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Stock Review: Toyota Motor lifts 6% in past quarter

Dateline: Thursday August 22, 2019

Toyota Motor Corporation (TO:7203), Japan's largest Transportation Equipment company by market cap, has lifted JPY415.0 (or 6.4%) in the past quarter to close at JPY6,906.0. Compared with the Nikkei 225 Index which fell 655.4 points (or 3.1%) in the past quarter, this represented a relative price increase of 9.5%. The volume was 0.8 times average trading per quarter of 351.9 million shares. The stock has jumped JPY1,786.31 (or 34.9%) in the past five years. Compared with the Nikkei 225 Index which has risen 32.3% over the same period, this is a relative price increase of 2.5%.

Stock Summary

CurrencyJapanese Yen (JPY) 1 USD = 106.44 JPY
LastJPY6,906.0
Shares Outstanding3,260,000,000
SectorTransportation Equipment
Market CapJPY22,513.6 billion (US$211.5 billion)
52-Week Range(JPY)5,937.69 - 7,244.00
Ave Daily Volume5.5 million

INDEX

SECTION 1 THE PAST WEEK

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 ONGOING BEARISH PARAMETERS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 8 TOYOTA MOTOR PEER GROUP ANALYSIS & RANKING

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

SECTION 10 TOYOTA MOTOR FINANCIALS

SECTION 11 TOYOTA MOTOR BOARD OF DIRECTORS

SECTION 12 TOYOTA MOTOR PATENTS

SECTION 13 CORPORATE PROFILE

SECTION 14 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: Toyota Motor stock was up JPY111.0 or 1.6% in the past week. Volume in the week was 0.6 times average trading of 27.5 million shares. It outperformed the Nikkei 225 index in 3 out of 5 days.

DayToyota MotorClose price [JPY]Price change %Relative change %Comment
WednesdayConsolidates after 2 days of consecutive rises6,909.000.3Price/MAP50 above 1 and rising
TuesdayRises for a second consecutive day, a two-day rise of 1.8%6,909.00.5-0.03Price/MAP50 above 1 and rising
MondayAdds JPY270.6 billion (US$2.5 billion) in MCap, top heavyweight rise in Nikkei 225 Index6,873.01.20.5Top Rise
FridayFalls for a second consecutive day, a two-day fall of 0.9%6,790.0-0.1-0.1Price fall on slipping relative strength
ThursdayDecreases on average volume6,795.0-0.80.4Steepest Fall

SECTION 2 TODAY'S BEARISH SIGNALS

2.1 Downtrend

Past Quarter:

- In the last 21 trading sessions there has been a net decline of 2.7%; the stock has retreated ten times and the biggest one day decline was 2.4% on August 06.

2.2 Overvaluation

Price/Sales

- Price/Sales of 0.74 versus sector average of 0.5 and market average of 0.7. We estimate the shares are trading at a current year Price/Sales of 0.7 and a forward year Price/Sales of 0.7.

Price to Book

- The Price to Book of 1.1 higher than average of 0.9 for the Transportation Equipment sector. We estimate the shares are trading at a current year Price to Book of 1 and a forward year Price to Book of 1.

2.3 Other Bearish Signals

- Total Liabilities/ EBITDA of 13.7 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- Return on Capital Employed of 6.8% versus sector average of 6.9%.

Annual Trend in Revenue, EPS and EBITDA:

5-years average annualized earnings growth rate of 2.5%

- Profit growth and EBITDA growth have shown signs of deterioration in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Mar 192.9-22.7-12.8
Mar 186.239.117.9

SECTION 3 TODAY'S BULLISH SIGNALS

3.1 Uptrend

Today's Volatility:

The 4.7% discount to 12-month high of JPY7,244.0 against the 16.3% premium to 12-month low of JPY5,937.69 suggests the stock continues to push for new highs.

Today its volatility (highest price minus lowest price/lowest price) of 0.8% was 0.6 times the average daily volatility of 1.4%, up from 0.6% on Tuesday.

Price/Moving Average Price and MACD:

- The Price/MAP of 1.03 for 7203 is higher than the Price/MAP for the Nikkei 225 Index of 0.92.

- The price to 50-day EMAP ratio is 1.0, a bullish indicator. In the past 50 days this ratio has exceeded 1.0, 18 times suggesting further upside. The 50-day EMAP has increased to JPY6,799.74. An increase is another bullish indicator.

- The price to 200-day MAP ratio is 1.03, a bullish indicator. In the past 200 days this ratio has exceeded 1.03, 18 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of JPY6,788.58 is higher than the 200-day MAP of JPY6,698.62, a bullish indicator. The 200-day MAP has increased to JPY6,698.62. An increase is another bullish indicator.

Past Week:

- In the past week, volume was 0.6 times average and the shares were up 1.6%. Thursday's close price is at a 0.5% premium to its 5-day Volume Weighted Average Price (VWAP) of JPY6,872.70.

Past Quarter:

- Rises to Falls: In the last three months the number of rises outnumbered falls 33:25 or 1.3:1.

Relative Strength (6 months):

- The stock has a 6-month relative strength of 73 in the Japan market indicating it has outperformed 73% of the market.

3.2 High Price Performance Indicators and rank of Toyota Motor in the Japan market:

DescriptionValueRank In Market
MCapJPY22,513.6 billionIn Top 1%
Today's Trading TurnoverJPY24.6 billion (US$231 million)In Top 1%
Volatility %0.8In Top Quartile
Price/MAP501.02In Top Quartile

3.3 Undervaluation

Price/Earnings

- Price/Earnings of 10.6 versus sector average of 11.1 and market average of 14.2. We estimate the shares are trading at a current year P/E of 11.3 and a forward year P/E of 10.7.

Dividend Yield

- The relative yield of the stock, defined by its yield of 3.2%, divided by average yield of dividend yielding stocks in the Nikkei 225 Index of 3.2% is 100.9%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued.

- The company is cash rich with Cash to Market Capitalisation at 10.0%.

Brand Value/Enterprise Value

- Brandirectory have estimated Toyota Motor brand value at JPY2,765.2 billion (US$26 billion). The Brand Value represents 6.4% of the estimated Enterprise Value of JPY43,382.7 billion (US$407.6 billion). Enterprise Value is defined as MCap of JPY22,513.6 billion plus net debt of JPY20,869.2 billion.

3.4 Other Bullish Signals

- Return on Equity of 9.7% versus sector average of 8.0% and market average of 8.5%.

- Return on Assets of 3.8% versus sector average of 3.2% and market average of 1.4%.

- Net profit margin has averaged 7.8% in the last 3 years. This is better than the sector average of 5.4% and suggests a high margin of safety.

- As per the Du Pont analysis, Return on Equity of 9.7% is better than sector average of 8.0%. This is computed as net profit margin of 7.1% times asset turnover [sales/assets] of 0.58 times leverage factor [total assets/shareholders' equity] of 2.5.

Quarterly Trend in Revenue, Net Profit and Net Profit Margin:

- Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Mar 19 [Q4]-0.71544.9
Dec 18 [Q3]6.7-69.12.2

SECTION 4 ONGOING BEARISH PARAMETERS

4.1 Past 4 Quarters Sequential EPS growth averaged 3.5%:

Quarterly ReportEPS (JPY)Growth %
Q4/2019156.0-32.8
Q3/2019232.033.3
Q2/2019174.0-18.7
Q1/2019214.032.1

The most recent quarter (Q4/2019) showed a decline of 32.8% in sequential growth of Quarterly EPS. There have been two rises and two declines in the past 4 quarters. Average quarterly growth in the past 4 quarters was muted at 3.5%.

4.2 Past 5 years Annual EPS growth:

Annual ReportEPS (JPY)Growth %
2019650.55-22.7
2018842.039.1
2017605.47-17.7
2016735.366.9
2015687.6619.6

Average Annual Compounded rate of growth in EPS for the 5 years was muted at 2.5%. There have been three rises and two declines in the past 5 years.

4.3 Dividend payout < Market Average

Dividend Payout (%)33.82
Market Average (%)60.66
Spread (PP)-26.84

The dividend payout ratio of 33.8% is less than the market average of 60.7% for dividend paying stocks.

4.4 High Debt to Equity and increasing

YearsDebt to Equity (%)
Mar 201997.98
Mar 201897.12
Mar 2017105.35
Mar 201686.41
Mar 2015113.04

The debt to equity ratio of 98.0% is above a safe benchmark figure of 70%. Moreover, it has deteriorated from 97.1% a year ago.

4.5 % Growth in EPS & RPS

(All figures in %)

Sequential growth in EPS (Q4 vs Q3, 2019)-32.8
Sequential growth in RPS (Q4 vs Q3, 2019)-1.3
PCP growth in EPS (Q4 2019 vs Q4 2018)-3.7
PCP growth in RPS (Q4 2019 vs Q4 2018)5.2

EPS growth: Sequential EPS growth (Q4 vs Q3, 2019) was down 32.8% and PCP EPS growth (Q4 2019 vs Q4 2018) was down 3.7%.

RPS growth: Sequential growth in Revenue per share (Q4 vs Q3, 2019) was down 1.3% and PCP growth in Revenue per share (Q4 2019 vs Q4 2018) was up 5.2%.

4.6 Low Performance Indicators and rank in the Japan market:

DescriptionValueRank In Market
Total Debt to Equity1.0In Bottom Quartile
Earnings Yield %9.4In Bottom Quartile
Cash to MCap %10.0In Bottom Quartile

4.7 Declining ADVT past five years

Avg. Daily Volume Traded 12 months ended Aug 22, million shares

YearADVT
20195.5
20186.3
20177.6
201611.3
20159.0

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 38.6% to 5.5 million shares.

4.8 Declining Average Daily Turnover

Past five years, 12 months ended Aug 22 (JPY billion)

YearAverage Daily Turnover
201935.6
201842.0
201743.5
201662.1
201557.0

In the past five years, average daily share turnover has decreased 37.4% to JPY35.6 billion (US$334.9 million). This suggests decreased liquidity.

4.9 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]

- Positive net income.

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 MCap: 5-Year Increase

In the past 5 years Market Capitalization has increased by JPY1,860.1 billion from JPY20,653.5 billion to JPY22,513.6 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.

PriceMCap (JPY B)MCap (US$ B)
LastJPY6,906.022,513.6211.5
1 Year agoJPY6,662.0122,425.5202.9
2 Years agoJPY5,778.6120,091.4184
3 Years agoJPY5,457.9120,114.8201.1
4 Years agoJPY6,625.7526,039.3210.9
5 Years agoJPY5,119.6920,653.5200.3

5.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the real rate of return has averaged 10.9%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in 7203 would have produced a return of 7.0%.

7203Close (JPY)Dividends (JPY)Capital Gain / (Loss) %% YieldAnnual Return %
Aug 226,9062203.73.37.0
1 Yr ago6,662.0122015.33.819.1
2 Yrs ago5,778.612105.93.89.7
3 Yrs ago5,457.91210(17.6)3.2(14.5)
4 Yrs ago6,625.7520029.43.933.3

Close 5 years ago JPY5,119.69

- The average annual compound return on the share price in the last 5 years was 9.8%, exceeding the average annual compound return on the Nikkei 225 Index of 5.8%.

5.3 High Performance Indicators and rank in the Japan market:

DescriptionValueRank In Market
Annual RevenueJPY30,225.7 billion (US$284 billion)In Top 1%
MCap$US211.5 billionIn Top 1%
Turnover in QuarterJPY1,946.2 billionIn Top 1%
Volatility %0.8In Top Quartile
Price/MAP501.02In Top Quartile

5.4 Increased VWAP

Past five years, 12 months ended Aug 22 (JPY)

YearHigh PriceVWAPLow Price
20197244.06645.285937.69
20187443.566801.345688.59
20176645.325785.095058.36
20166994.955698.044453.46
20157632.956546.294936.9

In the past five years Volume Weighted Average Price (VWAP) has increased by 1.5% to JPY6,645.28. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

5.5 Period-based Price Change %

3-Year price change of 26.5% for 7203 outperformed the change of 24.7% in the Nikkei 225 index for a relative price change of 1.9%.

Price Change %QuarterYear3 Years
72036.43.726.5
Sector*-2.7-16.5-4.7
Nikkei 225 index-3.1-7.224.7

* Transportation Equipment

5.6 Satisfies four criteria of Benjamin Graham

- The P/E of 10.6 multiplied by the P/NTA of 1.1 is 11.6. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

-"Total debt less than tangible book value"; total debt of JPY20150.2 Billion is less than tangible book value of JPY20565.2 Billion.

-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there have been 2 declines in earnings in the last 5 years.

- The trailing twelve months P/E of 10.6 is below its Cyclically Adjusted Price Earnings (CAPE) of 15.8. Further, the CAPE is below the mid-range of 18 to 28 for most stocks historically. As well, the CAPE is below its historical average of 22.0 over the last 6 years. CAPE was developed by economist Robert Shiller based on methodology from Benjamin Graham and David Dodd to smooth earnings across a 10-year period based on moving averages over quarters.

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

6.1 YTD Aggregate Volumes

+Tokyo: 7203.TO year-to-date volume is 727,310,000; volume 99.85% of aggregate. Average daily volume is 4,947,687.

Year-to-date (YTD) Volume Weighted Average Price (VWAP): JPY6,727.0.

+OTCBB: TOYOF.OTCBB year-to-date volume is 1,105,088; volume 0.15% of aggregate. Average daily volume is 9,956.

Year-to-date (YTD) VWAP: $US61.0.

Using the current exchange rate of USD1 equals 106.4488JPY, the shares are at a 3.5% discount to the year-to-date VWAP on Tokyo.

+YTD Aggregate volume: there were 728,415,088 shares of Toyota Motor worth JPY4,899.8 billion traded year-to-date.

6.2 The Best 3 weeks in the past quarter

Mon-FriChange %Nikkei 225 index Change %RPC %Vol Ind [1 is avg]
Jun 03-073.21.41.80.8
Jul 15-193.1-14.10.3
Jul 01-0532.20.80.7

In the past quarter the week beginning Monday June 03 saw the highest weekly rise of 3.2% for a relative price increase of 1.8%.

6.3 The Worst 3 weeks in the past quarter

Mon-FriChange %Nikkei 225 index Change %RPC %Vol Ind [1 is avg]
Jul 29-Aug 02-3.1-2.6-0.51.1
May 27-31-1.8-2.40.60.9
Aug 05-09-1.3-1.90.61

In the past quarter the steepest fall of 3.1% took place in the week beginning Monday July 29.

6.4 Stock Trading Volume and Turnover in the past 3 months

TurnoverUS$18.3 billion
Avg daily turnoverUS$309.9 million
Volume286,340,000
Avg daily volume4,853,220

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

7.1 Past Quarter

The stock rose 33 times (51.6% of the time), fell 25 times (39.1% of the time), was untraded 5 times (7.8% of the time) and was unchanged 1 time (1.6% of the time). The aggregate volume was 0.9 times average trading of 5.5 million shares. The value of JPY1,000 invested 3 months ago is JPY1,064 [vs JPY971 for the Nikkei 225 Index] for a capital gain of JPY64.

7.2 Year-to-Date

Toyota Motor gains 10% in 2019

Toyota Motor Corporation (TO:7203), gained JPY613.72 (or 9.8%) year-to-date (YTD) in 2019 to close at JPY6,906.0 today. Compared with the Nikkei 225 Index which has risen 3.1% YTD, this is a relative price increase of 6.7%.

7.3 Past Year

Toyota Motor strengthens 4% in past year

Toyota Motor Corporation (TO:7203), strengthened JPY243.99 (or 3.7%) in the past year to close at JPY6,906.0 today. Compared with the Nikkei 225 Index which has fallen 7.2% over the same period, this is a relative price increase of 10.8%.

The stock rose 115 times (47.7% of the time), fell 114 times (47.3% of the time), was untraded 9 times (3.7% of the time) and was unchanged 3 times (1.2% of the time). The value of JPY1,000 invested a year ago is JPY1,071 [vs JPY922 for the Nikkei 225 Index], including a capital gain of JPY37 and dividend reinvested of JPY34.

7.4 Present Value of JPY1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]

PVJPY1,0003 mo ago1 yr ago3 yrs ago
7203.TOJPY1,064JPY1,071JPY1,403
Transportation Equipment sectorJPY973JPY818JPY946
Nikkei 225 IndexJPY971JPY922JPY1,243

The present value of JPY1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded JPY1,063.

7.5 Present Value of JPY1,000 invested 30 years ago

- The present value of JPY1,000 (PV1000) invested thirty years ago in Toyota Motor is JPY5,062, including a capital gain of JPY3,278 and dividend reinvested of JPY784.

- 30 years Multiplier in JPY = 5.062x

- Annualized Total Shareholder Returns (TSR) in JPY = 5.5%

7.6 Annualised Period-based Total Shareholder Returns [TSR %]

TSR %1 yr3 yrs5 yrs10 yrs20 yrs30 yrs
7203.TO7.111.89.8105.65.5

The annualised period-based Total Shareholder Returns [TSR %] for 1 yr, 3 yrs, 5 yrs, 10 yrs, 20 yrs and 30 yrs has consistently exceeded 5.4%.

SECTION 8 TOYOTA MOTOR PEER GROUP ANALYSIS & RANKING

8.1 Global Peer Group (all figures in USD): Key Financials

In its Global Peer Group of 9 companies 7203 is ranked first by MCap, Revenue, Net Profit, Total Assets and third by Relative Strength, PV$1000.

Name (Code)Relative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Rank of 7203313111
Toyota Motor (7203)78211.5B1,106.7283.9B17.7B487.8B
United Parcel Service Class B (UPS)7581B1,011.271.9B4.8B50B
Canadian National Railway (CNR)7766.8B1,075.110.8B3.3B31B
Honda Motor (7267)4042.1B815.8149.2B5.7B191.8B
FedEx (FDX)4441.2B644.669.7B540M54.4B
Deutsche Post (DPW)7839.6B971.168.3B2.3B56B
Canadian Pacific Railway (CP)8533.6B1,201.65.5B1.5B16B
Airports of Thailand (AOT)7232.6B1,193.92B816.6M6.1B
Denso (6902)5632.5B904.050.4B2.4B54.4B

Global Peer Group: Relative Value Indicators

7203 is ranked first by P/Book, second by P/E, fifth by P/S and eighth by Turnover Rate.

CodeCountry CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w HiRetention Ratio
Rank of 72032518
7203JPJPY6,906.010.60.81.142.84.666.2
UPSUS$US115.9321.01.1107.24.031.5
CNRCACAD123.3720.96.25.138.03.266.3
7267JPJPY2,476.07.20.367.627.067.6
FDXUS$US158.1876.80.63.8243.638.6
DPWDEEUR29.0917.20.617.71,144.85.932.0
CPCACAD321.6223.66.17.051.40.779.6
AOTTHTHB70.2539.916.17.043.47.940.3
6902JPJPY4,386.013.20.663.527.557.1

8.2 BuySellSignals Fundamentals Valuation Ranking: Toyota Motor vs Tokyo Market

Out of 3,560 stocks and 22 units in the Japan Market, Toyota Motor is ranked 904th by Yield, 1063rd by P/Earnings, 1282nd by ROE and 1378th by EBITDA Margin.

Tokyo Avg7203RankRank 1Rank 2Rank 3Lowest Rank
Yield (%)2.63.290412.2 59909.6 86289.2 74800.03 4779
P/Earnings14.2x10.6x10631.8x 91271.9x 65022.2x 1434-
ROE (%)8.59.7128270.6 309268.5 268760.95 6502-
EBITDA Margin7.98.1137881.2 716478.9 662078.5 6459(80.2) 6721
Price/Net Tangible Assets1.3x1.1x17570.1x 84210.1x 83370.1x 8416-
ROA (%)1.43.8176837.7 746232.7 237131.2 26870.01 7868
Premium to 52-Wk Low (%)9.416.318110.1 25400.1 22090.1 5741417.5 6096
Total Debt/Equity0.8x0.98x269949586417179911.99x 8511
Discount to 52-Wk High (%)19.84.7333791.2 982089.8 143586.02 78060.1 7596

Negative values are shown in brackets.

8.3 Market Share

Toyota Motor vs Transportation Equipment sector [Transportation Equipment sector Total in Brackets]

Revenue of JPY30,225.7 billion (US$284 billion)[30.4% of aggregate sector revenue of JPY103,905.8 billion; up from 30.2% in the previous year.]

Net Profit of JPY1,882.9 billion (US$17.7 billion) [44.0% of aggregate sector net profit of JPY4,326.8 billion; up from 40.8% in the previous year.]

8.4 Share in Index

Toyota Motor is a constituent of the following indices. Its market capitalisation accounts for 14.9% of the combined MCap of the TOPIX Core30 Index.

Index NameMCap of Index (USD B)MCap as % of Index
TOPIX Core30 Index1,419 14.9
TOPIX 100 Index2,813 7.5
Nikkei 225 Index3,099 6.8
Nikkei 300 Index3,972 5.3
TOPIX 500 Index4,280 4.9
JPX-Nikkei Index 4004,300 4.9
TOPIX 1000 Index4,638 4.6
Nikkei 500 Index4,775 4.4

8.5 Global Rank [out of 47,300 stocks] and Rank of Toyota Motor in the Asia Region [out of 23,391 stocks]

DescriptionValueGlobal RankIn Asia Region
MCap (US$)211.5B345
Total Assets (US$)487.8B16442
Revenue (US$)283.9B155
Net Profit (US$)17.7B3613
Return on Equity %9.713,4397,290
Net Profit Margin %7.114,7788,275
Price to Book1.116,2299,991
Price/Earnings10.67,6334,999
Yield %3.210,8945,086
PV1000 (1Year) USD*1,1079,6124,479
US$* Change (1Year) %9.69,6504,610

* 1 year ago USD 1 = JPY 110.55

Aug 22, 2019: USD 1 equals JPY 106.44

8.6 Rank of Toyota Motor in the Nikkei 225 Index [out of 222 stocks], in the Total Tokyo Market [out of 3683 stocks] and in the Transportation equipment sector [out of 87 stocks]

DescriptionValueIn Nikkei 225 IndexIn Total Tokyo MarketIn Transportation equipment sector
Return on Equity %9.7951,24522
Net Profit Margin %7.1801,01511
Price to Book1.11191,85874
Price/Earnings10.6831,10347
Yield %3.29590940
PV1000 (1Year) JPY1,071307254

8.7 Independent Ratings

+ Top 50 BCG:

Toyota Motor Corporation was ranked 8 in Boston Consulting Group's list of Top 50 Most Innovative Companies 2016; a deterioration over a year from rank 6 in 2015.

+ Fortune's Change of the World list 50:

It was ranked 3 out of 50 companies in the Fortune's Change of the World list 2015.

+ Clarivate 100:

It is ranked in the Top 100 innovators by Clarivate Analytics.

+ PwC 100:

It was ranked 15 by MCap as at March 31, 2015 by PwC in the Top 100 Global companies; an improvement over 6 years from rank 23 as at March 31, 2009.

+ FT 500:

It is the 7th largest by revenue in the FT Global 500.

+ Fortune 500:

It was ranked 5 by total revenues in the Fortune 500 annual list for 2017; an improvement over a year from rank 8 in 2016.

+ Newsweek 500:

It was ranked 107 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 11% in Energy productivity, 8.6% in Waste productivity and 7.9% in Water productivity.

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 6.

+ Forbes 2000:

It is the 8th largest by revenue in the Forbes Global 2000.

+ BuySellSignals/News Bites:

It is placed 753/3485 in BuySellSignals News Bites' ranking of Japan performers in the past year, a percentile ranking of 78.

+ Vanguard Total World Stock ETF 7701:

The stock was one of 7701 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 11,100 shares in the period May 31, 2019 to Jun 30, 2019 worth $US73,562,212 at an estimated Volume Weighted Average Price (VWAP) of $US6,627.23. As at Jun 30, 2019, the Vanguard Total World Stock ETF held 827,394 shares worth $US50,934,627 or 0.29% by value of the ETF's portfolio [Ranked 37 out of 7701 by value and 1 out of 1332 for Japan].

8.8 Long-Term Fundamental Ranking: 3 out of 5 [5 is best]

Toyota Motor is ranked number 1 out of 91 listed transportation equipment companies in the Japan with a market capitalization of JPY22,513.6 billion (US$211.5 billion).

Within its sector it has a relatively moderate P/E of 10.6 and high P/S of 0.7.

It has a strong relative ROE of 9.7% and ROA of 3.8%. The company paid a dividend of JPY120.0 in the last twelve months. The dividend yield is high at 3.2%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

Toyota Motor Corporation, the ADR market's largest Auto Manufacturers company by market cap, increased $US7.31 (or 6.0%) in the trailing 12 months to August 21, 2019 to close at $US129.88. This means the ADR has outperformed 85% of NYSE-listed ADRs in the same period. Compared with the Bank of New York Mellon Composite ADR Index which has fallen 7.1% over the same period, this is a relative price increase of 13.0%. Average daily volume of 205,189 ADRs in the trailing year was 1.2 times average daily volume in the previous year.

9.1 ADR Summary

SymbolTM
PriceUSD 129.88
% Change YTD11.9
ISINUS8923313071
CUSIP892331307
Ratio1 ADR equals 2 ordinary shares
TypeSponsored
Avg. Daily Volume205,189

SECTION 10 TOYOTA MOTOR FINANCIALS

10.1 Financials Summary

Year endedMar 2019Mar 2018Mar 2017
Sales (USD B)284276259.9
Pretax (USD B)21.524.620.6
Net (USD B)17.723.417.2
EPS (JPY)650.55842605.47

+ Net profit was down 24.5% from US$23.4 billion in 2018 to US$17.7 billion in 2019.

+ Earnings Per Share (EPS) was down 22.7% from JPY842.0 to JPY650.55.

10.2 Financial Results as reported (Annual)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In JPY Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED

DescriptionJPY MillionJPY Million
Mar 3120192018Change %
Net revenues:
Sales of products28,105,33827,420,276Up 2.5
Financing operations2,120,3431,959,234Up 8.2
Total net revenues30,225,68129,379,510Up 2.9
Costs and expenses:
Cost of products sold23,389,49522,600,474Up 3.5
Cost of financing operations1,392,2901,288,679Up 8.0
Selling general and administrative2,976,3513,090,495Down 3.7
Total costs and expenses27,758,13626,979,648Up 2.9
Operating income2,467,5452,399,862Up 2.8
Other income (expense):
Interest and dividend income225,495179,541Up 25.6
Interest expense-28,078-27,586Deterioration 1.8
Foreign exchange gain net12,40022,664Down 45.3
Unrealized gains (losses) on equity securities-341,054
Other income (loss) net-50,84345,948Deterioration
Total other income (expense)-182,080220,567Deterioration
Income before income taxes and equity in earnings of affiliated companies2,285,4652,620,429Down 12.8
Provision for income taxes659,944504,406Up 30.8
Equity in earnings of affiliated companies360,066470,083Down 23.4
Net income1,985,5872,586,106Down 23.2
Less - Net income attributable to noncontrolling interests-102,714-92,123Deterioration 11.5
Net income attributable to Toyota Motor Corporation1,882,8732,493,983Down 24.5
Net income attributable to Toyota Motor Corporation per common share
BasicJPY650.55JPY842.0Down 22.7
DilutedJPY645.11JPY832.78Down 22.5

BALANCE SHEET AS REPORTED

DescriptionJPY MillionJPY Million
Mar 3120192018Change %
Assets
Current assets:
Cash and cash equivalents3,574,7043,052,269Up 17.1
Time deposits1,126,352901,244Up 25.0
Marketable securities1,127,1601,768,360Down 36.3
Trade accounts and notes receivable less allowance for doubtful accounts of YEN25925 million at March 31 2018 and YEN16370 million at March 31 20192,372,7342,219,562Up 6.9
Finance receivables net6,647,7716,348,306Up 4.7
Other receivables568,156489,338Up 16.1
Inventories2,656,3962,539,789Up 4.6
Prepaid expenses and other current assets805,964833,788Down 3.3
Total current assets18,879,23718,152,656Up 4.0
Noncurrent finance receivables net10,281,1189,481,618Up 8.4
Investments and other assets:
Marketable securities and other securities investments7,479,9267,999,323Down 6.5
Affiliated companies3,313,7233,162,917Up 4.8
Employees receivables21,68322,562Down 3.9
Other1,275,7681,221,500Up 4.4
Total investments and other assets12,091,10012,406,302Down 2.5
Property plant and equipment:
Land1,386,3081,404,611Down 1.3
Buildings4,802,1754,659,753Up 3.1
Machinery and equipment11,857,42511,535,381Up 2.8
Vehicles and equipment on operating leases6,139,1635,934,393Up 3.5
Construction in progress651,713509,851Up 27.8
Total property plant and equipment at cost24,836,78424,043,989Up 3.3
Less - Accumulated depreciation-14,151,290-13,776,316Deterioration 2.7
Total property plant and equipment net10,685,49410,267,673Up 4.1
33,057,71232,155,593Up 2.8
Total assets51,936,94950,308,249Up 3.2
Liabilities
Current liabilities:
Short-term borrowings5,344,9735,154,913Up 3.7
Current portion of long-term debt4,254,2604,186,277Up 1.6
Accounts payable2,645,9842,586,657Up 2.3
Other payables1,102,8021,048,216Up 5.2
Accrued expenses3,222,4463,104,260Up 3.8
Income taxes payable320,998462,327Down 30.6
Other current liabilities1,335,4751,254,241Up 6.5
Total current liabilities18,226,93817,796,891Up 2.4
Long-term liabilities:
Long-term debt10,550,94510,006,374Up 5.4
Accrued pension and severance costs963,406931,182Up 3.5
Deferred income taxes1,014,8511,118,165Down 9.2
Other long-term liabilities615,599533,561Up 15.4
Total long-term liabilities13,144,80112,589,282Up 4.4
Total liabilities31,371,73930,386,173Up 3.2
Mezzanine equity
Model AA Class Shares no par value498,073491,974Up 1.2
authorized: 150000000 shares at March 31 2018 and March 31 2019
issued: 47100000 shares at March 31 2018 and March 31 2019
Shareholders' equity
Toyota Motor Corporation shareholders' equity:
Common stock no par value397,050397,050Steady
authorized: 10000000000 shares at March 31 2018 and March 31 2019
issued: 3262997492 shares at March 31 2018 and March 31 2019
Additional paid-in capital487,162487,502Down 0.1
Retained earnings21,987,51519,473,464Up 12.9
Accumulated other comprehensive income (loss)-916,650435,699Deterioration
Treasury stock at cost-2,606,925-2,057,733Deterioration 26.7
353073500 shares at March 31 2018 and 430558325 shares at March 31 2019
Total Toyota Motor Corporation shareholders' equity19,348,15218,735,982Up 3.3
Noncontrolling interests718,985694,120Up 3.6
Total shareholders' equity20,067,13719,430,102Up 3.3
Commitments and contingencies
20,565,21019,922,076Up 3.2
Total liabilities mezzanine equity and shareholders' equity51,936,94950,308,249Up 3.2

CASH FLOW AS REPORTED

DescriptionJPY MillionJPY Million
Mar 3120192018Change %
Cash flows from operating activities:
Net income1,985,5872,586,106Down 23.2
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation1,792,3751,734,033Up 3.4
Provision for doubtful accounts and credit losses80,06576,069Up 5.3
Pension and severance costs less payments31,6454,286Up 638.3
Losses on disposal of fixed assets35,90235,289Up 1.7
Unrealized losses (gains) on marketable securities339,472846Up 40,026.7
Deferred income taxes-86,594-237,961Improved 63.6
Equity in earnings of affiliated companies-360,066-470,083Improved 23.4
Changes in operating assets and liabilities and other-51,789494,543Deterioration
Net cash provided by operating activities3,766,5974,223,128Down 10.8
Cash flows from investing activities:
Additions to finance receivables-15,884,610-15,058,516Deterioration 5.5
Collection of and proceeds from sales of finance receivables14,859,10314,046,312Up 5.8
Additions to fixed assets excluding equipment leased to others-1,452,725-1,291,117Deterioration 12.5
Additions to equipment leased to others-2,286,162-2,307,590Improved 0.9
Proceeds from sales of fixed assets excluding equipment leased to others65,43771,820Down 8.9
Proceeds from sales of equipment leased to others1,385,0741,211,272Up 14.3
Purchases of marketable securities and security investments-1,840,355-3,052,916Improved 39.7
Proceeds from sales of and maturity of marketable securities and security investments2,698,7982,523,538Up 6.9
Payment for additional investments in affiliated companies net of cash acquired5,010-576Recovery
Changes in investments and other assets and other-246,811197,681Deterioration
Net cash used in investing activities-2,697,241-3,660,092Improved 26.3
Cash flows from financing activities:
Proceeds from issuance of long-term debt5,000,9214,793,939Up 4.3
Payments of long-term debt-4,442,232-4,452,338Improved 0.2
Increase in short-term borrowings164,282347,738Down 52.8
Dividends paid to Toyota Motor Corporation class shareholders-8,690-6,194Deterioration 40.3
Dividends paid to Toyota Motor Corporation common shareholders-636,116-620,698Deterioration 2.5
Dividends paid to noncontrolling interests-69,367-63,764Deterioration 8.8
Reissuance (repurchase) of treasury stock-549,637-447,818Deterioration 22.7
Net cash used in financing activities-540,839-449,135Deterioration 20.4
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents-41,641-43,588Improved 4.5
Net increase in cash and cash equivalents and restricted cash and cash equivalents486,87670,313Up 592.4
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year3,219,6393,149,326Up 2.2
Cash and cash equivalents and restricted cash and cash equivalents at end of year3,706,5153,219,639Up 15.1

Margins %

Mar 3120192018
Gross Profit Margin19.420
EBITDA Margin8.19.6
Earnings from Cont. Ops. Margin8.19.6
Net Income Margin7.19.4

10.3 Annual Report: Key Parameters

FY2019 Annual Report: Toyota Motor Net Profit down 24.5%

Toyota Motor (TO:7203) reported net profit for the year-ended 31 March 2019 of JPY1,883b ($US17.0b), down 24.5% from JPY2,494b ($US23.5b) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Total revenue up 2.9% from JPY29,379.5b ($US276.6b) to JPY30,225.7b ($US272.6b)

- Sales and marketing expenses to Sales down from 11.3% to 10.6%

- Working capital to total assets up from 0.7% to 1.3%

- Retained earnings to total assets up from 39.6% to 40.6%

- Other non-current assets to Total Assets up from 27.6% to 28.7%

- Current Debtors to Total Assets up from 18% to 18.5%

Unfavourable Changes:

- Net profit slumps 24.5% from JPY2,494.0b ($US23.5b) to JPY1,882.9b ($US17.0b)

- EPS slumps 22.7% from JPY842.0 ($US7.93) to JPY650.55 ($US5.87)

- EBIT Margin down from 9.6% to 8.1%

- EBIT to total assets down from 5.2% to 4.4%

- Profit before tax to Sales down from 9.6% to 8.1%

- Long-term investments to Total Assets down from 15.9% to 14.4%

- Total Liabilities to EBITDA of 13.7 compares unfavourably with the Joseph Piotroski benchmark of <5. This ratio has deteriorated by 18.4% from the previous year's ratio of 11.6.

- Total Liabilities to Operating Cash Flow of 8.3 compares unfavourably with the Joseph Piotroski benchmark of <4. This ratio has deteriorated by 15.7% from the previous year's ratio of 7.2.

Note:

- Total revenue to total assets steady at 0.6

- Cost of Goods Sold to Sales up from 87.1% to 88.2%

- Tax expenses to Sales up from 1.8% to 2.3%

- Debt to Equity steady at 1.0

- Current ratio steady at 1.0

- Total non-current assets to Total Assets down from 63.9% to 63.6%

- Total current assets to Total Assets up from 36.1% to 36.4%

Annual Report [Year-on-year comparison: 2019 vs 2018]

Company Name : Toyota Motor Corporation (7203)
March 312019201820192018Change
DescriptionJPY mJPY m$US m$US m(%)
Sales Revenue28,105,33827,420,276253,517.7258,134.5Up 2.5
Total Revenue30,225,68129,379,510272,643.8276,578.7Up 2.9
EBITDA2,285,4652,620,42920,615.524,668.7Down 12.8
EBIT2,285,4652,620,42920,615.524,668.7Down 12.8
Pre-Tax Profit/(Loss)2,285,4652,620,42920,615.524,668.7Down 12.8
Profit/(Loss) after Tax1,882,8732,493,98316,98423,478.4Slumps 24.5
Working Capital652,299355,7655,883.93,349.2Up 83.4
Current Assets18,879,23718,152,656170,295.8170,889.1Up 4
Current Liabilities18,226,93817,796,891164,411.9167,539.9Up 2.4
Shareholders' Funds20,565,21019,922,076185,503.7187,546.4Up 3.2
Total Liabilities31,371,73930,386,173282,981.5286,055.4Up 3.2
Total Assets51,936,94950,308,249468,485.2473,601.9Up 3.2
Current Debt9,599,2339,341,19086,587.787,938Up 2.8
Non-Current Debt10,550,94510,006,37495,172.494,200Up 5.4
Total Debt20,150,17819,347,564181,760182,138Up 4.1
Operating Cash Flow3,766,5974,223,12833,975.739,756.5Down 10.8
Net Assets20,565,21019,922,076185,503.7187,546.4Up 3.2
Net Tangible Assets20,565,21019,922,076185,503.7187,546.4Up 3.2

Year-on-year comparison of Per Share figures

March 312019201820192018Change (%)
DescriptionJPY JPY $US $US
EPS Final650.58425.97.9Slumps 22.7
   EPS Growth Factor*1.08    

* EPS Growth Factor = Net Profit growth / EPS growth

Year-on-year comparison of Performance Ratios

March 3120192018Change (%)
Return on Equity (%)9.713Down 25.4
Return on Assets (%)3.85.1Down 25.5
Total debt to net tangible assets (%)9897.1Up 0.9
Total Liabilities to EBITDA13.711.6Up 18.4
Total Liabilities to Operating Cash Flow8.37.2Up 15.7
Total Liabilities/Total Assets (Steady % from 0.6 to 0.6)0.60.6Steady
Common Size Ratios by Assets %
Total non-current assets to Total Assets 63.6 63.9 Down 0.5
Total current assets to Total Assets 36.4 36.1 Up 0.9
Other non-current assets to Total Assets 28.7 27.6 Up 4.0
Current Debtors to Total Assets 18.5 18.0 Up 2.8
Long-term investments to Total Assets 14.4 15.9 Down 9.4
Common Size Ratios by Sales %
Cost of Goods Sold to Sales 88.2 87.1 Up 1.2
Sales and marketing expenses to Sales 10.6 11.3 Down 6.0
Profit before tax to Sales 8.1 9.6 Down 15.2
Tax expenses to Sales 2.3 1.8 Up 25.0

Currency Conversion (March 31, 2019): $US1 = JPY110.86

Currency Conversion (March 31, 2018): $US1 = JPY106.22

Five-year record of growth and performance:

In the last 5 years Total Revenue averaged JPY28,615B ($US258.1B), EBITDA averaged JPY2,888.6B ($US26.1B) and Net Profit averaged JPY2,186.4B ($US19.7B). Compound Annual Growth Rate (CAGR) averaged 1.8% for Total Revenue, 0.6% for Net Profit and -9.2% for EBITDA.

DescriptionAnnual (JPY B)Annual ($US B)5-year Avg (JPY B)5-year Avg ($US B)5-year CAGR %
Total Revenue30,225.7272.628,615258.11.8
EBITDA2,285.520.62,888.626.1(9.2)
Operating Profit2,285.520.62,606.723.5(1.5)
Net Profit1,882.9172,186.419.70.6

Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE

In 2019 Net Profit Margin of 7.1% was below its 5-year Avg of 7.9% (All Figures in %)

Description20195-year Avg
EBITDA Margin8.110.4
Operating Profit Margin8.19.4
Net Profit Margin7.17.9
Return on Equity9.711.7
Return on Assets3.84.4
Return on Capital Employed6.88.2

10.4 Quarterly Report: Key Parameters

Quarterly Report Analysis Q4 2019: Toyota Motor EPS slides 33%

Toyota Motor (TO:7203), announced EPS of JPY156.0 ($US1.41) for the quarter-ended 31 March 2019 [Q4/2019], down 32.8% sequentially from JPY232.0 ($US2.1) in the previous quarter [Q3/2019].

Quarter-ended31 Mar [Q4/2019]31 Dec [Q3/2019]30 Sep [Q2/2019]
EPS, JPY156.0232.0174.0
Sequential growth in EPS %-32.7633.33-18.69
RevenueJPY7,750b ($US69.9b)JPY7,802b ($US70.4b)JPY7,311b ($US65.9b)
Sequential growth in Revenue %-0.666.71-0.7
Net ProfitJPY460b ($US4.1b)JPY181b ($US1.6b)JPY585b ($US5.3b)
Sequential growth in Net Profit %154.02-69.08-10.99

Compared with the previous corresponding period [PCP; Q4/2018], year-over-year [y.o.y.] EPS was down 3.7%, Revenue was up 2.2% and Net Profit was down 4.4%.

Quarter-ended31 Mar [Q4/2019]31 Mar [Q4/2018]
EPS, JPY156.0162.0
PCP growth in EPS %-3.722.73
RevenueJPY7,750b ($US69.9b)JPY7,583b ($US68.4b)
PCP growth in Revenue %2.211.88
Net ProfitJPY460b ($US4.1b)JPY481b ($US4.3b)
PCP growth in Net Profit %-4.4220.68

Major changes compared with previous corresponding period [Year-on-Year]:

Favourable Changes:

- Total revenue up 2.2% from JPY7,582.5b ($US71.4b) to JPY7,750.1b ($US69.9b)

Unfavourable Changes:

- Net profit down 4.4% from JPY480.8b ($US4.5b) to JPY459.6b ($US4.1b)

- EBIT to Sales down from 8.1% to 7.2%

- Profit before tax to Sales down from 8.1% to 7.2%

- Profit after tax to Sales down from 6.3% to 5.9%

Note:

- Tax expenses to Sales down from 3% to 2.3%

Currency Conversion (March 31, 2019): $US1 = JPY110.86

Currency Conversion (March 31, 2018): $US1 = JPY106.22

10.5 Average Income Tax paid

201920182017201620155-yr avg
As % of profit before tax28.919.212.218.430.921.9
As % of operating cash flow28.919.21218.420.719.8
As % of sales2.21.711.93.32

In the past 5 years, Income Tax as % of profit before tax decreased from 30.9% to 28.9%.

10.6 Dividend History

Trailing 12 months dividend has improved from JPY200 in 2015 to JPY220 in 2019.

Date PaidValue (JPY)Type
27 Mar 2019120Final
26 Sep 2018100Interim
Tr 12 Months220
28 Mar 2018120Final
27 Sep 2017100Interim
2017 - 2018220
29 Mar 2017110Final
28 Sep 2016100Interim
2016 - 2017210
29 Mar 2016110Final
28 Sep 2015100Interim
2015 - 2016210
27 Mar 2015125Final
26 Sep 201475Interim
2014 - 2015200

SECTION 11 TOYOTA MOTOR BOARD OF DIRECTORS

11.1 Board of Directors and years since appointment

NameDesignationSince Appointment
Akio ToyodaPresident, Director10 Yrs
Takeshi UchiyamadaChairman-
Didier LeroyDirector, Executive Vice President-
Teiko KudoDirector-
Sir Philip CravenDirector-
Ikuro SugawaraDirector-
Shigeki TerashiDirector, Executive Vice President4 Yrs, 4 Mos
Yoshiyuki KagawaNon-Executive Director-
Hiroshi OzuNon-Executive Director-
Haruhiko KatoNon-Executive Director-
Masahiro KatoNon-Executive Director-
Yoko WakeNon-Executive Director-
Shigeru HayakawaVice Chairman, Senior Managing Officer3 Yrs, 4 Mos
Shigeki TomoyamaExecutive Vice President-
Mitsuru KawaiExecutive Vice President-
Moritaka YoshidaExecutive Vice President-

11.2 Profiles

Akio Toyoda

President & Director

Mr. Akio Toyoda has been serving as President and Representative Director in TOYOTA MOTOR CORPORATION since June 2009. He joined the Company in April 1984. His previous titles include Vice President, Managing Director and Senior Managing Director in the Company.

Shareholder Value:

Creation of shareholder value in Toyota Motor:

Year of appointment: 2009

In the last 10 years the average annualized return to shareholders was 10.0%. The present value of JPY1,000 (PV1000) invested 10 years ago is now JPY2,590, a gain of JPY1,189 and dividend reinvested of JPY401.

Takeshi Uchiyamada

Chairman

Mr. Takeshi Uchiyamada has been serving as Chairman of the Board and Representative Director in TOYOTA MOTOR CORPORATION since June 2013. He joined the Company in April 1969. His previous titles include Managing Director, Vice President, Vice Chairman of the Board and Senior Managing Director in the Company.

Sir Philip Craven

Director

Date of birth

July 4, 1950

Home country

United Kingdom

Education

Bachelor's degree in Geography (Honours), Manchester University, 1972

Career

Oct. 1998 President, International Wheelchair Basketball Federation

Dec. 2001 President, International Paralympic Committee

Jun. 2018 Member of the Board of Directors, Toyota Motor Corporation

Teiko Kudo

Director

Date of birth

May 22, 1964

Home country

Japan

Education

Bachelor's degree in economics, Keio University, 1987

Career (* denotes currently held non-TMC position)

Apr. 1987 Joined The Sumitomo Bank

Apr. 2014 Executive Officer, Sumitomo Mitsui Banking Corporation

Apr. 2017 Managing Executive Officer*

Jun. 2018 Member of the Board of Directors, Toyota Motor Corporation

Didier Leroy

Director & Executive Vice President

Shigeki Terashi

Director & Executive Vice President

Shareholder Value:

Creation of shareholder value in Toyota Motor:

Since appointment as Director: The present value of JPY1,000 invested on the appointment date of April 01, 2015 at close price of JPY7,225.86 is JPY1,110, including a capital loss of JPY44 and dividend reinvested of JPY155.

Ikuro Sugawara

Director

Date of birth

March 6, 1957

Home country

Japan

Education

Bachelor's degree in economics, University of Tokyo, 1981

Career

Apr. 1981 Joined Ministry of International Trade and Industry

Jul. 2010 Director-General, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry (METI)

Sep. 2012 Director-General, Manufacturing Industries Bureau, METI

Jun. 2013 Director-General, Economic and Industrial Policy Bureau, METI

Jul. 2015 Vice-Minister of Economy, Trade and Industry

Jul. 2017 Advisor, METI

Aug. 2017 Executive Advisor, Cabinet Secretariat

Jun. 2018 Member of the Board of Directors, Toyota Motor Corporation

Hiroshi Ozu

Non-Executive Director

Haruhiko Kato

Non-Executive Director

Yoko Wake

Non-Executive Director

Yoshiyuki Kagawa

Non-Executive Director

Masahiro Kato

Non-Executive Director

Shigeru Hayakawa

Vice Chairman

Shareholder Value:

Creation of shareholder value in Toyota Motor:

Since appointment as Vice Chairman: The present value of JPY1,000 invested on the appointment date of April 18, 2016 at close price of JPY4,951.61 is JPY1,571, including a capital gain of JPY395 and dividend reinvested of JPY176.

Shigeki Tomoyama

Executive Vice President

Mitsuru Kawai

Executive Vice President

Moritaka Yoshida

Executive Vice President

SECTION 12 TOYOTA MOTOR PATENTS

12.1 Patents issued to Toyota Motor by the US PTO in the past quarter

In the past quarter following 58 patents were issued by the US PTO to Toyota Motor:

Issue DateTitlePatent No.
Aug 20Thermal stress compensation bonding layers and power electronics assemblies incorporating the same10,385,469
Aug 20Vehicles, electronic control units, and methods for gear shifting based on vehicle attitude10,385,965
Aug 20Cooling bond layer and power electronics assemblies incorporating the same10,388,590
Aug 20Power electronics assemblies having opticondistors and an embedded active cooling chip10,388,810
Aug 13Management of driver and vehicle modes for semi-autonomous driving systems10,377,303
Aug 13Vehicle proximity condition detection and haptic notification system10,377,307
Aug 13Cooling systems for vehicle interior surfaces10,377,407
Aug 13Multilayer composite bonding materials and power electronics assemblies incorporating the same10,381,223
Aug 13Systems and methods for determining user frustration when using voice control10,381,005
Aug 13Systems and methods for receiving and detecting dimensional aspects of a malleable target object10,380,806
Aug 13Electric power transfer system using optical power transfer10,381,497
Aug 13Simplified power conversion systems for vehicles10,381,967
Aug 13Wireless in-wheel electric assemblies with integrated in-wheel cooling and vehicles incorporating the same10,381,901
Aug 06Vibration isolator mechanism with adjustable force-deflection characteristics10,371,229
Aug 06Systems and methods for assuring and improving process quality10,372,117
Jul 30Meter cluster assembly10,363,819
Jul 30Vehicle suspension system bracket pocket dimensional verifier tools and methods of use10,365,185
Jul 23Systems and methods for dynamic vehicle control according to traffic10,358,129
Jul 23Smart necklace with stereo vision and onboard processing10,360,907
Jul 16Cloaking devices constructed from reflection boundaries and half-mirrors and vehicles comprising the same10,351,062
Jul 16Cloaking devices with half Fresnel lenses and plane mirrors and vehicles comprising the same10,351,063
Jul 16Apparatuses and methods for testing vehicle stone chipping10,351,112
Jul 16Integrated fuel pipe clamp with simple ergonomic fitting structure10,352,490
Jul 16Automatic brake application for one pedal driving10,351,111
Jul 16System and method for detection of vehicle lane departure10,352,704
Jul 16Fault diagnosis in power electronics using adaptive PCA10,354,462
Jul 09Turn signal modulator systems and methods10,343,596
Jul 09Systems and methods for smooth stopping of a vehicle10,343,684
Jul 09Autonomous vehicle routing based on chaos assessment10,345,110
Jul 09System and method for monitoring fuses in a vehicle10,348,080
Jul 09Two-piece deck post10,343,727
Jul 02Stud welding gun set up teaching tool10,335,885
Jul 02Truck bed rear cargo tie down engagement structure10,336,238
Jul 02Methods, systems, and media for qualitative and/or quantitative indentation detection10,339,647
Jul 02RGB-D scene labeling with multimodal recurrent neural networks10,339,421
Jun 25Systems and methods for adaptive braking using brake wear data10,328,802
Jun 25Magnesium battery having an electrolyte containing cations of magnesium and sodium10,333,169
Jun 25Manifold structures having an integrated fluid channel system and assemblies comprising the same10,334,756
Jun 25Compact volume scan end-fire radar for vehicle applications10,333,209
Jun 25Self-assembled or reconfigurable structures for heat flow control devices10,330,400
Jun 25Sensor blind spot indication for vehicles10,328,949
Jun 11Automatic air quality monitoring and improvement systems10,315,492
Jun 11Cup holder assemblies having light emitting assemblies for console assemblies of vehicles10,315,561
Jun 11Personalized active safety systems10,315,648
Jun 11Dolly train with improved operability10,315,714
Jun 11Peak efficiency recommendation and sharing10,317,908
Jun 11System, method, and computer-readable storage medium for determining road type10,319,225
Jun 11Vehicle attachment point positioning in relation to a vehicle environment10,317,909
Jun 11Operator and manufacturing quality traceability10,317,891
Jun 11Cloaking devices constructed from reflection boundaries and half-mirrors and vehicles comprising the same10,317,685
Jun 11Two-stage catalyst for removal of NO.sub.x from exhaust gas stream10,316,722
Jun 04Height actuated self-activating safety gate10,309,154
Jun 04Formation of slurry for high loading sulfur cathodes10,312,500
Jun 04In situ formation of sulfur particles using organic acids in the presence of polymer functionalized carbon10,312,517
May 28Clip installation tool10,300,587
May 28Multi-information display software switch strategy10,303,339
May 28Vehicles and vehicle roof structures including front header extensions10,300,957
May 28Deceleration control in a hybrid vehicle10,300,907

12.2 Patents issued to Toyota Motor by the EPO in the past year

In the past year following 93 patents were issued by the European Patent Office (EPO) to Toyota Motor:

Issue DateTitlePatent No.
Aug 15, 2019SPEECH PROVIDING METHOD, SPEECH PROVIDING SYSTEM AND SERVERUS2019251973 (A1)
Aug 15, 2019APPARATUS FOR DETERMINING ARRANGEMENT OF MOBILE SHOP VEHICLES, METHOD FOR DETERMINING ARRANGEMENT, AND COMPUTER-READABLE STORAGE MEDIUMUS2019253851 (A1)
Aug 14, 2019GRILLE SHUTTER DEVICEDE102018126330 (A1)
Aug 14, 2019METHOD FOR PRODUCING HEAT-SHIELDING FILMES2722651 (T3)
Aug 07, 2019VEHICULAR COOLING DEVICEEP3521090 (A1)
Aug 07, 2019INFORMATION PROCESSING APPARATUS AND VEHICLEEP3522082 (A1)
Aug 01, 2019CONTROL DEVICE FOR HYBRID VEHICLESWO2019146401 (A1)
Jul 24, 2019EXHAUST TEMPERATURE MEASUREMENT APPARATUS AND EXHAUST TEMPERATURE MEASUREMENT METHODEP3514344 (A1)
Jul 17, 2019HYBRID VEHICLEEP3511186 (A1)
Jul 17, 2019VEHICLEEP3511217 (A1)
Jul 11, 2019Fuel cell systemDE112004000413 (B4)
Jun 14, 2019FUEL CELL SEPARATORCA3027406 (A1)
May 22, 2019CONTROL SYSTEM FOR HYBRID VEHICLEEP3486102 (A1)
May 22, 2019DELIVERY ASSISTANCE DEVICE, DELIVERY ASSISTANCE METHOD, AND NON-TRANSITORY COMPUTER-READABLE STORAGE MEDIUM STORING DELIVERY ASSISTANCE PROGRAMEP3486846 (A1)
May 22, 2019VEHICULAR PANEL STRUCTUREEP3486150 (A1)
May 15, 2019ELECTRIC BRAKE DEVICE AND VEHICULAR BRAKE SYSTEM INCLUDING ELECTRIC BRAKE DEVICEEP3483017 (A1)
May 15, 2019SERVER DEVICE AND IN-VEHICLE DEVICEEP3483788 (A1)
May 15, 2019VEHICLE INFORMATION COMMUNICATION SYSTEM AND ENVIRONMENT IMPROVEMENT SYSTEM, AND SERVER USED THEREINEP3484194 (A2)
May 15, 2019RESCUE SYSTEM AND RESCUE METHOD, AND SERVER USED FOR RESCUE SYSTEM AND RESCUE METHODEP3483852 (A1)
May 15, 2019VEHICLE FRONT BODY STRUCTURE HAVING BRACKET COUPLING STRUCTUREEP3483042 (A1)
May 08, 2019VEHICLE REAR STRUCTUREEP3480041 (A1)
May 08, 2019FEE SETTING DEVICE, METHOD AND SYSTEMEP3480796 (A1)
May 08, 2019VEHICLE AIR CONDITIONING DEVICEEP3480056 (A1)
May 08, 2019VEHICLE DOOR AND METHOD OF PRODUCTION OF VEHICLE DOOREP3480042 (A1)
May 01, 2019VEHICLEEP3476671 (A1)
May 01, 2019VEHICLEEP3477094 (A1)
May 01, 2019START-STOP IN A SELF-DRIVING VEHICLEEP3476684 (A2)
Apr 29, 2019AUTOMATIC TRANSMISSIONSG10201806138Q (A)
Apr 24, 2019ELECTRIC VEHICLEEP3473462 (A1)
Apr 24, 2019DRIVE DEVICEEP3474432 (A1)
Apr 24, 2019MOVABLE BODY UTILIZATION SYSTEM, SERVER, MOVABLE BODY, AND METHOD FOR UTILIZING MOVABLE BODYEP3474204 (A1)
Apr 24, 2019DRIVE DEVICE FOR HYBRID VEHICLEEP3473465 (A1)
Apr 17, 2019SIDE RAIL AND MANUFACTURING METHOD FOR SIDE RAILEP3470304 (A1)
Apr 17, 2019SIDE RAIL AND MANUFACTURING METHOD OF SIDE RAILEP3470305 (A1)
Apr 16, 2019Structure of mounting power control device in vehicleUS10259339 (B1)
Apr 16, 2019Autonomous optimization of parallel parking space utilizationUS10262537 (B1)
Mar 27, 2019DRIVING SUPPORT DEVICEEP3459820 (A1)
Mar 27, 2019HYBRID VEHICLE AND CONTROL METHOD THEREOFEP3460994 (A1)
Mar 20, 2019HEAT EXCHANGE SYSTEM FOR VEHICLEEP3456561 (A1)
Mar 20, 2019ROTATING ELECTRIC MACHINEEP3457534 (A1)
Mar 13, 2019METHOD OF JOINING BY LASER WELDING TOGETHER A PLURALITY OF WELDING ALUMINIUM OBJECTS AND CORRESPONDING WELDING STRUCTUREEP3453480 (A1)
Mar 13, 2019SEATBELT CONTROL DEVICEEP3453577 (A1)
Feb 14, 2019DIODE AND SEMICONDUCTOR DEVICEUS2019051648 (A1)
Feb 14, 2019VEHICLE FUNCTION CONTROL DEVICE AND VEHICLE FUNCTION CONTROL SYSTEMUS2019053021 (A1)
Feb 06, 2019RECOMMENDATION GUARANTEE SYSTEMEP3438909 (A1)
Feb 06, 2019WIRELESS POWER RECEIVING DEVICEEP3439135 (A1)
Jan 31, 2019REINFORCEMENT STRUCTURE AT FRONT SIDE OF VEHICLE CABINUS2019031246 (A1)
Jan 30, 2019METHOD OF WELDING LAMINATED METAL FOILSSG10201804044P (A)
Jan 02, 2019PILLAR FRAMEWORK STRUCTURE AND VEHICLE BODY MODULE STRUCTUREEP3421332 (A1)
Jan 02, 2019AUTHENTICATION DEVICE AND AUTHENTICATION METHODEP3422253 (A1)
Dec 26, 2018CHARGING SYSTEM, AND METHOD FOR CONTROLLING VEHICLE AND CHARGING SYSTEMEP3418108 (A1)
Dec 20, 2018Gateway Selection for a Virtual Parked Vehicle NetworkUS2018368059 (A1)
Dec 19, 2018LASER-BEAM WELDING METHOD AND LASER-BEAM WELDING APPARATUSEP3415264 (A1)
Dec 05, 2018OIL CIRCULATION SYSTEM OF INTERNAL COMBUSTION ENGINEEP3409911 (A1)
Dec 05, 2018EXHAUST PURIFICATION SYSTEM OF INTERNAL COMBUSTION ENGINEEP3409931 (A1)
Nov 28, 2018HYBRID VEHICLEEP3406498 (A1)
Nov 28, 2018CONNECTING AND DISCONNECTING DEVICE FOR CLUTCHEP3406927 (A1)
Nov 21, 2018CONTROL APPARATUS FOR INTERNAL COMBUSTION ENGINEEP3404238 (A1)
Nov 21, 2018TORQUE CONVERTEREP3404287 (A1)
Nov 21, 2018CONTROL DEVICE FOR VEHICLEEP3404296 (A1)
Nov 15, 2018DRIVING ASSIST APPARATUSDE102018111112 (A1)
Nov 14, 2018VEHICLE CONTROL APPARATUSEP3401575 (A1)
Nov 07, 2018AUTOMATIC TILTING VEHICLEEP3398797 (A1)
Nov 07, 2018INTEREST DETERMINATION SYSTEM, INTEREST DETERMINATION METHOD, AND STORAGE MEDIUMEP3399470 (A1)
Nov 07, 2018NONAQUEOUS BATTERY AND METHOD OF PRODUCING THE SAMEEP3399574 (A1)
Oct 18, 2018Airbag-Vorrichtung fur Beifahrersitz und Airbag-FaltverfahrenDE102018106877 (A1)
Oct 18, 2018FAHRZEUG UND STEUERUNGSVERFAHREN FUR EIN FAHRZEUGDE102018205657 (A1)
Oct 18, 2018NEUTRALISATIONSVORRICHTUNG FUR FAHRZEUGEDE102018205110 (A1)
Oct 18, 2018BrennstoffzellensystemDE102018108777 (A1)
Oct 18, 2018WARNEINRICHTUNGDE102018108570 (A1)
Oct 18, 2018Steuerungsvorrichtung fur eine BrennkraftmaschineDE102018108294 (A1)
Oct 18, 2018Fernstartsystem, Zentral-Server und FahrzeugDE102018108131 (A1)
Oct 18, 2018Autonome Fahrvorrichtung und BenachrichtigungsverfahrenDE102018108034 (A1)
Oct 18, 2018DICHTUNG UND BRENNSTOFFZELLENSTAPEL, DER DIE DICHTUNG ENTHALTDE102018107985 (A1)
Oct 18, 2018HOCHDRUCKBEHALTERDE102018107949 (A1)
Oct 18, 2018SPRUHPULVER UND VERFAHREN ZUR ABLAGERUNGEINER SPRUHBESCHICHTUNG UNTER VERWENDUNGDESSELBENDE102018107412 (A1)
Oct 18, 2018HOCHDRUCKBEHALTERDE102018107948 (A1)
Oct 17, 2018INTERNAL COMBUSTION ENGINEEP3388653 (A1)
Oct 17, 2018JOINING METHOD AND JOINING APPARATUSEP3388688 (A1)
Oct 17, 2018JOINING METHOD AND JOINING STRUCTUREEP3388695 (A1)
Oct 17, 2018ENDLESS METAL RING MANUFACTURING METHODEP3388711 (A1)
Oct 17, 2018PISTON WITH PISTON RINGSEP3388717 (A1)
Oct 10, 2018VEHICLE FRONT PORTION STRUCTUREEP3385126 (A1)
Oct 10, 2018EXHAUST PURIFICATION SYSTEM OF INTERNAL COMBUSTION ENGINEEP3385519 (A1)
Oct 10, 2018PARKING LOT, PARKING LOT MANAGEMENT SYSTEM, AND PARKING LOT MANAGEMENT METHODEP3385933 (A1)
Oct 10, 2018EXHAUST PURIFICATION SYSTEM OF INTERNAL COMBUSTION ENGINEEP3385518 (A1)
Oct 10, 2018ABNORMALITY DIAGNOSIS SYSTEM OF AMMONIA DETECTION DEVICEEP3385517 (A1)
Sep 26, 2018VIEWING DEVICE FOR VEHICLEEP3378702 (A2)
Sep 26, 2018CONTROL APPARATUS FOR INTERNAL COMBUSTION ENGINE AND CONTROL METHOD FOR INTERNAL COMBUSTION ENGINEEP3379059 (A1)
Sep 26, 2018SEMICONDUCTOR DEVICE, MANUFACTURING METHOD FOR SEMICONDUCTOR DEVICE, AND ELECTRODE PLATEEP3379572 (A1)
Sep 26, 2018SERVER AND CHARGING SYSTEMEP3379689 (A1)
Sep 26, 2018CONTROL DEVICE AND CONTROL METHOD FOR INTERNAL COMBUSTION ENGINEEP3379049 (A1)
Sep 26, 2018VEHICLE UNDERSTRUCTUREEP3378705 (A1)

12.3 Number of Patents Issued to Toyota Motor by the US Patent Office and the European Patent Office (Past 12 Months)

There were a total of 364 patents issued to Toyota Motor in the past 12 months. The highest number (46) were issued in October, 2018.

MonthNo. of Patents Issued
August22
July25
June20
May41
April32
March35
February24
January27
December22
November40
October46
September30
Total (Past 12 Months)364

12.4 Rank by patents issued in the past 12 months: Toyota Motor vs JAPAN stocks

There are 3,903 listed companies in Japan. Of these, 690 (or 17.7%) companies were issued a total of 43,679 patents. Of these 40,306 were issued by the USPTO and 3,373 by the European Patent Office in the past 12 months, an average of 63 patents per company. The highest number of patents [Rank 1] were issued to Canon (7751) at 3379. When ranked by patents issued, Canon rank is 1/690. The rank for Toyota Motor is 24/690.

JAPAN Avg7203RankRank1Rank2Rank3% of Total
63364243379 77512019 67581964 67520.8

12.5 Rank by patents issued in the past 12 months: Toyota Motor vs Transportation equipment sector

There are 91 active stocks in the Transportation equipment sector in Japan market. Of these, 57 companies were issued a total of 6,432 patents. Of these 6,013 were issued by the USPTO and 419 by the European Patent Office in the past 12 months, an average of 113 patents per company. In the Transportation equipment sector, the highest number of patents [Rank 1] were issued to Toyota Industries (6201) at 1793. A total of 364 patents were issued to 7203 [Rank 4 out of 57].

Transportation equipment sector Avg7203RankRank1Rank2Rank3% of Total
11336441793 62011026 72671007 690225.0

12.6 Design Patents issued to Toyota Motor by the US PTO in the past year

In the past year 1 Design patent was issued by the US PTO to Toyota Motor:

Issue DateTitlePatent No.
Jul 02, 2019Suspension stabilizer bar endlink assemblyD852,685

SECTION 13 CORPORATE PROFILE

13.1 Stock Identifiers

ISIN: JP3633400001

13.2 Contact details

Websitehttp://www.toyota-global.com/
Physical Address1 Toyota-cho Toyota City Aichi, 471-0826 Japan
Phone81 56 52 82 12 1
Fax81 56 52 35 80 0

13.3 Industry & Sector

Classification LevelName of Sector
Business SectorTransportation
Economic SectorIndustrials

13.4 Activities

Toyota Motor primarily conducts automobile, financial and other businesses. Its business segments are automotive operations, financial services operations and all other operations. Its automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. Toyota's financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles.

SECTION 14 GLOSSARY

ADVT: Average Daily Volume of shares Traded

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

PV1000: Present value of 1000 invested 1 year/'n' years ago

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

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