TOYOTA MOTOR CORPORATION (TMC) FY2011

TMC group companies are Toyota Lexus Scion Daihatsu Hino Motors, Ltd DENSO Toyota Industries Fuji Heavy Industries (16.5%) Toyota Financial Service

Overview Founded: August 28, 1937 Headquarters: Toyota city Aichi, Japan One of the largest automobile manufacturers No.1 global automaker 2010 8,557,351 Units sold in 2010 Held 11% share of the total global auto market

Headquarters, Toyota City

Consolidated Financial Statements

Liquidity analysis Liquidity ratios measure the company's ability to meet its short-term obligations. Current ratio Quick ratio Cash ratio

Current ratio 2011 = Current assets / Current liabilities =11829755/10790990 =1.10 2010 = Current assets / Current liabilities =13073604/10686214 =1.22

Quick ratio 2011 = Total quick assets / Current liabilities =9402175/10790990 =0.871 2010 = Total quick assets / Current liabilities =10507783/10686214 =0.98

Cash ratio 2011 = Total cash assets / Current liabilities =3510018/10790990 =0.33 2010 = Total cash assets / Current liabilities =4051635/10686212 =0.38

Net working capital 2011 = Current assets - Current liabilities =11829755 - 10790990 =1038765 2010 = Current assets - Current liabilities =13073604 - 10686214 =2387390

Activity Analysis Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory. Inventory turnover Inventory turnover in days Debtors turnover ratio Average collection period

Creditors turnover ratio Average payment period Working capital turnover ratio

Inventory turnover ratio 2011 = Net revenues / Inventories =18993688/1304242 =14.56 2010 = Net revenues / Inventories =18950973/1422373 =13.32

Inventory turnover in days

Debtors turnover ratio 2011 = Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts =18993688/1449151 =13.11 2010 = Net revenues ÷ Trade accounts and notes receivable, less allowance for doubtful accounts =18950973/1886273 =10.05

Average collection period 2011 = 365 / Debtors turnover =365/13.11 =28 2010 = 365 / Debtors turnover =365/10.05 =36

Creditors turnover ratio 2011 = Net revenues / Accounts payable =18993688/1503072 =12.64 2010 = Net revenues / Accounts payable =18950973/1956505 =9.69

Average payment period 2011 = 365 / Payables turnover =365/12.64 =29 2010 = 365 / Payables turnover =365/9.69 =38

Working capital turnover ratio 2011 = Net revenues / Net working capital =18993688/1038765 =18.28 2010 = Net revenues / Net working capital =18950973/2387390 =7.93

Profitability analysis Profitability ratios measure the company's ability to generate profitable sales from its resources (assets). Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Equity (ROE) Return on Assets (ROA)

Gross profit margin 2011 = 100 × Gross profit / Net revenues = 100 x 3637448 / 18993688 = 19.15% 2010 = 100 × Gross profit / Net revenues = 100 x 3691778 / 18950973 = 19.48%

Operating profit margin 2011 = 100 × Operating income (loss) / Net revenues = 100 x 468279 / 18993688 = 2.46% 2010 = 100 × Operating income (loss) / Net revenues = 100 x 147516 / 18950973 = .78%

Net profit margin 2011 = 100 × Net income (loss) / Net revenues = 100 x 408183 / 18993688 = 2.14% 2010 = 100 × Net income (loss) / Net revenues = 100 x 209456 / 18950973 = 1.11%

Return on equity 2011 = 100 × Net income (loss) / shareholders’ equity = 100 x 408183 / 10332371 = 3.95% 2010 = 100 × Net income (loss) / shareholders’ equity = 100 x 209456 / 10359723 = 2.02%

Return on assets 2011 = 100 × Net income (loss) / Total assets = 100 x 408183 / 29818166 = 1.37% 2010 = 100 × Net income (loss) / Total assets = 100 x 209456 / 30349287 = 0.69%

The BIG THREE comparison

Comparison with major competitors Profitability analysis Toyota GM Volkswagen AG Gross Profit Margin 19.15% 17.2% 17.11% Operating Profit Margin 2.47% 8.7% 11.4% Net Profit Margin 2.15% 7.2% 10.7% Return on Equity 3.95% 28.7% 32.10% Return on Assets 1.37% 6.6% 3.08%

Comparison with major competitors Activity analysis Toyota GM Volkswagen Inventory Turnover 14.56 8.7 5.6 Inventory Turnover in Days 25 xx Debtors Turnover Ratio 13.11 15.5 12.4 Average Collection Period 28 Creditors Turnover Ratio 12.64 Average Payment Period 29 Working Capital Turnover Ratio 15.19 18.0 5.77

Comparison with major competitors Liquidity Analysis Toyota GM Volkswagen Current Ratio 1.10 1.3 1.2 Quick Ratio 0.87 0.8 0.9 Cash Ratio 0.33 xx