UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F/A(Amendment No. 2)(Mark One)REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934OR⌧
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: March 31, 2010
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934to
For the transition period fromOR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 1-14948

TOYOTA JIDOSHA KABUSHIKI KAISHA(Exact Name of Registrant as Specified in its Charter)

TOYOTA MOTOR CORPORATION(Translation of Registrant’s Name into English)

Japan(Jurisdiction of Incorporation or Organization)

1 Toyota-cho, Toyota City
Aichi Prefecture 471-8571
Japan+81 565 28-2121(Address of Principal Executive Offices)

Kenichiro Makino
Telephone number: +81 565 28-2121
Facsimile number: +81 565 23-5800
Address: 1 Toyota-cho, Toyota City, Aichi Prefecture 471-8571, Japan(Name, telephone, e-mail and/or facsimile number and address of registrant’s contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each Class:Name of Each Exchange on Which Registered:
American Depositary Shares*
The New York Stock Exchange
Common Stock*** American Depositary Receipts evidence American Depositary Shares, each American Depositary Share representing two shares of the registrant’s Common Stock.
** No par value. Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the U.S. Securities and Exchange
Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:
3,135,995,860 Shares of Common Stock (including 79,850,690 Shares of Common Stock in the form of American Depositary Shares) as of March 31, 2010
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes ⌧ No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934: Yes
No ⌧Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days: Yes ⌧ No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to besubmitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files): Yes ⌧ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer andlarge accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ⌧Accelerated filer
Non-accelerated filer
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ⌧International Financial Reporting Standards as issued by the International Accounting Standards Board
Other
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:
Item 17
Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):YesNo ⌧EXPLANATORY NOTEThis Amendment No. 2 to Form 20-F (the “Form 20-F/A”) amends the annual report on Form 20-F of Toyota Motor Corporation(“Toyota”) for the fiscal year ended March 31, 2010, originally filed with the U.S. Securities and Exchange Commission (“SEC”) on
June 25, 2010 (the “Form 20-F”). This Form 20-F/A is being filed in response to a comment letter received from the staff of the SEC
dated January 21, 2011 (the “SEC Comment Letter”) and relates to matters discussed in comment letters received from the staff of the
SEC dated September 10, 2010 and November 22, 2010 and Toyota's response letters dated October 15, 2010, December 17, 2010 andMarch 15, 2011. We expect that these comment letters and response letters will be released in due course on the SEC’s Electronic
Data Gathering, Analysis, and Retrieval (EDGAR) system at www.sec.gov under the Central Index Key (CIK) 0001094517 for
Toyota. “Operating and Financial Review and Prospects — Operating Results — Results of Operations — Fiscal 2010 Compared with
Fiscal 2009 — Operating Costs and Expenses” in the Form 20-F is amended by this Form 20-F/A to reflect additional information
requested in the SEC Comment Letter. No other changes have been made to the Form 20-F. The Form 20-F, as amended by this Form
20-F/A, speaks as of the original filing date of the Form 20-F, is not intended to reflect events that may have occurred subsequent to
the original filing date of the Form 20-F, and is not intended to update in any way the disclosures made in the Form 20-F.

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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
5.A OPERATING RESULTS
All financial information discussed in this section is derived from Toyota’s consolidated financial statements that appear
elsewhere in this annual report. The financial statements have been prepared in conformity with accounting principles generally
accepted in the United States of America.
Overview
The business segments of Toyota include automotive operations, financial services operations and all other operations.
Automotive operations are Toyota’s most significant business segment, accounting for 89% of Toyota’s total revenues before theelimination of intersegment revenues for fiscal 2010. Toyota’s primary markets based on vehicle unit sales for fiscal 2010 were: Japan(30%), North America (29%), Europe (12%) and Asia (14%). During fiscal 2010, as a result of announcements of recalls and othersafety measures for several models of vehicles in several countries, the number of recalls and other safety measures increased. These
recalls and other safety measures have impacted the financial results of the automotive and financial services operations and led to anumber of claims, lawsuits and government investigations. As a result of the foregoing, the fiscal 2010 operating results of theautomotive operations were principally affected by factors including but not limited to the accrued costs related to the recalls and othersafety measures announced in fiscal 2010, a temporary decrease in sales mainly in North America and additional costs resulting froma change in the estimation model of expenses related to future recalls and other safety measures. In fiscal 2010, Toyota has employed
an estimation model for recalls and other safety measures which takes into account Toyota’s historical experience and individual
occurrences of recalls and other safety measures to accrue recall costs at the time of vehicle sale. In addition, as a result of the above,
the fiscal 2010 operating results of the financial services operations were principally affected by the evaluation for credit losses andresidual value losses at March 31, 2010. Not all of the impacts described above are financially significant or are able to be precisely
measured. Toyota has included in the following discussion and analysis, where relevant, significant impacts of these items.
Automotive Market Environment
The worldwide automotive market is highly competitive and volatile. The demand for automobiles is affected by a number offactors including social, political and general economic conditions; introduction of new vehicles and technologies; and costs incurredby customers to purchase and operate vehicles. These factors can cause consumer demand to vary substantially in different geographic
markets and for different types of automobiles.
The automotive industry generally experienced difficult market conditions during fiscal 2010 due to changes in market demand
resulting from a shift in consumer preference towards small and low-price vehicles, despite the continuous growth in China, India andother emerging countries and the effects of government stimulus packages in developed countries.
The following table sets forth Toyota’s consolidated vehicle unit sales by geographic market based on location of customers forthe past three fiscal years.
(Thousands of Units)
Year Ended March 31,
2008

2009

2010

Japan..................................................................................................................
North America...................................................................................................
Europe ...............................................................................................................
Asia....................................................................................................................
Other*................................................................................................................

2,188
2,958
1,284
956
1,527

1,945
2,212
1,062
905
1,443

2,163
2,098
858
979
1,139

Overseas total ....................................................................................................

6,725

5,622

5,074

Total...................................................................................................................

8,913

7,567

7,237

* “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.
During fiscal 2009, Toyota’s consolidated vehicle unit sales in Japan decreased due to weak market conditions as compared tothe prior fiscal year. During fiscal 2010, sales in Japan increased as compared to the prior fiscal year reflecting frequent introductionof new products and sales efforts of domestic dealers on the sales of new products. In fiscal 2010, Toyota and Lexus brands’ market
share excluding mini-vehicles was 48.2%, and Toyota’s market share (including Daihatsu and Hino brands) including mini-vehicles
was 44.3%, and both market shares represented record highs. Overseas vehicle unit sales decreased during fiscal 2009 and 2010, eachcompared to the prior fiscal year. During fiscal 2009, overseas vehicle unit sales decreased, particularly in North America and Europe,
where the contraction of automotive markets was especially pronounced. During fiscal 2010, total overseas vehicle unit sales
decreased, particularly in Europe, despite an increase in Asia.

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Toyota’s share of total vehicle unit sales in each market is influenced by the quality, safety, reliability, price, design,
performance, economy and utility of Toyota’s vehicles compared with those offered by other manufacturers. The timely introductionof new or redesigned vehicles is also an important factor in satisfying customer needs. Toyota’s ability to satisfy changing customer
preferences can affect its revenues and earnings significantly.
The profitability of Toyota’s automotive operations is affected by many factors. These factors include:•

vehicle unit sales volumes,•

the mix of vehicle models and options sold,•the level of parts and service sales,•

the levels of price discounts and other sales incentives and marketing costs,•

the cost of customer warranty claims and other customer satisfaction actions,•the cost of research and development and other fixed costs,•

the prices of raw materials,•

the ability to control costs,•

the efficient use of production capacity, and•changes in the value of the Japanese yen and other currencies in which Toyota does business.

Changes in laws, regulations, policies and other governmental actions can also materially impact the profitability of Toyota’s
automotive operations. These laws, regulations and policies include those attributed to environmental matters and vehicle safety, fueleconomy and emissions that can add significantly to the cost of vehicles. The European Union has enforced a directive that requires
manufacturers to be financially responsible for taking back end-of-life vehicles and to take measures to ensure that adequate used
vehicle disposal facilities are established and those hazardous materials and recyclable parts are removed from vehicles prior to
scrapping. Please see “Legislation Regarding End-of-Life Vehicles” “Information on the Company — Business Overview —Governmental Regulation, Environmental and Safety Standards” and note 23 to the consolidated financial statements for a moredetailed discussion of these laws, regulations and policies.
Many governments also regulate local content, impose tariffs and other trade barriers, and enact price or exchange controls thatcan limit an automaker’s operations and can make the repatriation of profits unpredictable. Changes in these laws, regulations, policies
and other governmental actions may affect the production, licensing, distribution or sale of Toyota’s products, cost of products orapplicable tax rates. Toyota is currently one of the defendants in purported national class actions alleging violations of the U.S.
Sherman Antitrust Act. Toyota believes that its actions have been lawful. In order to avoid a protracted dispute, however, Toyota
entered into a settlement agreement with the plaintiffs at the end of February 2006. The settlement agreement is pending the approvalof the federal district court, and immediately upon approval the plaintiffs will, in accordance with the terms of the settlementagreement, withdraw all pending actions against Toyota in the federal district court as well as all state courts and all related actions
will be closed. From time-to-time, Toyota issues vehicle recalls and takes other safety measures including safety campaigns in its
vehicles. In November 2009, Toyota announced a safety campaign in North America for certain models of Toyota and Lexus vehicles
related to floor mat entrapment of accelerator pedals, and later expanded it to include additional models. In January 2010, Toyota
announced a recall in North America for certain models of Toyota vehicles related to sticking and slow-to-return accelerator pedals.
Also in January 2010, Toyota recalled in Europe and China certain models of Toyota vehicles related to sticking accelerator pedals. In
February 2010, Toyota announced a worldwide recall related to the software program that controls the antilock braking system (ABS)in certain vehicles models including the Prius. The recalls and other safety measures described above have led to a number of claims,
lawsuits and government investigations against Toyota in the United States. For a more detailed description of these claims, lawsuits
and government investigations, see note 23 to the consolidated financial statements.
The worldwide automotive industry is in a period of global competition which may continue for the foreseeable future, and ingeneral the competitive environment in which Toyota operates is likely to intensify. Toyota believes it has the resources, strategies
and technologies in place to compete effectively in the industry as an independent company for the foreseeable future.
Financial Services Operations
The worldwide automobile financial services industry has become highly competitive due to the contraction of automotive
markets. As competition increases, margins on financing transactions may decrease and market share may also decline as customers
obtain financing for Toyota vehicles from alternative sources.
Toyota’s financial services operations mainly include loans and leasing programs for customers and dealers. Toyota believes
that its ability to provide financing to its customers is an important value added service. Therefore, Toyota has expanded its networkof finance subsidiaries in order to offer financial services in many countries.

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Toyota’s competitors for retail financing and retail leasing include commercial banks, credit unions and other finance companies.
Meanwhile, commercial banks and other captive automobile finance companies also compete against Toyota’s wholesale financing
activities.
Toyota reasonably estimated and recorded allowance for credit losses and residual value losses. This estimation includes theunfavorable impact of the recalls and other safety measures announced in fiscal 2010.
Toyota’s financial assets decreased during fiscal 2010 primarily due to the impact of fluctuations in foreign currency translation
rates.
The following table provides information regarding Toyota’s finance receivables and operating leases as of March 31, 2009 and2010.
Yen in millions
March 31,
2009

2010

¥ 6,655,404
1,108,408
2,322,721¥ 6,810,144
1,232,508
2,403,239

10,086,533
104,521(405,171)

10,445,891
109,747(482,983)(157,359)(7,776)(73,797)(148,503)(36,917)(47,059)(238,932)(232,479)

Total finance receivables, net .....................................................................................
Less – Current portion....................................................................................................................

9,546,951(3,891,406)

9,840,176(4,209,496)

Noncurrent finance receivables, net .....................................................................................

¥ 5,655,545¥ 5,630,680

Operating Leases
Vehicles ..........................................................................................................................................
Equipment ......................................................................................................................................

¥ 2,729,713
107,168¥ 2,516,948
96,300Less – Accumulated depreciation ..................................................................................................

2,836,881(795,767)

2,613,248(791,169)

Vehicles and equipment on operating leases, net.................................................................

¥ 2,041,114¥ 1,822,079

Finance Receivables
Retail ..............................................................................................................................................
Finance leases.................................................................................................................................
Wholesale and other dealer loans...................................................................................................
Deferred origination costs ..............................................................................................................
Unearned income............................................................................................................................
Allowance for credit losses
Retail.....................................................................................................................................
Finance leases .......................................................................................................................
Wholesale and other dealer loans .........................................................................................

Toyota’s finance receivables are subject to collectability risks. These risks include consumer and dealer insolvencies andinsufficient collateral values (less costs to sell) to realize the full carrying values of these receivables. See discussion in the Critical
Accounting Estimates section regarding “Allowance for Doubtful Accounts and Credit Losses” and note 11 to the consolidated
financial statements regarding the allowance for doubtful accounts and credit losses.
Toyota continues to originate leases to finance new Toyota vehicles. These leasing activities are subject to residual value risk.
Residual value losses could be incurred when the lessee of a vehicle does not exercise the option to purchase the vehicle at the end of
the lease term. See discussion in the Critical Accounting Estimates section regarding “Investment in Operating Leases” and note 2 tothe consolidated financial statements regarding the allowance for residual value losses.
Toyota primarily enters into interest rate swap agreements and cross currency interest rate swap agreements to convert its fixedrate debt to variable-rate functional currency debt. A portion of the derivative instruments are entered into to hedge interest rate risk
from an economic perspective and are not designated to specific assets or liabilities on Toyota’s consolidated balance sheet andaccordingly, unrealized gains or losses related to derivatives that are not designated are recognized currently in operations. See
discussion in the Critical Accounting Estimates section regarding “Derivatives and Other Contracts at Fair Value”, further discussion
in the Market Risk Disclosures section and note 20 to the consolidated financial statements.

4

Funding costs can affect the profitability of Toyota’s financial services operations. Funding costs are affected by a number offactors, some of which are not in Toyota’s control. These factors include general economic conditions, prevailing interest rates andToyota’s financial strength. Funding costs decreased during fiscal 2009 and 2010, mainly as a result of lower interest rates.
Toyota launched its credit card business in Japan at the beginning of fiscal 2002. As of March 31, 2009, Toyota had 7.1 million
cardholders, an increase of 0.5 million cardholders compared with March 31, 2008. As of March 31, 2010, Toyota had 7.7 million
cardholders, an increase of 0.6 million cardholders compared with March 31, 2009. The credit card receivables at March 31, 2009
decreased by ¥1.1 billion from March 31, 2008 to ¥224.6 billion. The credit card receivables at March 31, 2010 increased by ¥30.8
billion from March 31, 2009 to ¥255.4 billion.
Other Business Operations
Toyota’s other business operations consist of housing, including the manufacture and sale of prefabricated homes; information
technology related businesses, including information technology and telecommunications, intelligent transport systems, GAZOO andother.
Toyota does not expect its other business operations to materially contribute to Toyota’s consolidated results of operations.
Currency Fluctuations
Toyota is affected by fluctuations in foreign currency exchange rates. In addition to the Japanese yen, Toyota is principally
exposed to fluctuations in the value of the U.S. dollar and the euro and, to a lesser extent, the Australian dollar, the Canadian dollar
and the British pound. Toyota’s consolidated financial statements, which are presented in Japanese yen, are affected by foreign
currency exchange fluctuations through both translation risk and transaction risk.
Translation risk is the risk that Toyota’s consolidated financial statements for a particular period or for a particular date will beaffected by changes in the prevailing exchange rates of the currencies in those countries in which Toyota does business compared with
the Japanese yen. Even though the fluctuations of currency exchange rates to the Japanese yen can be substantial, and, therefore,
significantly impact comparisons with prior periods and among the various geographic markets, the translation risk is a reporting
consideration and does not reflect Toyota’s underlying results of operations. Toyota does not hedge against translation risk.
Transaction risk is the risk that the currency structure of Toyota’s costs and liabilities will deviate from the currency structure ofsales proceeds and assets. Transaction risk relates primarily to sales proceeds from Toyota’s non-domestic operations from vehicles
produced in Japan.
Toyota believes that the location of its production facilities in different parts of the world has significantly reduced the level oftransaction risk. As part of its globalization strategy, Toyota has continued to localize production by constructing production facilities
in the major markets in which it sells its vehicles. In calendar 2008 and 2009, Toyota produced 64.1% and 64.5% of Toyota’s nondomestic sales outside Japan, respectively. In North America, 57.4% and 60.0% of vehicles sold in calendar 2008 and 2009
respectively were produced locally. In Europe, 60.9% and 57.0% of vehicles sold in calendar 2008 and 2009 respectively were
produced locally. Localizing production enables Toyota to locally purchase many of the supplies and resources used in the production
process, which allows for a better match of local currency revenues with local currency expenses.
Toyota also enters into foreign currency transactions and other hedging instruments to address a portion of its transaction risk.
This has reduced, but not eliminated, the effects of foreign currency exchange rate fluctuations, which in some years can be significant.
See notes 20 and 21 to the consolidated financial statements for additional information regarding the extent of Toyota’s use ofderivative financial instruments to hedge foreign currency exchange rate risks.
Generally, a weakening of the Japanese yen against other currencies has a positive effect on Toyota’s revenues, operating
income and net income attributable to Toyota Motor Corporation. A strengthening of the Japanese yen against other currencies has the
opposite effect. In fiscal 2009 and 2010, the Japanese yen was on average and at the end of the fiscal year stronger against the U.S.
dollar and the euro in comparison to the prior fiscal year. See further discussion in the Market Risk Disclosures section regarding“Foreign Currency Exchange Rate Risk”.
During fiscal 2009 and 2010, the average exchange rate of the Japanese yen strengthened against the major currencies including
the U.S. dollar and the euro compared to the average exchange rate of the prior fiscal year. The operating results excluding the impactof currency fluctuations described in the “Results of Operations — Fiscal 2010 Compared with Fiscal 2009” and the “Results ofOperations — Fiscal 2009 Compared with Fiscal 2008,” show results of net revenues obtained by applying the Japanese yen’s averageexchange rate in the previous fiscal year to the local currency-denominated net revenues for fiscal 2009 and 2010, respectively, as if
the value of the Japanese yen had remained constant for the comparable periods. Results excluding the impact of currency fluctuations
year-on-year are not on the same basis as Toyota’s consolidated financial statements and do not conform with U.S. GAAP.
Furthermore, Toyota does not believe that these measures are a substitute for U.S. GAAP measures. However, Toyota believes thatsuch results excluding the impact of currency fluctuations year-on-year provide additional useful information to investors regarding
the operating performance on a local currency basis.

5Segmentation
Toyota’s most significant business segment is its automotive operations. Toyota carries out its automotive operations as a global
competitor in the worldwide automotive market. Management allocates resources to, and assesses the performance of, its automotive
operations as a single business segment on a worldwide basis. Toyota does not manage any subset of its automotive operations, suchas domestic or overseas operations or parts, as separate management units.
The management of the automotive operations is aligned on a functional basis with managers having oversight responsibility forthe major operating functions within the segment. Management assesses financial and non-financial data such as units of sale, units ofproduction, market share information, vehicle model plans and plant location costs to allocate resources within the automotive
operations.
Geographic Breakdown
The following table sets forth Toyota’s net revenues in each geographic market based on the country location of the parent
company or the subsidiaries that transacted the sale with the external customer for the past three fiscal years.
Yen in millions
Year ended March 31,

Japan.............................................................................................................................
North America..............................................................................................................
Europe ..........................................................................................................................
Asia...............................................................................................................................
Other*...........................................................................................................................

2008

2009

2010

¥ 8,418,620
9,248,950
3,802,814
2,790,987
2,027,869¥ 7,471,916
6,097,676
2,889,753
2,450,412
1,619,813¥ 7,314,813
5,583,228
2,082,671
2,431,648
1,538,613* “Other” consists of Central and South America, Oceania and Africa.
Results of Operations — Fiscal 2010 Compared with Fiscal 2009
Yen in millions
Year ended March 31,

Net revenues:
Japan ...............................................................................
North America ................................................................
Europe.............................................................................
Asia .................................................................................
Other* .............................................................................
Intersegment elimination/unallocated amount ...............
Total ......................................................................
Operating income (loss):Japan ...............................................................................
North America ................................................................
Europe.............................................................................
Asia .................................................................................
Other* .............................................................................
Intersegment elimination/unallocated amount ...............
Total ......................................................................
Operating margin......................................................................
Income (loss) before income taxes and equity in earnings ofaffiliated companies.............................................................
Net margin from Income (loss) before income taxes andequity in earnings of affiliated companies ..........................
Equity in earnings of affiliated companies...............................
Net income (loss) attributable to Toyota Motor Corporation.....
Net margin attributable to Toyota Motor Corporation.............

2010 v. 2009 Change

2009

2010

Amount¥ 12,186,737
6,222,914
3,013,128
2,719,329
1,882,900(5,495,438)
20,529,570¥ 11,220,303
5,670,526
2,147,049
2,655,327
1,673,861(4,416,093)
18,950,973¥ (966,434)(552,388)(866,079)(64,002)(209,039)
1,079,345(1,578,597)(237,531)(390,192)(143,233)
176,060
87,64846,237(461,011)(2.2)%(225,242)
85,490(32,955)
203,527
115,574
1,122
147,5160.8%

12,289475,682
110,278
27,46727,926(45,115)
608,527
3.0%

—
—
—
15.6
31.9
(97.6)—(560,381)

291,468

851,849—(2.7)%
42,724(436,937)(2.1)%

1.5%
45,408
209,456
1.1%

4.2%
2,684
646,393
3.2%

6.3
—

* “Other” consists of Central and South America, Oceania and Africa.

6

Percentage(7.9)%(8.9)(28.7)(2.4)(11.1)—(7.7)

Net Revenues
Toyota had net revenues for fiscal 2010 of ¥18,950.9 billion, a decrease of ¥1,578.6 billion, or 7.7%, compared with the prioryear. This decrease principally reflects the unfavorable impact of fluctuations in foreign currency translation rates of ¥986.9 billion,
the impact of decreased vehicle unit sales and changes in sales mix of approximately ¥570.0 billion, partially offset by the increased
parts sales of ¥34.9 billion during fiscal 2010. Eliminating the difference in the Japanese yen value used for translation purposes, net
revenues would have been approximately ¥19,937.8 billion during fiscal 2010, a 2.9% decrease compared with the prior year. The
automotive market expanded by 10.0% in Japan compared to the prior fiscal year due to the government stimulus packages. However,other automotive markets contracted significantly such as 22.0% in North America and 13.7% in Europe compared to the priorcalendar year due to the continuous market downturn. Affected by this downturn, Toyota’s vehicle unit sales decreased to 7,237
thousand vehicles, or by 4.4%, compared to the prior fiscal year.
Toyota’s net revenues by product category in each business with external customer is as follows:
Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Vehicles ...........................................................................................
Parts and components for overseas production...............................
Parts and components for after service ...........................................
Other................................................................................................

¥ 15,635,490
298,176
1,575,316
1,041,519¥ 14,309,595
355,273
1,543,941
978,499¥ (1,325,895)
57,097(31,375)(63,020)(8.5)%
19.1
(2.0)
(6.1)

Total Automotive...................................................................
All Other..........................................................................................

18,550,501
623,219

17,187,308
537,421(1,363,193)(85,798)(7.3)(13.8)

Total sales of products.....................................................................
Financial services ............................................................................

19,173,720
1,355,850

17,724,729
1,226,244(1,448,991)(129,606)

(7.6)
(9.6)

Total .......................................................................................

¥ 20,529,570¥ 18,950,973¥ (1,578,597)(7.7)%

Toyota’s net revenues include net revenues from sales of products, consisting of net revenues from automotive operations andall other operations, that decreased by 7.6% during fiscal 2010 compared with the prior fiscal year to ¥17,724.7 billion, and net
revenues from financial services operations that decreased by 9.6% during fiscal 2010 compared with the prior fiscal year to ¥1,226.2
billion. Eliminating the difference in the Japanese yen value used for translation purposes, net revenues from sales of products would
have been ¥18,618.7 billion, a 2.9% decrease during fiscal 2010 compared with the prior fiscal year. The decrease in net revenues
from sales of products is due primarily to a decrease in vehicle unit sales which resulted from the generally difficult market conditionsin the automotive industry as a whole in fiscal 2010. Eliminating the difference in the Japanese yen value used for translation purposes,
net revenues from financial services operations would have been approximately ¥1,319.1 billion, a 2.7% decrease during fiscal 2010
compared with the prior fiscal year. The decrease in net revenues from financial services operations resulted primarily from
unfavorable impact of fluctuations in foreign currency translation rates and decrease in rental income from vehicles and equipment on
operating leases.
Number of financing contracts by geographic region (at the end of the fiscal year 2009 and 2010) is as follows:
Number of financing contracts in thousands
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Japan..................................................................................................................
North America...................................................................................................
Europe ...............................................................................................................
Asia....................................................................................................................
Other*................................................................................................................

1,660
4,403
748
387
440

1,684
4,488
774
428
476

24
85
26
41
36

1.4%
1.9
3.5
10.6
8.2

Total .........................................................................................................

7,638

7,850

212

2.8%

* “Other” consists of Central and South America, Oceania and Africa.

7

Geographically, net revenues (before the elimination of intersegment revenues) for fiscal 2010 decreased by 7.9% in Japan,
8.9% in North America, 28.7% in Europe, 2.4% in Asia and 11.1% in Other compared with the prior fiscal year. Eliminating thedifference in the Japanese yen value used for translation purposes, net revenues in fiscal 2010 would have decreased by 7.9% in Japan,
1.2% in North America, 20.1% in Europe, 7.3% in Other and would have increased by 5.5% in Asia compared with the prior fiscal
year.
The following is a discussion of net revenues in each geographic market (before the elimination of intersegment revenues).
Japan
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales ..................................................

2010 v. 2009 Change

2009

2010

AmountPercentage

1,945

2,163

218

11.2%

Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Net revenues:
Sales of products.........................................................................
Financial services........................................................................

¥ 12,067,494
119,243¥ 11,095,044
125,259¥ (972,450)
6,016(8.1)%
5.0

Total ..................................................................................

¥ 12,186,737¥ 11,220,303¥ (966,434)(7.9)%

Supported by the government stimulus packages including the eco-car tax reduction and subsidy, Toyota’s domestic vehicle unit
sales showed growth as compared to the prior fiscal year mainly within the environmentally-friendly and new vehicle markets, such as
Prius and SAI. However, net revenues in Japan decreased reflecting the decrease in the number of exported vehicles for the overseas
markets.
North America
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales ........................................................

2010 v. 2009 Change

2009

2010

AmountPercentage

2,212

2,098

(114)

(5.2)%

Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountNet revenues:
Sales of products..................................................................................
Financial services.................................................................................

¥ 5,226,426
996,488¥ 4,782,379
888,147¥ (444,047)(108,341)(8.5)%(10.9)

Total ...........................................................................................

¥ 6,222,914¥ 5,670,526¥ (552,388)(8.9)%

8

Percentage

The market is recovering gradually from the downturn stemming from the financial crisis since the fall of 2008 and Toyota’s
vehicle unit sales in the second half of fiscal 2010 increased year-on-year primarily due to the sales of new Sienna. However, net
revenues in North America decreased primarily as a result of the substantial decline in vehicle unit sales caused by the downturn in themarket during the first half of fiscal 2010, fluctuations in foreign currency translation rates and the effects of the recalls and othersafety measures.
EuropeThousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales .............................................

2010 v. 2009 Change

2009

2010

AmountPercentage

1,062

858

(204 )(19.2)%

Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Net revenues:
Sales of products..............................................................................
Financial services.............................................................................

¥ 2,911,234
101,894¥ 2,065,768
81,281¥ (845,466)(20,613)(29.0)%(20.2)

Total .......................................................................................

¥ 3,013,128¥ 2,147,049¥ (866,079)(28.7)%

Although Toyota’s vehicle unit sales in some European countries increased compared with the prior fiscal year benefiting fromvarious government stimulus packages, net revenues in Europe overall decreased primarily due to the decrease in vehicle unit sales
which resulted from the downturn in the market and fluctuations in foreign currency translation rates.
Asia
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales .......................................................

2010 v. 2009 Change

2009

2010

AmountPercentage

905

979

74

8.3%

Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Net revenues:
Sales of products...............................................................................
Financial services..............................................................................

¥ 2,676,939
42,390¥ 2,612,595
42,732¥ (64,344)
342(2.4)%
0.8

Total ........................................................................................

¥ 2,719,329¥ 2,655,327¥ (64,002)(2.4)%

Although Toyota’s vehicle unit sales increased, particularly in Thailand and Indonesia, compared with the prior fiscal year due
primarily to various government stimulus packages, net revenues in Asia decreased due primarily to the unfavorable impact offluctuations in foreign currency translation rates. Eliminating the difference in the Japanese yen value used for translation purposes of¥212.9 billion, net revenues would have increased by ¥148.6 billion.
Other
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales .............................................

92010 v. 2009 Change

2009

2010

Amount

1,443

1,139

(304)

Percentage(21.1)%

Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountPercentage

Net revenues:
Sales of products.....................................................................
Financial services....................................................................

¥ 1,779,089
103,811¥ 1,571,846
102,015¥ (207,243)(1,796)(11.6)%(1.7 )

Total ..............................................................................

¥ 1,882,900¥ 1,673,861¥ (209,039)(11.1)%Net revenues in Other decreased due to the decrease in Toyota’s vehicle unit sales compared to the prior fiscal year as a result ofa downturn in the markets in Central and South America, Oceania, Africa, and all other regions.
Operating Costs and Expenses
Yen in millions
Year ended March 31,

2010 v. 2009 Change

2009

2010

AmountOperating costs and expenses
Cost of products sold ................................................................
Cost of financing operations.....................................................
Selling, general and administrative ..........................................

Percentage¥ 17,468,416
987,384
2,534,781¥ 15,971,496
712,301
2,119,660¥ (1,496,920)(275,083)(415,121)(8.6)%(27.9)(16.4)

Total ................................................................................

¥ 20,990,581¥ 18,803,457¥ (2,187,124)(10.4)%

Yen in millions
2010 v. 2009 Change

Changes in operating costs and expenses:
Effect of decrease in vehicle unit sales and changes in sales mix.................................................................
Effect of fluctuation in foreign currency translation rates.............................................................................
Effect of increase in parts sales .....................................................................................................................
Effect of decrease in research and development expenses............................................................................
Effect of cost reduction efforts, decrease in fixed costs and other efforts ....................................................

¥ (110,000)(963,300)
11,200(178,700)(946,324)

Total .....................................................................................................................................................

¥ (2,187,124)

Operating costs and expenses decreased by ¥2,187.1 billion, or 10.4%, to ¥18,803.4 billion during fiscal 2010 compared withthe prior fiscal year. This decrease resulted primarily from the ¥963.3 billion impact of fluctuations in foreign currency translation
rates, the ¥946.3 billion of cost reduction efforts, decrease in fixed costs and other efforts, the ¥178.7 billion decrease in research anddevelopment expenses, and the approximate ¥110.0 billion impact on costs of products attributable to the decrease in vehicle unit sales
and the changes in sales mix, partially offset by the ¥11.2 billion impact on increase in parts sales.
The ¥946.3 billion in cost reduction efforts, decrease in fixed costs and other efforts includes a net cost increase related torecalls and other safety measures of ¥97.0 billion from fiscal 2009 to fiscal 2010. This net increase in costs related to recalls and othersafety measures is primarily the result of a ¥105.7 billion increase in costs resulting from a change in the estimation model used torecord Toyota’s liability for recalls and other safety measures in fiscal 2010, an ¥89.0 billion increase resulting from the total
estimated costs of the four recalls and other safety measures in fiscal 2010 as described below, and a ¥32.3 billion increase in costs
related to other recalls and safety measures in fiscal 2010, offset by a decrease of approximately ¥130 billion related to customer
satisfaction measures with respect to certain Tacoma pick-up trucks in North America recorded in fiscal 2009 also described below.
Out of the ¥32.3 billion increase in costs related to other recalls and safety measures from fiscal 2009 to fiscal 2010, approximately¥21.0 billion is mainly attributable to an accrual of additional costs in fiscal 2010 related to the Tacoma pick-up trucks customer
satisfaction measures reflecting an update to the repair ratio, based on fiscal year 2010 repair experience, and the remaining is theresult of an increased number of small-scale recalls and other safety measures.
The following is a description of the four recalls and other safety measures referenced above.
In fiscal 2010, Toyota experienced a significant increase in the number of vehicles subject to recalls and other safety measures.
There were over 14 million vehicles worldwide subject to recalls and other safety measures in fiscal 2010, the majority of which
occurred in the third and fourth quarters of fiscal 2010 relating to the following four recalls and other safety measures.

10In November 2009, Toyota announced a safety campaign in North America for certain models of Toyota and Lexus vehicles
related to floor mat entrapment of accelerator pedals, and later expanded it to include additional models. The vehicle models involved
were the Camry, Avalon, Prius, Tacoma, Tundra, ES 350, IS 250/350, Highlander, Corolla, Venza and Matrix. As of the end of
December 2010, approximately 64% of the approximately 6 million vehicles included in the campaign were remedied to address thepotential for issues. In January 2010, Toyota announced a recall in North America for certain models of Toyota vehicles related tosticking and slow-to-return accelerator pedals. The vehicle models involved were the Tundra, Sequoia, Avalon, Camry, Corolla,
Matrix, RAV4 and Highlander. As of the end of December 2010, approximately 87% of the approximately 2.5 million vehicles
subject to this recall were remedied to address sticking and slow-to-return accelerator pedals. Also in January 2010, Toyota
announced a recall in Europe and China for certain models of Toyota vehicles related to sticking and slow-to-return accelerator pedals.
The vehicle models involved in Europe were the Yaris, Verso, Corolla, Auris, Aygo, RAV4, iQ and Avensis. In China, the recall was
limited to the RAV4. As of the end of December 2010, approximately 88% of the approximately 1.7 million vehicles subject to thisrecall in Europe, and approximately 99% of the approximately 75 thousand vehicles subject to this recall in China, were remedied toaddress sticking and slow-to-return accelerator pedals. In February 2010, we announced a worldwide recall related to the software
program that controls the antilock braking system (ABS) in the Prius, HS 250h, Prius PHV and SAI. As of the end of December 2010,
approximately 94% of the approximately 430 thousand units subject to this recall received program updates. As of the end of
December 2010, a total of approximately 10.7 million remedies were announced on vehicles subject to the above four recalls and othersafety measures. Total estimated costs associated with the above four recalls and other safety measures amounted to ¥89.0 billion forfiscal 2010. Of this amount, actual payments incurred for fiscal 2010 amounted to ¥32.4 billion yen. Specific types of costs involved
include costs for parts, labor and costs related to loaner vehicles.
The net changes in the accrual for the four recalls and other safety measures described above consist of the following:

Balance and beginning of year .............................................................................................................................
Accrual .................................................................................................................................................................
Amounts paid .......................................................................................................................................................
Balance at end of year ..........................................................................................................................................

Yen in billions
Year ended
March 31, 2010¥—
89.0
(32.4)¥
56.6

The following is a description of the customer satisfaction measures related to certain Tacoma pick-up trucks in North America
referred to above.
In fiscal 2009, Toyota accrued the cost of the customer satisfaction measures related to Tacoma pick-up trucks in North America
in order to address the possibility of rust developing on the frame of a portion of older model Tacoma pick-up trucks manufactured in
North America during 1995-2004, by rendering repair services for a portion of the vehicles and providing warranty extensions of up to
15 years to owners of approximately 820 thousand units, a portion of which may include vehicle buyback. Accordingly, the cost of
approximately ¥130 billion was recorded in operating costs and expenses in fiscal 2009. The repair ratio for these customer
satisfaction measures to date has been relatively low due primarily to the low rate of incidence of rust on the frames of these vehicles
which may occur when exposed to severe environmental conditions including accumulation of road salts. This low repair ratio wasassumed in the calculation of the accrual.
The net changes in the accrual for the customer satisfaction measures related to Tacoma pick-up trucks in North America
described above consist of the following:

Balance at beginning of year................................................................................
Accrual .................................................................................................................
Amounts paid .......................................................................................................
Balance at end of year ..........................................................................................

11

Yen in billions
Year ended
Year ended
March 31, 2009
March 31, 2010
¥
—
¥
57.5
130.0
21.0
(72.5)(28.4)
¥
57.5
¥
50.1

Cost Reduction Efforts
During fiscal 2010, continued cost reduction efforts reduced operating costs and expenses by approximately ¥520.0 billion. The
cost reduction efforts include decreases in the prices of steel, precious metals, non-ferrous alloys including aluminum, plastic parts andother production materials and parts. In fiscal 2010, the decline in raw materials prices and, continued cost reduction efforts, byworking closely with suppliers, contributed to the improvement in earnings. These cost reduction efforts related to ongoing value
engineering and value analysis activities, the use of common parts that result in a reduction of part types and other manufacturinginitiatives designed to reduce the costs of vehicle production.
Cost of Products Sold
Cost of products sold decreased by ¥1,496.9 billion, or 8.6%, to ¥15,971.5 billion during fiscal 2010 compared with the priorfiscal year. The decrease in cost of products sold for automotive operations is primarily attributed to the decrease in fixed costs
including the decrease in research and development expenses, the cost reduction efforts, the decrease in vehicle unit sales and thechanges in sales mix, and the impact of fluctuations in foreign currency translation rates partially offset by increases in parts sales. The
decrease in fixed costs was due mainly to a decline in labor costs and research and development expenses as a result of profit
improvement initiatives. The decrease in vehicle unit sales and the changes in sales mix were due to factors such as the substantial
contraction of the automotive market caused by the financial crisis since the fall of 2008. The decrease in research and development
expenses is attributable to reduced development costs realized as a result of Toyota’s more focused investment decisions for the futuresuch as in environmental technologies, and effective management over research and development expenses spending.
Cost of Financing Operations
Yen in millions
2010 v. 2009 Change

Changes in cost of financing operations:
Effect of fluctuation in foreign currency translation rates............................................................................
Effect of changes in funding costs................................................................................................................
Effect of increase in valuation gains on interest rate swaps stated at fair value ..........................................
Effect of decrease in provision for residual value losses .............................................................................
Other .............................................................................................................................................................
Total ....................................................................................................................................................

¥ (83,500)(70,000)(64,500)(50,000)(7,083)¥ (275,083)

Cost of financing operations decreased by ¥275.1 billion, or 27.9%, to ¥712.3 billion during fiscal 2010 compared with the prioryear. The decrease resulted primarily from the ¥83.5 billion impact of fluctuations in foreign currency translation rates, the ¥70.0
billion favorable impact of changes in funding costs, the ¥64.5 billion recognition of valuation gains on interest rate swaps stated atfair value, and the ¥50.0 billion decrease in provision for residual value losses. The favorable impact of changes in funding costs is
attributable to a decline in market interest rates. The decrease in provision for residual value losses is primarily attributable to therecovery of the used vehicles markets particularly in the United States and other effects, partially offset by the impact from the recalls
and other safety measures.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased by ¥415.1 billion, or 16.4%, to ¥2,119.6 billion during fiscal 2010
compared with the prior fiscal year. This decrease mainly reflects the ¥173.8 billion decrease for the financial services operations andthe ¥84.9 billion decrease of marketing expense. The decrease in the financial services operations is primarily due to the ¥140.0 billion
decrease in provision for credit losses and net charge-offs, which is attributable to the rise in the ratio of credit losses as a result of theeconomic downturn mainly in the United States in the prior fiscal year, partially offset by the impact from the recalls and other safetymeasures. The decrease in marketing expense is attributable to reduced marketing costs realized as a result of the profit improvement
initiatives.
Operating Income and Loss
Yen in millions
2010 v. 2009 Change

Changes in operating income and loss:
Effect of decrease in vehicle unit sales and changes in sales mix and other operational factors..................
Effect of increase in parts sales .....................................................................................................................
Effect of fluctuation in foreign currency translation rates.............................................................................
Effect of decrease in research and development expenses............................................................................

12¥ (370,000)
23,700(23,600)
178,700

Yen in millions
2010 v. 2009 Change

Effect of cost reduction efforts, decrease in fixed costs and other efforts ....................................................
Total .....................................................................................................................................................

¥

799,727
608,527

Toyota’s operating income increased by ¥608.5 billion to an operating income of ¥147.5 billion during fiscal 2010 comparedwith the prior year. This operating income was favorably impacted by the effects of a ¥799.7 billion cost reduction efforts, decrease in
fixed costs and other efforts, the ¥178.7 billion decrease in research and development expenses, and the ¥23.7 billion increase in parts
sales, partially offset by the ¥380.0 billion decrease in vehicle unit sales and the changes in sales mix. The cost reduction efforts,
decrease in fixed costs and other efforts are partially offset by the ¥105.7 billion increase in costs resulting from a change in theestimation model of expenses related to future recalls and other safety measures.
During fiscal 2010, operating income (before the elimination of intersegment profits), increased by ¥475.6 billion in North
America, increased by ¥27.5 billion, or 15.6%, in Asia, and increased by ¥27.9 billion, or 31.9% in Other compared with the priorfiscal year. During fiscal 2010, operating loss (before the elimination of intersegment profits) decreased by ¥12.3 billion in Japan anddecreased by ¥110.3 billion in Europe compared with the prior fiscal year.
The following is a discussion of operating income and loss in each geographic market.
Japan
Yen in millions
2010 v. 2009 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales in the export markets and otheroperational factors......................................................................................................................................
Effect of cost reduction efforts, decrease in fixed costs and other efforts .....................................................
Total ......................................................................................................................................................

¥ (325,000)
337,289¥

12,289The decrease in operating losses in Japan was mainly due to the cost reduction efforts, decrease in fixed costs and other efforts
in the automotive operations segment, partially offset by the ¥330.0 billion impact of decreases in both production volume and vehicle
unit sales in the export markets. The decreases in both production volume and vehicle unit sales in the export markets are attributable
to the difficult market conditions particularly in North America and Europe.
North America
Yen in millions
2010 v. 2009 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales and other operational factors ...................
Effect of fluctuation in foreign currency translation rates............................................................................
Effect of cost reduction efforts, decrease in fixed costs and other efforts ...................................................

¥ (30,000)(4,100)509,782

Total ....................................................................................................................................................

¥ 475,682

The increase in operating income in North America was due mainly to the ¥200.0 billion decreases in the provision for credit
losses, net charge-offs and provision for residual value losses of sales finance subsidiaries in the United States, which are included in“Effect of cost reduction efforts, decrease in fixed costs and other efforts”, partially offset by the ¥40.0 billion impact of decreases inboth production volume and vehicle unit sales and the ¥4.1 billion impact of the fluctuations in foreign currency translation rates. The
decreases in both production volume and vehicle unit sales in North America are attributable to the substantial decline in vehicle unit
sales of commercial vehicles and passenger vehicles due to the downturn in the market in the first half of fiscal year 2010.
Europe13

Yen in millions
2010 v. 2009 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales and other operational factors ....................
Effect of fluctuation in foreign currency translation rates.............................................................................
Effect of cost reduction efforts, decrease in fixed costs and other efforts ....................................................

¥ (60,000)
4,900
165,378

Total .....................................................................................................................................................

¥ 110,278

The decrease in operating loss in Europe was mainly due to the ¥155.3 billion impact of cost reduction efforts, decrease in fixed
costs and other efforts in the automotive operations segment and the ¥4.9 billion impact of fluctuations in foreign currency translation
rates, partially offset by the ¥60.0 billion reduction of both production volume and vehicle unit sales. The decreases in both production
volume and vehicle unit sales in Europe was attributable to the decline in vehicle unit sales in the overall European market comparedto the prior fiscal year despite sales growth in some of the countries that benefited from government stimulus packages.
Asia
Yen in millions
2010 v. 2009 Change

Changes in operating income and loss:
Effect of increase in production volume and vehicle unit sales and other operational factors .....................
Effect of fluctuation in foreign currency translation rates.............................................................................
Effect of cost reduction efforts, decrease in fixed costs and other efforts ....................................................

¥ 20,000(16,200)
23,667

Total .....................................................................................................................................................

¥ 27,467

The increase in operating income in Asia was mainly due to the ¥20.0 billion impact of increase in production volume andvehicle unit sales and the ¥18.6 billion impact of cost reduction efforts, decrease in fixed costs and other efforts in the automotive
operations segment, partially offset by the ¥16.2 billion impact of fluctuation in foreign currency translation rates. The increase inproduction volume and vehicle unit sales in Asia was primarily attributable to the recovery of Asian automotive markets, particularly
in Thailand and Indonesia, benefiting from the government stimulus packages.
Other Income and Expenses
Interest and dividend income decreased by ¥60.2 billion, or 43.5%, to ¥78.2 billion during fiscal 2010 compared with the priorfiscal year mainly due to a decrease in interest income reflecting decreases in market interest rates.
Interest expense decreased by ¥13.5 billion, or 28.7%, to ¥33.4 billion during fiscal 2010 compared with the prior fiscal year.
Foreign exchange gains, net increased by ¥70.0 billion to ¥68.2 billion during fiscal 2010 compared with the prior fiscal year.
Foreign exchange gains and losses include the differences between the value of foreign currency denominated sales translated at
prevailing exchange rates and the value of the sales amounts settled during the year, including those settled using forward foreign
currency exchange contracts.
Other income, net increased by ¥220.0 billion to ¥30.9 billion during fiscal 2010 compared with the prior fiscal year. This
increase was mainly due to the recognition of impairment losses on available-for sale securities in the prior fiscal year.
Income Taxes
The provision for income taxes increased by ¥149.1 billion to ¥92.6 billion during fiscal 2010 compared with the prior year
primarily due to the increase in income before income taxes. The effective tax rate was 31.8%, which was lower than the statutory tax
rate in Japan. This was primarily due to the increase in income before income taxes of overseas subsidiaries whose statutory tax rates
were lower than the statutory tax rate in Japan.
Net Income and Loss attributable to the Noncontrolling Interest and Equity in Earnings of Affiliated Companies
Net income attributable to the noncontrolling interest increased by ¥59.0 billion to ¥34.8 billion during fiscal 2010 comparedwith the prior year. This increase was mainly due to an increase in net income attributable to the shareholders of consolidated
subsidiaries.
Equity in earnings of affiliated companies during fiscal 2010 increased by ¥2.7 billion, or 6.3%, to ¥45.4 billion compared withthe prior fiscal year. This increase was due to an increase in net income attributable to the shareholders of affiliated companies.

14

Net Income and Loss attributable to Toyota Motor Corporation
Net income attributable to Toyota Motor Corporation increased by ¥646.4 billion to ¥209.4 billion during fiscal 2010 comparedwith the prior fiscal year.
Other Comprehensive Income and Loss
Other comprehensive income increased by ¥1,127.4 billion to ¥260.9 billion for fiscal 2010 compared with the prior fiscal year.
This increase resulted primarily from unrealized holding gains on securities in fiscal 2010 of ¥176.4 billion compared with losses of¥293.1 billion in the prior fiscal year, and from favorable foreign currency translation adjustments of ¥9.8 billion in fiscal 2010
compared with losses of ¥381.3 billion in the prior fiscal year. The increase in unrealized holding gains on securities was mainly due
to the recognition of impairment losses on available-for sale securities in the prior fiscal year.
Segment Information
The following is a discussion of results of operations for each of Toyota’s operating segments. The amounts presented are prior
to intersegment elimination.
Yen in millions
Year ended March 31,

Automotive:
Net revenues ........................................................................
Operating income (loss).......................................................
Financial Services:
Net revenues ........................................................................
Operating income (loss).......................................................
All Other:
Net revenues ........................................................................
Operating income (loss).......................................................
Intersegment elimination/unallocated amount:
Net revenues ........................................................................
Operating income (loss).......................................................

2010 v. 2009 Change

2009

2010

AmountPercentage¥ 18,564,723(394,876)¥ 17,197,428(86,370)¥ (1,367,295)
308,506

1,377,548(71,947)

1,245,407
246,927(132,141)
318,874(9.6)—

1,184,947
9,913

947,615(8,860)(237,332)(18,773)(20.0)—(597,648)(4,101)(439,477)(4,181)

158,171(80)——(7.4)%—

Automotive Operations Segment
The automotive operations segment is Toyota’s largest operating segment by net revenues. Net revenues for the automotive
segment decreased during fiscal 2010 by ¥1,367.3 billion, or 7.4%, compared with the prior year to ¥17,197.4 billion. The decrease
was primarily due to fluctuations in foreign currency translation rates of ¥886.5 billion and decreased vehicle unit sales and thechanges in sales mix of approximately ¥570.0 billion, partially offset by increased parts sales of ¥34.9 billion.
Operating loss from the automotive operations decreased by ¥308.5 billion during fiscal 2010 compared with the prior year to an
operating loss of ¥86.3 billion. This decrease in operating loss was primarily due to cost reduction efforts, decrease in fixed costs of¥990.0 billion, and increase in parts sales, partially offset by a ¥380.0 billion decrease in vehicle unit sales and changes in sales mix.
The decrease in vehicle unit sales and changes in sales mix was due primarily to a decrease in vehicle unit sales which resulted
from the generally difficult market conditions in the automotive industry during fiscal 2010. The decrease in fixed costs was due
mainly to the decline in labor costs and research and development expenses as a result of profit improvement initiatives, partially
offset by ¥105.7 billion increase in costs resulting from a change in the estimation model of expenses related to future recalls andother safety measures.
Financial Services Operations Segment
Net revenues for the financial services operations decreased during fiscal 2010 by ¥132.1 billion, or 9.6%, compared to the prioryear to ¥1,245.4 billion. This decrease was primarily due to the unfavorable impact of fluctuations in foreign currency translation ratesof ¥93.3 billion. Eliminating the difference in the Japanese yen value used for translation purposes, net revenues for its financial
services operations would have been approximately ¥1,338.7 billion during fiscal 2010, a 2.8% decrease compared with the priorfiscal year. The decrease in net revenues eliminating the difference in the Japanese yen value used for translation purposes resulted
primarily from a decrease in rental income from vehicles and equipment on operating leases.
Operating income from financial services operations increased by ¥318.9 billion to ¥246.9 billion during fiscal 2010 comparedwith the prior year. This increase was primarily due to the ¥140.0 billion decrease in provision for credit losses, net charge-offs, the15¥64.5 billion of the recognition of valuation gains on interest rate swaps stated at fair value, and the ¥50.0 billion decrease in provision
for residual value losses.
The decrease in provision for credit losses, net charge-offs is primarily attributable to the increase in provision for credit losses
and net charge-offs in the United States primarily due to the rise in the ratio of credit losses as a result of the economic downturn inthe prior fiscal year, partially offset by the impact from the recalls and other safety measures. The decrease in provision for residual
value losses is primarily attributable to the recovery in the used vehicle market, partially offset by the impact from the recalls andother safety measures.
Ratio of credit loss experience in the United States is as follows:Year ended March 31,
2009

2010

Net charge-offs as a percentage of average gross earning assets:
Finance receivables.............................................................................................................................
Operating lease ...................................................................................................................................

1.54%
0.86

1.15%
0.63

Total ..........................................................................................................................................

1.37%

1.03%

All Other Operations Segment
Net revenues for Toyota’s other operations segment decreased by ¥237.3 billion, or 20.0%, to ¥947.6 billion during fiscal 2010
compared with the prior year.
Operating income from Toyota’s other operations segment decreased by ¥18.8 billion, to operating loss of ¥8.9 billion during
fiscal 2010 compared with the prior year.
Results of Operations — Fiscal 2009 Compared with Fiscal 2008
Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

Amount¥ 15,315,812
9,423,258
3,993,434
3,120,826
2,294,137(7,858,227)¥ 12,186,737
6,222,914
3,013,128
2,719,329
1,882,900(5,495,438)¥ (3,129,075)(3,200,344)(980,306)(401,497)(411,237)
2,362,789(20.4)%(34.0)(24.5)(12.9)(17.9)—

Total ....................................................................
Operating income (loss):Japan .............................................................................
North America ..............................................................
Europe...........................................................................
Asia ...............................................................................
Other* ...........................................................................
Intersegment elimination/unallocated amount .............

26,289,240

20,529,570(5,759,670)(21.9)

1,440,286
305,352
141,571
256,356
143,978(17,168)(237,531)(390,192)(143,233)
176,060
87,64846,237(1,677,817)(695,544)(284,804)(80,296)(56,330)
63,405———(31.3)(39.1)—

Total ....................................................................
Operating margin....................................................................
Income (loss) before income taxes, minority interest andequity in earnings of affiliated companies ........................
Net margin from Income (loss) before income taxes,
minority interest and equity in earnings of affiliatedcompanies ..........................................................................
Equity in earnings of affiliated companies.............................
Net income (loss) ...................................................................
Net margin..............................................................................

2,270,375
8.6%(461,011)(2.2)%(2,731,386)(10.8)%——

2,437,222(560,381)(2,997,603)—

9.3%
270,114
1,717,879
6.5%(2.7)%
42,724(436,937)(2.1)%(12.0)%(227,390)(2,154,816)(8.6)%(84.2)—Net revenues:
Japan .............................................................................
North America ..............................................................
Europe...........................................................................
Asia ...............................................................................
Other* ...........................................................................
Intersegment elimination/unallocated amount .............

* “Other” consists of Central and South America, Oceania and Africa.

16

Percentage

Net Revenues
Toyota had net revenues for fiscal 2009 of ¥20,529.5 billion, a decrease of ¥5,759.7 billion, or 21.9%, compared with the prioryear. This decrease principally reflects the impact of decreased vehicle unit sales and changes in sales mix of ¥3,400.0 billion, theunfavorable impact of fluctuations in foreign currency translation rates of ¥2,031.2 billion, and decreased parts sales of ¥128.6 billion
during fiscal 2009. Eliminating the difference in the Japanese yen value used for translation purposes, net revenues would have been
approximately ¥22,560.7 billion during fiscal 2009, a 14.2% decrease compared with the prior fiscal year. As a result of the downturnin the global economy stemming from the financial crisis since the fall of 2008, the automotive market contracted by 15.6% in Japan
compared to the prior fiscal year, and by 15.8 % in North America and 8.2% in Europe compared to the prior calendar year,
respectively. Affected by this downturn, Toyota’s vehicle unit sales decreased to 7,567 thousand vehicles, or by 15.1%, compared tothe prior fiscal year. The decrease in net revenues was also due to the effect of foreign currency exchange rate fluctuations andchanges in the market demand resulting from a shift in consumer preference towards small vehicles and low-price vehicles.
Toyota’s net revenues by product category in each business to external customer is as follows:
Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountVehicles .........................................................................................
Parts and components for overseas production.............................
Parts and components for after service .........................................
Other..............................................................................................

¥ 20,723,588
342,244
1,785,684
1,308,738¥ 15,635,490
298,176
1,575,316
1,041,519¥ (5,088,098)(44,068)(210,368)(267,219)

Percentage(24.6)%(12.9)(11.8)(20.4)

Total Automotive.................................................................
All Other........................................................................................

24,160,254
660,256

18,550,501
623,219(5,609,753)(37,037)(23.2)(5.6)

Total sales of products...................................................................
Financial services ..........................................................................

24,820,510
1,468,730

19,173,720
1,355,850(5,646,790)(112,880)(22.8)(7.7)

Total .....................................................................................

¥ 26,289,240¥ 20,529,570¥ (5,759,670)(21.9)%

Toyota’s net revenues include net revenues from sales of products, consisting of net revenues from automotive operations andall other operations, which decreased by 22.8% during fiscal 2009 compared with the prior fiscal year to ¥19,173.7 billion, and net
revenues from financial services operations, which decreased by 7.7% during fiscal 2009 compared with the prior fiscal year to¥1,355.8 billion. Eliminating the difference in the Japanese yen value used for translation purposes, net revenues from sales of
products would have been approximately ¥21,011.3 billion, a 15.3% decrease during fiscal 2009 compared with the prior fiscal year.
The decrease in net revenues from sales of products is primarily attributable to a substantial contraction of the automotive market
caused by a rapid deterioration of the world economy following the financial crisis since the fall of 2008, as well as changes in market
demand resulting from a shift in consumer preference towards small vehicles and low-price vehicles. Eliminating the difference in theJapanese yen value used for translation purposes, net revenues from financial services operations would have been approximately¥1,549.4 billion, a 5.5% increase during fiscal 2009 compared with the prior year. The increase in net revenues from financial services
operations is primarily attributable to the increase in volume of financings as a result of an increase in market share primarily of thefinance subsidiary in North America.
Number of financing contracts by geographic region (at the end of the fiscal year 2008 and 2009) is as follows:
Number of financing contracts in thousands
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountPercentage

Japan....................................................................................................
North America.....................................................................................
Europe .................................................................................................
Asia......................................................................................................
Other*..................................................................................................

1,614
4,241
709
357
413

1,660
4,403
748
387
440

46
162
39
30
27

2.9%
3.8
5.5
8.4
6.5

Total ...........................................................................................

7,334

7,638

304

4.1%

* “Other” consists of Central and South America, Oceania and Africa.

17

Geographically, net revenues (before the elimination of intersegment revenues) for fiscal 2009 decreased by 20.4% in Japan,
34.0% in North America, 24.5% in Europe, 12.9% in Asia and 17.9% in Other compared with the prior fiscal year. Eliminating thedifference in the Japanese yen value used for translation purposes, net revenues in fiscal 2009 would have decreased by 20.4% inJapan, 25.0% in North America, 14.1% in Europe, 1.1% in Other and 0.5% in Asia compared with the prior fiscal year.
The following is a discussion of net revenues in each geographic market (before the elimination of intersegment revenues).
Japan
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales.......................................................

2009 v. 2008 Change

2008

2009

AmountPercentage

2,188

1,945

(243)

(11.1)%

Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountPercentage

Net revenues:
Sales of products....................................................................
Financial services...................................................................

¥ 15,183,262
132,550¥ 12,067,494
119,243¥ (3,115,768)(13,307)(20.5)%(10.0)

Total .............................................................................

¥ 15,315,812¥ 12,186,737¥ (3,129,075)(20.4)%

Although Toyota enjoyed strong sales of new car models such as the Alphard and the Vellfire amid the downturn in the real
economy and increased domestic competition, net revenues in Japan decreased primarily due to lower vehicle unit sales compared tothe prior fiscal year as a result of difficult market conditions. Net revenues in Japan decreased also due to shift in consumer preference
towards compact and subcompact cars influenced by decreased consumer spending and heightened environmental awareness.
North America
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales....................................................

2009 v. 2008 Change

2008

2009

AmountPercentage

2,958

2,212

(746)

(25.2)%

Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountPercentage

Net revenues:
Sales of products.............................................................
Financial services............................................................

¥ 8,339,887
1,083,371¥ 5,226,426
996,488¥ (3,113,461)(86,883)(37.3)%(8.0)

Total ......................................................................

¥ 9,423,258¥ 6,222,914¥ (3,200,344)(34.0)%Net revenues in North America decreased primarily due to the substantial decrease in vehicle unit sales as a result of thedownturn in the market stemming from the financial crisis since the fall of 2008. In particular, the decline in vehicle unit sales is
attributable to the decline in vehicle unit sales of commercial vehicles as a result of the surge in prices of crude oil in the first half offiscal 2009, a shift in consumer preference towards small vehicles and fuel-efficient vehicles, and a rapid decline in vehicle unit salesof passenger vehicles as a result of the financial crisis in the second half of fiscal 2009. Although net revenues from financing
operations decreased, net revenues from financing operations increased by ¥54.3 billion excluding the ¥141.1 billion impact offluctuation in foreign currency exchange rate, which is attributable to the increase in the volume of financings as a result of anincrease in market share primarily of the finance subsidiary in North America.

18

EuropeThousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales....................................................

2009 v. 2008 Change

2008

2009

AmountPercentage

1,284

1,062

(222)

(17.3)%

Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountPercentage

Net revenues:
Sales of products.............................................................
Financial services............................................................

¥ 3,878,677
114,757¥ 2,911,234
101,894¥ (967,443)(12,863)(24.9)%(11.2)

Total ......................................................................

¥ 3,993,434¥ 3,013,128¥ (980,306)(24.5)%

Although Toyota enjoyed strong sales of compact cars and environmentally-friendly cars such as the Aygo and the Prius, net
revenues in Europe decreased due to lower vehicle unit sales compared to the prior fiscal year. The decrease in net revenues was also
due to the fiscal year falling between periods of full model changes.
Asia
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales....................................................

2009 v. 2008 Change

2008

2009

AmountPercentage

956

905

(51)

(5.4)%

Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountNet revenues:
Sales of products.............................................................
Financial services............................................................

Percentage¥ 3,082,832
37,994¥ 2,676,939
42,390¥ (405,893)
4,396(13.2)%
11.6

Total ......................................................................

¥ 3,120,826¥ 2,719,329¥ (401,497)(12.9)%

Although the sales of models such as the Avanza and the Innova increased, net revenues in Asia decreased due to a decrease in
vehicle unit sales compared to the prior fiscal year as a result of the deterioration of the world economy stemming from the subprime
mortgage crisis in the fall of 2008.
Other
Thousands of units
Year ended March 31,

Toyota’s consolidated vehicle unit sales.....................................................

2009 v. 2008 Change

2008

2009

AmountPercentage

1,527

1,443

(84)

(5.5)%

Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountPercentage

Net revenues:
Sales of products.............................................................
Financial services............................................................

¥ 2,186,817
107,320¥ 1,779,089
103,811¥ (407,728)(3,509)(18.6)%(3.3)

Total ......................................................................

¥ 2,294,137¥ 1,882,900¥ (411,237)(17.9)%Net revenues in Other decreased due to the decrease in vehicle unit sales compared to the prior fiscal year as a result of adownturn in the markets.

19

Operating Costs and Expenses
Yen in millions
Year ended March 31,

2009 v. 2008 Change

2008

2009

AmountOperating costs and expenses
Cost of products sold ......................................................
Cost of financing operations...........................................
Selling, general and administrative expenses.................

Percentage¥ 20,452,338
1,068,015
2,498,512¥ 17,468,416
987,384
2,534,781¥ (2,983,922)(80,631)
36,269(14.6)%(7.5)
1.5

Total ......................................................................

¥ 24,018,865¥ 20,990,581¥ (3,028,284)(12.6)%
Yen in millions

2009 v. 2008 Change

Changes in operating costs and expenses:
Effect of decrease in vehicle unit sales and changes in sales mix............................................................
Effect of fluctuation in foreign currency translation rates........................................................................
Effect of decrease in parts sales................................................................................................................
Effect of decrease in research and development expenses.......................................................................
Effect of increase in cost reduction, expenses and other effects ..............................................................

¥ (2,100,000)(2,062,100)(64,400)(54,800)
1,253,016

Total ................................................................................................................................................

¥ (3,028,284)

Operating costs and expenses decreased by ¥3,028.3 billion, or 12.6%, to ¥20,990.5 billion during fiscal 2009 compared withthe prior fiscal year. This decrease resulted primarily from the approximate ¥2,100 billion impact on costs of products attributable tothe decrease in vehicle unit sales and the changes in sales mix, the ¥2,062.1 billion impact of fluctuations in foreign currencytranslation rates, ¥64.4 billion decreased costs corresponding to the decrease in parts sales, and the ¥54.8 billion decrease in researchand development expenses, partially offset by the ¥1,253.0 billion increase in cost reduction, expenses and other effects.
Cost Reduction Efforts
Cost reduction efforts were offset by increases in the prices of steel, precious metals, non-ferrous alloys including aluminum,
plastic parts and other production materials and parts. Although the prices of raw materials such as steel remained high through fiscal
2009 as a result of market conditions, cost reduction efforts, by working closely with suppliers, absorbed the impact of the market
price increase. These cost reduction efforts related to ongoing value engineering and value analysis activities, the use of common parts
that result in a reduction of part types and other manufacturing initiatives designed to reduce the costs of vehicle production.
Cost of Products Sold
Cost of products sold decreased by ¥2,984.0 billion, or 14.6%, to ¥17,468.4 billion during fiscal 2009 compared with the priorfiscal year. The decrease in cost of products sold for automotive operations is primarily attributed to the decrease in vehicle unit sales
and the changes in sales mix, the impact of fluctuations in foreign currency translation rates, the impact of the decrease in parts sales,
and the decrease in research and development expenses, partially offset by increases in expenses. The impact of decrease in vehicle
unit sales and the changes in sales mix reflected such factors as the substantial contraction of the automotive market caused by a rapid
deterioration of the world economy following the financial crisis since the fall of 2008, as well as changes in the market structure
resulting from a shift in consumer preference towards small vehicles and low-price vehicles. The decrease in research anddevelopment expenses is attributable to reduced development costs realized as a result of efforts to improve earnings by improving
development efficiency. This decrease in research and development expenses was achieved while maintaining a focus on thedevelopment of environmentally conscious technologies including hybrid and fuel-cell technology, and the developments in advanced
technologies relating to collision safety and vehicle stability controls to further build up competitive strength in the future. The
increase in expenses is attributable to the inefficiency from decreased operational activity, increase in inventory reserve for the lowerof cost or market, and the incurrence of product-quality related expenses in the first half of fiscal 2009.

20

Cost of Financing Operations
Yen in millions
2009 v. 2008 Change

Changes in cost of financing operations:
Effect of fluctuation in foreign currency translation rates........................................................................
Effect of increase in provision for residual value losses ..........................................................................
Effect of increase in valuation losses on interest rate swaps stated at fair value .....................................
Other .........................................................................................................................................................

¥ (206,400)
70,00012,20043,569Total ................................................................................................................................................

¥ (80,631)

Cost of financing operations decreased by ¥80.6 billion, or 7.5%, to ¥987.4 billion during fiscal 2009 compared with the priorfiscal year. The decrease resulted primarily from the ¥206.4 billion impact of fluctuations in foreign currency translation rates,
partially offset by the ¥70.0 billion increase in provision for residual value losses and the ¥12.2 billion increase in valuation losses oninterest rate swaps stated at fair value. The increase in provision for residual value losses is primarily attributable to the increase inprovision for residual value losses of operating lease vehicles resulting from the decrease in the prices of used vehicles, particularly oflarge vehicles with low fuel economy due to the economic downturn. The increase in valuation losses on interest rate swaps stated atfair value is attributable to the valuation losses on floating to fixed interest rate swaps that are not designated as hedges due to thedecline in market interest rates.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥36.2 billion, or 1.5%, to ¥2,534.7 billion during fiscal 2009
compared with the prior fiscal year. This increase mainly reflects the ¥119.4 billion increase for the financial services operations,partially offset by the ¥95.2 billion decrease of marketing expense which is attributable to reduced marketing costs realized as a resultof efforts to improve earnings. The increase in the financial services operations is primarily due to the ¥170.0 billion increase inprovision for credit losses and net charge-offs, which is attributable to the rise in the ratio of credit losses as a result of the economic
downturn mainly in the United States.
Operating Income and Loss
Yen in millions
2009 v. 2008 Change

Changes in operating income and loss:
Effect of decrease in vehicle unit sales and changes in sales mix and other operational factors.................
Effect of decrease in parts sales....................................................................................................................
Effect of fluctuation in foreign currency translation rates............................................................................
Effect of decrease in research and development expenses...........................................................................
Effect of increase in cost reduction, expenses and other effects ..................................................................

¥ (1,480,000)(17,300)
30,90054,800(1,319,786)

Total ....................................................................................................................................................

¥ (2,731,386)

Toyota’s operating income decreased by ¥2,731.3 billion to an operating loss of ¥461.0 billion during fiscal 2009 comparedwith the prior fiscal year. This decrease was unfavorably affected by the ¥1,300.0 billion decrease in vehicle unit sales and the changes
in sales mix, the ¥1,319.7 billion increase in cost reduction, expenses and other effects, and the ¥17.3 billion decrease in parts sales,
partially offset by the ¥54.8 billion decrease in research and development expenses.
During fiscal 2009, operating income (before the elimination of intersegment profits) for significant geographic regions
decreased by ¥1,677.8 billion in Japan, decreased by ¥695.5 billion in North America, decreased by ¥284.8 billion in Europe,decreased by ¥80.3 billion, or 31.3%, in Asia, and decreased by ¥56.3 billion, or 39.1% in Other compared with the prior fiscal year.

21The following is a discussion of operating income and loss in each geographic market.
Japan
Yen in millions
2009 v. 2008 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales in the export markets and otheroperational factors.....................................................................................................................................
Effect of increase in cost reduction, expenses and other effects ...................................................................
Total .....................................................................................................................................................

¥(730,000)(947,817)¥ (1,677,817)

The decrease in Japan was mainly due to the ¥700.0 billion impact of decreases in both production volume and vehicle unit sales
in the export markets, partially offset by the decrease in research and development expenses. The decreases in both production volume
and vehicle unit sales in the export markets are attributable to the difficult market conditions caused by the downturn in the real
economy.
North America
Yen in millions
2009 v. 2008 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales and other operational factors .................
Effect of fluctuation in foreign currency translation rates..........................................................................
Effect of increase in cost reduction, expenses and other effects ................................................................
Total ..................................................................................................................................................

¥ (580,000)
52,700(168,244)¥ (695,544)

The decrease in North America was mainly due to the ¥400.0 billion impact of decreases in both production volume and vehicle
unit sales, the increases in the provision for credit losses, net charge-offs and provision for residual value losses in sales financesubsidiaries in the United States, which are included in “Effect of increase in cost reduction, expenses and other effects”, partially
offset by the ¥52.7 billion impact of the fluctuations in foreign currency translation rates. The decreases in both production volume
and vehicle unit sales in North America are attributable to the rapid decline in vehicle unit sales of commercial vehicles and passenger
vehicles due to the downturn in the market stemming from the financial crisis in the fall of 2008.
EuropeYen in millions
2009 v. 2008 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales and other operational factors .................
Effect of fluctuation in foreign currency translation rates..........................................................................
Effect of increase in cost reduction, expenses and other effects ................................................................
Total ..................................................................................................................................................

¥ (190,000)
18,100(112,904)¥ (284,804)

The decrease in Europe was mainly due to the ¥180.0 billion impact of decreases in both production volume and vehicle unit
sales, partially offset by the ¥18.1 billion impact of fluctuations in foreign currency translation rates. The decreases in both production
volume and vehicle unit sales in Europe was attributable to the significant decline in vehicle unit sales in western Europe compared tothe prior fiscal year as a result of the rapid market contraction due to the financial crisis in the fall of 2008. The decreases are also
attributable to the fiscal year falling between periods of full model changes.
Asia
Yen in millions
2009 v. 2008 Change

Changes in operating income and loss:
Effect of decrease in production volume and vehicle unit sales and other operational factors ..........
Effect of fluctuation in foreign currency translation rates...................................................................
Effect of increase in cost reduction, expenses and other effects .........................................................
Total ...........................................................................................................................................

22

¥

—
(24,400)(55,896)¥ (80,296)

The decrease in Asia was mainly due to the ¥24.4 billion impact of the fluctuations in foreign currency translation rates. The
decrease in production volume and vehicle unit sales in Asia was primarily attributable to the sales decline in the market compared tothe prior fiscal year following the financial crisis in the majority of Asian countries including Thailand.
Other
The decrease in Other was primarily due to the decrease in vehicle unit sales.
Other Income and Expenses
Interest and dividend income decreased by ¥27.3 billion, or 16.4%, to ¥138.4 billion during fiscal 2009 compared with the priorfiscal year mainly due to a decrease in interest income from marketable securities.
Interest expense increased by ¥0.8 billion, or 1.7%, to ¥46.9 billion during fiscal 2009 compared with the prior fiscal year.
Foreign exchange gains, net decreased by ¥11.0 billion to a loss of ¥1.8 billion during fiscal 2009 compared with the prior fiscal
year. Foreign exchange gains and losses include the differences between the value of foreign currency denominated sales translated at
prevailing exchange rates and the value of the sales amounts settled during the fiscal year, including those settled using forward
foreign currency exchange contracts.
Other income, net decreased by ¥227.2 billion to a loss of ¥189.1 billion during fiscal 2009 compared with the prior fiscal year.
This decrease was mainly due to the recognition of impairment losses on available-for sale securities.
Income Taxes
The provision for income taxes decreased by ¥968.0 billion to a tax benefit of ¥56.5 billion during fiscal 2009 compared withthe prior fiscal year primarily due to the decrease in income before income taxes. The effective tax rate was 10.1%, which was lower
than its statutory tax rate in Japan primarily due to a recognition of valuation allowance for deferred tax assets at domestic andoverseas subsidiaries.
Net Income and Loss attributable to the Noncontrolling Interest and Equity in Earnings of Affiliated Companies
Net income and loss attributable to the noncontrolling interest decreased by ¥102.2 billion to a loss of ¥24.2 billion during fiscal
2009 compared with the prior fiscal year. This decrease was mainly due to a decrease in net income attributable to the shareholders ofconsolidated subsidiaries.
Equity in earnings of affiliated companies during fiscal 2009 decreased by ¥227.4 billion, or 84.2%, to ¥42.7 billion comparedwith the prior fiscal year. This decrease was due to a decrease in net income attributable to the shareholders of affiliated companies.
Net Income and Loss attributable to Toyota Motor Corporation
Net income attributable to Toyota Motor Corporation decreased by ¥2,154.8 billion to a loss of ¥437.0 billion during fiscal 2009
compared with the prior fiscal year.
Other Comprehensive Income and Loss
Other comprehensive losses decreased by ¥76.0 billion to losses of ¥866.5 billion for fiscal 2009 compared with the prior fiscal
year. This decrease in losses resulted primarily from favorable foreign currency translation adjustments in fiscal 2009 to losses of¥381.3 billion compared with losses of ¥461.1 billion in the prior fiscal year, and a decrease in unrealized holding losses on securities
in fiscal 2009 to ¥293.1 billion compared with ¥347.8 billion in the prior fiscal year. The decrease in unrealized holding losses on
securities was mainly due to the recognition of impairment losses on available-for sale securities.

23

Segment Information
The following is a discussion of results of operations for each of Toyota’s operating segments. The amounts presented are prior
to intersegment elimination.
Yen in millions
Year ended March 31,

Automotive:
Net revenues ................................................................
Operating income (loss)...............................................
Financial Services:
Net revenues ................................................................
Operating income (loss)...............................................
All Other:
Net revenues ................................................................
Operating income (loss)...............................................
Intersegment elimination/unallocated amount:
Net revenues ................................................................
Operating income (loss)...............................................

2009 v. 2008 Change

2008

2009

AmountPercentage¥ 24,177,306
2,171,905¥ 18,564,723(394,876)¥ (5,612,583)(2,566,781)

1,498,354
86,494

1,377,548(71,947)(120,806)(158,441)(8.1)—

1,346,955
33,0801,184,947
9,913(162,008)(23,167)(12.0)(70.0)(733,375)(21,104)(597,648)(4,101)

135,727
17,003——(23.2)%—

Automotive Operations Segment
The automotive operations segment is Toyota’s largest operating segment by net revenues. Net revenues for the automotive
segment decreased during fiscal 2009 by ¥5,612.6 billion, or 23.2%, compared with the prior fiscal year to ¥18,564.7 billion. The
decrease was primarily due to decreased vehicle unit sales and the changes in sales mix of approximately ¥3,400.0 billion, fluctuations
in foreign currency translation rates of ¥1,833.8 billion and decreased parts sales during fiscal 2009.
Operating income from the automotive operations decreased by ¥2,566.7 billion during fiscal 2009 compared with the prior year
to an operating loss of ¥394.8 billion. This decrease was primarily due to the decrease in vehicle unit sales and changes in sales mix of¥1,300.0 billion, the increase in expenses of ¥491.3 billion, and the decrease in parts sales, partially offset by the decrease in researchand development expenses.
The decrease in vehicle unit sales and changes in sales mix reflected such factors as a substantial contraction of the automotive
market caused by a rapid deterioration of the world economy following the financial crisis since the fall of 2008, as well as changes in
the market structure resulting from a shift in consumer preference towards small vehicles and low-price vehicles. The increase in
expenses is attributable to the inefficiency from decreased operational activity, increase in inventory reserve for the lower of cost or
market, and the incurrence of product-quality related expenses in the first half of fiscal 2009.
Financial Services Operations Segment
Net revenues for the financial services operations decreased during fiscal 2009 by ¥120.8 billion, or 8.1%, compared to the priorfiscal year to ¥1,377.5 billion. This decrease was primarily due to the unfavorable impact of fluctuations in foreign currencytranslation rates of ¥195.0 billion, which was partially offset by a higher volume of financing of ¥95.0 billion. Eliminating thedifference in the Japanese yen value used for translation purposes, net revenues for its financial services operations would have been
approximately ¥1,572.5 billion during fiscal 2009, a 5.0% increase compared with the prior fiscal year. The increase in net revenues
from financial services operations, eliminating the difference in the Japanese yen value used for translation purposes, is primarily
attributable to the increase in volume of financings as a result of an increase in market share primarily of the finance subsidiary inNorth America.
Operating income from financial services operations decreased by ¥158.5 billion to an operating loss of ¥72.0 billion during
fiscal 2009 compared with the prior fiscal year. This decrease was primarily due to the ¥170.0 billion increase in provision for credit
losses, net charge-offs and the ¥70.0 billion increase in provision for residual value losses, and the ¥12.2 billion increase in valuation
losses on interest rate swaps stated at fair value in sales finance subsidiaries primarily in the United States.
The increase in provision for credit losses, net charge-offs is primarily attributable to the increase in provision for credit losses
and net charge-offs in the United States due to the rise in the ratio of credit losses as a result of the economic downturn.
The increase in provision for residual value losses is primarily attributable to the decrease in the prices of used vehicles,
particularly of large vehicles with low fuel economy, as a result of the economic downturn. The increase in valuation losses on interest

24

rate swaps stated at fair value is attributable to the valuation losses on floating to fixed interest rate swaps that are not designated ashedges due to the decline in market interest rates.
Ratio of credit loss experience in the United States is as follows:Year ended March 31,
2008

2009

Net charge-offs as a percentage of average gross earning assets:
Finance receivables............................................................................................................................
Operating lease ..................................................................................................................................

1.08%
0.40

1.54%
0.86

Total .........................................................................................................................................

0.91%

1.37%

All Other Operations Segment
Net revenues for Toyota’s other operations segment decreased by ¥162.0 billion, or 12.0%, to ¥1,184.9 billion during fiscal
2009 compared with the prior fiscal year.
Operating income from Toyota’s other operations segment decreased by ¥23.1 billion, or 70.0%, to ¥9.9 billion during fiscal
2009 compared with the prior fiscal year.
Related Party Transactions
Toyota does not have any significant related party transactions other than transactions with affiliated companies in the ordinary
course of business. See note 12 to the consolidated financial statements for further discussion.
Legislation Regarding End-of-Life Vehicles
In October 2000, the European Union enforced a directive that requires member states to promulgate regulations implementing
the following:•

manufacturers shall bear all or a significant part of the costs for taking back end-of-life vehicles put on the market after
July 1, 2002 and dismantling and recycling those vehicles. Beginning January 1, 2007, this requirement will also be
applicable to vehicles put on the market before July 1, 2002;•

manufacturers may not use certain hazardous materials in vehicles sold after July 2003;•

vehicles type-approved and put on the market after December 15, 2008 shall be re-usable and/or recyclable to a minimumof 85% by weight per vehicle and shall be re-usable and/or recoverable to a minimum of 95% by weight per vehicle; and•end-of-life vehicles must meet actual re-use of 80% and re-use as material or energy of 85%, respectively, of vehicle weightby 2006, rising to 85% and 95%, respectively, by 2015.

See note 23 to the consolidated financial statements for further discussion.
Recent Accounting Pronouncements in the United States
In June 2009, the Financial Accounting Standards Board (“FASB”) issued updated guidance of accounting for and disclosure oftransfers and servicing. This guidance eliminates the concept of a qualifying special-purpose entity, changes the requirements forderecognizing financial assets, and requires additional disclosures about transfers of financial assets. This guidance is effective forfiscal year beginning after November 15, 2009, and for interim period within the fiscal year. Management is evaluating the impact of
adopting this guidance on Toyota’s consolidated financial statements.
In June 2009, FASB issued updated guidance of accounting for and disclosure of consolidation. This guidance changes how acompany determines when a variable interest entity should be consolidated. This guidance is effective for fiscal year beginning afterNovember 15, 2009, and for interim period within the fiscal year. Management is evaluating the impact of adopting this guidance on
Toyota’s consolidated financial statements.

25

Critical Accounting Estimates
The consolidated financial statements of Toyota are prepared in conformity with accounting principles generally accepted in the
United States of America. The preparation of these financial statements requires the use of estimates, judgments and assumptions that
affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues andexpenses during the periods presented. Toyota believes that of its significant accounting policies, the following may involve a higher
degree of judgments, estimates and assumptions:
Product Warranty
Toyota generally warrants its products against certain manufacturing and other defects. Product warranties are provided forspecific periods of time and/or usage of the product and vary depending upon the nature of the product, the geographic location of thesale and other factors. All product warranties are consistent with commercial practices. Toyota includes a provision for estimatedproduct warranty costs as a component of cost of sales at the time the related sale is recognized. The accrued warranty costs represent
management’s best estimate at the time of sale of the total costs that Toyota will incur to repair or replace product parts that fail whilestill under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience of product failures aswell as current information on repair costs. The amount of warranty costs accrued also contains an estimate of warranty claim
recoveries to be received from suppliers. The foregoing evaluations are inherently uncertain, as they require material estimates andsome products’ warranties extend for several years. Consequently, actual warranty costs may differ from the estimated amounts andcould require additional warranty provisions. If these factors require a significant increase in Toyota’s accrued estimated warranty
costs, it would negatively affect future operating results of the automotive operations.
Toyota accrues for costs of recalls and other safety measures based on management’s estimates when it is probable a liability
has been incurred and the amount of loss can be reasonably estimated. Prior to the fourth quarter of this fiscal year, amounts were
accrued based on individual occurrences of recalls and other safety measures. During the fourth quarter of this consolidated fiscal year,
as a result of significant changes in facts and circumstances, Toyota has employed an estimation model, to accrue at the time ofvehicle sale, an amount that represents management’s best estimate of expenses related to future recalls and other safety measures.
The estimation model for recalls and other safety measures takes into account Toyota’s historical experience and individual
occurrences of recalls and other safety measures. This change resulted from Toyota’s most recent experience with recalls and othersafety measures, changes in the operating processes such as the establishment of the Special Committee for Global Quality to address
quality-related matters, as well as the broadening of the number of vehicles subject to recalls and other safety measures. Consequently,
actual costs of recalls and other safety measures may differ from the estimated amounts.
Allowance for Doubtful Accounts and Credit Losses
Natures of estimates and assumptions
Sales financing and finance lease receivables consist of retail installment sales contracts secured by passenger cars andcommercial vehicles. Collectability risks include consumer and dealer insolvencies and insufficient collateral values (less costs to sell)
to realize the full carrying values of these receivables. As a matter of policy, Toyota maintains an allowance for doubtful accounts andcredit losses representing management’s estimate of the amount of asset impairment in the portfolios of finance, trade and otherreceivables. Toyota determines the allowance for doubtful accounts and credit losses based on a systematic, ongoing review andevaluation performed as part of the credit-risk evaluation process, historical loss experience, the size and composition of the portfolios,
current economic events and conditions, the estimated fair value, adequacy of collateral and other pertinent factors. This evaluation isinherently judgmental and requires material estimates, including the amounts and timing of future cash flows expected to be received,
which may be susceptible to significant change. Although management considers the allowance for doubtful accounts and credit losses
to be adequate based on information currently available, additional provisions may be necessary due to (i) changes in management
estimates and assumptions about asset impairments, (ii) information that indicates changes in expected future cash flows, or(iii) changes in economic and other events and conditions. To the extent that sales incentives remain an integral part of sales
promotion with the effect of reducing new vehicle prices, resale prices of used vehicles and, correspondingly, the collateral value ofToyota’s sales financing and finance lease receivables could experience further downward pressure. If these factors require asignificant increase in Toyota’s allowance for doubtful accounts and credit losses, it could negatively affect future operating results ofthe financial services operations. The level of credit losses, which has a greater impact on Toyota’s results of operations, is influenced
primarily by two factors: frequency of occurrence and severity of loss. For evaluation purposes, exposures to credit loss are segmented
into the two primary categories of “consumer” and “dealer”. Toyota’s consumer portfolio consists of smaller balances that arehomogenous retail finance receivables and lease earning assets. The dealer portfolio consists of wholesale and other dealer financing
receivables. The overall allowance for credit losses is evaluated at least quarterly, considering a variety of assumptions and factors todetermine whether reserves are considered adequate to cover probable losses.

26

Sensitivity analysis
The level of credit losses, which could significantly impact Toyota’s results of operations, is influenced primarily by two
factors: frequency of occurrence and severity of loss. The overall allowance for credit losses is evaluated at least quarterly,
considering a variety of assumptions and factors to determine whether reserves are considered adequate to cover probable losses. The
following table illustrates the effect of an assumed change in expected severity of loss, which Toyota believes is one of the key criticalestimates for determining the allowance for credit losses, assuming all other assumptions are held consistent. The table below
represents the impact on the allowance for credit losses in Toyota’s financial services operations as any change impacts mostsignificantly on the financial services operations.
Yen in millions
Effect on the allowancefor credit losses
as of March 31, 201010 percent increase in expected severity of loss ...............................................................................................

¥ 14,421

Investment in Operating Leases
Natures of estimates and assumptions
Vehicles on operating leases, where Toyota is the lessor, are valued at cost and depreciated over their estimated useful lives
using the straight-line method to their estimated residual values. Toyota utilizes industry published information and its own historicalexperience to determine estimated residual values for these vehicles. Toyota evaluates the recoverability of the carrying values of its
leased vehicles for impairment when there are indications of declines in residual values, and if impaired, Toyota recognizes anallowance for its residual values. In addition, to the extent that sales incentives remain an integral part of sales promotion with theeffect of reducing new vehicle prices, resale prices of used vehicles and, correspondingly, the fair value of Toyota’s leased vehicles
could be subject to downward pressure. If resale prices of used vehicles decline, future operating results of the financial services
operations are likely to be adversely affected by incremental charges to reduce estimated residual values. Throughout the life of thelease, management performs periodic evaluations of estimated end-of-term market values to determine whether estimates used in thedetermination of the contractual residual value are still considered reasonable. Factors affecting the estimated residual value at leasematurity include, but are not limited to, new vehicle incentive programs, new vehicle pricing, used vehicle supply, projected vehicle
return rates, and projected loss severity. The vehicle return rate represents the number of leased vehicles returned at contract maturity
and sold by Toyota during the period as a percentage of the number of lease contracts that, as of their origination dates, werescheduled to mature in the same period. A higher rate of vehicle returns exposes Toyota to higher potential losses incurred at leasetermination. Severity of loss is the extent to which the end-of-term market value of a lease is less than its carrying value at lease end.
Sensitivity analysis
The following table illustrates the effect of an assumed change in the vehicle return rate, which Toyota believes is one of thecritical estimates, in determining the residual value losses, holding all other assumptions constant. The following table represents theimpact on the residual value losses in Toyota’s financial services operations as those changes have a significant impact on financing
operations.
Yen in millions
Effect on the residual value losses
over the remaining termsof the operating leases
on and after April 1, 2010

1 percent increase in vehicle return rate...........................................................................................

¥ 2,047

Impairment of Long-Lived Assets
Toyota periodically reviews the carrying value of its long-lived assets held and used and assets to be disposed of, including
intangible assets, when events and circumstances warrant such a review. This review is performed using estimates of future cash flows.
If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded for the amount by which thecarrying value of the long-lived asset exceeds its fair value. Management believes that the estimates of future cash flows and fairvalues are reasonable. However, changes in estimates of such cash flows and fair values would affect the evaluations and negatively
affect future operating results of the automotive operations.
Pension Costs and Obligations
Natures of estimates and assumptions
Pension costs and obligations are dependent on assumptions used in calculating such amounts. These assumptions include
discount rates, benefits earned, interest costs, expected rate of return on plan assets, mortality rates and other factors. Actual results

27that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized
expense in future periods. While management believes that the assumptions used are appropriate, differences in actual experience orchanges in assumptions may affect Toyota’s pension costs and obligations.
The two most critical assumptions impacting the calculation of pension costs and obligations are the discount rates and the
expected rates of returns on plan assets. Toyota determines the discount rates mainly based on the rates of high quality fixed income
bonds or fixed income governmental bonds currently available and expected to be available during the period to maturity of thedefined benefit pension plans. Toyota determines the expected rates of return for pension assets after considering several applicablefactors including, the composition of plan assets held, assumed risks of asset management, historical results of the returns on plan
assets, Toyota’s principal policy for plan asset management, and forecasted market conditions. A weighted-average discount rate of
2.8% and a weighted-average expected rate of return on plan assets of 3.6% are the results of assumptions used for the various pension
plans in calculating Toyota’s consolidated pension costs for fiscal 2010. Also, a weighted-average discount rate of 2.8% is the resultof assumption used for the various pension plans in calculating Toyota’s consolidated pension obligations for fiscal 2010.
Sensitivity analysis
The following table illustrates the effects of assumed changes in weighted-average discount rate and the weighted-average
expected rate of return on plan assets, which Toyota believes are critical estimates in determining pension costs and obligations,assuming all other assumptions are consistent.
Yen in millions

Discount rates
0.5% decrease ...............................................................................................
0.5% increase................................................................................................
Expected rate of return on plan assets
0.5% decrease ...............................................................................................
0.5% increase................................................................................................

Effect on pre-tax income
for the year ended
March 31, 2011

Effect on PBO
as of March 31, 2010

¥ (10,057)
9,603¥ 127,971(118,378)¥ (5,895)
5,895

Derivatives and Other Contracts at Fair Value
Toyota uses derivatives in the normal course of business to manage its exposure to foreign currency exchange rates and interest
rates. The accounting is complex and continues to evolve. In addition, there are significant judgments and estimates involved in theestimating of fair value in the absence of quoted market values. These estimates are based upon valuation methodologies deemed
appropriate under the circumstances. However, the use of different assumptions may have a material effect on the estimated fair value
amounts.
Marketable Securities and Investments in Affiliated Companies
Toyota’s accounting policy is to record a write-down of such investments to net realizable value when a decline in fair value
below the carrying value is other-than-temporary. In determining if a decline in value is other-than-temporary, Toyota considers thelength of time and the extent to which the fair value has been less than the carrying value, the financial condition and prospects of thecompany and Toyota’s ability and intent to retain its investment in the company for a period of time sufficient to allow for any
anticipated recovery in fair value.
Deferred Tax Assets
Toyota estimates whether future taxable income is sufficient at a particular tax-paying component and records valuation
allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized in the future periods.
Actual taxable income may differ from the estimated amounts due to various assumptions used to estimate future taxable income. If
additional valuation allowance is recorded due to lower actual taxable income than estimated amounts it would negatively affect future
operating results.
Outlook
While Toyota expects that an economic recovery trend in China will prevail across the Asian markets and developed countries
will see a gradual economic recovery in fiscal 2011, Toyota also believes there is a risk of a downturn in the world economy during
fiscal 2011 resulting from credit contraction in financial markets, unemployment, increases in raw material prices, and other factors.
Toyota expects the automotive market to expand over the medium- to long-term particularly in resource-rich and emerging
countries. Currently, the global competition in the automotive market has intensified, as shown in the fierce competition in the small

28

and low-price vehicles markets, and the advancement of new technologies and introduction of new products in response to growing
environmental awareness. For purposes of this outlook discussion, Toyota is assuming an average exchange rate of ¥90 to the U.S.
dollar and ¥125 to the euro. With the foregoing external factors in mind, Toyota expects that net revenues for fiscal 2011 will increase
compared with fiscal 2010 as a result of an increase in vehicle unit sales. With respect to operating income, factors increasing
operating income include cost reduction efforts, a decrease in depreciation and other efforts to decrease expenses. Toyota does notexpect a significant increase in expenses related to recalls and other safety measures, compared with fiscal 2010. On the other hand,factors decreasing operating income include the assumed exchange rate of a stronger Japanese yen against the U.S. dollar in fiscal
2011 compared to the prior fiscal year as well as increases in selling expenses and incentives caused by strengthened sales promotion
activities; which offset the factors increasing operating income. As a result, Toyota expects that operating income will increase in
fiscal 2011 compared with fiscal 2010. Also, Toyota expects income before income taxes and equity in earnings of affiliatedcompanies and net income attributable to Toyota Motor Corporation will increase in fiscal 2011. Exchange rate fluctuations canmaterially affect Toyota’s operating results. In particular, a strengthening of the Japanese yen against the U.S. dollar can have amaterial adverse effect on Toyota’s operating results. Please see “Operating and Financial Review and Prospects — Operating Results— Overview — Currency Fluctuations.” for further discussion.
The foregoing statements are forward-looking statements based upon Toyota’s management’s assumptions and beliefs regarding
exchange rates, market demand for Toyota’s products, economic conditions and others. Please see “Cautionary Statement Concerning
Forward-Looking Statements”. Toyota’s actual results of operations could vary significantly from those described above as a result of
unanticipated changes in the factors described above or other factors, including those described in “Risk Factors”.
5.B LIQUIDITY AND CAPITAL RESOURCES
Historically, Toyota has funded its capital expenditures and research and development activities primarily through cash
generated by operations. In fiscal 2010, as in the prior fiscal year, Toyota funded cash partially through additional loans and issuanceof notes, considering the future business climate as well as to ensure a sound financial base.
In fiscal 2011, Toyota expects to sufficiently fund its capital expenditures and research and development activities primarily
through cash and cash equivalents on hand, and cash generated by operations. Toyota will use its funds for the development ofenvironment technologies, maintenance and replacement of manufacturing facilities, and the introduction of new products. See“Information on the Company — Business Overview — Capital Expenditures and Divestitures” for information regarding Toyota’smaterial capital expenditures and divestitures for fiscal 2008, 2009 and 2010, and information concerning Toyota’s principal capital
expenditures and divestitures currently in progress.
Toyota funds its financing programs for customers and dealers, including loans and leasing programs, from both cash generated
by operations and borrowings by its sales finance subsidiaries. Toyota seeks to expand its ability to raise funds locally in markets
throughout the world by expanding its network of finance subsidiaries.
Net cash provided by operating activities was ¥2,558.5 billion for fiscal 2010, compared with ¥1,476.9 billion for the prior fiscal
year. The increase in net cash provided by operating activities resulted primarily from a decrease in cash payment to suppliers
attributable to the decrease in cost of products sold in the automotive operations, and cash payments for income taxes, partially offset
by a decrease in cash collection received from sale of products due to a decrease in net revenue for the automotive operations.
Net cash used in investing activities was ¥2,850.1 billion for fiscal 2010, compared with ¥1,230.2 billion for the prior fiscal year.
The increase in net cash used in investing activities resulted primarily from an increase in purchases of marketable securities andsecurity investments.
Net cash provided or used by financing activities was a ¥277.9 billion decrease for fiscal 2010, compared with ¥698.8 billion
increase for the prior fiscal year. The decrease in net cash provided by financing activities resulted primarily from a decrease of shortterm borrowings, partially offset by a decrease in dividends paid.
Total capital expenditures for property, plant and equipment, excluding vehicles and equipment on operating leases, were¥604.5 billion during fiscal 2010, a decrease of 55.7% over the ¥1,364.5 billion in total capital expenditures during the prior fiscal
year. The decrease in capital expenditures resulted primarily from a decrease of investments in Japan and North America.
Total expenditures for vehicles and equipment on operating leases were ¥833.0 billion during fiscal 2010, a decrease of 13.3%
over the ¥960.3 billion in expenditures from the prior fiscal year. The decrease in expenditures for vehicles and equipment on
operating leases resulted primarily from a decrease in investments in the financial services operations.
Toyota expects investments in property, plant and equipment, excluding vehicles and equipment on operating leases, to beapproximately ¥740.0 billion during fiscal 2011. Toyota’s expected investments include ¥440.0 billion in Japan, ¥120.0 billion in
North America, ¥40.0 billion in Europe, ¥90.0 billion in Asia and ¥50.0 billion in Other.

29Based on current available information, Toyota does not expect environmental matters to have a material impact on its financial
position, results of operations, liquidity or cash flows during fiscal 2011. However, there exists uncertainty with respect to Toyota’s
obligations under current and future environment regulations as described in “Information on the Company — Business Overview —Governmental Regulations, Environmental and Safety Standards”.
Cash and cash equivalents were ¥1,865.7 billion as of March 31, 2010. Most of Toyota’s cash and cash equivalents are held inJapanese yen and in U.S. dollars. In addition, time deposits were ¥392.7 billion and marketable securities were ¥1,793.1 billion as ofMarch 31, 2010.
Liquid assets, which Toyota defines as cash and cash equivalents, time deposits, marketable debt securities and its investment inmonetary trust funds, increased during fiscal 2010 by ¥1,069.1 billion, or 25.3%, to ¥5,298.2 billion.
Trade accounts and notes receivable, net increased during fiscal 2010 by ¥493.5 billion, or 35.4%, to ¥1,886.2 billion. This
increase was primarily due to the increase in the volume of sales in the second half of fiscal 2010.
Inventories decreased during fiscal 2010 by ¥37.0 billion, or 2.5%, to ¥1,422.3 billion.
Total finance receivables, net increased during fiscal 2010 by ¥293.2 billion, or 3.1%, to ¥9,840.1 billion. The increase infinance receivables, net is mainly due to increase in retail receivables, partially offset by fluctuations in foreign currency translation
rates. As of March 31, 2010, finance receivables were geographically distributed as follows: in North America 61.9%, in Japan 12.8%,
in Europe 10.3%, in Asia 4.7% and in Other 10.3%. Although Toyota maintains programs to sell finance receivables throughqualifying special purpose entities, no sales of finance receivables were made during fiscal 2010.
Marketable securities and other securities investments, including those included in current assets, increased during fiscal 2010by ¥1,451.2 billion, or 55.9%, primarily reflecting purchase of marketable securities and security investments, and an increase in thefair values of these securities and investments.
Property, plant and equipment decreased during fiscal 2010 by ¥690.7 billion, or 9.3%, primarily reflecting the impacts ofdepreciation changes during the year and fluctuations in foreign currency translation rates, partially offset by the capital expenditures.
Accounts and notes payable increased during fiscal 2010 by ¥657.0 billion, or 50.6%. This increase was primarily due to theincrease in the volume of transactions in the second half of fiscal 2010.
Accrued expenses increased during fiscal 2010 by ¥195.2 billion, or 12.7%, reflecting the increase in expenses related to therecalls and other safety measures.
Income taxes payable increased during fiscal 2010 by ¥102.0 billion, or 199.0%, primarily as a result of an increase in income
before income taxes.
Toyota’s total borrowings decreased during fiscal 2010 by ¥105.2 billion, or 0.8%. Toyota’s short-term borrowings consist ofloans with a weighted-average interest rate of 1.55% and commercial paper with a weighted-average interest rate of 0.44%. Short-termborrowings decreased during fiscal 2010 by ¥338.0 billion, or 9.3%, to ¥3,279.6 billion. Toyota’s long-term debt consists of unsecured
and secured loans, medium-term notes, unsecured notes and long-term capital lease obligations with interest rates ranging from 0.00%
to 29.25%, and maturity dates ranging from 2010 to 2047. The current portion of long-term debt decreased during fiscal 2010 by¥481.2 billion, or 17.8%, to ¥2,218.3 billion and the non-current portion increased by ¥714.0 billion, or 11.3%, to ¥7,015.4 billion.
The decrease in total borrowings primarily resulted from decrease in medium-term notes and short-term borrowings, partially offset byincrease in long-term borrowings. As of March 31, 2010, approximately 36% of long-term debt was denominated in Japanese yen,
21% in U.S. dollars, 13% in euros and 30% in other currencies. Toyota hedges fixed rate exposure by entering into interest rate swaps.
There are no material seasonal variations in Toyota’s borrowings requirements.
As of March 31, 2010, Toyota’s total interest bearing debt was 120.8% of Toyota Motor Corporation shareholders’ equity,
compared to 125.4% as of March 31, 2009.
Toyota’s long-term debt is rated “AA” by Standard & Poor’s Ratings Group, “Aa2” by Moody’s Investors Services and “AAA”
by Rating and Investment Information, Inc., as of May 31, 2010. A credit rating is not a recommendation to buy, sell or hold securities.
A credit rating may be subject to withdrawal or revision at any time. Each rating should be evaluated separately of any other rating.
Toyota’s unfunded pension liabilities decreased during fiscal 2010 by ¥106.1 billion, or 16.2%, to ¥547.6 billion. The unfundedpension liabilities relate primarily to the parent company and its overseas subsidiaries. The unfunded amounts will be funded throughfuture cash contributions by Toyota or in some cases will be funded on the retirement date of each covered employee. The unfundedpension liabilities decreased in fiscal 2010 compared to the prior year primarily due to an increase in the fair value of plan assets. Seenote 19 to the consolidated financial statements for further discussion.

30

Toyota’s treasury policy is to maintain controls on all exposures, to adhere to stringent counterparty credit standards, and toactively monitor marketplace exposures. Toyota remains centralized, and is pursuing global efficiency of its financial services
operations through Toyota Financial Services Corporation.
The key element of Toyota’s financial strategy is maintaining a strong financial position that will allow Toyota to fund its
research and development initiatives, capital expenditures and financing operations efficiently even if earnings experience short-term
fluctuations. Toyota believes that it maintains sufficient liquidity for its present requirements and that by maintaining its high credit
ratings, it will continue to be able to access funds from external sources in large amounts and at relatively low costs. Toyota’s ability
to maintain its high credit ratings is subject to a number of factors, some of which are not within Toyota’s control. These factors
include general economic conditions in Japan and the other major markets in which Toyota does business, as well as Toyota’s
successful implementation of its business strategy.
5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES
Toyota’s research and development activities focus on the environment, vehicle safety, information technology and productdevelopment.
Toyota’s environmental research and development activities focus on:•

Developing light-weight and more fuel-efficient engines and transmissions. These technologies include improved
technologies in fuel economy, emission, and performance, such as the development of next-generation direct injection
system and variable valve system for gasoline engines and the development of the next-generation ultra high pressurecommon rail system and the diesel particulate and nitrous oxide reduction system for diesel engines.

•

Developing alternative fuel powering systems for commercial sale. This includes developing hybrid vehicles and fuel cellhybrid vehicles. The second-generation Prius that Toyota introduced in September 2003 features a new hybrid system
which decreases negative environmental impact while increasing power and performance. In July 2007, Toyota developed
the Plug-in Hybrid Vehicle (PHV) and received certification from Japan’s Ministry of Land, Infrastructure, Transport andTourism (MLIT). PHV runs as an Electric Vehicle (EV) in short distances and runs as a regular hybrid vehicle in long
distances. Tests are conducted in Japan, North America and Europe and in late 2009, Toyota commenced its sale of PHVs
with lithium ion batteries to fleet vehicle users in Japan, North America and Europe. In addition, in September 2008,
Toyota started leasing the new Toyota Fuel Cell Hybrid Vehicle — advanced (the “new Toyota FCHV-adv”). The new
Toyota FCHV-adv has completely overhauled its fuel cell system and has made significant improvements to lowtemperature startup performance and cruising distance, which had posed challenges to promoting its widespread use.
Furthermore, Toyota is also working on the development of alternative fuels for vehicles fueled by compressed natural gas
and liquid petroleum gas, as well as for flexible fuel vehicles that run on bioethanol and gasoline which are recently
drawing a lot of attention. Toyota has also been conducting a wide range of research and study on alternative fuel such as
biofuel, including cellulose ethanol and hydrogenized bio-diesel, and utilizing it in developing alternative-fuel vehicles.

•

Engaging in recycling activities that take into account the lifecycle (development, manufacture, use, disposal) of a vehicle.
Research and development focuses primarily on (1) developing materials that are suitable for recycling and designs thatfacilitate dismantling parts, and (2) research on effective dismantling technology of end-of-life vehicles and use of shredder
residue.

Toyota’s work in the area of vehicle safety is focused on the development of technologies designed to prevent accidents in thefirst instance, as well as the development of technologies that protect passengers and reduce the damage on impact in the event of an
accident. Safety technologies in development include:•

research on protecting diverse passengers, including senior citizens,•

autonomous driving support systems, including frontal crash-prevention support systems, and•data exchange driving-support systems using advanced communication technologies.

To expand the frontiers of safety technology in automobiles, Toyota completed in 1995 its first prototype Advanced Safety
Vehicle, the ASV-1. The ASV-2, which was introduced in 2000, incorporates emerging technologies, such as an autonomous safety
support system that uses CCD stereo cameras to recognize obstacles in traffic lanes and an infrastructure-harmonized safety support
system to warn the driver of pedestrian crossings. In 2002, Toyota conducted road testing of the ASV-3, a prototype based on further
improved infrastructure-harmonized system. With the February 2003 introduction of the Harrier in Japan, Toyota became the first car
manufacturer to implement a pre-collision safety system in its automobiles. This advanced system consists of pre-collision sensors thatuse millimeter wave radar to detect a possible collision, seat belts that tighten their hold on passengers when a collision is determined
to be inevitable and a brake assist system that utilizes power-assisted braking to minimize the speed on impact. In February 2004,
Toyota introduced the pre-collision safety system for the first time in the United States by equipping the LS430 with the above
features and suspension control features that control nose dives when applying the brakes.

31

In September 2006, at the time of introduction of LS460 in Japan, Toyota established the world’s first enhanced pre-collisionsafety system, which added functions to detect pedestrians in front, to support driver steering, and to react to vehicle collision.
In February 2008, Toyota developed the world’s first driver monitoring pre-collision safety system for the Crown sold in Japan,that monitors whether the driver’s eyes are open, in addition to the face monitor which monitors the direction in which the driver isfacing.
Furthermore, in March 2009, Toyota developed and introduced the world’s first “front-side pre-collision safety system”, which
detects possible head-on and front-side collisions such as at intersections, for the Crown Majesta.
Toyota’s product development program uses a series of methods which are generally intended to promote timely andappropriate responses to changing market demand. These methods include:•

optimizing and eliminating vehicle platforms,•

sharing parts and components among multiple vehicles,•

shortening the time for development and production preparation by the simultaneous study of design and productionengineering processes, and•using computers for production design and evaluation.

In September 2002, Toyota and Nissan Motor Co., Ltd. (“Nissan”) entered into an agreement setting forth the basic terms oftechnical cooperation and other long-term projects involving hybrid systems. Pursuant to this agreement, Toyota has provided partsand components of the Camry Hybrid’s hybrid system to Nissan’s Altima Hybrid since 2006. In March 2004, Toyota and Ford Motor
Company announced that they have entered into licensing agreements for patents related to hybrid systems and emissions purification.
Pursuant to the agreements, Toyota will license, to Ford Motor Company, patents related to hybrid system control technology. In
March 2010, Toyota and Mazda Motor Corporation announced that the companies entered into a license agreement regarding the
supply of hybrid system technology.
Toyota’s research and development expenditures were approximately ¥725 billion in fiscal 2010, ¥904 billion in fiscal 2009 and¥959 billion in fiscal 2008, respectively. Worldwide, approximately 37,000 employees are involved in Toyota’s research anddevelopment activities.
Toyota does not consider any one group of patents or licenses to be so important that their expiration or termination would
materially affect Toyota’s business. For a further discussion of Toyota’s intellectual property, see “Information on the Company —Business Overview — Intellectual Property”.
5.D TREND INFORMATION
For a discussion of the trends that affect Toyota’s business and operating results, see “— Operating Results” and “— Liquidity
and Capital Resources”.
5.E OFF-BALANCE SHEET ARRANGEMENTS
Toyota uses its securitization program as part of its funding through qualifying special purpose entities for its financial services
operations. See note 7 to the consolidated financial statements regarding the impact of the securitization program on the consolidated
financial statements.
Lending Commitments
Credit Facilities with Credit Card Holders
Toyota’s financial services operation issues credit cards to customers. As customary for credit card businesses, Toyota maintains
credit facilities with holders of credit cards issued by Toyota. These facilities are used upon each holder’s requests up to the limits
established on an individual holder’s basis. Although loans made to customers through this facility are not secured, for the purposes ofminimizing credit risks and of appropriately establishing credit limits for each individual credit card holder, Toyota employs its own
risk management policy which includes an analysis of information provided by financial institutions in alliance with Toyota. Toyota
periodically reviews and revises, as appropriate, these credit limits. Outstanding credit facilities with credit card holders were ¥130.3
billion as of March 31, 2010.
Credit Facilities with Dealers
Toyota’s financial services operation maintains credit facilities with dealers. These credit facilities may be used for businessacquisitions, facilities refurbishment, real estate purchases, and working capital requirements. These loans are typically collateralizedwith liens on real estate, vehicle inventory, and/or other dealership assets, as appropriate. Toyota obtains a personal guarantee from the32

dealer or corporate guarantee from the dealership when deemed prudent. Although the loans are typically collateralized or guaranteed,the value of the underlying collateral or guarantees may not be sufficient to cover Toyota’s exposure under such agreements. Toyota
prices the credit facilities according to the risks assumed in entering into the credit facility. Toyota’s financial services operation also
provides financing to various multi-franchise dealer organizations, referred to as dealer groups, often as part of a lending consortium,
for wholesale inventory financing, business acquisitions, facilities refurbishment, real estate purchases, and working capitalrequirements. Toyota’s outstanding credit facilities with dealers totaled ¥1,586.8 billion as of March 31, 2010.
Guarantees
Toyota enters into certain guarantee contracts with its dealers to guarantee customers’ payments of their installment payables
that arise from installment contracts between customers and Toyota dealers, as and when requested by Toyota dealers. Guarantee
periods are set to match the maturity of installment payments, and as of March 31, 2010, ranged from one month to 35 years. However,they are generally shorter than the useful lives of products sold. Toyota is required to execute its guarantee primarily when customers
are unable to make required payments.
The maximum potential amount of future payments as of March 31, 2010 is ¥1,604.8 billion. Liabilities for these guarantees of¥5.9 billion have been provided as of March 31, 2010. Under these guarantee contracts, Toyota is entitled to recover any amounts paidby it from the customers whose obligations it guaranteed.
5.F TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONSContractual Obligations and Commitments
For information regarding debt obligations, capital lease obligations, operating lease obligations and other obligations, including
amounts maturing in each of the next five years, see notes 13, 22 and 23 to the consolidated financial statements. In addition, as part of
Toyota’s normal business practices, Toyota enters into long-term arrangements with suppliers for purchases of certain raw materials,
components and services. These arrangements may contain fixed/minimum quantity purchase requirements. Toyota enters into sucharrangements to facilitate an adequate supply of these materials and services.
The following tables summarize Toyota’s contractual obligations and commercial commitments as of March 31, 2010:
Yen in millions
Payments Due by PeriodLess than
1 year

Total

Contractual Obligations:Short-term borrowings (note 13)
Loans ..................................................
Commercial paper ..............................
Long-term debt* (note 13)...........................
Capital lease obligations (note 13) ..............
Non-cancelable operating leaseobligations (note 22) ...............................
Commitments for the purchase of property,
plant and other assets (note 23)...............
Total..........................................

¥

804,066
2,475,607
9,191,490
42,243¥

1 to 3
years

804,066
2,475,607
2,194,235
24,089¥3 to 5years——
4,232,077
4,224¥

5 years and
after

—
—
1,464,523
2,415

¥

—
—
1,300,655
11,51551,9539,900

14,6299,302

18,12274,529¥ 12,639,888

37,026¥ 5,544,923

20,879¥ 4,271,809

1,622¥ 1,477,862

15,002¥ 1,345,294* “Long-term debt” represents future principal payments.
Toyota is unable to make reasonable estimates of the period of cash settlement with respect to liabilities recognized for
uncertain tax benefits, and accordingly such liabilities are excluded from the table above. See note 16 to the consolidated financial
statements for further discussion.
Toyota expects to contribute ¥111,112 million to its pension plans in fiscal 2011.
Yen in millions
Amount of Commitment Expiration Per Period

Total
Amounts
Committed

Less than
1 year1 to 3years

3 to 5years

5 years andafter

Commercial Commitments (note 23):
Maximum potential exposure to guarantees given in theordinary course of business.........................................

¥ 1,604,893¥ 460,460¥ 729,509¥ 311,760¥ 103,164

Total Commercial Commitments...........................

¥ 1,604,893¥ 460,460¥ 729,509¥ 311,760¥ 103,16433

5.G SAFE HARBOR
All information that is not historical in nature disclosed under “Item 5. Operating and Financial Review and Prospects — OffBalance Sheet Arrangements” and “— Tabular Disclosure of Contractual Obligations” is deemed to be a forward-looking statement.
See “Cautionary Statement Concerning Forward-Looking Statements” for additional information.

34

ITEM 19. EXHIBITS
Index to Exhibits
1.1

Amended and Restated Articles of Incorporation of the Registrant (English translation) (incorporated by reference to
Exhibit 1.1 to Toyota’s Annual Report on Form 20-F for the fiscal year ended March 31, 2009 filed with the SEC on
June 24, 2009 (file no. 001-14948))

1.2

Amended and Restated Regulations of the Board of Directors of the Registrant (English translation) (incorporated byreference to Exhibit 1.2 to Toyota’s Annual Report on Form 20-F for the fiscal year ended March 31, 2008 filed with the
SEC on June 25, 2008 (file no. 001-14948))

1.3

Amended and Restated Regulations of the Board of Corporate Auditors of the Registrant (English translation)(incorporated by reference to Exhibit 3.3 to Toyota’s Registration Statement on Form F-3 filed with the SEC on
November 7, 2006 (file no. 333-138469))

2.1

Amended and Restated Share Handling Regulations of the Registrant (English translation) (incorporated by reference to
Exhibit 2.1 to Toyota’s Annual Report on Form 20-F for the fiscal year ended March 31, 2009 filed with the SEC on
June 24, 2009 (file no. 001-14948))

2.2

Form of Deposit Agreement among the Registrant, The Bank of New York (predecessor of The Bank of New York
Mellon), as depositary, and the owners and beneficial owners from time to time of American Depositary Receipts,
including the form of American Depositary Receipt (incorporated by reference to Exhibit 1 to Toyota’s Registration
Statement on Form F-6, filed with the SEC on November 7, 2006 (file no. 333-138477))

2.3

Form of ADR (included in Exhibit 2.2)

*8.1

List of Principal Subsidiaries (See “Organizational Structure” in “Item 4. Information on the Company”)

11.1

Code of Ethics of the Registrant applicable to its directors and managing officers, including its principal executive
officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions(English translation) (incorporated by reference to Exhibit 11.1 to Toyota’s Annual Report on Form 20-F for the fiscal
year ended March 31, 2006 filed with the SEC on June 26, 2006 (file no. 001-14948))

12.1

Certifications of the Registrant’s Chairman of the Board and Executive Vice President, Member of the Board pursuant to
Section 302 of the Sarbanes-Oxley Act

13.1

Certifications of the Registrant’s Chairman of the Board and Executive Vice President, Member of the Board pursuant to
Section 906 of the Sarbanes-Oxley Act*15.1

Consent of Independent Registered Public Accounting Firm

*101.INSXBRL Instance Document*101.SCHXBRL Taxonomy Extension Schema*101.CAL XBRL Taxonomy Extension Calculation Linkbase*101.DEFXBRL Taxonomy Extension Definition Linkbase*101.LAB XBRL Taxonomy Extension Label Linkbase*101.PREXBRL Taxonomy Extension Presentation Linkbase* Previously filed.

35

SIGNATURES
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused andauthorized the undersigned to sign this amendment to the annual report on its behalf.
TOYOTA MOTOR CORPORATION

Date: March 18, 2011

By:/s/ TAKUO SASAKI

Name:
Title:

Takuo Sasaki
Managing Officer

Exhibit 12.1
CERTIFICATIONS
I, Fujio Cho, certify that:1.

I have reviewed the annual report on Form 20-F of Toyota Motor Corporation (the “Company”), as amended bythis Amendment No. 2 on Form 20-F/A;

2.

Based on my knowledge, the report does not contain any untrue statement of a material fact or omit to state amaterial fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the report;

3.

Based on my knowledge, the financial statements, and other financial information included in the report, fairly
present in all material respects the financial condition, results of operations and cash flows of the Company as of,and for, the periods presented in the report;

4.

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period
in which the report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles;(c)

Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in the report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by the report based on such evaluation; and(d)Disclosed in the report any change in the Company’s internal control over financial reporting that occurred
during the period covered by the annual report that has materially affected, or is reasonably likely tomaterially affect, the Company’s internal control over financial reporting; andThe Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the Company’s auditors and the Board of Corporate Auditors (or persons
performing the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the Company’s ability to record, process,summarize and report financial information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Company’s internal control over financial reporting.

Date: March 18, 2011/s/ FUJIO CHO
Fujio Cho
Chairman of the Board
Toyota Motor Corporation

CERTIFICATIONS
I, Satoshi Ozawa, certify that:1.

I have reviewed the annual report on Form 20-F of Toyota Motor Corporation (the “Company”), as amended bythis Amendment No. 2 on Form 20-F/A;

2.

Based on my knowledge, the report does not contain any untrue statement of a material fact or omit to state amaterial fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the report;

3.

Based on my knowledge, the financial statements, and other financial information included in the report, fairly
present in all material respects the financial condition, results of operations and cash flows of the Company as of,and for, the periods presented in the report;

4.

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the Company, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period
in which the report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles;(c)

Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in the report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by the report based on such evaluation; and(d)Disclosed in the report any change in the Company’s internal control over financial reporting that occurred
during the period covered by the annual report that has materially affected, or is reasonably likely tomaterially affect, the Company’s internal control over financial reporting; andThe Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the Company’s auditors and the Board of Corporate Auditors (or persons
performing the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control overfinancial reporting which are reasonably likely to adversely affect the Company’s ability to record, process,summarize and report financial information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant
role in the Company’s internal control over financial reporting.

Date: March 18, 2011/s/ SATOSHI OZAWA
Satoshi Ozawa
Executive Vice President, Member of the Board
Toyota Motor Corporation

Exhibit 13.1
CERTIFICATION
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of theundersigned officers of Toyota Motor Corporation, a Japanese corporation (the “Company”), does hereby certify that, to such officer’s
knowledge:
1. The Annual Report of the Company on Form 20-F for the period ended March 31, 2010, as amended by theaccompanying Amendment No. 2 on Form 20-F/A (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and2. Information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperations of the Company.

By:/s/ FUJIO CHO

Name:
Title:

Fujio Cho
Chairman of the Board

Date: March 18, 2011

By:
Name:
Title:/s/ SATOSHI OZAWA
Satoshi Ozawa
Executive Vice President, Member of the Board

Date: March 18, 2011
(A signed original of this written statement required by Section 906 has been provided to Toyota Motor Corporation and will be
retained by Toyota Motor Corporation and furnished to the Securities and Exchange Commission or its staff upon request.)