TOYOTA REPORT Business Report for the 107Th Fiscal Year for the Period from April 1,2010 to March 31,2011 Reference Document of the 107Th Ordinary General Meeting
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TOYOTA REPORT Business Report for the 107th Fiscal Year For the Period from April 1,2010 to March 31,2011 Reference document of the 107th ordinary general meeting 005_0529901172306.indd 1 2011/05/20 11:19:23 This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation. Table of Contents To Our Shareholders .............................................................................................................2 Toyota Global Vision.............................................................................................................. 3 (Attachment to the Notice of Convocation of FY2011 Ordinary General Shareholders’ Meeting) Business Report ................................................................................................................ 4 1. Outlook of Associated Companies ................................................................................... 4 2. Status of Shares.......................................................................................................... 15 3. Status of Stock Acquisition Rights, Etc. .......................................................................... 16 4. Status of Directors and Corporate Auditors ..................................................................... 19 5. Status of Accounting Auditor ......................................................................................... 28 6. Basic Policy Regarding the System to Secure the Appropriateness of Business ................. 29 Unconsolidated Financial Statements.............................................................................. 32 UNCONSOLIDATED BALANCE SHEETS................................................................... 32 UNCONSOLIDATED STATEMENTS OF INCOME...................................................... 33 UNCONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS....................... 34 NOTES TO UNCONSOLIDATED FINANCIAL STATEMENTS .................................... 38 Independent Auditor’s Report (Certified Copy)................................................................ 42 Consolidated Financial Statements ................................................................................. 43 CONSOLIDATED BALANCE SHEETS........................................................................ 43 CONSOLIDATED STATEMENTS OF INCOME ........................................................... 44 CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY............................. 45 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................. 47 Independent Auditor’s Report (Certified Copy)................................................................ 49 Board of Corporate Auditors’ Report (Certified Copy)...................................................... 50 Consolidated Business Results for FY2011 (Reference) .................................................... 51 Segment Operating Results............................................................................................. 51 Geographic Information ................................................................................................... 52 1 To Our Shareholders: that exceed customer expectations will help us establish a “stable base of business” for Toyota. We believe that we will enhance our corporate value and meet shareholders expectations by fostering this virtuous cycle. After considering various factors such as our business results, research and development activities, and investments planned for sustainable growth, we would like to propose a year-end dividend of 30 yen per share at the FY2011 Ordinary General Shareholders’ Meeting in order to maintain our tradition of providing stable and continuous returns to shareholders. This, combined with the I would like to express our gratitude for your ongoing interim dividend of 20 yen per share, will result in a support and understanding of our company. total annual dividend of 50 yen per share for We offer our sincere prayers for the repose of the FY2011. souls who died in the East Japan Earthquake, and Since April of this year we have been successively our deepest sympathies to those who suffered from making changes in our management structure, the disaster. including our systems to “reduce layers in decision We will continue to provide the utmost support to making” and “reduce the number of directors.” We those now in the disaster area and we are working have been conducting community-based corporate to expedite the restoration of manufacturing in the activities and providing products and services that Tohoku area as soon as possible. only Toyota can afford to provide to the specific In March of this year, we announced the “Toyota towns and countries that need them. In the future, Global Vision,” a vision for the future plotted out our global headquarters in Japan will plan out an based on the lessons we have learned from the overall direction and furnish further support for harsh business conditions in the aftermath of the initiatives undertaken by the regional operations. Lehman Shock and a series of quality issues we Toyota has encountered numerous challenges in have faced. the 74 years since its foundation. We have Through the efforts of all of us at Toyota for business overcome these challenges in every situation we recovery, and in response to the quality issues, I faced, encouraged by the smiles we earned from have reached out and made contact with various customers worldwide and the concept of creating related people such as members of the media and socially beneficial automobiles. All 300,000 of us at customers around the world. These experiences Toyota worldwide will take part in the work to lay have led me to feel anew the importance of foundations for sustainable growth. Toyota will expressing in writing what kind of company we are advance, never turning back, through these and what kind of values we hold, and making these concerted efforts. We look forward to your ongoing things known to the public at large, our shareholders, support. customers, and employees. Our management under the Vision is built upon the Akio Toyoda founding values and Monozukuri commitment to President conscientious manufacturing shared by all of us at Toyota, as expressed in the “Toyoda Precepts,” the “Guiding Principles at Toyota,” and the “Toyota Way.” Our contributions to “better towns and better society” through the creation of “always better cars” 2 Toyota Global Vision Rewarded with a smile by exceeding your expectations Toyota will lead the way to the future of mobility, Concepts included in <Toyota Global Vision> enriching lives around the world with the safest and most responsible ways of moving people. “The safest and most responsible ways of moving people” Through our commitment to quality, ・By placing highest priority on safety and deploying the constant innovation and respect for the planet, most advanced technology for minimizing environmental impact, Toyota will ensure rewarding we aim to exceed expectations experiences for customers through products, sales, and and be rewarded with a smile. services that exceed customers’ expectations. We will meet challenging goals by engaging the “Enriching lives around the world” talent and passion of people, ・ Toyota will serve society through conscientious who believe there is always a better way. manufacturing and enhance the quality of life wherever it has operations. “Lead the way to the future of mobility” ・Toyota will aim at a safer automobile society through interaction with the transportation infrastructure, including new forms of transportation mobility (next-generation mobility) and convergence of information technology for automobiles and smart grids. “Our commitment to constant innovation” ・Toyota will continue to provide reliable vehicles that enable people to feel good about driving and riding, at reasonable prices, by developing technologies that address the needs of today and of tomorrow. “Respect for the planet” ・Toyota will continue working to minimize environmental impact in its manufacturing and other operations, as well as in its products. “Exceed expectations and be rewarded with a smile” ・Toyota will strive to earn smiles with products and services that are stimulating and even inspiring. “There is always a better way” ・All Toyota employees will share a commitment to continuous improvement, a fundamental principle of The Toyota Way. “Meet challenging goals by engaging the talent and passion of people” ・We at Toyota will set and achieve the challenges high goals not only by ourselves but empowered by the strength and opinions of our customers and numerous other stakeholders. 3 Attachment to the Notice of Convocation of FY2011 Ordinary General Shareholders’ Meeting Business Report (Fiscal Year under review: April 1, 2010 through March 31, 2011) 1. Outlook of Associated Companies (1) Progress and Achievement in Operation General Economic Environment in FY2011 Reviewing the general economic environment for the fiscal year ended March 2011 (“FY2011”), the world economy is improving mainly due to the effect of the expansion of domestic demands and exports in emerging countries especially in Asia, and the economic stimulus measures undertaken by various countries. Although the Japanese