ANNUAL REPORT 2014
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Contents
Page 60
Overview of
Four Business Units
Consolidated Performance
Highlights
Management and
Corporate Information
President’s Message
Special Feature
Review of Operations
Financial Section
Investor Information
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Selected Financial Summary (U.S. GAAP)
Consolidated Segment Information
Consolidated Quarterly Financial Summary
Management’s Discussion and Analysis of Financial Condition and Results of Operations [13 of 14]
Consolidated Financial Statements
Management’s Discussion and Analysis of Financial Condition and Results of Operations
common stocks and purchase of marketable secu-
rities and security investments.
41.79%, and maturity dates ranging from 2014 to
2047. The current portion of long-term debt
increased during fiscal 2014 by ¥245.2 billion, or
9.1%, to ¥2,949.6 billion and the non-current por-
tion increased by ¥1,209.0 billion, or 16.5%, to
¥8,546.9 billion. The increase in total borrowings
resulted mainly from an increase in medium-term
notes. As of March 31, 2014, approximately 43% of
long-term debt was denominated in U.S. dollars,
14% in Japanese yen, 11% in Australian dollars,
and 32% in other currencies. Toyota hedges interest
rate risk exposure of fixed-rate borrowings by enter-
ing into interest rate swaps. There are no material
seasonal variations in Toyota’s borrowings
Liquid Assets*
Shareholders’ Equity and Equity Ratio
˾
˾ Shareholders’ equity bb Equity ratio (Right scale)
(
¥ Billion)
(¥ Billion)
15,000
(%)
60
10,000
Property, plant and equipment increased during
fiscal 2014 by ¥790.0 billion, or 11.5%, primarily
reflecting fluctuations in foreign currency translation
rates and the increase in the capital expenditures,
partially offset by the impacts of depreciation charg-
es during the year.
1
1
2,500
0,000
50
40
30
20
10
0
8
6
4
2
,000
,000
,000
,000
0
7
5
2
,500
,000
,500
0
Accounts and notes payable increased during
fiscal 2014 by ¥99.4 billion, or 4.7%. This increase
was due mainly to the increase in production vol-
ume in the fourth quarter of fiscal 2014.
FY ’10
’11 ’12 ’13 ’14
Cash and cash equivalents, time deposits, marketable debt securities and
FY ’10
’11
’12
’13
’14
*
investment in monetary trust funds
Accrued expenses increased during fiscal 2014
by ¥127.6 billion, or 5.8%. This increase was due
mainly to the increase in product quality related
expenses.
the Company — Business Overview — Governmental
Regulation, Environmental and Safety Standards” in
Toyota’s annual report on Form 20-F.
foreign currency translation rates.
Inventories increased during fiscal 2014 by
requirements.
As of March 31, 2014, Toyota’s total interest
bearing debt was 112.8% of Toyota Motor
Corporation shareholders’ equity, compared with
116.3% as of March 31, 2013.
¥178.9 billion, or 10.4%, to ¥1,894.7 billion. This
increase was due mainly to the fluctuations in
foreign currency translation rates.
Income taxes payable increased during fiscal
2014 by ¥438.5 billion, or 280.7%. This increase
was due mainly to the increase in income before
income taxes and equity in earnings of affiliated
companies.
Cash and cash equivalents were ¥2,041.1 billion
as of March 31, 2014. Most of Toyota’s cash and
cash equivalents are held in Japanese yen or in
U.S. dollars. In addition, time deposits were ¥180.2
billion and marketable securities were ¥2,046.8 bil-
lion as of March 31, 2014.
Total finance receivables, net increased during
fiscal 2014 by ¥1,669.8 billion, or 13.8%, to
¥13,731.2 billion. This increase was due mainly to
the fluctuations in foreign currency translation rates
and an increase in the number of financing con-
tracts. As of March 31, 2014, finance receivables
were geographically distributed as follows: in North
America 57.1%, in Asia 11.4%, in Europe 10.8%, in
Japan 8.9% and in Other 11.8%.
The following table provides information for credit
rating of Toyota’s short-term borrowing and long-
term debt from rating agencies, Standard & Poor’s
Ratings Group (S&P), Moody’s Investors Services
(Moody’s), and Rating and Investment Information,
Inc. (R&I), as of May 31, 2014. A credit rating is not
a recommendation to buy, sell or hold securities. A
credit rating may be subject to withdrawal or revi-
sion at any time. Each rating should be evaluated
separately of any other rating.
Toyota’s total borrowings increased during fiscal
2014 by ¥2,195.6 billion, or 15.5%. Toyota’s short-
term borrowings consist of loans with a weighted-
average interest rate of 2.57% and commercial
paper with a weighted-average interest rate of
0.49%. Short-term borrowings increased during fis-
cal 2014 by ¥741.2 billion, or 18.1%, to ¥4,830.8
billion. Toyota’s long-term debt consists of unse-
cured and secured loans, medium-term notes,
unsecured notes and long-term capital lease obliga-
tions with interest rates ranging from 0.00% to
Liquid assets, which Toyota defines as cash and
cash equivalents, time deposits, marketable debt
securities and its investment in monetary trust
funds, increased during fiscal 2014 by ¥1,954.5 bil-
lion, or 28.7%, to ¥8,759.0 billion.
Trade accounts and notes receivable, less allow-
ance for doubtful accounts increased during fiscal
Marketable securities and other securities invest-
ments, including those included in current assets,
increased during fiscal 2014 by ¥2,189.6 billion, or
33.1%, reflecting an increase in the fair values of
S&P
A-1+
AA-
Moody’s
P-1
Aa3
R&I
—
AA+
2
014 by ¥64.5 billion, or 3.3%, to ¥2,036.2 billion.
Short-term borrowing
Long-term debt
This increase was due mainly to the fluctuations in
