TMC’s FY2024 2Q Financial Results Press Briefing
Good afternoon ladies and gentlemen thank you very much for coming we now like to start this 2024 at the uh Financial results uh de briefing meeting and I’m and I’d like to serve as the MC for today’s session I I really appreciate you for coming the first I would like to
Introduce to the this see the the chief head of the accounting division to report on new the financial results of the FY 2024 second quarter we would like to express our heartfelt appreciation to our customers around the world who chose us as well as our shareholders dealers and suppliers to support
Us first let me provide the summary of the second quarter of the fiscal year ending march 2024 income was 2 tr5 59.2 billion yen we are grateful for the support of many stakeholders including suppliers from production to Logistics sales and services in addition our operating income increase compared to the same
Period of the previous fiscal year as a result of selling each car with care and at prices that match the product appeal we have refined of making ever better cars as for the through year forecast we have revised the forecast upward from the previous forecast to 4 tril 500
Billion yen in light of the impact of exchange rate fluctuation as well as efforts to improve profitability the inur dividend will be 30 per share year on year increase of 5 and we plan to proceed with 100 billion y as the maximum as for the share repurchases we
Intend to continuous evolve our cycle of growth together with stakeholders aiming to realize the mobility Society through the business Foundation we have built up and through Frontline efforts that maximize the effectiveness of such First Let Me Explain our financial results for the first half ended September 2023 covering 6 months from
April to September Consolidated vehicle sales for the period was at 4,744 th000 units which was 11 14.1% of the consoled vehicle sales for the same period of the previous RIS Toyota and Lexus brand vehicle s was at 5, 72,000 units which was 10.91% of such sales for the same period
Of the previous year the sales increase in all regions also we increase the sale of electrified Vehicles mainly HS with elied vehicles constituting 35.3% of the total sales Consolidated Financial results for sales revenue of 21 tril 9816 billion yen operating income 2 tril 55 59.2 billion yen income before income
Taxes of 3 trillion 5215 billion yen and net income of 2 trillion 5894 billion yen I would like to explain the factors which impacted operating income year on year first the effects of foreign exchange rates increased operating income by 260 billion cost reduction efforts decreased operating income by
110 billion yen due to the impact of soaring materials prices marketing efforts increase operating income by 13290 billion due to an increase in sales volume Improvement of sales mix and price revisions mainly outside of Japan an increase in expenses decreased operating income by 220 billion due to an increase in labor cost and
Investments in areas such as digitalization we also experienc a positive uplift of 197.4 billion largely due to swap valuation gains and losses as a result including overall impact of foreign exchange rates swap valuation losses and other factors operating income increased by 960 billion year on Year let me explain the operating income
For each region Japan increased year on year due to strong Sales North America Europe Asia and other regions also increase year on year supported by strong sales and price Visions based on product competitiveness in the next slide let me explain about a business in China as well as Financial Services set business
As for business in China due to steady demand for hvs our strength we are maintaining Toyota and Lexus sales volume the operating income Consolidated subsidiaries and a share of profit to investment accounted for using the equity method both decrease year and year due to the fluctuation in foreign
Exchange rates and increase in setting expenses regarding the financial services business operating income including swap valuation gain losses for the fiscal year decrease year and year due to the decrease in margins let let us now move on to the shareholder Returns the interim dividend for the
Current fiscal year will be 30 Yen per share an increase of 5 Yen compared to the previous fiscal year we will focus more on dividends and aim to increase dividends stably and continuously in order to reward our long-term shareholders as for share purchases during the current interim period we will conduct share
Repurchases flexibly taking into account our share price levels and so forth with the maximum acquisition limit of 100 billion yen now let me talk about the outlook for the 2024 fiscal year for both Consolidated vehicle sales volume and Toyota and Lexus brand vehicle sales volume our previous forecast remains
Unchanged for the regional breakdown while Asia will decrease reflecting the uncertainty in markets such as China Thailand and Vietnam we forecast an increase in North America and other regions where a robust Market is expected and in Europe where we expect a recovery in Supply although bevs will decrease reflecting the decline in the
Chinese market we expect a total electrification rate of 37.2% next the full year Consolidated Financial forecast we have adopted the full year foreign exchange rate Assumption of 141 per us 152 Yen per Euro based on this we forecast for the full year Consolidated Financial performances are revised upwards
Resulting sales revenues of 43 trillion yen operating income of 4 tr500 billion yen income before income taxes of 5 tr550 billion yen and net income of 3 tril 950 billion yen I’d like to explain the factors that we believe we impact operating income first we the facts of foreign exchange rates will increase
Operating income by 1 tr180 billion yen cost reduction efforts will increase operating income by 100 billion yen we expect marketing efforts will increase operating income by 370 billion yen due to an improvement in sales mix as well as price revision especially outside of Japan increase in expenses will decrease
Operating income by 110 billion yen the factors that we expect will impact operating income compared to the same period of the previous fiscal year as shown thank you very much now we would like to introduce the Executive Vice President and CFO Mr Yaki who will tell us about the growth uh
Strategy of a company that we aim at next speaker is Mr Miyazaki thank you very much I’m Miyazaki the CFO regarding our financial results the of course yo has already explained however our profit structure is steady improving we believe that the foundation for such sustainable growth has been
Laid thanks to our customers around the world who chose us as well as our shareholders dealers and suppliers and all other stakeholders who support us I would like to express my deepest gratitude we intend to further strengthen this foundation with our many stakeholders who support and sustain us
From a medium the long-term perspective from the past present and into the future today I would like to talk about the kind of growth we aim to achieve first let me talk about the characteristics of our business Foundation our business has three characteristics first we have a full
Lineup of vehicles worldwide and the balanced Regional representation second we have a global customer base of more than 100 million units and third we offer hybrids which provide both CO2 emission reduction and profitability these characteristics lead to the stabilization of earning power Which is less susceptible to the effects
Of fluctuations in economic and market environment in each country another major point is a careful timing over investment decisions our comprehensive assessment of investment in b EVs and batteries while considering the energy situation in infrastructure of each country the evolution of technology and changes in actual customer demand has enabled us to
Achieve a strong financial Foundation upon which we can promote investment for the future this financial Foundation has been made even more successful by the steady continuous Improvement activities of our suppliers and those on the front lines of manufacturing and Logistics as well as our dealers on the front lines
Of manufacturing we are working to improve quality and productivity by accumulating second byc improvements reducing the burden on workers through digitalization and visualization uh visualizing the skills of our skilled Crafts People on the front line of dists amid shortage of truck drivers and ships we have been making improvements by
Drawing on wisdom of related companies as a result in part distribution we have simplified routs and increased loading capacity and inished car Logistics we have reduced vacant space rates by jointly transporting vehicles with other companies on the front lines of sales we are utilizing digital transformation to build a system that links production
Transport and sales to provide customers with accurate delivery date information and to deliver Vehicles quickly and without waste we intend to continuously evolve our cycle of growing together with stakeholders through the business Foundation we have built based on making ever better cars initiatives and through Gamba or Frontline efforts that maximize the
Effectiveness including the efforts of related parties we will continue striving to deliver ever better cars that meet the needs of our customers in each region velop new customers and emerging markets and further strengthen our unique and solid business Foundation we also plan to expand and strengthen our investment
In the future including in bevs hydrogen software and energy and increase touch points with our customers and Alliance Partners beyond the automotive industry with a total package that should lead to the expansion of a business domain toward becoming a Mobility company and the transformation of our corporate groups business structure next is
Investment for the future at our Technical and Manufacturing or monuki workshops we have shown you our Technologies and skills that have been accumulated over the years you don’t just wake up to find yourself in the future the future is made up of the steady accumulation of day-to-day activities of today to leave
Many options open for the future our engineering efforts will Drive investment in various Advanced areas and we plan to actively s the Seas for the future by combining manufacturing techniques with digital and Innovative Technologies and for key investments in mass production we plan to determine investment timing based on the
Technologies and skills we have horned from a long-term perspective while closely watching market trends when it comes to shareholder returns we aim to continue to increase dividends to reward long-term shareholders finally here is our Capital strategy our transformation into a Mobility company requires a muscular balance sheet while selling strategic stocks
That have declined in significance to our Holdings and conducting home and a activities within our corporate group we have been building alliances to accelerate our transformation by continuing to reduce our number of strategic shares reviewing grow uh groups cross shareholdings and utilizing more effectively treasury
Stock and cash on hand we aim to build the optimal structure as a Mobility company and maintain and improve our competitiveness in summary in to realize a cycle of growing with our stakeholders we will continue striving to strengthen our earning power accelerate investment for the future utilize more effectively
Our accumulated assets and create a new structure as a Mobility company to gain a Competitive Edge precisely because this is an age in which it is hard to predict the future we hope to work together with your support and encouragement to create the future of Mobility to this end we would like to
Use the results we have been able to generate thanks to our many St quars as a source of growth together with our customers shareholders suppliers employees and local communities if you do not act we will not be able to carve up a future for ourselves we hope that you will
Certainly continue to look forward to what Toyota will achieve and support us in the future thank you very much for your attention today thank you very much now we would like to entertain questions so please wait for a few minutes until we uh uh prepare for that thank
You now we like to start the question answer session so the people who be uh responding to those questions please come up to the stage I’d like to introduce the speakers today the Executive Vice President and Chief Financial Officer Miaki chief officer and the chief communication officer Jun
Nagata masah yo chief officer of the Accounting Group so uh please excuse us to be seated so that the uh the speakers will be seated as well now we like to entertain the questions so uh from the floor as well from online participants so we’ like to
Have a separate session the first is the question to entertain from the people uh in this Hall in this room those of you who have a question please raise your hand and speak to the microphone and I we like to I give chance to to as many people as possible so please refrain
From asking more than two questions so two questions per person please and thanks for your uh understanding and the person in the middle uh Ro please thank you very much for this opportunity so about this uh the Outlook of this full year the 1.18 trillion yen
Uh is a good figure but 141 Yen to the dollar that is the currently the de V is still ongoing so what about your outlook on the exchange foreign exchange rate do you think that will further be adjusted upward and the second question is related to this foreign exchange rate
Yen is weak and F is actually pushing up this raw material expense so that’s a negative factor of the weak how do you perceive that the negative impact on behalf of TMC of course the exporting the companies T to enjoy the benefit of this week y however what is
The optimal level of the fing exchange rate how do you perceive that thank you very much for your question well as to this fluctuating foreign exchange rate and what is assumption in company uh like automatically that we just based upon the past results and then this future assumption is based upon that so
In the remaining six months 140 to the dollar is the current assumption so that is the level of this assumption however as to the fluctuating exchange rates what is the impact upon our company well yen is weak yen is good or bad is not the issue but foreign exchange rates I
Think the St stability is something we want to happen that’s something we appreciate stable exchange rates at TMC in other country in Japan we would like to produce the automotive industry and we like to continue to produce here in Japan in the past was so high and then
The Great East the Japan earthquake struck during that difficult time rather than Shifting the plans to overseas we continue to the creative employment by building the plant and then continuing operation to contribute to the local and Regional communities in Japan so that we have a strong basis here in Japan that
Means that when we export vehicles from Japan of course in the current phase of the the weekend there effect and then we it might push up our the income and the revenue however when you look at overall supply chain the yen is weak might be positive or it could be negative in some
Other regions so it’s just depends upon which region you are talking about so what we want is a more stable the fluctuation of this exchange we built this production plans and they take a deep root in that community and we cannot quickly shift your production sites easily that’s my answer thank you very
Much thank you very much next question please yes I see your hand in the First wall from s newspaper now I’d like to ask you about the Chinese market for the second half of the year what is your outlook for the market in the first half the production level
Was rather low and the sales level was maintained from from the previous year as I understand but after the second half of the year and onwards what will be the competitive landscape and what would be your sales projections and a related question to that would be about your Bev’s sales
Forecast 200,000 Vehicles was the original plan now you’ve reduce that amount in your new forecast is it because the demand for bevs has declined or is it because of Toyota’s product plans something specific to Toyota itself rather than the market so these two questions related to the Chinese market that’s the first part
Of my question the second is now hybrid including phv are growing in your business earlier Toyota’s hybrid has garnered the same profitability as ice Vehicles now in terms of the plug-in hybrid vehicles is the proability on par with the ice Vehicles set the proability of behs is the second question of mine thank
You hi thank you very much for your questions in terms of the Chinese market I like to respond first of all as for the market itself maret is growing centering around domestic andan has mentioned we are maintaining our share of the market and remain stable asot mentioned earlier the very
Strong intensive discount competition has begun especially in the area of bevs under such circumstances local o in China as well as incumbent o are competing very fiercely in terms of prices therefore the discount race has started we plan to maintain our share of the market and currently we are maintaining
It and going forward that would remain our assumption going forward in our business in China our bvs as has been mentioned is the area we have downgraded our forecast but then our hybrid vehicles are expected to increase so the total number of vehicles that we can sell in the market will
Remain and that is one of the ways of avoiding the price competition so v v units are declining why well because of the fears price competition is one factor actually in the eyes of the customers they have more choices and options BG 4X and other Toyota vehicles still have room for
Improvement and that’s the message we are receiving from the market we are talking about cars we improve our models periodically and therefore going forward we will continue to do so responding to what the market tells us as for the second point I’d like to ask Yaman to respond thank you very much
For your question about the profitability of plug and hybrid which is on par with hybrid vehicles thank you thank you very much next is the the person wearing a white jacket around the Middle Road please this TV Tokyo I have two parts of questions first about this a strategy
And policy based shareholding and Mr Miaki mentioned that you like reduce the cross holding and you would like to really revise that with even within the group companies but uh you refer to that now at this time then what is the time scale that you would like to further
Revise or reduce the holding of the Cross holding of those policy related shes the second is the idea on this pay rise pay rise and different companies doing the L part of half of this year they would like to raise this labor cost and then they will have additional
Spending for that but what is the policy and what is this cost related to the labor cost this some of this suppliers and others what do you think of that as to the policy and strategy related course holding of shares the during this the uh the previous quarter the
Announcement of this financial results already mentioned our philosophy and concept on that and you really urge that we should be more clear about that the uh shareholding after the end of the first quarter the uh announcement that we gave you the idea and this time again the including even the group croch
Holding that we touched up on this policy on this shareholding and the graph I showed you also showed in the P we have done some of the measures and implemented measures our thought is unchanged the same idea there’s no longer any significance of cross holding the share and so on WE
Revise it we might make that money and then will be the financial resources for investing in the other new areas we will switch the asset mix and then we find a new partners we will invest in new areas that is why we like to revise this cross holding of the shares as to
This group share holding we apply the same con optimal business within the group we like to achieve that Optimum business and information structure should be revised accordingly and together with other companies we are implementing this Home and Away concept and when our lineup is changing we like to really promote that
Kind of concept in the future as well as the question about the timing when we will Implement that the the need arises will immediately Implement that needed action that’s our thought therefore uh it’s not something for the sake of this particular goal that we have the basic concept the need arises
Quickly we Implement our action that’s what we like to do we as to the second question Nagata will respond thank you very much as do this rep on the the uh the salary hike of pay rates asak also touched on that at the beginning for the sake of stakeholders
We’ve been building a c together with the other stakeholders our message it’s constant we like to create a future together automobile is something that we work together and build together so the first question is our concept on the pay rates within TMC of course naturally that our employees we are the the
Partners so that for this the term to the next fiscal term the inflation is taking and other factors pushing up the uh living cost so then they have worked so hard and then we of course appreciate the hard work so taking all those factors into account we
Like to really have a good talk with employees once a year we have a spring labor offensive but that’s not all every month we have a dialogue with the labor union members to try to improve the situation and then another Improvement one after another we improve so taking
That into account the pay rise level will be considered to next year as the second uh the question but how do we respond to that with regard to the suppliers employees because the raw materials and and all these things the cost increased due to the week end I
Think this the procurement became so expensive especially raw materials and electricity Supply as the pay rise related areas since last year we have taken that into account and then we paid this accordingly to the suppliers and we will maintain that stance that the uh policy this ter so that to the people
Around the our stakeholders and suppliers we will pay them accordingly and then how should we the push that up for the tier two and other suppliers So eventually our message will be conveyed to all the suppliers including tier one to the rest thank you thank you it was
Question I have attitude about this question just additional one comment in my presentation we talked about shortage of truck drivers in logistics and transportation is the issue and so in that sense of course for the logistics cost I think this is the area we want the Improvement and we will extend uh
Cooperation as to the transportation cost we uh are negotiating with this logistics company to raise the fees for them so that the should be the increased reward for the truck drivers as well so that’s something we are talking with this Logistics and transportation company so we hope that we will really
Pay accordingly thank you thank you very much next question please fourth row alongside the aisle please inima from Bloomberg thank you very much yeah e exports from China is something that I like to ask about in addition that that have impact to Southeastern Toyota businesses what is the immediate
Situation in new outlook going forward and also higher interest rate will that have any impact to your procurement as well as sales once again they Med situation in the Outlook ask do you have any responses to those developments thank you very much I’d like to respond to the first question of
Yours the export from China was a question and how that would impact our operations in Southeast Asia exports from China is increasing and we have confirmed that where thail and other countries have seen batteries becoming a certain industry segment now for the future outlook most probably Chinese bevs and other OEM will
Continue to strengthen their exports or expand their operations overseas that’s something that’s something we have to expect what do we do about it well I’m sure you all know it’s not that we don’t have the battery lineups the question is when we actually introduce them and launch them as products
I cannot be too specific but from Japan to Southeast Asia and the Chinese exports have different levels of tariffs in different countries at what timing we consider local production or at which timing we start exporting from Japan to Southeast Asia our BS really have to Be watchful
Of the market situations as well as the competitive landscape going forward thank you for your question in terms of the higher interest rates especially in the area of sales and financing Services I believe you’re very right especially in the United States interest rates are being raised and in terms of
Procurement the margin of profit is declining but the financing business of ours is not really losing steam it’s still stable because because of the residual value that is the cost or the value of the used car remains very strong overall the use sces have maintain a higher price point so what we
Hear from the market is the power of the products which maintains the residual value of the used cars contributing to profitability so that’s a value of coming up with powerful products and that certainly has positive impact to the profitability thank you for your question person in the second uh roow from the
Back news speaks my name is H and then will there will be any change to your investment practice because the first is that in this financial cash seems to be accumulated a lot in your company six months ago the press conference you said that the share price was B down so that
You mentioned about the shareholders but as of now but your share prices went up to a high level but of course it’s not something you would determine by your company I’m aware but the share price is high so shareholders are really expecting the further growth in your
Company and then so the more investment means the more return and the shold price is so high so maybe Capital cost funding cost is is going down for your company I recognize so you have that abundant cash and it might to be spent as a dividend payout to the the
Shareholders but may stakeholders really expect that your compan is to grow further maybe you can invest that into the R&D that is for the sake of the future is it likely you invest more for R&D and other future projects thank you for your question in this interim announce
Figure well our the feeling and is on that is that’s something i’ like to touch upon because in a presentation I have also tried to convey you this message but in this announcement of the financial results of course the people who purchased the model and then love them we should really appreciate the
Users so that the number really ref that we should really express our gratitude there are lots of customers who waiting for our vehicle as soon as possible we like deliver the vehicle therefore the are the suppliers and then manufacturing plants and logistics company people and others are working hard to deliver it as
Soon as possible dealers as well so I like to take this opportunity to thank all the stakeholders because of hard work we finally achieved this good number this time as a result an ination in each the the offices and the Frontline Fields uh these the partners were supported by the local
Community residents and other stakeholders so it’s all thanks to all these people who contributed to these numbers so I cannot really think of the the better words but anyway these the earning the profits are not to be used for our own sake but rather we like to spend it to transform the Japanese
Automotive industry how can we create and explore the new Mobility business here in Japan and so on so that’s where we like to make further investment so that we can return this to the society at large so one company alone cannot change the future of the automobile multiple companies and
We should form a partnership and we like to actively invest in new areas so that how can we change transform the future of the automobiles that’s something we like to explore and a result of this we like to Pro the strengthen our earning power as I
Said I would like to return that benefit back to the stakeholders and with their support we like to go up this next step so we like to steadily turn this good cycle that’s something we like to do that is the basis our foundation and then we decide on where to invest
Further and we have to really solve different plants and what kind of SE are needed it uh is not yet clear we will plant the seeds so the seeds in many places and explore different possibilities and then we might create a new species of plants and so forth
That’s something we like to try thank you another question is that as the domestic production foreign exchange rates are likely to really change fluctuate much but 10 years ago so Yen used to be strong so the domestic employment and suppliers had be protected and then as a mother plant in
The short term it’s not really a positive situation but you still endured through that difficulty but now the foreign exchange rate has changed so purely you have a high quality and producing here in Japan makes it the most competitive situation for you to continue to produce here in Japan is the
Most competitive what do you think of that the competitive ede of the domestic production thank you for your question as to the competitive age before that talking about compe because 3 million units of the domestic production level has been maintained for a long time because TMC even we
Had the loom production company because we were a company born in Japan we’ been a Japanese company and we were in the Japanese society and to the nation of Japan how can we continue to make contribution to the people of Japan that is a important Mission several about a
Thousand years ago the Great Earthquake occurred in to Hoku and then y was so strong there were six hardships we suffered and then lots of plants moved to overseas so after that after math of that earthquake we created the East Japan Toyota Motors and we wanted to contribute to this local
Community by automo production so we did something reverse the trend compared to other parties but now e Jaan in to uh we believe that we have made contribution to the whole region and we still do and we would like to maintain the policy 3 million units
To be continue to be produced here in Japan in terms of numbers of course Jama is also relevant to here but anyway as you aware that the 15 trillion income for Japan thanks to this export automobile energy cost is going up here in Japan as well due to inflation but
Still it’s a kind of difficult situation but two or three years ago 15 trillion spent to really procure the energy in Japan imported so in order for Japan to economically feasible I think you have to continue to earn foreign currency so Toyota should really support that kind of system
As a company and the number should really prove that so as Mr mentioned that what about the future we should never deviate from this policy we like to keep this stronghold here in Japan and continue to make contribution to the local community and Regional communities here in Japan thank you next question please
This person in the second row from the front please I am K from I have one question for you as for April to September repricing efforts over the past Rec years it seems it has had Major Impact so would you be more Concrete in telling us what you have done and as n
Mentioned earlier rewarding your suppliers is something that you have done now based on that cost reduction efforts together with the suppliers is another area of interest that I would like you to elaborate on thank you thank you for your question improve efforts at gimba can take multiple forms as you’ve seen in maakan
Slide I listen directly to people in G and I’m feeling the advancement of digitalization I’m referring to a specific slide here in terms of machined parts the visual inspection of the surface finds one out of 10,000 some defective parts and people in the gimar have a very intense job because they should not
Overlook such defects but then you introduce AI camera can really be effective on the right you see sealers being applied seers that you’re pay to reduce water Leakes it really takes skills and then there are seasoned craftsmen who are so good at it so VR algorithms can read in what
Seasoned Crossman would do and newcomers can mimic what the seasoned Craftsman would do and that results in weit reduction in training hours and such specific techniques can be handed down to the next Generations about 3 years ago together with our labor union we decided to catch up with others in implementing such digital
Technologies and L production area our engineers and technicians are really eager to learn all our employees over the past couple of years during the pandemic we have seen such results with very strong workload in gima use of Technologies as such certainly has proven quite effective this is something Toyota does this is
Something that we do together with our suppliers now what was your second question would you repeat your question no it’s okay you have addressed my question well in terms of our suppliers I’ve given you several examples we have direct touch with one tier two suppliers of
Ours so we have direct touch points with them and that probably it’s a physical limit of our reach then if Improvement efforts should cascate it down to further down in the pyramid then J and parts suppliers associations together should work together in implementing such Improvement efforts nasan is working on
That nasan do you have anything to add thank you this is also an activity of J as M mentioned Jam supply chain committee is the Forum that we work together especially in a deeper down in our supply chain what they should do is something that Jama can communicate very well and
Part suppliers Association as well in terms of the creative ideas of what can be implemented and of course sometimes we can visit the gima of those lower tier suppliers and that’s the effort made by the entire industry Association not only by Toyota and our activities are aligned
With those with Jama and I think that’s extremely important right now now in the future as has been mentioned electrification and transition to bevs how should we go about that as you go down our supply chain especially the smaller suppliers they are at loss what to do and especially in
The area of carbon neutrality there are a lot whatat to do so not only our direct suppliers but Jama and part suppliers associations networks should be leveraged so that we can work from both directions thank you very much for your question thank you very much for your
Many questions now we like to shift to the online participants to entertain their questions online participants when you have a question please uh uh push the button to raise your hand and we call out your name and then please turn on your microphone and Camera before you speak online
Participant uh no one has raised a question so we like to return to the people on the floor the in this Hall to entertain questions directly from them the third the person on the third Road uh from the I’m ha from NHK so for this financial results you presented the top
Income and then the profit that you have achieved the record high and as EVP Miyaki mentioned that they express his gratitude however how do you perceive over this six months the financial results but of course the raw materials and other prices are going up so for the future the Outlook you have upwardly
Revised the future outlook however what are some of the concerns and some of the factors you are considering carefully thank you very much for your question earlier I have made some summary statement in my remk but the actual numbers we have seen we are seeing of course each field and each the
Position people work so hard to come to this good result in the last six months and now as the full year outlook we have presented of course we have the resolve that we continue to do this good work by working hard however efforts are really observed in
This Marketing sales this number is so good so what is the backdrop for this good marketing itself so we have introduced the company system to build ever better car the appearing the products lineup have been prepared already that is a major important basis the second factor is that many changes
Are occurring however every day in the daily operation accuracy is going up and then we have to make a quick decision but local specification has been tailored made for each area and then the fact in the field and front line has been considered to make a quick decision and those results
Have have been reflected in this good result more than ever to build the ever better car and in the local community that the local the gam based decision is made quickly in other all these people involved in this production and Logistics and so on this the United efforts of these people were reflected
This good number so anyway it cannot be done overnight it’s been the result of all these accumulated hard work and daily improvements and United efforts and all that results are reflected in this good result that we are announcing today so we are faced with a good situation now and we like to
Continue this good uh practice from now on but we have just completed the half of this full year the business and we can never feel so easy because we still have lots of risks that we have to be prepared as pointed out the full year the production is one
10 10 million and 500,000 unit we haven’t changed that production Outlook but from my standpoint we might have have kind of a positive outlook however as you pointed out that there are lots of concern this Market behavior is changing in China or in China the real estate situation is
Uncertain impacting the southeast Asia and Thailand and in those like Vietnam and Thailand the market itself is going through some changes we can never feel too optimistic really have to be careful but still at anyway that the uncertainty in front of us and that uncertainty is getting more serious so we should really
Have the spread antenna to have a good communication with the local CEOs and others to supply these good cars which will please the customer there and then really adjust the cars according to the customer need needu that’s what we like to be prepared thank you very much next question
Please yes person in the front row please I am K from minich Del I have two questions Nowak you talked about the contribution to the Future Mobility industry the future automotive industry and yesterday you made an announcement about additional investment in the United States in production so hydrogen battery carbon neutrality areas will
Become the focus of your future investment and the second question is earlier you experienced some accident at your supplier’s factory which caused some halting of your production line has it have any impact in your production plans going for for thank you for your Questions now the investment for the future of course Caron neutrality is a major Focus area and going forward battery EVS as well as hydrogen will become important areas as well because they will lead to new business domains there are multiple options for Investments during the technical workshops and monu manufacturing
Workshops you have witnessed all those Endeavors that we are making investment is made into the areas where we have a basis of Technologies and engineering and capabilities and Technical workshops have demonstrated that we do have such a foundation and in monre workshops you have witnessed our engineering prowess which would enable
Further investment in such areas now the question I’m sure would be what about Roi and profitability how can we connect those different pieces of Technologies and Engineering progress and how to make uh allocate our investment going forward is something that we will still have to determine going
Forward thank you very much you asked about the accident at Two Old Spring Company now actually because of the data deficiencies we have experienced hting of our assembly lines at the Cho Spring Company they have resumed production so bringing them up to speed certainly would be the current
Focus as of now we haven’t changed our production plans so before the end of the year we will make some recoveries so that’s something that we do to respond to that particular accident but what we have to do is because frequent incidents like this or accidents like this would only
Convenience our customers so how to manage aging manufacturing equipment and Facilities is something that we really have to go through together with our suppliers and we’ve already begun our endeavors so that going forward we will not cause any inconvenience to the Future customer of ours we will continue Ste
For the Improvement thank you very much so we like to just entertain two more questions because time is getting short please thank you for this opportunity in the USA about the American Market that’s my question 3 months ago when you announced the first the result that there are some risk
Factors and then you mentioned about risk but what is Outlook of the US market from now on the second question is the UAW strike has finally been settled so what will be the impact and Rippling effect due to the that strike in the USA because the US auto makers
Their burden was is going up and some people say that it will be a advantages for the Japanese companies but maybe investment cost will go up uh because of the overall impact so what do you think of that settled labor union strike in the USA as to the outlook for the US
Market let me respond to that part of the question first the economic numbers themselves I think might present an make us feel uh a bit cautious but from actual operator in the US market that is not yet being felt directly in the market because inventory level stock level might have been improved slightly
But there’s a shortage of products and the low Image level that’s the US market situation and the market demand is strong so that’s analysis as of now looking at the other oems maybe not it’s not the case for everyone there are differentiation amongst different oems in the
US so what we actually feel there’s a strong Market tendency right now that is because of a good powerful lineup and appeal of our products and because of that good line of products we are in a good position way as to the overall Market condition we still have to be
Cautious and we need to monitor closely as to the US market itself is in that condition right now but what about the global situation you the us or the European markets are strong Market on the other hand as I said China the economic situation is getting a bit stagnant and then the
Market is changing in some of the emerging countries as well so when you look at the over global situation we have a well balanced portfolio around the world where we should do what kind of operation should be really scrutinized by us as to your second question Nagata will respond
To your second question thank you for your question the UA strike of course would that have any impact on Toyota in other companies other than Detroit too well we aren’t so sure about the possible impact on us however we feel after that the strike that basically the operations like T basically
Should have the dialogue with the employees like Toyotas the the intra company labor union and we should have a good dialogue with the employees their hard work and Company competiveness should be discussed between the management and the labor union members what about the pay raise what is a good
Optimal level pay raise in order to improve the productivity and competitiv so we have a good dialogue with employees the local entity announced yesterday for the North American company they have the regular pay rights and then they announced the result of the uh the settlement as I said the employees made a great
Contribution compar in comparison to the other companies pay level that’s how uh we decided to revise and increase our pay level so we like to enhance the competitive Ag and it should be a good cycle and in the North America the company should really upgrade itself to
The better future really like to create a good cycle toward the better future as Miaki said that he intends to make an investment in many new areas that’s what we like to do and that’s the belief of Toyota for the future thank you thank you very much now let us entertain the last
Question for the DAT I am y a freance journalist now your numbers overwhelming well chairman AKO has saw the Seas for the for over the past past 14 years and those numbers indicate the results of that I’m sure the new management executive group will do some something that is unique to them what
Sort of seas do you think they will saw and also what will be the weaknesses that Toyota has to continue watching for well thank you for your questions it’s a very tough question as a matter of fact sewing the Seas when it comes to this new executive
Group as you’ve seen at the Tokyo Mobility shows there are new areas that we are working on right now when you saw Seas you cannot expect it to Burgin immediately and you don’t know whether the Seas were swn by yourself or someone who before you but anyway it’s an allout
Effort of the entire company under the new executive team nurturing new ideas we would like to explore new possible business domains and as we do so daily several years later we will look back at what we did and what we discussed and find that we have done
Several years ago has been a very good decision and have flourished so what are the weaknesses of Toyota as you asked as I mentioned earlier if I if we become complacent and lose focus in what we do that will turn out to be a major weakness so what is our
Cause what why do we work each and every day and why do we make strides forward those are the things that we would like to continue talking with our employees to make sure that we are aligned we would like to raise the level of the entire automotive industry of
This country and we will do our very best in contributing to that end and for that purpose I thank you in advance for your understanding and your cooperation thank you very much so this concludes all the question and answer session so we would like to ask these speakers to stand
Up again would like to thank you very much for your participation thank you
Tokyo, Japan, November 1, 2023―Toyota Motor Corporation (TMC) announced today its 2Q financial results for the fiscal year ended March 31, 2024. The press briefing can be watched via the following link.
More information: https://global.toyota/en/newsroom/corporate/39935672.html
Toyota Motor Corporation Official Global Website: https://global.toyota/en/
Toyota Motor Corporation on Twitter: http://www.twitter.com/ToyotaMotorCorp/
