Mobility Strategy and Innovation - Toyota has accelerated new initiatives including the multi-pathway strategy and the development of the on-board software platform Arene OS, aiming to create a mobility society with diverse and value-creating cars[5] - The company is focusing on transforming into a mobility company, emphasizing products that integrate with social systems and enhance energy and data mobility[6] - Toyota is developing hydrogen engines as part of its efforts to address carbon neutrality challenges, driven by a mindset of innovation and collaboration[7] - Toyota Mobility Concept focuses on transitioning cars to mobility, emphasizing electrification, intelligence, and diversification, with specific actions like the "multi-pathway strategy" for carbon neutrality[37] - Software Defined Vehicle (SDV) development is a key initiative, aiming to integrate vehicles with social systems and enhance co-creation with industry partners[37] - Toyota plans to invest in next-generation battery EVs and hydrogen mobility as part of its mid- to long-term strategy[37] - Development of the "Arene" software platform aims to seamlessly connect vehicles to lifestyles, offering advanced experiences and services[39] - Toyota's "Mobility for All" concept aims to provide mobility solutions across land, ocean, and air, with collaborations to achieve carbon neutrality in logistics[39] - Toyota's transformation into a mobility company includes initiatives like the e-Palette and new business models catering to diverse needs[45] - Toyota is focusing on a multi-pathway strategy, including hybrid vehicles, battery EVs (BEVs), and hydrogen mobility, with BEVs being developed as "software-defined vehicles (SDVs)" to enhance customer value[129] - The company is developing compact and lightweight power units for BEVs and positioning this year as its first truly multi-pathway year[129] - Toyota is building a foundation for SDVs with the development of the Arene on-vehicle operating system and plans to integrate generative AI to enhance automated driving and mobility value[130] Corporate Governance and Leadership - The Toyota Group Vision, formulated in January 2024, emphasizes invention, mutual gratitude, and a culture of ever-better manufacturing (monozukuri)[8] - Toyota's Board of Directors is structured to include individuals with diverse skills and experiences, ensuring balanced decision-making and supervision of management[23] - The company is focusing on creating a corporate culture that prioritizes customer and product perspectives, with leadership actively engaging at the frontline (genba)[8] - Toyota is promoting a culture of mutual gratitude and continuous improvement, aiming to ensure the group's relevance and contribution to future societal needs[8] - Akio Toyoda attended 94% (15/16) of the Board of Directors meetings and owns 23,466,258 shares of TMC[28] - Shigeru Hayakawa attended 100% (16/16) of the Board of Directors meetings and owns 330,127 shares of TMC[31] - Koji Sato attended 100% (13/13) of the Board of Directors meetings and owns 55,863 shares of TMC[35] - Hiroki Nakajima attended 100% (13/13) of the Board of Directors meetings[26] - Yoichi Miyazaki attended 100% (13/13) of the Board of Directors meetings[26] - Simon Humphries attended 100% (13/13) of the Board of Directors meetings[26] - Ikuro Sugawara attended 100% (16/16) of the Board of Directors meetings[26] - Masahiko Oshima attended 100% (13/13) of the Board of Directors meetings[26] - Emi Osono attended 100% (13/13) of the Board of Directors meetings[26] - Akio Toyoda has 24 years of tenure as a Director and is the Chairman of the Board of Directors[28] - Mr. Ikuro Sugawara has contributed to discussions on certification misconduct at Group companies and made recommendations for effective group governance[50] - Mr. Ikuro Sugawara has advised on intra-Group cross-shareholdings and strategic shareholdings, and the need for a flexible review of the "multi-pathway strategy" toward carbon neutrality[50] - Sir Philip Craven has pointed out the need to examine materiality thresholds at the Sustainability Meeting and to seek messages that resonate with employees and stakeholders[56] - Sir Philip Craven has emphasized the importance of non-financial KPIs in compensation and the importance of growing together with stakeholders[56] - Mr. Masahiko Oshima has accurately pointed out the need for reviewing strategic shareholdings while building partnerships across industries[60] - Mr. Masahiko Oshima has emphasized the importance of dialogue with investors and the effective use of assets and appropriate risk-taking[60] - Ms. Emi Osono has pointed out that a strength of the Toyota Group can be found in maintaining diversity and moderately connecting with each other[64] - Ms. Emi Osono has contributed to setting financial and non-financial KPIs and evaluation processes based on the roles and expectations of executives[64] - Ms. Emi Osono has emphasized the importance of promoting women's participation in the workforce and specific initiatives to achieve these goals[64] - Ms. Emi Osono is registered as an independent director with Japanese stock exchanges and TMC plans to maintain her registration upon reappointment[65] - TMC has entered into a limited liability agreement with Ms. Emi Osono to limit liabilities as per the Companies Act[65] - Tokio Marine & Nichido Fire Insurance Co., Ltd., where Ms. Emi Osono serves as an Outside Director, received a business improvement order from the Financial Services Agency on December 26, 2023[65] - TMC has a directors and officers liability insurance agreement covering damages and court costs, with premiums fully borne by TMC, set to expire in July 2024[66][73] - TMC plans to renew the directors and officers liability insurance agreement with similar provisions after July 2024[66][73] - Mr. Ryuji Sakai will resign as Audit & Supervisory Board Member due to falling under TMC's revised Independence Assessment Criteria[68] - Hiromi Osada is nominated as a candidate for Outside Audit & Supervisory Board Member, with TMC planning to register her as independent upon approval[71] - TMC plans to enter into a limited liability agreement with Hiromi Osada upon her appointment[72] - Hiromi Osada will be insured under TMC's directors and officers liability insurance agreement upon her appointment[72] - TMC's Independence Assessment Criteria exclude individuals with transactions exceeding 2% of consolidated net sales or assets in the last three business years[80] - TMC disclosed that Dr. George Olcott, an Outside Audit & Supervisory Board Member, received compensation of 12 million yen per year from June 2020 through March 2022, with no conflicts of interest identified[83] - TMC plans to elect 1 Substitute Audit & Supervisory Board Member to prepare for potential shortages, with Ms. Kumi Fujisawa nominated as a candidate[88] - Ms. Kumi Fujisawa, nominated as a Substitute Outside Audit & Supervisory Board Member, owns TMC shares as of March 31, 2024, and has no special interests with TMC or its subsidiaries[91] - Outside members of the Board of Directors and Audit & Supervisory Board members attended 100% of meetings in FY2024, contributing insights based on their experience[187] Climate and Sustainability Initiatives - The company is aligning its climate-related lobbying activities with the goals of the Paris Agreement, as reflected in proposed amendments to its Articles of Incorporation[14] - TMC's 2023 climate-related lobbying report scored 21/100 in the InfluenceMap assessment, showing no improvement from the 2022 report[95] - TMC increased the number of reviewees in its climate-related lobbying report from 6 to 12 organizations in 2023 and added third-party evaluations for transparency[98] - TMC plans to further improve the transparency and comprehensiveness of its climate-related lobbying report in 2024, including addressing instances of misalignment with the Paris Agreement[98] - TMC is the only Japanese company issuing a report on climate-related lobbying activities as of May 2024[97] - TMC's Board of Directors opposes a shareholder proposal to amend the Articles of Incorporation for annual climate-related lobbying reports, citing ongoing improvements and transparency efforts[97] - TMC aims to achieve carbon neutrality by 2050 and is focusing on multi-pathway strategies, including electricity and hydrogen, to align with future energy needs[98] - TMC has engaged in over 10 dialogues with the proposing shareholder since 2021 to improve its climate-related lobbying disclosures[97] - The company has sold 23.15 million electrified vehicles (BEVs, FCEVs, HEVs, and PHEVs) since 1997, contributing to a reduction of approximately 176 million tons of greenhouse gas emissions[99] - The company aims to reduce average GHG emissions from new vehicles by more than 33% by 2030 and more than 50% by 2035 compared to 2019 levels[99] - The company is collaborating with CP Group in Thailand to produce hydrogen from biogas and has developed a system to reuse used batteries from discarded vehicles as stationary batteries[113][114] Financial Performance and Strategy - Global sales for FY2024 (April 2023 through March 2024) reached 10,309 thousand units, with China accounting for 1,902 thousand units (18.4%) and Asia (excluding China) at 1,403 thousand units (13.6%)[115][116] - Consolidated sales revenues for FY2024 were 45,095,325 million yen, with automotive sales contributing 41,080,731 million yen[122] - Operating income for FY2024 increased significantly to 5,352,934 million yen, compared to 2,725,025 million yen in FY2023[122] - Net income attributable to the company for FY2024 was 4,944,933 million yen, with basic earnings per share at 365.94 yen[122] - Consolidated capital expenditures for FY2024 were 2,010.8 billion yen, while R&D expenditures were 1,202.3 billion yen[124] - The company plans to increase dividends by 15 yen year-on-year to 75 yen and set a maximum share repurchase limit of 1 trillion yen for year-end returns[125] - The company has reduced the number of strategic shareholdings from 228 issuers in FY2020 to 141 issuers in FY2024, with the balance decreasing from 2,282.3 billion yen to 3,777.7 billion yen[102] - The maximum cash compensation for members of the Board of Directors is set at 3.0 billion yen per year, with a maximum of 0.3 billion yen for outside members[166] - The maximum share compensation for members of the Board of Directors is set at 4.0 billion yen per year[166] - The remuneration for Audit & Supervisory Board members is set at 30 million yen or less per month[166] - Short-term incentives (STI) account for around 20% of the Annual Total Remuneration, while long-term incentives (LTI) account for around 50%[171] - Performance-based remuneration, combining STI and LTI, accounts for around 70% of the Annual Total Remuneration[171] - The consolidated operating income for FY2024 is evaluated with a reference value of 2.5 trillion yen[173] - The fluctuation of TMC's market capitalization for FY2024 is evaluated with a reference value of 25.5 trillion yen for TMC and 1,990.68 for TOPIX[173] - The total shareholder return for FY2024 is evaluated with a reference value of 196.2% for TOPIX[173] - The return on equity for FY2024 is evaluated with a reference value of 8%[173] - The progress of efforts to resolve sustainability issues is evaluated based on six key issues (materiality)[173] - Performance-based remuneration for retired members of the Board of Directors is set based on consolidated operating income, market capitalization fluctuation, and individual performance, with potential income tax compensation for foreign members[181] - The maximum share compensation for TMC's Board of Directors is set at 4.0 billion yen per year, with a maximum of 4 million shares to be allotted annually[182][183] - The clawback rule introduced in November 2023 allows TMC to recover overpaid performance-based remuneration from Board members if financial statements are restated, covering the three fiscal years prior to the restatement[184] - Total compensation for members of the Board of Directors in FY2024 was 3,542 million yen, including 1,712 million yen in share compensation (518,000 shares)[185] - Total compensation paid to the Accounting Auditor (PricewaterhouseCoopers Japan LLC) for FY2024 was 868 million yen, with additional benefits totaling 2,077 million yen[190] Subsidiaries and Partnerships - Toyota Financial Services Corporation has a capital of 78,525 million yen and is fully owned by Toyota[153] - Hino Motors, Ltd. is 50.11% owned by Toyota with a capital of 72,717 million yen[153] - Daihatsu Motor Co., Ltd. is fully owned by Toyota with a capital of 28,404 million yen[153] - Toyota Motor Manufacturing, Kentucky, U.S.A. Inc. has a capital of USD 1,180,000 and is fully owned by Toyota[153] - Toyota Motor Europe NV/SA has a capital of EUR 3,504,469 thousand and is fully owned by Toyota[154] - Toyota Motor Manufacturing France has a capital of EUR 268,079 and is fully owned by Toyota[154] - Toyota Motor (China) Investment Co., Ltd. has a capital of USD 118,740 and is fully owned by Toyota[154] - Toyota Kirloskar Motor Private Ltd. is 89% owned by Toyota with a capital of INR 7,000,000[154] - P.T. Astra Daihatsu Motor is 61.75% owned by Toyota with a capital of IDR 894,370,000[154] - Toyota Motor Corporation has a total of 16,314,987,460 shares issued[155] - The company is collaborating with Mitsubishi Fuso Truck and Bus Corporation to rebuild Hino Motors through business integration[137] - The company is transferring the development and certification of automobile engines from Toyota Industries to Toyota to prevent recurrence of irregularities[137] Operational and Risk Management - The company is reducing daily production volume from 14,500 units to 14,000 units to create reserve capacity and improve workplace communication and safety[141] - Toyota is strengthening internal control and risk management in subsidiaries, including the establishment of a new Governance, Risk, and Compliance Management Division at Daihatsu[142] - The company is expanding its auditing of subsidiaries, focusing on corporate culture, workplace environment, and legal compliance, and using tools like governance inspection check sheets[144] - Toyota is increasing communication among top management through president and executive vice president meetings to build open relationships[140] - The company is working on recurrence prevention measures for certification irregularities, including outsourcing compact car development and certification to Toyota[136] - TMC's system to ensure business operation appropriateness includes compliance with the Toyota Philosophy, Guiding Principles, and Toyota Code of Conduct, with a focus on open workplace culture and continuous improvement[194][196]

Core Insights - The ninth-generation Camry has commenced production at Toyota's Kentucky plant, emphasizing the company's commitment to electrification and job stability in the U.S. [1][2] - Toyota has invested over $18.6 billion in U.S. manufacturing operations since 2021 to support electrification efforts, including a recent $1.3 billion investment in the Georgetown facility [3][2] - The Camry has been a significant product for Toyota, with over 11 million units assembled and the plant employing nearly 10,000 workers [1][3] Investment and Employment - Toyota's Kentucky plant has received more than $10 billion in investments and has been a key site for the assembly of popular models like the Camry, which has been America's best-selling passenger car for 22 consecutive years [1][3] - The company is committed to providing secure employment and has a history of reinvesting profits into the plant to prepare team members for future production opportunities [1][2] Electrification Strategy - The 2025 Camry is powered exclusively by the fifth-generation Toyota Hybrid System, aligning with Toyota's multi-pathway approach to electrification [1] - The new investment will also support the assembly of a new three-row battery electric SUV for the U.S. market, enhancing Toyota's range of electrified products [2][3] Company Overview - Toyota has been a significant player in North America for over 65 years, employing more than 63,000 people and contributing to the design, engineering, and assembly of nearly 47 million vehicles [4] - By 2025, Toyota plans to open its 13th plant in North Carolina, which will manufacture automotive batteries for electrified vehicles, further solidifying its commitment to sustainable mobility [4]

Financial Data and Key Metrics Changes - The actual operating income for the fiscal year ended March 2024 was JPY 5.35 trillion, with a forecast of JPY 4.3 trillion for the fiscal year ending March 2025 [3][9] - Consolidated financial results included sales revenues of JPY 45.0953 trillion, operating income of JPY 5.3529 trillion, income before income taxes of JPY 6.965 trillion, and net income of JPY 4.9449 trillion [6][9] - The year-end dividend was increased to JPY 45 per share, totaling over JPY 1 trillion in annual dividends [4][8] Business Line Data and Key Metrics Changes - Consolidated vehicle sales for the fiscal year was 9.443 million units, representing a 7% increase from the previous fiscal year [5] - Sales of electrified vehicles constituted 37.4% of total sales, with a significant increase in hybrid vehicle sales [5][9] - The forecast for consolidated vehicle sales for the fiscal year ending March 2025 is expected to be 9.5 million units, a slight increase from the previous year [9] Market Data and Key Metrics Changes - Operating income increased in Japan, North America, Europe, and Asia, primarily due to price revisions and strong sales of high-margin vehicles [7] - The business in China maintained sales volumes due to steady demand for hybrid electric vehicles [7] - The North American market showed strong sales for hybrid vehicles, with inventory days significantly lower than traditional vehicles [38] Company Strategy and Development Direction - The company aims to transform into a mobility company, focusing on increasing the added value of cars and creating a mobility-based society [15][16] - Investments of JPY 1.7 trillion are planned for transformation into a mobility company, alongside JPY 380 billion for human resources [4][13] - The strategy includes embracing battery electric vehicles (BEVs) and hydrogen mobility, with a focus on creating a diverse multi-pathway lineup of vehicles [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic and semiconductor shortages but emphasized the importance of strengthening the profit structure [11][12] - The company aims to maintain its profit structure while accelerating future investments to enhance the attractiveness of the automotive industry [12][13] - The management expressed gratitude for the support from stakeholders and emphasized the need for collaboration to achieve sustainable growth [11][20] Other Important Information - The company plans to retire 520 million shares, equivalent to JPY 2 trillion, as part of its share repurchase strategy [4][8] - The company is focusing on digitalization and improving productivity through initiatives like J-SLIM and AI-based supply and demand systems [11][20] Q&A Session All Questions and Answers Question: Assessment of financial results and forecast for the next fiscal year - The President highlighted the importance of manufacturing and delivering cars, attributing the success to the strong supply chain and efforts from various stakeholders [25][26] Question: Challenges related to human resources and supply chain - The President discussed the need for structural reform and the importance of enhancing efficiency while addressing the lack of reserve capacity [28][30] Question: Importance of hybrid vehicles and North American market - The President confirmed that hybrid vehicles have become mainstream, especially in North America, where they are selling extremely well [38] Question: Long-term human resource investment - The President indicated that the investment in human resources is necessary for long-term growth and will continue to a certain extent [40][41] Question: Future of BEVs and multi-pathway strategy - The President reaffirmed the commitment to the multi-pathway strategy, emphasizing the need to respond to customer demand while preparing for future BEV offerings [42][43] Question: Sales projections for BEVs - The President explained that the increase in BEV sales projections reflects a conservative assessment of actual demand and infrastructure readiness [45][46] Question: Current status of Woven City and SDVs - The President provided an update on Woven City, highlighting its role in experimenting with mobility and the integration of vehicles with social systems [48]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Toyota Motor Corporation (TM) .Toyota Motor currently has an average broke ...

Toyota Motor Corporation (TM) is slated to release fourth-quarter fiscal 2024 results on May 8, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $2.91 per share and $67.21 billion, respectively.For the fiscal fourth quarter, the consensus estimate for TM’s earnings per share has moved down by 58 cents in the past 90 days. Its bottom-line estimates imply a decline of 5.21% from the year-ago reported number.The Zacks Consensus Estimate fo ...

Research project seeks to utilize a new process for recovering critical battery materialsProcess can be used on end-of-life automotive batteries as well as manufacturing scrapANN ARBOR, Mich., April 30, 2024 /PRNewswire/ -- Toyota Motor North America ('Toyota') announces that it has entered a Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Energy's Argonne National Laboratory to investigate the development of a direct recycling process for lithium-ion batteries, which are ...

CARSON, Calif., April 30, 2024 /PRNewswire/ -- California State University, Dominguez Hills (CSUDH) and Toyota Motor North America (TMNA) today launched a multipronged program focused on transportation equity for the university and its surrounding communities based on the idea of "Mobility for All."  CSU Dominguez Hills and Toyota Join Forces to Improve Mobility for Underserved Communities "Knowledge is a catalyst for progress, and collaboration with industry partners is essential for advancing academic ...

Good news – you don’t have to dump your Tesla (NASDAQ:TSLA) stock and other electric vehicle stocks to be prepared for what’s coming. Electric cars are crucial, but hybrid electric vehicles are also gaining traction. Toyota Motor (NYSE:TM) is among the vanguard, so you’ll definitely want to add some Toyota stock to your holdings.If you’re not aware of this ongoing shift in the EV market, it’s time to make some changes to your investment strategy. Here’s an eye-opening prediction: JPMorgan analyst Akira Kish ...

$1.4 billion investment in Indiana plant brings production of an all-new BEVToyota adds up to 340 new, sustainable U.S. jobsPRINCETON, Ind., April 25, 2024 /PRNewswire/ -- Toyota will prepare for assembly of an all-new, three row battery electric SUV in the U.S. as part of a new $1.4 billion investment in its Princeton facility, affirming Toyota's commitment to reinvesting profits in its U.S. operations and bringing total investment in Toyota Indiana to $8 billion. This also brings the addition of up to 340 ...

Toyota Motor Corporation (TM) closed the latest trading day at $232.88, indicating a +1.07% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.1%.Shares of the company witnessed a loss of 9.19% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 10.7% and underperforming the S&P 500's loss of 3.01%.Investors ...