the Court in the federal case issued an order denying the plaintiff’s motion for class certification and granting summary judgment in favor of Toyota on the claims of the principal named plaintiff for the cases relating to recalled vehicles.S. including the resolution of the civil litigation filed by the Orange County District Attorney and the state attorneys general’s investigation discussed below. as well as production of documents. Toyota announced a worldwide recall related to the software program that controls the antilock braking system in certain vehicle models including the Prius. Toyota submitted additional documents related to this amendment pursuant to NHTSA’s request. In February 2010. Attorney for the Southern District of New York seeking production of documents related to the recalls of the steering relay rod. which are on-going. In October 2012. Toyota is cooperating with the U. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [33 of 44] Notes to Consolidated Financial Statements certain models of Toyota vehicles related to sticking accelerator pedals. Toyota recorded a $1. These cases have been consolidated into two actions.4 million payment to the U. Toyota announced an amendment to the 2009 floor mat entrapment safety campaign to include model year 2010 RX350 and RX450h. statutory penalties alleging that Toyota sold and marketed defective vehicles in violation of various California statutes. The remaining class actions lawsuits are pending in a consolidated state action in California. Toyota believes that it has meritorious defenses to all of them and will vigorously defend those matters not resolved. Government Investigations In February 2010. Attorney for the Southern District of New York and a voluntary request and subpoena from the SEC. Toyota filed an additional amendment to include model year 2008 through 2011 Land Cruiser.S. cash payments to individuals who allegedly suffered a loss on the sale.1 billion pre-tax charge against earnings to cover the estimated costs of this resolution and other potential recallrelated resolutions. the free installation of a brake override system on the remaining floor mat entrapment safety campaign vehicles and funds for cash payments to customers who do not receive the brake override system. In June 2012. including those for which recalls have been implemented. While Toyota has resolved or is attempting to resolve many of these matters. should be compensated for the alleged defects related to the antilock braking system.S. Treasury. Toyota received a second voluntary request and subpoena from the SEC and a subpoena from the U. The court preliminarily approved the agreement and held the final approval hearing in June 2013. In April 2010. which was not material to Toyota. Class Action and Consolidated Litigation Approximately 200 putative class actions and more than 500 individual product liability personal injury cases have been filed since November 2009 alleging that certain Toyota. lawsuits and government investigations involving Toyota in the United States relating to these recalls and other safety measures. The plaintiffs seek an order requiring Toyota to repair the vehicles and claim that all owners and lessees of vehicles. The settlement provides a customer support program covering certain vehicle parts. one in the United States District Court for the Central District of California and one in the Los Angeles County Superior Court. In January 2013. Toyota was sued in 6 putative shareholder class actions on behalf of investors in Toyota ADRs and common stock. was included in the charge taken in fiscal 2013. In June 2010. Toyota was sued in approximately 20 putative class actions alleging defects in the antilock braking system in various hybrid vehicles that cause the vehicles to fail to stop in a timely manner when driving in certain road conditions. The cases alleged violations of the Securities Exchange Act of 1934 and Japan’s Financial Instruments and Exchange Act and were consolidated into a single action in the United States District Court for the Central District of California. among other things. Lexus and Scion vehicles contain defects that lead to unintended acceleration. In December 2012. The amount of the settlement. The court took the matter under submission and scheduled a hearing in July 2013 for the presentation of additional information.S. Beginning in February 2010. In fiscal 2013. Toyota announced that the court had approved an agreement to resolve the civil action filed by the Orange County District Attorney in California state court seeking. The subpoenas and the voluntary request primarily seek documents related to unintended acceleration and certain financial records. Approximately 10 putative class actions and various product liability personal injury cases pending in state courts were subsequently consolidated into the federal action. From February through March 2010. Toyota announced an agreement with NHTSA to resolve timeliness claims related to the model year 2010 RX350 and RX450h safety campaign under which Toyota agreed to make a $17. The judge dismissed with prejudice the claims based on Japan’s Financial Instruments and Exchange Act. A class certification hearing in connection with the claims related to those vehicles that were not recalled is scheduled in July 2013. The court approved the settlement in March 2013. In December 2012. lease or insuring the residual value of Toyota’s vehicles and funds for safety-related research and education programs. This is a coordinated investigation and has included interviews of Toyota and non-Toyota witnesses. The settlement does not cover product liability personal injury claims in the consolidated federal action or pending in various state courts in the United States. and Toyota reached an agreement to resolve the claims asserted on behalf of purchasers of Toyota’s ADRs for an amount not material to Toyota. . Attorney’s Office and SEC in their investigations.S.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 110 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Toyota received a subpoena from the U. Set forth below is a description of various claims. In April 2013. the approximately 190 putative class actions in federal court as well as the federal product liability personal injury cases and warranty and lemon law cases were consolidated for pretrial proceedings into a single multi-district litigation in the United States District Court for the Central District of California. Toyota and the plaintiffs announced that they had reached an agreement to settle the economic loss claims in the consolidated federal action.

of vehicle weight by 2006. respectively. results of operations or cash flows. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [34 of 44] Notes to Consolidated Financial Statements Toyota also received subpoenas and formal and informal requests from various states’ attorneys general. results of operations or cash flows. results of operations and cash flows. Toyota is continuing to assess the impact of this future legislation on its financial position. 2013. if any. (iii) the legal theory or nature of the claims is unclear. Although Toyota cannot estimate a reasonable range of loss based on currently available information. however. and vehicle and equipment leasing operations to assist in the merchandising of the parent company and its affiliated companies products as well as other products. Beyond the amounts accrued for the recallrelated matters. rising respectively to 85% and 95% by 2015.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 111 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. The Automotive segment designs. Such amount was included in the charge taken in fiscal 2013. The parent company has a concentration of labor supply in employees working under collective bargaining agreements and a substantial portion of these employees are working under the agreement that will expire on December 31. the facts underlying those recalls and customer handling related to those recalls. (ii) manufacturers may not use certain hazardous materials in vehicles to be sold after July 2003. in January 2007. Although Toyota does not expect its compliance with the directive to result in significant cash expenditures. This directive impacts Toyota’s vehicles sold in the European Union and Toyota is introducing vehicles that are in compliance with such measures taken by the member states pursuant to the directive. trucks and related parts and accessories. For the same reasons discussed above relating to the recall-related legal proceedings. under this directive member states must take measures to ensure that car manufacturers. In addition. shall be re-usable and/or recyclable to a minimum of 85% by weight per vehicle and shall be re-usable and/or recoverable to a minimum of 95% by weight per vehicle. 2002 and dismantling and recycling those vehicles. Romania that joined the European Union the United States. 2002. Toyota and the attorneys general resolved these investigations for an amount not material to Toyota. including the Executive Committee for a group of 30 states’ plus one territory’s attorney general. Toyota is unable to estimate a range of reasonably possible loss. the resolution of these matters could have an adverse effect on Toyota’s financial position. would not have a material adverse effect on Toyota’s financial position. Segment data The operating segments reported below are the segments of Toyota for which separate financial information is available and for which operating income/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. beyond the amounts accrued. distributors and other auto-related economic operators establish adequate used vehicle collection and treatment facilities and to ensure that hazardous materials and recyclable parts are removed from vehicles prior to shredding. A law to implement the directive came into effect in all member states including Bulgaria. 24. Other Proceedings Toyota has various other legal actions. The All Other segment includes the design. Beginning January 1. The major portions of Toyota’s operations on a worldwide basis are derived from the Automotive and Financial Services business segments. Toyota has provided for its estimated liability related to covered vehicles in existence as of March 31. the European Union brought into effect a directive that requires member states to promulgate regulations implementing the following: (i) manufacturers shall bear all or a significant part of the costs for taking back end-of-life vehicles put on the market after July 1. particularly regarding manufacturer responsibilities and resultant expenses that may be incurred. Toyota purchases materials that are equivalent to approximately 10% of material costs from a supplier which is an affiliated company. and certain local governmental agencies regarding various recalls. Toyota may be required to revise the accruals for the expected costs. In connection with this settlement. for the other recallrelated matters because (i) many of the proceedings are in evidence gathering stages. manufactures and distributes sedans. 2014. Based on the legislation that has been enacted to date. The Financial Services segment consists primarily of financing. Based upon information currently available to Toyota. and (iv) end-oflife vehicles must meet actual re-use of 80% and re-use as material or energy of 85%. if any. telecommunications and other business. compact cars. this requirement became applicable to vehicles put on the market before July 1. (ii) significant factual issues need to be resolved. (iii) vehicles type-approved and put on the market after December 15. manufacturing and sales of housing. sportutility vehicles. if any. 2008. Toyota also made commitments to continue to conduct certain activities it is already undertaking. Currently. Depending on the legislation that will be enacted subject to other circumstances. Toyota believes that its losses from these matters. with respect to these claims. Toyota is unable to estimate a range of reasonably possible loss. minivans. other governmental proceedings and other claims pending against it.S. (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of other matters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. 2007. including other product liability claims in Environmental Matters and Others In October 2000. there are uncertainties surrounding the implementation of the applicable regulations in different European Union member states. . In February 2013.

388 ¥ — ¥22.320 1.616 ¥ 6.358 $172.567 19.304 Operating income ¥ 944.830 Capital expenditure 796.988 Depreciation expenses 819.347 833.757 25.817.322.064 $ 10.337.964.787) 20.055.089) 18.033.583.887 4.192.558 ¥13.394 ¥1.651 2.205 972.082 Net revenues Sales to external customers Inter-segment sales and transfers Total Operating expenses Operating income Assets Investment in equity method investees Depreciation expenses Capital expenditure $216.356 11.743.853 (545.865 25.617 7.546 1.483.845 1.973 ¥ 358.683 ¥ 306.583.762 ¥ 1. 2012 and 2013.691.191 As of and for the year ended March 31.377 (560.310.587 501.317 Investment in equity method investees 2.378.931 9.379 ¥30.062 ¥ (14.242 ¥ (11.769 $ 570 $13.039) — Total 20.814 ¥13.132) — Total 16. Segment operating results and assets As of and for the year ended March 31.839 683.601 220.324 1.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 112 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.S. 2011: Yen in millions Inter-segment Elimination/ Unallocated Amount Automotive Financial Services All Other As of and for the year ended March 31.179.005.988 ¥35.820 ¥ 53.964.216) ¥ 468.886 1.006 — 1.109 Capital expenditure 937.281 22.688 Operating expenses 17.115 ¥4.058 (13.765 27.067.341.867 991.228 219 12.109 207.066.539 3. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [35 of 44] Notes to Consolidated Financial Statements The following tables present certain information regarding Toyota’s industry segments and operations by geographic areas and overseas revenues by destination as of and for the years ended March 31.968 57.757 1.784.633 — 1.089 $ 3.175.089) — Total 17.280 ¥ 35.704 ¥ 315.045 $140.548 ¥1.224 ¥4.039) 22.026 Operating income ¥ 21.231.172.888 Assets ¥13.161 35.519 3.042 ¥ 535.071.628 531.583 52 3.228.150.701 — 1.750 20.192 Inter-segment sales and transfers 40.741 ¥16.993.532.438 ¥ 42.556) ¥ 355.767 ¥ — ¥18.650.693 5.073 (592.037 474.045 $377.742 1.688 Inter-segment sales and transfers 14. 2011.146.885 1.633 613 — 20 $ $234.689 $ 5.974.584 Depreciation expenses 745. 2012: Yen in millions Inter-segment Elimination/ Unallocated Amount Net revenues Sales to external customers ¥20.100 1.528 22.601 — 234.105.192 Operating expenses 19.970 $ 12. dollars in millions Inter-segment Elimination/ Unallocated Amount All Other Automotive Financial Services Consolidated Automotive Financial Services All Other Consolidated Net revenues Sales to external customers ¥16.914.330 21.040 4.695 1.006.294) (6.161.135 21.873) 18.965 Investment in equity method investees 1.251.168 ¥ 497.396 854.646 11.556 $ 14.129 Depreciation expenses 744.720 3.925 937.653 Inter-segment sales and transfers 30.915 (560.850 1.048.252 (508.168 28.378 ¥ 1.279 Assets ¥11.485 (508.748 ¥ 1.990 .525.474.627 Assets ¥12.102.972.818.680 429 217.173.461 (592.339 10. 2013: Yen in millions Inter-segment Elimination/ Unallocated Amount Consolidated Automotive Financial Services All Other Consolidated Net revenues Sales to external customers ¥17.930 74 241 311 — (6.S.132) 18.064) 1.880 336.653 Operating expenses 16.286 1.045 26.338 20.573 Capital expenditure 691.170.753 ¥ 1.261.320.409 Operating income ¥ 85.447 9.365.925 6.670 1.064.993.075 330.538 ¥ — ¥18.845 (598.737 ¥ 547.294) (6.720 ¥3.340 16.366) $ 72 $50.067 298.064.994.578 10.576) 18.010 (496.761.100.419.152 U.326 29.473 ¥1.863 793.494 ¥29.166 Investment in equity method investees 1.877.012.

993.965 — 6.268 20.846 $ 1.483.683 6. .987 ¥ 160.642 5.018 6.056.557 ¥ 312.855 ¥ — ¥18.081 1. Such corporate assets were ¥4. Unallocated amounts included in assets represent assets held for corporate purposes.321 130. 2013: Yen in millions Inter-segment Elimination/ Unallocated Amount Japan North America Japan Consolidated Europe Asia Other Consolidated Europe Asia Other Net revenues Sales to external customers ¥ 7.077.630 $ 3.276.285.538 1.981.148 ¥1.064.814 ¥2.910. 2012 and 2013.231 305.423.055 ¥3.167.653 (4.109 52.348.309. dollars in millions Inter-segment Elimination/ Unallocated Amount As of and for the year ended March 31.851.197.633) ¥3.586.365 $ — (59.910.993.599.818.169 ¥ — ¥18.296.947) 18.197 ¥1.760.462 Assets ¥12.374.604 80.910. which mainly consist of cash and cash equivalents and marketable securities.976.070 ¥3.633 Operating income (loss) ¥ (362.627 ¥3.968.173 170. 2011.970 million ($59.224.821.644.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 113 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.346 2.985 2.067 288.805) 18.240 66.538 Total 11.604.129 ¥2.335 ¥ 221. as of March 31.924.348 Inter-segment sales and transfers 3. Oceania and Africa.977 ¥2.477 Operating income (loss) ¥ (207.790 ¥2.425 2.744 ¥2.244 148.265 1.061.515 107. In measuring the reportable segments’ income or losses.484 ¥ 256. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [36 of 44] Notes to Consolidated Financial Statements Geographic Information As of and for the year ended March 31.149 21.334.019.456 ¥ 6.123.847 “Other” consists of Central and South America.374.166 — 6.959 ¥1.312 412.507. operating income consists of revenue less operating expenses.999 $35.648.142) ¥ 355.192 — 22.946 1.809.360 $125.116 1.034.433.116.000 Total 12.973 ¥30.565.500 2.917.065 $43.376 — ¥22.239 Net revenues Sales to external customers ¥ 6.422 3.089.304 ¥1.353.281 72.731 ¥11.521 ¥ 133.092 2.040) ¥ 186.809 22.327 Total 10.299 850 22.305.629 42.601 220.601 — 234.821 ¥2.841) — (4.320.986.672 million.947) — (4.128 $130.849 217.423.929. There are no any individually material countries with respect to revenues.365 ¥29.274 $20.384 3.694 1.586.259 million and ¥5.693.361 ¥ 108. Revenues are attributed to geographies based on the country location of the parent company or the˛subsidiary that transacted the sale with the external customer.640. 2012: Yen in millions Inter-segment Elimination/ Unallocated Amount Japan North America Europe Asia Other Consolidated Net revenues Consolidated Japan North America Europe Asia Other Net revenues Sales to external customers ¥ 7.532 263.332 ¥1.026 ¥ (7.425 3.327.S.841) 18.931 1.864 ¥9.422 168.503 Assets ¥11.288 ¥4.175 1.809 Inter-segment sales and transfers 4.960. Transfers between industries or geographic segments are made at amounts which Toyota’s management believes approximate arm’s-length transactions.279 ¥2.586) (59.873.304 ¥ 1.044.064.105) (5.396) ¥ 339.633.841.888 ¥35.235.113 Inter-segment sales and transfers 4.232 Long-lived assets 2.749.613.045 $377.385.918 ¥ 468.653 (4.164 410.472) ¥ (13.920.416 61.583.154 3.996 $21.441) $ (145) $34.534 3.517 ¥ — (5.650.804 ¥4.112 236.256 Long-lived assets 2.499 344.058.317 101.583.423 ¥9. respectively.144 6.192 20.193 $ 6.591.105) (5.379 259.580 1.319 590.319 4.113 Operating expenses 12.651 Operating income ¥ 576.422 $27.960.586) (59.429.493 380. 2011: Yen in millions Inter-segment Elimination/ Unallocated Amount North America As of and for the year ended March 31.747 31.042 2.847 4.743.244.094.460 $ 2.616.611.476 4. and long-lived assets included in other foreign countries.380 Sales to external customers Inter-segment sales and transfers Total Operating expenses Operating income Assets Long-lived assets $ 84.150 ¥ 17.409 ¥ 4.604.981.S.828 Long-lived assets 3.199.349 ¥ 13.590.906 27.160 U.627 ¥2.167.317 6.009.475 46.929 ¥5.408 76.409 Assets ¥12.931.556 $ 14.416.542 million).993.796 ¥1.688 (4.147 $ 65.284.651.359 4.228.886 Operating expenses 11. ¥4.246 5.274 3.083.421 ¥ 376.525.062.003.138.759) 18.820 64.966.497 1.925 ¥ 26.136 Operating expenses 11.629 326.817 4.688 (4.283 — $234.751.562 116.293.459 1.212 136.175.138.021 ¥1.471 ¥2.868 $ 281 $23.

S.284.835 7.932 3.036 6.741.658.384 3.634 1.216 5.115) ¥35.894 41.804 1. plant and equipment Total Financial Services Businesses assets Eliminations Total assets ¥ 1.897 685. excluding customers in Japan.967.278 1. net Investments and other assets Property. dollars in millions For the year ended March 31.817.109.444 4.114 ¥4.196.204.548 (488.104.114.611 5. 2011 2012 2013 U.664 13.882 16.231.118 3.565 54.464. plant and equipment Total Non-Financial Services Businesses assets Financial Services Businesses Current assets Cash and cash equivalents Marketable securities Finance receivables.626 2.800 6.317 6. Non-Financial Services Businesses Current assets Cash and cash equivalents Marketable securities Trade accounts and notes receivable. less allowance for doubtful accounts Inventories Prepaid expenses and other current assets Total current assets Investments and other assets Property.033.434 79.107. 2013 2012 Balance sheets Yen in millions March 31.724. dollars in millions March 31. 2013 U.843 73.516 5.409 1.943.498) $377. Toyota discloses this information in order to provide financial statements users with valuable information.S.540.413 211.124 7.218.238.929.597.660 693.831 1.025 2.242 16. 2013 North America Europe Asia Other ¥5.636 1.715.462.349 50.625 18.766 515.472 1. In addition to the disclosure requirements under U.392 3.473 (611.510.906 1.806 21.959 $ 11.214 41.483.476 22.447 2.830 5.012 6.888 241.280.398.715.940. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [37 of 44] Notes to Consolidated Financial Statements Overseas Revenues by destination The following information shows revenues that are attributed to countries based on location of customers.172.S.200 20. Oceania.S.775 12.622.790. etc.564 165.514 7.767 4.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 114 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.965 610.105 ¥ 1.369 70.281 * Assets in the non-financial services include unallocated corporate assets.495 2.117.650.944 3.357 19.414 7. Yen in millions For the years ended March 31. . GAAP.462 304.716 17.862.775 $72.662.103.602.015.175 3.784 “Other” consists of Central and South America.453 1. Certain financial statements data on non-financial services and financial services businesses The financial data below presents separately Toyota’s non-financial services and financial services businesses.901.793.688) ¥30.583 (6.154 1.383 ¥6.434 172. net Prepaid expenses and other current assets Total current assets Noncurrent finance receivables.377 4.986 81. Africa and the Middle East.196 574.031.

381 79.954 10.861. general and administrative Total costs and expenses Operating income Other income (expense).699 2.190.280 1.737.973 22.752 20.820 (970) 314.012.344 1.544 854.S.297 152 962.759 120.735.934.403 (6.870 6.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 115 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.448 (54.686 191.360 969.358 (10) 3.316 1.324 615.393 1.634 61. 2012 2013 U.269) 187.856 ¥35.253 1.961) 8.120 12.638 2.175.119 125 7.251) 103.325. dollars in millions March 31.526 27. net Income before income taxes and equity in earnings of affiliated companies Provision for income taxes Equity in earnings of affiliated companies Net income Less: Net income attributable to noncontrolling interests Net income attributable to Toyota Motor Corporation—Non-Financial Services Businesses Financial Services Businesses Net revenues Costs and expenses Cost of revenues Selling.411 503.558 196.322 (3.734 2.359) $222.021 10.009.725 1. net Income before income taxes and equity in earnings of affiliated companies Provision for income taxes Equity in earnings of affiliated companies Net income Less: Net income attributable to noncontrolling interests Net income attributable to Toyota Motor Corporation—Financial Services Businesses Eliminations Net income attributable to Toyota Motor Corporation ¥17.594 3.719 5.234.071 (2.205 636.157 182. 2011 2012 2013 U.251 22. dollars in millions For the year ended March 31.428 754.181) ¥20.935 131.938 14.935 1.679) 301.434 536.348 1.083.055) ¥17.274.238 69.521 (488.563 178.582 2.837 1.025 7.796.174 88.886 306.441 2. 2013 Non-Financial Services Businesses Current liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued expenses Income taxes payable Other current liabilities Total current liabilities Long-term liabilities Long-term debt Accrued pension and severance costs Other long-term liabilities Total long-term liabilities Total Non-Financial Services Businesses liabilities Financial Services Businesses Current liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued expenses Income taxes payable Other current liabilities Total current liabilities Long-term liabilities Long-term debt Accrued pension and severance costs Other long-term liabilities Total long-term liabilities Total Financial Services Businesses liabilities Eliminations Total liabilities Total Toyota Motor Corporation shareholders’ equity Noncontrolling interests Total shareholders’ equity Total liabilities and shareholders’ equity ¥ 715.461 12.629 134.551 833.457 73.252 6.071 17.478 ¥30.676.821 12.472 129.191 (2.229 241.245.741 1.291 5.258 (1.033 1.163 2.966 5.896 521.373 2.073 (119.102 140.245 1.581 4.559 ¥ 198.112 8.261 516.192.708) 19.710.840 206.446 9.723. general and administrative Total costs and expenses Operating income Other income (expense).566) 763.550.986.860 6.670 633.538.809 $377.634 18.674 ¥ 576.S.230 .525) 241.487 10.643 135.612.849 11.089.019 339.438 (4.795 214.148.089 3.317 41.095 96. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [38 of 44] Notes to Consolidated Financial Statements Yen in millions March 31.092.625 (44) 283.166 6.389 (1.034.925 358.826.456 8.702 80.997 19.078 883.323 793.281) ¥ 408.689) 22.256 1.978 1.801 6.355 9.217 11.534.473.S.490 123.447 6.108 2 $ 10.337 7.191 520.544 186.331 632.092.281 Non-Financial Services Businesses Net revenues Costs and expenses Cost of revenues Selling.812 117.520.803. 2013 Statements of income Yen in millions For the years ended March 31.441 200.722 2.132 1.349 359.483.100.249 37.850 116.982 1.875 90.202 211.714 1.129 (21) 223.619 66.720 76.499 12.668 2.234 15 2.943.946 157.798 (613.650.872 15.544 8.732 849 11.655 105.352 $ 6.928.247 10.186.965 3.772.374 197.223 230.211 531.218.752 724.173 141.685 185.159 (82.035 624.014 178.060 26.999 17.899.709.986 15.170.988 400 1.060.850 315.310 23.263 8.306 221.584.070 700.126 163 6.635 1.555.094 787 226.040.555 12.218 436.066.901 15.183 ¥ 179.876.

379.624 (607.173.960) (38.308) 292.831 (82.623 16.214 7.029) 214.605 (2.448 844.757 3.944 ¥ 465.940 (629.544) 182.076 7.334 1.229) 591.080.013 — (12.785) 8.931.710 (215.634) 2.268) 1.785) (37.159 769.489.572) 311.156 (299) 177.553 ¥ 226.915 (17.825 (147) 209.394.156 ¥ 574.843 15.884) (141.448 53.862) (86.619 — — 751.438.479 (877.716.646) 238.058 (9.306.846) (205.347) (55.545) 36.751 (8.856.588 (2.342 486.200 (14.553 ¥1.423. 2011 Non-Financial Financial Services Businesses Services Businesses Yen in millions For the year ended March 31.915 85.712) 2.792) 13.867) 36. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [39 of 44] Notes to Consolidated Financial Statements Statements of cash flows Yen in millions For the year ended March 31.632) 162.116.421.972 (1.887.359 — — (713.016) 487.499) 3.072 (156. 2012 Non-Financial Financial Services Services Businesses Businesses Consolidated Consolidated Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation Provision for doubtful accounts and credit losses Pension and severance costs.658) 2.061.231 526.175.617) 434.258) (214.073 5.636 ¥ 182. and other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year ¥ 241.260 (141.709 ¥1.995 (358.395 (197.916 1.135) 93.344) 2.831 6. net Deferred income taxes Equity in earnings of affiliated companies Changes in operating assets and liabilities.564 .559) 50.807 (2.203 20.306) 600 468.435 (8.414) 36.867.865) 51.302) (78.020) 501.453 138 — 103.333.746 ¥2.120) 15.063.140 (23.003. and other Net cash used in investing activities Cash flows from financing activities Proceeds from issuance of long-term debt Payments of long-term debt Increase (decrease) in short-term borrowings Dividends paid Purchase of common stock.004.633 431.689 (2.S.054) 36.963 1.302 1.618 (299) 394.917) 1.436 (2.024) (983.803 (294.080.812 (147) 213.806 (24.318 (309.455.416) 556.402 2.120) (28.708 1.957 (916.191 298.067.024.670) (673.300.009 (8.338.867) (135.410 33.821 ¥1.679.695 (4.485 1.573 4.002 — — (135.061. net of cash acquired Changes in investments and other assets.785) (37.772) 2.538 — 18.651 (156.068 (50.301 80 — 89.261) 13.035 (787) (106.199 (1.069) 253.528 53. and other Net cash provided by operating activities Cash flows from investing activities Additions to finance receivables Collection of and proceeds from sales of finance receivables Additions to fixed assets excluding equipment leased to others Additions to equipment leased to others Proceeds from sales of fixed assets excluding equipment leased to others Proceeds from sales of equipment leased to others Purchases of marketable securities and security investments Proceeds from sales of and maturity of marketable securities and security investments Payment for additional investments in affiliated companies.865 2.104.227.157) (73.701) 93.448) (211.442.509) 2.004) (36.617) (551.896) 2.452.131 ¥ 368.592) 780.206) (550.139) 122.323.179) 39.156 (13.700 (4.742 17.322 330.466.608.327 (127.807) 3.780 1.830 9.093) (195.977 — — (621.378 1.709 ¥ 186. less payments Losses on disposal of fixed assets Unrealized losses on available-for-sale securities.565.934.120) (28.537) (808.448) (355.711 33.152 (2.981) (19.326) (1.303 (1.925 ¥ 780.792) (196.491) 430 410.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 116 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.248) 8.939) (401.300.931 967.168.313 (3.865.862) 629.165) (76.710 (723.

877.672 (36.782) (190.928) 9.441 (3.832 (157) (10.495 .324 574.937 (3. and other Net cash provided by operating activities Cash flows from investing activities Additions to finance receivables Collection of and proceeds from sales of finance receivables Additions to fixed assets excluding equipment leased to others Additions to equipment leased to others Proceeds from sales of fixed assets excluding equipment leased to others Proceeds from sales of equipment leased to others Purchases of marketable securities and security investments Proceeds from sales of and maturity of marketable securities and security investments Payment for additional investments in affiliated companies.669.070) 38.073 768.848) (1.849 (25.466 416 17.412.943 (4.524.415.264 — — (839.764) 773 30 11. net of cash acquired Changes in investments and other assets.731) (2.104 160.093 $ 11.973 2.085 216 — 70.312) 3.129 3.520 11.114 (328.854 $ 18.678) 15.083.451.008 (231.931 (28.226 — — (8.980.758.888 (179.221 2.773 1.396 (3.191.514) 32.098) 477.020) (458) 5.367 (20.528 25.821) 2.154) 72.389 8.784.078 — (828) (18.564 ¥ 610.139 (2. dollars in millions For the year ended March 31.242 137.904) 417 5.130 — — 11.089.446) 5.571 (2.295 693 386 6.098) (542.200 ¥ 1.519) 292. net Deferred income taxes Equity in earnings of affiliated companies Changes in operating assets and liabilities.104.104 89.929) (1.037) 182.102.718.805) (990.027.695) 32.379) 96.525 — (77.205) 1.423) 2.681 (14.380) (162.258 336.372) 405 729 (31.589) 4.136) 201.270 (16.775 $ 2.066 667.441) 32.701 (2. 2013 Non-Financial Financial Services Businesses Services Businesses U.788 (9.238) 3.074 1. 2013 Non-Financial Financial Services Services Businesses Businesses Consolidated Consolidated Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation Provision for doubtful accounts and credit losses Pension and severance costs.024 21.636 ¥1.216 3.743 (1. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [40 of 44] Notes to Consolidated Financial Statements Yen in millions For the year ended March 31.S.206 (1.750 291 (217) 343 22 1.996.492) (1.561) (1.602) 383.700 2.682.622 3.532) 12 4.334 65.078) 472.188) 33.115 26.051 68.484 (2.409 ¥ 200.379 172 36 (32.514 1.429) 32.283) 28. less payments Losses on disposal of fixed assets Unrealized losses on available-for-sale securities.856 (854.261 (190.077 ¥ 1.097 1.105.745 (23.062.004.461) 3.851 39.518) 2.285.107.086) (11.119.316 (10.109 27.870 (431.064 (106.S.140 464.301 172 183 (16.297 $ 9.566) 388.223 (2.684) 4.020) (458) (5.834 (230.745 $11.578 272 33 2 — 753 (15) 341 7.521) 1.679. and other Net cash used in investing activities Cash flows from financing activities Proceeds from issuance of long-term debt Payments of long-term debt Increase (decrease) in short-term borrowings Dividends paid Purchase of common stock.008) (43.566 16.591) 39.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 117 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.109 $ 6.482 1.172 19 (250) 341 22 955 (2.694) 24.008) (43.005 2.091 16.581 1.216 17. and other Net cash provided (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year ¥ 883.151 36.454) 167.191 533.756) (129.416 — — 1.

909 246 3.21 ¥ 90. inputs other than quoted prices that are observable for the assets or liabilities Level 3: Unobservable inputs for assets or liabilities $10.530 thousand shares and 8. dollars in millions Toyota Motor Corporation Shareholders’ equity U. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [41 of 44] Notes to Consolidated Financial Statements 25.403 thousand shares. In addition to the disclosure requirements under U. respectively.148. .S.S.230 (0) $3.183 (0) ¥408.143.S.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 118 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. Toyota classifies fair value into three levels of input as follows which are used to measure it. 2011.166.23 Stock options that were not included in the computation of diluted net income attributable to Toyota Motor Corporation per share for the years ended March 31.51 3.167.167. 2011.S.78 ¥130. 2012 Basic net income attributable to Toyota Motor Corporation per common share Effect of dilutive securities Assumed exercise of dilutive stock options Diluted net income attributable to Toyota Motor Corporation per common share For the year ended March 31.230 $3.S. 2012 and 2013. excluding treasury stock at the end of the corresponding period.16 26.143. Toyota Motor Corporation shareholders’ equity per share amounts are calculated by dividing Toyota Motor Corporation shareholders’ equities’ amount at the end of each period by the number of shares issued and outstanding. Fair value measurements In accordance with U.166 $40. dollars Net income Net income attributable to Net income attributable to Toyota Motor attributable to Toyota Motor Corporation Toyota Motor Corporation per share Corporation per share U. 12.470 ¥ 90.183 3.82 ¥303.915 ¥130.166.035 3.23 ¥962. 2012 and 2013 are as follows: Thousands of Yen in millions shares Net income attributable to Toyota Motor Corporation Yen U. quoted prices for identical or similar ¥283. 2013 ¥10. Per share amounts Reconciliations of the differences between basic and diluted net income attributable to Toyota Motor Corporation per share for the years ended March 31. Level 1: Quoted prices in active markets for identical assets or liabilities Level 2: Quoted prices for similar assets or liabilities in active markets.20 assets or liabilities in markets that are not active. dollars in millions The following table shows Toyota Motor Corporation shareholders’ equity per share as of March 31.429 ¥3. 2011 Basic net income attributable to Toyota Motor Corporation per common share Effect of dilutive securities Assumed exercise of dilutive stock options Diluted net income attributable to Toyota Motor Corporation per common share For the year ended March 31.163 (32) ¥962. GAAP. 2012 and 2013 were 12.78 $10.17 As of March 31.131 3.470 0 3. because the options’ exercise prices were greater than the average market price per common share during the period. Toyota discloses the information below in order to provide financial statements users with valuable information.S.559 (3) ¥283.135.810 3. 2012 As of March 31. dollars Toyota Motor Corporation Shareholders’ equity per share Weightedaverage shares For the year ended March 31. GAAP. 2013 Basic net income attributable to Toyota Motor Corporation per common share Effect of dilutive securities Assumed exercise of dilutive stock options Diluted net income attributable to Toyota Motor Corporation per common share ¥408.135.30 $129.682 thousand shares.550.155 ¥303.331.881 34 3.261 12.835.556 3. Yen in millions Toyota Motor Corporation Shareholders’ equity Thousands of shares Shares issued and outstanding at the end of the year (excluding treasury stock) Yen Toyota Motor Corporation Shareholders’ equity per share U.S.

249 ¥(2.934 — 428.898 529 — $57.737 289.000 ¥ — — ¥ 708.229.385 50. dollars in millions March 31.146 1.183 49.629 ¥ ¥ — — 792.731 — ¥5.449.000 3.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 119 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.828 ¥7.386) ¥ (196.019 ¥ (196.S.401.972 ¥ (1.898 6.939 ¥ ¥ — — 237.047 2.264 — ¥ 375.034.553.955 217.964 $ (2.987 ¥ (180. 2013 Level 2 Level 3 Total Assets: Cash equivalents Time deposits Marketable securities and other securities investments Public and corporate bonds Common stocks Other Derivative financial instruments Total Liabilities: Derivative financial instruments Total ¥ 245. 2013 Level 2 Level 3 Total Level 1 Total Assets: Cash equivalents Time deposits Marketable securities and other securities investments Public and corporate bonds Common stocks Other Derivative financial instruments Total Liabilities: Derivative financial instruments Total ¥ 485.342) ¥ (198.565 ¥ 9.S.109) Level 1 Yen in millions March 31.931 ¥1.889 — — 7.088) 73 — — 75 $148 $ (21) $ (21) 48.315 $20.963.175 ¥ (183.572 3.342) .500 1.956) ¥ (1.997 612 $ — — $ 6.183 568. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [42 of 44] Notes to Consolidated Financial Statements The following table summarizes the fair values of the assets and liabilities measured at fair value on a recurring basis at March 31.173) ¥ (183.826) ¥(2.173) Assets: Cash equivalents Time deposits Marketable securities and other securities investments Public and corporate bonds Common stocks Other Derivative financial instruments Total Liabilities: Derivative financial instruments Total $ 2.872 $ (2.205 57. 2012 and 2013.496 ¥6.347) 1.430 — 5.189.451 1.119 — ¥ 223.745 ¥1.504 50.390 $78.956) 4.882 1.826) 3.518 2.608 — $ 3.386) 6.319 40.605 612 39.412 14.806 — 518.319 469.944 $ $ — — 8.941 57.909 14.389.572 ¥ — — ¥ 621.088) $ (2.753.401.034.083 ¥13.686 224.619 — ¥4.109) $ (2.356 297.949.620 ¥ (198.426.347) ¥ (180.684 — — 7. 2012 Level 2 Level 3 Level 1 U.629. Transfers between levels of the fair value are recognized at the end of their respective reporting periods: Yen in millions March 31.

These assets are classified in Level 2.338 — (8. and other market data.832) (3. and 51% of U. European and other bonds as of March 31.739 ¥6. In other certain cases when market data is not available. and 49% of Japanese bonds. using such as credit default probabilities.S.476 — — (3.794 6.794 6.191) (35. common stocks and other investments. issuances and settlements Other Balance at end of year ¥13.591) ¥ 6. Marketable securities and other securities investments Marketable securities and other securities investments include public and corporate bonds. Balance at beginning of year Total gains (losses) Included in earnings Included in other comprehensive income (loss) Purchases and issuances Settlements Other Balance at end of year Yen in millions For the year ended March 31.S. 2011 Marketable securities and Derivative other securities financial investments instruments Total Balance at beginning of year Total gains (losses) Included in earnings Included in other comprehensive income (loss) Purchases. 2012 and 2013: Yen in millions For the year ended March 31. information about the valuation techniques used to measure fair value. Toyota uses primarily quoted market prices for identical assets to measure fair value of these securities.476 — — (3. 2013. and 40% of U.699) ¥4..015) ¥6.. These derivative financial instruments are classified in Level 3.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 120 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U.381) (22.892 31. Toyota estimates the fair value of derivative financial instruments using industry-standard valuation models that require observable inputs including interest rates and foreign exchange rates. Public and corporate bonds include primarily government bonds and represent 60% of Japanese bonds. 2011.771 779 (9. key inputs to the fair value measurement include quotes from counterparties. 2012 Marketable securities and Derivative other securities financial investments instruments Total respectively. key inputs and significant assumption: Cash equivalents and time deposits Cash equivalents include money market funds and other investments with original maturities of three months or less.055) ¥ 6.794 ¥ — ¥6. “Other” includes primarily investment trusts. Toyota uses quoted market prices for similar assets or quoted non-active market prices for identical assets to measure fair value of these securities.684 ¥1. and the contractual terms. 2012 and 2013. Time deposits include negotiable certificate of deposit with original maturities over three months. Derivative financial instruments See note 20 to the consolidated financial statements about derivative financial instruments. Listed stocks on the Japanese stock markets represent 83% and 85% of common stocks as of March 31. Generally. The usage of these models does not require significant judgment to be applied.794 ¥19. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [43 of 44] Notes to Consolidated Financial Statements The following is description of the assets and liabilities measured at fair value.536) ¥ — ¥ 5. Toyota’s derivative fair value measurements consider assumptions about counterparty and our own non-performance risk.026 31.684 . 2012. These derivative financial instruments are classified in Level 2. Toyota assesses the reasonableness of changes of the quotes using observable market data. These are measured at fair value using observable interest rates in the market.134 433 779 (810) (13.S. European and other bonds as of March 31. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the periods ended March 31.423 — — — — 1. Cash equivalents classified in Level 2 include primarily negotiable certificate of deposit with original maturities of three months or less.832) (4. These are measured at fair value using observable interest rates in the market.

2012. resulting in gains of ¥1.739 2.118 — — (2. See note 21 to the consolidated financial statements for the fair value measurement. Balance at beginning of year Total gains (losses) Included in earnings Included in other comprehensive income (loss) Purchases and issuances Settlements Other Balance at end of year ¥1.S. 2011. respectively.974 million ($351 million) based on the collateral value.906) 3.563) 3.736 million and ¥978 million ($10 million).684 24 58 3.165) million. 2013. These Level 3 financial assets are not significant. the Level 3 assets and liabilities measured at fair value on a recurring basis are not significant. certain derivative financial instruments transferred into Level 2 due to be measured at observable inputs of ¥(21.343) 613 ¥5.607 (1.142 58 3. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements [44 of 44] Notes to Consolidated Financial Statements Yen in millions For the year ended March 31. 2012 and 2013.016 U. This fair value measurement on a nonrecurring basis is classified in Level 3. net” and “Cost of financing operations” in the accompanying consolidated statements of income.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 121 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. 2013.127 ¥ 6. During the years ended March 31. and includes the currency translation adjustments for the year ended March 31. Certain assets and liabilities are measured at fair value on a nonrecurring basis.607 (3.889 ¥4. The other amount includes consolidated retained interests in securitized financial receivables of ¥(13. As of March 31. derivative financial instruments are presented net of assets and liabilities.692 ¥12.056 million and ¥32. Toyota measured certain finance receivables at fair value of ¥32.413) million and the impact of currency translation adjustments for the year ended March 31. 2013 Marketable Derivative securities and other securities financial investments instruments Total “Included in earnings” in marketable securities and other securities investments and derivative financial instruments are included in “Other income (loss). and includes the impacts of level transfers and currency translation adjustments for the year ended March 31.423 2. In the reconciliation table above.079 ¥6.S. dollars in millions For the year ended March 31. 2013 Marketable securities and Derivative other securities financial investments instruments Total Balance at beginning of year Total gains (losses) Included in earnings Included in other comprehensive income (loss) Purchases and issuances Settlements Other Balance at end of year $18 0 1 38 (16) 32 $73 $50 22 — — (25) 7 $54 $ 68 22 1 38 (41) 39 $127 .

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U. use. GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Management’s Annual Report on Internal Control over Financial Reporting  Toyota’s management is responsible for Because of its inherent limitations. 2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U. an independent registered public accounting firm that audited the consolidated financial statements included in this report. 2013. accurately and fairly reflect the transactions and dispositions of Toyota’s assets. . projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions. or that the degree of compliance with the policies or procedures may deteriorate. Based on this evaluation.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 122 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. PricewaterhouseCoopers Aarata. Toyota’s management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in “Internal Control — Integrated Framework (1992)” issued by the Committee of Sponsoring Organizations of the Treadway Commission.S. Also. has also audited the effectiveness of Toyota’s internal control over financial reporting as of March 31. establishing and maintaining effective internal control over financial reporting. internal control over financial reporting may not prevent or detect misstatements. 2013. as stated in its report included herein. and that Toyota’s receipts and expenditures are being made only in accordance with authorizations of Toyota’s management and directors. GAAP. Toyota’s internal control over financial reporting includes those policies and procedures that: 1) pertain to the maintenance of records that in reasonable detail. management concluded that Toyota’s internal control over financial reporting was effective as of March 31. or disposition of Toyota’s assets that could have a material effect on the financial statements. GAAP. and 3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition.S.S.

2013 in conformity with accounting principles generally accepted in the United States of America. projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions. We believe that our audits provide a reasonable basis for our opinions. 2013. in all material respects. . Because of its inherent limitations. The Company's management is responsible for these financial statements. shareholders’ equity and cash flows present fairly. included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. effective internal control over financial reporting as of March 31. Our responsibility is to express opinions on these financial statements and on the Company's internal control over financial reporting based on our integrated audits. (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles.Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Our audits of the financial statements included examining. internal control over financial reporting may not prevent or detect misstatements. and evaluating the overall financial statement presentation. Our audits also included performing such other procedures as we considered necessary in the circumstances. the accompanying consolidated balance sheets and the related consolidated statements of income. and the results of their operations and their cash flows for each of the three years in the period ended March 31. and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. evidence supporting the amounts and disclosures in the financial statements. the Company maintained. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects.S. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that. 2012 and 2013. the financial position of Toyota Motor Corporation and its subsidiaries at March 31. Japan June 24.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 123 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Consolidated Financial Statements Financial Section Investor Information Selected Financial Summary (U. in reasonable detail. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. assessing the accounting principles used and significant estimates made by management. and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized Nagoya. 2013 acquisition. and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company. use. on a test basis. or disposition of the company’s assets that could have a material effect on the financial statements. comprehensive income. assessing the risk that a material weakness exists. based on criteria established in Internal Control . GAAP) Consolidated Segment Information Consolidated Quarterly Financial Summary Management’s Discussion and Analysis of Financial Condition and Results of Operations Management’s Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Notes to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Toyota Jidosha Kabushiki Kaisha (“Toyota Motor Corporation”) In our opinion. or that the degree of compliance with the policies or procedures may deteriorate. Also in our opinion. for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting. in all material respects. Also. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting. accurately and fairly reflect the transactions and dispositions of the assets of the company.

036 132.com [IR Information] http://www.309 66. 601 Lexington Avenue. 7-chome. Tel: (207)290-8513 Fax: (207)290-8502 . etc.A.063 61. Inc. State Street Bank and Trust Company Nippon Life Insurance Company The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders Trust & Custody Services Bank. London W1K 1RA.049 million Fiscal Year-End: March 31 Public Accounting Firm: PricewaterhouseCoopers Aarata Number of Affiliates: [Consolidated Subsidiaries] 509 [Affiliates Accounted for by the Equity Method] 56 Stock Data Number of Shares Authorized: Number of Shares Issued: Number of Treasury Stock: Number of Shareholders: Number of Shares per Trading Unit: Stock Listings: Securities Code: American Depositary Receipts (ADR): Transfer Agent in Japan: 10. Toyota’s Stock Price and Trading Volume on the Tokyo Stock Exchange Depositary and Transfer Agent for ADR: The Bank of New York Mellon 101 Barclay Street. Toll-Free: (888)269-2377.000 Major Shareholders (Top 10) Number of Employees: 68.000 shares 3. Japan Japan Toll-Free: (0120)232-711 Trading volume (Million shares) 2. NY 10022.795 4.635 2. etc.120 4. London [Japan] 7203 [Ratio] 1 ADR=2 common stocks [Symbol] TM Mitsubishi UFJ Trust and Banking Corporation 10-11. Tokyo 137-8081. Toyota City.366 129. Limited SSBT OD05 OMNIBUS ACCOUNT-TREATY CLIENTS DENSO CORPORATION 328.bnymellon. U. 21. U. New York. Koutou-ku.140 3. 49th Floor. 1937 Common Stock: ¥397.050 2. NY 10286.235 3.399 75. Tel: (212)223-0303 Fax: (212)759-7670 Toyota Motor Europe NV/SA Curzon Square.ANNUAL REPORT 2013 P ri nt S earch C ont ent s Page 124 Ne x t Toyota Global Vision Prev President’s Message Launching a New Structure Special Feature Consolidated Performance Highlights Review of Operations Management and Corporate Information Financial Section Investor Information Investor Information (As of March 31. Osaka.498) Corporate Web Site: [Corporate Information] http://www. Toyota Motor North America.903 Other corporate entities 17. Aichi Prefecture 471-8571. Tel: (866)238-8978 U.752 58.000 600 4.61% Financial institutions. Sapporo [Overseas] New York.568.A.89% Individuals. Higashisuna. Ltd. U.000 Stock price(¥) 6. Ltd. U.toyota-global. include shares of 280 million treasury stock.570 5. Brokerages 30.adrbnymellon.492 shares 280.455 82.S.000.K. Nagoya. Mitsui Sumitomo Insurance Company. Toyota-cho.58% Foreign corporate entities and others 29.A.860 U.K. Fukuoka.913 218.978 (Consolidated: 333.S.S.515 185.com [Transfer Agent] http://www. Japan Tel: (03)3817-7111 Fax: (03)3817-9092 0 400 200 0 FY2009 High (¥) Low (¥) At Year-End (¥) FY2010 FY2011 FY2012 FY2013 5.com/investors Name Number of Shares Held (Thousands) Ownership Breakdown Japan Trustee Services Bank.824 shares 628.997. (888) BNY-ADRS [Depositary Receipts] http://www.S.330 3.745 3.92% Note: Individuals.585 3. Koraku 1-chome.710 2. New York.350 3.447. 25 Park Lane.955 2. 2013) Corporate Data Company Name: Toyota Motor Corporation Established: August 28. Toyota Industries Corporation The Master Trust Bank of Japan.com/shareowner Contact Points for Investors Japan Toyota City Head Office Tokyo Head Office 1. Bunkyo-ku Tokyo 112-8701.800 3.toyota-global.000. Japan Tel: (0565)28-2121 Fax: (0565)23-5721 4-18. Ltd.902 100 shares [Japan] Tokyo.