As filed with the Securities and Exchange Commission on June 24, 2013

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

FORM 20-F(Mark One)‘REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT
OF 1934È

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934OR
For the fiscal year ended: March 31, 2013
OR‘

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934‘

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

OR

Commission file number: 001-14948

TOYOTA (ExactJIDOSHA
KABUSHIKI KAISHAName 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 andExchange 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 theannual report: 3,167,428,668 Shares of Common Stock (including 82,399,279 Shares of Common Stock in the form of American Depositary Shares)
as of March 31, 2013
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act:Yes È 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 È
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 of1934 during the preceding 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 È No ‘
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data Filerequired to be submitted 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 È 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 and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer È
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 È
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 tofollow:
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 ExchangeAct):Yes ‘ No ÈTABLE OF CONTENTSITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS . . . . . . . . . .

1

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

ITEM 3.

KEY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

3.A
3.B
3.C
3.D

SELECTED FINANCIAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CAPITALIZATION AND INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REASONS FOR THE OFFER AND USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . .
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1
4
4
4

ITEM 4.

INFORMATION ON THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

4.A
4.B
4.C
4.D

HISTORY AND DEVELOPMENT OF THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . .
BUSINESS OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ORGANIZATIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PROPERTY, PLANTS AND EQUIPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8
8
50
51

ITEM 4A.

UNRESOLVED STAFF COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

52

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS . . . . . . . . . . . . . . . . . . . .

52

5.A
5.B
5.C
5.D
5.E
5.F
5.G

OPERATING RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LIQUIDITY AND CAPITAL RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES . . . . . . . . . . . . . . . . .
TREND INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OFF-BALANCE SHEET ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS . . . . . . . . . . . . . . . . .
SAFE HARBOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

52
84
87
90
90
91
92

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES . . . . . . . . . . . . . . . . . . . .

93

6.A
6.B
6.C
6.D
6.E

DIRECTORS AND SENIOR MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BOARD PRACTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE OWNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93
100
100
101
102

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS . . . . . . . . . . . .

103

7.A
7.B
7.C

MAJOR SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RELATED PARTY TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERESTS OF EXPERTS AND COUNSEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

103
104
104

ITEM 8.

FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

104

8.A
8.B

CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION . . . . .
SIGNIFICANT CHANGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

104
105

ITEM 9.

THE OFFER AND LISTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

105

9.A
9.B
9.C
9.D
9.E
9.F

LISTING DETAILS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PLAN OF DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SELLING SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DILUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EXPENSES OF THE ISSUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

105
106
106
106
106
106

ITEM 10.

ADDITIONAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

106

10.A
10.B
10.C
10.D

SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEMORANDUM AND ARTICLES OF ASSOCIATION . . . . . . . . . . . . . . . . . . . . . . . . .
MATERIAL CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EXCHANGE CONTROLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

106
106
112
112

10.E
10.F
10.G
10.H
10.I

TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DIVIDENDS AND PAYING AGENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
STATEMENT BY EXPERTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DOCUMENTS ON DISPLAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SUBSIDIARY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

113
119
119
119
120

ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK . . .

120

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES . . . . . . . . . . .

121

12.A
12.B
12.C
12.D

DEBT SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WARRANTS AND RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AMERICAN DEPOSITARY SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

121
121
121
122

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES . . . . . . . . . . . . . . . .

123

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND
USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123

ITEM 15.

CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123

ITEM 16.

[RESERVED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

ITEM 16A.

AUDIT COMMITTEE FINANCIAL EXPERT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

ITEM 16B.

CODE OF ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

ITEM 16C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . .

124

ITEM 16D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES . . .

126

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

126

ITEM 16F.

CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT . . . . . . . . . . . . . . . . . . .

126

ITEM 16G.

CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

127

ITEM 16H.

MINE SAFETY DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

129

ITEM 17.

FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

130

ITEM 18.

FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

130

ITEM 19.

EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

131

As used in this annual report, the term “fiscal” preceding a year means the twelve-month period ended
March 31 of the year referred to. All other references to years refer to the applicable calendar year, unless thecontext otherwise requires. As used herein, the term “Toyota” refers to Toyota Motor Corporation and its
consolidated subsidiaries as a group, unless the context otherwise indicates.
In parts of this annual report, amounts reported in Japanese yen have been translated into U.S. dollars for theconvenience of readers. Unless otherwise noted, the rate used for this translation was ¥94.05 = $1.00. This was
the approximate exchange rate in Japan on March 31, 2013.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
Written forward-looking statements may appear in documents filed with the Securities and Exchange
Commission, or the SEC, including this annual report, documents incorporated by reference, reports toshareholders and other communications.
The U.S. Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking
information to encourage companies to provide prospective information about themselves without fear of
litigation so long as the information is identified as forward looking and is accompanied by meaningful
cautionary statements identifying important factors that could cause actual results to differ materially from thoseprojected in the information. Toyota relies on this safe harbor in making forward-looking statements.
Forward-looking statements appear in a number of places in this annual report and include statements
regarding Toyota’s current intent, belief, targets or expectations or those of its management. In many, but not allcases, words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “hope”, “intend”, “may”, “plan”,“predict”, “probability”, “risk”, “should”, “will”, “would”, and similar expressions, are used as they relate to
Toyota or its management, to identify forward-looking statements. These statements reflect Toyota’s current
views with respect to future events and are subject to risks, uncertainties and assumptions. Should one or more ofthese risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may varymaterially from those which are anticipated, aimed at, believed, estimated, expected, intended or planned.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties.
Actual results may differ from those in forward-looking statements as a result of various factors. Importantfactors that could cause actual results to differ materially from estimates or forecasts contained in the forwardlooking statements are identified in “Risk Factors” and elsewhere in this annual report, and include, among
others:(i) changes in economic conditions and market demand affecting, and the competitive environment in,
the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates;(ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen,
the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound,and interest rates fluctuations;(iii) changes in funding environment in financial markets and increased competition in the financial
services industry;(iv) Toyota’s ability to market and distribute effectively;(v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at thelevels and times planned by management;(vi) changes in the laws, regulations and government policies in the markets in which Toyota operates
that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating
to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle
emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that
affect Toyota’s other operations, including the outcome of current and future litigation and other legal
proceedings, government proceedings and investigations;

(vii) political and economic instability in the markets in which Toyota operates;(viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meetcustomer demand;(ix) any damage to Toyota’s brand image;(x) Toyota’s reliance on various suppliers for the provision of supplies;(xi) increases in prices of raw materials;(xii) Toyota’s reliance on various digital and information technologies;(xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages
or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota
purchases materials, components and supplies for the production of its products or where its products areproduced, distributed or sold; and(xiv) the impact of natural calamities including the negative effect on Toyota’s vehicle production andsales.

PART IITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
3.A SELECTED FINANCIAL DATA
You should read the U.S. GAAP selected consolidated financial information presented below together with“Operating and Financial Review and Prospects” and Toyota’s consolidated financial statements contained in thisannual report.
U.S. GAAP Selected Financial Data
The following selected financial data have been derived from Toyota’s consolidated financial statements.
These financial statements were prepared in accordance with U.S. GAAP.
Year Ended March 31,
2010
2011
2012
2013
(in millions, except share and per share data)

2009

2013

Consolidated Statement of Income Data:
Automotive:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . ¥18,564,723 ¥17,197,428 ¥17,337,320 ¥16,994,546 ¥20,419,100 $217,109
Operating income (loss) . . . . . . . . . . . . .
(394,876)(86,370)
85,973
21,683
944,704
10,045
Financial Services:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . .
1,377,548
1,245,407
1,192,205
1,100,324
1,170,670
12,447
Operating income (loss) . . . . . . . . . . . . .
(71,947)
246,927
358,280
306,438
315,820
3,358
All Other:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . .
1,184,947
947,615
972,252
1,048,915
1,066,461
11,339Operating income (loss) . . . . . . . . . . . . .
9,913(8,860)35,242
42,06253,616570
Elimination of intersegment:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . .
(597,648)(439,477)(508,089)(560,132)(592,039) (6,294)
Operating income (loss) . . . . . . . . . . . . .
(4,101)(4,181)(11,216)(14,556)
6,748
72
Total Company:
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . 20,529,570 18,950,973 18,993,688 18,583,653 22,064,192 234,601
Operating income (loss) . . . . . . . . . . . . .
(461,011)
147,516
468,279
355,627
1,320,888
14,045
Income (loss) before income taxes andequity in earnings of affiliatedcompanies . . . . . . . . . . . . . . . . . . . . . .
(560,381)
291,468
563,290432,873
1,403,649
14,925
Net income (loss) attributable to Toyota
Motor Corporation . . . . . . . . . . . . . . . . . . . .
(436,937)
209,456
408,183
283,559
962,163
10,230Net income (loss) attributable to Toyota
Motor Corporation per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(139.13)66.79
130.1790.21
303.82
3.23
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . .
(139.13)66.79
130.1690.20
303.78
3.23
Shares used in computing net income (loss)
attributable to Toyota Motor Corporation
per share, basic (in thousands) . . . . . . . . . .
3,140,417
3,135,986
3,135,881
3,143,470
3,166,909—
Shares used in computing net income (loss)
attributable to Toyota Motor Corporation
per share, diluted (in thousands) . . . . . . . . .
3,140,417
3,135,998
3,135,915
3,143,470
3,167,155
—

1

2009

Consolidated Balance Sheet Data
(end of period):
Total Assets: . . . . . . . . . . . . . . . . . . . .
Short-term debt, including current
portion of long-term debt . . . . . . . .
Long-term debt, less current
portion . . . . . . . . . . . . . . . . . . . . . .
Toyota Motor Corporation
shareholders’ equity . . . . . . . . . . . .
Common stock . . . . . . . . . . . . . . . . . .
Other Data:
Dividends per share . . . . . . . . . . . . . .
Number of vehicles soldJapan . . . . . . . . . . . . . . . . . . . . .
North America . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . .
Asia . . . . . . . . . . . . . . . . . . . . . .
Other* . . . . . . . . . . . . . . . . . . . .
Worldwide total . . . . . . . . .

Year Ended March 31,
2010
2011
2012
2013
(in millions, except per share and numbers of vehicles sold data)

2013¥29,062,037¥30,349,287¥29,818,166¥30,650,965¥35,483,317$377,281

6,317,184

5,497,997

5,951,836

5,963,269

6,793,956

72,2376,301,469

7,015,409

6,449,220

6,042,277

7,337,824

78,02010,061,207
397,050

10,359,723
397,050

10,332,371
397,050

10,550,261
397,050

12,148,035
397,050

129,166
4,222

¥

100.0

¥

45.0

¥

50.0

¥

50.0

¥

90.0

$

0.96

1,944,823
2,212,254
1,061,954
904,892
1,443,433

2,162,418
2,097,374
858,390979,651
1,139,329

1,913,117
2,031,249
795,534
1,255,016
1,313,123

2,070,799
1,872,423
797,993
1,326,829
1,283,885

2,278,796
2,468,804
799,085
1,683,578
1,640,401

—
—
—
—
—

7,567,356

7,237,162

7,308,039

7,351,929

8,870,664—* “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.

Dividend Information
Toyota normally pays dividends twice per year, including an interim dividend and a year-end dividend.
Although Toyota’s articles of incorporation provide that retained earnings can be distributed as dividends
pursuant to the resolution of its board of directors, Toyota’s board of directors recommends the payment of yearend dividends to shareholders and pledgees of record as of March 31 in each year. Year-end dividends areusually paid to the shareholders immediately following approval of the dividends at the general shareholders’meeting, normally around the middle of June of each year. In addition to these year-end dividends, Toyota may
pay interim dividends in the form of cash distributions from its distributable surplus to shareholders and pledgeesof record as of September 30 in each year by resolution of its board of directors. Toyota normally pays theinterim dividend in late November.
In addition, under the Corporation Act of Japan (the “Corporation Act”), dividends may be paid toshareholders and pledgees of record as of any record date, other than those specified above, as set forth inToyota’s articles of incorporation or as determined by its board of directors from time to time. Toyota’s articles
of incorporation also permit Toyota to pay dividends, in addition to interim dividends mentioned in the preceding
paragraph, by a resolution of its board of directors. Toyota has incorporated such a provision into its articles ofincorporation in order to enable a flexible capital policy. Under the Corporation Act, dividends may be
distributed in cash or (except in the case of interim dividends mentioned in the preceding paragraph) in kind,subject to limitations on distributable surplus and to certain other conditions.

2The following table sets forth the dividends declared by Toyota for each of the periods shown. The periods
shown are the six months ended on that date. The U.S. dollar equivalents for the cash dividends shown are basedon the noon buying rate for Japanese yen on the last date of each period set forth below.
Cash Dividends per ShareYen
U.S. dollars

Period Ended

September 30, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65.0
35.0
20.0
25.0
20.0
30.0
20.0
30.0
30.0
60.0

0.61
0.35
0.22
0.26
0.24
0.36
0.25
0.36
0.38
0.63

The payment and the amount of any future dividends are dependent on the amount of Toyota’s future
earnings, its financial condition and other factors, including statutory restrictions on the payment of dividends.
Toyota deems the benefit of its shareholders as one of its priority management policies, and it continues towork to improve its corporate structure to realize sustainable growth in order to enhance its corporate value.
Toyota will strive to continue to pay stable dividends aiming at a consolidated dividend payout ratio of 30%
while giving due consideration to factors such as business results for each term, investment plans and its cash
reserves. In order to successfully compete in this highly competitive industry, Toyota plans to utilize its internalfunds for the early commercialization of next-generation environment and safety technologies, giving priority tocustomer safety and reliability. Considering these factors, an annual dividend of 90 yen per share was paid forfiscal 2013, consisting of a year-end dividend of 60 yen per share and an interim dividend of 30 yen per share.
In fiscal 2013, Toyota did not repurchase its own shares, excluding shares constituting less than one unit thatwere purchased by Toyota upon request. Since Toyota began repurchasing shares in fiscal 1997, the cumulative
number of shares repurchased as of the end of March 2013 was 736.98 million shares at a total cost of¥2,868.8 billion. The following table shows the approximate number of shares repurchased and the approximate
cost of repurchase of those shares for each of the periods indicated:
2009

Number of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15 million¥73 billion

Year Ended March 31,
2010
2011

0
0

0
0

2012

2013

0
0

0
0

Toyota’s future share repurchases will be influenced by factors such as Toyota’s future earnings andfinancial position. For a further discussion of Toyota’s share repurchases, please see “Purchases of Equity
Securities by the Issuer and Affiliated Purchasers”.
Exchange Rates
In parts of this annual report, yen amounts have been translated into U.S. dollars for the convenience ofinvestors. Unless otherwise noted, the rate used for the translations was ¥94.05 = $1.00. This was theapproximate exchange rate in Japan on March 31, 2013.

3

The following table sets forth information regarding the noon buying rates for Japanese yen in New York
City as announced for customs purposes by the Federal Reserve Bank of New York expressed in Japanese yen
per $1.00 during the periods shown. At the end of May 2013, the noon buying rate was ¥100.83 = $1.00. The
average exchange rate for the periods shown is the average of the month-end rates during the period.
Fiscal Year Ended or Ending March 31,

2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 (through May 31, 2013) . . . . . . . . . . . . . . . . . . .

At End of Period

Average(of month-end rates)(¥ per $1.00)

High

Low

99.15
93.40
82.76
82.41
94.16
100.83100.85
92.49
85.00
78.86
83.26
99.18

110.48100.71
94.68
85.26
96.16
103.52

87.80
86.12
78.74
75.72
77.41
92.96

Month Ended

High
Low
(¥ per $1.00)

December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 28, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 30, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

86.64
91.28
93.64
96.16
99.61
103.52

81.86
86.92
91.38
93.32
92.96
97.28

Fluctuations in the exchange rate between the Japanese yen and the U.S. dollar will affect the dollar
equivalent of the price of the shares on the Japanese stock exchanges. As a result, exchange rate fluctuations arelikely to affect the market price of the American Depositary Shares (“ADSs”) on the New York Stock Exchange(“NYSE”). Toyota will declare any cash dividends on shares in Japanese yen. Exchange rate fluctuations will
also affect the U.S. dollar amounts received on conversion of cash dividends.
Exchange rate fluctuations can also materially affect Toyota’s reported operating results. In particular, astrengthening of the Japanese yen against the U.S. dollar can have a material adverse effect on Toyota’s reported
operating results. For a further discussion of the effects of currency rate fluctuations on Toyota’s operating
results, please see “Operating and Financial Review and Prospects — Operating Results — Overview —Currency Fluctuations”.
3.B CAPITALIZATION AND INDEBTEDNESS
Not applicable.
3.C REASONS FOR THE OFFER AND USE OF PROCEEDS
Not applicable.
3.D RISK FACTORS
Industry and Business Risks
The worldwide automotive market is highly competitive.
The worldwide automotive market is highly competitive. Toyota faces intense competition from automotive
manufacturers in the markets in which it operates. Although the global economy is gradually recovering,competition in the automotive industry has further intensified amidst difficult overall market conditions. In
addition, competition is likely to further intensify in light of further continuing globalization in the worldwide
automotive industry, possibly resulting in further industry reorganization. Factors affecting competition include
product quality and features, safety, reliability, fuel economy, the amount of time required for innovation anddevelopment, pricing, customer service and financing terms. Increased competition may lead to lower vehicle4

unit sales, which may result in a further downward price pressure and adversely affect Toyota’s financial
condition and results of operations. Toyota’s ability to adequately respond to the recent rapid changes in theautomotive market and to maintain its competitiveness will be fundamental to its future success in existing andnew markets and to maintain its market share. There can be no assurances that Toyota will be able to compete
successfully in the future.
The worldwide automotive industry is highly volatile.
Each of the markets in which Toyota competes has been subject to considerable volatility in demand.
Demand for vehicles depends to a large extent on social, political and economic conditions in a given market andthe introduction of new vehicles and technologies. As Toyota’s revenues are derived from sales in markets
worldwide, economic conditions in such markets are particularly important to Toyota. In Japan, while there
continues to be some signs of weakness, the economic environment is gradually recovering. In the United States,
economic conditions are moderately recovering due to factors such as increased consumer spending. However, in
Europe, the economic environment continues to remain stagnant due to the ongoing sovereign debt crisis, and therate of economic growth is slowing down in emerging economies. Such shifts in demand for automobiles is
continuing, and it is unclear how this situation will transition in the future. Toyota’s financial condition andresults of operations may be adversely affected if the shifts in demand for automobiles continues or progresses
further. Demand may also be affected by factors directly impacting vehicle price or the cost of purchasing andoperating vehicles such as sales and financing incentives, prices of raw materials and parts and components, costof fuel and governmental regulations (including tariffs, import regulation and other taxes). Volatility in demand
may lead to lower vehicle unit sales, which may result in downward price pressure and adversely affect Toyota’s
financial condition and results of operations.
Toyota’s future success depends on its ability to offer new innovative competitively priced products that meetcustomer demand on a timely basis.
Meeting customer demand by introducing attractive new vehicles and reducing the amount of time requiredfor product development are critical to automotive manufacturers. In particular, it is critical to meet customer
demand with respect to quality, safety and reliability. The timely introduction of new vehicle models, atcompetitive prices, meeting rapidly changing customer preferences and demand is more fundamental to Toyota’s
success than ever, as the automotive market is rapidly transforming in light of the changing global economy.
There is no assurance, however, that Toyota will adequately and appropriately respond to changing customer
preferences and demand with respect to quality, safety, reliability, styling and other features in a timely manner.
Even if Toyota succeeds in perceiving customer preferences and demand, there is no assurance that Toyota will
be capable of developing and manufacturing new, price competitive products in a timely manner with its
available technology, intellectual property, sources of raw materials and parts and components, and production
capacity, including cost reduction capacity. Further, there is no assurance that Toyota will be able to implement
capital expenditures at the level and times planned by management. Toyota’s inability to develop and offer
products that meet customers’ preferences and demand with respect to quality, safety, reliability, styling andother features in a timely manner could result in a lower market share and reduced sales volumes and margins,and may adversely affect Toyota’s financial condition and results of operations.
Toyota’s ability to market and distribute effectively is an integral part of Toyota’s successful sales.
Toyota’s success in the sale of vehicles depends on its ability to market and distribute effectively based on
distribution networks and sales techniques tailored to the needs of its customers. There is no assurance that
Toyota will be able to develop sales techniques and distribution networks that effectively adapt to changing
customer preferences or changes in the regulatory environment in the major markets in which it operates.
Toyota’s inability to maintain well-developed sales techniques and distribution networks may result in decreased
sales and market share and may adversely affect its financial condition and results of operations.

5Toyota’s success is significantly impacted by its ability to maintain and develop its brand image.
In the highly competitive automotive industry, it is critical to maintain and develop a brand image. In orderto maintain and develop a brand image, it is necessary to further increase customers’ confidence by providing
safe, high-quality products that meet customer preferences and demand. If Toyota is unable to effectively
maintain and develop its brand image as a result of its inability to provide safe, high-quality products or as aresult of the failure to promptly implement safety measures such as recalls when necessary, vehicle unit sales
and/or sale prices may decrease, and as a result revenues and profits may not increase as expected or may
decrease, adversely affecting its financial condition and results of operations.
Toyota relies on suppliers for the provision of certain supplies including parts, components and raw materials.
Toyota purchases supplies including parts, components and raw materials from a number of external
suppliers located around the world. For some supplies, Toyota relies on a single supplier or a limited number ofsuppliers, whose replacement with another supplier may be difficult. Inability to obtain supplies from a single orlimited source supplier may result in difficulty obtaining supplies and may restrict Toyota’s ability to produce
vehicles. Furthermore, even if Toyota were to rely on a large number of suppliers, first-tier suppliers with whom
Toyota directly transacts may in turn rely on a single second-tier supplier or limited second-tier suppliers.
Toyota’s ability to continue to obtain supplies from its suppliers in a timely and cost-effective manner is subject
to a number of factors, some of which are not within Toyota’s control. These factors include the ability of
Toyota’s suppliers to provide a continued source of supply, and Toyota’s ability to effectively compete andobtain competitive prices from suppliers. A loss of any single or limited source supplier or inability to obtainsupplies from suppliers in a timely and cost-effective manner could lead to increased costs or delays orsuspensions in Toyota’s production and deliveries, which could have an adverse effect on Toyota’s financial
condition and results of operations.
The worldwide financial services industry is highly competitive.
The worldwide financial services industry is highly competitive. Increased competition in automobile
financing may lead to decreased margins. A decline in Toyota’s vehicle unit sales, an increase in residual value
risk due to lower used vehicle price, an increase in the ratio of credit losses and increased funding costs arefactors which may impact Toyota’s financial services operations. If Toyota is unable to adequately respond to thechanges and competition in automobile financing, Toyota’s financial services operations may adversely affect its
financial condition and results of operations.
Toyota’s operations and vehicles rely on various digital and information technologies.
Toyota depends on various information technology networks and systems, some of which are managed bythird parties, to process, transmit and store electronic information, including sensitive data, and to manage or
support a variety of business processes and activities, including manufacturing, research and development,
supply chain management, sales and accounting. In addition, Toyota’s vehicles may rely on various digital andinformation technologies, including information service and driving assistance functions. Despite security
measures, Toyota’s digital and information technology networks and systems may be vulnerable to damage,disruptions or shutdowns due to attacks by hackers, computer viruses, breaches due to unauthorized use, errors or
malfeasance by employees and others who have or gain access to the networks and systems Toyota depends on,service failures or bankruptcy of third parties such as software development or cloud computing vendors, power
shortages and outages, and utility failures or other catastrophic events like natural disasters. Such incidents could
materially disrupt critical operations, disclose sensitive data, interfere with information services and driving
assistance functions in Toyota’s vehicles, and/or give rise to legal claims or proceedings, liability or regulatory
penalties under applicable laws, which could have an adverse effect on Toyota’s brand image and its financial
condition and results of operations.

6Financial Market and Economic Risks
Toyota’s operations are subject to currency and interest rate fluctuations.
Toyota is sensitive to fluctuations in foreign currency exchange rates and is principally exposed tofluctuations in the value of the Japanese yen, the U.S. dollar and the euro and, to a lesser extent, the Australian
dollar, the Russian ruble, 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 translation
risk, and changes in foreign currency exchange rates may also affect the price of products sold and materials
purchased by Toyota in foreign currencies through transaction risk. In particular, strengthening of the Japanese
yen against the U.S. dollar can have an adverse effect on Toyota’s operating results.
Toyota believes that its use of certain derivative financial instruments including foreign exchange forward
contracts and interest rate swaps and increased localized production of its products have reduced, but noteliminated, the effects of interest rate and foreign currency exchange rate fluctuations. Nonetheless, a negative
impact resulting from fluctuations in foreign currency exchange rates and changes in interest rates may adversely
affect Toyota’s financial condition and results of operations. For a further discussion of currency and interest rate
fluctuations and the use of derivative financial instruments, see “Operating and Financial Review and Prospects— Operating Results — Overview — Currency Fluctuations”, “Quantitative and Qualitative Disclosures About
Market Risk”, and notes 20 and 21 to Toyota’s consolidated financial statements.
High prices of raw materials and strong pressure on Toyota’s suppliers could negatively impact Toyota’s
profitability.
Increases in prices for raw materials that Toyota and Toyota’s suppliers use in manufacturing their products
or parts and components such as steel, precious metals, non-ferrous alloys including aluminum, and plastic parts,
may lead to higher production costs for parts and components. This could, in turn, negatively impact Toyota’s
future profitability because Toyota may not be able to pass all those costs on to its customers or require its
suppliers to absorb such costs.
The downturn in the financial markets could adversely affect Toyota’s ability to raise capital.
Should the world economy suddenly deteriorate, a number of financial institutions and investors will facedifficulties in providing capital to the financial markets at levels corresponding to their own financial capacity,
and, as a result, there is a risk that companies may not be able to raise capital under terms that they would expect
to receive with their creditworthiness. If Toyota is unable to raise the necessary capital under appropriate
conditions on a timely basis, Toyota’s financial condition and results of operations may be adversely affected.
Political, Regulatory, Legal and Other Risks
The automotive industry is subject to various governmental regulations.
The worldwide automotive industry is subject to various laws and governmental regulations including thoserelated to vehicle safety and environmental matters such as emission levels, fuel economy, noise and pollution. In
particular, automotive manufacturers such as Toyota are required to implement safety measures such as recallsfor vehicles that do not or may not comply with the safety standards of laws and governmental regulations. In
addition, Toyota may, in order to reassure its customers of the safety of Toyota’s vehicles, decide to voluntarily
implement recalls or other safety measures even if the vehicle complies with the safety standards of relevant laws
and governmental regulations. Many governments also impose tariffs and other trade barriers, taxes and levies, orenact price or exchange controls. Toyota has incurred, and expects to incur in the future, significant costs incomplying with these regulations. If Toyota launches products that result in safety measures such as recalls,
Toyota may incur various costs including significant costs for free repairs. Furthermore, new legislation orchanges in existing legislation may also subject Toyota to additional expenses in the future. If Toyota incurs
significant costs related to implementing safety measures or meeting laws and governmental regulations,Toyota’s financial condition and results of operations may be adversely affected.
7

Toyota may become subject to various legal proceedings.
As an automotive manufacturer, Toyota may become subject to legal proceedings in respect of various
issues, including product liability and infringement of intellectual property. Toyota may also be subject to legal
proceedings brought by its shareholders and governmental proceedings and investigations. Toyota is in factcurrently subject to a number of pending legal proceedings and government investigations. A negative outcome
in one or more of these pending legal proceedings could adversely affect Toyota’s financial condition and resultsof operations. For a further discussion of governmental regulations, see “Information on the Company —Business Overview — Governmental Regulation, Environmental and Safety Standards” and for legal
proceedings, please see “Information on the Company — Business Overview — Legal Proceedings”.
Toyota may be adversely affected by natural calamities, political and economic instability, fuel shortages orinterruptions in social infrastructure, wars, terrorism and labor strikes.
Toyota is subject to various risks associated with conducting business worldwide. These risks include
natural calamities; political and economic instability; fuel shortages; interruption in social infrastructure
including energy supply, transportation systems, gas, water, or communication systems resulting from natural
hazards or technological hazards; wars; terrorism; labor strikes and work stoppages. Should the major markets inwhich Toyota purchases materials, parts and components and supplies for the manufacture of Toyota products orin which Toyota’s products are produced, distributed or sold be affected by any of these events, it may result in
disruptions and delays in the operations of Toyota’s business. Should significant or prolonged disruptions ordelays related to Toyota’s business operations occur, it may adversely affect Toyota’s financial condition andresults of operations.
ITEM 4. INFORMATION ON THE COMPANY
4.A HISTORY AND DEVELOPMENT OF THE COMPANY
Toyota Motor Corporation is a limited liability, joint-stock company incorporated under the Commercial
Code of Japan and continues to exist under the Corporation Act. Toyota commenced operations in 1933 as theautomobile division of Toyota Industries Corporation (formerly, Toyoda Automatic Loom Works, Ltd.). Toyota
became a separate company on August 28, 1937. In 1982, the Toyota Motor Company and Toyota Motor Sales
merged into one company, the Toyota Motor Corporation of today. As of March 31, 2013, Toyota operated
through 509 consolidated subsidiaries and 206 affiliated companies, of which 56 companies were accounted forthrough the equity method.
See “— Business Overview — Capital Expenditures and Divestitures” for a description of Toyota’s
principal capital expenditures and divestitures between April 1, 2010 and March 31, 2013 and information
concerning Toyota’s principal capital expenditures and divestitures currently in progress.
Toyota’s principal executive offices are located at 1 Toyota-cho, Toyota City, Aichi Prefecture 471-8571,
Japan. Toyota’s telephone number in Japan is +81-565-28-2121.
4.B BUSINESS OVERVIEW
Toyota primarily conducts business in the automotive industry. Toyota also conducts business in financeand other industries. Toyota sold 8,871 thousand vehicles in fiscal 2013 on a consolidated basis. Toyota had net
revenues of ¥22,064.1 billion and net income attributable to Toyota Motor Corporation of ¥962.1 billion in fiscal
2013.

8

Toyota’s business segments are automotive operations, financial services operations and all otheroperations. The following table sets forth Toyota’s sales to external customers in each of its business segments
for each of the past three fiscal years.

2011

Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yen in millions
Year Ended March 31,
2012¥17,322,753
1,173,168
497,767¥16,964,378
1,071,737
547,5382013¥20,378,762
1,150,042
535,388

Toyota’s automotive operations include the design, manufacture, assembly and sale of passenger cars,
minivans and commercial vehicles such as trucks and related parts and accessories. Toyota’s financial services
business consists primarily of providing financing to dealers and their customers for the purchase or lease of
Toyota vehicles. Toyota’s financial services also provide retail leasing through the purchase of lease contracts
originated by Toyota dealers. Related to Toyota’s automotive operations is its development of intelligent
transport systems (“ITS”). Toyota’s all other operations business segment includes the design and manufacture ofprefabricated housing, information technology related businesses including an e-commerce marketplace calledGAZOO.com, and sales promotions for KDDI communication related products (predominantly the au brand).
Toyota sells its vehicles in approximately 170 countries and regions. Toyota’s primary markets for its
automobiles are Japan, North America, Europe and Asia. The following table sets forth Toyota’s sales to externalcustomers in each of its geographical markets for each of the past three fiscal years.
Yen in millions
Year Ended March 31,
2011
2012
2013

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

¥6,966,929
5,327,809
1,920,416
3,138,112
1,640,422¥7,293,804
4,644,348
1,917,408
3,116,849
1,611,244¥7,910,456
6,167,821
2,003,113
4,058,629
1,924,173* “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.
During fiscal 2013, 25.7% of Toyota’s automobile unit sales on a consolidated basis were in Japan, 27.8%
were in North America, 9.0% were in Europe and 19.0% were in Asia. The remaining 18.5% of consolidated unit
sales were in other markets.
The Japanese economy as a whole suffered significant damage as a result of the Great East Japan
Earthquake that occurred on March 11, 2011, including the ensuing tsunami and nuclear incident in Fukushima
Prefecture.
After the earthquake, Toyota temporarily suspended operations at its domestic and overseas factories due todamage to social infrastructure including energy supply, transportation systems, gas, water and communication
systems caused by the earthquake, shortages of parts from suppliers, and damage sustained by some subsidiaries ofToyota in regions adjacent to the disaster zone. Toyota was able to achieve full normalization of production andbegin its recovery from the disaster sooner than initially anticipated. Toyota is working to minimize the negative
impact on production and company activities that may result from the disaster’s effect on infrastructure, including
potential electricity shortages as a result of suspended operations at nuclear power plants throughout Japan.
In addition, with regard to the series of product quality related issues that began in early 2010, in March
2010, Toyota established a Special Committee for Global Quality to thoroughly investigate the cause of the
product quality issues and review all of Toyota’s processes, including design, production, sales, service, andhuman resource development. Toyota believes it is making steady and solid improvements in these regards.
9Building on the work of the Special Committee for Global Quality, each region is implementing
comprehensive improvements to the company’s operations and strengthening the company’s quality
improvement activities.
Further, in order to obtain objective third-party evaluation, in July 2010, Toyota obtained a reportconcerning Toyota’s quality-assurance review-and-improvement measures from the Union of Japanese Scientists
and Engineers and external experts recommended by the union. This report evaluated the preventative measures
undertaken by Toyota in response to the series of product quality related issues it experienced beginning in early
2010, such as strengthening analysis of customer information and human resource development, and indicatedplaces where these measures should be deepened in order to bring about further improvement. Toyota hasreceived the evaluation with humility, and is making efforts toward further improvements.
Through the quality control approach described above, Toyota and its officers and employees will unite to
do their best to make customer safety their first emphasis, ensure that thorough quality control is a constantelement of their work, strengthen quality control infrastructure and cultivate customers’ trust. For further details
concerning recalls and other safety measures, see “Operating and Financial Review and Prospects — Operating
Results — Results of Operations — Fiscal 2013 Compared with Fiscal 2012 — Operating Costs and Expenses”.
The Worldwide Automotive Market
Toyota estimates that annual worldwide vehicle sales totaled approximately 82 million units in 2012.
Automobile sales are affected by a number of factors including:•social, political and economic conditions,•introduction of new vehicles and technologies, and•costs incurred by customers to purchase and operate automobiles.

These factors can cause consumer demand to vary substantially from year to year in different geographic
markets and in individual categories of automobiles.
The global economy in fiscal 2013 recovered gradually, with recovery in the United States and strong
growth in investment and consumption in the emerging markets, especially in Asia, despite downward pressure
stemming from the European sovereign debt crisis. The automotive industry was also impacted by this trend. In
2012, markets in emerging countries continued to grow. In developed countries, markets in the United States
recovered, increasing by more than 10% compared to the previous year, and the market in Japan increased
significantly from the previous year due to the government’s eco-car subsidy program, despite continuing signs
of weakness in the overall Japanese economy. European markets fell below the previous year’s levels due to thesluggish economy that resulted partly from the fiscal austerity measures enacted to address the sovereign debt
crisis in Europe.
Toyota expects the automotive market to grow in the medium- to long-term driven principally by the growth
in resource-rich markets and the emerging markets. Global competition is severe, as competition in compact andlow-price vehicles intensifies, and technological development and development of new products become more
frequent with a heightened global awareness of the environment.
In 2012, China, Europe, North America, Asia, Central and South America, and Japan were the world’s
largest automotive markets. The share of each market across the globe, which Toyota estimates based on theavailable automobile sales data in each country and region information, was 24% for China, 22% for Europe,
21% for North America (20% excluding Mexico and Puerto Rico), 10% for Asia, 8% for Central and SouthAmerica, and 7% for Japan. In China, new vehicle sales increased to approximately 19.4 million units. In Europe,
new vehicle sales decreased to approximately 18.2 million units. In North America, new vehicle sales increased10to approximately 17.2 million units. In Asia (including India but excluding Japan and China), new vehicle unit
sales increased to approximately 9.0 million units. In Central and South America, new vehicle sales increased toapproximately 6.2 million units. In Japan, total new vehicle unit sales (including mini-vehicles) increased toapproximately 5.4 million units.
The worldwide automotive industry is affected significantly by government regulations aimed at reducing
harmful effects on the environment, enhancing vehicle safety and improving fuel economy. These regulations
have added to the cost of manufacturing vehicles. Many governments also mandate local procurement of partsand components and impose tariffs and other trade barriers and price or exchange controls as a means of creating
jobs, protecting domestic producers or influencing their balance of payments. Changes in regulatory
requirements and other government-imposed restrictions can limit an automaker’s operations. These regulations
can also make it difficult to repatriate profits to an automaker’s home country.
The development of the worldwide automotive market includes the continuing globalization of automotive
operations. Manufacturers seek to achieve globalization by localizing the design and manufacture of automobiles
and their parts and components in the markets in which they are sold. By expanding production capabilities
beyond their home markets, automotive manufacturers are able to reduce their exposure to fluctuations in foreignexchange rates as well as to trade restrictions and tariffs.
Since 2000, various transactions have promoted consolidation within the global automotive industry. There
are various reasons behind these transactions including the need to respond to the excessive global capacity in the
production of automobiles, the need to reduce costs and improve efficiency by increasing the number of
automobiles produced using common vehicle platforms and by sharing research and development expenses forenvironmental and other technology, the desire to expand a company’s global presence through increased size
and the desire to expand into particular segments or geographic markets. Recently these have included global
business alliances and investments between manufacturers.
Toyota believes that its research and development initiatives, particularly the development ofenvironmentally friendly new vehicle technologies, vehicle safety and information technology, provide it with astrategic advantage.
Toyota’s ability to compete in the global automotive industry will depend in part on Toyota’s successful
implementation of its business strategy. This is subject to a number of factors, some of which are not in Toyota’s
control. These factors are discussed in “Operating and Financial Review and Prospects” and elsewhere in thisannual report.
Toyota Global Vision
In March 2011, Toyota unveiled its “Toyota Global Vision” corporate outline for the future, which serves
not only to give direction to Toyota employees around the world, but also to convey such direction to customers
and to the public at large. Toyota will work to achieve sustained growth through the realization of the following
ideals which are parts of the Vision:“The safest and most responsible ways of moving people”•

Safety is Toyota’s highest priority, and Toyota will continue to provide world-class safety.

•

Toyota will also continue to contribute to environmental quality and to human happiness by using
leading environmental technology and by deploying that technology in a growing line of vehicle
models. At the same time, Toyota will work through the provision of products, sales and services thatexceed customer expectation to offer a rewarding experience for customers.

11

“Enriching lives around the world”•

Toyota has been consistently true to its founding spirit of serving society through conscientious
manufacturing, and it will continue working in that spirit to contribute to enhance the quality of life
wherever it has operations.

•Toyota will strive to continue contributing to economic vitality wherever it has operations by generating
stable employment and by participating in mutually beneficial business relationships with dealers andsuppliers. It will also strive to continue to actively engage in initiatives for human resources
development and the promotion of cultural activities of its host communities.

“Lead the way to the future of mobility”•

Toyota will lead the industry in technological development that will spawn next-generation mobility.
For example, it will explore possibilities in personal mobility and in the convergence of information
technology for automobiles and “smart grids” for optimizing energy generation and consumption.
Toyota will strive to offer products and services that match the needs in each market.

•

Toyota will strive to advance environmental technology and develop low-carbon technologies andtechnologies for maximizing safety through interaction with the transport infrastructure to lay afoundation for sustainable and amenable future mobility.

“Our commitment to quality, constant innovation”•

Toyota is committed to providing quality vehicles that are highly reliable and driven with a sense ofsafety and reliability.

•

Toyota will constantly reinvent itself and continue to engage in cutting-edge technology development.
Toyota will work towards offering vehicles around the world that address the needs of today and of
tomorrow at affordable prices.

“Continued awareness for the Earth and environment”•

Toyota will continue to work towards minimizing environmental impact in its manufacturing and otheroperations, and products.

•

With an emphasis on environmental awareness, Toyota will in its operations work towards energy
conservation, reduction in carbon dioxide emission, efficient use of resources such as recycling, andhuman resource development and production methods that allow for coexistence with nature.

“Exceed expectations and be rewarded with a smile”•

Everyone at Toyota will continuously maintain a sense of gratitude to customers and will strive to earnsmiles with products and services that are stimulating and inspiring and exceed customer expectation.

“There is always a better way”•

All Toyota employees will share the recognition that there is always a better way and share acommitment to continuous improvement, which are fundamental to The Toyota Way.

“Meet challenging goals by engaging the talent and passion of people”•

Toyota will nurture a corporate culture where teamwork and individual creativity thrive and where
people will approach their work with pride and passion.

•

Toyota will honor the spirit of diversity in recruiting, training and promoting capable individuals aroundthe world. Human resources development at Toyota will continue to promote the transfer of thecompany’s monozukuri spirit of conscientious manufacturing and related skills and know-how from one
generation to the next.
12

As for our future business environment, the world economy is expected to benefit from ongoing moderate
recovery in the U.S. and a pickup in the pace of economic expansion in emerging countries. Europe, meanwhile,
still faces the risk of economic stagnation due to the sovereign debt crisis and other factors, though a gradualbottoming out is anticipated. The Japanese economy is expected to move gradually towards recovery supportedby the effect of the policy package and monetary policy. However, slowing down of overseas economies is still
downside risk of the Japanese economy.
The automotive market is expected to see recovery in the U.S. and expansion in emerging countries.
However, amid the change in market structure, as seen in the expansion and diversification of demand for ecocars backed by rising environmental consciousness, fierce competition exists on a global scale.
In this severe business environment, the Toyota group as a whole is responding to changes flexibly and is
progressing steadily toward the realization of the Toyota Global Vision announced in March 2011. We willcontinue to review the structure for realizing sustainable growth and achieving competitiveness, and the Toyotagroup as a whole will make greater efforts to address the following:First, we will further promote the Toyota New Global Architecture (“TNGA”), the way we will
fundamentally reconsider work procedures, in order to launch attractive products globally and in a timely
manner. For the Toyota brand, we intend to plan and develop overwhelmingly competitive next-generation carsin advanced countries, and to develop and introduce good products at affordable price that are trusted bycustomers in various usage environments in emerging countries. For the Lexus brand, we intend to establish theimage as a global premium brand that hails from Japan. Furthermore, we intend to bring competitive units
promptly.
Second, we intend to flexibly overcome business and management environmental changes. We will promote
new business such as environmental and energy solutions that will lead the next generation and make strategic
preparations for future business activities in next emerging countries. To better implement these efforts, we
intend to improve the foundations for speedy decision-making and encourage appropriate control of fixed costs.
Third, we intend to proceed with constant activities toward the achievement of sustainable growth. In
addition to pursuing quality improvement, we intend to further strengthen our innovative cost-reduction andprofit-improvement activities throughout the company and promote further human resource development forenhancement of our global competitiveness. Activities to improve business continuity in the event of large-scaledisasters will also be promoted and established.
Based on these efforts, Toyota will contribute to realize “enriching lives of communities” through providing“ever-better cars” that exceed customer expectations. This is expected to encourage more customers to purchaseToyota cars and thereby lead to the establishment of a stable business base. By perpetuating this good cycle, wewill aim to realize sustainable growth and enhance corporate value. In addition, through full observance ofcorporate ethics such as compliance with applicable laws and regulations, Toyota will fulfill its social
responsibilities by carrying out its Corporate Social Responsibility (CSR).
Automotive Operations
Toyota’s revenues from its automotive operations were ¥20.4 trillion in fiscal 2013, ¥17.0 trillion in fiscal
2012 and ¥17.3 trillion in fiscal 2011.
Toyota produces and sells passenger cars, minivans and commercial vehicles such as trucks. Toyota Motor
Corporation’s subsidiary, Daihatsu Motor Co., Ltd. (“Daihatsu”), produces and sells mini-vehicles and compact
cars. Hino Motors, Ltd. (“Hino”), also a subsidiary of Toyota Motor Corporation, produces and sells commercial
vehicles such as trucks and buses. Toyota also manufactures automotive parts, components and accessories for its
own use and for sale to others.
13

Vehicle Models
Toyota’s vehicles (produced by Toyota, Daihatsu and Hino) can be classified into two categories: hybrid
vehicles and conventional engine vehicles. Toyota’s product line-up includes subcompact and compact cars,mini-vehicles, mid-size, luxury, sports and specialty cars, recreational and sport-utility vehicles, pickup trucks,
minivans, trucks and buses.
Hybrid Vehicles
The world’s first mass-produced hybrid car was Toyota’s Prius. It runs on an efficient combination of agasoline engine and motor. This system allows the Prius to travel more efficiently than conventional engine
vehicles of comparable size and performance. The hybrid design of the Prius also results in the output of 75%
less emission than the maximum amount allowed by Japanese environmental regulations. Toyota views the Priusas the cornerstone of its emphasis on designing and producing eco-friendly automobiles. As of the end of March
2013, the total number of Toyota’s hybrid vehicles sold was 5.097 million units.
In May 2008, Toyota introduced the hybrid version of the Crown, which is the signature model of the
Toyota brand, in Japan. In April 2009, the Lexus RX450h, which is the fully-remodeled Lexus RX400h, wassuccessively introduced in Japan, North America and Europe. The Prius, of which 3.181 million units have beensold (as of the end of March 2013) since it was first introduced in 1997 and whose name has become
synonymous with hybrid vehicles, underwent its second full model change in May 2009. The hybrid vehicles
HS250h and SAI were introduced in July 2009 and December 2009, respectively. In December 2009, Toyota
began leasing the Prius plug-in hybrid equipped with a lithium ion battery targeted at certain corporate users
including electrical power companies. In January 2011, the Lexus hybrid vehicle CT200h was also introduced.
Further, Toyota introduced the Prius α (Prius Alpha) wagon in May 2011 and is planning further ways toenhance the Prius series lineup. Furthermore, Toyota has strengthened its hybrid lineup by introducing hybrid
versions of the Camry in September 2011, the Alphard and the Vellfire in November 2011, the compact hybrid
vehicle Aqua in December 2011, the Prius plug-in and the fully remodeled GS450h in January 2012, the Yaris
HV in May 2012, ES300h in July 2012, the Auris HV in November 2012 and the Avalon HV and the fully
remodeled Crown HV in December 2012. Toyota anticipates strong growth in the hybrid vehicles area and willcontinue to introduce new models.
Toyota began limited sales of a fuel cell hybrid vehicle in Japan and the United States in December 2002. In
June 2005, Toyota’s new fuel cell hybrid passenger vehicle became the first in Japan to acquire vehicle typecertification under the Road Vehicles Act, as amended, on March 31, 2005, by Japan’s Ministry of Land,
Infrastructure, Transport and Tourism. Leases for the vehicle began in July 2005. By 2007, Toyota was able to
make improvements to start-up and cruising distance at temperatures below freezing, which were technologicalchallenges. Toyota has made advances by solving technological issues such as the above and has been working
towards the practical use of such solutions.
Toyota aims to continue its efforts to offer a diverse line-up of hybrid vehicles, enhance engine power while
improving fuel economy and otherwise work towards increasing the sales of hybrid vehicles.
Conventional Engine Vehicles
Subcompact and Compact
Toyota’s subcompact and compact cars include the four-door Corolla sedan, which is one of Toyota’s best
selling models. The Yaris, marketed as the Vitz in Japan, is a subcompact car designed to perform better andoffer greater comfort than other compact cars available in the market, with low emissions that are particularly
attractive to European consumers. In Japan, Toyota introduced the micropremium iQ in November 2008, theremodeled Passo in February 2010, the remodeled Ractis in November 2010, the remodeled Vitz in December
2010, the remodeled Corolla Axio/Fielder in May 2012, the remodeled Porte and its variant, the Spade, in July2012 and the remodeled Auris in August 2012. In India and other markets, Toyota introduced the Etios. In
addition, Toyota is planning to introduce the AGYA, which is designed and manufactured by Daihatsu.
14

Mini-Vehicles
Mini-vehicles are manufactured and sold by Daihatsu. Daihatsu manufactures mini-vehicles, passenger
vehicles, commercial vehicles and auto parts. Mini-vehicles are passenger cars, vans or trucks with engine
displacements of 660 cubic centimeters or less. Daihatsu sold approximately 650 thousand mini-vehicles and
189 thousand automobiles on a consolidated basis during fiscal 2013. Daihatsu’s largest market is Japan, which
accounted for approximately 80% of Daihatsu’s unit sales during fiscal 2012. From 2011, Toyota began to sellsome mini-vehicles manufactured by Daihatsu under the Toyota brand.
Mid-Size
Toyota’s mid-size models include the Camry, which has been the best selling passenger car in the UnitedStates for fifteen of the past sixteen calendar years (from 1997 to present) and also for the last eleven consecutive
years. The Camry was fully remodeled in August 2011. Camry sales in the United States for 2012 wereapproximately 405 thousand units (including Camry hybrids). In addition, Toyota’s other mid-size models
include (i) the REIZ for the Chinese market, (ii) the Avensis, which was remodeled in November 2008 for theEuropean market, and (iii) the Mark X, which was remodeled in October 2009 for the Japanese market.
Luxury & Large
In North America, Europe, Japan and other regions, Toyota’s luxury lineup consists primarily of vehicles
sold under the Lexus brand name. Lexus passenger car models include the LS, the GS, the ES, the HS, the IS, theCT, and the LFA. Lexus models also include the LX, the GX, and the RX sold as luxury sport-utility vehicles in
the United States. Toyota commenced sales of its luxury automobiles in Japan under the Lexus brand in August
2005. As of March 31, 2013, the Lexus brand lineup in Japan includes the LS, the GS, the HS, the IS, the CT, theRX, and the LFA. The Toyota brand’s full-size luxury car, the Avalon, was remodeled in October 2012, and the
Crown was remodeled in December 2012. Toyota also sells the Century limousine in Japan.
Sports and Specialty
In the United States Toyota sells the Scion tC, a sports model targeted at young drivers. In December 2010,
Toyota introduced the LFA model under the Lexus brand as the high-performance sports model, and in April
2012, Toyota introduced the 86 (called Scion FR-S in the U.S.), a compact sports car with a front-mounted
engine and rear-wheel drive.
Recreational and Sport-Utility Vehicles and Pickup Trucks
Toyota sells a variety of sport-utility vehicles and pickup trucks. Toyota sport-utility vehicles available inNorth America include the Sequoia, the 4Runner, the RAV4, the Highlander, the FJ Cruiser and the Land
Cruiser, and pickup trucks available are the Tacoma and Tundra. The Tacoma, the Tundra, the Highlander andthe Sequoia are manufactured in the United States. Toyota also offers three types of sport-utility vehicles under
the Lexus brand, including the LX, the GX, and the RX. Toyota also manufactures the RX and RAV4 models in
Canada. Toyota’s pickup truck, the Hilux, has been the best selling model of all Toyota cars sold in Thailand. In
December 2008, Toyota introduced the new Venza in North America. The fully remodeled RX was introduced in2009. In North America, the fully remodeled RAV4 was introduced in December 2012.
Minivans and Cabwagons
Toyota offers several basic models for the global minivan market. Its largest minivan, the Alphard was
remodeled in May 2008 in Japan at the same time that the Vellfire was introduced. In addition, the Corolla Verso
was introduced in December 2008 in Europe, and the Wish was remodeled in April 2009 in Japan. Toyota’s otherminivan models include, in Japan, the Hiace, the Regius Ace, the Estima, the Noah, the Voxy, the Sienta, the Isis
and, in North America, the Sienna.
15

Trucks and Buses
Toyota’s product lineup includes trucks (including vans) up to a gross vehicle weight of five tons and microbuses, which are sold in Japan and in overseas markets. Trucks and buses are also manufactured and sold byHino, a subsidiary of Toyota. Hino’s product lineup includes large trucks with a gross vehicle weight of overeleven tons, medium trucks with a gross vehicle weight of between five and eleven tons, and small trucks with agross vehicle weight of up to five tons. As of fiscal 2013, Hino maintains a large share of the large truck market
in Japan. Hino’s bus lineup includes medium to large buses used primarily as tour buses and public buses, small
buses and micro-buses. Toyota and Hino maintain a large share of the small bus (including micro-buses) market
in Japan.
Product Development
New cars introduced in Japan during fiscal 2013 and thereafter include the 86, Pixis Epoch and Spade.
Remodeled cars in Japan during fiscal 2013 and thereafter include the Corolla Axio/Fielder, IS, Porte, Auris andCrown. New vehicles developed during fiscal 2013 and thereafter and introduced outside of Japan include theES300h, Avalon HV and FR-S introduced in the United States, and the ES300h, IS300h, Auris HV and GT86
introduced in Europe. Remodeled cars outside of Japan during fiscal 2013 and thereafter include the ES, IS,
Avalon and RAV4 in the United States, and the Auris and RAV4 in Europe.
In addition, the IMV product lineup based on the IMV project to optimize global manufacturing and supply
systems is a lineup of strategic multipurpose vehicles produced from a single platform to meet market demand.
The IMV product lineup includes, as of May 31, 2013, the Hilux, Fortuner, and Innova, one or all of which areavailable in all regions except for Japan.
Markets, Sales and Competition
Toyota’s primary markets are Japan, North America, Europe and Asia. The following table sets forth
Toyota’s consolidated vehicle unit sales by geographic market for the periods shown. The vehicle unit sales
below reflect vehicle sales made by Toyota to unconsolidated entities (recognized as sales under Toyota’s
revenue recognition policy), including sales to unconsolidated distributors and dealers. Vehicles sold by Daihatsu
and Hino are included in the vehicle unit sales figures set forth below.
2009
Units

MarketJapan . . . . . . . . . . . . 1,944,823
North America . . . . 2,212,254
Europe . . . . . . . . . . . 1,061,954
Asia . . . . . . . . . . . . . 904,892
Other* . . . . . . . . . . . 1,443,433

%

2010
Units

25.7% 2,162,418
29.2 2,097,374
14.0
858,39012.0
979,651
19.1 1,139,329

Year Ended March 31,
2011
%
Units
%

29.9% 1,913,117
29.0 2,031,249
11.9
795,534
13.5 1,255,016
15.7 1,313,123

2012
Units

26.2% 2,070,799
27.8 1,872,423
10.9
797,99317.2 1,326,829
17.9 1,283,885

%

2013
Units

28.2% 2,278,796
25.5 2,468,804
10.8
799,085
18.0 1,683,578
17.5 1,640,401

%

25.7%
27.8
9.0
19.0
18.5

Total . . . . . . . . . . . . . . . . 7,567,356 100.0% 7,237,162 100.0% 7,308,039 100.0% 7,351,929 100.0% 8,870,664 100.0%* “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.

16

The following table sets forth Toyota’s vehicle unit sales and market share in Japan, North America, Europe
and Asia on a retail basis for the periods shown. Each market’s total sales and Toyota’s sales represent new
vehicle registrations in the relevant year (except for the Asia market where vehicle registration does notnecessarily apply). All information on Japan excludes mini-vehicles. The sales information contained below
excludes unit sales by Daihatsu and Hino, each a consolidated subsidiary of Toyota. Vehicle unit sales in Asia do
not include sales in Pakistan.

2009

Japan:
Total market sales (excluding mini-vehicles) . . . . . . . . . . . . .
Toyota sales (retail basis, excluding mini-vehicles) . . . . . . . .
Toyota market share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Thousands of Units)
Fiscal Year Ended March 31,
2010
2011
2012

2013

2,894
3,184
2,975
3,067
3,242
1,331
1,535
1,407
1,396
1,570
46.0% 48.2% 47.3% 45.5% 48.4%(Thousands of Units)
Calendar Year Ended December 31,
2008
2009
2010
2011
2012

North America:
Total market sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota sales (retail basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota market share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe:Total market sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota sales (retail basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota market share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia:
Total market sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota sales (retail basis) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota market share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,294 12,705 14,058 15,417 17,153
2,537
2,053
2,008
1,880
2,360
15.6% 16.2% 14.3% 12.2% 13.8%
21,212 18,314 18,368 19,074 18,171
1,141
905
808
820
838
5.3%
4.9%
4.4%
4.3%
4.6%
5,567
5,951
7,430
7,861
8,986
809
779
991
1,055
1,487
14.5% 13.1% 13.3% 13.4% 16.5%

Japan
Japan is one of the leading countries with respect to technological advancements and improvements and willcontinue to demonstrate such strength. Toyota strives to earn customer satisfaction by introducing products
distinctive of Japan’s manufacturing ability such as value-added products including Lexus models, hybrid
vehicles, vehicles with 3-seat rows and mini-vehicles. Toyota’s consolidated sales in the Japanese market in
fiscal 2013 was 2,279 thousand units, an increase of 208 thousand units in comparison with the previous year.
Toyota endeavors to secure and maintain its large share of and position atop the Japanese market. Toyota held adomestic market share (excluding mini-vehicles) on a retail basis of 47.3% in fiscal 2011, 45.5% in fiscal 2012
and 48.4% in fiscal 2013.
Although Toyota’s principle is to conduct production in regions where there is demand, it considers Japan tobe the source of its good manufacturing practices. Toyota supports its operations worldwide through measures
such as the development of new technologies and products, low-volume vehicles to complement local
production, production of global vehicle models which straddle multiple regions, and supporting overseas
factories. In Japan, Toyota is implementing flexible production based on market needs, in order to support its
large share of domestic sales.
In January 2011, Central Motor Co., Ltd., Toyota’s subsidiary, began production at its Tohoku plant,
implementing innovative production technology that realizes cost reductions. The Tohoku plant producescompact vehicles such as the Yaris sedan and the Corolla Axio. In addition, Kanto Auto Works, Ltd. became awholly-owned subsidiary of Toyota in January 2012. In July 2012, Toyota integrated Central Motor Co., Ltd.,
17

Kanto Auto Works, Ltd. and Toyota Motor Tohoku Corporation to establish Toyota Motor East Japan, Inc. as a
new company. This integration is intended to enable Toyota Motor East Japan, Inc. to design, develop, andproduce globally competitive compact cars, manufacture auto parts, and support Toyota’s overseas operations.
Toyota has established three domestic production bases, which are Tokai, Kyushu, and Tohoku regions.
In January 2012, Toyota Auto Body Co., Ltd. became a wholly-owned subsidiary of Toyota. Toyota Auto
Body Co., Ltd. is primarily responsible for integrating the planning, development, and production of minivans,commercial vehicles, SUVs, etc.
Since Toyota formed an alliance with Fuji Heavy Industries, Ltd. (“FHI”) in 2005, Toyota and FHI have
utilized each other’s resources in development and production such as moving some of Toyota’s production to
FHI’s North American production center operated by Subaru of Indiana Automotive, Inc. In April 2008, in orderto create synergy and to further strengthen competitiveness, Toyota, Daihatsu and FHI agreed on the following
three points: (1) Toyota and FHI will jointly develop a compact rear-wheel-drive sports car that will be marketedby both Toyota and FHI, (2) Toyota will provide FHI with a compact car on an original equipment
manufacturing basis (“OEM”) and (3) Daihatsu will supply FHI with mini-vehicles and an FHI version of the
Daihatsu Coo compact car on an OEM basis. In order to promote a smooth cooperation, FHI transferred
61 million FHI shares owned by FHI to Toyota in July 2008. As a result of this transfer, Toyota owns 16.5% of
FHI issued shares.
In Japan, there are five major domestic manufacturers, five specialized domestic producers and a growing
volume of imports from major United States and European manufacturers. The prolonged economic slump in theJapanese economy and the recent increases in environmental awareness have also shifted consumer preference
towards more affordable automobiles such as compact and subcompact vehicles and towards utility vehicles suchas mini-vans. For more than 40 years, Toyota has maintained its position as the largest automobile manufacturer
in Japan. Every year since fiscal 1999, Toyota, excluding Daihatsu and Hino, has achieved a market share(excluding mini-vehicles) of over 40%, reflecting in part the success of the introduction of new models for
subcompact and compact cars, mini-vans and sedans. In August 2005, Toyota launched the Lexus brand in Japanand achieved a record top market share of 24.8% in the luxury market in fiscal 2012. Toyota aims to further
distinguish the Lexus brand by continuing to attract new and affluent customers including customers thattypically had purchased imported vehicles.
North America
The North American region is one of Toyota’s most significant markets. While the automotive market
struggled in the aftermath of the financial crisis beginning in 2008, Toyota has since reorganized its production
structure and made improvements to its product lineup. In addition, Toyota is actively working to promoteincreased local operations independence in North America, in accordance with the Toyota Global Vision,
announced in 2011.
In the North American region, of which the U.S. is the center, Toyota has a wide product lineup (excluding
large trucks and buses), and sold 2,469 thousand vehicles on a consolidated basis in fiscal 2013. This represents
approximately 28% of Toyota’s total unit sales on a consolidated basis. The U.S., in particular, is the largest
market in the North American region, accounting for 89% of the retail sales of Toyota in such region. Currently,
due to the recovery from shortages in parts and components resulting from the effects of the Great East Japan
Earthquake and the floods in Thailand, sales figures for fiscal 2013 were 131.9% of those in the previous fiscal
year.
Toyota commenced sales of the first-generation Prius hybrid model in North America in 2000. The Prius
became Toyota’s best selling model behind the Corolla and Camry, having gained particular support amongcustomers concerned with the environment. Toyota introduced the first hybrid model under the Lexus brand, theRX400h, and the Highlander hybrid in 2005. Toyota began sales of the HS250h in 2009 and the CT200h andPrius V in 2011. Further, Toyota continued expanding its hybrid models with the introduction of models such as
the Prius C, ESh and Avalon HV in 2012.
18

Since the introduction of the LS and ES models under the premium brand model, Lexus, in the United Statesin 1989, Toyota has expanded its Lexus sales with models including the GS, IS and RX, etc. In 2012, Toyota
introduced the all-new GS and ES models, and unit sales reached 244 thousand units. Toyota is planning tofurther increase sales through the introduction of the new IS model in 2013.
Toyota is continuing to revise its production in North America in response to changes in market conditions.
Toyota discontinued the joint production of the Tundra in its Indiana and Texas plants, and designated the Texas
plant as the sole production facility for the Tundra in November 2008. Also in November 2008, Toyota’s
Kentucky plant commenced production of the new Venza model, and a decision was made to commence
production of the Lexus ES350 for sale in the North America market starting by summer of 2015. At the Indiana
plant, local production of the Highlander began in October 2009 and in 2013, Toyota plans to increase production
capacity at the plant to coincide with the shift to the next generation model. Toyota also plans to increase
production capacity of auto parts at its automatic transmission plant in West Virginia and engine plants in
Kentucky and Alabama to meet the expanded production capacities of vehicles in the U.S. The new Woodstock
plant in Canada commenced production of the RAV4 in November 2008 and the production capacity at the
Woodstock plant increased from 150 to 200 thousand units per year in January 2013. Also, Toyota plans tocommence production of the RX450h hybrid model at its Cambridge plant by the beginning of 2014.
On the other hand, due to the termination of the NUMMI joint venture with GM in the middle of 2009,
Toyota ceased placing orders for the Tacoma and Corolla with NUMMI and production was stopped at the
NUMMI plant in April 2010. Equipment utilized in the production of the Tacoma model was transferred to the
Texas plant, where production of the Tacoma began in July 2010. The Corolla was produced and supplied by the
Cambridge plant in Canada, and finished vehicles were exported into North America from the Takaoka plant andKanto Auto Works, Ltd. in Japan. Starting October 2011, Toyota, instead of importing from Japan, has begun
production of the Corolla at its Mississippi plant. Furthermore, in November 2012, Toyota came to an agreementwith Mazda Motor Corporation under which Toyota-brand light vehicles for sale mainly in North America will
be produced at Mazda’s new plant.
As for Toyota’s vehicle development in North America, the Toyota Technical Center spearheads the design,planning, and evaluation of vehicles and parts as to their ability to meet customer needs. As a measure towards
local self-reliance, Toyota plans to increase the number of staff present at the Center, and will continue topromote self-reliance towards producing even better cars in the future.
EuropeWhile the outlook for the future remains unclear in light of the ongoing European sovereign debt crisis, andcompetition continues to intensify, Toyota has expanded its lineup of hybrid models and has entered into supply
agreements with BMW and PSA for diesel engines and light commercial vehicles, respectively. In addition,
Toyota is actively promoting production and sales measures that meet local demand by reevaluating its sales
network periodically and strengthening its value chain including used car dealerships, after-sales services andfinance and insurance services.
In 2012, as a result of the economic downturn in Southern European countries such as Spain and Italy,
European market performance fell short of the previous year.
Despite sluggish sales in Western Europe, the overall unit sales in 2012 exceeded the previous year’s figuresdue to sales increases in Russia. Toyota aims to further increase its market share with the expansion of its productlineup. Consolidated European sales of Toyota in fiscal 2013 was 799 thousand units, up 0.1% from fiscal 2012.
Toyota has in the past increased local production in response to sales growth, establishing Toyota Motor
Manufacturing (UK) Ltd. (“TMUK”) in 1992, Toyota Motor Manufacturing Turkey Inc. in 1994 and Toyota
Motor Manufacturing France S.A.S. in 2001 as vehicle supply factories to Europe. Further, in 2005, Toyota
Peugeot Citroën Automobile was formed as a result of a joint venture with PSA Peugeot Citroën, allowing for the
expansion of local production. However, in response to the downturn of the market resulting from the economiccrisis in Europe, Toyota promptly reduced personnel and made adjustments to its plant operations. In addition, inlight of the current levels of demand in the United Kingdom, TMUK limited its production to one production line19

at its Burnaston plant. TMUK plans to reopen the second production line based on the direction of the market. To
increase the utilization rate of these factories, Toyota plans to transfer the production of the Corolla from Japan
to TMMT and begin exporting the TMMF Yaris to North America in 2013.
Toyota opened Toyota Motor Manufacturing Russia in 2007 as a base for its manufacturing operations in
the Russian market, where future growth is expected. A two-shift production system started in September 2012
and the production capacity was increased from 20,000 units to 50,000 units per year. In addition, Toyota
commenced contract assembly of SUVs by Sollers Bussan in Vladivostok in the spring of 2013. Toyota
announced officially to plan to commence complete knock down, or CKD, production of SUVs in Kazakhstan
beginning in the spring of 2014.
Toyota’s principal European markets are Germany, France, the United Kingdom, Italy, Spain and Russia.
Toyota’s principal competitors in Europe are Volkswagen, Ford, Renault, Opel and Peugeot, as well as Korean
manufacturers Hyundai and Kia, who have made significant expansions in the region.
Asia
In light of the importance of the Asian market that is further expected to grow in the long term, Toyota aims
to build an operational framework that is efficient and self-reliant as well as a predominant position in theautomotive market in Asia. Operating income for Asia in fiscal 2013 increased compared to fiscal 2012 due tothe increase in sales and the impact of cost reduction activities. Sales were strong, particularly in Thailand,
Indonesia and the Philippines, in the fourth quarter. Toyota has responded to increasing competition in Asia bymaking strategic investments in the market and developing relationships with local suppliers. Toyota believes
that its existing local presence in the market provides it with an advantage over new entrants to the market andexpects to be able to promptly respond to demand for vehicles in the region.
In this region, Toyota plans to further strengthen and solidify its business foundations by improving its
product line-up, expanding local procurement, and increasing production capacities. For example, Toyota began
producing IMV models (the Hilux, Fortuner and Innova) in Thailand, Indonesia, India, the Philippines andMalaysia in fiscal 2005 and in Vietnam in fiscal 2006. Furthermore, with increased production capacity, theThailand plant now produces IMV models (the Hilux and Fortuner) for sale outside of Asia, including inAustralia and in the Middle East, and has contributed greatly to the expansion of Toyota’s automotive business.
Furthermore, as part of Toyota’s efforts to expand business going forward, Toyota Motor Thailand Co., Ltd.,
Toyota’s vehicle production base in Thailand, commenced production of the Camry hybrid in May 2009 andPrius in November 2011. Toyota also plans to start operation of its second Gateway plant in the autumn of 2013,
which will increase production capacity by 80 thousand units, and will increase production capacity in Thailand
to 770 thousand units. In India, Toyota has expanded its business by constructing a second plant with an annual
production capacity of 70 thousand units, Toyota has also commenced production and sales of the Etios compact
model designed specifically for the Indian market in December 2010. Furthermore, Toyota increased production
capacity in India during 2012 and 2013 to 210 thousand units. Toyota began exporting the gasoline-fueled modelof the Etios to South Africa from India in April 2012. Moreover, Toyota commenced operation of a second plantin Karawang, Indonesia, at the beginning of 2013 in order to meet the diverse customer needs and the expanding
market. Toyota plans to increase the initial production capacity of 70 thousand units per year to 120 thousand
units per year by the beginning of 2014. In addition, in 2012 Toyota began production and sales of the Camryhybrid in Taiwan, to accommodate the spread of environmentally-friendly vehicles. In light of the Korea-USA
FTA conclusion, moreover, Toyota has begun sales of the U.S. produced Camry in Korea since January 2012.
Consolidated Asian sales of Toyota vehicles in fiscal 2013 was 1,684 thousand units, up 26.9% from fiscal
2012. In 2012, Toyota had a market share in Asia of 16.2% and achieved annual retail unit sales ofapproximately 1,443 thousand vehicles. Increased sales in robust economics primarily in Thailand and Indonesia
contributed to the growth in the Asian market.
Toyota’s principal Asian markets are Thailand, Indonesia, India, Malaysia and Taiwan.
20ChinaToyota has been conducting its operations in China through joint ventures, and its success in producing
products that meet local demands and in establishing its sales and service network has significantly contributed to
Toyota’s profits. Based on the firm business foundation that it has established, Toyota is conducting its
operations with the aim of promoting further growth and increasing profitability through further development of
its sales and service network and expansion of its product lineup.
In China, Toyota has been conducting joint ventures with two major partners. First, with respect to the joint
venture with China FAW Group Corporation, since Toyota first launched the Vios through the joint venture in
2002, Toyota has been producing and selling nine car models in China, including the Land Cruiser Prado, Land
Cruiser, Corolla, Crown, REIZ, Coaster, RAV4 and Prius. With regard to increasing production capacity, in May
2007, Toyota commenced production of the new Corolla on the second line of the Tianjin Teda plant, which has
an annual production capacity of 200 thousand units, and commenced production of the RAV4 on the same line
in March 2009. Toyota is currently constructing a new factory in Changchun, China, where Toyota began
producing the Corolla in May 2012 with an annual production capacity of 100 thousand units. Guangzhou Toyota
Motor Co., Ltd., a joint venture between Toyota and Guangzhou Automobile Group Co., Ltd., commenced
production of the Camry in May 2006 with an annual production capacity of 100 thousand units on a single shiftbasis and, by late 2006, it expanded its annual production capacity to 200 thousand units on a double shift basis.
In addition, it commenced production of the Yaris in May 2008, and the second Guangzhou line commenced
production of the Highlander in May 2009 and the E’z in June 2011. In 2014, Toyota plans to open a plant inChangshu in Jiangsu, China for the production of the CVT.
Total vehicle sales in the Chinese market increased 3% from 18.79 million in 2011 to 19.43 million in 2012.
In this market, Toyota’s sales in 2012 were 850 thousand vehicles. In the locally produced passenger vehicle
market (total of approximately 13.6 million units), Toyota’s sales were 750 thousand units, for a market share of
6%. In the 2012 market, favorable conditions in the less-than-1.6 liter market continued, and the SUV market
expanded as a result of customers’ value diversification. However, Toyota’s sales in 2012 saw a decrease for the
first time, resulting in a 5% decrease compared to the previous year, due to the impact of the political conflict
between Japan and China which arose in September 2012. As for Toyota’s distribution network, Toyota has been
expanding the distribution network for locally produced vehicles in cooperation with Chinese joint venture
partners under Tianjin FAW Toyota Motor Co., Ltd. and Guanqi Toyota Motor Co., Ltd., and for imported
vehicles, Toyota has also been expanding primarily the Lexus brand sales network. Toyota plans to further
increase sales by expanding the number of dealers and the product lineup for both locally produced and imported
vehicles, particularly inland. In addition, as the market in China develops, Toyota plans to promote the so-called“Value Chain” businesses such as used cars, services, financing and insurance.
South and Central America, Oceania, Africa and the Middle East
Consolidated sales of Toyota vehicles in fiscal 2013 in South and Central America, Oceania, Africa and the
Middle East (collectively, the “Four Regions”) was 1,640 thousand units, an increase of 27.8% from fiscal 2012.
The increase was due to factors such as the strong sales of IMV models. The core models in this region are global
models such as the Corolla, IMV (the Hilux) and Camry, which are designed to satisfy regional demands, while
keeping production costs down by using common platforms and core parts and components with vehicle models
in other regions. Furthermore, with respect to production, Toyota Motor Corporation Australia Ltd., Toyota’s
vehicle production base in Australia, commenced production of the Camry hybrid in December 2009. In addition,in order to increase production of IMV models, Toyota expanded the annual production capacity of its Argentina
factory from 70 thousand units to 90 thousand units during the second half of 2011. In order to expand businessin Brazil, Toyota constructed a new factory in Sorocaba with an annual production capacity of 70 thousand units,
and in September 2012, began production and sales of the compact vehicles introduced to the Indian market.
Further, Toyota began local production of the Fortuner in Egypt in April 2012.

21

In these regions, which are expected to become increasingly important to Toyota’s business strategy, Toyota
aims to develop new products which meet the specific demands of each region, increase production and further
promote sales.
Toyota’s principal markets in the Four Regions are Brazil in South and Central America, Australia in
Oceania, South Africa in Africa and Saudi Arabia in the Middle East.
Production
Toyota and its affiliated companies produce automobiles and related parts and components through morethan 50 overseas manufacturing companies in 27 countries and regions besides Japan. Toyota’s major
manufacturing facilities include plants in Japan, the United States, Canada, the United Kingdom, France, Turkey,
Thailand, China, Taiwan, India, Indonesia, South Africa, Australia, Argentina and Brazil. Daihatsu brandvehicles are produced at 4 factories in Japan and 3 manufacturing companies in 3 other countries, includingIndonesia and Malaysia. Hino brand vehicles are produced at 2 factories in Japan and 9 manufacturing companies
in 9 countries, including Indonesia and Thailand. For a listing of Toyota’s principal production facilities, see“Information on the Company — Property, Plants and Equipment”.
In promoting a sustainable growth strategy, establishing a system capable of providing optimal supply of productsin the global market is integral to Toyota’s strategy. In May 2010, Toyota announced its production strategy aimed atachieving an optimal supply system in the global market. For example, Toyota will increase its local production
capacities to meet a wide range of growing customer demands in a timely manner in emerging countries such as China
and India. On the other hand, in developed countries with mature markets, Toyota will reconsider production models to
respond to changes in market demand and establish a flexible and efficient production system that can withstandcurrency fluctuations. In 2012, 75.4% of Toyota vehicles sold in overseas markets were manufactured in overseas
plants by Toyota and its unconsolidated affiliated companies. In 2012, approximately 75.3% of Toyota vehicles sold in
North America were produced in North America. Of the vehicles sold in Europe in 2012, approximately 58.5% were
produced in Europe. In fiscal 2013, Toyota produced on a consolidated basis approximately 4,276 thousand vehicles inJapan and approximately 4,422 thousand vehicles overseas, compared to approximately 3,940 thousand vehicles inJapan and approximately 3,495 thousand vehicles overseas in fiscal 2012.
The following table shows the worldwide vehicle unit production by Toyota for the periods shown. These
production figures do not include vehicles produced by Toyota’s unconsolidated affiliated companies. The sales unit
information elsewhere in this annual report includes sales of vehicles produced by these affiliated companies.
Vehicles produced by Daihatsu and Hino are included in the vehicle production figures set forth below.

Units Produced . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,
2011
2012

2009

2010

7,051,032

6,809,440

7,169,721

7,435,781

2013

8,698,454

Toyota closely monitors its actual units of sale, market share and units of production data and uses thisinformation to allocate resources to existing manufacturing facilities and to plan for future expansions.
See “— Capital Expenditures and Divestitures” for a description of Toyota’s recent investments incompleted plant constructions and for a description of Toyota’s current investments in ongoing plant
constructions.
The Toyota Production System
Toyota pioneered the internationally recognized production system known as the “Toyota Production
System”. The Toyota Production System is based on Toyota’s own concepts of efficient production of only
necessary and quality products and efficient cost reduction, and has the following two principal elements:•“Just-in-Time”, and•“Jidoka”.
22Just-in-Time is an approach in which necessary parts and components are manufactured and delivered in justthe right quantity in a timely manner just as they are needed. This allows Toyota to maintain low levels of
inventory while maintaining operating efficiency.
Jidoka is a production concept which involves immediate stop of work when problems arise in the
production line in order to stop the production of defective items from being passed on to subsequent stages ofthe process, and therefore making quality assurance an inherent part of the production process. To achieve this,Toyota’s equipment is designed to detect and highlight abnormalities and to stop whenever abnormalities occur.
Toyota also authorizes its machine operators and other members of its production team to stop production
whenever they note anything suspicious. This helps Toyota to build quality into the production process by
avoiding defects and preventing the waste that would result from producing a series of defective items.
Toyota believes that the Toyota Production System allows it to achieve mass-production efficiencies even in
high-mix low-volume production. This belief gives Toyota the flexibility to respond to changing consumer
demand without significantly increasing production costs. While the Toyota Production System remains the basisof Toyota’s automobile production, the system has been expanded for use in Toyota’s parts production, logistics
and customer service activities as well.
Through the Toyota Production System, issues are identified and analyzed at the actual site, the entire
production process is made visible, and production efficiency as well as product quality are improved through theapplication of measures to address the sources of problems. As one method to implement these measures, Toyota
utilizes sophisticated information technologies to improve each step of its vehicle development process, fromproduct planning to commencement of mass-production. These technologies are intended to enhance flexibility,
simplification, quality, cost competitiveness, and speed. Specifically, detailed virtual assembly and othersimulations of manufacturing processes are conducted on computer for a new vehicle or new production
equipment/systems before a prototype is made. An actual prototype is made only after defects and related issues
have been identified and resolved by computer simulation, thereby minimizing the time required for rebuilding
prototypes and significantly shortening the time required before starting mass production. Moreover, this system
is used to prepare virtual factories and other visual aids in order to facilitate training and communication atoverseas plants and enable the efficient transfer of necessary technology and skills.
In order to strengthen manufacturing and promote localization of overseas production, Toyota establishedthe Global Production Center (“GPC”) in July 2003 as a development and training center for global humanresources. The GPC is intended to introduce local managers to the Toyota methodology, allowing them to train
their subordinates with the local management. GPC develops simple, easy-to-understand and efficient training
systems for the development of explicit knowledge. One characteristic of the GPC is that managers andsupervisors, new hires and experienced workers can all receive common skill training. GPC’s training system
involves a pre-training phase where trainees learn basic skills and discover the skills that they must acquire
through image training. This is followed by various steps, from basic skill training, elemental task training, tostandard task training, which is a sure method of training. The fruits of this training method are reduced training
time, higher levels of achievement and the efficiency of training. Since January 2006, Toyota has opened
regional GPCs in North America, Europe and Asia. In each region, Toyota commenced courses where trainees
from each department are trained by local trainers to become trainers themselves.
With the aim of enhancing its competitive edge in “self-manufacturing”, Toyota, since 2001, has beendeveloping and implementing the “simple and user-friendly operation systems & facilities that can be handled byanyone, anywhere”. Toyota is developing its innovative production system, facilities and processing technologies
and is currently promoting it at a global level.
Distribution
Toyota’s automotive sales distribution network is the largest in Japan. As of March 31, 2013, this network
consisted of 281 dealers employing approximately 34 thousand sales personnel and operating approximately
4.7 thousand sales and service outlets. Toyota owns 15 of these dealers and the remainder are independent.
23

Toyota believes that this extensive sales network has been an important factor in its success in the Japanesemarket. A large number of the cars sold in Japan are purchased from salespersons who visit customers in theirhomes or offices. In recent years, however, the traditional method of sales through home visits is being replacedby showroom sales and the percentage of automobile purchases through showrooms has been gradually
increasing. Toyota expects this trend to continue, and accordingly, plans to improve its sales activities such as
customer reception and meticulous service at showrooms to increase customer satisfaction.
Sales of Toyota vehicles in Japan are conducted through four sales channels — “Toyota”, “Toyopet”,“Corolla” and “Netz”. In addition, Toyota introduced the Lexus brand to the Japanese market in August 2005,
and currently distributes the Lexus brand vehicles through a network of 172 sales outlets in order to enhance its
competitiveness in the domestic luxury automobile market. The following table provides information for eachchannel as of March 31, 2013.
Dealers
ChannelToyota . . . . . . . . . . . . .
Toyopet . . . . . . . . . . . .
Corolla . . . . . . . . . . . . .
Netz . . . . . . . . . . . . . . .

ToyotaOwned

Independent

Total

Market Focus

4
4
4
3

45
48
70
103

49
52
74
106

Luxury channel for Toyota brand vehicles
Leading channel for the medium market
Volume retail channel centering on compact models
Sales channel targeting customers with new values forthe 21st century

Sales
Outlets

Brand

Lexus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

172

Market Focus

Premium brandOutside Japan, Toyota vehicles are sold through approximately 170 distributors in approximately 170
countries and regions. Through these distributors, Toyota maintains networks of dealers. The chart below shows
the number of Toyota distributors as of March 31, 2013 by country and region:
Country/Region

North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia (excluding China) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oceania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Middle East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central and South America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of Countries

Number of Distributors

3
36
1
17
17
17
53
31

5
30
4
12
14
16
45
42

Improve Efficiency
Toyota is working on the following to create a structure allowing for efficient development, production andsales that can respond flexibly to changes in the external environment:•

working with suppliers to dramatically increase the efficiency of development,•

creating a production structure that can better withstand fluctuations in demand and currency exchange
rates, and•strengthening sales capabilities in line with local conditions.

Toyota also plans to improve profitability and enhance operating efficiency by continuing to pursue
aggressive cost reduction programs, including:•

improving product development and production efficiencies through the re-integration and improvement ofvehicle platforms and power trains and through the development of electronic platforms which organize
electronic devices of vehicles as a package and standardize electronic structure and infrastructure,24•

implementing Ryohin-Renka Cost Innovation (“RR-CI”) activity, which aims at the elimination ofwaste in all processes from design to production while ensuring the reliability and safety of each part,•

applying advanced information technologies to improve efficiency throughout the product development
and production processes,•

increasing the focus on global purchasing opportunities, standardization and modularization to optimize
purchasing from suppliers,•

streamlining production systems, and•improving the efficiency of domestic and international distribution.

Toyota is further improving production efficiency by installing more versatile equipment and systems,
modifying vehicle body designs to allow for a greater variety of models on each production line and sharing
more parts among vehicles, not simply among different models, but also among different platforms.
Toyota continues to focus on reducing costs and improving efficiency through various measures. One ofthese measures is the reduction in the number of platforms used in vehicle production. Platforms are the essential
structures that form the base of different vehicle models. By using a common platform for the production of agreater number of models, Toyota believes that it will be able to decrease the substantial expenditures required todesign and develop vehicles. In addition, Toyota believes that it will be able to achieve the scale benefits ofproducing larger volumes per platform, thereby reducing manufacturing cost per vehicle.
In April 2012, Toyota announced a new development framework, the TNGA, which reconciles sweeping
advances in product appeal with cost reductions. The new framework sets forth an architecture that incorporates
not only the three fundamental vehicle functions of moving, turning and stopping, but also ergonomics such as
driving position as well as freedom of design. Toyota plans to efficiently develop cars with high basicperformance attributes by developing module parts based on this architecture. The TNGA provides for handling
multiple models simultaneously in grouped development projects that will increase the sharing of parts and corevehicle components. This sharing, carried out in cooperation with suppliers, will result in lowered costs, thereby
allowing developmental manpower and funds to be divided between R&D to meet consumer preferences andR&D to meet regional needs, resulting in further product improvement.
By April 2013, Toyota established systems to rapidly promote the TNGA and reevaluated the way it does
business from the ground up. Toyota plans to continue to produce high-quality, profitable and attractive cars.
Enhancing Vehicle Functionality and Intelligent Transport Systems — Realizing a Smart Mobility Society
Toyota is striving to enhance vehicle functionality that will increase the attractiveness of vehicles and theexcitement of driving. Toyota is also working in various ways to realize enhanced transport systems that aresafer, more environmentally friendly and comfortable through ITS, Toyota’s comprehensive initiative regarding
people, cars and the driving environment. Today, automobiles are not just a means of transport, but are also
expected to play additional roles in people’s lives and society. Toyota will continue to face this challenging goal
and aim to innovate technology that will lead to an enriched lifestyle that offers people peace of mind in a smart
mobility society where vehicles will manifest new kinds of value-added and attractive functions and features thatare closely connected to all aspects of human activity and life as a part of smart communities worldwide.
Enhancing Vehicle Functionality — Information service functions.
To Toyota, enhancing vehicle functionality means advancing information service functions that
integrate vehicles with telecommunication systems, and driving assistance functions that use communication
technologies and sensing technologies to create vehicles with intelligent features. Information service
25

functions can improve the convenience and enrich the driving experience by means of information
communication technologies, which add new functions “connected” to the basic vehicle functions of“running, turning and stopping”. Examples include the following:•

Advanced car navigation systems are equipped with functions such as displaying maps and detailed
information about the car parking space and the VICS (Vehicle Information and Communication
System) that provides real-time information about road traffic such as congestion, accidents, traffic
restrictions and parking. These car navigation systems play an important role in providing drivers
with various types of information on safety, smooth traveling, comfort and convenience.

•

G-BOOK is the latest information network service that merges the latest network technologies andcar multimedia, prior to the arrival of the ubiquitous network society. G-BOOK provides various
types of information useful for driving a car as well as safety and security services that detect
unusual conditions in the vehicle, which supports a lifestyle using automobiles anytime andanywhere through a network. In 2005, Toyota started G-BOOK ALPHA and G-Link that is atelematics service exclusive to Lexus, which added various features including the traffic congestion
forecast service. In 2007, Toyota launched G-BOOK mX, which has matured as a comprehensive
telematics service and is built on the proven reliability and security of G-BOOK with the addition ofservices allowing drivers to use more convenient navigation systems such as “Map-on-Demand” —the world’s first technology for automatically updating map data and “Probe Communication Traffic
Information” that provides drivers with highly precise information on traffic congestion.

•

HELPNET emergency call service is an emergency notification system that transmits necessary
information such as the vehicle location either automatically or through the touch of a button in theevent of a traffic accident or medical emergency. It immediately contacts police and fire
departments through the HELPNET Operation Center. This system is integrated into G-BOOK and
G-Link to improve the quality of services. HELPNET shortens the time taken to report following an
emergency situation, which contributes to decreasing the number of traffic accident fatalities andreducing the level of impact, preventing secondary disasters and easing traffic congestion.

In addition to the above, Toyota also operates a Japanese-language website, GAZOO.com. The name
“Gazoo” originates from the Japanese word gazo meaning images. Gazoo was established as a membership
Internet service linking Toyota, its national dealer network and Gazoo members, and has provided
information on new and used Toyota vehicles and related services as well as online shopping capabilities.
As an interactive portal for automobiles, in addition to information on Toyota vehicles, Gazoo currently
provides information on other automobile companies and also offers a rich blogging feature. In addition,
Gazoo features GAZOO Racing and GAZOO Mura, through which customers can experience the enjoymentthat cars offer, to further complement its content line-up. In October 2008, Toyota introduced the new
Internet-based service GAZOO METAPOLIS, which is Toyota’s own virtual city using 3-D images, toinspire new interest in cars and propose new ways for people to enjoy their vehicles through the Internet.
Toyota utilized its GAZOO technology to further expand its automobile information service by launching
the G-BOOK telematics service in Japan in fall 2002 and G-Link, which is a service exclusive to Lexus, inAugust 2005. Toyota also offers a theft detection system, vehicle tracking service, operator support service
as standard to enhance services aiming to provide safety, security and comfort for G-BOOK and G-Link
users in their lifestyle using vehicles. With G-BOOK mX announced in April 2007, Toyota started offering
services that allow drivers to use more convenient navigation systems such as “Map-on-Demand” — theworld’s first technology for automatically updating map data. Also, Toyota has further strengthened its
linkage between Gazoo and G-BOOK and has, for example, allowed map information searched on a blog on
GAZOO.com to be used on G-BOOK, further maturing as a comprehensive telematics service. In Japan,
Toyota is seeking to promote the use of the G-BOOK by equipping all Crown models with navigation
systems with the G-BOOK and increasing the number of car navigation system models that are compatible
with G-BOOK. Toyota has also licensed its G-BOOK technology to certain other competitors in Japan.
Toyota is applying the technology and experience it has accumulated in Japan to regions outside Japan.
G-BOOK services have been available in China since March 2009, and its unique telematics services in the26

United States was launched in August 2009. In addition, Toyota began offering the new G-BOOK software
for smartphones starting from December 2010 in Japan, and began to offer the same service in Thailand
starting March 2012.
In addition, in March 2004, Toyota launched its CRM (Customer Relationship Management) systemcalled e-CRB (evolutionary Customer Relationship Building) in Thailand. e-CRB builds on a technology
cultivated through the development of Gazoo and G-BOOK and offers its customers a variety of services
such as providing information of new vehicles, accepting requests for brochures and estimates and notifying
customers when it is time for maintenance by keeping track of the vehicle’s maintenance history andmileage. In addition, e-CRB offers an advanced operation system that can be utilized comprehensively at
dealers including new and used cars and services. Toyota is currently promoting e-CRB in countries such as
China, Thailand, Australia, India and Brazil where steady progress has been made as the service-in ratio has
increased.
Also, Toyota introduced a system called Sales Logistics Integrated Management (“SLIM”) in
Guangzhou, China. By utilizing real sales information and linking with production and distribution, Toyota
is able to realize the Just-in-Time production system of producing and delivering only the number ofvehicles that have been sold. SLIM has been recognized to significantly increase the freshness of inventory
and improve cash flow.
In September 2010, Toyota announced its smart-grid initiatives, which are intended to demonstrateefficient energy use toward the realization of a low-carbon and energy-saving society. By utilizing
technology cultivated through the Internet and telematics services mentioned above, Toyota developed the
Toyota Smart Center (“TSC”) that optimally controls electricity and links EV (electric vehicles) and PHV(plug-in hybrid vehicles) with homes, and conducted in Rokkasho Village in Aomori, a demonstration
project aimed to reduce overall CO2 emissions and users’ electricity costs. In addition, in order to develop a
global platform of the TSC, Toyota announced a partnership with Microsoft Corp. in April 2011 and apartnership with Salesforce.com in May 2011. Toyota plans to utilize the cloud technology of these twocompanies in its Internet and telematics services to build a framework for TSC’s global implementation. In
January 2012, Toyota began eConnect for PHV and “TOYOTA friend” services. In May 2013, Toyota
utilized the latest version of Microsoft’s SharePoint to comprehensively redesign GAZOO, the automobile
information portal site. Toyota is also developing its “Big Data Traffic Information Service,” a new kind of
traffic-information service utilizing big data including vehicle locations and speeds, road conditions andother parameters collected and stored via telematics services. Based on such data, traffic information,
statistics and other related information can be provided to local governments and businesses to aid traffic
flow improvement, provide map information services and assist disaster prevention measures. In June 2013,
Toyota started accepting applications to use the service from local governments and businesses acrossJapan. Going forward, Toyota plans to continue to work with new information technologies and the IT
industry to establish a framework for TSC’s global implementation and to realize a mobility society in the
future.
Enhancing Vehicle Functionality — Driving Assistance Functions.
Toyota’s driving assistance functions offer functions that assist drivers with an aim to lessen the burdenof driving, enhance safety and provide pleasure of driving to everyone. Toyota is proceeding withenhancements to commercialize various functions that assist the driver in sensing external information,
avoiding danger and making appropriate maneuvers. These functions have started to be incorporated insome Toyota vehicles. Examples of driving assistance functions include the following:•

VDIM (Vehicle Dynamics Integrated Management) is a system that constantly monitors the driver’s
operations and the vehicle’s situation and centrally manages the engine, steering mechanisms andbrakes. By stabilizing the vehicle before the driver loses control of the vehicle, the VDIM achieves ahigh level of ‘active safety’ and improves driving performance, namely running, turning andstopping.
27•“Pre-collision System” is a system that perceives possibilities of a crash with obstacles or the car infront through a millimeter-wave radar sensor that can precisely detect objects even in bad weather
conditions. If collision seems to be unavoidable, it proceeds to activate safety devices at an earlystage to reduce any damage. Toyota is also developing an advanced system that detects pedestrians
using a stereo camera and a driver monitoring camera that detects the driver’s face orientation andthe opening and closing of eyes, which enable the determination of the likelihood of a collision at an
earlier stage.

•

Radar Cruise Control (with all-speed tracking function) allows the vehicle to keep a constantdistance between itself and the preceding vehicle within a speed range from zero to a preset speed,automatically slowing down and stopping if necessary to avoid collision. When the car in front
speeds up, it allows the driver to accelerate, resuming the system.

•“Lane Keeping Assist System” is a system that uses a camera to detect white or yellow lane markers
while driving on a highway. The system assists the driver’s operation of the steering wheel in orderto help keep the vehicle traveling between the lane markers by controlling electric power steering,
and also warns the driver if it detects possible deviation. This system does not automatically control
the steering to maintain travel between lane markers, but requires the driver to steer.

•“Intelligent Parking Assist” is the world’s first parking assistance system that enables the vehicle tobe automatically steered by electric steering when backing into a parking spot or when parallelparking. The driver presets the parking position on the display monitor. The system allows thedriver to set the parking position more easily, reducing driver maneuvering by using a spatial
cognition feature that detects the parking space through ultrasonic sensors.

•“Blind Spot Monitor” is a system which aims to reduce accidents by alerting the driver to othervehicles in the driver’s blind spot diagonally behind the driver’s seat with sound and visual display
in the side mirrors while changing lanes.

Enhancing Transport Systems.
Enhancing transport systems requires taking a general approach that addresses various factors across awide scope that are pertinent not only to vehicles but also roads, people and public transport systems inorder to ensure smooth and efficient movement of people and vehicles and to build a safe transportation
environment. In addition to VICS and ETC (Electronic Toll Collection System), which are already standard
in Japan, the “Vehicle-Infrastructure Cooperative Systems that Support Safety Driving,” which combines
cutting edge IT and vehicle technology, is in development and has begun to be partially implemented.
•

The “ITS Spot Service” commenced in 2009 and corresponding products are available for purchase.
Mainly for use on highways, this service provides drivers with information related to road trafficand safe driving that is transmitted from road infrastructures to car navigation systems throughvideo and voice.

•In the summer of 2011, Toyota introduced products corresponding to the driving safety support
system (“DSSS”) which the National Police Agency has started operating. Mainly for use on normal
roads, this system supports safe driving, including by preventing the driver from overlooking red
lights, by transmitting traffic control information (traffic lights and signs, etc.) and other local
information from road infrastructures to automobiles.

•

Systems aimed at further reducing accidents, improving fuel efficiency and reducing CO2 emissions
are in development. Through direct and continuous exchange of information between vehicles andthe road, other vehicles and pedestrians, these systems aim to mitigate side collisions and accidents
involving pedestrians, which have been difficult to mitigate to date. This also includes systems suchas C-ACC (Co-operative Adaptive Cruise Control) which supports smooth acceleration anddeceleration when following behind another vehicle, and fuel efficient driving.
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Toyota is committed to developing new ITS products. Toyota believes that intelligent transport systems will
become an integral part of its overall automotive operations and enhance the competitiveness of its vehicles. As
familiarity with and demand for ITS products grows, Toyota expects an increasing number of ITS products tobecome commercially available and achieve greater acceptance each year.
Smart Communities.
In April 2010, Toyota City was selected as a “Model Region for Next-Generation Energy Systems” by the
Ministry of Economy, Trade and Industry. Toyota has since joined the “Toyota City Low-Carbon Society
Verification Council” (established in August 2010), and has been carrying out experiments relating to the“Optimization of Local Energy Use in Households and Destinations (commercial and public facilities)” and“Establishment of a System for Low-Carbon Emission Transportation.” In addition, starting in 2014, Toyota will
launch an experimental ultra-compact electric vehicle sharing program in Grenoble, France, together with thecity of Grenoble and local companies.
In February 2013, Toyota established the “F-Grid Ohira, Miyagi Limited Liability Partnership,” a smart
community business which operates the “F-Grid” in the Sendai Hokubu Industrial Park in the village of Ohira,Miyagi, together with Toyota affiliated companies. The Partnership began supplying electricity and heat topartners in the industrial park in April 2013. This business aims to contribute to “creating a safe and securecommunity with the community and the industrial park working as one,” “revitalizing local industry” and“revitalizing the community.” Toyota believes that the elemental technologies developed through theseexperiments and businesses will help in the creation of new systems for society that meet differing social
environments and municipal needs, not just in Japan but around the world, in both developed and emerging
countries, and will play a role in the creation of energy and transportation infrastructure to help spread nextgeneration eco-cars.
Financial Services
Toyota’s financial services include loan programs and leasing programs for customers and dealers. Toyota
believes that its ability to provide financing to its customers is an important value-added service. In July 2000,
Toyota established a wholly-owned subsidiary, Toyota Financial Services Corporation (“TFSC”), to oversee themanagement of Toyota’s finance companies worldwide, through which Toyota aims to strengthen the overall
competitiveness of its financial business, improve risk management and streamline decision-making processes.
Toyota plans to expand its network of financial services, in accordance with its strategy of developing autorelated financing businesses in significant markets. Accordingly, Toyota currently operates financial services
companies in 34 countries and regions, which support its automotive operations globally.
Toyota’s revenues from its financial services operations were ¥1,170.6 billion in fiscal 2013, ¥1,100.3
billion in fiscal 2012 and ¥1,192.2 billion in fiscal 2011. In fiscal 2012, Toyota collaborated with dealers invarious countries and regions, and the financial services operations were steady overall, despite the harsheconomic environment due to the negative impact of the Great East Japan Earthquake and the floods in Thailand.
In fiscal 2013, with strengthening economies predominantly in the United States and emerging markets such as
Asia, Toyota’s share of financing provided for new car sales of Toyota and Lexus vehicles in regions where
TFSC operates hit 34%, its highest level ever, and the balance of loan receivables increased steadily as a result of
the continued timely implementation of sales programs in collaboration with dealers. Meanwhile, Toyota ismaking efforts to provide both its customers and dealers with stable financial services, by diversifying its funding
mechanisms with ABCP (Asset Backed Commercial Paper) and ABS (Asset Backed Securities), in addition to
mid- to long-term financings, primarily in commercial paper issuances, corporate bonds and bank borrowings. In
fiscal 2012, Toyota continued to perform detailed credit appraisals and serve customers by monitoring bad debt
and loan payment extensions, and the percentage of credit losses improved by 0.19% from fiscal 2011 to 0.22%.
In fiscal 2013, the percentage of credit losses remained at 0.23%, which was almost the same level as fiscal 2012.
Toyota continues to work towards improving its risk management measures in connection with credit andresidual value risks.
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Toyota Motor Credit Corporation is Toyota’s principal financial services subsidiary in the United States.
Toyota also provides financial services in 33 other countries and regions through various financial services
subsidiaries, including:•

Toyota Finance Corporation in Japan,•

Toyota Credit Canada Inc. in Canada,•

Toyota Finance Australia Ltd. in Australia,•

Toyota Kreditbank GmbH in Germany, and•Toyota Financial Services (UK) PLC in the United Kingdom.

Toyota Motor Credit Corporation provides a wide range of financial services, including retail financing,retail leasing, wholesale financing and insurance. Toyota Finance Corporation also provides a range of financial
services, including retail financing, retail leasing, credit cards and housing loans. Toyota’s other financesubsidiaries provide services including retail financing, retail leasing and wholesale financing.
In May 2011, Toyota established Toyota Financial Services India Limited, a financial services company, inIndia. Toyota Financial Services India Limited began its operations in June 2012 and has since expanded its
business to major cities such as Bangalore, Delhi and Mumbai. In January 2013, Toyota established a newleasing company, Toyota Motor Leasing China Co., Limited, in China, which began its operations in April 2013.
Net finance receivables for all of Toyota’s dealer and customer financing operations were approximately¥12 trillion as of March 31, 2013, representing an increase of approximately 24.1% as compared to the previous
year. The majority of Toyota’s financial services are provided in North America. As of March 31, 2013,
approximately 57.6% of Toyota’s finance receivables were derived from financing operations in North America,
10.0% from Europe, 9.9% from Japan, 9.5% from Asia and 13.0% from other areas.
Approximately 49% of Toyota’s unit sales in the United States during fiscal 2013 included a finance orlease arrangement with Toyota. Because the majority of Toyota’s financial services operations are related to thesale of Toyota vehicles, a decrease in vehicle unit sales may lead to a contraction of Toyota’s financial services
operations.
The worldwide financial services market is highly competitive. Toyota’s competitors in retail financing andretail leasing include commercial banks, credit unions and other finance companies. Commercial banks and otherautomobile finance subsidiary companies serving their parent automobile companies are competitors of Toyota’s
wholesale financing activities. Competitors in Toyota’s insurance operations are primarily national and regional
insurance companies.
For information on Toyota’s finance receivables and operating leases, please see “Operating and Financial
Review and Prospects — Operating Results — Financial Services Operations.”
Retail Financing
Toyota’s finance subsidiaries acquire new and used vehicle installment contracts primarily from Toyota
dealers. Installment contracts acquired must first meet specified credit standards. Thereafter, the financecompany retains responsibility for contract collection and administration. Toyota’s finance subsidiaries acquire
security interests in the vehicles financed and can generally repossess vehicles if customers fail to meet theircontractual obligations. Almost all retail financings are non-recourse, which relieves the dealers from financial
responsibility in the event of repossession. In most cases, Toyota’s finance subsidiaries require their retailfinancing customers to carry automobile insurance on financed vehicles covering the interests of both the financecompany and the customer.
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Toyota has historically sponsored, and continues to sponsor, special lease and retail programs by subsidizing
below market lease and retail contract rates.
Retail Leasing
In the area of retail leasing, Toyota’s finance subsidiaries acquire new vehicle lease contracts originatedprimarily through Toyota dealers. Lease contracts acquired must first meet specified credit standards after which
the finance company assumes ownership of the leased vehicle. The finance company is generally permitted totake possession of the vehicle upon a default by the lessee. Toyota’s finance subsidiaries are responsible forcontract collection and administration during the lease period. The residual value is normally estimated at thetime the vehicle is first leased. Vehicles returned to the finance subsidiaries at the end of their leases are sold byauction. For example, in the United States, vehicles are sold through a network of auction sites as well as throughthe Internet. In most cases, Toyota’s finance subsidiaries require lessees to carry automobile insurance on leased
vehicles covering the interests of both the finance company and the lessee.
Wholesale Financing
Toyota’s finance subsidiaries also provide wholesale financing primarily to qualified Toyota vehicle dealers
to finance inventories of new Toyota vehicles and used vehicles of Toyota and others. The finance companies
acquire security interests in vehicles financed at wholesale. In cases where additional security interests would be
required, the finance companies take dealership assets or personal assets, or both, as additional security. If adealer defaults, the finance companies have the right to liquidate any assets acquired and seek legal remedies.
Toyota’s finance subsidiaries also make term loans to dealers for business acquisitions, facilities
refurbishment, real estate purchases and working capital requirements. These loans are typically secured withliens on real estate, other dealership assets and/or personal assets of the dealers.
Insurance
Toyota provides insurance services in the United States through Toyota Motor Credit Corporation’s whollyowned subsidiary, Toyota Motor Insurance Services, Inc. (“TMIS”) and its wholly-owned insurance company
subsidiaries. Their principal activities include marketing, underwriting and claims administration. TMIS also
provides coverage related to vehicle service agreements and contractual liability agreements through Toyota
dealers to customers. In addition, TMIS also provides coverage and related administrative services to affiliatedcompanies of Toyota Motor Credit Corporation. Toyota dealers in Japan and in other countries and regions also
engage in vehicle insurance sales.
Other Financial Services
Toyota Finance Corporation launched its credit card business in April 2001 and began issuing Lexus credit
cards in 2005 when the Lexus brand was introduced in Japan. As of March 31, 2013, Toyota Finance Corporationhas 11.8 million card holders (including Lexus credit card holders).
As part of Toyota’s restructuring of its domestic financial services businesses, Toyota assigned all of thestock of Toyota Financial Services Securities Corporation (“TFSS”), a subsidiary of Toyota Financial Services
Corporation (“TFSC”), to Tokai Tokyo Financial Holdings, Inc. (“TTFH”) and agreed to the merger of TFSS
with Tokai Tokyo Securities Co., Ltd., a subsidiary of TTFH. In order to ensure the smooth implementation of
the merger and to support the new company after the merger, TFSC made a 5% investment in TTFH.
All Other Operations
In addition to its automotive operations and financial services operations, Toyota is involved in a number ofother non-automotive business activities. Net sales for these activities totaled ¥1,066.4 billion in fiscal 2013,¥1,048.9 billion in fiscal 2012 and ¥972.2 billion in fiscal 2011. Sales to external customers of all otheroperations in fiscal 2013 represented 2.4% of Toyota’s net revenues for fiscal 2013. Substantially all of Toyota’s
revenues from other operations were derived in Japan.
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Housing
Toyota established its subsidiary Toyota Housing Corporation in April 2003 and has transferred to it productplanning and sales operations related to the manufacture and sale of housing. Furthermore, in order to quickly
and accurately grasp clients’ needs and to plan, develop and sell products on a timely basis, in April 2008,
Toyota transferred the product development operation to Toyota Housing Corporation. In October 2010, Toyota
spun-off its housing operations (project planning, technology development and manufacturing) through astatutory demerger and integrated them into Toyota Housing Corporation. Toyota believes that in the vastly
changing housing market environment, the integration of the development, manufacture and sales functions will
expedite decision making and lead to flexible business operations that will enable Toyota to better respond to theneeds of even more customers. In March 2005, Toyota, together with institutional investors, agreed to jointly
invest in Misawa Home Holdings, Inc. (“Misawa”; renamed Misawa Homes Co., Ltd.) pursuant to its request forassistance in its rehabilitation. In April 2010, determining that a stronger collaboration with Misawa would bedesirable in order to achieve further growth in the difficult operating environment of the housing industry,
Toyota Housing Corporation agreed to purchase Misawa shares from an institutional investor. In addition,
Toyota transferred ownership of Misawa to Toyota Housing Corporation in October 2010. Through these
activities, Toyota has strengthened the housing business of both companies.
Information Technology
See “— Enhancing Vehicle Functionality and Intelligent Transport Systems” for a description of Toyota’s
information technology.
Governmental Regulation, Environmental and Safety Standards
Toyota is subject to laws in various jurisdictions regulating the levels of pollutants generated by its plants.
In addition, Toyota is subject to regulations relating to the emission levels, fuel economy, noise and safety of its
products. Toyota has incurred significant costs in complying with these laws and regulations and expects to incur
significant compliance costs in the future. Toyota’s management views leadership in environmental protection as
an important competitive factor in the marketplace.
Vehicle Emissions
Japanese Standards
The Air Pollution Control Law of Japan and the Road Vehicle Law and the Law Concerning Special
Measures for Total Emission Reduction of Nitrogen Oxides from Automobiles in Specified Areas regulate
vehicle emissions in Japan. In addition, both the Noise Regulation Law and the Road Vehicles Law provide fornoise reduction standards on automobiles in Japan. Toyota’s vehicles manufactured for sale in Japan comply with
all Japanese exhaust emission and noise level standards.
U.S. Federal Standards
The federal Clean Air Act directs the Environmental Protection Agency (“EPA”) to establish and enforce air
quality standards, including emission control standards on passenger cars, light trucks and heavy-duty vehicles.
The EPA decided in February 2000 to adopt more stringent vehicle emission and fuel economy standards
applicable to passenger cars and light trucks produced in model years 2004 and beyond. In the standards adopted
for model years 2004 and beyond, manufacturers must guarantee that their vehicles meet the requirements for ten
years or 120 thousand miles, whichever occurs first. Manufacturers are not permitted to sell vehicles in the
United States that do not meet the standards. In April 2007, EPA regulations that further restrict emissions frompassenger cars and light trucks operating at cold temperatures became effective. The new emissions standards set
by these regulations are being phased in between 2010 and 2013. Similar standards that further restrict emissions
from heavy-duty vehicles operating at cold temperatures will be phased in from 2012 to 2015. In March 2013,
the EPA announced new vehicle emission and fuel standards for passenger vehicles and light-duty trucks formodel years 2017 and onwards.
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Furthermore, in April 2007 the U.S. Supreme Court ruled that the EPA has the authority to regulate
automobile emissions of greenhouse gases. In response to this ruling, on April 1, 2010 the EPA and the federal
National Highway Traffic Safety Administration (“NHTSA”) issued a joint final rule to reduce the emission ofgreenhouse gases from passenger cars, light-duty trucks and medium-duty passenger vehicles for model years
2012 through 2016. These vehicles are required to meet an estimated combined average emissions level of 250
grams of carbon dioxide per mile, equivalent to 35.5 miles per gallon if the requirements were met through fueleconomy standards. The NHTSA also set Corporate Average Fuel Economy (“CAFE”) standards for passenger
cars and light trucks that will require manufacturers of those vehicles to meet an estimated combined average
fuel economy level of 34.1 miles per gallon in model year 2016. In addition, on August 28, 2012, the EPA andthe NHTSA jointly issued the final rule to further reduce greenhouse gas emissions and improve fuel economy
for passenger vehicles, light-duty trucks and medium-duty passenger vehicles for model years 2017 through2025. In the final rule, these vehicles are required to meet an estimated combined average emission level of 163
grams of carbon dioxide per mile in model year 2025, equivalent to 54.5 miles per gallon if these requirements
were met through improvements in fuel economy standards. The NHTSA also issued CAFE standards forpassenger vehicles and light trucks that would require manufacturers to meet an estimated combined average fueleconomy level of 49.6 miles per gallon in model year 2025. According to the final rule, these standards are to bereevaluated by 2018.
As discussed above, the EPA has been granted the authority to set fuel standards in connection with theregulation of automobile emissions. In October 2010, the EPA approved the sale and use of fuel with a 15%
ethanol blend (“E15”) for model years 2007 and later passenger vehicles and light-duty trucks. The use of E15 is
not permitted for engines used in lawnmowers, small generators, motorbikes, boats and other vehicles andequipment. Subsequently, in February 2011, the EPA approved the use of E15 for model years 2001 and latervehicles. The Alliance of Automobile Manufacturers (“The Alliance”), of which Toyota Motor North America isa member, has stated that current vehicles are only guaranteed to function on fuel up to 10% ethanol and the
EPA’s permission is invalid. The Alliance created the Engine Products Group together with the Global
Automakers, the National Marine Manufacturers Association and the Outdoor Power Equipment Institute, and in
December 2010 the Engine Products Group brought suit against the EPA. The lawsuit was dismissed in January
2013 on the grounds that the Engine Products Group lacked standing, and in March 2013, the Engine ProductsGroup appealed the decision to the Supreme Court of the United States.
California Standards
Under the federal Clean Air Act, states are permitted to establish their own vehicle emission control standards
if they receive a waiver from the EPA. As a result, the California Air Resources Board (“CARB”) established the“Low Emission Vehicle Program” and set emission standards for certain regulated pollutants that were phased in
beginning in the 2004 model year. Under these standards most light trucks and passenger cars are required to meetthe same emissions standards, which were stricter than the federal standards. As part of the original Low Emission
Vehicle Program, the CARB also required that a specified percentage of a manufacturer’s passenger cars and lighttrucks sold in California for all model years 1998 and after be “zero-emission vehicles” (vehicles producing noemissions of regulated pollutants). The CARB subsequently eliminated the zero-emission vehicles mandate formodel years before 2005, and decided to adopt a zero-emission vehicles requirement for model years 2005 andbeyond. This zero-emission vehicles requirement also permitted certain advanced technology vehicles such as PHV(Plug-in Hybrid Vehicles), hybrid cars and alternative fuel vehicles that meet “partial zero-emission vehicles
requirements” to be granted partial qualification as EV (Electronic Vehicles) or FCV (Fuel Cell Vehicle). Toyota’s
battery-powered RAV4 EV compact sport-utility vehicle and the Toyota FCHV qualify as zero-emission vehicles.
The current Prius plug-in hybrid, Prius model and the Camry Hybrid qualify as partial zero-emission vehicles under
the zero-emission vehicles requirement adopted by the CARB. Toyota intends to continue to develop additional
advanced technologies and alternative fuel technologies that will allow other vehicles using such technologies toqualify as zero-emission vehicles or partial-zero-emission vehicles.
In July 2002, the California legislature passed legislation that required the CARB to develop and adopt, by
the end of 2004, regulations that achieved the maximum feasible reduction in greenhouse gas emissions from33

vehicles. In September 2004, the CARB adopted regulations that required a 20 to 30 percent reduction ofgreenhouse gas emissions from passenger vehicles, light trucks and other noncommercial vehicles to be phasedin between the 2009 and 2016 model years.
In December 2007, the EPA denied California’s request for a waiver under the Clean Air Act that would
have allowed the state to enforce these regulations to control greenhouse gas emissions from motor vehicles.
However, the EPA reconsidered its decision pursuant to a direction issued by the U.S. President in January 2009,and in July 2009 decided to allow the state to enforce such regulations.
In February 2010, the CARB enacted regulations that deem automobile manufacturers that produced
vehicles in model years 2012 through 2016 that are in compliance with the greenhouse gas emission regulationsof the EPA to be in compliance with California’s greenhouse gas emission regulations. Toyota is currently
developing plans to comply with the EPA regulations.
In January 2012, the CARB approved a new emission control program for model years 2017 to 2025 called
Advanced Clean Cars. The program covers greenhouse gas standards for cars and light trucks, reductions ofsmog-forming emissions, zero-emission vehicles regulations and clean fuels outlet regulations. The CARB is in
the process of developing specific rules for the program.
Other States
The states of New York, Massachusetts, Connecticut, Maine, Maryland, New Jersey, New Mexico, Oregon,Pennsylvania, Rhode Island, Vermont, Washington, Delaware and Colorado have either adopted, or plan toadopt, regulations substantially similar to California’s zero-emission vehicles requirement and greenhouse gas
emissions regulations.
Canadian Standards
Canada has established vehicle emission standards equivalent to the federal standards in the United States,
including the heightened requirements that became applicable to passenger cars and light trucks in model years
2004 and beyond. In October 2010, the Canadian government also established its proposed greenhouse gas
emission regulations that are similar to those enacted by the EPA. Furthermore, certain Canadian provinces are
currently considering enacting their own regulations on vehicle emissions of greenhouse gases.
European Standards
The European Union adopted a directive that establishes increasingly stringent emissions standards forpassenger vehicles and light commercial vehicles in October 1998. Under this directive, the standards adopted
beginning with year 2000 require manufacturers to recall any vehicles which fail to meet the standards for five
years or 80 thousand kilometers, whichever occurs first. Toyota introduced vehicles complying with thisdirective in 1999. Under standards adopted in 2005, manufacturers are obligated to meet the more stringent
standards for five years or 100 thousand kilometers, whichever occurs first. In 2007, the European Parliament
adopted more stringent emission standards for passenger vehicles and light commercial vehicles. The effective
dates for phasing in these stricter standards for passenger cars were September 2009 for Euro 5 and September
2014 for Euro 6. For light commercial vehicles, the effective dates are September 2010 for Euro 5 and September
2015 for Euro 6. Euro 5 provides for lower emission levels for gasoline and diesel powered vehicles and also
extends the manufacturers’ responsibility for emission performance to 160 thousand kilometers. The primary
focus of Euro 6 is to limit further emissions of diesel powered vehicles and bring them down to a level equivalent
to gasoline powered vehicles.
Chinese Standards
Emissions regulations are being implemented throughout China pursuant to the Chinese National Standards(GB) of the Ministry of Environmental Protection of the People’s Republic of China, and the manufacture and34sale of models not meeting these regulations are prohibited. As for passenger vehicles, pursuant toGB18352.3-2005, Level 3 Emissions Regulations (corresponding to Euro 3 standards) apply to new models after
July 2007, and Level 4 Emissions Regulations (corresponding to Euro 4 standards) apply to new models after
July 2010. New models after July 2008 are also required to be equipped with on-board diagnostics. As for dieselpowered commercial vehicles, pursuant to GB17691-2005, new Level 3 Emissions Regulations apply to models
after January 2007. Although Level 4 Emissions Regulations were to apply to new models after January 2010,and Level 5 Emissions Regulations were to apply to new models after January 2012, because an infrastructure tosupply sufficient diesel fuel that meets the Level 4 quality standards has yet to be put in place, the Level 4
Emissions Regulations are scheduled to apply from July 2013. As for gasoline-powered commercial vehicles,
pursuant to GB14762-2008, Level 3 Emissions Regulations apply to new models after July 2009, and Level 4
Emissions Regulations apply to new models after July 2012. After the first day the regulation is implemented to a
new model, all new models released during the following approximate one-year period are also subject to theregulation. In addition, in some areas such as Beijing, Shanghai, Guangzhou, and the Pearl River Delta region,
the above mentioned regulations were implemented several years earlier by regional environmental preservation
authorities with the authorization of the Chinese State Council. With respect to passenger vehicles, adoption of
GB regarding the Level 5 Emissions Regulations corresponding to Euro 5 is currently in progress, in order toimplement the regulations throughout China. Beijing has already independently implemented its own Level 5
Emissions Regulations from March 2013.
Compliance with new emission control standards will present significant technological challenges toautomobile manufacturers and will likely require significant expenditures. Examples of these challenges include
the development of advanced technologies, such as high performance batteries and catalytic converters, as wellas the development of alternative fuel technologies. Manufacturers that are unable to develop commercially
viable technologies within the time frames set by the new standards will lose their market share and will beforced to decrease the number of types of vehicles and engines in their principal markets.
Standards of Other Countries
Countries other than Japan, the United States, Europe and China are also proactively introducing theemission regulations. Especially Eastern Europe, Taiwan and Hong Kong have followed the Europe’s lead andconsidered implementing emission regulations. Australia and other countries in Asia have also followed.
Vehicle Fuel Economy
Japanese Standards
The Law Concerning the Rational Use of Energy requires automobile manufacturers to improve theirvehicles to meet specified fuel economy standards. Fuel economy standards are established according to thetypes of vehicles specified below, and are required to be met by either fiscal 2011 (April 2010-March 2011),
fiscal 2016 (April 2015-March 2016) or fiscal 2021 (April 2020-March 2021).
Among qualifying passenger vehicles are:•Vehicles which are designated in Article 75, Paragraph 1 of the Road Vehicles Law as type-designatedvehicles (“type-designated vehicles”) with 10 seats or less using gasoline, gas oil or LPG;•

Type-designated vehicles with 11 seats or more that are 3.5 tons or less in vehicle weight using gasoline
or gas oil; and•Type-designated vehicles with 11 seats or more that are over 3.5 tons in vehicle weight using gas oil, or
designated carbon monoxide emission control vehicles (“designated carbon monoxide emission control
vehicles”) which are designated in Article 75-2 Paragraph 1 of the Road Vehicles Law.

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Among qualifying cargo vehicles are:•Type-designated vehicles that are 3.5 tons or less in vehicle weight using gasoline, gas oil or LPG; and•Type-designated vehicles that are over 3.5 tons in vehicle weight using gas oil or LPG, or designatedcarbon monoxide emission control vehicles.

Toyota is in compliance with the fuel economy standards that currently apply and is promoting theimprovement of its vehicles in order to achieve compliance with the standards that will apply beginning in fiscal
2016.
Japan is a signatory to the Framework Convention on Climate Change and has agreed to take measures toreduce its greenhouse gas emissions. Improved vehicle fuel economy is contributing to the reduction in carbon
dioxide emissions.
U.S. Standards
The Federal Motor Vehicle Information and Cost Savings Act requires automobile manufacturers to comply
with CAFE standards. Under this law, limits are imposed on the amount of regulated pollutants that may beemitted by new motor vehicles in the United States. A manufacturer is subject to substantial civil penalties if, in
any model year, its vehicles do not meet the CAFE standards. Manufacturers that exceed the CAFE standards
earn credits determined by the difference between the average fuel economy performance of their vehicles andthe CAFE standards. Credits earned for the five model years preceding the current model year, and credits
projected to be earned for the next three model years, can be used to meet CAFE standards in a current modelyear.
In April 2006, the NHTSA established CAFE standards applicable to light trucks for model year 2008 andbeyond. These CAFE standards aimed to shift the framework from one that used to be advantageous only tocompact car manufacturers to one that is fair to full line manufacturers. The requirements were changed so that
the CAFE standards are now determined by a sales rate based on vehicle size (measured by the area of the wheel
and wheel base) for each manufacturer.
In addition to the CAFE standards, there are multiple standards in the United States including the EPA’semission regulations and the California standard. Automobile manufacturers had called for uniform standards, as
they would need to comply with standards that varied by state if all standards became effective. On April 1, 2010
the EPA and the NHTSA issued a joint final rule to reduce the emission of greenhouse gases from passenger
cars, light-duty trucks and medium-duty passenger vehicles for model years 2012 through 2016. These vehicles
are required to meet an estimated combined average emissions level of 250 grams of carbon dioxide per mile,equivalent to 35.5 miles per gallon if the requirements were met through fuel economy standards. The NHTSA
also set CAFE standards for passenger cars and light trucks that will require manufacturers of those vehicles tomeet an estimated combined average fuel economy level of 34.1 miles per gallon in model year 2016.
Furthermore, the EPA and NHTSA joint final rule allows the two agencies and California standards to act in a
unified way, and creates a regulatory framework that makes compliance less burdensome for the manufacturers.
In addition, in December 2011, the EPA and the NHTSA issued a joint proposed rule to further reducegreenhouse gas emissions and improve fuel economy for passenger vehicles, light-duty trucks and medium-duty
passenger vehicles for model years 2017 through 2025. In the proposed rule, these vehicles would be required tomeet an estimated combined average emission level of 163 grams of carbon dioxide per mile in model year 2025,
equivalent to 54.5 miles per gallon if these requirements were met through improvements in fuel economy
standards. At the same time, the NHTSA also issued proposed CAFE standards for passenger vehicles and lighttrucks that would require manufacturers to meet an estimated combined average fuel economy level of 49.6 miles
per gallon in model year 2025. The final rule applying to model years 2017 to 2025 was announced on
August 28, 2012. The standards of fuel economy are stringent, and Toyota strives to meet the fuel economy
standards by further developing fuel-efficient technology, alternative fuel technology and other advanced
technology.
36

In addition, the Energy Tax Act of 1978 imposes a “gas guzzler” tax on automobiles with a fuel economy
rating below specified levels.
European Standards
The European Union has signed the Kyoto Protocol and agreed to reduce carbon dioxide emissions by 8%during the years 2008 to 2012, as measured from the 1990 base year. In early 1999, the European Commission
and the European Automotive Manufacturers Association (“ACEA”) reached a voluntary agreement which
establishes an average emissions target of 140 grams of carbon dioxide per kilometer for new cars sold in theEuropean Union in 2008 (the voluntary agreement applied to the 15 states who were members of the European
Union at that time). The Japan Automobile Manufacturers Association and the Korean Automobile
Manufacturers Association have also reached a voluntary agreement, similar to that entered into by the European
Commission, with the year 2009 as a target year.
In December 2008, the European Parliament approved a new regulation that establishes an average emission
standard of 130 grams of carbon dioxide per kilometer by 2012 for passenger vehicles sold in member states,
made effective in June 2009. The regulation will phase in gradually, initially requiring 65% of new cars tocomply with the new standards in 2012 and increasing to 100% of new cars in 2015. As a result of the new
regulations, different targets will apply to each manufacturer, based on their respective fleets of vehicles andweight. Penalties will apply to those manufacturers who fail to meet their targets from 2012, in amounts
corresponding to the degree of shortfall. Manufacturers failing to meet their targets between 2012 and 2018 will
incur penalties of between €5 and €95 per each gram of carbon dioxide per kilometer shortfall for each noncompliant vehicle, and such penalties will rise to €95 in 2019 and beyond. Furthermore, a medium- to long-termtarget of reducing emissions to 95 grams of carbon dioxide per kilometer by 2020 has also been proposed. This
represents a remarkably ambitious target, even in comparison to other fuel efficiency requirements worldwide.
Furthermore, in June 2011, a new carbon dioxide emission standard applicable to light commercial vehicles
entered into force establishing an average emissions target of 175 grams of carbon dioxide per kilometer. This
regulation has the same basic regulatory framework as passenger vehicles, raising the compliance rate from 70%
in 2014 to 100% in 2017, and as a longer term objective, 147 grams of carbon dioxide per kilometer by 2020
have been proposed.
An increasing number of European Union member states are introducing vehicle tax laws based on carbon
dioxide emission levels, pursuant to the directive issued by the European Commission in 2005. This trend is
expected to continue, in accordance with the recent increases in environmental awareness.
Chinese Standards
Fuel consumption regulations are being implemented pursuant to the Chinese National Standards (“GB”),
and the manufacture and sale of vehicle models not meeting these regulations are prohibited. As for passenger
vehicles, pursuant to GB19578-2004, Level 1 Fuel Consumption Regulations apply to new models after July
2005, and Level 2 Fuel Consumption Regulations apply to new models after January 2008. As for small
commercial vehicles, pursuant to GB20997-2007, Level 2 Fuel Consumption Regulations apply to new models
after February 2008, Level 1 Fuel Consumption Regulations apply to all vehicles as of January 2009, and Level 1
Fuel Consumption Regulations apply to all models as of January 2011. Each of these regulations applies to allapplicable models beginning one year after first applying to new models. These regulations determine theconsumption standards that apply depending on the mass of the applicable vehicle, and sets forth a method for
determining if each model has met the regulation. With respect to passenger vehicles, GB27999-2011 has been
issued to further strengthen fuel consumption regulations from 2012 and beyond. In these Level 3 Fuel
Consumption Regulations for passenger vehicles, the regulation framework was substantially revised, such as achange from regulations requiring each model to meet consumption standards to regulations requiring
automobile manufacturers to meet standards of average consumption across models.
37

Standards of Other Countries
As fuel prices increase and momentum gathers to prevent global warming, other countries in addition to
Japan, the United States, Europe and China are moving to introduce fuel consumption regulations, and Korea,
Mexico and Brazil have already decided to introduce fuel consumption regulations. Australia, Taiwan, India,
Canada and Vietnam are also actively considering the introduction of new fuel consumption regulations using theregulations of Japan, Europe and the United States as a base, and may implement them by approximately 2015.
Toyota predicts that this trend will spread to other countries, and in the future many nations will consider new
regulations related to fuel consumption and CO2.
Vehicle Safety
Japanese Standards
Standards requiring protection against electrocution have been applied to hybrid vehicles and electricvehicles manufactured since July 2012. In addition, the technological standards established by the United Nations
Economic Commission for Europe (“UNECE”), which are harmonized with Japanese passenger protection
standards against electrocution, have been introduced. The standards will apply to new vehicle models
manufactured on and after June 2014 and vehicles that continue to be manufactured on and after June 2016.
For the purpose of harmonizing with UNECE standards, electromagnetic compatibility standards will apply
to vehicles manufactured on and after August 2016. The pedestrian leg protection standards will apply graduallyto new type-designated vehicles manufactured on and after April 2013 and non-new type-designated vehicles
manufactured on and after February 2018. The rear underrun protection standards have been revised and will beapplied to vehicles manufactured on and after July 2015.
In addition, preparations for the introduction of UNECE standards to tire pressure monitoring systems(“TPMS”), electronic vehicle stability control (“EVSC”) for heavy vehicles, safety of rechargeable energy
storage systems, location and identification of hand controls, tell-tales and indicators and forward field of visionof drivers are currently in progress.
Furthermore, in Japan, considerations regarding the standardization of brake override systems, thestrengthening of anti-spinal injury measures, and anti-drunk driving measures are currently under consideration.
The guideline for improvement of vehicle safety of kindergarten school buses has been established.
Collision damage mitigating braking system standards for cargo vehicles and buses have been introduced
and the system will be required gradually to be applied to new vehicle models manufactured on and afterNovember 2014 and vehicles that continue to be manufactured on and after September 2017. Application of thisstandard to vehicles other than cargo vehicles and buses is also being considered.
U.S. Standards
The U.S. National Traffic and Motor Vehicle Safety Act of 1966, or Safety Act, requires vehicles andequipment sold in the United States to meet various safety standards issued by the NHTSA. The Safety Act also
authorizes the NHTSA to investigate complaints relating to vehicle safety and to order manufacturers to recall
and repair vehicles found to have safety-related defects. The cost of these recalls can be substantial depending on
the nature of the repair and the number of vehicles affected.
The Transportation Recall Enhancement, Accountability and Documentation Act was enacted in the UnitedStates on November 1, 2000. This Act required the NHTSA to regulate the dynamic rollover standards and to
upgrade federal motor vehicle safety standards relating to tires. It also required the NHTSA to enhance its
authority to gather information potentially relating to motor vehicle defects. This Act substantially increases the
maximum civil penalties for violation of regulatory requirements and specifies possible criminal penalties forviolations of the federal Fraud and False Statements Act. In 2003, the NHTSA expanded its New Car Assessment
Program (“NCAP”) to implement consumer information programs for vehicle rollover resistance and child
restraints and, beginning in 2003, adopted extensive early warning defect reporting requirements. Regulations
regarding tire-pressure monitoring systems were strengthened in 2005.
38

Legislation on a transportation budget plan promoting a safe and efficient vehicle safety program fordrivers, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users(SAFETEA-LU) was passed in August 2005. The legislation requires the NHTSA to propose and issue safety
standards to reduce rollover accidents, to complete the creation of standards for the reduction of vehicle
passengers released from cars at the time of rollover accidents, to upgrade door lock standards, to complete theupgrade of roof crash standards, to decide on the side impact protection standards for passengers in all seat
locations, to review seat belt wearing technology and complete a study that includes a proposal for improving therate of seat belt usage, to establish standards to display NCAP ratings on new car labels, and to complete theupgrade of the standard for power windows that will require pulling up switches. Some actions have already beentaken and completed in response to the above requirements.
In February 2008, legislation to prevent non-traffic related injuries to young children caused by vehicles, the“Cameron Gulbransen Kids Transportation Safety Act,” was passed. The legislation requires the NHTSA to,among others, begin drafting standards for rearward visibility to prevent children from being struck by backing
vehicles and to finalize such standards (the standards have not yet been completed) and to mandate the use of
brake shift interlock systems, which were initially a voluntary regulation, from September 1, 2010.
In January 2011, legislation to improve the safety of the visually impaired and other pedestrians, the“Pedestrian Safety Enhancement Act of 2010,” was passed. The legislation requires the NHTSA to draft andfinalize standards for warning sounds of electric and hybrid vehicles. The NHTSA formally proposed minimum
sound standards in January 2013, and the standards are currently in the regulatory review process.
In response to the unintended acceleration issue in 2010, the NHTSA has started to examine measures tostrengthen safety standards, such as mandating brake override systems, mandating Event Data Recorders, or
EDR, and standardizing push-start switches.
Toyota actively invests in technology development designed to increase the safety of its vehicles. Toyota isdeveloping technologies to increase the availability of existing safety systems to all types of its vehicles. These
technologies include supplemental restraint system (“SRS”) airbags, anti-lock braking systems, side airbags,
curtain shield airbags, vehicle stability control and other safety features.
European Regulations
In Europe, following the White Paper “European Transport Policy for 2010: Time to Decide” adopted in
2001, which targets halving the number of deaths caused by road accidents by 2010, various groups in different
fields have conducted research and analyses.
The European Commission and the ACEA have established CARS 21, a High Level Group that aims tostrengthen the competitiveness of the European automotive industry, and examined the recommendations withthe legal framework of a decade later in mind. The CARS 21 final report issued at the end of 2005 contains
recommendations relating to the simplification of legislation and road safety, among other issues, and indicates a
Ten Year Roadmap, and in February 2007, the European Commission issued a communication regarding the
CARS 21 final report, in which concrete action plans for future legislation were announced, and much legislation
had proceeded.
In 2009, based on the CARS 21 final report released in February 2007, the European Commission enacted a
new regulation and established a simplified framework, repealing more than 50 existing European Commission
directives regarding vehicle safety other than pedestrian protection, and replacing them with a single regulation
aimed at incorporating the United Nations Regulations. The new regulation also requires the adoption ofadvanced safety systems. The EU Regulation commenced in 2012 and it requires advanced safety systems,
including requiring new type vehicle to have electronic stability control systems from 2011, to introduce
regulations relating to low rolling resistance tires in 2013, to require tire pressure monitoring systems starting in2012 and to require heavy vehicles to have advanced emergency braking systems and lane departure warning
39

systems from 2013. All of the technical requirements for these advanced safety systems were discussed in the
United Nations (the technical requirements for advanced emergency braking in medium-duty passenger vehicles
are under consideration by the United Nations). Further, application of the UN regulations came into force from
November 2012 for new vehicle types and from 2014 for all new vehicles sold in the EU market. The newmandatory measures include electric car safety requirements and gear shift indicators.
In October 2010, CARS 21 was resumed in order to proceed with the realization of the “2020 Strategy” by
the European Commission that aims for high-level, sustainable and comprehensive growth, and the CARS 21
final report was issued in June 2012. The final report addresses issues facing the widespread adoption of electricvehicles, including charging infrastructure in the EU, establishing battery requirements, adopting seat belt
reminder devices for all seats, alcohol interlock devices, adopting speed management devices, establishing safety
requirements for micro urban mobility, strengthening safety regulation to protect the vulnerable from collisions
and the possibility of regulation in connection with preventative safety technology. In November 2012,“CARS 2020: Action Plan for a competitive and sustainable automotive industry in Europe” was issued based on
the final report. The action plan issued in November 2012 is built on four core concepts, and within theseconcepts it discusses enhancement of road safety, improving the market conditions within the EU and theimplementation of smart regulations. Each item is given a target date and is to be monitored going forward.
On the widespread adoption of emergency call systems (“eCall”), the European Commission concluded thata legislative approach is effective as a result of the impact assessment by the Commission in 2011. Accordingly,
eCall is expected to become mandatory for light-duty passenger vehicles and light-duty commercial vehicles
using the framework of “Whole Vehicle Type Approval.” In the event the installation of eCall becomesmandatory, it will be necessary at the same time to build infrastructure such as communication bases in different
countries, and rulemaking regarding eCall is expected to also cover the creation of such infrastructure.
The possibility of regulation in connection with ITS and other advanced driver assist systems for 2020 andbeyond is also under consideration. In addition, the adoption of advanced emergency breaking systems and lane
departure warning systems on light vehicles, advanced emergency braking systems which detect pedestrians, andthe adoption of blind spot monitors, reverse system which detect pedestrians, reverse cameras and Evert Data
Recorders on trucks are also expected to be considered.
From April 2009, the applicable scope for “Whole Vehicle Type Approval” was extended to cover all
vehicle categories, and are being phased in over five years depending on vehicle category. Furthermore, anamendment was issued in 2011 which clarifies the categories (especially those for passenger and light-duty
commercial vehicles). Through this amendment, the criteria for light-duty commercial vehicles was clarified, andthere is a possibility that vehicles currently classified as light-duty commercial vehicles become classified as
passenger vehicles. In addition, revisions to EU regulations related to vehicle mass and dimensions were issued
in 2012. These revisions clarified the mass, criteria and definitions which comprise the base specifications forvehicles.
United Nations Regulations
The 1958 Agreement: While originally based on the European regulations, the UN regulations aredeveloping as an established international law, and Japan, Thailand, Malaysia and Egypt as well as othercountries outside the EU have become members after the amendment in 1995, and many other countries are
expected to join in the future. The countries bound by the 1958 Agreement have incorporated the UN regulations
into their own domestic policies (The EU and Japan have directly included the UN regulations into their domestic
legislations). While automotive parts and vehicle systems are regulated by the UN regulations, there are currently
no regulations with respect to “International Whole Vehicle Type Approval” such as those in Europe. Japanproposed legislation establishing “Whole Vehicle Type Approval” under the United Nations in 2016, and thematter is currently being deliberated by the United Nations. If IWVTA (International Whole Vehicle TypeApproval) is established, integration of global administrative regulations of each country, and simplification ofregistration procedures are expected. Going forward, amendments to each UN regulation to reflect the objectivesof the establishment of IWVTA will commence.
40

Due to the EU’s incorporation of the UN safety regulations since 2012, the UN regulations are likely to befurther influenced by the EU’s needs.
1998 Agreement: As a US-led agreement, the 1998 agreement aims to harmonize the technical regulations,and defines each Regulation as a Global Technical Regulation (“GTR”). At present, there are 12 GTRs in total.
And currently, numerous provisions are under discussion in order to include more regulations. The countries
bound by the 1998 agreement are required to incorporate the GTRs into their domestic laws. The 1998 agreement
includes China and India that were not a part of the 1958 agreement, therefore, the direction taken by the GTRs
will also influence those countries.
In 2012, concrete discussions on the development of the GTRs for EVs started due to the needs in Japan, theUnited States and Europe (the implementation of new GTRs is currently under deliberation with implementation
aimed for 2014).
Chinese Standards
Vehicle safety regulations in China were drafted with reference to the UN regulations and cover the almost
same matters as the UN regulations. However, these regulations also include unique provisions which take into
account the distinctive characteristics of the Chinese market environment and the rules differ from the latest UN
regulations. As for future safety regulations, standards related to airbag technologies and electric vehicle collisionsafety equipment are currently being planned.
Standards of Other Countries
Vehicle safety regulations in Canada are similar to those in the United States. In regions outside of North
America, adoption and conformity with the UN regulations is widespread, including in those countries without
automotive manufacturing industries. The list of signatories to the 1958 agreement of the United Nations
continues to grow, and now includes Korea, Thailand and Malaysia in Asia, as well as Russia, South Africa,
Egypt and Morocco. In addition, ASEAN, pursuant to its economic community mission, has decided to adopt the
UN regulations as its regional agreement. Latin America, India and countries in the Middle East that are notsignatories to the 1958 agreement of the United Nations are also moving forward to conform their respective
regulations to the UN regulations or to adopt new regulations consistent with the UN regulations.
Environmental Matters
Japanese Standards
Toyota’s automotive operations in Japan are subject to substantial environmental regulation under laws suchas the Air Pollution Law, the Water Pollution Control Law, the Noise Regulation Law and the Vibration Control
Law. Under these laws, if a business entity establishes or alters any facility that is regulated by these laws, thebusiness entity is required to give prior notice to regulators, and if a business entity discharges, uses or stores
substances that are environmental burdens or causes noise or vibration from such facility, the business entity isalso required to comply with the applicable standards. Toyota is also subject to local regulations, which in somecases impose more stringent obligations than the Japanese central government requirements. Toyota has
complied with these regulations. Under the Waste Disposal and Public Cleaning Law, producers of industrial
waste must dispose of industrial waste in the manner prescribed in the Waste Disposal and Public Cleaning Law.
Toyota has also complied with the Waste Disposal and Public Cleaning Law.
The Soil Contamination Countermeasures Law of Japan requires that land owners conduct contamination
testing and submit a report at the time they cease to use hazardous substances, such as in connection with the saleof a former factory, or if there is a possibility of health hazards due to land contamination. If it is found that land
contamination exceeds a certain level, the relevant prefectural authority designates the area considered to becontaminated and orders the land owner to take necessary measures. Toyota is suitably managing its land in41accordance with the same law. In addition, under the Law on Recycling of End-of-Life Vehicles, vehicle
manufacturers are required to take back and recycle specified materials (automotive shredder residues, air bags
and fluorocarbons) of end-of-life vehicles and the provisions concerning such obligations of vehicle
manufacturers became effective in January 2005. Toyota has coordinated with relevant parties to establish avehicle take-back and recycle system throughout Japan. As a result, in fiscal 2013, Toyota achieved a recycling
rate of 94% for automobile shredder residue (the legal requirement being 50%) and 94% for air bags (the legal
requirement being 85%) and reached the targets set forth in this law.
U.S. Standards
Toyota’s assembly, manufacturing and other operations in the United States are subject to a wide range ofenvironmental regulation under the Clean Air Act, the Clean Water Act, the Resource Conservation andRecovery Act, the Pollution Prevention Act and the Toxic Substances Control Act. Toyota is also subject to avariety of state legislation that parallels, and in some cases imposes more stringent obligations than, federal
requirements. These federal and state regulations impose severe restrictions on air- and water-borne discharges ofpollution from Toyota facilities, the handling of hazardous materials at Toyota facilities and the disposal ofwastes from Toyota operations. Toyota is subject to many similar requirements in its operations in Europe,
Canada and other countries.
Pursuant to the Clean Air Act, the EPA has promulgated National Ambient Air Quality Standards(“NAAQS”) for six “criteria” pollutants, including for ozone and particulate matter. The Clean Air Act requiresthat the EPA review and possibly revise these NAAQS every five years. On December 14, 2012, the EPA madethe annual health-based particulate matter NAAQS more stringent, and the EPA is scheduled to complete its
review and possible revision of the ozone NAAQS in 2014. The revised annual health-based particulate matter
NAAQS, as well as any future NAAQS revisions, could lead to additional pollution control requirements on theindustry, including on Toyota’s manufacturing operations.
Toyota expects growing pressure in the next several years to further reduce emissions from motor vehicles
and manufacturing facilities.
European Standards
In October 2000, the European Union brought into effect a directive that requires member states topromulgate regulations implementing the following:•

automotive manufacturers shall bear all or a significant part of the costs for taking back end-of-life
vehicles sold after July 1, 2002 and dismantling and recycling those vehicles. Beginning January 1,
2007, this requirement became applicable to vehicles sold before July 1, 2002 as well;•automotive manufacturers may not use certain hazardous materials in vehicles sold after July 1, 2003;•

certified vehicles models sold after December 15, 2008, shall be re-usable and/or recyclable to aminimum of 85% by weight per vehicle and shall be re-usable and/or re-use as material or energy to aminimum of 95% by weight per vehicle; and•end-of-life vehicles must meet actual re-use and/or recycling of 80% and re-use and/or recovery of 85%,
respectively, of vehicle weight by 2006, rising respectively to 85% and 95% by 2015.

Laws to implement this directive came into effect in each of the European Union member states. Currently,
there are uncertainties surrounding the implementation of the applicable regulations in different European Union
member states, particularly regarding automotive manufacturer responsibilities and resultant expenses that may
be incurred.
In addition, under this directive, the member states must take measures to ensure that car manufacturers,
distributors and other auto-related economic operators establish adequate used vehicle collection and treatment42

facilities and to ensure that hazardous materials and recyclable parts are removed from vehicles prior toshredding. This directive impacts Toyota’s vehicles sold in the European Union. Toyota accommodated inoffering its products, any measures the European Union member states will choose to take in order to comply
with this directive.
Based on the legislation that has been enacted to date, Toyota has provided for its estimated liability related
to covered vehicles in existence as of March 31, 2013. The amount of estimated liability may change depending
on future legislation to be enacted and subject to other circumstances. Although Toyota does not expect its
compliance with the directive to result in significant cash expenditures, Toyota is continuing to assess the impactof this future legislation on its financial position, results of operations and cash flows.
The European Union has also issued directives and made proposals relating to the following subjects onenvironmental matters:•

emission standards that include a framework permitting member states to introduce fiscal incentives topromote early compliance; and•reform of rules governing automotive distribution and service. The block exemption on distribution has
been amended so that dealers may engage in cross-border sales actively within the European Union andopen additional facilities for sales and services. Additionally, dealers may no longer be required bymanufacturers to operate both sales and service facilities side by side.

Toyota believes that its operations are materially in compliance with environmental regulatory requirements
concerning its facilities and products in each of the markets in which it operates. Toyota continuously monitorsthese requirements and takes necessary operational measures to ensure that it remains in material compliancewith all of these requirements.
Toyota believes that environmental regulatory requirements have not had a material adverse effect on its
operations. However, compliance with environmental regulations and standards has increased costs and is
expected to lead to higher costs in the future. Therefore, Toyota recognizes that effective environmental costmanagement will become increasingly important. Moreover, innovation and leadership in the area ofenvironmental protection are becoming increasingly important to remain competitive in the market. As a result,
Toyota has proceeded with the development and production of environmentally friendly technologies, such as
hybrid vehicles, fuel-cell vehicles and high fuel efficiency, low emission engines.
In addressing environmental issues, based on an assessment of the environmental impact of its products
through their life cycles, Toyota, as a manufacturer, strives to take all possible measures in each life stage of a
product, from development through production and sales, and continues to work toward technologicalinnovations to make efficient use of resources and to reduce the burden on the environment.
Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934
Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the
Securities Exchange Act of 1934, as amended. Section 13(r) requires an issuer to disclose in its annual orquarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities,
transactions or dealings relating to Iran or with designated natural persons or entities involved in terrorism or the
proliferation of weapons of mass destruction. Pursuant to Section 13(r), Toyota is disclosing the following
information.
During the fiscal year ended March 31, 2013:•

P.T. Toyota-Astra Motor (“TAM”), an Indonesian company, sold three Toyota vehicles to the Iranianembassy in Indonesia. P.T. Toyota Motor Manufacturing Indonesia, an Indonesian company andsubsidiary of Toyota, manufactured and sold the vehicles to TAM. TAM is the sole distributor of43

Toyota vehicles in Indonesia. As of March 31, 2013, Toyota held 49 percent of the shares of common
stock of TAM, and PT Astra International Tbk, an Indonesian company, held the remaining 51 percentof the shares of common stock of TAM.
•

Tokyo Toyota Motor Co., Ltd., a wholly-owned indirect subsidiary of Toyota, performed maintenanceservices for Toyota vehicles owned by the Iranian embassy in Japan.

•

Toyota Tourist International, Inc., a majority-owned subsidiary of Toyota, obtained two visas from the
Iranian embassy in Japan in connection with certain travel arrangements.

Altogether, the above activities contributed approximately ¥4 million in gross revenues to Toyota and net
profit was substantially less. Toyota believes that none of the above transactions subject it or its affiliates to
U.S. sanctions. At this time, there has been no determination as to whether TAM, Tokyo Toyota Motor or Toyota
Tourist International will cease conducting the activities described above.
Research and Development
Toyota’s research and development activities focus on the environment and energy, safety, IT/ITS
technology and product development. For a detailed discussion of the company’s research and development
policies for the last three years, see “Operating and Financial Review and Prospects — Research andDevelopment, Patents and Licenses”.
The following table provides information for Toyota’s principal research and development facilities.
FacilityJapan
Toyota Technical Center . . . . . . . . . . . . . . . .
Tokyo Design Research & Laboratory . . . . .
Higashi-Fuji Technical Center . . . . . . . . . . .
Shibetsu Proving Ground . . . . . . . . . . . . . . .
Tokyo Development Center . . . . . . . . . . . . .
United States
Toyota Motor Engineering andManufacturing North America, Inc. . . . . .
Calty Design Research, Inc. . . . . . . . . . . . . .
Toyota Research Institute of North America(“TRI-NA”) . . . . . . . . . . . . . . . . . . . . . . . .
EuropeToyota Motor Europe NV/SA . . . . . . . . . . . .
Toyota Europe Design Development
S.A.R.L. . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota Motorsport GmbH . . . . . . . . . . . . . .
Asia PacificToyota Motor Asia Pacific Engineering andManufacturing Co., Ltd. . . . . . . . . . . . . . .
Toyota Technical Center Asia Pacific
Australia Pty, Ltd. . . . . . . . . . . . . . . . . . . .
China
Toyota Motor Engineering andManufacturing (China) Co., Ltd. . . . . . . .

Principal Activity

Product planning, style, design and evaluation
Research of advanced styling designs
Advanced research and development
Vehicle testing and evaluation
Advanced development of electronics
North American production and product planning,
upper body planning, evaluation
DesignAdvanced research relating to “energy and environment”,“safety” and “mobility infrastructure”
Upper body planning for European production, advanced
research
DesignDevelopment of motor sports vehicles
Production, planning and evaluation of vehicles that are
produced in Australia and Asia
Production, planning and evaluation of vehicles that are
produced in Australia and Asia
Research of new, low-energy vehicle technology, vehicle
evaluation and quality assurance in China
44

The success of Toyota’s research and development activities is a key element of Toyota’s strategy. The
effectiveness of Toyota’s research and development activities is subject to a number of factors, some of which
are not in Toyota’s control. These factors include the introduction of innovations by Toyota’s competitors that
may reduce the value of Toyota’s initiatives and Toyota’s ability to convert its research and development into
commercially successful technologies and products.
Components and Parts, Raw Materials and Sources of Supply
Toyota purchases parts, components, raw materials, equipment and other supplies from multiple competing
suppliers located around the world. Toyota works closely with its suppliers to pursue the most optimalpurchasing possible. Toyota believes that this policy encourages technological innovation, cost reduction andother measures to strengthen its vehicle competitiveness. No single supplier accounted for more than 5% of
Toyota’s consolidated purchases of raw materials, parts and equipment during fiscal 2013, except for Denso
Corporation, an affiliated company of Toyota, which supplied approximately 10% of Toyota’s purchases during
fiscal 2013. Toyota plans to continue purchases based on the same principle and does not anticipate any difficultyin obtaining stable supplies in the foreseeable future.
Because Toyota had more than 52 overseas operations in 27 countries and regions as of December 31, 2012,procurement of parts and components is being carried out not only locally in the country of the production site
but also from third countries, and the distribution network has become increasingly more complex. In order torealize timely and efficient distribution at the same time as keeping total costs at a minimum, Toyota is
promoting efforts to optimize each stage of the supply-chain. To this end, Toyota has developed a standardized
system of global distribution and is supporting the operation of the system at each production base. The use of
the global distribution system aims at implementing parts procurement that meets changes in vehicle production
in a timely manner. These varying efforts, combined together, have led to maximized customer satisfaction, as
well as to building a good working relationship with Toyota’s suppliers.
Toyota has placed ongoing efforts into other methods for pursuing the commoditization of components andparts used in various vehicle models. This includes minimizing the differences between models and reducing thenumber of parts used for each model. Toyota uses a shared global database in order to purchase parts andmaterials from the most competitive suppliers among Toyota factories located in various areas worldwide. By
doing so, Toyota aims to boost the efficiency of its sourcing from external suppliers. In addition, Toyota has beenworking on a cost reduction measure referred to as RR-CI activities. RR-CI activities aim to improve competitive
power through thorough localization, sharing parts and components, and manufacturing reforms together withproducing products matching customers’ needs in each region and vehicle category. Urgent VA (value analysis)
Activities that began in fiscal 2008 implements cost reductions as part of a unified effort with suppliers for thevarious types of vehicles already on sale. Toyota has constantly been working on All-Toyota VA Activities since
the beginning of fiscal 2010. In addition, Toyota has been working on sweeping advances in product appeal bysharing more parts and components, and cost reductions by activities related to the TNGA.
There were some declines in market prices of raw materials such as steel in fiscal 2013, but the direction ofprices is still unforeseeable. Toyota is continually promoting cost reduction efforts, such as reducing the amountof raw materials it uses.
Toyota’s ability to continue to obtain supplies in an efficient manner is subject to a number of factors, someof which are not in Toyota’s control. These factors include the ability of its suppliers to provide a continued
source of supplies and the effect on Toyota of competition by other users in obtaining the supplies.
Intellectual Property
Toyota holds numerous Japanese and foreign patents, trademarks, design patents and some utility model
registrations. It also has a number of applications pending for Japanese and foreign patents. While Toyota
45considers all of its intellectual property to be important, it does not consider any one or group of patents,
trademarks, design patents or utility model registrations to be so important that their expiration or termination
would materially affect Toyota’s business.
Capital Expenditures and Divestitures
Set forth below is a chart of Toyota’s principal capital expenditures between April 1, 2010 and March 31,
2013, the approximate total costs of such activity, as well as the location and method of financing of suchactivity, presented on a “by subsidiary” basis and as reported in Toyota’s annual Japanese securities report filedwith the director of the Kanto Local Finance Bureau.
Description of Activity

Japan
Investment primarily in technology and products by
Toyota Motor Corporation . . . . . . . . . . . . . . . . . . . . . . .

Investment primarily in technology and products byHino Motors, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment primarily in technology and products by
Toyota Auto Body Co., Ltd. . . . . . . . . . . . . . . . . . . . . . .
Investment primarily in technology and products by
Daihatsu Motor Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . .
Outside of Japan
Investment primarily to promote localization by
Toyota Motor Manufacturing Canada Inc. . . . . . . . . . . .
Investment primarily to promote localization by
Toyota Kirloskar Motor Private Ltd. . . . . . . . . . . . . . . .
Investment primarily to promote localization by
Toyota do Brasil Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment primarily to promote localization by
Toyota Motor Thailand Co., Ltd. . . . . . . . . . . . . . . . . . .
Investment primarily to promote localization by
Toyota Motor Manufacturing, Kentucky, Inc. . . . . . . . .
Investment primarily to promote localization by
Toyota Motor Manufacturing, Mississippi, Inc. . . . . . . .
Investment primarily to promote localization by
P.T. Astra Daihatsu Motor . . . . . . . . . . . . . . . . . . . . . . .
Investment primarily to promote localization by
P.T. Toyota Motor Manufacturing Indonesia . . . . . . . . .
Investment primarily to promote localization by
Toyota Motor Corporation Australia Ltd. . . . . . . . . . . .
Investment primarily to promote localization by
Toyota Motor Europe NV/SA . . . . . . . . . . . . . . . . . . . .
Investment primarily in leased automobiles by
Toyota Motor Credit Corporation . . . . . . . . . . . . . . . . .

46

Primary
Method ofFinancing

Total Cost
(Yen in billions)

Location¥ 515.8

Japan

Internal funds,
financingfrom issuanceof bonds, etc.

76.0

Japan

Internal funds

47.5

Japan

Internal funds

39.6

Japan

Internal funds

77.6

CanadaInternal funds

69.2

India

Internal funds

67.7

BrazilInternal funds

67.3

ThailandInternal funds

66.8

United States

Internal funds

58.5

United States

Internal funds

57.5

Indonesia

Internal funds

48.2

Indonesia

Internal funds

46.6

Australia

Internal funds

46.5

BelgiumInternal funds

2,490.8

United States

Internal funds,
financingfrom issuanceof bonds, etc.

Set forth below is information with respect to Toyota’s material plans to construct, expand or improve its
facilities between April 2013 and March 2014, presented on a “by subsidiary” basis and as reported in Toyota’s
annual Japanese securities report filed with the director of the Kanto Local Finance Bureau.

Description of Activity

Japan
Investment primarily in manufacturing facilities by
Toyota Motor Corporation . . . . . . . . . . . . . . . . . . . . . . . . . .

Investment primarily in manufacturing facilities byHino Motors, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment primarily in manufacturing facilities by
Daihatsu Motor Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Outside of Japan
Investment primarily in manufacturing facilities by
Toyota Motor Thailand Co., Ltd. . . . . . . . . . . . . . . . . . . . . .
Investment primarily in manufacturing facilities by
Toyota Motor Manufacturing, Indiana, Inc. . . . . . . . . . . . . .
Investment primarily in manufacturing facilities by
Toyota do Brasil Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Primary
Method ofFinancing

Total Cost
(Yen in billions)

Location¥210.0Japan

Internal funds,
financingfrom issuanceof bonds, etc.

37.5

Japan

Internal funds

35.0

Japan

Internal funds

46.0

ThailandInternal funds

34.6
24.5

Unites States Internal funds
BrazilInternal funds

Set forth below is additional information with respect to Toyota’s material plans to construct, expand or
improve its facilities, presented on a “by facility” basis.
Tohoku Region Plant. In April 2008, Toyota decided to build an engine plant in Kurokawa, Miyagi
Prefecture, Japan. However, while the commencement of production at this plant, which was initially expected tooccur at the end of 2010, was postponed, Toyota Motor Tohoku Corporation (“Toyota Tohoku”) commenced
assembly of small-size engines from the end of 2012. Toyota Tohoku merged with Kanto Auto Works, Ltd. andCentral Motor Co., Ltd. in July 2012 and became Toyota Motor East Japan, Inc.
Sorocaba Plant. In August 2010, Toyota decided to construct a vehicle plant in Sorocaba, Brazil. This plantis producing the Etios small vehicle introduced in India with an annual production capacity of 70 thousand units.
The plant commenced production in September 2012.
Karawang No. 2 Plant. In November 2011, Toyota decided to establish a vehicle plant in Karawang, West
Java, Indonesia. Production at the facility commenced in March 2013. Production capacity at the time of launchof the plant was 70 thousand units, and is expected to increase to 120 thousand units by the beginning of 2014.
The plant is also expected to produce new vehicles that meet market demand.
Toyota does not collect information on the amount of expenditures already paid for each plant underconstruction because Toyota believes that it is difficult and it would require unreasonable effort or expense to
identify and categorize each expenditure item with reasonable accuracy as past and future expenditures. Toyota’s
construction projects consist of numerous expenditures, each of which is continually being adjusted and incurredin variable and constantly changing amounts as part of the overall work-in-progress.

47

Seasonality
Toyota has historically experienced slight seasonal fluctuations in unit sales. For each of the past three fiscal
years, Toyota’s unit sales levels have been highest in March, with approximately 10% to 12% of annual unit
sales generated during that month, and for each of the remaining months, its unit sales have generated
approximately 6% to 9% of its annual unit sales.
Legal Proceedings
Product Recalls
From time-to-time, Toyota issues vehicle recalls and takes other safety measures including safety campaigns
relating to 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 recalledin North America, Europe, China and other regions 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 vehicle models including the Prius. Set forth below is a
description of various claims, lawsuits and government investigations involving Toyota in the United States
relating to these recalls and other safety measures.
Class Action and Consolidated Litigation
Approximately 200 putative class actions and more than 500 individual product liability personal injury
cases have been filed since November 2009 alleging that certain Toyota, Lexus and Scion vehicles containdefects that lead to unintended acceleration. In April 2010, the approximately 190 putative class actions infederal court as well as the federal product liability personal injury cases and warranty and lemon law cases wereconsolidated for pretrial proceedings into a single multi-district litigation in the United States District Court for
the Central District of California. Approximately 10 putative class actions and various product liability personal
injury cases pending in state courts were subsequently consolidated into the federal action. The remaining classactions lawsuits are pending in a consolidated state action in California.
In December 2012, Toyota and the plaintiffs announced that they had reached an agreement to settle theeconomic loss claims in the consolidated federal action. The court preliminarily approved the agreement and held
the final approval hearing in June 2013. The court took the matter under submission and scheduled a hearing inJuly 2013 for the presentation of additional information. In fiscal 2013, Toyota recorded a $1.1 billion pre-tax
charge against earnings to cover the estimated costs of this resolution and other potential recall-related
resolutions, including the resolution of the civil litigation filed by the Orange County District Attorney and thestate attorneys general’s investigation discussed below.
The settlement provides a customer support program covering certain vehicle parts, the free installation of a brakeoverride system on the remaining floor mat entrapment safety campaign vehicles and funds for cash payments tocustomers who do not receive the brake override system, cash payments to individuals who allegedly suffered a loss on
the sale, lease or insuring the residual value of Toyota’s vehicles and funds for safety-related research and education
programs. The settlement does not cover product liability personal injury claims in the consolidated federal action or
pending in various state courts in the United States.
In April 2013, Toyota announced that the court had approved an agreement to resolve the civil action filedby the Orange County District Attorney in California state court seeking, among other things, statutory penalties
alleging that Toyota sold and marketed defective vehicles in violation of various California statutes. The amountof the settlement, which was not material to Toyota, was included in the charge taken in fiscal 2013.
Beginning in February 2010, Toyota was sued in approximately 20 putative class actions alleging defects inthe antilock braking system in various hybrid vehicles that cause the vehicles to fail to stop in a timely manner
when driving in certain road conditions. The plaintiffs seek an order requiring Toyota to repair the vehicles and48

claim that all owners and lessees of vehicles, including those for which recalls have been implemented, should becompensated for the alleged defects related to the antilock braking system. These cases have been consolidated
into two actions, one in the United States District Court for the Central District of California and one in the Los
Angeles County Superior Court. In January 2013, the Court in the federal case issued an order denying theplaintiff’s motion for class certification and granting summary judgment in favor of Toyota on the claims of theprincipal named plaintiff for the cases relating to recalled vehicles. A class certification hearing in connection
with the claims related to those vehicles that were not recalled is scheduled in July 2013.
From February through March 2010, Toyota was sued in 6 putative shareholder class actions on behalf ofinvestors in Toyota American Depositary Receipts (“ADRs”) and common stock. The cases alleged violations of
the Securities Exchange Act of 1934 and Japan’s Financial Instruments and Exchange Act and were consolidated
into a single action in the United States District Court for the Central District of California. The judge dismissedwith prejudice the claims based on Japan’s Financial Instruments and Exchange Act, and Toyota reached anagreement to resolve the claims asserted on behalf of purchasers of Toyota’s ADRs for an amount not material to
Toyota. The court approved the settlement in March 2013.
While Toyota has resolved or is attempting to resolve many of these matters, Toyota believes that it has
meritorious defenses to all of them and will vigorously defend those matters not resolved.
Government Investigations
In February 2010, Toyota received a subpoena from the U.S. Attorney for the Southern District of New
York and a voluntary request and subpoena from the U.S. Securities and Exchange Commission (“SEC”). The
subpoenas and the voluntary request primarily seek documents related to unintended acceleration and certain
financial records. This is a coordinated investigation and has included interviews of Toyota and non-Toyota
witnesses, as well as production of documents. In June 2010, Toyota received a second voluntary request andsubpoena from the SEC and a subpoena from the U.S. Attorney for the Southern District of New York seeking
production of documents related to the recalls of the steering relay rod. Toyota is cooperating with the
U.S. Attorney’s Office and SEC in their investigations, which are on-going.
In June 2012, Toyota announced an amendment to the 2009 floor mat entrapment safety campaign toinclude model year 2010 RX350 and RX450h. Toyota submitted additional documents related to this amendment
pursuant to NHTSA’s request. In October 2012, Toyota filed an additional amendment to include model year
2008 through 2011 Land Cruiser. In December 2012, Toyota announced an agreement with NHTSA to resolve
timeliness claims related to the model year 2010 RX350 and RX450h safety campaign under which Toyota
agreed to make a $17.4 million payment to the U.S. Treasury.
Toyota also received subpoenas and formal and informal requests from various states’ attorneys general,
including the Executive Committee for a group of 30 states’ plus one territory’s attorney general, and certain
local governmental agencies regarding various recalls, the facts underlying those recalls and customer handling
related to those recalls. In February 2013, Toyota and the attorneys general resolved these investigations for an
amount not material to Toyota. Such amount was included in the charge taken in fiscal 2013. In connection withthis settlement, Toyota also made commitments to continue to conduct certain activities it is already undertaking.
Beyond the amounts accrued for the recall-related matters, Toyota is unable to estimate a range ofreasonably possible loss, if any, for the other recall-related matters because (i) many of the proceedings are inevidence gathering stages, (ii) significant factual issues need to be resolved, (iii) the legal theory or nature of theclaims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of othermatters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Although
Toyota cannot estimate a reasonable range of loss based on currently available information, the resolution ofthese matters could have an adverse effect on Toyota’s financial position, results of operations or cash flows.

49Other Proceedings
Toyota has various other legal actions, other governmental proceedings and other claims pending against it,
including other product liability claims in the United States. For the same reasons discussed above relating to therecall-related legal proceedings, Toyota is unable to estimate a range of reasonably possible loss, if any, beyond
the amounts accrued, with respect to these claims. Based upon information currently available to Toyota,
however, Toyota believes that its losses from these matters, if any, would not have a material adverse effect on
Toyota’s financial position, results of operations or cash flows.
4.C ORGANIZATIONAL STRUCTURE
As of March 31, 2013, Toyota Motor Corporation had 257 Japanese subsidiaries and 252 overseas
subsidiaries. The following table sets forth for each of Toyota Motor Corporation’s principal subsidiaries, thecountry of incorporation and the percentage ownership interest and the voting interest held by Toyota Motor
Corporation.
Country ofIncorporation

Percentage
Ownership
Interest

Percentage
VotingInterest

Toyota Financial Services Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JapanHino Motors, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan
Toyota Motor Kyushu, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JapanDaihatsu Motor Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan
Toyota Finance Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan
Toyota Auto Body Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan
Toyota Motor East Japan, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan
Toyota Motor Engineering & Manufacturing North America, Inc. . . . . . . United States
Toyota Motor Manufacturing, Kentucky, Inc. . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor North America, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor Credit Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor Manufacturing, Indiana, Inc. . . . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor Manufacturing, Texas, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor Sales, U.S.A., Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United States
Toyota Motor Manufacturing Canada Inc. . . . . . . . . . . . . . . . . . . . . . . . . .
CanadaToyota Credit Canada Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CanadaToyota Motor Europe NV/SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Belgium
Toyota Kreditbank GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany
Toyota Motor Finance (Netherlands) B.V. . . . . . . . . . . . . . . . . . . . . . . . . . Netherlands
OOO “TOYOTA MOTOR” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RussiaToyota Motor (China) Investment Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . .
China
Toyota Motor Finance (China) Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .
China
Toyota Kirloskar Motor Private Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
India
P.T. Toyota Motor Manufacturing Indonesia . . . . . . . . . . . . . . . . . . . . . . . Indonesia
Toyota Motor Asia Pacific Pte Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Singapore
Kuozui Motors, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TaiwanToyota Leasing (Thailand) Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thailand
Toyota Motor Thailand Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thailand
Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. . . . . Thailand
Toyota Motor Corporation Australia Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . Australia
Toyota Finance Australia Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Australia
Toyota Argentina S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina
Toyota do Brasil Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BrazilToyota South Africa Motors (Pty) Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa

100.0050.21
100.0051.33
100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.0089.00
95.00
100.00
70.00
86.39
86.43
100.00100.00100.00100.00100.00100.00100.0050.62
100.0051.64
100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00100.0089.00
95.00
100.00
70.00
86.39
86.43
100.00100.00100.00100.00100.00100.00Name of Subsidiary50

4.D PROPERTY, PLANTS AND EQUIPMENT
As of December 31, 2012, Toyota and its affiliated companies produce automobiles and related components
through more than 52 overseas manufacturing organizations in 27 countries and regions besides Japan. The
facilities are located principally in Japan, the United States, Canada, the United Kingdom, France, Turkey,
Thailand, China, Taiwan, India, Indonesia, South Africa, Australia, Argentina and Brazil.
In addition to its manufacturing facilities, Toyota’s properties include sales offices and other sales facilities
in major cities, repair service facilities, and research and development facilities.
The following table sets forth information, as of March 31, 2013, with respect to Toyota’s principal
facilities and organizations, all of which are owned by Toyota Motor Corporation or its subsidiaries. However,small portions, all under approximately 20%, of some facilities are on leased premises.

Facility or Subsidiary NameLand Area(thousandsquareNumber ofmeters) Employees

Location

Principal
Products orFunctionsJapan (Toyota Motor Corporation)
Tahara Plant . . . . . . . . . . . . . . . . . . . . . Tahara City, Aichi Pref.
Higashi-Fuji Technical Center . . . . . . . Susono City, Shizuoka Pref.

4,029
2,066

7,821
2,839

Automobiles
Research andDevelopment

Toyota Head Office and TechnicalCenter . . . . . . . . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.

1,930

21,193

Motomachi Plant . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.
Takaoka Plant . . . . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.
Tsutsumi Plant . . . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.
Kamigo Plant . . . . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.
Kinu-ura Plant . . . . . . . . . . . . . . . . . . . Hekinan City, Aichi Pref.
Honsha Plant . . . . . . . . . . . . . . . . . . . . . Toyota City, Aichi Pref.
Nagoya Office . . . . . . . . . . . . . . . . . . . Nagoya City, Aichi Pref.

1,594
1,311
937
868
836
551
3

7,625
3,293
5,045
3,034
3,062
1,776
2,267

Research andDevelopment
Automobiles
Automobiles
Automobiles
Automobile parts
Automobile parts
Automobile parts
Office

8,401
5,444
2,616

11,217
11,476
7,404

Automobiles
Automobiles
Automobiles

2,255
1,988

11,708
7,124

Automobiles
Automobiles

6,237

5,279

Automobiles

4,756
4,300
3,786

6,171
9,122
6,513

Automobiles
Automobiles
Sales facilities

1,338

3,828

Automobiles

Japan (Subsidiaries)
Daihatsu Motor Co., Ltd. . . . . . . . . . . . Ikeda City, Osaka, etc.
Hino Motors, Ltd. . . . . . . . . . . . . . . . . . Hino City, Tokyo, etc.
Toyota Motor East Japan, Inc. . . . . . . . Kurokawa-gun, Miyagi Pref.,etc.
Toyota Auto Body Co., Ltd. . . . . . . . . . Kariya City, Aichi Pref., etc.
Toyota Motor Kyushu, Inc. . . . . . . . . . Miyawaka City, Fukuoka Pref.,etc.
Outside Japan (Subsidiaries)
Toyota do Brasil Ltda. . . . . . . . . . . . . . Sao Paulo, Brazil
Toyota Motor Manufacturing Canada,Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . Ontario, Canada
Toyota Motor Thailand Co., Ltd. . . . . . Samut Prakan, Thailand
Toyota Motor Sales, U.S.A., Inc. . . . . . California, U.S.A.
Toyota Motor Corporation Australia,
Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . Victoria, Australia

Toyota is constantly engaged in upgrading, modernizing and revamping the operations of its manufacturing
facilities, based on its assessment of market needs and prospects. To respond flexibly to fluctuations in demandin each of its production operations throughout the world, Toyota continually reviews and implements
51

appropriate production measures such as revising takt time and adjusting days of operation. As a result, Toyota
believes it would require unreasonable effort to track the exact productive capacity and the extent of utilization ofeach of its manufacturing facilities with a reasonable degree of accuracy.
As of March 31, 2013, property, plant and equipment having a net book value of approximately¥91.8 billion was pledged as collateral securing indebtedness incurred by Toyota Motor Corporation’s
consolidated subsidiaries. Toyota believes that there does not exist any material environmental issues that may
affect the company’s utilization of its assets.
Toyota considers all its principal manufacturing facilities and other significant properties to be in goodcondition and adequate to meet the needs of its operations.
See “— Business Overview — Capital Expenditures and Divestitures” for a description of Toyota’s materialplans to construct, expand or improve facilities.
ITEM 4A. UNRESOLVED STAFF COMMENTS
None.
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 inconformity 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 otheroperations. Automotive operations are Toyota’s most significant business segment, accounting for 90% of
Toyota’s total revenues before the elimination of intersegment revenues for fiscal 2013. Toyota’s primarymarkets based on vehicle unit sales for fiscal 2013 were: Japan (26%), North America (28%), Europe (9%) andAsia (19%).
Automotive Market Environment
The worldwide automotive market is highly competitive and volatile. The demand for automobiles isaffected by a number of factors including social, political and general economic conditions; introduction of newvehicles and technologies; and costs incurred by customers to purchase or operate vehicles. These factors cancause consumer demand to vary substantially in different geographic markets and for different types ofautomobiles.
For the automobile industry, markets have progressed in a steady manner, especially in the U.S. andemerging countries such as Asia. The demand for products with advanced green technology has remained strong
throughout all markets worldwide.

52

The following table sets forth Toyota’s consolidated vehicle unit sales by geographic market based on
location of customers for the past three fiscal years.

2011

Thousands of units
Year Ended March 31,
2012

2013

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

1,913
2,031
796
1,255
1,313

2,071
1,872
798
1,327
1,284

2,279
2,469
799
1,684
1,640

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

5,395

5,281

6,592

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

7,308

7,352

8,871

* “Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.
During fiscal 2013 and 2012, Toyota’s consolidated vehicle unit sales in Japan increased as compared witheach prior fiscal year, primarily as a result of the active introduction of new products and the efforts of dealers
nationwide. Toyota and Lexus brands’ market share excluding mini-vehicles was 48.4% for fiscal 2013,
representing a record high, and market share (including Daihatsu and Hino brands) including mini-vehicles
remained at a high level of 44.3% following the prior fiscal year. Overseas consolidated vehicle unit sales
decreased during fiscal 2012, whereas they increased during fiscal 2013. During fiscal 2012, total overseas
vehicle unit sales decreased, particularly in North America due to impact of the Great East Japan Earthquake andthe flood in Thailand, although an increase in Asia resulted from steady demand in spite of the flood in Thailand.
During fiscal 2013, total overseas vehicle unit sales increased in every region.
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 othermanufacturers. The timely introduction of 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,•

the adverse effect on production due to the reliance on various suppliers for the provision of supplies,•

the adverse effect on market, sales and productions of natural calamities and interruptions of social
infrastructure, and•changes in the value of the Japanese yen and other currencies in which Toyota conducts business.
53

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 toenvironmental matters, vehicle safety, fuel economy and emissions that can add significantly to the cost ofvehicles. 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.
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 more detailed 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 that can 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 or applicable tax rates. From
time-to-time when potential safety problems arise, Toyota issues vehicle recalls and takes other safety measures
including safety campaigns with respect to its vehicles. In November 2009, Toyota announced a safety campaign
in North America for certain models of Toyota and Lexus brands’ vehicles related to floor mat entrapment ofaccelerator pedals, and later expanded it to include additional models. In January 2010, Toyota announced arecall 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 tosticking accelerator pedals. In February 2010, Toyota announced a recall in markets including Japan, North
America and Europe related to the braking control system in certain vehicle 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 andgovernment investigations, see note 23 to the consolidated financial statements.
The worldwide automotive industry is in a period of global competition which may continue for theforeseeable future, and in general 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 competition of worldwide automobile financial services industry is intensifying despite the recovery
trend in the automotive markets. As competition increases, margins on financing transactions may decrease andmarket 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 network of finance subsidiaries in order to offer financial services in many
countries.
Toyota’s competitors for retail financing and retail leasing include commercial banks, credit unions andother finance companies. Meanwhile, commercial banks and other captive automobile finance companies also
compete against Toyota’s wholesale financing activities.
Toyota’s total finance receivables increased during fiscal 2013 mainly due to the favorable impact offluctuations in foreign currency translation rates and an increase in the retail receivables.

54

The following table provides information regarding Toyota’s finance receivables and operating leases in thepast two fiscal years.
Yen in millions
March 31,
2012
2013

Finance Receivables
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 7,248,793
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
955,430Wholesale and other dealer loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,033,954¥ 9,047,782
1,029,887
2,615,728

10,238,177
105,533(494,123)

12,693,397
135,398(628,340)(77,353)(30,637)(24,238)(83,858)(28,928)(26,243)(132,228)(139,029)

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

9,717,359(4,114,897)

12,061,426(5,117,660)

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

¥ 5,602,462¥ 6,943,766

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

Operating Leases
Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2,536,595 ¥ 2,999,294
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87,848104,351
Less – Deferred income and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(49,090)(65,634)
Less – Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less – Allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,575,353(667,406)(8,135)

3,038,011(749,238)(8,020)

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

¥ 1,899,812¥ 2,280,753

Toyota’s finance receivables are subject to collectability risks. These risks include consumer and dealer
insolvencies and insufficient collateral values (less costs to sell) to realize the full carrying values of thesereceivables. See discussion in “Critical Accounting Estimates — Allowance for Doubtful Accounts and Credit
Losses” and note 11 to the consolidated financial statements.
Toyota continues to originate leases to finance new Toyota vehicles. These leasing activities are subject toresidual value risk. Residual value losses could be incurred when the lessee of a vehicle does not exercise theoption to purchase the vehicle at the end of the lease term. See discussion in “Critical Accounting Estimates —Investment in Operating Leases” and note 2 to the consolidated financial statements.
Toyota enters into interest rate swap agreements and cross currency interest rate swap agreements to convert
its fixed-rate debt to variable-rate functional currency debt. A portion of the derivative instruments are enteredinto to hedge interest rate risk from an economic perspective and are not designated as a hedge of specific assets
or liabilities on Toyota’s consolidated balance sheet and accordingly, unrealized gains or losses related toderivatives that are not designated as a hedge are recognized currently in operations. See discussion in “Critical
Accounting Estimates — Derivatives and Other Contracts at Fair Value” and “Quantitative and Qualitative
Disclosures about Market Risk” and notes 20 and 26 to the consolidated financial statements.
The fluctuations in funding costs can affect the profitability of Toyota’s financial services operations.
Funding costs are affected by a number of factors, some of which are not in Toyota’s control. These factors
55

include general economic conditions, prevailing interest rates and Toyota’s financial strength. Funding costs
decreased during fiscal 2012 and 2013, mainly as a result of lower interest rates.
Toyota launched its credit card business in Japan in April 2001. As of March 31, 2012, Toyota had
10.9 million cardholders, an increase of 2.0 million cardholders compared with March 31, 2011. As of March 31,
2013, Toyota had 11.8 million cardholders, an increase of 0.9 million cardholders compared with March 31,
2012. The credit card receivables at March 31, 2012 increased by ¥44.0 billion from March 31, 2011 to¥307.5 billion. The credit card receivables at March 31, 2013 increased by ¥30.5 billion from March 31, 2012 to¥338.1 billion.
Other Business Operations
Toyota’s other business operations consist of housing including the manufacture and sale of prefabricatedhomes, information technology related businesses including information technology and telecommunications,
intelligent transport systems and GAZOO, and other businesses.
Toyota does not expect its other business operations to materially contribute to Toyota’s consolidated resultsof operations.
Currency Fluctuations
Toyota is affected by fluctuations in foreign currency exchange rates. Toyota is exposed to fluctuations in
the value of the Japanese yen against the U.S. dollar and the euro and, to a lesser extent, the Australian dollar, theRussian ruble, the Canadian dollar, the British pound, and others. Toyota’s consolidated financial statements,
which are presented in Japanese yen, are affected by foreign currency exchange fluctuations through bothtranslation risk and transaction risk.
Translation risk is the risk that Toyota’s consolidated financial statements for a particular period or for aparticular date will be affected by changes in the prevailing exchange rates of the currencies in those countries inwhich 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 thecurrency structure of sales 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 of transaction 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
2011 and 2012, Toyota produced 71.3% and 75.4% of its non-domestic sales outside Japan, respectively. In
North America, 66.8% and 75.3% of vehicles sold in calendar 2011 and 2012 respectively were produced locally.
In Europe, 57.7% and 58.5% of vehicles sold in calendar 2011 and 2012 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 26 to the consolidated financial statements
for additional information.

56

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 theJapanese yen against other currencies has the opposite effect. Although, in fiscal 2012, the Japanese yen was on
average and at the end of the fiscal year stronger against the U.S. dollar in comparison to the prior fiscal year, it
was on average and at the end of the fiscal year weaker in fiscal 2013. In fiscal 2012 and 2013, the Japanese yen
was on average stronger against the euro in comparison to fiscal 2011 and 2012, respectively. The Japanese yen
was at the end of fiscal 2012 stronger against the euro in comparison to the prior fiscal year, but was weaker atthe end of fiscal 2013 due to the depreciation of the yen in the second half of the fiscal year. See further
discussion in “Quantitative and Qualitative Disclosures about Market Risk — Market Risk Disclosures —Foreign Currency Exchange Rate Risk”.
During fiscal 2012 and 2013, the average exchange rate of the Japanese yen against the U.S. dollar and theeuro compared to the prior fiscal year has fluctuated as described above. The operating results excluding theimpact of currency fluctuations described in “Results of Operations — Fiscal 2013 Compared with Fiscal 2012”
and “Results of Operations — Fiscal 2012 Compared with Fiscal 2011” show results of net revenues obtained byapplying the Japanese yen’s average exchange rate in the previous fiscal year to the local currency-denominated
net revenues for fiscal 2012 and 2013, respectively, as if the value of the Japanese yen had remained constant forthe 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 toinvestors regarding the operating performance on a local currency basis.
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, andassesses 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, such as 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 for the major operating functions within the segment. Management assesses financial andnon-financial data such as vehicle unit sales, production volume, market share information, vehicle model plansand 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.

2011

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* “Other” consists of Central and South America, Oceania and Africa.
57

Yen in millions
Year ended March 31,
2012¥6,966,929
5,327,809
1,920,416
3,138,112
1,640,422¥7,293,804
4,644,348
1,917,408
3,116,849
1,611,244

2013¥7,910,456
6,167,821
2,003,113
4,058,629
1,924,173

Results of Operations — Fiscal 2013 Compared with Fiscal 2012
Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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 before income taxes and equity in earnings ofaffiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net margin from income before income taxes and equity
in earnings of affiliated companies . . . . . . . . . . . . . . . .
Equity in earnings of affiliated companies . . . . . . . . . . . .
Net income attributable to Toyota Motor Corporation . . .
Net margin attributable to Toyota Motor Corporation . . .

¥11,167,319 ¥12,821,018 ¥ 1,653,699
4,751,886
6,284,425
1,532,539
1,993,946
2,083,113
89,167
3,334,274
4,385,476
1,051,202
1,760,175
2,094,265
334,090(4,423,947) (5,604,105) (1,180,158)

14.8%
32.3
4.5
31.5
19.0
—

18,583,653

22,064,192

3,480,539

18.7(207,040)
186,409
17,796
256,790108,814(7,142)576,335
221,925
26,462
376,055
133,744(13,633)

783,375
35,516
8,666
119,265
24,930(6,491)

—
19.1
48.7
46.4
22.9
—

355,627
1.9%

1,320,888
6.0%

965,261271.4
4.1%

432,873

1,403,649

970,776

2.3%
197,701
283,559
1.5%

6.4%
231,519
962,163
4.4%

224.3

4.1%
33,81817.1
678,604
239.3
2.9%* “Other” consists of Central and South America, Oceania and Africa.
Net Revenues
Toyota had net revenues for fiscal 2013 of ¥22,064.1 billion, an increase of ¥3,480.5 billion, or 18.7%,
compared with the prior fiscal year. This increase reflected changes in numbers of the vehicle unit sales and sales
mix of ¥3,031.5 billion and favorable impact of fluctuations in foreign currency translation rates of¥281.8 billion. Excluding the difference in the Japanese yen value used for translation purposes of ¥281.8 billion,
net revenues would have been ¥21,782.3 billion during fiscal 2013, a 17.2% increase compared with the priorfiscal year. The automotive market in 2012 increased by 11.3% in North America and 14.3% in Asia comparedwith the prior fiscal year. In fiscal 2013, the market in the U.S. and emerging countries such as Asia developed ina steady manner. Under these automotive market conditions, Toyota’s consolidated vehicle unit sales increased
to 8,871 thousand vehicles by 20.7% compared with the prior fiscal year.

58

The table below shows Toyota’s net revenues from external customers by product category and by business.
Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥14,164,940
338,000
1,532,219
929,219¥17,446,473
356,756
1,577,690
997,843¥3,281,533
18,75645,471
68,624

23.2%
5.5
3.0
7.4

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

16,964,378
547,538

20,378,762
535,388

3,414,384(12,150)

20.1
(2.2)

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

17,511,916
1,071,737

20,914,150
1,150,042

3,402,234
78,305

19.4
7.3

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

¥18,583,653¥22,064,192¥3,480,539

18.7%

Toyota’s net revenues include net revenues from sales of products, consisting of net revenues fromautomotive operations and all other operations, which increased by 19.4% during fiscal 2013 compared with theprior fiscal year to ¥20,914.1 billion, and net revenues from financial services operations which increased by
7.3% during fiscal 2013 compared with the prior fiscal year to ¥1,150.0 billion. Excluding the difference in theJapanese yen value used for translation purposes of ¥246.0 billion, net revenues from sales of products would
have been ¥20,668.1 billion, an 18.0% increase during fiscal 2013 compared with the prior fiscal year. The
increase in net revenues from sales of products is due to an increase in Toyota vehicle unit sales by
1,519 thousand vehicles. Excluding the difference in the Japanese yen value used for translation purposes of¥35.8 billion, net revenues from financial services operations would have been ¥1,114.2 billion, a 4.0% increaseduring fiscal 2013 compared with the prior fiscal year. This increase was mainly due to an increase of¥25.8 billion rental revenue generated by vehicles and equipment on operating lease.
The following table shows the number of financing contracts by geographic region at the end of the fiscal
2013 and 2012, respectively.
Number of financing contracts in thousands
Year ended March 31,
2013 v. 2012 Change
2012
2013
Amount Percentage

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

1,697
4,535
796
649
552

1,765
4,596
825
868
618

68
61
29
219
66

4.0%
1.3
3.7
33.7
11.9

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

8,229

8,672

443

5.4%

* “Other” consists of Central and South America, Oceania and Africa.
Geographically, net revenues (before the elimination of intersegment revenues) for fiscal 2013 increased by
14.8% in Japan, 32.3% in North America, 4.5% in Europe, 31.5% in Asia, and 19.0% in Other compared with theprior fiscal year. Excluding the difference in the Japanese yen value used for translation purposes of¥281.8 billion, net revenues in fiscal 2013 would have increased by 14.8% in Japan, 26.2% in North America,
6.9% in Europe, 28.0% in Asia and 22.5% in Other compared with the prior fiscal year.

59

The following is a discussion of net revenues in each geographic market (before the elimination ofintersegment revenues).
Japan
Thousands of units
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

3,741

4,202

461

12.3%

* including number of exported vehicle unit sales
Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥11,040,964
126,355¥12,687,092
133,926¥1,646,128
7,571

14.9%
6.0

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

¥11,167,319¥12,821,018¥1,653,699

14.8%

Toyota’s domestic and exported vehicle unit sales increased by 461 thousand vehicles compared with theprior fiscal year due mainly to a recovery from the negative impact of the Great East Japan Earthquake in the firsthalf of fiscal 2012, an increase in demand by subsidies for eco-cars offered by the government and strong sales of
Aqua and other car models in fiscal 2013.
North America
Thousands of units
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

1,872

2,469

597

31.9%

Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥ 4,048,532
703,354¥ 5,564,183
720,242¥1,515,651
16,88837.4%
2.4

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

¥ 4,751,886¥ 6,284,425¥1,532,539

32.3%

In North America, the vehicle unit sales increased by 597 thousand vehicles compared with the prior fiscal
year due mainly to the market recovering in a steady manner and strong sales of Corolla, Camry and other car
models.

60

EuropeThousands of units
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

798

799

1

0.1%

Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥1,925,670
68,276¥2,007,207
75,906¥81,537
7,630

4.2%
11.2

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

¥1,993,946¥2,083,113¥89,167

4.5%

Net revenues in Europe as a whole increased due primarily to the 1 thousand vehicles increase in vehicle
unit sales compared with the prior fiscal year. The vehicle unit sales increased in Eastern Europe, especially in
Russia, although sales of Toyota brands’ vehicles decreased in Western Europe compared with the prior fiscal
year due to the European sovereign debt crisis.
Asia
Thousands of units
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

1,327

1,684

357

26.9%

Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥3,275,871
58,403¥4,307,943
77,533¥1,032,072
19,13031.5%
32.8

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

¥3,334,274¥4,385,476¥1,051,202

31.5%

Net revenues in Asia as a whole increased due primarily to the 357 thousand vehicles increase in vehicle
unit sales compared with the prior fiscal year. The vehicle unit sales increased due mainly to the expansion ofmarkets such as Thailand and Indonesia, and the recovery during fiscal 2013 from the negative impacts of theflood in Thailand in fiscal 2012.

61

OtherThousands of units
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

1,284

1,640

356

27.8%

Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥1,636,043
124,132¥1,942,215
152,050¥306,172
27,918

18.7%
22.5

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

¥1,760,175¥2,094,265¥334,090

19.0%

Net revenues in Other as a whole increased due primarily to the 356 thousand vehicles increase in vehicle
unit sales compared with the prior fiscal year. The vehicle unit sales increased due mainly to strong sales of IMV
and Land Cruiser in each region in fiscal 2013 and the recovery from the shortages of parts supplies caused by
the Great East Japan Earthquake and the flood in Thailand in fiscal 2012.
Operating Costs and Expenses
Yen in millions
Year ended March 31,
2013 v. 2012 Change
2012
2013
AmountPercentage

Operating costs and expenses
Cost of products sold . . . . . . . . . . . . . . . . . . . . . . . . . ¥15,795,918
Cost of financing operations . . . . . . . . . . . . . . . . . . .
592,646
Selling, general and administrative . . . . . . . . . . . . . .
1,839,462
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥18,228,026¥18,010,569
630,426
2,102,309¥2,214,651
37,780262,847

14.0%
6.4
14.3

¥20,743,304¥2,515,278

13.8%

Yen in millions
2013 v. 2012 Change

Changes in operating costs and expenses:
Effect of changes in vehicle unit sales and sales mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of fluctuation in foreign currency translation rates . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase in miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,360,000
270,000(450,000)
335,278

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

¥2,515,278

Operating costs and expenses increased by ¥2,515.2 billion, or 13.8%, to ¥20,743.3 billion during fiscal
2013 compared with the prior fiscal year. This increase resulted from the ¥2,360.0 billion impact of changes invehicle unit sales and sales mix, the ¥270.0 billion unfavorable impact of fluctuations in foreign currencytranslation rates and the ¥335.2 billion increase in miscellaneous costs and others, partially offset by the¥450.0 billion impact of cost reduction efforts.
The increase in miscellaneous costs and others was due mainly to the ¥90.0 billion charge for costs related
to the settlement of the economic loss claims in the consolidated federal action in the U.S., the ¥70.0 billion
increase in labor costs, the ¥50.0 billion impact of increase in product quality related expenses and62the ¥20.0 billion increase in research and development expenses. This increase in product quality related
expenses resulted from the weakening of the Japanese yen at the end of fiscal 2013 against other currencies incomparison to the prior fiscal year. See note 14 to the consolidated financial statements.
During fiscal 2013, Toyota announced recalls and other safety measures including the following:
In October 2012, Toyota announced in Japan and other regions the voluntary safety recall of certain modelsof Toyota brands’ vehicles in relation to the inspection and application of special fluorine grease to the driver’s
side Power Window Master Switch (PWMS). In November 2012, Toyota announced in Japan and other regions
the voluntary safety recall of certain models of Toyota brands’ vehicles in relation to the insufficient hardness
treatment of some intermediate extension shafts and in relation to the electric water pump for the hybrid system.
Cost Reduction Efforts
During fiscal 2013, Toyota’s continued cost reduction efforts reduced operating costs and expenses by¥450.0 billion. The amount of effect of cost reduction efforts includes the impact of fluctuation in the price ofsteel, precious metals, non-ferrous alloys including aluminum, plastic parts and other production materials andparts. In fiscal 2013, continued cost reduction efforts together with suppliers contributed to the improvement inearnings. These cost reduction efforts related to ongoing value engineering and value analysis activities, the useof common parts resulting in a reduction of part types and other manufacturing initiatives designed to reduce thecosts of vehicle production.
Cost of Products Sold
Cost of products sold increased by ¥2,214.6 billion, or 14.0%, to ¥18,010.5 billion during fiscal 2013
compared with the prior fiscal year. The increase resulted from the ¥2,124.0 billion impact of changes in vehicle
unit sales and sales mix and the ¥201.0 billion unfavorable impact of fluctuations in foreign currency translation
rates, partially offset by the ¥450.0 billion impact of cost reduction efforts.
Cost of Financing Operations
Cost of financing operations increased by ¥37.7 billion, or 6.4%, to ¥630.4 billion during fiscal 2013
compared with the prior fiscal year. The increase resulted from the ¥33.1 billion unfavorable impact offluctuations in foreign currency translation rates.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by ¥262.8 billion, or 14.3%, to ¥2,102.3 billion
during fiscal 2013 compared with the prior fiscal year. This increase reflected the ¥90.0 billion charge for costs
related to the settlement of the economic loss claims in the consolidated federal action in the U.S., the ¥43.2
billion increase in expenses for the financial services operations and the ¥35.8 billion unfavorable impact offluctuations in foreign currency translation rates.
Operating Income
Yen in millions
2013 v. 2012 Change

Changes in operating income and loss:
Effect of marketing efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of changes in exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase of miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 650,000
450,000
150,000(300,000)
15,261

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

¥ 965,261

63

Toyota’s operating income increased by ¥965.2 billion, or 271.4%, to ¥1,320.8 billion during fiscal 2013
compared with the prior fiscal year. This increase was due mainly to the ¥650.0 billion increase of marketing
efforts, the ¥450.0 billion impact of cost reduction efforts and the ¥150.0 billion favorable impact of changes inexchange rates, partially offset by the ¥300.0 billion increase in miscellaneous costs and others. The increase in
miscellaneous costs and others was due mainly to the ¥90.0 billion charge for costs related to the settlement of
the economic loss claims in the consolidated federal action in the U.S., the ¥70.0 billion increase in labor costs,
the ¥50.0 billion impact of increase in product quality related expenses and the ¥20.0 billion increase in researchand development expenses.
During fiscal 2013, operating income (before elimination of intersegment profits), increased by¥783.3 billion in Japan compared with the prior fiscal year, ¥35.5 billion, or 19.1%, in North America,¥8.6 billion, or 48.7%, in Europe, ¥119.2 billion, or 46.4%, in Asia, and ¥24.9 billion, or 22.9%, in Other.
The following is a description of operating income in each geographic market.
Japan
Yen in millions
2013 v. 2012 Change

Changes in operating income and loss:
Effect of marketing efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of changes in exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase of miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 415,000
380,000
165,000(170,000)(6,625)

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

¥ 783,375

North America
Yen in millions
2013 v. 2012 Change

Changes in operating income and loss:
Effect of marketing efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase of miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 30,000
50,000(65,000)
20,516

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

¥ 35,516

EuropeYen in millions
2013 v. 2012 Change

Changes in operating income and loss:
Effect of marketing efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase of miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64

¥

5,000
5,000
(5,000)
3,666

¥

8,666

Asia
Yen in millions
2013 v. 2012 Change

Changes in operating income and loss:
Effect of marketing efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of changes in exchange rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase of miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 135,000
15,000(10,000)(30,000)
9,265

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

¥ 119,265

Other Income and Expenses
Interest and dividend income decreased by ¥1.1 billion, or 1.2%, to ¥98.6 billion during fiscal 2013
compared with the prior fiscal year.
Interest expense was ¥22.9 billion during fiscal 2013, on the same level as that of the prior fiscal year.
Foreign exchange gain, net decreased by ¥31.5 billion, or 85.0%, to ¥5.5 billion during fiscal 2013
compared with the prior fiscal year. Foreign exchange gains and losses include the differences between the valueof foreign currency denominated assets and liabilities recognized through transactions in foreign currencies
translated at prevailing exchange rates and the value at the date the transaction settled during the fiscal year,
including those settled using forward foreign currency exchange contracts, or the value translated by appropriate
year-end current exchange rates. The ¥31.5 billion decrease in foreign exchange gain, net was due mainly to thelosses resulting from the Japanese yen being stronger against foreign currencies at the time foreign currency
bonds were redeemed during fiscal 2013 than those at the time of purchase.
Other loss, net increased by ¥38.3 billion to ¥1.5 billion during fiscal 2013 compared with the prior fiscal
year.
Income Taxes
The provision for income taxes increased by ¥289.4 billion, or 110.3%, to ¥551.6 billion during fiscal 2013
compared with the prior fiscal year due to the increase in income before income taxes. The effective tax rate forfiscal 2013 was 39.3%, which was higher than the statutory tax rate in Japan. This was due mainly to deferred tax
liabilities relating to undistributed earnings in affiliated companies accounted for by the equity method.
Net Income and Loss Attributable to Noncontrolling Interests and Equity in Earnings of Affiliated Companies
Net income attributable to noncontrolling interests increased by ¥36.5 billion, or 43.2%, to ¥121.3 billion
during fiscal 2013 compared with the prior fiscal year. This increase was due mainly to an increase during fiscal
2013 in net income attributable to the shareholders of consolidated subsidiaries.
Equity in earnings of affiliated companies during fiscal 2013 increased by ¥33.8 billion, or 17.1%, to¥231.5 billion compared with the prior fiscal year. This increase was due mainly to an increase during fiscal 2013in net income attributable to the shareholders of affiliated companies accounted for by the equity method.
Net Income Attributable to Toyota Motor Corporation
Net income attributable to the shareholders of Toyota Motor Corporation increased by ¥678.6 billion, or
239.3%, to ¥962.1 billion during fiscal 2013 compared with the prior fiscal year.
65Other Comprehensive Income and Loss
Other comprehensive income increased by ¥856.8 billion to ¥822.7 billion for fiscal 2013 compared withthe prior fiscal year. This increase resulted from favorable foreign currency translation adjustments gains of¥434.6 billion in fiscal 2013 compared with losses of ¥87.7 billion in the prior fiscal year, and from unrealized
holding gains on securities in fiscal 2013 of ¥368.5 billion compared with gains of ¥129.3 billion in the priorfiscal year. The increase in unrealized holding gains on securities was due mainly to changes in stock prices.
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,
2013 v. 2012 Change
2012
2013
AmountPercentage

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

¥16,994,546
21,683¥20,419,100
944,704¥3,424,554
923,02120.2%
4,256.9

1,100,324
306,438

1,170,670
315,820

70,346
9,382

6.4
3.1

1,048,915
42,062

1,066,461
53,616

17,546
11,5541.7
27.5(560,132)(14,556)(592,039)
6,748(31,907)21,304——

Automotive Operations Segment
The automotive operations segment is Toyota’s largest operating segment by net revenues. Net revenues forthe automotive segment increased during fiscal 2013 by ¥3,424.5 billion, or 20.2%, compared with the priorfiscal year to ¥20,419.1 billion. The increase reflects the ¥3,030.0 billion of favorable impact of changes invehicle unit sales and sales mix and the ¥245.4 billion favorable impact of fluctuations in foreign currencytranslation rates.
Operating income from the automotive operations increased by ¥923.0 billion during fiscal 2013 comparedwith the prior fiscal year to ¥944.7 billion. This increase in operating income was due mainly to the¥150.0 billion favorable impact of changes in exchange rates, the ¥645.0 billion of favorable impact of changes
in vehicle unit sales and sales mix, and the ¥450.0 billion impact of cost reduction efforts, partially offset by the¥300.0 billion increase in miscellaneous costs and others.
The changes in vehicle unit sales and changes in sales mix was due primarily to the increase in Toyota’s
vehicle unit sales by 1,519 thousand vehicles compared with the prior fiscal year resulting from the increase in
vehicle unit sales in every region. The increase in miscellaneous costs and others was due mainly to the¥90.0 billion charge for costs related to the settlement of the economic loss claims in the consolidated federal
action in the U.S., the ¥70.0 billion increase in labor costs, the ¥50.0 billion impact of increase in product quality
related expenses and the ¥20.0 billion increase in research and development expenses.

66

Financial Services Operations Segment
Net revenues for the financial services operations increased during fiscal 2013 by ¥70.3 billion, or 6.4%,
compared with the prior fiscal year to ¥1,170.6 billion. This increase was primarily due to the ¥36.0 billion
favorable impact of fluctuations in foreign currency translation rates and the ¥25.8 billion increase in rental
income from vehicles and equipment on operating leases.
Operating income from financial services operations increased by ¥9.3 billion, or 3.1%, to ¥315.8 billion
during fiscal 2013 compared with the prior fiscal year. This increase was due primarily to the recording of ¥12.9
billion of valuation gains on interest rate swaps stated at fair value.
Ratio of credit loss experience in the United States is as follows:Year ended March 31,
2012
2013

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

0.24%
0.11

0.29%
0.18

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

0.21%

0.27%

All Other Operations Segment
Net revenues for Toyota’s other operations segments increased by ¥17.5 billion, or 1.7%, to ¥1,066.4 billion
during fiscal 2013 compared with the prior fiscal year.
Operating income from Toyota’s other operations segments increased by ¥11.5 billion, or 27.5%, to¥53.6 billion during fiscal 2013 compared with the prior fiscal year.

67Results of Operations — Fiscal 2012 Compared with Fiscal 2011
Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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 before income taxes and equity in earnings ofaffiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net margin from income before income taxes and equity inearnings of affiliated companies . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliated companies . . . . . . . . . . . . .
Net income attributable to Toyota Motor Corporation . . . .
Net margin attributable to Toyota Motor Corporation . . . .

¥10,986,246 ¥11,167,319 ¥ 181,073
5,429,136
4,751,886(677,250)
1,981,497
1,993,946
12,4493,374,534
3,334,274(40,260)
1,809,116
1,760,175(48,941)(4,586,841) (4,423,947)
162,894

1.6%(12.5)
0.6
(1.2)
(2.7)
—

18,993,688

18,583,653(410,035)(2.2)(362,396)
339,503
13,148
312,977
160,129
4,918(207,040)
186,409
17,796
256,790108,814(7,142)

155,356(153,094)
4,648(56,187)(51,315)(12,060)—(45.1)
35.4(18.0)(32.0)—

468,279
2.5%

355,627(112,652)(24.1)
1.9%(0.6)%

563,290432,8733.0%
215,016
408,183
2.1%

2.3%(0.7)%
197,701(17,315)(8.1)
283,559(124,624)(30.5)
1.5%(0.6)%(130,417)(23.2)* “Other” consists of Central and South America, Oceania and Africa.
Net Revenues
Toyota had net revenues for fiscal 2012 of ¥18,583.6 billion, a decrease of ¥410.0 billion, or 2.2%,
compared with the prior fiscal year. This decrease reflects unfavorable impact of fluctuations in foreign currencytranslation rates and others of ¥717.7 billion, partially offset by changes in numbers of the vehicle unit sales andsales mix of approximately ¥320.0 billion and other factors. Excluding the difference in the Japanese yen value
used for translation purposes of ¥717.7 billion, net revenues would have been approximately ¥19,301.3 billion
during fiscal 2012, a 1.6% increase compared with the prior fiscal year. The automotive market in fiscal 2012
increased by 9.7% in North America and 3.9% in Asia compared with the prior fiscal year due to that market in
the U.S. and emerging countries such as Asia have developed in a steady manner. Under these automotive market
conditions, despite the Great East Japan Earthquake and the flood in Thailand, Toyota’s consolidated vehicle unit
sales increased to 7,352 thousand vehicles by 0.6% compared with the prior fiscal year.

68

The table below shows Toyota’s net revenues from external customers by product category and by business.
Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥14,507,479
Parts and components for overseas production . . . . . . . . . .
335,366
Parts and components for after service . . . . . . . . . . . . . . . .
1,553,497
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
926,411¥14,164,940
338,000
1,532,219
929,219¥(342,539)
2,634(21,278)2,808(2.4)%
0.8
(1.4)
0.3

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

17,322,753
497,767

16,964,378
547,538(358,375)
49,771(2.1)
10.0

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

17,820,520
1,173,168

17,511,916
1,071,737(308,604)(101,431)

(1.7)
(8.6)

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

¥18,993,688¥18,583,653¥(410,035)(2.2)%

Toyota’s net revenues include net revenues from sales of products, consisting of net revenues fromautomotive operations and all other operations, which decreased by 1.7% during fiscal 2012 compared with theprior fiscal year to ¥17,511.9 billion, and net revenues from financial services operations which decreased by
8.6% during fiscal 2012 compared with the prior fiscal year to ¥1,071.7 billion. Excluding the difference in theJapanese yen value used for translation purposes of ¥650.8 billion, net revenues from sales of products would
have been ¥18,162.7 billion, a 1.9% increase during fiscal 2012 compared with the prior fiscal year. The increasein net revenues from sales of products is due to an increase in Toyota vehicle unit sales by 44 thousand vehicles.
Excluding the difference in the Japanese yen value used for translation purposes of ¥66.9 billion, net revenues
from financial services operations would have been approximately ¥1,138.6 billion, a 2.9% decrease during fiscal
2012 compared with the prior fiscal year. This decrease was mainly due to the decrease of ¥18.3 billion rental
revenue generated by vehicles and equipment on operating lease.
The following table shows the number of financing contracts by geographic region at the end of the fiscal
2012 and 2011, respectively.
Number of financing contracts in thousands
Year ended March 31,
2012 v. 2011 Change
2011
2012
Amount Percentage

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

1,709
4,654
790
522
527

1,697
4,535
796
649
552

(12)
(119)
6
127
25

(0.7)%
(2.6)
0.7
24.3
4.9

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

8,202

8,229

27

0.3%

* “Other” consists of Central and South America, Oceania and Africa.
Geographically, net revenues (before the elimination of intersegment revenues) for fiscal 2012 decreased by
12.5% in North America, 1.2% in Asia, and 2.7% in Other, whereas net revenues increased by 1.6% in Japan and
0.6% in Europe compared with the prior fiscal year. Excluding the difference in the Japanese yen value used fortranslation purposes of ¥717.7 billion, net revenues in fiscal 2012 would have decreased by 5.1% in North
America, and would have increased by 1.6% in Japan, 5.3% in Europe, 3.8% in Asia and 1.7% in Other
compared with the prior fiscal year.

69

The following is a discussion of net revenues in each geographic market (before the elimination ofintersegment revenues).
Japan
Thousands of units
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

3,611

3,741

130

3.6%

* including number of exported vehicle unit sales
Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

Net revenues:
Sales of products . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥10,864,329
Financial services . . . . . . . . . . . . . . . . . . . . . . . . . . .
121,917
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥10,986,246¥11,040,964
126,355¥ 176,635
4,438

1.6%
3.6

¥11,167,319¥ 181,073

1.6%

Although Toyota’s domestic and exported vehicle unit sales decreased due to the impact of the Great East
Japan Earthquake in the first half of fiscal 2012, Toyota’s domestic and exported vehicle unit sales over the fiscal
year increased by 130 thousand vehicles compared with the prior fiscal year. The increase in vehicle unit sales
resulted primarily from introduction of new products such as Prius α and Aqua.
North America
Thousands of units
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

2,031

1,872

(159)

(7.8)%

Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥ 4,603,192
825,944¥ 4,048,532
703,354¥(554,660)(122,590)(12.0)%(14.8)

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

¥ 5,429,136¥ 4,751,886¥(677,250)(12.5)%In North America, the vehicle unit sales decreased by 159 thousand vehicles compared with the prior fiscal
year due to decreased production as a result of shortages of parts supplies caused by the Great East Japan
Earthquake and the flood in Thailand, consisting of a 67 thousand vehicles, or 30.7%, decrease in RAV4 sales, a
26 thousand vehicles, or 22.4%, decrease in Tundra sales, and a 21 thousand vehicles, or 7.3%, decrease in
Corolla sales. Net revenues in North America decreased compared with the prior fiscal year due to the decreasein vehicle unit sales and the unfavorable impact of fluctuations in foreign currency translation rates of¥398.9 billion.

70

EuropeThousands of units
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

796

798

2

0.3%

Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥1,910,336
71,161¥1,925,670
68,276¥15,334(2,885)

0.8%
(4.1)

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

¥1,981,497¥1,993,946¥12,449

0.6%

Net revenues in Europe as a whole increased due primarily to the 2 thousand vehicles increase in vehicle
unit sales compared with the prior fiscal year, such as a 49 thousand vehicles increase in Russia, where theeconomy has been strong, although sales of Toyota brands’ vehicles decreased in some European countries
compared with the prior fiscal year, such as a 18 thousand vehicles decrease in Italy and a 7 thousand vehicles
decrease in Portugal, both of which were mainly due to the European sovereign debt crisis.
Asia
Thousands of units
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

1,255

1,327

72

5.7%

Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥3,325,466
49,068¥3,275,871
58,403¥(49,595)
9,335(1.5)%
19.0

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

¥3,374,534¥3,334,274¥(40,260)(1.2)%

Despite the flood in Thailand, Toyota’s vehicle unit sales in Asia increased by 72 thousand vehicles
compared with the prior fiscal year due to steady growth in automotive markets. Although Toyota’s vehicle unit
sales in Asia increased, net revenues in Asia decreased compared with the prior fiscal year mainly due to theunfavorable impact of fluctuations in foreign currency translation rates of ¥168.8 billion and others.

71

OtherThousands of units
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

1,313

1,284

(29)

(2.2)%

Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥1,694,680
114,436¥1,636,043
124,132¥(58,637)
9,696(3.5)%
8.5

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

¥1,809,116¥1,760,175¥(48,941)(2.7)%Net revenues in Other decreased due to decreases in Toyota’s vehicle unit sales primarily as a result of
shortages of parts supplies caused by the Great East Japan Earthquake and the flood in Thailand. Toyota’s
vehicle unit sales decreased by 25 thousand vehicles in Oceania, and by 19 thousand vehicles in the Middle East,
respectively, compared with the prior fiscal year.
Operating Costs and Expenses
Yen in millions
Year ended March 31,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥15,985,783
629,543
1,910,083¥15,795,918
592,646
1,839,462¥(189,865)(36,897)(70,621)(1.2)%(5.9)(3.7)

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

¥18,525,409¥18,228,026¥(297,383)(1.6)%

Yen in millions
2012 v. 2011 Change

Changes in operating costs and expenses:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of cost reduction efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of increase in miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 150,000(432,300)(150,000)
134,917

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

¥(297,383)

Operating costs and expenses decreased by ¥297.3 billion, or 1.6%, to ¥18,228.0 billion during fiscal 2012
compared with the prior fiscal year. This decrease resulted from the ¥432.3 billion favorable impact offluctuations in foreign currency translation rates and others, and the ¥150.0 billion impact of cost reduction
efforts, partially offset by the ¥150.0 billion impact of changes in vehicle unit sales and sales mix and otheroperational factors and the ¥134.9 billion increase in miscellaneous costs and others.
The increase in miscellaneous costs and others was due mainly to a ¥100.0 billion increase in labor costs, a¥50.0 billion increase in research and development expenses and the ¥104.9 billion increase in other various
costs, partially offset by the ¥120.0 billion impact of decrease in product quality related expenses and others.
This cost decreased because costs related to recalls and other safety measures occurred at a high level during theprior fiscal year. See note 14 to the consolidated financial statements.
72

During fiscal 2012, Toyota announced recalls and other safety measures including the following:
In June 2011, Toyota announced in Japan and other regions a voluntary safety recall of certain models of
Toyota and Lexus brands’ vehicles in relation to damage to elements of the substrate and potential shutdown of
the hybrid system that may have resulted from improper manufacturing of electronic converter control substrate.
The affected vehicle models included Harrier Hybrid, Kluger Hybrid, RX400h, and Highlander Hybrid,
111 thousand vehicles were included in this recall.
In September 2011, Toyota announced in Japan the service campaign of certain models of Toyota in relation
to abnormal noise and oil leakage that may have resulted from slack of bolts in the sub transmission and the rear
wheel differential. The affected vehicle models included EstimaL, EstimaT and Wish, 181 thousand vehicles
were included in this service campaign.
In November 2011, Toyota announced in Japan and other regions the voluntary safety recall of certain
models of Toyota and Lexus brands’ vehicles in relation to abnormal noise, charge warning light indicators, andincreasing of handle operation force resulted from peeling of a bonded part of the engine crankshaft pulley. The
affected vehicle models included AlphardG, AlphardV, EstimaL, EstimaT, KlugerV, KlugerL, Kluger Hybrid,
Harrier, Harrier Hybrid, Windom, RX300, RX330, RX400h, ES300, ES330, Solara, Camry, Avalon, Sienna,
Highlander, and Highlander Hybrid, 549 thousand vehicles were included in this recall.
Cost Reduction Efforts
During fiscal 2012, Toyota’s continued cost reduction efforts reduced operating costs and expenses by¥150.0 billion. The amount of effect of cost reduction efforts includes the impact of fluctuation in the price ofsteel, precious metals, non-ferrous alloys including aluminum, plastic parts and other production materials andparts. In fiscal 2012, raw materials prices were on an increasing trend; however, continued cost reduction efforts
together with suppliers contributed to the improvement in earnings by more than offsetting the effects from raw
materials price increase. These cost reduction efforts related to ongoing value engineering and value analysis
activities, the use of common parts resulting 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 ¥189.8 billion, or 1.2%, to ¥15,795.9 billion during fiscal 2012
compared with the prior fiscal year. The decrease resulted from the ¥343.6 billion favorable impact offluctuations in foreign currency translation rates and others, and the ¥150.0 billion impact of cost reduction
efforts, partially offset by the ¥135.0 billion impact of changes in vehicle unit sales and sales mix and otheroperational factors, and ¥110.0 billion increase in miscellaneous costs and others. The increase in miscellaneous
costs was due mainly to the ¥50.0 billion increase in research and development expenses and the ¥80.0 billion
increase in labor costs.
Cost of Financing Operations
Cost of financing operations decreased by ¥36.8 billion, or 5.9%, to ¥592.6 billion during fiscal 2012
compared with the prior fiscal year. The decrease resulted from the ¥35.7 billion favorable impact of fluctuations
in foreign currency translation rates and others, partially offset by the ¥20.8 billion recording of valuation losses
on interest rate swaps stated at fair value.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased by ¥70.6 billion, or 3.7%, to ¥1,839.4 billion during
fiscal 2012 compared with the prior fiscal year. This decrease reflects the ¥53.0 billion favorable impact offluctuations in foreign currency translation rates and others, and the ¥19.2 billion decrease for the financial
services operations.
73

Operating Income
Yen in millions
2012 v. 2011 Change

Changes in operating income and loss:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of increase in miscellaneous costs and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of cost reduction efforts, financial services operations, and others . . . . . . . . . . . . .

¥ 170,000(285,400)(100,000)
102,748

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

¥(112,652)

Toyota’s operating income decreased by ¥112.6 billion, or 24.1%, to ¥355.6 billion during fiscal 2012
compared with the prior fiscal year. This decrease was due mainly to the ¥285.4 billion unfavorable impact offluctuations in foreign currency translation rates and others, and the ¥100.0 billion increase in miscellaneous
costs and others, partially offset by the ¥170.0 billion of favorable impact by changes in vehicle unit sales andsales mix and other operational factors and the ¥102.7 billion increase of cost reduction efforts, financial services
operations, and others. The unfavorable impact of fluctuations in foreign currency translation rates and others
included ¥250.0 billion unfavorable impact of fluctuations in foreign currency transaction rates. The¥102.7 billion increase of cost reduction efforts, financial services operations, and others reflects the ¥150.0
billion impact of cost reduction efforts, partially offset by the ¥10.0 billion decrease in operating income in thefinancial services operations.
During fiscal 2012, operating loss (before elimination of intersegment profits), decreased by ¥155.3 billion
in Japan compared with the prior fiscal year. During fiscal 2012, operating income (before elimination ofintersegment profits), increased by ¥4.6 billion, or 35.4%, in Europe compared with the prior fiscal year, whereas
it decreased by ¥153.0 billion, or 45.1%, in North America, decreased by ¥56.2 billion, or 18.0%, in Asia, anddecreased by ¥51.3 billion, or 32.0%, in Other.
The following is a description of operating income and loss in each geographic market.
Japan
Yen in millions
2012 v. 2011 Change

Changes in operating income and loss:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of cost reduction efforts, decrease in miscellaneous costs and others . . . . . . . . . . .

¥ 195,000(275,000)
235,356

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

¥ 155,356

The decrease in operating losses in Japan reflects the ¥195.0 billion of favorable impact by changes invehicle unit sales and sales mix and other operational factors and ¥235.3 billion impact of the cost reduction
efforts, and decrease in miscellaneous costs and others, partially offset by the ¥275.0 billion unfavorable impactof effect of fluctuation in foreign currency transaction rates and others. The cost reduction efforts, decrease in
miscellaneous costs and others mainly reflect the ¥130.0 billion impact of the cost reduction efforts and¥40.0 billion decrease in miscellaneous costs and others. The increase in vehicle unit sales was mainly due tointroduction of new products such as Prius α and Aqua.

74

North America
Yen in millions
2012 v. 2011 Change

Changes in operating income and loss:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of cost reduction efforts, increase in miscellaneous costs and others . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(5,000)(7,500)(140,594)¥(153,094)

The decrease in operating income in North America was due to the ¥55.0 billion decrease in operating
income in the financial services operations, the ¥7.5 billion unfavorable impact of the fluctuations in foreign
currency translation rates and others, the ¥5.0 billion negative impact of changes in vehicle unit sales and sales
mix and other operational factors and the ¥90.0 billion increase in miscellaneous costs and others.
EuropeYen in millions
2012 v. 2011 Change

Changes in operating income and loss:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of cost reduction efforts, decrease in miscellaneous costs and others . . . . . . . . . . .

¥(15,000)(1,200)20,848

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

¥ 4,648

The increase in operating income in Europe was due to the ¥10.0 billion impact of cost reduction efforts andthe ¥5.0 billion increase in operating income in the financial services operations, partially offset by ¥15.0 billion
negative impact of changes in vehicle unit sales and sales mix and other operational factors and the ¥1.2 billion
unfavorable impact of fluctuations in foreign currency translation rates and others.
Asia
Yen in millions
2012 v. 2011 Change

Changes in operating income and loss:
Effect of changes in vehicle unit sales and sales mix and other operational factors . . . . .
Effect of fluctuation in foreign currency translation rates and others . . . . . . . . . . . . . . . .
Effect of cost reduction efforts, increase in miscellaneous costs and others . . . . . . . . . . .

¥(10,000)
11,600(57,787)

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

¥(56,187)

The decrease in operating income in Asia was due to the ¥10.0 billion negative impact of changes in vehicle
unit sales and sales mix and other operational factors and others and the ¥35.0 billion increase in miscellaneous
costs and others, partially offset by the ¥11.6 billion favorable impact of the fluctuation in foreign currencytranslation rates and others.
Other Income and Expenses
Interest and dividend income increased by ¥9.0 billion, or 10.0%, to ¥99.8 billion during fiscal 2012
compared with the prior fiscal year.
75Interest expense decreased by ¥6.3 billion, or 21.8%, to ¥22.9 billion during fiscal 2012 compared with theprior fiscal year.
Foreign exchange gain, net increased by ¥22.8 billion, or 159.4%, to ¥37.1 billion during fiscal 2012
compared with the prior fiscal year.
The net gain of ¥37.1 billion in fiscal 2012 was primarily attributable to Toyota Motor Corporation’s
receivables denominated in the U.S. dollars, specifically transactional gains on account of an increase in export
volume due to the recovery of production levels in the second half of fiscal 2012 after the Great East Japan
Earthquake, and the weakening of the Japanese yen against the U.S. dollar in the second half of fiscal 2012,
together with the impact of forward foreign currency exchange contracts, which were mainly denominated in the
U.S. dollars and the yen as well as the euro and the yen.
The ¥22.8 billion increase in foreign exchange gain, net, during fiscal 2012 compared with the prior fiscal
year was mainly attributable to the losses incurred by certain subsidiaries during fiscal 2011. Such losses wereprincipally due to the Brazilian real and the Thai baht, the functional currencies for Toyota Motor Corporation’s
Brazilian and Thai subsidiaries, respectively, both strengthening against the U.S. dollar, decreasing the value of
assets denominated in dollars that were not settled during the year.
Other loss, net decreased by ¥56.0 billion to ¥36.8 billion during fiscal 2012 compared with the prior fiscal
year. This was due to the recognition of impairment losses on available-for-sale securities.
Income Taxes
The provision for income taxes decreased by ¥50.5 billion, or 16.2%, to ¥262.2 billion during fiscal 2012
compared with the prior fiscal year due to the decrease in income before income taxes. The effective tax rate forfiscal 2012 was 60.6%, which was higher than the statutory tax rate in Japan. This was due to recurring items
such as the valuation allowance and deferred tax liabilities relating to undistributed earnings in affiliatedcompanies accounted for by the equity method.
Net Income and Loss Attributable to Noncontrolling Interests and Equity in Earnings of Affiliated Companies
Net income attributable to noncontrolling interests increased by ¥27.4 billion, or 47.9%, to ¥84.7 billion
during fiscal 2012 compared with the prior fiscal year. This increase was due to an increase during fiscal 2012 in
net income attributable to the shareholders of consolidated subsidiaries.
Equity in earnings of affiliated companies during fiscal 2012 decreased by ¥17.3 billion, or 8.1%, to¥197.7 billion compared with the prior fiscal year. This decrease was due to a decrease during fiscal 2012 in net
income attributable to the shareholders of affiliated companies accounted for by the equity method.
Net Income Attributable to Toyota Motor Corporation
Net income attributable to the shareholders of Toyota Motor Corporation decreased by ¥124.6 billion, or
30.5%, to ¥283.5 billion during fiscal 2012 compared with the prior fiscal year.
Other Comprehensive Income and Loss
Other comprehensive loss decreased by ¥263.8 billion to ¥34.1 billion for fiscal 2012 compared with theprior fiscal year. This decrease resulted from unfavorable foreign currency translation adjustments losses of¥87.7 billion in fiscal 2012 compared with losses of ¥287.6 billion in the prior fiscal year, and from unrealized
holding gains on securities in fiscal 2012 of ¥129.3 billion compared with losses of ¥26.1 billion in the priorfiscal year. The increase in unrealized holding gains on securities was due to changes in stock prices.
76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,
2012 v. 2011 Change
2011
2012
AmountPercentage

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

¥17,337,320
85,973¥16,994,546
21,683¥(342,774)(64,290)(2.0)%(74.8)

1,192,205
358,280

1,100,324
306,438(91,881)(51,842)(7.7)(14.5)

972,252
35,242

1,048,915
42,062

76,663
6,820

7.9
19.4

(508,089)(11,216)(560,132)(14,556)(52,043)(3,340)——Automotive Operations Segment
The automotive operations segment is Toyota’s largest operating segment by net revenues. Net revenues forthe automotive segment decreased during fiscal 2012 by ¥342.7 billion, or 2.0%, compared with the prior fiscal
year to ¥16,994.5 billion. The decrease reflects the ¥649.2 billion unfavorable impact of fluctuations in foreign
currency translation rates and others, partially offset by the ¥320.0 billion of favorable impact by changes invehicle unit sales and sales mix, and other operational factors.
Operating income from the automotive operations decreased by ¥64.3 billion during fiscal 2012 comparedwith the prior fiscal year to ¥21.6 billion. This decrease in operating income was due to the ¥250.0 billion
unfavorable impact of fluctuations in foreign currency rates and the ¥100.0 billion increase in miscellaneous
costs and others, partially offset by the ¥170.0 billion effect of cost reduction efforts, and the ¥150.0 billion offavorable impact by changes in vehicle unit sales and sales mix.
The changes in vehicle unit sales and changes in sales mix was due primarily to an increase in Toyota’s
vehicle unit sales by 44 thousand vehicles compared with the prior fiscal year resulting from the introduction of
new products in spite of the impact of the Great East Japan Earthquake and the flood in Thailand. The increase in
miscellaneous costs and others was due primarily to the ¥100.0 billion increase in labor costs and the¥50.0 billion increase in research and development expenses.
Financial Services Operations Segment
Net revenues for the financial services operations decreased during fiscal 2012 by ¥91.8 billion, or
7.7%, compared with the prior fiscal year to ¥1,100.3 billion. This decrease was primarily due to the unfavorable
impact of fluctuations in foreign currency translation rates and others of ¥66.9 billion and the ¥18.3 billion
decrease in rental income from vehicles and equipment on operating leases.
Operating income from financial services operations decreased by ¥51.8 billion, or 14.5%, to ¥306.4 billion
during fiscal 2012 compared with the prior fiscal year. This decrease was due primarily to the recording of¥20.8 billion of valuation losses on interest rate swaps stated at fair value.

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Ratio of credit loss experience in the United States is as follows:Year ended March 31,
2011
2012

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

0.61%
0.22

0.24%
0.11

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

0.52%

0.21%

All Other Operations Segment
Net revenues for Toyota’s other operations segments increased by ¥76.6 billion, or 7.9%, to ¥1,048.9 billion
during fiscal 2012 compared with the prior fiscal year.
Operating income from Toyota’s other operations segments increased by ¥6.8 billion, or 19.4%, to¥42.0 billion during fiscal 2012 compared with the prior fiscal year.
Related Party Transactions
Toyota does not have any significant related party transactions other than transactions with affiliatedcompanies 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 minimum of 85% by weight per vehicle and shall be re-usable and/or recoverable to aminimum 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 weight by 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 December 2011, FASB issued updated guidance of disclosures about offsetting assets and liabilities. This
guidance requires additional disclosures about gross and net information for assets and liabilities including
financial instruments eligible for offset in the balance sheets. This guidance is effective for fiscal year beginningon or after January 1, 2013, and for interim period within the fiscal year. Management does not expect thisguidance to have a material impact on Toyota’s consolidated financial statements.
In February 2013, FASB issued updated guidance on the presentation of items reclassified out ofaccumulated other comprehensive income. This guidance requires to present, either in a single note orparenthetically on the face of the financial statements, the effect of significant amounts reclassified out of each78

component of accumulated other comprehensive income based on its source. This guidance is effective for fiscal
year beginning on or after December 15, 2012, and for interim period within the fiscal year. Management does
not expect this guidance to have a material impact on Toyota’s consolidated financial statements.
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 useof 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 and expenses 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 Warranties and Recalls and Other Safety Measures
Toyota generally warrants its products against certain manufacturing and other defects. Provisions for
product warranties are provided for specific periods of time and/or usage of the product and vary depending upon
the nature of the product, the geographic location of the sale and other factors. All product warranties are
consistent with commercial practices. Toyota includes a provision for estimated product warranty costs as acomponent 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 while still under warranty. The amount of accrued estimated warranty costs is primarily
based on historical experience of product failures as well 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 and some products’ warranties
extend for several years. Consequently, actual warranty costs may differ from the estimated amounts and could
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.
An estimate of warranty claim accrued for each fiscal year is calculated based on the estimate of warranty
claim per unit. The estimate of warranty claim per unit is calculated by dividing the actual amounts of warranty
claim, net of claim recovery cost received from suppliers, by the number of sales units for the fiscal year.
As the historical recovery amounts received from suppliers is used as a factor in Toyota’s calculation of
estimated accrued warranty cost, the estimated accrued warranty cost may change depending on the average
recovery amounts received from suppliers in the past. However, Toyota believes that there is not a significant
uncertainty of estimated amounts based on historical experience regarding recoveries received from suppliers.
Toyota may seek recovery to suppliers over the life of the warranty, and there are no other significant special
terms and conditions including cap on amounts that can be recovered.
Toyota accrues for costs of recalls and other safety measures, as well as product warranty cost describedabove, included as a component of cost of sales at the time of vehicle sale. Toyota provides for such “liabilities
for recalls and other safety measures” at the time of vehicle sales comprehensively by aggregate sales of various
models in a certain period by geographical regions instead of by individual models. While there is no differencein the calculation method among geographical regions, Toyota believes it is reasonable to calculate the liabilities
by geographical regions because of factors such as varying labor costs among geographical regions.
The “liabilities for the costs of recalls and other safety measures” recorded in the balance sheet is calculated
by deducting the “accumulated amount of repair cost paid” from the “expected liability for the cost of recalls andother safety measures”. As such, this liability is evaluated every period based on new data and are adjusted as
appropriate. Toyota calculates these liabilities for units sold in the current period and each of the past 10 fiscal
years, and aggregates such liabilities in determining the final liability amount.
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The “expected liability for the cost of recalls and other safety measures” are calculated by multiplying the“sales unit” by the “expected average repair cost per unit”. The “expected average repair cost per unit” iscalculated based on dividing the “accumulated amount of repair cost paid per unit” by the “pattern of payment
occurrences”. The “pattern of payment occurrence” represents a ratio that shows the measure of payment
occurrence over 10 years based on actual payments with regard to units sold within 10 years
Factors that may cause a difference between the amount accrued at the time of vehicle sale and actual
payment on individual recalls and other safety measures mainly include actual cost of recalls and safety measuresduring the period being significantly different from the accumulated amount of repair cost paid per unit
(generally comprised of parts and labor) and the actual pattern of payment occurrence during the period being
significantly different from the pattern of the payment occurrence in the past, which is considered as part of ourestimation process for future recalls and other safety measures.
As described above, in estimating the comprehensive provision, the actual cost of individual recalls andother safety measures is included as a component of the calculation such as the accumulated amount of repair
cost paid per unit. Thus, an individual recall announcement generally does not directly impact the financial
statements when it occurs.
Allowance for Doubtful Accounts and Credit Losses
Natures of estimates and assumptions
Retail receivables and finance lease receivables consist of retail installment sales contracts secured bypassenger cars and commercial vehicles. Collectability risks include consumer and dealer insolvencies andinsufficient collateral values (less costs to sell) to realize the full carrying values of these receivables. As a matterof policy, Toyota maintains an allowance for doubtful accounts and credit losses representing management’s
estimate of the amount of asset impairment in the portfolios of finance, trade and other receivables. 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 andcomposition of the portfolios, current economic events and conditions, the estimated fair value and adequacy ofcollateral, and other pertinent factors. This evaluation is inherently judgmental and requires material estimates,
including the amounts and timing of future cash flows expected to be received, which may be susceptible tosignificant change. Although management considers the allowance for doubtful accounts and credit losses to beadequate based on information currently available, additional provisions may be necessary due to (i) changes inmanagement 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 of Toyota’s retail receivables and finance leasereceivables could experience further downward pressure. If these factors require a significant 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 ofoperations, is influenced by two factors: frequency of occurrence and expected severity of loss. For evaluation
purposes, exposures to credit losses are segmented into the two primary categories of “consumer” and “dealer”.
Toyota’s “consumer” category consists of smaller balances that are homogenous retail receivables and financelease receivables. The “dealer” category consists of wholesale and other dealer loan 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.
Sensitivity analysis
The level of credit losses, which could significantly impact Toyota’s results of operations, is influenced by
two factors: frequency of occurrence and expected severity of loss. The overall allowance for credit losses isevaluated at least quarterly, considering a variety of assumptions and factors to determine whether reserves are
80

considered adequate to cover probable losses. The following table illustrates the effect of an assumed change infrequency of occurrence or expected severity of loss mainly in the United States, assuming all other assumptions
are held consistent respectively. The table below represents the impact on the allowance for credit losses in
Toyota’s financial services operations of the change in frequency of occurrence or expected severity of loss as
any change impacts most significantly on the financial services operations.
Yen in millions
Effect on the allowancefor credit losses
as of March 31, 201310 percent change in frequency of occurrence or expected severity of loss . . . . . . . . . . . . . .

¥3,950Investment in Operating Leases
Natures of estimates and assumptions
Vehicles on operating leases, where Toyota is the lessor, are valued at cost and depreciated over theirestimated useful lives using the straight-line method to their estimated residual values. Toyota utilizes industry
published information and its own historical experience to determine estimated residual values for these vehicles.
Toyota evaluates the recoverability of the carrying values of its leased vehicles for impairment when there areindications of declines in residual values, and if impaired, Toyota recognizes an allowance for losses on its
residual values.
Throughout the life of the lease, management performs periodic evaluations of estimated end-of-term fairvalues to determine whether estimates used in the determination of the contractual residual value are still
considered reasonable. Factors affecting the estimated residual value at lease maturity include, but are not limited
to, new vehicle incentive programs, new vehicle pricing, used vehicle supply, projected vehicle return rates, andprojected loss severity. The vehicle return rate represents the number of leased vehicles actually returned atcontract maturity as a percentage of the number of lease contracts originally scheduled to be mature in the same
period less lease contracts subject to early terminations. A higher rate of vehicle returns exposes Toyota to higher
potential losses incurred at lease termination. Severity of loss is the extent to which the end-of-term fair value ofa lease is less than its carrying value at lease end.
To the extent that sales incentives remain an integral part of sales promotion, resale prices of used vehicles
and, correspondingly, the fair value of Toyota’s leased vehicles could be subject to downward pressure. The
extent of the impact this will have on the end of term residual value depends on the significance of the incentive
programs and whether they are sustained over a number of periods. This in turn can impact the projection of
future used vehicle values, adversely impacting the expected residual value of the current operating leaseportfolio and increasing the provision for residual value losses. However, various other factors impact used
vehicle values and the projection of future residual values, including the supply of and demand for used vehicles,interest rates, inflation, the actual or perceived quality, safety and reliability of vehicles, the general economic
outlook, new vehicle pricing, projected vehicle return rates and projected loss severity, which may offset thiseffect. Such factors might adversely affect the results of operations for financial services due to significant
charges reducing the estimated residual value.

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Sensitivity analysis
The following table illustrates the effect of an assumed change in the vehicle return rate and end-of-term
market values mainly in the United States, which Toyota believes are the critical estimates, in determining theresidual value losses, holding all other assumptions constant. The following table represents the impact on theresidual value losses in Toyota’s financial services operations of the change in vehicle return rate and end-ofterm market values as those changes have a significant impact on financial services operations.
Yen in millions
Effect on the residual value losses
over the remaining termsof the operating leases
on and after April 1, 2013

1 percent increase in vehicle return rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 percent increase in end-of-term market values . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥1,035¥5,267

Impairment of Long-Lived Assets
Toyota periodically reviews the carrying value of its long-lived assets held and used and assets to bedisposed of, including intangible assets, when events and circumstances warrant such a review. This review isperformed 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 the carrying value of the long-lived asset exceeds its
fair value. Management believes that the estimates of future cash flows and fair values 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. Theseassumptions include discount rates, benefits earned, interest costs, expected rate of return on plan assets,mortality rates and other factors. Actual results that differ from the assumptions are accumulated and amortizedover future periods and, therefore, generally affect recognized expense in future periods. While management
believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions
may affect Toyota’s pension costs and obligations.
The two most critical assumptions impacting the calculation of pension costs and obligations are thediscount rates and the expected rates of returns on plan assets. Toyota determines the discount rates mainly basedon the rates of high quality fixed income bonds or fixed income governmental bonds currently available andexpected to be available during the period to maturity of the defined benefit pension plans. Toyota determines the
expected rates of return for pension assets after considering several applicable factors including, the compositionof 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 rateof 2.0% domestically and 5.0% overseas and a weighted-average expected rate of return on plan assets of 2.5%
domestically and 7.0% overseas are the results of assumptions used for the various pension plans in calculating
Toyota’s consolidated pension costs for fiscal 2013. Also, a weighted-average discount rate of 1.7% domesticallyand 4.5% overseas is the result of assumption used for the various pension plans in calculating Toyota’s
consolidated pension obligations for fiscal 2013.

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Sensitivity analysis
The following table illustrates the effects of assumed changes in weighted-average discount rates and theweighted-average expected rate of return on plan assets, which Toyota believes are critical estimates indetermining pension costs and obligations, assuming all other assumptions are consistent.
Yen in millions
Domestic
Overseas
Effect on pre-tax income Effect on obligations Effect on pre-tax income Effect on obligations
for the year ended
for the year ended
for the year ended
for the year ended
March 31, 2014
March 31, 2013
March 31, 2014
March 31, 2013

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

¥(7,217)
6,984¥ 117,113(108,417)¥(5,451)
5,451¥(4,598)
4,365¥ 57,956(52,908)¥(2,396)
2,396

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 for derivatives is complex and continues to evolve. Toyota
estimates the fair value of derivative financial instruments using industry-standard valuation models that require
observable inputs including interest rates and foreign exchange rates, and the contractual terms. In other certain
cases when market data is not available, key inputs to the fair value measurement include quotes fromcounterparties, and other market data. These estimates are based upon valuation methodologies deemed
appropriate under the circumstances. However, the use of different assumptions may have a material effect on theestimated 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 adecline in fair value below the carrying value is other-than-temporary. In determining if a decline in value isother-than-temporary, Toyota considers the length of time and the extent to which the fair value has been lessthan the carrying value, the financial condition and prospects of the company and Toyota’s ability and intent toretain its investment in the company for a period of time sufficient to allow for any anticipated recovery in fairvalue.
Deferred Tax Assets
The factors used to assess the likelihood of realization of the deferred tax assets are the future reversal ofexisting taxable temporary differences, the future taxable income and available tax planning strategies that are
prudent and feasible. All available evidence, both positive and negative, is considered to determine whether,based on the weight of that evidence, a valuation allowance is needed for deferred tax assets which are not morelikely-than-not to be realized.
The accounting for deferred tax assets represents Toyota’s current best estimate based on all available
evidence. Unanticipated events or changes could result in re-evaluating the realizability of deferred tax assets.

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Outlook
As for our world future business environment, the U.S. economy is expected to benefit from ongoingmoderate recovery and a pickup in the pace of economic expansion in emerging countries. Europe, meanwhile,
still faces the risk of economic stagnation due to the sovereign debt crisis and other factors, though a gradualbottoming out is anticipated.
The automotive market is expected to see recovery in the U.S. and expansion in emerging countries.
However, amid the change in market structure, as seen in the expansion and diversification of demand foreco-cars backed by rising environmental consciousness, fierce competition exists on a global scale. With theforegoing external factors in mind, Toyota expects that net revenues for fiscal 2014 will increase compared withfiscal 2013 as results of a favorable impact of fluctuations in foreign currency translation rates and an increase in
vehicle unit sales. With respect to operating income, factors expected to contribute to an increase in operating
income include the favorable impact of fluctuations in foreign currency rates, increased vehicle unit sales throughmarketing efforts, and cost reduction efforts. On the other hand, factors expected to contribute to a decrease inoperating income include increase in miscellaneous costs and others. As the result, Toyota expects that operating
income will increase in fiscal 2014 compared with fiscal 2013. Also, Toyota expects that income before income
taxes and equity in earnings of affiliated companies and net income attributable to Toyota Motor Corporation
will increase in fiscal 2014.
For the purposes of this outlook discussion, Toyota is assuming an average exchange rate of ¥90 to the
U.S. dollar and ¥120 to the euro. Exchange rate fluctuations can materially affect Toyota’s operating results. In
particular, a strengthening of the Japanese yen against the U.S. dollar can have a material adverse effecton Toyota’s operating results. 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. 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 aboveor 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 throughcash generated by operations.
In fiscal 2014, Toyota expects to sufficiently fund its capital expenditures and research and development
activities through cash and cash equivalents on hand, and cash generated by operations. Toyota will use its funds
for the development of environment technologies, maintenance and replacement of manufacturing facilities, andthe introduction of new products. See “Information on the Company — Business Overview — Capital
Expenditures and Divestitures” for information regarding Toyota’s material capital expenditures and divestitures
for fiscal 2011, 2012 and 2013, and information concerning Toyota’s principal capital expenditures anddivestitures currently in progress.
Toyota funds its financing programs for customers and dealers, including loans and leasing programs, fromboth 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 increased by ¥998.8 billion to ¥2,451.3 billion for fiscal 2013,
compared with ¥1,452.4 billion for fiscal 2012. The increase was primarily attributable to the ¥965.2 billion
increase in operating income. See “Operating and financial review and prospects — Operating results— Operating income” for further information regarding the increase in operating income.
84

Net cash provided by operating activities decreased by ¥571.5 billion to ¥1,452.4 billion for fiscal 2012,
compared with ¥2,024.0 billion for fiscal 2011. The decrease was primarily attributable to the ¥112.6 billion
decrease in operating income, to a decline in depreciation expense of ¥107.7 billion and a reduction in inventory.
Even though other working capital items significantly fluctuated in line with the significant decrease inproduction and sales in March 2011 due to the Great East Japan Earthquake and increase in sales in the second
half of fiscal 2012 due to the recovery of production levels from the Great East Japan Earthquake, changes inother working capital items largely offset each other such that Toyota believes the impact of such changes on net
cash provided by operating activities was not material. The impact of changes in interest and other items on net
cash provided by operating activities were also not material.
Inventory levels were at comparable levels as between the ends of fiscal 2010 and 2011; while the reduction
in sales after the Lehman financial crisis and other factors kept the inventory level low at the end of fiscal 2010,
the inventory level at the end of fiscal 2011 was approximately equivalent because of the Great East Japan
Earthquake and the subsequent downturn in production. However, the inventory level at the end of fiscal 2012
increased due to the recovery of production and sales after the Great East Japan Earthquake. This increase of
inventory involved related expenditures incurred in producing the inventory, which resulted in reducing the net
cash provided by operating activities by ¥396.7 billion.
Furthermore, depreciation decreased by ¥107.7 billion in fiscal 2012 as a result of a reduction of Toyota’s
capital expenditures after the Lehman financial crisis compared with capital expenditures before such financial
crisis. The decrease in depreciation favorably affected net income while it did not affect the net cash provided byoperating activities.
Net cash used in investing activities increased by ¥1,584.6 billion to ¥3,027.3 billion for fiscal 2013,
compared with ¥1,442.6 billion for fiscal 2012. The increase was primarily attributable to the ¥630.5 billion
increase in finance receivables, to the ¥426.5 billion increase in marketable securities and security investments
and to the ¥311.0 billion increase in purchases of investments in property.
Net cash used in investing activities decreased by ¥673.6 billion to ¥1,442.6 billion for fiscal 2012,
compared with ¥2,116.3 billion for fiscal 2011. The decrease was primarily attributable to the ¥1,248.1 billion
decrease in purchases of marketable securities and security investments, partially offset by a ¥859.3 billion
decrease in sales and maturity of marketable securities and security investments.
Net cash provided by or used in financing activities increased by ¥832.5 billion to ¥477.2 billion increase
for fiscal 2013, compared with ¥355.3 billion decrease for fiscal 2012. The increase was primarily attributable tothe ¥796.4 billion increase in proceeds from issuance of long-term debt and to the ¥185.4 billion decrease inpayments of long-term debt.
Net cash provided by or used in financing activities decreased by ¥789.6 billion to ¥355.3 billion decrease
for fiscal 2012, compared with ¥434.3 billion increase for fiscal 2011. The decrease was primarily attributable tothe ¥536.6 billion decrease in proceeds from issuance of long-term debt and to the ¥377.9 billion increase inpayments of long-term debt.
Total capital expenditures for property, plant and equipment, excluding vehicles and equipment on operatingleases, were ¥854.5 billion during fiscal 2013, an increase of 18.1% over the ¥723.5 billion in total capital
expenditures during the prior fiscal year. This increase was due primarily to an increase of investments in North
America and Asia.
Total capital expenditures for vehicles and equipment on operating leases were ¥1,119.5 billion during fiscal
2013, an increase of 38.5% over the ¥808.5 billion in expenditures from the prior fiscal year. This increase wasdue to an increase in investments in the financial services operations.
85

Toyota expects investments in property, plant and equipment, excluding vehicles and equipment on
operating leases, to be approximately ¥910.0 billion during fiscal 2014.
Based on currently 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 2014. However,uncertainty exists with respect to Toyota’s obligations under current and future environment regulations as
described in “Information on the Company — Business Overview — Governmental Regulation, Environmental
and Safety Standards”.
Cash and cash equivalents were ¥1,718.2 billion as of March 31, 2013. Most of Toyota’s cash and cash
equivalents are held in the Japanese yen or in the U.S. dollars. In addition, time deposits were ¥106.7 billion andmarketable securities were ¥1,445.6 billion as of March 31, 2013.
Liquid assets, which Toyota defines as cash and cash equivalents, time deposits, marketable debt securities
and its investment in monetary trust funds, increased during fiscal 2013 by ¥1,043.0 billion, or 18.1%, to¥6,804.5 billion.
Trade accounts and notes receivable, less allowance for doubtful accounts decreased during fiscal 2013 by¥28.1 billion, or 1.4%, to ¥1,971.6 billion. This decrease was due to a decrease in the volume of sales in the
fourth quarter of fiscal 2013.
Inventories increased during fiscal 2013 by ¥93.5 billion, or 5.8%, to ¥1,715.7 billion. This increase was due
mainly to the fluctuations in foreign currency translation rates.
Total finance receivables, net increased during fiscal 2013 by ¥2,344.0 billion, or 24.1%, to¥12,061.4 billion. This increase was due mainly to the fluctuations in foreign currency translation rates and anincrease in the number of financing contracts. As of March 31, 2013, finance receivables were geographically
distributed as follows: in North America 57.6%, in Europe 10.0%, in Japan 9.9%, in Asia 9.5% and in Other
13.0%.
Marketable securities and other securities investments, including those included in current assets, increased
during fiscal 2013 by ¥1,387.6 billion, or 26.5%, reflecting an increase in the fair values of common stocks andpurchase of marketable securities and security investments.
Property, plant and equipment increased during fiscal 2013 by ¥615.8 billion, or 9.9%, primarily reflecting
fluctuations in foreign currency translation rates and the increase in the capital expenditures, partially offset by
the impacts of depreciation charges during the year.
Accounts and notes payable decreased during fiscal 2013 by ¥128.8 billion, or 5.7%. This decrease was due
mainly to a decrease in production volume in the fourth quarter of fiscal 2013.
Accrued expenses increased during fiscal 2013 by ¥357.0 billion, or 19.5%. This increase was due mainly tothe charge for costs related to the settlement of the economic loss claims in the consolidated federal action in the
U.S. and the increase of product quality related expenses resulted from the weakening of the Japanese yen at theend of fiscal 2013 against other currencies in comparison to the prior fiscal year. Income taxes payable increased
during fiscal 2013 by ¥22.4 billion, or 16.8%, as a result of reflecting fluctuations in foreign currency translation
rates.
Toyota’s total borrowings increased during fiscal 2013 by ¥2,126.2 billion, or 17.7%. Toyota’s short-termborrowings consist of loans with a weighted-average interest rate of 2.31% and commercial paper with aweighted-average interest rate of 0.52%. Short-term borrowings increased during fiscal 2013 by ¥638.8 billion,or 18.5%, to ¥4,089.5 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 27.30%,
and maturity dates ranging from 2013 to 2050. The current portion of long-term debt increased during fiscal 201386

by ¥191.8 billion, or 7.6%, to ¥2,704.4 billion and the non-current portion increased by ¥1,295.5 billion, or
21.4%, to ¥7,337.8 billion. The increase in total borrowings resulted from an increase in medium-term notes. Asof March 31, 2013, approximately 40% of long-term debt was denominated in the U.S. dollars, 17% in theJapanese yen, 13% in the Australian dollars, and 30% in other currencies. Toyota hedges interest rate risk
exposure of fixed-rate borrowings by entering into interest rate swaps. There are no material seasonal variations
in Toyota’s borrowings requirements.
As of March 31, 2013, Toyota’s total interest bearing debt was 116.3% of Toyota Motor Corporation
shareholders’ equity, compared with 113.8% as of March 31, 2012.
The following table provides information for credit rating of Toyota’s short-term borrowing and long-term
debt from rating agencies, Standard & Poor’s Ratings Group (S&P), Moody’s Investors Services (Moody’s), andRating and Investment Information, Inc. (R&I), as of May 31, 2013. A credit rating is not a recommendation tobuy, 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.

Short-term borrowing . . . . .
Long-term debt . . . . . . . . . .

S&P

Moody’s

R&I

A-1+
AA-

P-1
Aa3

—
AA+

Toyota’s unfunded pension liabilities of Japanese plans decreased during fiscal 2013 by ¥48.6 billion, or8.8%, to ¥504.1 billion. On the other hand, the liabilities of foreign plans increased during fiscal 2013 by ¥30.1
billion, or 24.4%, to ¥153.9 billion. The unfunded amounts will be funded through future cash contributions by
Toyota or in some cases will be settled on the retirement date of each covered employee. The decrease in
unfunded pension liabilities of the Japanese plans as of the end of fiscal 2013 compared with the prior fiscal year
end reflects mainly an increase in pension assets due to rising equity security prices, despite an increase inpension benefit obligations resulted from a decline in discount rate. On the other hand, the increase in liabilities
of foreign plans reflects the increase in pension benefit obligations resulted from a decline in discount rate. Seenote 19 to the consolidated financial statements for further discussion.
Toyota’s treasury policy is to maintain controls on all exposures, to adhere to stringent counterparty credit
standards, and to actively 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 financial services operations
efficiently even if earnings are subject to short-term fluctuations. Toyota believes that it maintains sufficientliquidity for its present requirements and that by maintaining its high credit ratings, it will continue to be able toaccess 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, aswell as Toyota’s successful implementation of its business strategy.
5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES
Toyota believes that its long-term success depends on its ability to secure a leadership position with respect
to vehicle research and development.
Toyota’s research and development expenditures were approximately ¥807.4 billion in fiscal 2013,¥779.8 billion in fiscal 2012 and ¥730.3 billion in fiscal 2011.

87For this reason, Toyota is promoting next generation environmentally friendly, energy efficient, and safe
vehicle technology in its research and development. Toyota is making efforts to produce vehicles that arefriendly to the environment and human beings, with efforts focused in the following fields:•

further improvements in hybrid technologies (functions, costs, etc.) and subsequent environmental
contributions;•improvement in gasoline engine fuel economy and improvement of technology in connection with more
stringent emissions standards;•

promoting improvements in clean diesel engine functioning and fuel economy;•

development of electric vehicles, fuel-electric vehicles and other alternative fuel vehicles; and•development of technology designed to promote driving and vehicle safety.

Toyota’s belief is that the environment is one of the most important issues. Toyota is aiming to lower thevolume of carbon dioxide emissions at all stages of operations, including development, production, logistics,
usage, disposal and recycling of vehicles, as well as the reduction of environmental burdens. Toyota also utilizes
various energy resources as a substitute to oil, and has successfully developed a plug-in hybrid vehicle which canbe charged from domestic power supplies. Toyota is committed to realize the mass production of electricvehicles, the development of next-generation batteries, and the development of alternative fuel vehicles such as
biofuel and fuel-cell vehicles. Toyota aims to maintain its leadership position in environmental technology, andis responding to environmental issues, the representative example being the Prius, the hybrid car introduced to
the Japanese market in 1997.
In May 2010, Toyota invested in Tesla Motors, Inc. (“Tesla”) in the amount of $50 million as part of a basic
agreement with Tesla to implement a joint venture related to the development, technology, and production
systems of electric vehicles and their components. At the 26th International Battery, Hybrid and Fuel Cell
Electric Vehicle Symposium held in May 2012, Toyota announced the jointly developed electric vehicle, theRAV4 EV, which was released in California in summer 2012.
Toyota’s research and development activities focus on the environment, vehicle safety, information
technology and product development.
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 nextgeneration direct injection system and variable valve system for gasoline engines and the developmentof the next-generation ultra high pressure common 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 cell hybrid vehicles. The second-generation Prius that Toyota introduced in September 2003 features
a new hybrid system which decreases negative environmental impact while increasing power andperformance. Furthermore, the third-generation Prius was introduced in 2009, and broke the record for sales
by vehicle type which was previously held by the Corolla. The Aqua (called Prius c in the US), introduced in
December 2011 and sold in approximately 50 countries worldwide, is a world leader in fuel economy andlow pricing. In addition, Toyota’s cumulative sales of hybrid vehicles has exceeded 5 million units, which
contributed approximately 34 million ton reduction in CO2 emissions. In July 2007, Toyota developed the
Plug-in Hybrid Vehicle (“PHV”) and received certification from Japan’s Ministry of Land, Infrastructure,
Transport and Tourism (“MLIT”). PHV runs as an Electric Vehicle (“EV”) in short distances and runs as aregular hybrid vehicle in long distances. Tests are conducted in Japan, North America and Europe and in late2009, Toyota commenced its sale of PHV with lithium ion batteries to fleet vehicle users in Japan, North
America and Europe. Toyota also commenced its sale of PHV models in January 2012, which can be charged
88

from domestic power supplies 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 low-temperature startup performance and cruising distance, which had posed challenges topromoting its widespread use. Toyota believes that fuel cell vehicles will be strong eco-cars for future
generations. By 2015, Toyota plans to introduce sedan-type fuel cell vehicles at reasonable prices forcustomers in Japan, the United States and Europe where appropriate infrastructure is expected to be available.
To control increases in oil prices and reduce the consumption of oil, the proliferation of fuel alternatives to oilsuch as biofuel and natural gas is expanding in some countries. Toyota works towards the ongoing formationof a mobility society through the introduction to the market of low-ethanol content vehicles (“E10”), natural
gas vehicles and high-concentration flex-fuel vehicles (“FFV”) that are compatible with ethanol fuel, as wellas through research and development into other practical uses of oil alternatives and biofuels, such as research
into fuels that will not compete with food production, and into genetically modified organism (“GMO”)
technology in order to process sugarcane more efficiently.
•

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 aresuitable for recycling and designs that facilitate dismantling parts, and (2) research on effective
dismantling technology of end-of-life vehicles and use of recycle materials.

Toyota’s work in the area of vehicle safety is focused on the development of technologies designed toprevent accidents in the first instance, as well as the development of technologies that protect passengers andreduce 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 pre-collision system, 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 obstaclesin 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 infrastructureharmonized system. With the February 2003 introduction of the Harrier in Japan, Toyota became the first car
manufacturer to implement a pre-collision system in its automobiles. This advanced system utilizes pre-collision
sensors that use millimeter wave radar and cameras to detect objects presenting hazards, and in addition toalerting the driver to the danger of potential collisions, this system employs a brake assist mechanism that utilizes
power-assisted braking to minimize the speed on impact, and automatically applies the vehicle’s brakes when acollision is determined to be inevitable. In February 2004, Toyota introduced the pre-collision system for the firsttime in the United States by equipping the LS430 with the above features.
In September 2006, at the time of introduction of LS460 in Japan, Toyota established the world’s firstenhanced pre-collision 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 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 is facing.
In addition, in 2011, Toyota established the Collaborative Safety Research Center aimed at reducing thenumber of traffic accident related deaths through cooperation with various hospitals and universities in North
America. Toyota is greatly fortifying its efforts toward product safety and quality, and this research center is partof these efforts. Established within the same research center is the Toyota Technical Center (“TTC”), which is89the research and development center of Toyota Motor Engineering & Manufacturing North America, Inc. At the
TTC, Toyota’s technicians based in Japan also take part in planning, and perform research focused on reducing
the risk of distracted or impaired driving behaviors, as well as the protection of vulnerable demographics such as
young children and the elderly. Toyota is also promoting the spread of safe vehicle technologies, and is
implementing analyses of traffic accident and driver behavior data. Toyota is planning to invest in the amount of
50 million dollars over the next 5 years, starting from 2011.
In order to promote further streamlining of the global external decision-making process with respect to thedevelopment of vehicle safety technologies, Toyota appointed a Chief Safety Technology Officer (“CSTO”) in
2011, who will execute a general integration of safety technology within Toyota’s technology department.
Toyota’s product development program uses a series of methods which are generally intended to promote
timely and appropriate 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 production engineering processes, and•using simulation technology for production design and evaluation.

Toyota carefully analyzes patents and the need for patents in each area of research to formulate more
effective research and development strategies. Toyota identifies research and development projects in which it
should acquire patents, and files relevant applications as necessary to help build a strong global patent portfolio.
In addition, Toyota wishes to contribute to sustainable mobility by promoting the spread of technologies
with environmental and safety benefits. This is why Toyota takes an open stance to patent licensing, and grants
licenses when appropriate terms are met. For example, in March 2004, Toyota and Ford Motor Company enteredinto licensing agreements for patents related to hybrid systems and emissions purification. In addition, in March
2010, Toyota and Mazda Motor Corporation entered into a licensing agreement regarding the supply of hybrid
system technology.
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 special purpose entities for its financial
services operations. Toyota is considered the primary beneficiary of these special purpose entities and therefore
consolidates them. Toyota has not entered into any off-balance sheet securitization transactions during fiscal
2013.
Lending Commitments
Credit Facilities with Credit Card Holders
Toyota’s financial services operations issue credit cards to customers. As customary for credit cardbusinesses, Toyota maintains credit facilities with holders of credit cards issued by Toyota. These facilities are90

used upon each holder’s requests up to the limits established on an individual holder’s basis. Although loans
made to customers through these facilities are not secured, for the purposes of minimizing 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 ¥245.2 billion as of March 31, 2013.
Credit Facilities with Dealers
Toyota’s financial services operations maintain credit facilities with dealers. These credit facilities may be
used for business acquisitions, facilities refurbishment, real estate purchases, and working capital requirements.
These loans are typically collateralized with liens on real estate, vehicle inventory, and/or other dealership assets,
as appropriate. Toyota obtains a personal guarantee from the dealer or corporate guarantee from the dealershipwhen 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
operations also provide 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 capital requirements. Toyota’s outstanding credit facilities withdealers totaled ¥1,795.8 billion as of March 31, 2013.
Guarantees
Toyota enters into certain guarantee contracts with its dealers to guarantee customers’ payments of theirinstallment payables that arise from installment contracts between customers and Toyota dealers, as and whenrequested by Toyota dealers. Guarantee periods are set to match the maturity of installment payments, and as ofMarch 31, 2013, 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, 2013 is ¥1,849.4 billion. Liabilities forthese guarantees of ¥6.5 billion have been provided as of March 31, 2013. Under these guarantee contracts,
Toyota is entitled to recover any amounts paid by 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 otherobligations, including amounts maturing in each of the next five years, see notes 13, 22 and 23 to theconsolidated 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. Thesearrangements may contain fixed/minimum quantity purchase requirements. Toyota enters into such arrangements
to facilitate an adequate supply of these materials and services.

91

The following tables summarize Toyota’s contractual obligations and commercial commitments as ofMarch 31, 2013.

Less than
1 year

Total

Contractual Obligations:Short-term borrowings (note 13)
Loans . . . . . . . . . . . . . . . . . . . . . . ¥ 1,062,233
Commercial paper . . . . . . . . . . . .
3,027,295
Long-term debt* (note 13) . . . . . . . . .
10,020,853
Estimated amount of interest expense
on long-term debt . . . . . . . . . . . . . .
757,581
Capital lease obligations (note 13) . . .
21,399Non-cancelable operating leaseobligations (note 22) . . . . . . . . . . . .
61,877
Commitments for the purchase ofproperty, plant and other assets(note 23) . . . . . . . . . . . . . . . . . . . . .
203,901
Total . . . . . . . . . . . . . . . . . .

¥15,155,139¥1,062,233
3,027,295
2,700,333

Yen in millions
Payments Due by Period
1 to 33 to 5
years
years

¥

—
—
3,788,631¥

5 years
and after

— ¥
—
—
—
2,545,775
986,114

220,552
4,095

299,299
4,839

126,6443,217

111,086
9,248

11,29917,386

11,701

21,491

57,970

9,902

3,761

132,268¥7,083,777¥4,120,057¥2,691,098¥1,260,207* “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. Seenote 16 to the consolidated financial statements for further discussion.
Toyota expects to contribute ¥54,094 million domestically and ¥8,688 million overseas to its pension plansin fiscal 2014.

Total
Amounts
Committed

Yen in millions
Amount of Commitment Expiration Per PeriodLess than
1 to 33 to 5
5 years
1 yearyears
years
and after

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

¥1,849,493¥813,754¥503,822¥397,108¥134,809

Total Commercial Commitments . . . . . . .

¥1,849,493¥813,754¥503,822¥397,108¥134,809

5.G SAFE HARBOR
All information that is not historical in nature disclosed under “— Off-Balance 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.

92

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
6.A DIRECTORS AND SENIOR MANAGEMENTIn March 2011, Toyota unveiled its “Toyota Global Vision”. In order to realize the Global Vision, Toyota
implemented a new management organization highlighted by a more streamlined board of directors and areduced number of layers in the executive decision-making structure.
In April 2013, Toyota implemented organizational changes in order to further increase “the speed ofdecision-making” through “clarification of operations and earnings responsibility.” Specifically, Toyota’s
automotive business was split into four business units. These business units are “Lexus International,” which
covers the Lexus business, “Toyota No. 1,” which covers North America, Europe and Japan, “Toyota No. 2,”
which covers China, Asia & Middle East, East Asia & Oceania, Africa and Latin America & Caribbean and“Unit Center,” which covers all unit-related operations. Toyota’s executive vice presidents are assigned to each
operation, and each are responsible for the operations and earnings of the respective business unit. Furthermore,in order to achieve sustainable growth through the continuous development of “even-better cars” that exceed
customer expectations around the world, and to realize the “Toyota Global Vision,” the “TNGA Planning
Division,” an organization directly under Toyota’s top management, was established in order to rapidly promote
the implementation of the TNGA.
Toyota believes it is crucial for it to be led by directors and senior management who deeply understand, andcan effectively implement, Toyota’s strengths — the monozukuri spirit of conscientious manufacturing and thegenchi genbutsu principle of placing emphasis on on-site operations with a go-and-see attitude for continued
improvement and problem solving. At the 109th Ordinary General Shareholders’ Meeting held in June 2013,
three outside directors were appointed in order to further reflect the opinions of those from outside the company
in management’s decision-making process. Toyota has seven audit & supervisory board members, four of whom
are outside audit & supervisory board members.
Name(Date of birth)

Position

Brief career summary and important concurrent duties

Number of
SharesTakeshi Uchiyamada Chairman of the Board 1969 Joined Toyota Motor Corporation (“TMC”)(August 17, 1946)
1998 Director of TMC
2001 Managing Director of TMC
2003 Senior Managing Director of TMC
2005 Executive Vice President of TMC
2012 Vice Chairman of TMC
2013 Chairman of TMC

43,739Akio Toyoda(May 3, 1956)

4,588,975

President,
Member of the Board

1984 Joined TMC
2000 Director of TMC
2002 Managing Director of TMC
2003 Senior Managing Director of TMC
2005 Executive Vice President of TMC
2009 President of TMC(important concurrent duties)
Corporate Auditor of Toyota Boshoku Corporation
Chairman and CEO of Toyota Motor North
America, Inc.
Chairman of Toyota Motor Sales & Marketing
Corporation
Chairman of Japan Automobile Manufacturers
Association, Inc.

93

Name
(Date of birth)

Position

Brief career summary and important concurrent duties

Satoshi Ozawa(August 5, 1949)

Executive Vice
President,
Member of the Board

Nobuyori Kodaira(March 18, 1949)

Executive Vice
President,
Member of the Board

Mitsuhisa Kato
(March 2, 1953)

Executive Vice
President,
Member of the Board

Masamoto Maekawa(October 17, 1949)

Executive Vice
President,
Member of the Board

1974 Joined Toyota Motor Sales Co., Ltd.
2003 Managing Officer of TMC
2007 Senior Managing Director of TMC
2010 Executive Vice President of TMC(important concurrent duties)
Chairman of Toyota Motor Europe NV/SA
Vice Chairman of Toyota Motor North America,
Inc.
Chairman of Toyota Motor Engineering &Manufacturing North America, Inc.
1972 Joined Ministry of International Trade andIndustry
2004 Director-General, Agency for Natural
Resources and Energy
2006 Retired from Director-General, Agency for
Natural Resources and Energy
2008 Advisor of TMC
2009 Managing Officer of TMC
2010 Senior Managing Director of TMC
2011 Director and Senior Managing Officer of
TMC
2012 Executive Vice President of TMC(important concurrent duties)
Director of KDDI CORPORATION
1975 Joined TMC
2004 Managing Officer of TMC
2006 Toyota Technocraft Co., Ltd. President
2006 Advisor of TMC
2007 Retired from Advisor of TMC
2010 Retired from Toyota Technocraft Co., Ltd.
President
2010 Senior Managing Director of TMC
2011 Senior Managing Officer of TMC
2012 Executive Vice President of TMC(important concurrent duties)
Chairman of Toyota Motor Engineering &Manufacturing (China) Co., Ltd.
1973 Joined Toyota Motor Sales Co., Ltd.
2003 Managing Officer of TMC
2007 Toyota Administa Corporation President
2007 Advisor of TMC
2009 Retired from Toyota Administa Corporation
President
2009 Senior Managing Director of TMC
2011 Senior Managing Officer of TMC
2012 Executive Vice President of TMC(important concurrent duties)
President and Representative Director of Toyota
Marketing Japan Corporation
94

Number of
Shares33,90012,00010,05024,000Name(Date of birth)

Position

Yasumori Ihara
Executive Vice
(November 17, 1951)
President,
Member of the Board

Brief career summary and important concurrent duties

1975 Joined TMC
2004 Managing Officer of TMC
2007 Toyota Transportation Co., Ltd. President
2007 Advisor of TMC
2008 Retired from Advisor of TMC
2009 Retired from Toyota Transportation Co., Ltd.
President
2009 Senior Managing Director of TMC
2011 Director and Senior Managing Officer of
TMC
2013 Executive Vice President of TMC

Number of
Shares

10,000(important concurrent duties)
Chairman of Toyota Motor Technical Center(China) Co., Ltd.
Executive Vice Chairman of FAW Toyota Research& Development Co., Ltd.
Seiichi Sudo
(April 21, 1951)

Executive Vice
President,
Member of the Board

1974 Joined TMC
2003 Managing Officer of TMC
2005 President of Toyota Motor Manufacturing
North America, Inc.
2006 Toyota Motor Manufacturing North America,
Inc. and Toyota Technical Center U.S.A., Inc.
merged and became Toyota Motor Engineering& Manufacturing North America, Inc.
2006 President of Toyota Motor Engineering &Manufacturing North America, Inc.
2008 President of Toyota Motor Kyushu, Inc.
2008 Advisor of TMC
2008 Retired from Toyota Motor Engineering &Manufacturing North America, Inc. President
2010 Retired from Advisor of TMC
2012 Retired from Toyota Motor Kyushu, Inc.
President
2012 Senior Managing Officer of TMC
2013 Executive Vice President of TMC

12,300(important concurrent duties)
Chairman of Toyota Motor (Changshu) Auto Parts
Co., Ltd.
Mamoru Furuhashi(January 3, 1950)

Member of the Board

1973 Joined TMC
2003 Managing Officer of TMC
2007 Senior Managing Director of TMC
2011 Director and Senior Managing Officer of
TMC
2013 Retired from Senior Managing Officer ofTMC

95

30,305Name(Date of birth)

Number of
SharesPosition

Brief career summary and important concurrent duties

Kiyotaka Ise(March 2, 1955)

Member of the Board

9,600

Koei Saga(February 1, 1951)

Member of the Board

1980 Joined TMC
2007 Managing Officer of TMC
2013 Senior Managing Officer of TMC
2013 Director and Senior Managing Officer of
TMC(important concurrent duties)
Chairman of Toyota Motorsport GmbH
Corporate Auditor of TOKAI RIKA CO., LTD.
1977 Joined TMC
2008 Managing Officer of TMC
2012 Senior Managing Officer of TMC
2013 Director and Senior Managing Officer of
TMC(important concurrent duties)
Corporate Auditor of JTEKT Corporation

Shigeki Terashi(February 16, 1955)

Member of the Board

7,400

Yoshimasa Ishii(April 22, 1953)

Member of the Board

1980 Joined TMC
2008 Managing Officer of TMC
2008 Executive Vice President of Toyota Motor
Engineering & Manufacturing North America,Inc.
2011 President and COO of Toyota Motor
Engineering & Manufacturing North America,Inc.
2012 President and CEO of Toyota Motor
Engineering & Manufacturing North America,Inc.
2012 President and COO of Toyota Motor North
America, Inc.
2013 Retired from Toyota Motor Engineering &Manufacturing North America, Inc. President andCEO2013 Retired from Toyota Motor North America,
Inc. President and COO
2013 Senior Managing Officer of TMC
2013 Director and Senior Managing Officer of
TMC(important concurrent duties)
Vice President of Calty Design Research Inc.
1976 Joined Toyota Motor Sales Co., Ltd.
2005 Managing Officer of TMC
2009 Senior Managing Director of TMC
2011 Senior Managing Officer of TMC
2013 Advisor of TMC
2013 President of Toyota Financial Services
Corporation2013 Director of TMC(important concurrent duties)
President of Toyota Financial Services Corporation
Chairman and CEO of Toyota Financial Service
America
96

6,300

8,400

Name
(Date of birth)Ikuo Uno(January 4, 1935)

Position

Brief career summary and important concurrent duties

Member of the Board

1959 Joined Nippon Life Insurance Company
1986 Director of Nippon Life Insurance Company
1988 Managing Director of Nippon Life Insurance
Company
1992 Senior Managing Director of Nippon Life
Insurance Company
1994 Vice President and Representative Director of
Nippon Life Insurance Company
1997 President and Representative Director of
Nippon Life Insurance Company
2005 Chairman and Representative Director of
Nippon Life Insurance Company
2011 Advisor and Director of Nippon Life
Insurance Company
2011 Advisor of Nippon Life Insurance Company
2013 Director of TMC

Number of
Shares—(important concurrent duties)
Advisor of Nippon Life Insurance Company
Outside Director of Fuji Kyuko Co., Ltd.
Outside Corporate Auditor of Odakyu Electric
Railway Co., Ltd.
Outside Corporate Auditor of West Japan Railway
Company
Outside Corporate Auditor of Tohoku ElectricPower Co., Inc.
Outside Director of Panasonic Corporation
Outside Corporate Auditor of Sumitomo Mitsui
Financial Group, Inc.
Haruhiko Kato
(July 21, 1952)

Member of the Board

1975 Joined Ministry of Finance (Japan)
2007 Director of Taxation Bureau, Ministry of
Finance (Japan)
2009 Director-General of National Tax
Administration Agency
2010 Retired from National Tax Administration
Agency Director-General2011 Senior Managing Director of Japan Securities
Depository Center, Inc.
2011 President and CEO of Japan Securities
Depository Center, Inc.
2013 Director of TMC(important concurrent duties)
President and CEO of Japan Securities Depository
Center, Inc.

97

—

Name
(Date of birth)

Number of
SharesPosition

Brief career summary and important concurrent duties

Mark. T. Hogan(May 15, 1951)

Member of the Board

1973 Joined General Motors Corporation
2002 Vice President of General Motors Group
2004 Retired from General Motors Group Vice
President
2004 President of Magna International Inc.
2007 Retired from Magna International Inc.
President
2008 President and CEO of Vehicle Production
Group LLC
2010 Retired from Vehicle Production Group LLC
President and CEO
2010 President of Dewey Investments LLC
2013 Director of TMC(important concurrent duties)
President of Dewey Investments LLC—

Yoichiro Ichimaru(October 10, 1948)

Full-time Audit &Supervisory Board
Member1971 Joined Toyota Motor Sales Co., Ltd.
2001 Director of TMC
2003 Managing Officer of TMC
2005 Senior Managing Director of TMC
2009 Executive Vice President of TMC
2011 Audit & Supervisory Board Member of TMC

25,568Masaki Nakatsugawa Full-time Audit &(January 29, 1953)
Supervisory Board
Member1976 Joined Toyota Motor Sales Co., Ltd.
2002 Dispatched to Toyota Motor Thailand Co.,
Ltd.
2004 General Manager for Accounting Div. ofTMC
2006 Audit & Supervisory Board Member of TMC

5,800

Masahiro Kato
Full-time Audit &(September 17, 1952)
Supervisory Board
Member1975 Joined TMC
2009 Toyota Motor (China) Investment Co., Ltd.
President
2009 Managing Officer of TMC
2011 Retired from Toyota Motor (China)
Investment Co., Ltd. President
2011 Audit & Supervisory Board Member of TMC

6,600

Yoichi Morishita(June 23, 1934)

1957 Joined Matsushita Electric Industrial Co., Ltd.
1987 Director of the same
1989 Managing Director of the same
1990 Senior Managing Director of the same
1992 Executive Vice President of the same
1993 President of the same
2000 Chairman of the same2006 Outside Audit & Supervisory Board Memberof TMC
2006 Executive Advisor of Matsushita ElectricIndustrial Co., Ltd.
2008 Name of Matsushita Electric Industrial Co.,
Ltd. was changed to Panasonic Corporation
2008 Executive Advisor of Panasonic Corporation2012 Special Corporate Advisor of Panasonic
Corporation(important concurrent duties)
Special Corporate Advisor of Panasonic
Corporation
Outside Corporate Auditor of The Kansai ElectricPower Co., Inc.

—

Outside Audit &Supervisory Board
Member98

Name(Date of birth)

Position

Brief career summary and important concurrent duties

Akishige Okada(April 9, 1938)

Outside Audit &Supervisory Board
MemberKunihiro Matsuo(September 13, 1942)

Outside Audit &Supervisory Board
MemberYoko Wake(November 18, 1947)

Outside Audit &Supervisory Board
Member1963 Joined Mitsui Bank, Ltd.
1991 Director of Mitsui Taiyo Kobe Bank, Ltd.
1992 Director of Sakura Bank, Ltd.
1995 Managing Director of Sakura Bank, Ltd.
1996 Senior Managing Director of the same
1997 President of the same2001 Chairman of Sumitomo Mitsui Banking
Corporation
2002 Chairman of Sumitomo Mitsui Financial Group
Inc. (concurrent)
2005 Retired from Chairman of Sumitomo Mitsui
Financial Group Inc.
2005 Advisor of Sumitomo Mitsui Banking
Corporation
2006 Outside Audit & Supervisory Board Member of
TMC
2010 Honorary Advisor of Sumitomo Mitsui Banking
Corporation(important concurrent duties)
Honorary Advisor of Sumitomo Mitsui Banking
Corporation
Outside Corporate Auditor of Mitsui Fudosan Co.,Ltd.
Outside Director of Daicel Corporation
Outside Corporate Auditor of YOMIURI LAND CO.,LTD.
2004 Supreme Public Prosecutors Office ProsecutorGeneral
2006 Retired from Supreme Public Prosecutors Office
Prosecutor-General
2006 Registered as Attorney2007 Outside Audit & Supervisory Board Member of
TMC(important concurrent duties)
Outside Corporate Auditor of MITSUI & CO., LTD.
Outside Corporate Auditor of KOMATSU LTD.
Outside Corporate Auditor of Tokyo Stock Exchange,
Inc.
Outside Corporate Auditor of BROTHER
INDUSTRIES, LTD.
Outside Director of Japan Exchange Group, Inc.
Outside Corporate Auditor of Seven Bank, Ltd.
Outside Corporate Auditor of TV TOKYO Holdings
Corporation
1970 Joined the Fuji Bank, Limited
1973 Retired from the same1977 Instructor of Faculty of Business and Commerceof Keio University
1982 Associate Professor of the same
1993 Professor of the same2011 Outside Audit & Supervisory Board Member of
TMC
2013 Professor Emeritus of Faculty of Business andCommerce of Keio University
99

Number of
Shares———None of the persons listed above was selected as director, audit & supervisory board member or member ofsenior management pursuant to an arrangement or understanding with Toyota’s major shareholders, customers,
suppliers or others.
6.B COMPENSATION
The aggregate amount of remuneration, including bonuses but excluding stock options, accrued for all
directors and audit & supervisory board members as a group by Toyota for services in all capacities during fiscal
2013 was approximately ¥1,533 million. Directors and audit & supervisory board members of Toyota Motor
Corporation receive year-end bonuses, the aggregate amount of which is approved at Toyota Motor
Corporation’s ordinary general shareholders’ meeting and is based on Toyota Motor Corporation’s financial
performance for the fiscal year. The amounts of the bonuses paid to individual directors and audit & supervisoryboard members are then determined based upon discussions at a meeting of Toyota Motor Corporation’s board of
directors and the meeting of audit & supervisory board members.
In addition to the above form of compensation, Toyota has enacted stock option plans every year from 2006
until 2010. Under the 2006 plan, Toyota issued to its directors and audit & supervisory board members stockacquisition rights to purchase 302,000 shares of common stock at an exercise price of ¥6,140 and with an
expiration date of July 31, 2014. Under the 2007 plan, Toyota issued to its directors and audit & supervisoryboard members stock acquisition rights to purchase 322,000 shares of common stock at an exercise price of¥7,278 and with an expiration date of July 31, 2015. Under the 2008 plan, Toyota issued to its directors andaudit & supervisory board members stock acquisition rights to purchase 335,000 shares of common stock at an
exercise price of ¥4,726 and with an expiration date of July 31, 2016. Under the 2009 plan, Toyota issued to its
directors and audit & supervisory board members stock acquisition rights to purchase 440,000 shares of common
stock at an exercise price of ¥4,193 and with an expiration date of July 31, 2017. Under the 2010 plan, Toyota
issued to its directors stock acquisition rights to purchase 400,000 shares of common stock at an exercise price of¥3,183 and with an expiration date of July 31, 2018. See “Share Ownership — Stock Options” for a moredetailed discussion of Toyota’s stock option plans.
Toyota’s Annual Securities Report filed with the Kanto Local Bureau of Finance on June 24, 2013,contained the following information concerning compensation in fiscal 2013 on a consolidated basis for directors
and audit & supervisory board members whose total compensation exceeded ¥100 million during such period:- Fujio Cho, Director: ¥159 million (¥105 million in base compensation, ¥50 million in bonus, and¥3 million in stock options)- Takeshi Uchiyamada, Director: ¥111 million (¥79 million in base compensation ¥28 million in bonus, and¥3 million in stock options)- Akio Toyoda, Director: ¥184 million (¥100 million in base compensation, ¥81 million in bonus, and¥3 million in stock options)
The amounts above were recorded as expenses in fiscal 2013. The stock options are the fair market value
calculated based on certain conditions as of the grant date.
6.C BOARD PRACTICES
Toyota’s articles of incorporation provide for a board of directors of not more than 20 members and for not
more than seven audit & supervisory board members. Shareholders elect the directors and audit & supervisoryboard members at the general shareholders’ meeting. The normal term of office of a director is one year and of
an audit & supervisory board member is four years. Directors and audit & supervisory board members may serve
any number of consecutive terms.
The board of directors may appoint one Chairman of the Board and one President, as well as one or more
Vice Chairmen of the Board and Executive Vice Presidents. The board of directors elects, pursuant to its
100resolutions, one or more Representative Directors. Each Representative Director represents Toyota generally inthe conduct of its affairs. The board of directors has the ultimate responsibility for the administration of Toyota’s
affairs. None of Toyota’s directors is party to a service contract with Toyota or any of its subsidiaries thatprovides for benefits upon termination of employment.
Under the Corporation Act and Toyota’s articles of incorporation, Toyota may, by a resolution of its boardof directors, exempt Directors (including former Directors) from their liabilities to Toyota arising in connection
with their failure to execute their duties within the limits stipulated by laws and regulations. In addition, Toyota
may enter into a liability limitation agreement with each outside director which limits the maximum amount of
their liabilities owed to Toyota arising in connection with their failure to execute their duties to an amount equal
to the minimum liability limit amount prescribed in the laws and regulations.
Under the Corporation Act, Toyota must have at least three audit & supervisory board members. At least
half of the audit & supervisory board members are required to be persons who have not been a Director,
accounting counselor (or if an accounting counselor is a judicial person, a member of such judicial person who isin charge of its affairs), executive officer, general manager or employee of Toyota or any of its subsidiaries at
any time during the past. The audit & supervisory board members may not at the same time be directors,
accounting counselor (in case that an accounting counselor is a judicial person, a member of such judicial person
who is in charge of its affairs), executive officers, general managers or employees of Toyota or any of its
subsidiaries. Together, these audit & supervisory board members form an audit & supervisory board. The audit &supervisory board members have the duty to examine the financial statements and business reports which aresubmitted by the board of directors to the general shareholders’ meeting. The audit & supervisory board
members also monitor the administration of Toyota’s affairs by the directors. Audit & supervisory board
members are not required to be, and Toyota’s audit & supervisory board members are not, certified public
accountants. They are required to participate in meetings of the board of directors but are not entitled to vote.
Under the Corporation Act and Toyota’s articles of incorporation, Toyota may, by a resolution of its boardof directors, exempt audit & supervisory board members (including former audit & supervisory board members)from their liabilities to Toyota arising in connection with their failure to execute their duties within the limits
stipulated by laws and regulations. In addition, Toyota may enter into a liability limitation agreement with eachoutside audit & supervisory board member which limits the maximum amount of their liabilities owed to Toyota
arising in connection with their failure to execute their duties to an amount equal to the minimum liability limit
amount prescribed in the laws and regulations.
Toyota does not have a remuneration committee.
6.D EMPLOYEESThe total number of Toyota employees, on a consolidated basis, as reported in Toyota’s annual Japanese
securities report filed with the Director of the Kanto Local Finance Bureau was 333,498 at March 31, 2013,
325,905 at March 31, 2012 and 317,716 at March 31, 2011. The following tables set forth a breakdown of
persons employed by business segment and by geographic location at March 31, 2013.
Segment

Number of
Employees

Automotive . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial services . . . . . . . . . . . . . . . . . . . . .
All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unallocated . . . . . . . . . . . . . . . . . . . . . . . . . .

293,020
8,989
26,7804,709

Total company . . . . . . . . . . . . . . . . . . . . . . . .

333,498

Location

Number of
Employees

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

196,498
40,313
19,30452,73324,650333,498* “Other” consists of Central and South America,
Oceania, Africa and the Middle East, etc.
101

Most regular employees of Toyota Motor Corporation and its consolidated subsidiaries in Japan, other thanmanagement, are required to become members of the labor unions that comprise the Federation of All Toyota
Workers’ Unions. Approximately 87% of Toyota Motor Corporation’s regular employees in Japan are membersof this union.
In Japan, basic wages and other working conditions are negotiated annually. In addition, in accordance withJapanese national custom, each employee is also paid a semi-annual bonus. Bonuses are negotiated at the time of wage
negotiations and are based on Toyota’s financial results, prospects and other factors. The average wage increases per
employee, excluding bonuses, in Japan have been approximately 2.1% per year for the past five fiscal years.
In general, Toyota considers its labor relations with all of its workers to be good. However, Toyota iscurrently a party to, and otherwise from time to time experiences, labor disputes in some of the countries inwhich it operates. Toyota does not expect any disputes to which it is currently a party to materially affectToyota’s consolidated financial position.
Toyota’s average number of temporary employees on a consolidated basis was 83,190 during fiscal 2013.
6.E SHARE OWNERSHIP
For information on the number of shares of Toyota’s common stock held by each director and audit &supervisory board member as of June 2013, see “— Directors and Senior Management”. Each such director andaudit & supervisory board member owns less than one percent of the issued and outstanding shares of common stockof Toyota. The shares held by each director and audit & supervisory board member do not include options that are
exercisable for shares of Toyota’s common stock. For a description of these options, see “— Stock Options” below.
None of Toyota’s shares of common stock entitles the holder to any preferential voting rights.
Stock Options
Toyota enacted stock option plans every year from 2006 until 2010. Toyota will not enact any such plan
after 2011. The plans for which stock options or stock acquisition rights are currently exercisable or will become
exercisable in the future were approved by Toyota’s shareholders in June of 2006, 2007, 2008, 2009 and 2010.
Under the 2006 plan, Toyota issued stock acquisition rights to purchase 3,176,000 shares of common stock to its
directors and 580 officers and employees, including directors, officers and employees of its subsidiaries and one
Toyota affiliated company. Under the 2007 plan, Toyota issued stock acquisition rights to purchase 3,264,000
shares of common stock to its directors and 579 officers and employees, including directors, officers andemployees of its subsidiaries and one Toyota affiliated company. Under the 2008 plan, Toyota issued stockacquisition rights to purchase 3,494,000 shares of common stock to its directors and 597 officers and employees,
including directors, officers and employees of its subsidiaries and one Toyota affiliated company. Under the2009 plan, Toyota issued stock acquisition rights to purchase 3,492,000 shares of common stock to its directors
and 615 officers and employees, including directors, officers and employees of its subsidiaries and one Toyota
affiliated company. Under the 2010 plan, Toyota issued stock acquisition rights to purchase 3,600,000 shares ofcommon stock to its directors and officers and employees, including directors, officers and employees of its
subsidiaries and one Toyota affiliated company.
Pursuant to the provisions of the 2006, 2007, 2008, 2009 and 2010 plans, stock acquisition rights may be
exercised during a six-year period that starts two years from the date of grant. The exercise price of each stockacquisition right is 1.025 times the closing price of Toyota’s common stock on the Tokyo Stock Exchange on thedate of grant. The 2006, 2007, 2008, 2009 and 2010 plans provide that each director will be granted no more than
400 and no less than 300 stock acquisition rights, and each eligible officer or employee will be granted no morethan 200 and no less than 20 stock acquisition rights. For each of the 2006, 2007, 2008, 2009 and 2010 plans, 100
shares will be issued or delivered upon the exercise of each stock acquisition right. The options are granted as ofearly August of each year for each plan.
102

An option holder who retires while one’s options are still exercisable retains the right to exercise one’s
options until the expiration of the exercise period described above. However, an option holder’s right to purchasecommon stock under each plan lapses automatically upon one’s death or upon taking position such as in the
management with a competitor.
The following table summarizes information for options and the incentive plan outstanding and exercisable
at March 31, 2013:

Exercise price range(Yen)¥3,183 – 5,000 . . . . . . . . .
5,001 – 7,278 . . . . . . . . .

Number ofshares7,480,000
3,369,000

Outstanding
WeightedWeightedaverage
average
exercise
exercise
price
price
(Yen)
(U.S. dollars)¥4,068
6,774

$43
72

Weightedaverageremaininglife(Years)Number ofshares4.31
1.89

7,480,000
3,369,000

Exercisable
WeightedWeightedaverage
average
exercise
exercise
price
price
(Yen)
(U.S. dollars)¥4,068
6,774

$43
72

Toyota also has an employee stock ownership association in Japan for employees and full time and part timecompany advisors. Members of the employee stock ownership association set aside certain amounts from theirmonthly salary and bonuses to purchase Toyota’s common stock through the employee stock ownershipassociation. As of March 31, 2013, the employee stock ownership association held 17,130,363 shares of Toyota’scommon stock.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
7.A MAJOR SHAREHOLDERS
As of March 31, 2013, 3,447,997,492 shares of Toyota’s common stock were issued, out of which,
280,568,824 shares were treasury stock and 3,167,428,668 shares were outstanding. Beneficial ownership ofToyota’s common stock in the table below was prepared from information known to Toyota or that could beascertained from public filings, including filings made by Toyota’s shareholders regarding their ownership ofToyota’s common stock under the Financial Instruments and Exchange Law of Japan.
Under the Financial Instruments and Exchange Law, any person who becomes, beneficially and solely or
jointly, a holder, including, but not limited to, a deemed holder who manages shares for another holder pursuant
to a discretionary investment agreement, of more than 5% of the total issued shares of a company listed on a
Japanese stock exchange (including ADSs representing such shares) must file a report concerning theshareholding with the Director of the relevant local finance bureau. A similar report must be filed, with certain
exceptions, if the percentage of shares held by a holder, solely or jointly, of more than 5% of the total issued
shares of a company increases or decreases by 1% or more, or if any change to a material matter set forth in any
previously filed reports occurs.
Based on information known to Toyota or can be ascertained from public filings, the following table sets
forth the beneficial ownership of holders of more than 5% of Toyota’s common stock as of the most recent
practicable date.

Name of Beneficial Owner

Toyota Industries Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of
Shares(in thousands)

Percentage ofSharesIssued218,515

6.34

According to The Bank of New York Mellon, depositary for Toyota’s ADSs, as of March 31, 2013,82,399,279 shares of Toyota’s common stock were held in the form of ADRs and there were 2,097 ADR holdersof record in the United States. According to Toyota’s register of shareholders, as of March 31, 2013, there were103

628,902 holders of common stock of record worldwide. As of March 31, 2013, there were 345 record holders of
Toyota’s common stock with addresses in the United States, whose shareholdings represented approximately
14.2% of the issued common stock on that date. Because some of these shares were held by brokers or othernominees, the number of record holders with addresses in the United States might not fully show the number ofbeneficial owners in the United States.
None of Toyota’s shares of common stock entitles the holder to any preferential voting rights.
To the extent known to Toyota, Toyota is not owned or controlled, directly or indirectly, by anothercorporation, any foreign government or any natural or legal person.
Toyota knows of no arrangements the operation of which may at a later time result in a change of control.
7.B RELATED PARTY TRANSACTIONSBusiness Relationships
Toyota purchases materials, supplies and services from numerous suppliers throughout the world in theordinary course of business, including Toyota’s affiliated companies accounted for by the equity method andthose firms with which certain members of Toyota’s board of directors are affiliated. Toyota purchased materials,
supplies and services from these affiliated entities in the amount of ¥4,020.1 billion in fiscal 2013. Toyota also
sells its products and services to Toyota’s affiliated companies accounted for by the equity method and firms
with which certain members of Toyota’s board of directors are affiliated. Toyota sold products and services tothese affiliated entities in the amount of ¥1,926.8 billion in fiscal 2013. See note 12 of Toyota’s consolidated
financial statements for additional information regarding Toyota’s investments in and transactions with affiliatedcompanies.
Loans
Toyota regularly has trade accounts and other receivables by, and accounts payable to, Toyota’s affiliatedcompanies accounted for by the equity method and firms with which certain members of Toyota’s board of
directors are affiliated. Toyota had outstanding trade accounts and other receivables by these affiliated entities in
the amount of ¥252.7 billion as of March 31, 2013. Toyota had outstanding trade accounts and other payables tothese affiliated entities in the amount of ¥592.0 billion as of March 31, 2013.
Toyota, from time to time, provides short- to medium-term loans to its affiliated companies, as well as loans
under a loan program established by certain subsidiaries to assist their executives and directors with the purchaseof homes. As of March 31, 2013, an aggregate amount of ¥1.1 billion in loans was outstanding to its affiliatedcompanies accounted for by the equity method. As of March 31, 2013, an aggregate amount of ¥26.5 billion inloans was outstanding to those of its affiliated companies not accounted for by the equity method, which are 20%
to 50% owned by Toyota. As of March 31, 2013, the largest loan outstanding to any such affiliated company
accounted for by the equity method was a loan of ¥1.0 billion at a fixed rate of 0.46%. Toyota believes that eachof these loans was entered into in the ordinary course of business.
7.C INTERESTS OF EXPERTS AND COUNSEL
Not applicable.
ITEM 8. FINANCIAL INFORMATION
8.A CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
1-3. Consolidated Financial Statements. Toyota’s audited consolidated financial statements are included under“Item 18 — Financial Statements”. Except for Toyota’s consolidated financial statements included under
Item 18, no other information in this annual report has been audited by Toyota’s auditors.
104

4.

Not applicable.

5.

Not applicable.

6.

Export Sales. See “Operating and Financial Review and Prospects — Operating Results — Overview —Geographic Breakdown”.

7.

Legal and Arbitration Proceedings. See “Information on the Company — Business Overview — Legal
Proceedings”.

8.

Dividend Policy. See “Key Information — Selected Financial Data — Dividend Information”.

8.B SIGNIFICANT CHANGES
Except as disclosed in this annual report, there have been no significant changes since the date of Toyota’s
latest annual financial statements.
ITEM 9. THE OFFER AND LISTING
9.A LISTING DETAILSThe following table sets forth for the periods shown the reported high and low sales prices of the common
stock on the Tokyo Stock Exchange and the ADSs on the New York Stock Exchange.
Tokyo
Stock Exchange
Price per Share
High
Low

New York
Stock Exchange
Price per ADS
High
Low

Fiscal Year Ended March 31,

2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥5,670
4,200
3,955
3,635
5,050

¥2,650
3,270
2,800
2,330
2,795

$106.74
91.78
93.90
87.15
106.00$ 57.68
67.90
67.56
60.37
72.04

3,425
3,480
2,710

3,095
2,562
2,330

84.00
85.49
69.81

75.85
66.34
60.37

3,635
3,640
3,300
4,015
5,050

2,553
2,885
2,795
2,873
4,030

87.15
86.98
83.73
93.36
106.00

67.27
73.90
72.04
74.27
93.20

4,015
4,390
5,050
5,050
5,790
6,760

3,460
4,030
4,415
4,700
4,610
5,460

93.36
97.55
106.00104.64116.81130.99

84.95
93.20
97.19
101.4899.70
112.84

Financial Quarter Ended:

June 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal Year Ended March 31,

March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Month Ended:

December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 28, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
April 30, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
105

9.B PLAN OF DISTRIBUTION
Not applicable.
9.C MARKETSThe primary trading market for Toyota’s common stock is the Tokyo Stock Exchange. The common stock isalso listed on the Nagoya Stock Exchange and three other regional stock exchanges in Japan.
Since September 29, 1999, American Depositary Shares, each equal to two shares of Toyota’s common
stock and evidenced by American Depositary Receipts, have been traded and listed on the New York Stock
Exchange through a sponsored ADR facility operated by The Bank of New York Mellon, as depositary. Prior tothat time, Toyota’s ADSs were listed on the Nasdaq SmallCap Market through five unsponsored ADR facilities.
Toyota’s common stock is also listed on the London Stock Exchange.
9.D SELLING SHAREHOLDERS
Not applicable.
9.E DILUTION
Not applicable.
9.F EXPENSES OF THE ISSUE
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
10.A SHARE CAPITAL
Not applicable.
10.B MEMORANDUM AND ARTICLES OF ASSOCIATION
Except as otherwise stated, set forth below is information relating to Toyota’s common stock, including
brief summaries of the relevant provisions of Toyota’s articles of incorporation and share handling regulations, as
currently in effect, and of the Corporation Act, Act Concerning Book-Entry Transfer of Corporate Bonds, Sharesand Other Securities (the “Book-Entry Transfer Act”) and related legislation.
GeneralToyota’s authorized number of shares as of March 31, 2013 was 10,000,000,000 shares, of which
3,447,997,492 shares were issued. Toyota does not issue share certificates for its shares. In accordance with the
Corporation Act, the Book-Entry Transfer Act and Toyota’s articles of incorporation, Toyota’s shares arerecorded or registered on (i) Toyota’s register of shareholders and (ii) transfer account books of the Japan
Securities Depository Center, Inc. (“JASDEC”) which is a book-entry transfer institution and securities firms,
banks or other account management institutions. The transfer of shares will generally become effective once thetransfer is recorded in the transferee’s account. In order to assert shareholders’ rights against Toyota, ashareholder must generally have his or her name and address recorded or registered on Toyota’s register ofshareholders. A shareholder can assert minority shareholders’ rights (shareholders’ rights for which Toyota has
not set a record date) against Toyota if JASDEC provides an individual shareholder notice to Toyota upon theshareholder’s request. The shareholder of deposited shares underlying the ADSs is the depositary for the ADSs.
Accordingly, holders of ADSs will not be able directly to assert shareholders’ rights.
106

A shareholder must have a transfer account to transfer shares. Shareholders who do not have a transfer
account with JASDEC must have an account with an account management institution that directly or indirectly
has a transfer account with JASDEC. Once Toyota decides on the record date for its shareholders’ meeting or
makes a request to JASDEC based on justifiable grounds, JASDEC will promptly provide to Toyota names,
addresses and other information with respect to Toyota’s shareholders who are recorded on the transfer accountbooks of JASDEC or account management institutions. Upon receiving such information, Toyota will record or
register such information received from JASDEC on its register of shareholders. Accordingly, holders of shares
recorded or registered on Toyota’s register of shareholders will be treated as shareholders of Toyota and may
exercise rights, such as voting rights, and will receive dividends (if any) and notices to shareholders directly fromToyota. Shareholders wishing to assert minority shareholders’ rights against Toyota must request an individual
shareholder notice to JASDEC or the account management institution at which the shareholder has opened atransfer account. In response to such request, JASDEC will provide the individual shareholders notice to Toyota.
The shareholder may assert his or her minority shareholders’ rights against Toyota for a period of four weeks
after the date the individual shareholder notice is provided to Toyota. The shares held by a person who is deemedto hold additional shares according to the transfer account books are aggregated for these purposes.
Corporate Purpose
Article 2 of Toyota’s articles of incorporation states that its purpose is to engage in the following
businesses:•

the manufacture, sale, leasing and repair of:•

motor vehicles, industrial vehicles, ships, aircraft, other transportation machinery and apparatus,
spacecraft and space machinery and apparatus, and parts thereof;•

industrial machinery and apparatus, other general machinery and apparatus, and parts thereof;•electrical machinery and apparatus, and parts thereof; and•measuring machinery and apparatus, medical machinery and apparatus, and parts thereof;•

the manufacture and sale of ceramics and products of synthetic resins, and materials thereof;•

the manufacture, sale and repair of construction materials and equipment, furnishings and fixtures forresidential buildings;•

the planning, designing, supervision, execution and undertaking of construction works, civil engineering
works, land development, urban development and regional development;•

the sale, purchase, leasing, brokerage and management of real estate;•

the service of information processing, information communications and information supply and thedevelopment, sale and leasing of software;•

the design and development of product sales systems that utilize networks such as the Internet;•

the sale, leasing and maintenance of computers included within such systems, and sale of products by
utilizing such systems;•

the inland transportation, marine transportation, air transportation, stevedoring, warehousing andtourism businesses;•

the printing, publishing, advertising and publicity, general leasing, security and workers dispatch
businesses;•

the credit card operations, purchase and sale of securities, investment consulting, investment trust
operation, and other financial services;•

the operation and management of such facilities as parking lots, showrooms, educational facilities,
medical care facilities, sports facilities, marinas, airfields, food and drink stands and restaurants, lodging
facilities, retail stores and others;107•

the non-life insurance agency business and the life insurance agency business;•the production and processing by using biotechnology of agricultural products including trees, and thesale of such products;•

the sale of goods related to each of the preceding items and mineral oil; and•the conducting of engineering, consulting, invention and research relating to each of the preceding items
and the utilization of such invention and research, and any businesses incidental to or related to any ofthe preceding items.

Dividends
Dividends — General
Toyota normally pays dividends twice per year, including an interim dividend and a year-end dividend.
Although Toyota’s articles of incorporation provide that retained earnings can be distributed as dividends
pursuant to the resolution of its board of directors, Toyota’s board of directors recommends the payment of yearend dividends to shareholders and pledgees of record as of March 31 in each year. Year-end dividends areusually paid to the shareholders immediately following approval of the dividends at the general shareholders’meeting, normally around the middle of June of each year. In addition to these year-end dividends, Toyota may
pay interim dividends in the form of cash distributions from its distributable surplus to shareholders and pledgeesof record as of September 30 in each year by resolution of its board of directors. Toyota normally pays theinterim dividend in late November.
In addition, under the Corporation Act, dividends may be paid to shareholders and pledgees of record as ofany record date, other than those specified above, as set forth by Toyota’s articles of incorporation or as
determined by its board of directors from time to time. Toyota’s articles of incorporation also permit Toyota to
pay dividends, in addition to interim dividends mentioned in the preceding paragraph, by a resolution of its boardof directors. Toyota has incorporated such a provision into its articles of incorporation in order to enable a
flexible capital policy. Under the Corporation Act, dividends may be distributed in cash or (except in the case ofinterim dividends mentioned in the preceding paragraph) in kind, subject to limitations on distributable surplus
and to certain other conditions.
Dividends — Distributable amountUnder the Corporation Act, Toyota is permitted to make distributions of surplus to the extent that theaggregate book value of the assets to be distributed to shareholders does not exceed the distributable amountprovided for by the Corporation Act and the ordinance of the Ministry of Justice as at the effective date of such
distribution of surplus.
The amount of surplus at any given time shall be the amount of Toyota’s assets and the book value ofToyota’s treasury stock after subtracting and adding the amounts of the items provided for by the Corporation
Act and the ordinance of the Ministry of Justice.
Dividends — Prescription
Under its articles of incorporation, Toyota is not obligated to pay any dividends in cash which are left
unclaimed for a period of three years after the date on which they first became payable.
Capital Accounts
The amount of the cash or assets paid or contributed by subscribers for new shares (with certain exceptions)is required to be accounted for as stated capital, although Toyota may account for an amount not exceeding onehalf of such cash or assets as additional paid-in capital.
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Under the Corporation Act, Toyota may reduce its additional paid-in capital and legal reserve without
limitation on the amount to be reduced, generally, by a resolution of a general shareholders’ meeting and if so
decided by the same resolution, may account for the whole or any part of the amount of the reduction of
additional paid-in capital as stated capital. The whole or any part of surplus which may be distributed as
dividends may also be transferred to stated capital by a resolution of a general shareholders’ meeting.
Stock Splits
Toyota may at any time split the outstanding shares into a greater number of shares by a resolution of theboard of directors. Toyota must give public notice of the stock split, specifying a record date for the stock split,
not less than two weeks prior to the record date.
Consolidation of Shares
Toyota may at any time consolidate shares in issue into a smaller number of shares by a special shareholders
resolution (as defined in “Voting Rights”). When a consolidation of shares is to be made, Toyota must give
public notice of certain matters two weeks prior to the effective date of the consolidation. Toyota must disclose
the reason for the consolidation of shares at a general shareholders’ meeting.
Japanese Unit Share System
General. Consistent with the requirements of the Corporation Act, Toyota’s articles of incorporation
provide that 100 shares constitute one “unit”. Although the number of shares constituting a unit is included in thearticles of incorporation, any amendment to the articles of incorporation reducing (but not increasing) the numberof shares constituting a unit or eliminating the provisions for the unit of shares may be made by a resolution of
the board of directors rather than by a special shareholders resolution, which is otherwise required for amending
the articles of incorporation. The number of shares constituting one unit, however, cannot exceed 1,000 shares.
Voting Rights under the Unit Share System. Under the unit share system, shareholders have one voting
right for each unit of shares that they hold. Any number of shares less than a full unit will carry no voting rights.
Purchase by Toyota of Shares Constituting Less Than a Unit. A holder of shares constituting less than afull unit may require Toyota to purchase those shares at their market value in accordance with the provisions of
Toyota’s share handling regulations.
Surrender of American Depositary Receipts. ADR holders will only be permitted to surrender ADRs andwithdraw underlying shares constituting an integral number of a whole unit. If a holder surrenders an ADR
including ADRs representing shares that do not constitute an integral number of whole units, the depositary will
deliver to that holder only those shares which constitute a whole unit. The depositary will then issue to the holder
a new ADR representing the remaining shares. Holders of an ADR that represents less than a whole unit ofunderlying shares will be unable to withdraw the underlying shares. As a result, those holders will be unable torequire Toyota to purchase their shares to the extent those shares constitute less than one whole unit.
Voting Rights
Toyota holds its ordinary general shareholders’ meeting each year. In addition, Toyota may hold anextraordinary general shareholders’ meeting whenever necessary by giving at least two weeks’ advance notice.
Under the Corporation Act, notice of any shareholders’ meeting must be given to each shareholder having voting
rights or, in the case of a non-resident shareholder, to his or her resident proxy or mailing address in Japan inaccordance with Toyota’s share handling regulations, at least two weeks prior to the date of the meeting.
A holder of shares constituting one or more whole units is entitled to one vote per unit of shares subject tothe limitations on voting rights set forth in this paragraph. In general, under the Corporation Act, a resolution can
109be adopted at a general shareholders’ meeting by a majority of the shares having voting rights represented at themeeting. The Corporation Act and Toyota’s articles of incorporation require a quorum for the election of
directors and audit & supervisory board members of not less than one-third of the total number of outstanding
shares having voting rights. Toyota’s shareholders are not entitled to cumulative voting in the election of
directors. A corporate shareholder, the management of which is substantially under Toyota’s control as provided
by an ordinance of the Ministry of Justice, either through the holding of voting rights or for any other reason,
does not have voting rights.
Shareholders may exercise their voting rights by attending the general shareholders’ meeting or in writing by
mail. Shareholders who choose to exercise their voting rights by mail must fill out and return to Toyota the voting right
exercise form enclosed with the convocation notice of the general shareholders’ meeting by the date specified in suchconvocation notice. In addition, from the general shareholders’ meeting for fiscal 2009, shareholders may exercise theirvoting rights through the internet. Shareholders electing to exercise their voting rights through the internet must log onto the “Website to Exercise Voting Rights” using the login ID and temporary password provided in the voting right
exercise form enclosed with the convocation notice and submit their votes by a date specified in the convocation
notice, following instructions appearing on the website. Institutional investors may also use the Electronic Proxy
Voting Platform operated by Investor Communications Japan (“ICJ”) to exercise their voting rights through the use of
the Internet, if such institutional investor applies to use the platform in advance. Shareholders may also exercise theirvoting rights through proxies, provided that those proxies are also shareholders who have voting rights. Toyota may
refuse a shareholder having two or more proxies attend a general shareholders’ meeting.
The Corporation Act provides that a quorum of at least one-third of outstanding shares with voting rights
must be present at a shareholders’ meeting to approve any material corporate actions such as:(1) any amendment of the articles of incorporation with certain exceptions in which a shareholders’
resolution is not required;(2) acquisition of its own shares from a specific party;(3) consolidation of shares;(4) any issue or transfer of its shares at a “specially favorable” price (or any issue of stock acquisitionrights or bonds with stock acquisition rights at “specially favorable” conditions by Toyota) to any
persons other than shareholders;(5) the removal of an audit & supervisory board member;(6) the exemption of liability of a director or audit & supervisory board member with certain
exceptions;(7) a reduction of stated capital which meets certain requirements with certain exceptions;(8) a distribution of in-kind dividends which meets certain requirements;(9) dissolution, merger, or consolidation with certain exceptions in which a shareholders’ resolution is
not required;(10) the transfer of the whole or a material part of the business;(11) the taking over of the entire business of any other corporation with certain exceptions in which ashareholders’ resolution is not required;(12) share exchange or share transfer for the purpose of establishing 100% parent-subsidiary
relationships with certain exceptions in which a shareholders’ resolution is not required; or(13) company split with certain exceptions in which a shareholders’ resolution is not required.
At least two-thirds of the shares having voting rights represented at the meeting must approve these actions.
The voting rights of holders of ADSs are exercised by the depositary based on instructions from those holders.
110Rights to be Allotted Shares
Holders of shares have no preemptive rights under Toyota’s articles of incorporation. Under the Corporation
Act, the board of directors may, however, determine that shareholders shall be given rights to be allotted sharesor stock acquisition rights on request in connection with a particular issue or transfer of shares, or issue of stockacquisition rights, respectively. In this case, such rights must be given on uniform terms to all shareholders as ofa specified record date by at least two weeks’ prior public notice to shareholders of the record date.
Rights to be allotted shares are nontransferable. However, a shareholder may be allotted stock acquisitionrights without consideration thereto, and may transfer such rights.
Liquidation Rights
In the event of a liquidation of Toyota, the assets remaining after payment of all debts, liquidation expenses
and taxes will be distributed among the shareholders in proportion to the respective number of shares they own.
Liability to Further Calls or Assessments
All of Toyota’s currently outstanding shares, including shares represented by the ADSs, are fully paid andnonassessable.
Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation is the transfer agent for the shares. Mitsubishi UFJ Trust andBanking Corporation’s office is located at 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo, 100-8212 Japan.
Mitsubishi UFJ Trust and Banking Corporation maintains Toyota’s register of shareholders and records transfersof record ownership upon receiving notification from JASDEC.
Record Date
The close of business on March 31 is the record date for Toyota’s year-end dividends, if paid. A holder ofshares constituting one or more whole units who is recorded or registered as a holder on Toyota’s register at theclose of business as of March 31 is also entitled to exercise shareholders’ voting rights at the ordinary generalshareholders’ meeting with respect to the business year ending on March 31. The close of business on
September 30 of each year is the record date for interim dividends, if paid. In addition, Toyota may set a record
date for determining the shareholders entitled to other rights and for other purposes by giving at least two weeks’prior public notice.
The shares generally trade ex-dividend or ex-rights in the Japanese stock exchanges on the second business
day before a record date (or if the record date is not a business day, the third business day prior thereto), for the
purpose of dividends or rights offerings.
Acquisition by Toyota of Shares
Toyota may acquire its own shares (i) through a stock exchange on which such shares are listed or by wayof tender offer (pursuant to an ordinary resolution of a general shareholders’ meeting or a resolution of the boardof directors), (ii) by purchase from a specific party (pursuant to a special resolution of a general shareholders’meeting) or (iii) from a subsidiary of Toyota (pursuant to a resolution of the board of directors). When suchacquisition is made by Toyota from a specific party other than a subsidiary of Toyota, any other shareholder may
make a demand to a representative director, more than five calendar days prior to the relevant shareholders’meeting, that Toyota also purchase the shares held by such shareholder. However, the acquisition of its own
shares at a price not exceeding the market price to be provided under an ordinance of the Ministry of Justice will
not trigger the right of any shareholder to include him/her as the seller of his/her shares in such proposed
purchase.
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Any such acquisition of shares must satisfy certain requirements that the total amount of the acquisition
price may not exceed the amount of the distributable dividends. See “— Dividends”.
Shares acquired by Toyota may be held by it for any period or may be cancelled by resolution of the boardof directors. Toyota may also transfer to any person the shares held by it, subject to a resolution of the board of
directors, and subject also to other requirements applicable to the issuance of new shares. Toyota may also utilize
its treasury stock for the purpose of transfer to any person upon exercise of stock acquisition rights or for the
purpose of acquiring another company by way of merger, share exchange or corporate split through exchange oftreasury stock for shares or assets of the acquired company.
The Corporation Act generally prohibits any subsidiary of Toyota from acquiring shares of Toyota.
Acquisition or Disposition of Shares or ADS
Under the Foreign Exchange and Foreign Trade Law and the cabinet orders and ministerial ordinances
thereunder (collectively, the “Foreign Exchange Regulations”), all aspects of regulations on foreign exchange
and foreign trade transactions are, with minor exceptions (which are not generally applicable to the purchase andsale of Toyota’s shares), only subject to post transaction reporting requirements. Acquisitions and dispositions ofshares of common stock or ADS by non-residents of Japan (including foreign corporations not resident in Japan)
are generally not subject to this reporting requirement. However, the Minister of Finance has the power toimpose a licensing requirement for transactions in limited circumstances.
Report of Substantial Shareholdings
The Financial Instruments and Exchange Law of Japan and regulations under the Law require any person
who has become a holder (together with its related persons) of more than 5% of the total issued shares of acompany listed on any Japanese stock exchange (including ADSs representing such shares) to file with the
Director of a competent Local Finance Bureau, within five business days, a report concerning thoseshareholdings. A similar report must also be filed to reflect any change of 1% or more in any shareholding or any
change in material matters set out in reports previously filed. Any such report shall be filed with the Director of acompetent Local Finance Bureau through the Electronic Disclosure for Investor’s Network (“EDINET”) system.
Copies of any report must also be furnished to the company. For this purpose, shares issuable to a shareholder
upon exercise of stock acquisition rights are taken into account in determining both the number of shares held bythat stock acquisition rights holder and the company’s total issued shares.
10.C MATERIAL CONTRACTS
All contracts concluded by Toyota during the two years preceding this filing were entered into in theordinary course of business.
10.D EXCHANGE CONTROLSThe Foreign Exchange Regulations govern the acquisition and holding of shares of capital stock of Toyota
by “exchange non-residents” and by “foreign investors”. The Foreign Exchange Regulations currently in effectdo not, however, affect transactions between exchange non-residents to purchase or sell shares outside Japan
using currencies other than Japanese yen.
Exchange non-residents are:•individuals who do not reside in Japan; and•corporations whose principal offices are located outside Japan.

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Generally, branches and other offices of non-resident corporations that are located within Japan are regarded
as residents of Japan. Conversely, branches and other offices of Japanese corporations located outside Japan are
regarded as exchange non-residents.
Foreign investors are:•individuals who are exchange non-residents;•

corporations or other organizations that are organized under the laws of foreign countries or whose
principal offices are located outside of Japan; and•corporations (1) of which 50% or more of their voting rights are held directly or indirectly by
individuals who are exchange non-residents and/or corporations or other organizations (a) that areorganized under the laws of foreign countries or (b) whose principal offices are located outside of Japanor (2) a majority of whose officers, or officers having the power of representation, are individuals whoare exchange non-residents.

In general, the acquisition of shares of a Japanese company (such as the shares of capital stock of Toyota)
by an exchange non-resident from a resident of Japan is not subject to any prior filing requirements. In certain
limited circumstances, however, the Minister of Finance may require prior approval of an acquisition of this type.
While prior approval, as described above, is not required, in the case where a resident of Japan transfers shares ofa Japanese company (such as the shares of capital stock of Toyota) for consideration exceeding ¥100 million toan exchange non-resident, the resident of Japan who transfers the shares is required to report the transfer to the
Minister of Finance within 20 days from the date of the transfer or the date of receipt of payment, whichevercomes later, unless the transfer was made through a bank or financial instruments business operator licensed orregistered under Japanese law.
If a foreign investor acquires shares of a Japanese company that is listed on a Japanese stock exchange (suchas the shares of capital stock of Toyota) and, as a result of the acquisition, the foreign investor, in combination
with any existing holdings, directly or indirectly holds 10% or more of the issued shares of the relevant company,
the foreign investor, with certain exceptions, must file a report of the acquisition with the Minister of Finance andany other competent Ministers having jurisdiction over that Japanese company by the 15th day of the monthfollowing the month in which the date of the acquisition falls. In limited circumstances, such as where the foreign
investor is in a country that is not listed on an exemption schedule in the Foreign Exchange Regulations, a priornotification of the acquisition must be filed with the Minister of Finance and any other competent Ministers, who
may then modify or prohibit the proposed acquisition.
Under the Foreign Exchange Regulations, dividends paid on, and the proceeds of sales in Japan of, shares
held by non-residents of Japan may in general be converted into any foreign currency and repatriated abroad.
Under the terms of the deposit agreement pursuant to which Toyota’s ADSs are issued, the Depositary is
required, to the extent that in its judgment it can convert yen on a reasonable basis into dollars and transfer the
resulting dollars to the United States, to convert all cash dividends that it receives in respect of deposited shares
into dollars and to distribute the amount received (after deduction of applicable withholding taxes) to the holders
of ADSs.
10.E TAXATION
The following discussion is a general summary of the principal U.S. federal income and Japanese national
tax consequences of the acquisition, ownership and disposition of shares of common stock or ADSs. Thissummary does not purport to address all material tax consequences that may be relevant to holders of shares ofcommon stock or ADSs, and does not take into account the specific circumstances of any particular investors,some of which (such as tax-exempt entities, banks, insurance companies, broker-dealers, traders in securities thatelect to use a mark-to-market method of accounting for their securities holdings, regulated investmentcompanies, real estate investment trusts, partnerships and other pass-through entities, investors liable for the113

U.S. alternative minimum tax, investors that own or are treated as owning 10% or more of Toyota’s voting stock,investors that hold shares of common stock or ADSs as part of a straddle, hedge, conversion transaction or otherintegrated transaction and U.S. Holders (as defined below) whose functional currency is not the U.S. dollar) may
be subject to special tax rules. This summary is based on the tax laws and regulations of the United States andJapan, judicial decisions, published rulings and administrative pronouncements all as in effect on the date hereof,
as well as on the current income tax convention between the United States and Japan (the “Treaty”), as described
below, all of which are subject to change (possibly with retroactive effect), and to differing interpretations.
For purposes of this discussion, a “U.S. Holder” is any beneficial owner of shares of common stock or
ADSs that, for U.S. federal income tax purposes, is:1.

an individual who is a citizen or resident of the United States,2.

a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes)
organized in or under the laws of the United States, any state thereof, or the District of Columbia,

3.

an estate the income of which is subject to U.S. federal income tax without regard to its source, or

4.

a trust that is subject to the primary supervision of a U.S. court and the control of one or more
U.S. persons, or that has a valid election in effect under applicable Treasury regulations to betreated as a U.S. person.

An “Eligible U.S. Holder” is a U.S. Holder that:1.

is a resident of the United States for purposes of the Treaty,2.

does not maintain a permanent establishment in Japan (a) with which the shares of common stockor ADSs are effectively connected and through which the U.S. holder carries on or has carried on
business, or (b) of which the shares of common stock or ADSs form part of the business property,
and3.

is eligible for benefits under the Treaty with respect to income and gain derived in connection
with the shares of common stock or ADSs.

This summary does not address any aspects of U.S. federal tax law other than income taxation, and does notdiscuss any aspects of Japanese tax law other than income taxation, as limited to national taxes, inheritance andgift taxation. This summary also does not cover any state or local, or non-U.S., non-Japanese tax considerations.
Investors are urged to consult their tax advisors regarding the U.S. federal, state and local and Japanese and othertax consequences of acquiring, owning and disposing of shares of common stock or ADSs. In particular, where
relevant, investors are urged to confirm their status as Eligible U.S. Holders with their tax advisors and to discusswith their tax advisors any possible consequences of their failure to qualify as Eligible U.S. Holders. In addition,
this summary is based in part upon the representations of the depositary and the assumption that each obligationin the deposit agreement, and in any related agreement, will be performed in accordance with its terms.
In general, for purposes of the Treaty and for U.S. federal income and Japanese income tax purposes,
owners of ADRs evidencing ADSs will be treated as the owners of the shares of common stock represented bythose ADSs, and exchanges of shares of common stock for ADSs, and exchanges of ADSs for shares of common
stock, will not be subject to U.S. federal income or Japanese income tax.
The discussion below is intended for general information only and does not constitute a complete analysisof all tax consequences relating to ownership of shares of common stock or ADSs. Prospective purchasers ofshares of common stock or ADSs should consult their own tax advisors concerning the tax consequences of
their particular situations.
Japanese Taxation
The following is a summary of the principal Japanese tax consequences (limited to national taxes) to
non-residents of Japan or non-Japanese corporations without permanent establishments in Japan (“non-resident
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Holders”) who are holders of shares of common stock or of ADSs. The following information regarding taxationin Japan is based on the tax treaties and tax laws in force and their interpretation by Japan’s tax authorities as ofthe date of this annual report. Tax laws and treaties and their interpretations may change (including withretroactive effect). Toyota will not revise this summary on the basis of any such change occurring after the dateof this annual report.
Generally, non-resident Holders are subject to Japanese withholding tax on dividends paid by Japanese
corporations. Stock splits are, in general, not a taxable event.
In the absence of an applicable tax treaty, convention or agreement reducing the maximum rate of Japanese
withholding tax or allowing exemption from Japanese withholding tax, the rate of Japanese withholding tax
applicable to dividends paid by Japanese corporations to non-resident Holders is generally 20.42 percent,provided, with respect to dividends paid on listed shares issued by a Japanese corporation (such as the shares ofcommon stock or ADSs of Toyota) to non-resident Holders, other than any individual shareholder who holds
3 percent or more of the total issued shares issued by the relevant Japanese corporation, the aforementioned
20.42 percent withholding tax rate is reduced to (i) 7.147 percent for dividends due and payable on or afterJanuary 1, 2013 but on or before December 31, 2013 and (ii) 15.315 percent for dividends due and payable on orafter January 1, 2014. Due to the imposition of a special additional withholding tax (2.1 percent of the original
withholding tax amount) to secure funds for reconstruction from the Great East Japan Earthquake, the original
withholding tax rate of 7 percent, 15 percent and 20 percent, as applicable, is effectively increased, respectively,
to 7.147 percent, 15.315 percent and 20.42 percent, during the period beginning on January 1, 2013 and ending
on December 31, 2037.
At the date of this annual report, Japan has income tax treaties, conventions or agreements whereby theabove-mentioned withholding tax rate is reduced, in most cases to 15 percent or 10 percent for portfolio investors(15 percent under the income tax treaties with, among other countries, Belgium, Canada, Denmark, Finland,
Germany, Ireland, Italy, Luxembourg, New Zealand, Norway, Singapore, Spain and Sweden, and 10 percent
under the income tax treaties with, among other countries, Australia, France, Hong Kong, the Netherlands,
Switzerland, the U.K. and the United States.)
Under the Treaty, the maximum rate of Japanese withholding tax which may be imposed on dividends paidby a Japanese corporation to an Eligible U.S. Holder that is a portfolio investor is generally reduced to 10 percentof the gross amount actually distributed, and dividends paid by a Japanese corporation to an Eligible U.S. Holderthat is a pension fund are exempt from Japanese income tax by way of withholding or otherwise unless such
dividends are derived from the carrying on of a business, directly or indirectly, by such pension fund.
If the maximum tax rate provided for in the income tax treaty applicable to dividends paid by Toyota to any
particular non-resident Holder is lower than the withholding tax rate otherwise applicable under Japanese tax law
or if any particular non-resident Holder is exempt from Japanese income tax with respect to such dividends under
the income tax treaty applicable to such particular non-resident Holder, such non-resident Holder who is entitledto a reduced rate of or exemption from Japanese withholding tax on payment of dividends on shares of common
stock by Toyota is required to submit an Application Form for Income Tax Convention Regarding Relief fromJapanese Income Tax on Dividends (together with any other required forms and documents) in advance throughthe withholding agent to the relevant tax authority before the payment of dividends. A standing proxy for nonresident Holders of a Japanese corporation may provide this application service. In addition, a simplified special
application filing procedure will be available for non-resident Holders to claim treaty benefits of exemption fromor reduction of Japanese withholding tax, with respect to dividends paid on or after January 1, 2014. With respect
to ADSs, this reduced rate or exemption is applicable if the Depositary or its agent submits, together with otherdocuments, two Application Forms (one before payment of dividends, the other within eight months after therecording date concerning such payment of dividends) to the Japanese tax authority. To claim this reduced rate or
exemption, any relevant non-resident Holder of ADSs will be required to file a proof of taxpayer status, residence
and beneficial ownership (as applicable) and to provide other information or documents as may be required by115

the Depositary. A non-resident Holder who is entitled, under an applicable income tax treaty, to a reduced treaty
rate lower than the withholding tax rate otherwise applicable under Japanese tax law or an exemption from thewithholding tax, but failed to submit the required application in advance, will be entitled to claim the refund ofwithholding taxes withheld in excess of the rate under an applicable tax treaty (if such non-resident Holder isentitled to a reduced treaty rate under the applicable income tax treaty) or the whole of the withholding tax
withheld (if such non-resident Holder is entitled to an exemption under the applicable income tax treaty) bycomplying with a certain subsequent filing procedure. Toyota does not assume any responsibility to ensurewithholding at the reduced rate, or exemption therefrom, for non-resident Holders who would be so eligible
under an applicable tax treaty but where the required procedures as stated above are not followed.
Gains derived from the sale of shares of common stock or ADSs outside Japan by a non-resident Holder
holding such shares of common stock or ADSs as portfolio investors are, in general, not subject to Japanese income
tax or corporation tax under Japanese law. Eligible U.S. Holders are not subject to Japanese income or corporation
tax with respect to such gains under the Treaty so long as filings required under Japanese law are made.
Japanese inheritance and gift taxes at progressive rates may be payable by an individual who has acquired
from another individual shares of common stock or ADSs as a legatee, heir or donee even though neither theindividual nor the deceased nor donor is a Japanese resident.
Holders of shares of common stock or ADSs should consult their tax advisors regarding the effect of thesetaxes and, in the case of U.S. Holders, the possible application of the Estate and Gift Tax Treaty between the
U.S. and Japan.
U.S. Federal Income Taxation
U.S. Holders
The following discussion is a summary of the principal U.S. federal income tax consequences to
U.S. Holders that hold those shares of common stock or ADSs as capital assets (generally, for investment
purposes).
Taxation of Dividends
Subject to the passive foreign investment company (“PFIC”) rules discussed below, the gross amount of any
distribution made by Toyota in respect of shares of common stock or ADSs (without reduction for Japanese
withholding taxes) will constitute a taxable dividend to the extent paid out of current or accumulated earnings
and profits, as determined under U.S. federal income tax principles. The U.S. dollar amount of such a dividend
generally will be included in the gross income of a U.S. Holder, as ordinary income, when actually or
constructively received by the U.S. Holder, in the case of shares of common stock, or by the depositary, in thecase of ADSs. Dividends paid by Toyota will not be eligible for the dividends-received deduction generally
allowed to U.S. corporations in respect of dividends received from other U.S. corporations.
Dividends received on shares and ADSs of certain foreign corporations by non-corporate U.S. investors may
be subject to U.S. federal income tax at lower rates than other types of ordinary income if certain conditions are
met. Dividends received by non-corporate U.S. Holders with respect to shares of common stock or ADSs ofToyota are expected to be eligible for these reduced rates of tax. U.S. Holders should consult their own tax
advisors regarding the eligibility of such dividends for a reduced rate of tax.
The U.S. dollar amount of a dividend paid in Japanese yen will be determined based on the Japanese
yen/U.S. dollar exchange rate in effect on the date that the dividend is included in the gross income of the
U.S. Holder, regardless of whether the payment is converted into U.S. dollars on that date. Generally, any gain or116

loss resulting from currency exchange fluctuations during the period from the date the dividend payment isincluded in the gross income of a U.S. Holder through the date that payment is converted into U.S. dollars (orotherwise disposed of) will be treated as U.S. source ordinary income or loss. U.S. Holders should consult theirown tax advisors regarding the calculation and U.S. federal income tax treatment of foreign currency gain or loss.
To the extent, if any, that the amount of any distribution received by a U.S. Holder in respect of shares ofcommon stock or ADSs exceeds Toyota’s current and accumulated earnings and profits, as determined under
U.S. federal income tax principles, the distribution first will be treated as a tax-free return of capital to the extent
of the U.S. Holder’s adjusted tax basis in those shares or ADSs, and thereafter will be treated as U.S. source
capital gain.
Distributions of additional shares of common stock that are made to U.S. Holders with respect to theirshares of common stock or ADSs, and that are part of a pro rata distribution to all of Toyota’s shareholders,
generally will not be subject to U.S. federal income tax.
For U.S. foreign tax credit purposes, dividends included in gross income by a U.S. Holder in respect ofshares of common stock or ADSs will constitute income from sources outside the United States, and will
generally be “passive category income” or, in the case of certain U.S. Holders, “general category income”.
Subject to generally applicable limitations under U.S. federal income tax law and the Treaty, any Japanese
withholding tax imposed in respect of a Toyota dividend may be claimed as a credit against the U.S. federal
income tax liability of a U.S. Holder, or alternatively as a deduction in the computation of such U.S. Holder’staxable income, if the U.S. Holder does not elect to claim a credit for any foreign taxes paid or accrued for the
taxable year. Special rules generally will apply to the calculation of foreign tax credits in respect of dividend
income that qualifies for preferential U.S. federal income tax rates. Additionally, special rules apply toindividuals whose foreign source income during the taxable year consists entirely of “qualified passive income”
and whose creditable foreign taxes paid or accrued during the taxable year do not exceed $300 ($600 in the caseof a joint return). Further, under some circumstances, a U.S. Holder that:(i) has held shares of common stock or ADSs for less than a specified minimum period, or(ii) is obligated to make payments related to Toyota dividends,
will not be allowed a foreign tax credit for Japanese taxes imposed on Toyota dividends.
U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under
their particular circumstances.
Taxation of Capital Gains and Losses
In general, upon a sale or other taxable disposition of shares of common stock or ADSs, a U.S. Holder willrecognize gain or loss for U.S. federal income tax purposes in an amount equal to the difference between theamount realized on the sale or other taxable disposition and the U.S. Holder’s adjusted tax basis in those sharesof common stock or ADSs. A U.S. Holder generally will have an adjusted tax basis in a share of common stockor an ADS equal to its U.S. dollar cost. Subject to the PFIC rules discussed below, gain or loss recognized on thesale or other taxable disposition of shares of common stock or ADSs generally will be capital gain or loss and, if
the U.S. Holder’s holding period for those shares or ADSs exceeds one year, will be long-term capital gain or
loss. Non-corporate U.S. Holders, including individuals, currently are eligible for preferential rates of
U.S. federal income tax in respect of long-term capital gains. Under U.S. federal income tax law, the deductionof capital losses is subject to limitations. Any gain or loss recognized by a U.S. Holder in respect of the sale orother disposition of shares of common stock or ADSs generally will be treated as U.S. source income or loss for
U.S. foreign tax credit purposes.
Deposits and withdrawals of common stock in exchange for ADSs will not result in the realization of gainor loss for U.S. federal income tax purposes.
117

Passive Foreign Investment Companies
A non-U.S. corporation generally will be classified as a PFIC for U.S. federal income tax purposes in any
taxable year in which, after applying look-through rules, either (1) at least 75% of its gross income is passive
income, or (2) on average at least 50% of the gross value of its assets is attributable to assets that produce passive
income or are held for the production of passive income. Passive income for this purpose generally includes
dividends, interest, royalties, rents and gains from commodities and securities transactions. The PFIC
determination is made annually and generally is based on the value of a non-U.S. corporation’s assets (including
goodwill) and composition of its income.
Toyota does not believe that it was a PFIC for U.S. federal income tax purposes for its taxable year ended
March 31, 2013, and currently intends to continue its operations in such a manner that it will not become a PFICin the future. Because the PFIC determination is made annually and the application of the PFIC rules to a
corporation such as Toyota (which among other things is engaged in leasing and financing through several
subsidiaries) is not entirely clear, no assurances can be made regarding determination of its PFIC status in thecurrent or any future taxable year. If Toyota is determined to be a PFIC, U.S. Holders could be subject toadditional U.S. federal income taxes on gain recognized with respect to the shares of common stock or ADSs andon certain distributions. In addition, an interest charge may apply to the portion of the U.S. federal income tax
liability on such gains or distributions treated under the PFIC rules as having been deferred by the U.S. Holder.
Moreover, dividends that a non-corporate U.S. Holder receives from Toyota will not be eligible for the reduced
U.S. federal income tax rates on dividends described above if Toyota is a PFIC either in the taxable year of thedividend or the preceding taxable year. If a U.S. Holder owns shares of common stock or ADSs in any taxable
year in which Toyota is a PFIC, such U.S. Holder generally would be required to file Internal Revenue Service(“IRS”) Form 8621 (or other form specified by the U.S. Department of the Treasury) with the U.S. Holder’sU.S. federal income tax return in each year that Toyota is a PFIC. Toyota will inform U.S. Holders if it believes
that it will be classified as a PFIC in any taxable year.
Prospective investors should consult their own tax advisors regarding the potential application of the PFIC
rules to shares of common stock or ADSs.
Non-U.S. Holders
The following discussion is a summary of the principal U.S. federal income tax consequences to beneficial
owners of shares of common stock or ADSs that are neither U.S. Holders nor partnerships, nor entities taxable aspartnerships for U.S. federal income tax purposes (“Non-U.S. Holders”).
A Non-U.S. Holder generally will not be subject to any U.S. federal income or withholding tax on
distributions received in respect of shares of common stock or ADSs unless the distributions are effectively
connected with the conduct by the Non-U.S. Holder of a trade or business within the United States (and, if anapplicable tax treaty requires, are attributable to a U.S. permanent establishment or fixed base of such Non-U.S.
Holder).
A Non-U.S. Holder generally will not be subject to U.S. federal income tax in respect of gain recognized ona sale or other disposition of shares of common stock or ADSs, unless:(i)the gain is effectively connected with a trade or business conducted by the Non-U.S. Holder within the
United States (and, if an applicable tax treaty requires, is attributable to a U.S. permanent establishment
or fixed base of such Non-U.S. Holder), or(ii) the Non-U.S. Holder is an individual who was present in the United States for 183 or more days in the
taxable year of the disposition and other conditions are met.
Income that is effectively connected with a U.S. trade or business of a Non-U.S. Holder, and, if an income
tax treaty applies and so requires, is attributable to a U.S. permanent establishment or fixed base of the Non-U.S.
Holder, generally will be taxed in the same manner as the income of a U.S. Holder. In addition, under certain118

circumstances, any effectively connected earnings and profits realized by a corporate Non-U.S. Holder may besubject to an additional “branch profits tax” at the rate of 30% or at a lower rate that may be prescribed by anapplicable income tax treaty.
Backup Withholding and Information Reporting
In general, information reporting requirements will apply to dividends paid to a U.S. Holder in respect ofshares of common stock or ADSs, and to the proceeds received upon the sale, exchange or redemption of theshares of common stock or ADSs within the United States by U.S. Holders. Furthermore, backup withholding
may apply to those amounts (currently at a 28% rate) if a U.S. Holder fails to provide an accurate taxpayer
identification number, to certify that such U.S. Holder is not subject to backup withholding or to otherwise
comply with the applicable requirements of the backup withholding requirements.
Dividends paid to a Non-U.S. Holder in respect of shares of common stock or ADSs, and proceeds received
upon the sale, exchange or redemption of shares of common stock or ADSs by a Non-U.S. Holder, generally are
exempt from information reporting and backup withholding under current U.S. federal income tax law. However,a Non-U.S. Holder may be required to provide certification of non-U.S. status in order to obtain that exemption.
Persons required to establish their exempt status generally must provide such certification under penalty of
perjury on IRS Form W-9, entitled Request for Taxpayer Identification Number and Certification, in the case of
U.S. persons, and on IRS Form W-8BEN, entitled Certificate of Foreign Status of Beneficial Owner for UnitedStates Tax Withholding (or other appropriate IRS Form W-8), in the case of non-U.S. persons. Backup
withholding is not an additional tax. The amount of backup withholding imposed on a payment generally may beclaimed as a credit against the holder’s U.S. federal income tax liability provided that the required information isproperly furnished to the IRS in a timely manner.
In addition, certain U.S. Holders who are individuals that hold certain foreign financial assets (which may
include shares of common stock or ADSs) are required to report information relating to such assets, subject tocertain exceptions. U.S. Holders should consult their tax advisors regarding the effect, if any, of this legislationon their ownership and disposition of shares of common stock or ADSs.
THE SUMMARY OF U.S. FEDERAL INCOME AND JAPANESE NATIONAL TAX CONSEQUENCESSET OUT ABOVE IS INTENDED FOR GENERAL INFORMATION PURPOSES ONLY. PROSPECTIVE
PURCHASERS OF COMMON STOCK OR ADSs ARE URGED TO CONSULT WITH THEIR OWN TAXADVISORS WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO THEM OF OWNING ORDISPOSING OF COMMON STOCK OR ADSs, BASED ON THEIR PARTICULAR CIRCUMSTANCES.
10.F DIVIDENDS AND PAYING AGENTS
Not applicable.
10.G STATEMENT BY EXPERTS
Not applicable.
10.H DOCUMENTS ON DISPLAY
Toyota files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may read and copy
this information at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C.
20549 or by accessing the SEC’s home page (http://www.sec.gov). You can also request copies of the
documents, upon payment of a duplicating fee, by writing to the Public Reference Section of the SEC. Please callthe SEC at 1-800-SEC-0330 for further information on the operation of the Public Reference Room. In addition,
119

Toyota’s reports, proxy statements and other information may be inspected at the offices of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005. Copies of the documents referred to herein may also beinspected at Toyota’s offices by contacting Toyota at 1 Toyota-cho, Toyota City, Aichi Prefecture 471-8571,
Japan, attention: Financial Reporting Department, Accounting Division, telephone number: 81-565-28-2121.
10.I SUBSIDIARY INFORMATION
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Quantitative and Qualitative Disclosures about Market Risk
Toyota is exposed to market risk from changes in foreign currency exchange rates, interest rates, certain
commodity and equity security prices. In order to manage the risk arising from changes in foreign currency
exchange rates and interest rates, Toyota enters into a variety of derivative financial instruments.
A description of Toyota’s accounting policies for derivative instruments is included in note 2 to theconsolidated financial statements and further disclosure is provided in notes 20 and 26 to the consolidated
financial statements.
Toyota monitors and manages these financial exposures as an integral part of its overall risk management
program, which recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse
effects on Toyota’s operating results.
The financial instruments included in the market risk analysis consist of all of Toyota’s cash and cash
equivalents, marketable securities, finance receivables, securities investments, long-term and short-term debt andall derivative financial instruments. Toyota’s portfolio of derivative financial instruments consists of forward
foreign currency exchange contracts, foreign currency options, interest rate swaps, interest rate currency swap
agreements and interest rate options. Anticipated transactions denominated in foreign currencies that are coveredby Toyota’s derivative hedging are not included in the market risk analysis. Although operating leases are notrequired to be included, Toyota has included these instruments in determining interest rate risk.
Foreign Currency Exchange Rate Risk
Toyota has foreign currency exposures related to buying, selling and financing in currencies other than thelocal currencies in which it operates. Toyota is exposed to foreign currency risk related to future earnings orassets and liabilities that are exposed due to operating cash flows and various financial instruments that are
denominated in foreign currencies. Toyota’s most significant foreign currency exposures relate to the U.S. dollar
and the euro.
Toyota uses a value-at-risk analysis (“VAR”) to evaluate its exposure to changes in foreign currency
exchange rates. The VAR of the combined foreign exchange position represents a potential loss in pre-tax
earnings that was estimated to be ¥87.9 billion and ¥99.1 billion at March 31, 2012 and 2013, respectively. Basedon Toyota’s overall currency exposure (including derivative positions), the risk during fiscal 2013 to pre-tax cash
flow from currency movements was on average ¥99.1 billion, with a high of ¥129.5 billion and a low of¥78.1 billion.
The VAR was estimated by using a Monte Carlo Simulation Method and assumed 95% confidence level on
the realization date and a 10-day holding period.
Interest Rate Risk
Toyota is subject to market risk from exposures to changes in interest rates based on its financing, investing
and cash management activities. Toyota enters into various financial instrument transactions to maintain the120

desired level of exposure to the risk of interest rate fluctuations and to minimize interest expense. The potential
decrease in fair value resulting from a hypothetical 100 basis point upward shift in interest rates would beapproximately ¥144.2 billion as of March 31, 2012 and ¥208.5 billion as of March 31, 2013.
There are certain shortcomings inherent to the sensitivity analyses presented. The model assumes thatinterest rate changes are instantaneous parallel shifts in the yield curve. However, in reality, changes are rarely
instantaneous. Although certain assets and liabilities may have similar maturities or periods to repricing, they
may not react correspondingly to changes in market interest rates. Also, the interest rates on certain types ofassets and liabilities may fluctuate with changes in market interest rates, while interest rates on other types ofassets may lag behind changes in market rates. Finance receivables are less susceptible to prepayments wheninterest rates change and, as a result, Toyota’s model does not address prepayment risk for automotive related
finance receivables. However, in the event of a change in interest rates, actual loan prepayments may deviatesignificantly from the assumptions used in the model.
Commodity Price Risk
Commodity price risk is the possibility of higher or lower costs due to changes in the prices of commodities,
such as non-ferrous alloys (e.g., aluminum), precious metals (e.g., palladium, platinum and rhodium) and ferrous
alloys, which Toyota uses in the production of motor vehicles. Toyota does not use derivative instruments tohedge the price risk associated with the purchase of those commodities and controls its commodity price risk byholding minimum stock levels.
Equity Price Risk
Toyota holds investments in various available-for-sale equity securities that are subject to price risk. The
fair value of available-for-sale equity securities was ¥1,034.3 billion as of March 31, 2012 and ¥1,401.1 billion asof March 31, 2013. The potential change in the fair value of these investments, assuming a 10% change in prices,would be approximately ¥103.4 billion as of March 31, 2012 and ¥140.1 billion as of March 31, 2013.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
12.A DEBT SECURITIES
Not applicable.
12.B WARRANTS AND RIGHTS
Not applicable.
12.C OTHER SECURITIES
Not applicable.

121

12.D AMERICAN DEPOSITARY SHARESFees and Charges for Holders of American Depositary Receipts
The Bank of New York Mellon, as depositary for the ADSs (the “Depositary”) collects its fees for delivery
and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose ofwithdrawal or from intermediaries acting for them. The Depositary collects fees for making distributions toinvestors by deducting those fees from the amounts distributed or by selling a portion of distributable property to
pay the fees. The Depositary may generally refuse to provide fee-attracting services until its fees for thoseservices are paid.
Persons depositing or withdrawing shares must pay:For:

$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)•

Issuance of ADSs, including issuances resulting
from a distribution, sale or exercise of shares orrights or other property•

Cancellation of ADSs for the purpose ofwithdrawal including if the deposit agreement
terminates$0.02 (or less) per ADS•

Any cash distribution to ADS registered holders

A fee equivalent to the fee that would be payable if
securities distributed to the ADR holder had been sharesand the shares had been deposited for issuance of ADSs•

Distribution of securities distributed to holders
of deposited securities which are distributed by
the depositary to ADS registered holders

Registration fees•

Registration of transfer of shares on Toyota’sshare register to the name of the depositary or its
nominee or the custodian or its nominee whenshares are deposited or withdrawn

Expenses of the depositary•

Cable, telex and facsimile transmissions (whenexpressly provided in the deposit agreement)•

Converting foreign currency to U.S. dollars•

As necessary

Taxes and other governmental charges the depositary or
the custodian have to pay on any ADS or share
underlying an ADS
Fees Incurred in Fiscal 2013

For fiscal 2013, Toyota received $200,000 from the Depositary for standard out-of-pocket maintenancecosts for the ADRs (consisting of the expenses of postage and envelopes for mailing annual reports, printing anddistributing dividend checks, stationery, postage, facsimile, and telephone calls) and expenses relating toToyota’s annual general shareholders’ meeting that are incurred with respect to Toyota’s ADR holders. The
Depositary also paid Toyota’s continuing annual stock exchange listing fees.
Fees to be Paid in the Future
The Depositary has agreed to reimburse Toyota for expenses Toyota incurs that are related to themaintenance of the ADS program. The Depositary has agreed to pay the standard out-of-pocket maintenancecosts for the ADRs, which includes the expenses of postage and envelopes for mailing annual reports, printing
and distributing dividend checks, stationery, postage, facsimile, and telephone calls. It has also agreed toreimburse Toyota annually for investor relations expenses and any other program related expenses. There arelimits on the amount of expenses for which the Depositary will reimburse Toyota, but the amount of
reimbursement available to Toyota is not tied to the amount of fees investors pay to the Depositary.
122

PART IIITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIESNone.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDSNone.
ITEM 15. CONTROLS AND PROCEDURES(a) DISCLOSURE CONTROLS AND PROCEDURES
Toyota performed an evaluation of the effectiveness of the design and operation of its disclosure controls
and procedures as of the end of the fiscal 2013. Disclosure controls and procedures are designed to ensure that
information required to be disclosed in the Form 20-F that Toyota files under the Exchange Act is accumulated
and communicated to its management, including the chief executive officer and the principal accounting andfinancial officer, to allow timely decision regarding required disclosure. The disclosure controls and procedures
also ensures that the Form 20-F that it files under the Exchange Act is recorded, processed, summarized andreported within the time periods specified in the Commission’s rules and forms. The evaluation was performed
under the supervision of Toyota’s Chairman of the Board and the Executive Vice President. Toyota’s disclosure
controls and procedures are designed to provide reasonable assurance of achieving its objectives. Managerial
judgment was necessary to evaluate the cost-benefit relationship of possible controls and procedures. The
Chairman of the Board and the Executive Vice President have concluded that Toyota’s disclosure controls andprocedures are effective at the reasonable assurance level.
(b) MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING
Toyota’s management is responsible for establishing and maintaining effective internal control overfinancial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with U.S. GAAP. Toyota’s internal control over financial reporting includes those policies andprocedures that:(i)pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect thetransactions and dispositions of Toyota’s assets;(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with U.S. GAAP, and that Toyota’s receipts and expenditures arebeing made only in accordance with authorizations of Toyota’s management and directors; and(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of Toyota’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
Toyota’s management conducted an evaluation of the effectiveness of internal control over financial
reporting based on the framework in “Internal Control — Integrated Framework (1992)” issued by theCommittee of Sponsoring Organizations of the Treadway Commission.
123Based on this evaluation, management concluded that Toyota’s internal control over financial reporting was
effective as of March 31, 2013.
PricewaterhouseCoopers Aarata, an independent registered public accounting firm that audited theconsolidated financial statements included in this report, has also audited the effectiveness of Toyota’s internal
control over financial reporting as of March 31, 2013, as stated in its report included herein.
(c) ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM
Toyota’s independent registered public accounting firm, PricewaterhouseCoopers Aarata, has issued an
audit report on the effectiveness of Toyota’s internal control over financial reporting. This report appears in
Item 18.
(d) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in Toyota’s internal control over financial reporting during fiscal 2013 thathave materially affected, or are reasonably likely to materially affect, Toyota’s internal control over financial
reporting.
ITEM 16. [RESERVED]ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Toyota maintains an audit & supervisory board system, in accordance with the Corporation Act. Toyota’s
audit & supervisory board is comprised of seven audit & supervisory board members, four of whom are outside
audit & supervisory board members. Each audit & supervisory board member has been appointed at Toyota’sshareholders’ meetings and has certain statutory powers independently, including auditing the business affairs
and accounts of Toyota.
Toyota’s audit & supervisory board has determined that it does not have an “audit committee financial
expert” serving on the audit & supervisory board. The qualifications for, and powers of, the audit & supervisoryboard member delineated in the Corporation Act are different from those anticipated for any audit committee
financial expert. Audit & supervisory board members have the authority to be given reports from a certified
public accountant or an accounting firm concerning audits, including technical accounting matters. At the sametime, each audit & supervisory board member has the authority to consult internal and external experts on
accounting matters. Each audit & supervisory board member must fulfill the requirements under Japanese laws
and regulations and otherwise follow Japanese corporate governance practices and, accordingly, Toyota’s
audit & supervisory board has confirmed that it is not necessarily in Toyota’s best interest to nominate as audit &supervisory board member a person who meets the definition of audit committee financial experts. Although
Toyota does not have an audit committee financial expert on its audit & supervisory board, Toyota believes that
Toyota’s current corporate governance system, taken as a whole, including the audit & supervisory board
members’ ability to consult internal and external experts, is fully equivalent to a system having an audit
committee financial expert on its audit & supervisory board.
ITEM 16B. CODE OF ETHICS
Toyota has adopted a code of ethics that applies to its directors and managing officers, including its
principal executive officer, principal financial officer, principal accounting officer or controller, or persons
performing similar functions. A copy of Toyota’s code of ethics is included as an exhibit to this annual report on
Form 20-F.
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
PricewaterhouseCoopers Aarata has audited the financial statements of Toyota included in this annual reporton Form 20-F.
124

The following table presents the aggregate fees for professional services and other services rendered byPricewaterhouseCoopers Aarata and the various network and member firms of PricewaterhouseCoopers to
Toyota in fiscal 2012 and fiscal 2013.
Yen in millions
2012
2013

Audit Fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit-related Fees(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Fees(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All Other Fees(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥3,03981411
276¥3,12081
388
122

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

¥3,807¥3,711(1) Audit Fees consist of fees billed for the annual audit services engagement and other audit services, which
are those services that only the external auditor reasonably can provide, and include the services of annual
audit, quarterly reviews and assessment and reviews of the effectiveness of internal controls over financial
reporting of Toyota and its subsidiaries and affiliated companies; the services associated with SEC
registration statements or other documents issued in connection with securities offerings such as comfort
letters and consents; and consultations as to the accounting or disclosure treatment of transactions or events.
(2) Audit-related Fees consist of fees billed for assurance and related services that are reasonably related to theperformance of the audit or review of its financial statements or that are traditionally performed by theexternal auditor, and mainly include services such as due diligence; agreed-upon or expanded audit
procedures; internal control reviews and assistance; review of the information system; and financial
statement audits of employee benefit plans.
(3) Tax Fees include fees billed for tax compliance services, including services such as tax planning, advice andcompliance of federal, state, local and international tax; the review of tax returns; assistance with tax audits
and appeals; tax-only valuation services including transfer pricing and cost segregation studies; expatriate
tax assistance and compliance.
(4) All Other Fees primarily include fees billed for risk management advisory services of assessment andtesting of security infrastructure controls; advisory services relating to establishment of a new subsidiary;
assistance with continuing education and training; and services providing information related to automotive
market conditions and sales networks.
Policies and Procedures of the Audit & Supervisory Board
Below is a summary of the current policies and procedures of the audit & supervisory board for the preapproval of audit and permissible non-audit services performed by Toyota’s independent public accountants.
Under the policy, the Representative Directors submit a request for general pre-approval of audit andpermissible non-audit services for the following fiscal year, which shall include details of the specific services
and estimated fees for the services, to the audit & supervisory board, which reviews and determines whether or
not to grant the request by the end of March of the fiscal year. Upon the general pre-approval of the audit &supervisory board, the Representative Directors are not required to obtain any specific pre-approval for audit andpermissible non-audit services so long as those services fall within the scope of the general pre-approval
provided.
The audit & supervisory board makes a further determination of whether or not to grant a request to revise
the general pre-approval for the applicable fiscal year if such request is submitted by the Representative
Directors. Such request may include (i) adding any audit or permissible non-audit services other than the ones
listed in the general pre-approval and (ii) obtaining services that are listed in the general pre-approval but of
which the total fee amount exceeds the amount affirmed by the general pre-approval. The determination ofwhether or not to grant a request to revise the general pre-approval noted in the foregoing may alternatively be125made by an audit & supervisory board member (full time), who is designated in advance by a resolution of theaudit & supervisory board, in which case such audit & supervisory board member (full time) shall report suchdecision at the next meeting of the audit & supervisory board. The performance of audit and permissible nonaudit services and the payment of fees are subject to review by the audit & supervisory board at least once every
fiscal half year.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Toyota does not have an audit committee. Toyota is relying on the general exemption contained inRule 10A-3(c)(3) under the Exchange Act, which provides an exemption from the NYSE’s listing standards
relating to audit committees for foreign companies like Toyota that have an audit & supervisory board. Toyota’s
reliance on Rule 10A-3(c)(3) does not, in its opinion, materially adversely affect the ability of its audit &supervisory board to act independently and to satisfy the other requirements of Rule 10A-3.
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
The following table sets forth purchases of Toyota’s common stock by Toyota and its affiliated purchasers
during fiscal 2013:

(a)
Total
Number of
SharesPurchased(1)(b)
Average
Price Paid per
Share (Yen)(1)

(c)
Total
Number of
SharesPurchased as
Part of
Publicly
Announced
Plans or
Programs(2)April 1, 2012 – April 30, 2012 . . . . . . . . . . . . . . . . . . . . . .
May 1, 2012 – May 31, 2012 . . . . . . . . . . . . . . . . . . . . . . .
June 1, 2012 – June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . .
July 1, 2012 – July 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . .
August 1, 2012 – August 31, 2012 . . . . . . . . . . . . . . . . . . .
September 1, 2012 – September 30, 2012 . . . . . . . . . . . . . .
October 1, 2012 – October 31, 2012 . . . . . . . . . . . . . . . . . .
November 1, 2012 – November 30, 2012 . . . . . . . . . . . . . .
December 1, 2012 – December 31, 2012 . . . . . . . . . . . . . .
January 1, 2013 – January 31, 2013 . . . . . . . . . . . . . . . . . .
February 1, 2013 – February 28, 2013 . . . . . . . . . . . . . . . .
March 1, 2013 – March 31, 2013 . . . . . . . . . . . . . . . . . . . .

1,666
733
800
1,564
1,716
1,567
1,780
1,897
2,735
3,959
3,478
4,190

¥3,402.94
3,187.69
3,014.46
3,099.45
3,166.86
3,175.44
3,041.16
3,251.14
3,557.44
4,152.68
4,710.11
4,875.81

—
—
—
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—
—

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

26,085———Period(d)Maximum
Number of
Shares thatMay Yet Be
Purchased
Under thePlans or
Programs(2)(1) A portion of the above purchases were made as a result of holders of shares constituting less than one unit,
which is 100 shares of common stock, requesting Toyota to purchase shares that are a fraction of a unit, in
accordance with Toyota’s share handling regulations. Toyota is required to comply with such requests
pursuant to the Corporation Act. See “Additional Information — Memorandum and Articles of Association— Japanese Unit Share System”.
(2) Toyota did not have any publicly announced plans or programs in place for fiscal 2013.
ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
Not applicable.
126

ITEM 16G. CORPORATE GOVERNANCE
Significant Differences in Corporate Governance Practices between Toyota and U.S. Companies Listed on
the NYSE
Pursuant to home country practices exemptions granted by the NYSE, Toyota is permitted to follow certain
corporate governance practices complying with Japanese laws, regulations and stock exchange rules in lieu of the
NYSE’s listing standards. The SEC approved changes to the NYSE’s listing standards related to corporate
governance practices of listed companies (the “NYSE Corporate Governance Rules”) in November 2003, as
further amended in November 2004. Toyota is exempt from the approved changes, except for requirements that(a) Toyota’s audit & supervisory board satisfies the requirements of Rule 10A-3 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), (b) Toyota must disclose significant differences in its corporate
governance practices as compared to those followed by domestic companies under the NYSE listing standards,(c) Toyota’s principal executive officer must notify the NYSE in writing after any executive officer of Toyota
becomes aware of any non-compliance with (a) and (b), and (d) Toyota must submit annual and interim written
affirmations to the NYSE. Toyota’s corporate governance practices and those followed by domestic companies
under the NYSE Corporate Governance Rules have the following significant differences:
1. Directors. Toyota currently does not have any directors who will be deemed an “independent director” asrequired under the NYSE Corporate Governance Rules for U.S. listed companies. Unlike the NYSE Corporate
Governance Rules, the Corporation Act does not require Japanese companies with an audit & supervisory board
such as Toyota to have any independent directors on its board of directors. While the NYSE Corporate
Governance Rules require that the non-management directors of each listed company meet at regularly scheduled
executive sessions without management, Toyota currently has no non-management director on its board of
directors. Unlike the NYSE Corporate Governance Rules, the Corporation Act does not require, and accordingly
Toyota does not have, an internal corporate organ or committee comprised solely of independent directors.
Toyota currently has three outside directors under the Corporation Act. Under the Corporation Act, an“outside” director is any person who is not, and was not at any time during the past, an executive director (adirector who engages in the execution of business), executive officer, manager or employee of Toyota or its
subsidiaries. Such qualifications for an “outside” director are different from the director independence
requirements under the NYSE Corporate Governance Rules.
In addition, pursuant to the regulations of the Japanese stock exchanges, Toyota is required to have one ormore “independent director(s)/audit & supervisory board member(s),” defined under the relevant regulations of
the Japanese stock exchanges as “outside directors” or “outside audit & supervisory board members” (as defined
under the Corporation Act), who are unlikely to have any conflicts of interests with Toyota’s generalshareholders. Each of the outside directors of Toyota satisfies the “independent director/audit & supervisoryboard member” requirements under the regulations of the Japanese stock exchanges. The definition of“independent director/audit & supervisory board member” is different from that of the definition of independent
director under the NYSE Corporate Governance Rules.
2. Committees. Under the Corporation Act, Toyota has elected to structure its corporate governance system
as a company with audit & supervisory board members, who are under a statutory duty to monitor, review andreport on the management of the affairs of Toyota. Toyota, as with other Japanese companies with an audit &supervisory board, does not have certain committees that are required of U.S. listed companies subject to the
NYSE Corporate Governance Rules, including those that are responsible for director nomination, corporate
governance and executive compensation.
Pursuant to the Corporation Act, Toyota’s board of directors nominates and submits a proposal for theappointment of directors for shareholder approval. The shareholders vote on such nomination at the generalshareholders’ meeting. The Corporation Act requires that the respective limits or calculation formula, and kind(in case that the remuneration, bonus and any other benefits in compensation for the execution of duties(“remuneration, etc.”) are to be paid in other than cash) of remuneration, etc. to be paid to directors, and limits of127

remuneration, etc. to be paid to audit & supervisory board members, must be determined by a resolution of thegeneral shareholders’ meeting, unless their remuneration, etc. is provided for in the articles of incorporation. The
distribution of remuneration, etc. among each director is broadly delegated to the board of directors and the
distribution of remuneration among each audit & supervisory board member is determined by consultation
among the audit & supervisory board members.
3. Audit Committee. Toyota avails itself of paragraph (c)(3) of Rule 10A-3 of the Exchange Act, which
provides a general exemption from the audit committee requirements to a foreign private issuer with an audit &supervisory board, subject to certain requirements which continue to be applicable under Rule 10A-3.
Pursuant to the requirements of the Corporation Act, Toyota elects its audit & supervisory board members
through a resolution adopted at a general shareholders’ meeting. Toyota currently has seven audit & supervisoryboard members, which exceeds the minimum number of audit & supervisory board members required pursuant to
the Corporation Act.
Unlike the NYSE Corporate Governance Rules, the Corporation Act, among others, does not require audit &supervisory board members to establish an expertise in accounting nor are they required to present other special
knowledge and experience. Under the Corporation Act, the audit & supervisory board may determine theauditing policies and methods of investigating the conditions of Toyota’s business and assets, and may resolve
other matters concerning the execution of the audit & supervisory board member’s duties. The audit &supervisory board also prepares auditors’ reports and gives consent to proposals of the nomination of audit &supervisory board members and accounting auditors.
Toyota currently has four outside audit & supervisory board members under the Corporation Act. Under the
Corporation Act, at least half of the audit & supervisory board members must be “outside” audit & supervisoryboard members, which is any person who was not a director, accounting counselor (in the case that an accounting
counselor is a legal entity, a member of such entity who is in charge of its affairs), executive officer, manager, or
employee of Toyota or its subsidiaries at any time during the past. Such qualifications for an “outside” audit &supervisory board member are different from the audit committee independence requirement under the NYSE
Corporate Governance Rules.
Each of the outside audit & supervisory board members of Toyota satisfies the “independent director/
audit & supervisory board member” requirements under the regulations of the Japanese stock exchanges, as
described above in “1. Directors.”
4. Corporate Governance Guidelines. Unlike the NYSE Corporate Governance Rules, Toyota is not
required to adopt corporate governance guidelines under Japanese laws and regulations, including the
Corporation Act, the Financial Instruments and Exchange Law of Japan and stock exchange rules. However,Toyota is required to resolve the matters at the board of directors concerning provision of the system to ensure
the execution of duties of the directors to comply with the laws, regulations and the articles of incorporation, andany other systems to ensure the adequacy of the business required under the ordinance of the Ministry of Justice(“internal control system” or “naibu-tosei”), and to disclose such matters resolved, policies and the present statusof its corporate governance in its business reports, annual securities report and certain other disclosure documentsin accordance with the regulations under the Financial Instruments and Exchange Law and stock exchange rules
in respect of timely disclosure.
5. Code of Business Conduct and Ethics. Unlike the NYSE Corporate Governance Rules, under Japaneselaws and regulations including the Corporation Act, the Financial Instruments and Exchange Law and stock
exchange rules, Toyota is not required to adopt a code of business conduct and ethics for directors, officers andemployees. Accordingly, Toyota is not required to adopt and disclose waivers of the code of business conduct andethics for these individuals. However, Toyota resolved to maintain a code of business conduct and ethics as part ofits “internal control system”, or “naibu-tosei”, pursuant to the Corporation Act, in order to ensure its employees’
128comply with laws, regulations and the articles of incorporation, etc. Toyota additionally maintains guidelines andinternal regulations such as “Guiding Principles at Toyota”, “Toyota Code of Conduct” and a code of ethics
pursuant to Section 406 of the Sarbanes-Oxley Act. Please see “Code of Ethics” for additional information.
6. Shareholder Approval of Equity Compensation Plans. Unlike the NYSE Corporate Governance Rules,
under which material revisions to equity-compensation plans of listed companies are subject to shareholder
approval, pursuant to the Corporation Act, generally, the adoption of equity compensation plans for directors is
required to be approved by a majority of shareholders at the general shareholders’ meeting as the remuneration,etc. in other than cash. In addition to such approval, if Toyota desires to adopt an equity-compensation plan underwhich stock acquisition rights are granted on specially favorable terms to the recipient (except where such rights
are granted to all of its shareholders on a pro-rata basis at the same time), then Toyota obtains approval by supermajority (as defined in the Corporation Act) at the ordinary general shareholders’ meeting. Such approval isapplicable only to stock acquisition rights to be granted within one year from the date of the approval.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.

129PART IIIITEM 17. FINANCIAL STATEMENTS
Not applicable.
ITEM 18. FINANCIAL STATEMENTS
The following financial statements are filed as part of this annual report on Form 20-F.

130

TOYOTA MOTOR CORPORATIONINDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-2

Consolidated balance sheets at March 31, 2012 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-3

Consolidated statements of income for the years ended
March 31, 2011, 2012 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-5

Consolidated statements of comprehensive income for the years ended
March 31, 2011, 2012 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-6

Consolidated statements of shareholders’ equity for the years ended
March 31, 2011, 2012 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-7

Consolidated statements of cash flows for the years ended
March 31, 2011, 2012 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-9Notes to consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F - 11All financial statements schedules are omitted because they are not applicable or the required information isshown in the financial statements or the notes thereto.
Financial statements of 50% or less owned persons accounted for by the equity method have been omitted
because the registrant’s proportionate share of the income from continuing operations before income taxes is lessthan 20% of consolidated income (loss) from continuing operations before income taxes and the investment inand advances to each company is less than 20% of consolidated total assets.

F-1

Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
Toyota Jidosha Kabushiki Kaisha(“Toyota Motor Corporation”)
In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in allmaterial respects, the financial position of Toyota Motor Corporation and its subsidiaries at March 31, 2012 and2013, and the results of their operations and their cash flows for each of the three years in the period ended
March 31, 2013 in conformity with accounting principles generally accepted in the United States of America.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of March 31, 2013, based on criteria established in Internal Control—Integrated Framework(1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The
Company’s management is responsible for these financial statements, for maintaining effective internal control
over financial reporting and for its assessment of the effectiveness of internal control over financial reporting,included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under
Item 15(b). Our responsibility is to express opinions on these financial statements and on the Company’s internal
control over financial reporting based on our integrated audits. We conducted our audits in accordance with thestandards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audits to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement and whether effective internal control over financial reporting was maintained in allmaterial respects. Our audits of the financial statements included examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting,assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audits also included performing such otherprocedures as we considered necessary in the circumstances. We believe that our audits provide a reasonablebasis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles, and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (iii) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of thecompany’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.
/s/ PricewaterhouseCoopers Aarata
Nagoya, Japan
June 24, 2013

F-2

TOYOTA MOTOR CORPORATIONCONSOLIDATED BALANCE SHEETSASSETS
Yen in millions
March 31,
2012
2013

Current assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade accounts and notes receivable, less allowance for
doubtful accounts of ¥13,004 million in 2012 and¥15,875 million ($169 million) in 2013 . . . . . . . . . . . . . . . . . .
Finance receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥ 1,679,200
80,301
1,181,070¥ 1,718,297
106,700
1,445,663$ 18,270
1,135
15,371

1,999,827
4,114,897
408,547
1,622,282
718,687
516,378

1,971,659
5,117,660
432,693
1,715,786
749,398
527,034

20,96454,414
4,601
18,243
7,968
5,604

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12,321,189

13,784,890

146,570

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

5,602,462

6,943,766

73,830Investments and other assets
Marketable securities and other securities investments . . . . . . . .
Affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employees receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,053,572
1,920,987
56,524
460,851

5,176,582
2,103,283
53,741569,816

55,041
22,363571
6,059

Total investments and other assets . . . . . . . . . . . . . . . . . . . .

6,491,934

7,903,422

84,034

Property, plant and equipment
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vehicles and equipment on operating leases . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,243,261
3,660,912
9,094,399
2,575,353
275,357

1,303,611
3,874,279
9,716,180
3,038,011
291,539

13,861
41,194
103,308
32,302
3,100

Total property, plant and equipment, at cost . . . . . . . . . . . .
Less - Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . .

16,849,282(10,613,902)

18,223,620(11,372,381)

193,765(120,918)

Total property, plant and equipment, net . . . . . . . . . . . . . . .

6,235,380

6,851,239

72,847

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 30,650,965¥ 35,483,317$ 377,281

The accompanying notes are an integral part of these consolidated financial statements.
F-3

TOYOTA MOTOR CORPORATIONCONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Current liabilities
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 3,450,649
2,512,620
2,242,583
629,093
1,828,523
133,778
984,328¥ 4,089,528
2,704,428
2,113,778
721,065
2,185,537
156,266
941,918$ 43,482
28,75522,475
7,667
23,238
1,662
10,015

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,781,574

12,912,520

137,294

Long-term liabilities
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,042,277
708,402908,883
143,351

7,337,824
766,112
1,385,927
308,078

78,0208,146
14,736
3,276

Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,802,913

9,797,941

104,178

397,050
550,650
11,917,074(1,178,833)

397,050
551,040
12,689,206(356,123)

4,222
5,859
134,920(3,787)(1,135,680)(1,133,138)(12,048)

Total Toyota Motor Corporation shareholders’ equity . . . . . .

10,550,261

12,148,035

129,166

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

516,217624,821

6,643

Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,066,478

12,772,856

135,809

Commitments and contingencies
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . .

¥30,650,965¥35,483,317$377,281

Shareholders’ equity
Toyota Motor Corporation shareholders’ equity
Common stock, no par value,authorized: 10,000,000,000 shares in 2012 and 2013;
issued: 3,447,997,492 shares in 2012 and 2013 . . . . . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income (loss) . . . . . . . . . . . . .
Treasury stock, at cost, 281,187,739 shares in 2012 and
280,568,824 shares in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The accompanying notes are an integral part of these consolidated financial statements.
F-4

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF INCOME
Yen in millions

For the years ended March 31,
2011
2012
2013

Net revenues
Sales of products . . . . . . . . . . . . . . . . . . . . . . . . . .
Financing operations . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . .
Costs and expenses
Cost of products sold . . . . . . . . . . . . . . . . . . . . . . .
Cost of financing operations . . . . . . . . . . . . . . . . . .
Selling, general and administrative . . . . . . . . . . . .
Total costs and expenses . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . .
Other income (expense)
Interest and dividend income . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange gain, net . . . . . . . . . . . . . . . . . . .
Other income (loss), net . . . . . . . . . . . . . . . . . . . . .
Total other income (expense) . . . . . . . . . . . . . . .
Income before income taxes and equity in earnings ofaffiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliated companies . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Net income attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to Toyota Motor
Corporation . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
For the year
ended
March 31,2013

¥17,820,520
1,173,168
18,993,688¥17,511,916
1,071,737
18,583,653¥20,914,150
1,150,042
22,064,192$222,373
12,228234,601

15,985,783
629,543
1,910,083

15,795,918
592,646
1,839,462

18,010,569
630,426
2,102,309

191,500
6,703
22,353

18,525,409
468,279

18,228,026
355,627

20,743,304
1,320,888

220,556
14,04590,771(29,318)
14,305
19,25395,011

99,865(22,922)
37,105(36,802)77,246

98,673(22,967)
5,551
1,504
82,761

1,049
(244)
59
16
880

563,290
312,821215,016
465,485

432,873
262,272
197,701
368,302

1,403,649
551,686
231,519
1,083,482

14,925
5,866
2,461
11,520(57,302)(84,743)(121,319)(1,290)962,163$ 10,230¥

408,183¥

283,559¥

Yen

U.S. dollars

Net income attributable to Toyota Motor
Corporation per share- Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥130.17

¥

90.21

¥

303.82$

3.23- Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥130.16

¥

90.20

¥

303.78$

3.23

Cash dividends per share . . . . . . . . . . . . . . . . . . . . . . .

¥

50.00

¥

50.00

¥

90.00

$

0.96

The accompanying notes are an integral part of these consolidated financial statements.
F-5

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments . . . . . . . . . . . . .
Unrealized gains (losses) on securities, net ofreclassification adjustments . . . . . . . . . . . . . . . . . . . . .
Pension liability adjustments . . . . . . . . . . . . . . . . . . . . . .

¥ 465,485¥368,302¥1,083,482$11,520(299,578)(93,292)

461,754

4,910(27,657)
11,454

131,794(65,110)374,209
14,711

3,979
156

Total other comprehensive income (loss) . . . . . . . . . . . . .

(315,781)(26,608)

850,674

9,045

Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

149,704

341,694

1,934,156

20,565

Less: Comprehensive income attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(39,407)(85,744)(149,283)(1,587)

Comprehensive income attributable to Toyota Motor
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 110,297¥255,950¥1,784,873$18,978

The accompanying notes are an integral part of these consolidated financial statements.
F-6

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Yen in millions
Total
Accumulated
Toyota Motor
Additional
other
Treasury Corporation
Total
Common paid-in
Retained comprehensive
stock,
shareholders’ Noncontrolling shareholders’stockcapitalearnings income (loss)
at costequityinterests
equityBalances at March 31, 2010 . . . . . . . . . . ¥397,050 ¥501,331 ¥11,568,602
Equity transaction with noncontrollinginterests and other . . . . . . . . . . . . . . . . .
Issuance during the year . . . . . . . . . . . . . .
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss)
Foreign currency translation
adjustments . . . . . . . . . . . . . .
Unrealized gains (losses) on
securities, net ofreclassification
adjustments . . . . . . . . . . . . . .
Pension liability
adjustments . . . . . . . . . . . . . .

¥ (846,835) ¥(1,260,425) ¥10,359,723¥ 570,720¥10,930,443

2,310
2,119

5,183

7,493
2,119

408,183

57,302

465,485(287,613)(287,613)(11,965)(299,578)(26,058)(26,058)(1,599)(27,657)

2,310
2,119
408,183

15,785

Total comprehensive income . . . . . .
Dividends paid to Toyota Motor
Corporation shareholders . . . . . . . . . . .
Dividends paid to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase and reissuance of common
stock . . . . . . . . . . . . . . . . . . . . . . . . . . .

(141,120)

Equity transaction with noncontrollinginterests and other . . . . . . . . . . . . . . . . .
Issuance during the year . . . . . . . . . . . . . .
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss)
Foreign currency translation
adjustments . . . . . . . . . . . . . .
Unrealized gains (losses) on
securities, net ofreclassification
adjustments . . . . . . . . . . . . . .
Pension liability
adjustments . . . . . . . . . . . . . .

43,311
1,483(45,365)¥ 587,653¥10,920,024

117,262
1,483(119,824)(2,562)
1,483

283,559

84,743368,302(87,729)(87,729)(5,563)(93,292)

129,328

129,328

2,466

131,794(69,208)(69,208)

4,098(65,110)

255,950

85,744

341,694(958)¥(1,144,721) ¥(1,261,383) ¥10,332,371(6,503)125,819(156,785)

96(141,120)(27,657)

283,559(958)(156,785)(116)

Balances at March 31, 2012 . . . . . . . . . . ¥397,050 ¥550,650 ¥11,917,074

11,454
149,704(27,657)

Total comprehensive income . . . . . .
Dividends paid to Toyota Motor
Corporation shareholders . . . . . . . . . . .
Dividends paid to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase and reissuance of common
stock . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4,331)39,407(141,120)(958)

Balances at March 31, 2011 . . . . . . . . . . ¥397,050 ¥505,760 ¥11,835,665

15,785110,297(156,785)(37,356)(37,356)¥ 516,217¥11,066,478(20)¥(1,178,833) ¥(1,135,680) ¥10,550,261(20)

The accompanying notes are an integral part of these consolidated financial statements.
F-7

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (CONTINUED)
Yen in millions

Commonstock

Total
Accumulated
Toyota Motor
other
Treasury Corporation
Total
comprehensive
stock,
shareholders’ Noncontrolling shareholders’income (loss)
at costequityinterests
equityAdditional
paid-in
Retained
capitalearnings

Balances at March 31, 2012 . . . . . . . . . ¥397,050 ¥550,650 ¥11,917,074
Equity transaction with noncontrollinginterests and other . . . . . . . . . . . . . . . .
Issuance during the year
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss)
Foreign currency translation
adjustments . . . . . . . . . . . . .
Unrealized gains (losses) on
securities, net ofreclassification
adjustments . . . . . . . . . . . . .
Pension liability
adjustments . . . . . . . . . . . . .

¥(1,178,833) ¥(1,135,680) ¥10,550,261¥516,217¥11,066,478

675

4,961

5,636

962,163

121,319

1,083,482

434,638

434,638

27,116

461,754368,507368,507

5,702

374,209675
962,163

19,565

Total comprehensive income . . . . .
Dividends paid to Toyota Motor
Corporation shareholders . . . . . . . . . .
Dividends paid to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . .
Purchase and reissuance of common
stock . . . . . . . . . . . . . . . . . . . . . . . . . .

(190,008)(285)(4,854)

14,711

149,283

1,934,156(190,008)(23)

Balances at March 31, 2013 . . . . . . . . . ¥397,050 ¥551,040 ¥12,689,206

19,565
1,784,873

2,542(190,008)(45,640)(45,640)¥624,821¥12,772,856

2,234¥ (356,123) ¥(1,133,138) ¥12,148,035

2,234

U.S. dollars in millions

Commonstock
Balances at March 31, 2012 . . . . . . . . . $Total
Accumulated
Toyota Motor
other
Treasury Corporation
Total
comprehensive
stock,
shareholders’ Noncontrolling shareholders’income (loss)
at costequityinterests
equityAdditional
paid-in
Retained
capitalearnings

4,222 $

Equity transaction with noncontrollinginterests and other . . . . . . . . . . . . . . . .
Issuance during the year
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss)
Foreign currency translation
adjustments . . . . . . . . . . . . .
Unrealized gains (losses) on
securities, net ofreclassification
adjustments . . . . . . . . . . . . .
Pension liability
adjustments . . . . . . . . . . . . .

5,855 $

126,710$(12,535) $(12,075) $

7

5,489

$

60

10,2301,290

11,520

4,622

4,622

288

4,910

3,918

3,918

61

3,979

208

(2,020)

208

(52)

156

18,978

1,587

20,565(2,020)(2,020)(486)(3)
4,222 $

5,859 $

(0)134,920

27$(3,787) $(12,048) $

(486)

24
129,166

24
$

6,643

The accompanying notes are an integral part of these consolidated financial statements.
F-8

117,666

53

Total comprehensive income . . . . .

Balances at March 31, 2013 . . . . . . . . . $$7
10,230

Dividends paid to Toyota Motor
Corporation shareholders . . . . . . . . . .
Dividends paid to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . .
Purchase and reissuance of common
stock . . . . . . . . . . . . . . . . . . . . . . . . . .

112,177$

135,809

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS
Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Cash flows from operating activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 465,485 ¥ 368,302 ¥ 1,083,482 $ 11,520
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,175,573
1,067,830
1,105,109
11,750
Provision for doubtful accounts and credit
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,140
9,623
27,367291
Pension and severance costs, less payments . . . . . .
(23,414)
16,711(20,429)(217)
Losses on disposal of fixed assets . . . . . . . . . . . . .
36,21433,52832,221
343
Unrealized losses on available-for-salesecurities, net . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,915
53,831
2,104
22
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . .
85,710
6,395
160,008
1,701
Equity in earnings of affiliated companies . . . . . . .
(215,016)(197,701)(231,519)(2,461)
Changes in operating assets and liabilities, andother(Increase) decrease in accounts and notes
receivable . . . . . . . . . . . . . . . . . . . . . . . . . .
421,423(585,464)(168,260)(1,789)(Increase) decrease in inventories . . . . . . . . .
51,808(344,923)
50,483537(Increase) decrease in other current assets . . .
38,307(180,529)(47,033)(500)
Increase (decrease) in accounts payable . . . . .
(406,210)
756,363(209,284)(2,225)
Increase (decrease) in accrued income
taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(40,629)
20,94322,127
235
Increase in other current liabilities . . . . . . . . .
239,319
316,366
280,083
2,978
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183,384
111,160
364,857
3,879
Net cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . . . .
2,024,009
1,452,435
2,451,316
26,064
Cash flows from investing activities
Additions to finance receivables . . . . . . . . . . . . . . . . . . (8,438,785) (8,333,248) (10,004,928) (106,379)
Collection of finance receivables . . . . . . . . . . . . . . . . . .
7,934,364
8,007,711
9,063,011
96,364
Proceeds from sales of finance receivables . . . . . . . . . .
69,57653,99939,845424
Additions to fixed assets excluding equipment leased toothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(629,326)(723,537)(854,561)(9,086)
Additions to equipment leased to others . . . . . . . . . . . . (1,061,865)(808,545) (1,119,591) (11,904)
Proceeds from sales of fixed assets excluding
equipment leased to others . . . . . . . . . . . . . . . . . . . . .
51,342
36,63339,191
417
Proceeds from sales of equipment leased to others . . . .
486,695
431,313533,441
5,672
Purchases of marketable securities and security
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,421,807) (3,173,634) (3,412,423) (36,283)
Proceeds from sales of marketable securities andsecurity investments . . . . . . . . . . . . . . . . . . . . . . . . . .
189,037
162,160
35,178374
Proceeds upon maturity of marketable securities andsecurity investments . . . . . . . . . . . . . . . . . . . . . . . . . .
3,527,119
2,694,665
2,633,913
28,005
Payment for additional investments in affiliatedcompanies, net of cash acquired . . . . . . . . . . . . . . . . .
(299)
(147)
16,216
172
Changes in investments and other assets, and other . . . .
177,605
209,9723,396
36
Net cash used in investing activities . . . . ¥(2,116,344) ¥(1,442,658) ¥ (3,027,312) $ (32,188)

The accompanying notes are an integral part of these consolidated financial statements.
F-9

TOYOTA MOTOR CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Cash flows from financing activities
Proceeds from issuance of long-term debt . . . . . . . . . . ¥ 2,931,436 ¥ 2,394,807 ¥ 3,191,223 $ 33,931
Payments of long-term debt . . . . . . . . . . . . . . . . . . . . . (2,489,632) (2,867,572) (2,682,136) (28,518)
Increase in short-term borrowings . . . . . . . . . . . . . . . .
162,260
311,651
201,261
2,139
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(141,120)(156,785)(190,008)(2,020)Purchase of common stock, and other . . . . . . . . . . . . . .
(28,617)(37,448)(43,098)(458)
Net cash provided by (used in)financing activities . . . . . . . . . . . . . .

434,327(355,347)

477,242

5,074

Effect of exchange rate changes on cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(127,029)(55,939)

137,851

1,466

Net increase (decrease) in cash and cash equivalents . . . . . .
Cash and cash equivalents at beginning of year . . . . . . . . . .

214,963
1,865,746(401,509)
2,080,709

39,097
1,679,200

416
17,854

Cash and cash equivalents at end of year . . . . . . . . . . . . . . . ¥ 2,080,709 ¥ 1,679,200 ¥ 1,718,297$ 18,270

The accompanying notes are an integral part of these consolidated financial statements.
F-10

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of operations:Toyota is primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, sportutility vehicles, trucks and related parts and accessories throughout the world. In addition, Toyota provides
financing, vehicle and equipment leasing and certain other financial services primarily to its dealers and theircustomers to support the sales of vehicles and other products manufactured by Toyota.
2. Summary of significant accounting policies:
The parent company and its subsidiaries in Japan and its foreign subsidiaries maintain their records andprepare their financial statements in accordance with accounting principles generally accepted in Japan and thoseof their countries of domicile. Certain adjustments and reclassifications have been incorporated in theaccompanying consolidated financial statements to conform to U.S.GAAP.
Significant accounting policies after reflecting adjustments for the above are as follows:
Basis of consolidation and accounting for investments in affiliated companies The consolidated financial statements include the accounts of the parent company and those of its majorityowned subsidiary companies. All significant intercompany transactions and accounts have been eliminated.
Investments in affiliated companies in which Toyota exercises significant influence, but which it does notcontrol, are stated at cost plus equity in undistributed earnings. Consolidated net income includes Toyota’s equity
in current earnings of such companies, after elimination of unrealized intercompany profits. Investments in suchcompanies are reduced to net realizable value if a decline in market value is determined other-than-temporary.
Investments in non-public companies in which Toyota does not exercise significant influence (generally less than
a 20% ownership interest) are stated at cost. The accounts of variable interest entities as defined by U.S.GAAP
are included in the consolidated financial statements, if applicable.
Estimates The preparation of Toyota’s consolidated financial statements in conformity with U.S.GAAP requires
management to make estimates and assumptions that affect the amounts reported in the consolidated financial
statements and accompanying notes. Actual results could differ from those estimates. The more significant
estimates include: product warranties, liabilities accrued for recalls and other safety measures, allowance for
doubtful accounts and credit losses, residual values for leased assets, impairment of long-lived assets, pension
costs and obligations, fair value of derivative financial instruments, other-than-temporary losses on marketablesecurities, litigation liabilities and valuation allowance for deferred tax assets.
Translation of foreign currencies All asset and liability accounts of foreign subsidiaries and affiliated companies are translated into Japanese
yen at appropriate year-end current exchange rates and all income and expense accounts of those subsidiaries aretranslated at the average exchange rates for each period. The foreign currency translation adjustments areincluded as a component of accumulated other comprehensive income.
Foreign currency receivables and payables are translated at appropriate year-end current exchange rates andthe resulting transaction gains or losses are recorded in operations currently.
F-11

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Revenue recognition Revenues from sales of vehicles and parts are generally recognized upon delivery which is considered tohave occurred when the dealer has taken title to the product and the risk and reward of ownership have been
substantively transferred, except as described below.
Toyota’s sales incentive programs principally consist of cash payments to dealers calculated based on
vehicle volume or a model sold by a dealer during a certain period of time. Toyota accrues these incentives asrevenue reductions upon the sale of a vehicle corresponding to the program by the amount determined in therelated incentive program.
Revenues from the sales of vehicles under which Toyota conditionally guarantees the minimum resale value
are recognized on a pro rata basis from the date of sale to the first exercise date of the guarantee in a manner
similar to operating lease accounting. The underlying vehicles of these transactions are recorded as assets and are
depreciated in accordance with Toyota’s depreciation policy.
Revenues from retail financing contracts and finance leases are recognized using the effective yield method.
Revenues from operating leases are recognized on a straight-line basis over the lease term.
The sale of certain vehicles includes a determinable amount for the contract, which entitles customers tofree vehicle maintenance. Such revenues from free maintenance contracts are deferred and recognized as revenue
over the period of the contract, which approximates the pattern of the related costs.
Other costs Advertising and sales promotion costs are expensed as incurred. Advertising costs were ¥308,903 million,¥304,713 million and ¥330,870 million ($3,518 million) for the years ended March 31, 2011, 2012 and 2013,
respectively.
Toyota generally warrants its products against certain manufacturing and other defects. Provisions for
product warranties are provided for specific periods of time and/or usage of the product and vary depending upon
the nature of the product, the geographic location of the sale and other factors. Toyota records a provision for
estimated product warranty costs at the time the related sale is recognized based on estimates that Toyota will
incur to repair or replace product parts that fail while under warranty. The amount of accrued estimated warranty
costs is primarily based on historical experience as to product failures as well as current information on repair
costs. The amount of warranty costs accrued also contains an estimate of warranty claim recoveries to bereceived from suppliers.
In addition to product warranties above, Toyota accrues for costs of recalls and other safety measures basedon management’s estimates when it is probable a liability has been incurred and the amount of loss can bereasonably estimated. Toyota employs an estimation model, to accrue at the time of vehicle 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 ofrecalls and other safety measures.
Litigation liabilities are established to cover probable losses on various lawsuits based on the information
currently available. Attorneys’ fees are expensed as incurred.
Research and development costs are expensed as incurred. Research and development costs were¥730,340 million, ¥779,806 million and ¥807,454 million ($8,585 million) for the years ended March 31, 2011,2012 and 2013, respectively.
F-12

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Cash and cash equivalents Cash and cash equivalents include all highly liquid investments with original maturities of three months or
less, that are readily convertible to known amounts of cash and are so near maturity that they present
insignificant risk of changes in value because of changes in interest rates.
Marketable securities Marketable securities consist of debt and equity securities. Debt and equity securities designated asavailable-for-sale are carried at fair value with unrealized gains or losses included as a component ofaccumulated other comprehensive income in shareholders’ equity, net of applicable taxes. Individual securities
classified as available-for-sale are reduced to net realizable value for other-than-temporary declines in market
value. In determining if a decline in value is other-than-temporary, Toyota considers the length of time and theextent 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 toallow for any anticipated recovery in market value. Realized gains and losses, which are determined on the
average-cost method, are reflected in the consolidated statements of income when realized.
Security investments in non-public companies Security investments in non-public companies are carried at cost as fair value is not readily determinable. If
the value of a non-public security investment is estimated to have declined and such decline is judged to beother-than-temporary, Toyota recognizes the impairment of the investment and the carrying value is reduced toits fair value. Determination of impairment is based on the consideration of such factors as operating results,business plans and estimated future cash flows. Fair value is determined principally through the use of the latest
financial information.
Finance receivables Finance receivables recorded on Toyota’s consolidated balance sheets are comprised of the unpaid principalbalance, plus accrued interest, less charge-offs, net of any unearned income and deferred origination costs andthe allowance for credit losses. Deferred origination costs are amortized so as to approximate a level rate of
return over the term of the related contracts.
The determination of portfolio segments is based primarily on the qualitative consideration of the nature of
Toyota’s business operations and finance receivables. The three portfolio segments within finance receivables are
as follows:
Retail receivables portfolio segment The retail receivables portfolio segment consists of retail installment sales contracts acquired mainly fromdealers (“auto loans”) including credit card loans. These contracts acquired must first meet specified credit
standards. Thereafter, Toyota retains responsibility for contract collection and administration.
The contract periods of auto loans primarily range from 2 to 7 years. Toyota acquires security interests inthe vehicles financed and has the right to repossess vehicles if customers fail to meet their contractual
obligations. Almost all auto loans are non-recourse, which relieves the dealers from financial responsibility in theevent of repossession.
F-13

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Toyota classifies retail receivables portfolio segment into one class based on common risk characteristics
associated with the underlying finance receivables, the similarity of the credit risks, and the quantitative
materiality.
Finance lease receivables portfolio segment Toyota acquires new vehicle lease contracts originated primarily through dealers. The contract periods ofthese primarily range from 2 to 5 years. Lease contracts acquired must first meet specified credit standards after
which Toyota assumes ownership of the leased vehicle. Toyota is responsible for contract collection andadministration during the lease period.
Toyota is generally permitted to take possession of the vehicle upon a default by the lessee. The residual
value is estimated at the time the vehicle is first leased. Vehicles returned to Toyota at the end of their leases are
sold by auction.
Toyota classifies finance lease receivables portfolio segment into one class based on common risk
characteristics associated with the underlying finance receivables and the similarity of the credit risks.
Wholesale and other dealer loan receivables portfolio segment Toyota provides wholesale financing to qualified dealers to finance inventories. Toyota acquires security
interests in vehicles financed at wholesale. In cases where additional security interests would be required, Toyota
takes dealership assets or personal assets, or both, as additional security. If a dealer defaults, Toyota has the rightto liquidate any assets acquired and seek legal remedies.
Toyota also makes term loans to dealers for business acquisitions, facilities refurbishment, real estatepurchases and working capital requirements. These loans are typically secured with liens on real estate, otherdealership assets and/or personal assets of the dealers.
Toyota classifies wholesale and other dealer loan receivables portfolio segment into three classes ofwholesale, real estate and working capital, based on the risk characteristics associated with the underlying
finance receivables.
A receivable account balance is considered impaired when, based on current information and events, it isprobable that Toyota will be unable to collect all amounts due according to the terms of the contract. Factors suchas payment history, compliance with terms and conditions of the underlying loan agreement and other subjective
factors related to the financial stability of the borrower are considered when determining whether a loan is
impaired. Impaired finance receivables include certain nonaccrual receivables for which a specific reserve has
been assessed. An account modified as a troubled debt restructuring is considered to be impaired. A troubled debt
restructuring occurs when an account is modified through a concession to a borrower experiencing financial
difficulty.
All classes of wholesale and other dealer loan receivables portfolio segment are placed on nonaccrual statuswhen full payment of principal or interest is in doubt, or when principal or interest is 90 days or more
contractually past due, whichever occurs first. Collateral dependent loans are placed on nonaccrual status if
collateral is insufficient to cover principal and interest. Interest accrued but not collected at the date a receivable
is placed on nonaccrual status is reversed against interest income. In addition, the amortization of net deferredfees is suspended.
F-14

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Interest income on nonaccrual receivables is recognized only to the extent it is received in cash. Accounts
are restored to accrual status only when interest and principal payments are brought current and future payments
are reasonably assured. Receivable balances are written-off against the allowance for credit losses when it isprobable that a loss has been realized. Retail receivables class and finance lease receivables class are not placed
generally on nonaccrual status when principal or interest is 90 days or more past due. However, these receivables
are generally written-off against the allowance for credit losses when payments due are no longer expected to bereceived or the account is 120 days contractually past due, whichever occurs first.
As of March 31, 2012 and 2013, finance receivables on nonaccrual status were as follows:
Yen in millions
March 31,
2012
2013

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥ 2,822958
5,485
11,73637¥ 4,443
1,135
1,985
4,354
70

$ 47
12
21
46
1

¥21,038¥11,987$127

As of March 31, 2012 and 2013, finance receivables past due over 90 days and still accruing were as
follows:
Yen in millions
March 31,
2012
2013

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥24,263
7,674¥18,442
3,464

$196
37

¥31,937¥21,906$233

Allowance for credit losses Allowance for credit losses is established to cover probable losses on finance receivables and vehicles andequipment on operating leases, resulting from the inability of customers to make required payments. Provision
for credit losses is included in selling, general and administrative expenses.
The allowance for credit losses is based on a systematic, ongoing review and evaluation performed as partof the credit-risk evaluation process, historical loss experience, the size and composition of the portfolios, current
economic events and conditions, the estimated fair value and adequacy of collateral and other pertinent factors.
Vehicles and equipment on operating leases are not within the scope of accounting guidance governing thedisclosure of portfolio segments.
Retail receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on retail receivables by applying
reserve rates to such receivables. Reserve rates are calculated mainly by historical loss experience, current
economic events and conditions and other pertinent factors.
F-15

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Finance lease receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on finance lease receivables byapplying reserve rates to such receivables. Reserve rates are calculated mainly by historical loss experience,current economic events and conditions and other pertinent factors such as used car markets.
Wholesale and other dealer loan receivables portfolio segment Toyota calculates allowance for credit losses to cover probable losses on wholesale and other dealer loan
receivables by applying reserve rates to such receivables. Reserve rates are calculated mainly by financial
conditions of the dealers, terms of collateral setting, current economic events and conditions and other pertinent
factors.
Toyota establishes specific reserves to cover the estimated losses on individually impaired receivables
within the wholesale and other dealer loan receivables portfolio segment. Specific reserves on impaired
receivables are determined by the present value of expected future cash flows or the fair value of collateral when
it is probable that such receivables will be unable to be fully collected. The fair value of the underlying collateralis used if the receivable is collateral-dependent. The receivable is determined collateral-dependent if therepayment of the loan is expected to be provided by the underlying collateral. For the receivables in which thefair value of the underlying collateral was in excess of the outstanding balance, no allowance was provided.
Troubled debt restructurings in the retail receivables and finance lease receivables portfolio segments are
specifically identified as impaired and aggregated with their respective portfolio segments when determining theallowance for credit losses. Impaired loans in the retail receivables and finance lease receivables portfolio
segments are insignificant for individual evaluation and Toyota has determined that allowance for credit losses
for each of the retail receivables and finance lease receivables portfolio segments would not be materiallydifferent if they had been individually evaluated for impairment.
Specific reserves on impaired receivables within the wholesale and other dealer loan receivables portfolio
segment are recorded by an increase to the allowance for credit losses based on the related measurement of
impairment. Related collateral, if recoverable, is repossessed and sold and the account balance is written-off.
Any shortfall between proceeds received and the carrying cost of repossessed collateral is charged to theallowance. Recoveries are reversed from the allowance for credit losses.
Allowance for residual value losses Toyota is exposed to risk of loss on the disposition of off-lease vehicles to the extent that sales proceeds are
not sufficient to cover the carrying value of the leased asset at lease termination. Toyota maintains an allowanceto cover probable estimated losses related to unguaranteed residual values on its owned portfolio. The allowanceis evaluated considering projected vehicle return rates and projected loss severity. Factors considered in thedetermination of projected return rates and loss severity include historical and market information on used
vehicle sales, trends in lease returns and new car markets, and general economic conditions. Management
evaluates the foregoing factors, develops several potential loss scenarios, and reviews allowance levels todetermine whether reserves are considered adequate to cover the probable range of losses.
The allowance for residual value losses is maintained in amounts considered by Toyota to be appropriate inrelation to the estimated losses on its owned portfolio. Upon disposal of the assets, the allowance for residual
losses is adjusted for the difference between the net book value and the proceeds from sale.
F-16

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Inventories Inventories are valued at cost, not in excess of market, cost being determined on the “average-cost” basis,
except for the cost of finished products carried by certain subsidiary companies which is determined on the“specific identification” basis or “last-in, first-out” (“LIFO”) basis. Inventories valued on the LIFO basis totaled¥220,582 million and ¥220,082 million ($2,340 million) at March 31, 2012 and 2013, respectively. Had the“first-in, first-out” basis been used for those companies using the LIFO basis, inventories would have been
¥56,799 million and ¥66,979 million ($712 million) higher than reported at March 31, 2012 and 2013,
respectively.
Property, plant and equipment Property, plant and equipment are stated at cost. Major renewals and improvements are capitalized; minor
replacements, maintenance and repairs are charged to current operations. Depreciation of property, plant andequipment is mainly computed on the declining-balance method for the parent company and Japanesesubsidiaries and on the straight-line method for foreign subsidiary companies at rates based on estimated useful
lives of the respective assets according to general class, type of construction and use. The estimated useful lives
range from 2 to 65 years for buildings and from 2 to 20 years for machinery and equipment.
Vehicles and equipment on operating leases to third parties are originated by dealers and acquired by certain
consolidated subsidiaries. Such subsidiaries are also the lessors of certain property that they acquire directly.
Vehicles and equipment on operating leases are depreciated primarily on a straight-line method over the leaseterm, generally from 2 to 5 years, to the estimated residual value. Incremental direct costs incurred in connection
with the acquisition of operating lease contracts are capitalized and amortized on a straight-line method over thelease term.
Long-lived assets Toyota reviews its long-lived assets for impairment whenever events or changes in circumstances indicatethat the carrying amount of an asset group may not be recoverable. An impairment loss would be recognizedwhen the carrying amount of an asset group exceeds the estimated undiscounted cash flows expected to result
from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is
calculated by the excess of the carrying value of the asset group over its fair value. Fair value is determined
mainly using a discounted cash flow valuation method.
Goodwill and intangible assets Goodwill is not material to Toyota’s consolidated balance sheets.
Intangible assets consist mainly of software. Intangible assets with a definite life are amortized on a straightline basis with estimated useful lives mainly of 5 years. Intangible assets with an indefinite life are tested for
impairment whenever events or circumstances indicate that a carrying amount of an asset (asset group) may not
be recoverable.
An impairment loss would be recognized when the carrying amount of an asset exceeds the estimatedundiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss to berecorded is generally determined by the difference between the fair value of the asset using a discounted cash
flow valuation method and the current book value.
F-17

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Employee benefit obligations Toyota has both defined benefit and defined contribution plans for employees’ retirement benefits.
Retirement benefit obligations are measured by actuarial calculations in accordance with U.S.GAAP. The funded
status of the defined benefit postretirement plans is recognized on the consolidated balance sheets as prepaid
pension and severance costs or accrued pension and severance costs, and the funded status change is recognizedin the year in which it occurs through other comprehensive income.
Environmental matters Environmental expenditures relating to current operations are expensed or capitalized as appropriate.
Expenditures relating to existing conditions caused by past operations, which do not contribute to current or
future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable andreasonably estimable, generally no later than the completion of feasibility studies or Toyota’s commitment to aplan of action. The cost of each environmental liability is estimated by using current technology available andvarious engineering, financial and legal specialists within Toyota based on current law. Such liabilities do notreflect any offset for possible recoveries from insurance companies and are not discounted. There were nomaterial changes in these liabilities for all periods presented.
Income taxes The provision for income taxes is computed based on the pretax income included in the consolidated
statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities forthe expected future tax consequences of temporary differences between the carrying amounts and the tax bases ofassets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than
not that a tax benefit will not be realized.
Derivative financial instruments Toyota employs derivative financial instruments, including forward foreign currency exchange contracts,
foreign currency options, interest rate swaps, interest rate currency swap agreements and interest rate options tomanage its exposure to fluctuations in interest rates and foreign currency exchange rates. All derivative financial
instruments are recorded on the consolidated balance sheets at fair value, taking into consideration the effects oflegally enforceable master netting agreements that allow us to net settle positive and negative positions and offset
cash collateral held with the same counterparty on a net basis. Toyota does not use derivatives for speculation or
trading purposes. Changes in the fair value of derivatives are recorded each period in current earnings or throughother comprehensive income, depending on whether a derivative is designated as part of a hedge transaction andthe type of hedge transaction. The ineffective portion of all hedges is recognized currently in operations.
Net income attributable to Toyota Motor Corporation per share Basic net income attributable to Toyota Motor Corporation per common share is calculated by dividing net
income attributable to Toyota Motor Corporation by the weighted-average number of shares outstanding during
the reported period. The calculation of diluted net income attributable to Toyota Motor Corporation per commonshare is similar to the calculation of basic net income attributable to Toyota Motor Corporation per share, exceptthat the weighted-average number of shares outstanding includes the additional dilution from the assumed
exercise of dilutive stock options.

F-18

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Stock-based compensation Toyota measures compensation expense for its stock-based compensation plan based on the grant-date fairvalue of the award, and accounts for the award.
Other comprehensive income Other comprehensive income refers to revenues, expenses, gains and losses that, under U.S.GAAP are
included in comprehensive income, but are excluded from net income as these amounts are recorded directly as
an adjustment to shareholders’ equity. Toyota’s other comprehensive income is primarily comprised of
unrealized gains/losses on marketable securities designated as available-for-sale, foreign currency translation
adjustments and adjustments attributed to pension liabilities associated with Toyota’s defined benefit pension
plans.
Accounting changes In June 2011, FASB issued updated guidance on the presentation of comprehensive income. This guidance
requires to present the total of comprehensive income, the components of net income, and the components ofother comprehensive income either in a single continuous statements of comprehensive income or in two
separate but consecutive statements. Toyota adopted this guidance from the interim period within the fiscal year,
begun after December 15, 2011. The adoption of this guidance did not have a material impact on Toyota’s
consolidated financial statements.
Recent pronouncements to be adopted in future periods In December 2011, FASB issued updated guidance of disclosures about offsetting assets and liabilities. This
guidance requires additional disclosures about gross and net information for assets and liabilities including
financial instruments eligible for offset in the balance sheets. This guidance is effective for fiscal year beginningon or after January 1, 2013, and for interim period within the fiscal year. Management does not expect thisguidance to have a material impact on Toyota’s consolidated financial statements.
In February 2013, FASB issued updated guidance on the presentation of items reclassified out ofaccumulated other comprehensive income. This guidance requires to present, either in a single note orparenthetically on the face of the financial statements, the effect of significant amounts reclassified out of eachcomponent of accumulated other comprehensive income based on its source. This guidance is effective for fiscal
year beginning on or after December 15, 2012, and for interim period within the fiscal year. Management does
not expect this guidance to have a material impact on Toyota’s consolidated financial statements.
Reclassifications Certain prior year amounts have been reclassified to conform to the presentations as of and for the year
ended March 31, 2013.
3. U.S. dollar amounts:
U.S. dollar amounts presented in the consolidated financial statements and related notes are included solely
for the convenience of the reader and are unaudited. These translations should not be construed as representations
that the yen amounts actually represent, or have been or could be converted into, U.S. dollars. For this purpose,
the rate of ¥94.05 = U.S. $1, the approximate current exchange rate at March 31, 2013, was used for thetranslation of the accompanying consolidated financial amounts of Toyota as of and for the year ended March 31,
2013.
F-19

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Supplemental cash flow information:
Cash payments for income taxes were ¥211,487 million, ¥282,440 million and ¥331,007 million($3,519 million) for the years ended March 31, 2011, 2012 and 2013, respectively. Interest payments during theyears ended March 31, 2011, 2012 and 2013 were ¥382,903 million, ¥365,109 million and ¥325,575 million($3,462 million), respectively.
Capital lease obligations of ¥10,478 million, ¥5,847 million and ¥3,749 million ($40 million) were incurred
for the years ended March 31, 2011, 2012 and 2013, respectively.
5. Acquisitions and dispositions:
During the years ended March 31, 2011, 2012 and 2013, Toyota made several acquisitions and dispositions,however the assets and liabilities acquired or transferred were not material.
6. Marketable securities and other securities investments:
Marketable securities and other securities investments include public and corporate bonds and common
stocks for which the aggregate cost, gross unrealized gains and losses and fair value are as follows:

Cost

Available-for-sale
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . . ¥3,606,290
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
605,889
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
449,393
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥4,661,572
Securities not practicable to determine fair value
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

74,357444,073
19,974¥ 538,404¥51,147
15,643
11¥66,801¥3,629,500
1,034,319
469,356¥5,133,175

22,04779,420¥ 101,467

Available-for-sale
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . . ¥4,350,942
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
599,371
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
537,272
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,487,585

F-20

¥

Fair
value

¥

Cost

Securities not practicable to determine fair value
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yen in millions
March 31, 2012
Gross
Gross
unrealized
unrealized
gains
losses¥¥

20,14879,082
99,230

Yen in millions
March 31, 2013
Gross
Gross
unrealized
unrealized
gains
losses¥ 211,070
804,405
31,416¥1,046,891¥ 8,866
2,593
2¥11,461

Fair
value

¥4,553,146
1,401,183
568,686¥6,523,015

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Cost

Available-for-sale
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities not practicable to determine fair value
Public and corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$46,262
6,373
5,713$58,348

U.S. dollars in millions
March 31, 2013
Gross
Gross
unrealized unrealized
gains
losses$ 2,2448,553
334$11,131

$ 94
28
0
$122

Fair
value

$48,412
14,898
6,047$69,357$

214
841$ 1,055

Public and corporate bonds included in available-for-sale represent 60% of Japanese bonds, and 40% of
U.S., European and other bonds as of March 31, 2012, and 49% of Japanese bonds, and 51% of U.S., European
and other bonds as of March 31, 2013. Listed stocks on the Japanese stock markets represent 83% and 85% ofcommon stocks which are included in available-for-sale as of March 31, 2012 and 2013, respectively. Public andcorporate bonds include primarily government bonds, and “Other” includes primarily investment trusts.
Unrealized losses continuing over a 12 month period or more in the aggregate were not material at
March 31, 2012 and 2013.
As of March 31, 2012 and 2013, maturities of public and corporate bonds and other included in availablefor-sale are mainly from 1 to 10 years.
Proceeds from sales of available-for-sale securities were ¥189,037 million, ¥162,160 million and¥35,178 million ($374 million) for the years ended March 31, 2011, 2012 and 2013, respectively. On those sales,
gross realized gains were ¥8,974 million, ¥4,822 million and ¥1,048 million ($11 million) and gross realized
losses were ¥87 million, ¥15 million and ¥31 million ($0 million), respectively.
During the years ended March 31, 2011, 2012 and 2013, Toyota recognized impairment losses on availablefor-sale securities of ¥7,915 million, ¥53,831 million and ¥2,104 million ($22 million), respectively, which areincluded in “Other income (loss), net” in the accompanying consolidated statements of income.
In the ordinary course of business, Toyota maintains long-term investment securities, included in“Marketable securities and other securities investments” and issued by a number of non-public companies which
are recorded at cost, as their fair values were not readily determinable. Management employs a systematic
methodology to assess the recoverability of such investments by reviewing the financial viability of theunderlying companies and the prevailing market conditions in which these companies operate to determine if
Toyota’s investment in each individual company is impaired and whether the impairment is other-thantemporary. Toyota periodically performs this impairment test for significant investments recorded at cost. If theimpairment is determined to be other-than-temporary, the carrying value of the investment is written-down by the
impaired amount and the losses are recognized currently in operations.

F-21

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
7. Finance receivables:
Finance receivables consist of the following:
Yen in millions
March 31,
2012
2013

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale and other dealer loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥ 7,248,793
955,430
2,033,954¥ 9,047,782
1,029,887
2,615,728$ 96,202
10,95027,812

10,238,177
105,533(494,123)

12,693,397
135,398(628,340)

134,964
1,439(6,681)(77,353)(30,637)(24,238)(83,858)(28,928)(26,243)

(892)
(307)
(279)

Total allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . .

(132,228)(139,029)(1,478)

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

9,717,359(4,114,897)

12,061,426(5,117,660)

128,244(54,414)

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

¥ 5,602,462¥ 6,943,766$ 73,830

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

Finance receivables were geographically distributed as follows: in North America 58.1%, in Japan 12.0%, in
Europe 10.3%, in Asia 7.1% and in Other 12.5% as of March 31, 2012, and in North America 57.6%, in Europe
10.0%, in Japan 9.9%, in Asia 9.5% and in Other 13.0% as of March 31, 2013.
The contractual maturities of retail receivables, the future minimum lease payments on finance leases andthe contractual maturities of wholesale and other dealer loans at March 31, 2013 are summarized as follows:
Yen in millions

U.S. dollars in millions
WholesaleFinanceand other
Retailleasesdealer loans

FinanceleasesWholesaleand other
dealer loans

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥3,032,542
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,218,871
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,721,430
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,127,558
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
609,255
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . .
338,126¥285,324
192,978
162,639
65,767
29,716
6,447¥2,040,442
149,091
115,640
125,180
119,497
65,878$32,244
23,59318,303
11,9896,478
3,595$3,034
2,052
1,729
699
316
69

$21,695
1,585
1,230
1,331
1,271
700

¥9,047,782¥742,871¥2,615,728$96,202$7,899$27,812

Years ending March 31,

Retail

F-22

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Finance leases consist of the following:
Yen in millions
March 31,
2012
2013

Minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated unguaranteed residual values . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred origination costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Unearned income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥688,642 ¥ 742,871 $ 7,899
266,788
287,016
3,051
955,430
1,029,887
10,950
3,722
3,577
38
(90,887)(87,537)(931)(30,637)(28,928)(307)¥837,628 ¥ 916,999 $ 9,750

Toyota is exposed to credit risk on Toyota’s finance receivables. Credit risk is the risk of loss arising fromthe failure of customers or dealers to meet the terms of their contracts with Toyota or otherwise fail to perform asagreed. Toyota estimates allowance for credit losses by variety of credit-risk evaluation process to cover probableand estimable losses above.
The table below shows the amount of the finance receivables segregated into aging categories based on thenumber of days outstanding as of March 31, 2012 and 2013:
Yen in millions
March 31, 2012

Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31-60 days past due . . . . . . . . . . . . . . . . . . . . . . .
61-90 days past due . . . . . . . . . . . . . . . . . . . . . . .
Over 90 days past due . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

RetailFinanceleasesWholesale

Real estate

Working
capital¥7,146,365
64,314
13,851
24,263¥7,248,793¥ 939,345
5,766
2,645
7,674
¥ 955,430¥ 923,642
3—
53¥ 923,698¥535,296——98¥535,394¥574,671
70—
121¥574,862

Yen in millions
March 31, 2013

Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31-60 days past due . . . . . . . . . . . . . . . . . . . . . . .
61-90 days past due . . . . . . . . . . . . . . . . . . . . . . .
Over 90 days past due . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

RetailFinanceleasesWholesale

Real estate

Working
capital¥8,923,588
84,354
17,312
22,528¥9,047,782¥1,021,074
3,106
1,661
4,046
¥1,029,887¥1,305,953
45——¥1,305,998¥658,114
63——¥658,177¥651,553———¥651,553

U.S. dollars in millions
March 31, 2013
FinanceleasesWholesale
Real estate

Working
capitalRetailCurrent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31-60 days past due . . . . . . . . . . . . . . . . . . . . . . .
61-90 days past due . . . . . . . . . . . . . . . . . . . . . . .
Over 90 days past due . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$$94,881897
184
240
96,202
F-23$$

10,85733
17
43
10,950$$13,8860——
13,886

$

$

6,997
1
—
—
6,998

$

$

6,928
—
—
—
6,928

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The tables below show the recorded investment for each credit quality of the finance receivable within thewholesale and other dealer loan receivables portfolio segment in the United States and other regions as ofMarch 31, 2012 and 2013:
United States
The wholesale and other dealer loan receivables portfolio segment is primarily segregated into credit
qualities below based on internal risk assessments by dealers.
Performing: Account not classified as either Credit Watch, At Risk or Default
Credit Watch: Account designated for elevated attention
At Risk: Account where there is an increased likelihood that default may exist based on qualitative andquantitative factors
Default: Account is not currently meeting contractual obligations or we have temporarily waived certain
contractual requirements

Wholesale

Yen in millions
March 31, 2012
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Watch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥513,632
55,5136,394
466¥307,867
38,382
12,15730¥116,871
5,014
618
423

¥ 938,370
98,90919,169919

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

¥576,005¥358,436¥122,926¥1,057,367

Wholesale

Yen in millions
March 31, 2013
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Watch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥720,308
93,6433,114
106¥373,176
54,8012,651
131¥152,048
7,485
2,641
193

¥1,245,532
155,9298,406
430

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

¥817,171¥430,759¥162,367¥1,410,297

Wholesale

U.S. dollars in millions
March 31, 2013
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $Credit Watch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-24

$

Total

Total

Total

7,659 $
996
33
1

3,968
583
28
1

$

1,616
80
28
2

$

13,243
1,659
89
4

8,689

4,580

$

1,726

$

14,995$TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other regions
Credit qualities of the wholesale and other dealer loan receivables portfolio segment in other regions arealso monitored based on internal risk assessments by dealers on a consistent basis as in the United States. These
accounts classified as “Credit Watch” or “At Risk” were not significant in other regions, and consequently thetables below summarize information for two categories, “Performing” and “Default”.

Wholesale

Yen in millions
March 31, 2012
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥330,264
17,429¥170,886
6,072¥451,505
431¥ 952,655
23,932

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

¥347,693¥176,958¥451,936¥ 976,587

Wholesale

Yen in millions
March 31, 2013
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥485,464
3,363¥225,808
1,610¥488,679
507¥1,199,951
5,480

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

¥488,827¥227,418¥489,186¥1,205,431

Wholesale

U.S. dollars in millions
March 31, 2013
Real estate Working capital

Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

5,161
36

$

2,401
17

$

5,196
6

$

12,75859

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

$

5,197

$

2,418

$

5,202

$

12,817

F-25

Total

Total

Total

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The tables below summarize information about impaired finance receivables:
Yen in millions
Unpaid principal balance
March 31,
2012
2013

Recorded investment
March 31,
2012
2013

Individually evaluated allowance
March 31,
2012
2013

Impaired account balances individually evaluated for impairment with an allowance:
Wholesale . . . . . . . . . . . . ¥ 8,105¥11,967¥ 8,105¥11,967¥2,716
Real estate . . . . . . . . . . . .
16,4296,726
16,4296,726
4,252
Working capital . . . . . . . .
995
5,246
995
5,246
573
Total . . . . . . . . . . . .

¥25,529¥23,939¥25,529¥23,939¥7,541¥1,4501,721
3,691¥6,862

Impaired account balances individually evaluated for impairment without an allowance:
Wholesale . . . . . . . . . . . . ¥14,015¥ 6,236¥14,015¥ 6,236
Real estate . . . . . . . . . . . .
15
9,165
15
9,165
Working capital . . . . . . . .
38
496
38
496
Total . . . . . . . . . . . .

¥14,068¥15,897¥14,068¥15,897

Impaired account balances aggregated and evaluated for impairment:
Retail . . . . . . . . . . . . . . . . ¥42,438¥40,487¥41,790¥39,797
Finance leases . . . . . . . . .
325
103
180
85
Total . . . . . . . . . . . .

¥42,763¥40,590¥41,970¥39,882

Total impaired account balances:
Retail . . . . . . . . . . . . . . . . ¥42,438
Finance leases . . . . . . . . .
325
Wholesale . . . . . . . . . . . .
22,120Real estate . . . . . . . . . . . .
16,444
Working capital . . . . . . . .
1,033¥40,487103
18,203
15,891
5,742¥41,790180
22,12016,444
1,033¥39,79785
18,203
15,891
5,742

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

¥80,426¥81,567¥79,718¥82,360

Yen in millions
Average impaired finance receivables
Interest income recognized
For the years ended March 31,
For the years ended March 31,
2012
2013
2012
2013

Total impaired account balances:
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital . . . . . . . . . . . . . . . . . . . . . . .

¥44,362279
18,734
16,137
2,592¥39,616161
20,61815,574
3,820¥3,7007
79
395
79¥3,056
1
166
415
83

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

¥82,104¥79,789¥4,260¥3,721

F-26

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
U.S. dollars in millions
March 31, 2013
Recorded investment

Unpaid principal balance

Impaired account balances individually evaluated for impairment with an allowance:
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . .
$127
$127
Real estate . . . . . . . . . . . . . . . . . . . . . . . . .
72
72
Working capital . . . . . . . . . . . . . . . . . . . . .
56
56
Total . . . . . . . . . . . . . . . . . . . . . . . . .

$255

$255

Individually evaluatedallowance

$16
18
39
$73

Impaired account balances individually evaluated for impairment without an allowance:
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . .
$ 67
$ 67
Real estate . . . . . . . . . . . . . . . . . . . . . . . . .
97
97
Working capital . . . . . . . . . . . . . . . . . . . . .
5
5
Total . . . . . . . . . . . . . . . . . . . . . . . . .

$169

Impaired account balances aggregated and evaluated for impairment:
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$430
Finance leases . . . . . . . . . . . . . . . . . . . . . .
1

$169
$423
1

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

$431

$424

Total impaired account balances:
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . .
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital . . . . . . . . . . . . . . . . . . . . .

$430
1
194
169
61

$423
1
194
169
61

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

$855

$848
U.S. dollars in millions
For the year ended March 31, 2013
Average impaired
Interest income
finance receivables
recognized

Total impaired account balances:
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$421
2
219
165
41

$33
0
2
4
1

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

$848

$40

The amount of finance receivables modified as a troubled debt restructuring for the year ended March 31,
2013 was not significant for all classes of finance receivables. Finance receivables modified as troubled debt
restructurings for the year ended March 31, 2013 and for which there was a payment default were not significant
for all classes of such receivables.

F-27

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
8. Other receivables:
Other receivables relate to arrangements with certain component manufacturers whereby Toyota procuresinventory for these component manufactures and is reimbursed for the related purchases.
9. Inventories:
Inventories consist of the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplies and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 981,612
347,878
221,036
71,756¥1,007,659
388,780
235,476
83,871$10,714
4,134
2,504
891

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

¥1,622,282¥1,715,786$18,243

10. Vehicles and equipment on operating leases:
Vehicles and equipment on operating leases consist of the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Deferred income and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,536,595 ¥2,999,294
87,848104,351(49,090)(65,634)$31,890
1,110
(698)

Less - Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,575,353(667,406)(8,135)

3,038,011(749,238)(8,020)32,302(7,966)(86)

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

¥1,899,812¥2,280,753$24,250

Rental income from vehicles and equipment on operating leases was ¥475,472 million, ¥451,361 millionand ¥476,935 million ($5,071 million) for the years ended March 31, 2011, 2012 and 2013, respectively. Future
minimum rentals from vehicles and equipment on operating leases are due in installments as follows:
Yen in millions

U.S. dollars
in millions

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥460,685
302,690
140,865
38,042
11,164
4,126$ 4,898
3,218
1,498
405
119
44

Total minimum future rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥957,572$10,182

Years ending March 31,

The future minimum rentals as shown above should not be considered indicative of future cash collections.
F-28

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
11. Allowance for doubtful accounts and credit losses:
An analysis of activity within the allowance for doubtful accounts relating to trade accounts and notes
receivable for the years ended March 31, 2011, 2012 and 2013 is as follows:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

¥ 46,706 ¥ 44,047 ¥ 44,097
1,806
5,843
1,745
(2,690)(699)(457)(1,775)(5,094)
759

$ 469
19
(5)
8

¥ 44,047$ 491

Yen in millions

Allowance for doubtful accounts at beginning of year . . . . . . . . .
Provision for doubtful accounts, net of reversal . . . . . . . . . . . . . .
Write-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts at end of year . . . . . . . . . .

¥ 44,097¥ 46,144

The other amount includes the impact of consolidation and deconsolidation of certain entities due tochanges in ownership interest and currency translation adjustments for the years ended March 31, 2011, 2012 and2013.
A portion of the allowance for doubtful accounts balance at March 31, 2012 and 2013 totaling¥31,093 million and ¥30,269 million ($322 million), respectively, is attributed to certain non-current receivablebalances which are reported as other assets in the consolidated balance sheets.
An analysis of the allowance for credit losses relating to finance receivables and vehicles and equipment on
operating leases for the years ended March 31, 2011, 2012 and 2013 is as follows:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

¥232,479 ¥167,615 ¥140,363
2,334
3,780
25,622(86,115) (51,578) (56,701)
18,26816,415
14,690649
4,131
23,075$1,493
272
(603)
156
246

¥167,615$1,564

Yen in millions

Allowance for credit losses at beginning of year . . . . . . . . . . . . .
Provision for credit losses, net of reversal . . . . . . . . . . . . . . . . . .
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for credit losses at end of year . . . . . . . . . . . . . .

¥140,363¥147,049

The other amount primarily includes the impact of currency translation adjustments for the years ended
March 31, 2011, 2012 and 2013.

F-29

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
An analysis of the allowance for credit losses above relating to retail receivables portfolio segment, financelease receivables portfolio segment and wholesale and other dealer loan receivables portfolio segment for theyears ended March 31, 2012 and 2013 are as follows:
Yen in millions
For the year ended March 31, 2012
Wholesale andRetailFinance leases Other dealer loans

Allowance for credit losses at beginning of year . . . . . . . . . . . . . . . . ¥ 92,199
Provision for credit losses, net of reversal . . . . . . . . . . . . . . . . . . . . .
13,569Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(44,742)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,051Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,276
Allowance for credit losses at end of year . . . . . . . . . . . . . . . . .

¥ 77,353¥36,024(4,508)(2,499)718
902¥28,580(4,767)
(305)
16
714

¥30,637¥24,238

Yen in millions
For the year ended March 31, 2013
Wholesale andRetailFinance leases Other dealer loans

Allowance for credit losses at beginning of year . . . . . . . . . . . . . . . . ¥ 77,353
Provision for credit losses, net of reversal . . . . . . . . . . . . . . . . . . . . .
29,079Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(48,528)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,795
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,159Allowance for credit losses at end of year . . . . . . . . . . . . . . . . .

¥ 83,858¥30,637(4,063)(2,775)590
4,539¥24,238(2,006)
(110)
3
4,118

¥28,928¥26,243

U.S. dollars in millions
For the year ended March 31, 2013
Wholesale andRetailFinance leases Other dealer loans

Allowance for credit losses at beginning of year . . . . . . . . . . . . . . . .
Provision for credit losses, net of reversal . . . . . . . . . . . . . . . . . . . . .
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

823
309
(516)
136
140

$

326
(43)
(30)
6
48

$

257
(21)
(1)
0
44

Allowance for credit losses at end of year . . . . . . . . . . . . . . . . .

$

892

$

307

$

279

F-30

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
12. Affiliated companies and variable interest entities:
Investments in and transactions with affiliated companies Summarized financial information for affiliated companies accounted for by the equity method is shown
below:
U.S. dollars
in millions
March 31,2013

Yen in millions
March 31,
2012
2013

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 9,112,895
6,914,208¥ 9,634,769
8,495,078$102,443
90,325

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥16,027,103¥18,129,847$192,768

Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term liabilities and noncontrolling interests . . . . . . . . . . . . . . . . .
Affiliated companies accounted for by the equity method shareholders’equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 5,847,495
4,032,045¥ 6,366,002
4,541,328$ 67,687
48,286

6,147,563

7,222,517

76,795

Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . .

¥16,027,103¥18,129,847$192,768

Toyota’s share of affiliated companies accounted for by the equity
method shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,914,129¥ 2,102,584$ 22,356

Number of affiliated companies accounted for by the equity method at
end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57

56

Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥21,874,143¥22,211,233¥24,242,046$257,757

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2,342,706¥ 2,297,660¥ 2,620,892$ 27,867

Net income attributable to affiliated companies
accounted for by the equity method . . . . . . . . . . . . . .

¥641,771¥554,983¥

705,249$7,499

Equity in earnings of affiliated companies attributableto Toyota Motor Corporation . . . . . . . . . . . . . . . . . . .

¥215,016¥

197,701¥

231,519

$

2,461

F-31

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Entities comprising a significant portion of Toyota’s investment in affiliated companies and percentage ofownership are presented below:
Percentage of ownership
March 31,
2012
2013

Name of affiliated companies

Denso Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota Industries Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aisin Seiki Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyota Tsusho Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toyoda Gosei Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24.9%
24.8%
23.4%
22.1%
43.1%

24.9%
24.8%
23.4%
22.1%
43.0%

Certain affiliated companies accounted for by the equity method with carrying amounts of¥1,467,575 million and ¥1,582,988 million ($16,831 million) at March 31, 2012 and 2013, respectively, werequoted on various established markets at an aggregate value of ¥1,477,413 million and ¥1,954,347 million($20,780 million), respectively. Toyota evaluated its investments in affiliated companies, considering the lengthof time and the extent to which the quoted market prices have been less than the carrying amounts, the financial
condition and near-term prospects of the affiliated companies and Toyota’s ability and intent to retain thoseinvestments in the companies for a period of time. Toyota did not recognize any impairment loss for the years
ended March 31, 2011, 2012 and 2013.
Account balances and transactions with affiliated companies are presented below:
Yen in millions
March 31,
2012
2013

Trade accounts and notes receivable, and other receivables . . . . . . . . . . . . . . .
Accounts payable and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥283,497
707,955¥252,708
592,027

Yen in millions

For the years ended March 31,
2011
2012
2013

Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,612,397
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,655,185¥1,536,326
3,785,284¥1,926,854
4,020,138

U.S. dollars
in millions
March 31,2013

$2,687
6,295
U.S. dollars
in millions
For the year
ended
March 31,2013

$20,488
42,745

Dividends from affiliated companies accounted for by the equity method for the years ended March 31,
2011, 2012 and 2013 were ¥103,169 million, ¥122,950 million and ¥126,977 million ($1,350 million),
respectively.
Toyota does not have any significant related party transactions other than transactions with affiliatedcompanies in the ordinary course of business.
Variable Interest Entities Toyota enters into securitization transactions using special-purpose entities, that are considered variableinterest entities (“VIEs”). Although the finance receivables and vehicles on operating leases related toF-32

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
securitization transactions have been legally sold to the VIEs, Toyota has both the power to direct the activitiesof the VIEs that most significantly impact the VIEs’ economic performance and the obligation to absorb losses of
the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. As aresult, Toyota is considered the primary beneficiary of the VIEs and therefore consolidates the VIEs.
The consolidated securitization VIEs have ¥1,208,136 million in retail finance receivables, ¥65,541 million
in restricted cash and ¥1,040,816 million in secured debt as of March 31, 2012 and have ¥1,135,513 million($12,074 million) in retail finance receivables, ¥41,664 million ($443 million) in vehicles on operating leases,¥58,770 million ($625 million) in restricted cash and ¥978,095 million ($10,400 million) in secured debt as ofMarch 31, 2013. Risks to which Toyota is exposed including credit, interest rate, and/or prepayment risks are notincremental compared with the situation before Toyota enters into securitization transactions.
As for VIEs other than those specified above, neither the aggregate size of these VIEs nor Toyota’s
involvements in these VIEs are material to Toyota’s consolidated financial statements.
13. Short-term borrowings and long-term debt:
Short-term borrowings at March 31, 2012 and 2013 consist of the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Loans, principally from banks, with a weighted-average interest at
March 31, 2012 and March 31, 2013 of 1.93% and of 2.31% per annum,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥1,158,556 ¥1,062,233 $11,294
Commercial paper with a weighted-average interest at March 31, 2012 andMarch 31, 2013 of 0.72% and of 0.52% per annum, respectively . . . . . . . . 2,292,093 3,027,295 32,188¥3,450,649 ¥4,089,528 $43,482
As of March 31, 2013, Toyota has unused short-term lines of credit amounting to ¥2,063,263 million($21,938 million) of which ¥455,180 million ($4,840 million) related to commercial paper programs. Under
these programs, Toyota is authorized to obtain short-term financing at prevailing interest rates for periods not inexcess of 360 days.

F-33

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Long-term debt at March 31, 2012 and 2013 comprises the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Unsecured loans, representing obligations principally to banks, due 2012
to 2029 in 2012 and due 2013 to 2029 in 2013 with interest ranging
from 0.00% to 32.00% per annum in 2012 and from 0.00% to27.30% per annum in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 3,064,785 ¥ 3,142,411 $ 33,412
Secured loans, representing obligations principally to finance receivables
securitization due 2012 to 2050 in 2012 and due 2013 to 2050 in 2013
with interest ranging from 0.37% to 11.23% per annum in 2012 andfrom 0.10% to 11.75% per annum in 2013 . . . . . . . . . . . . . . . . . . . . . . . .
855,015
993,019
10,558
Medium-term notes of consolidated subsidiaries, due 2012 to 2047 in2012 and due 2013 to 2047 in 2013 with interest ranging from 0.13% to8.50% per annum in 2012 and from 0.13% to 9.40% per annum in2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,137,289
4,502,787
47,876
Unsecured notes of parent company, due 2012 to 2019 in 2012 and due
2013 to 2019 in 2013 with interest ranging from 1.07% to 3.00%
per annum in 2012 and from 0.19% to 3.00% per annum in 2013 . . . . . .
530,000
460,000
4,891
Unsecured notes of consolidated subsidiaries, due 2012 to 2031 in 2012and due 2013 to 2031 in 2013 with interest ranging from 0.17% to24.90% per annum in 2012 and from 0.13% to 23.00% per annum in2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
946,460
922,636
9,810
Long-term capital lease obligations, due 2012 to 2030 in 2012 and due
2013 to 2030 in 2013 with interest ranging from 0.38% to 14.40%
per annum in 2012 and from 0.40% to 14.73% per annum in 2013 . . . . .
21,34821,399228
8,554,897 10,042,252 106,775
Less - Current portion due within one year . . . . . . . . . . . . . . . . . . . . . . . . . (2,512,620) (2,704,428) (28,755)¥ 6,042,277 ¥ 7,337,824 $ 78,020
As of March 31, 2013, approximately 40%, 17%, 13% and 30% of long-term debt are denominated in
U.S. dollars, Japanese yen, Australian dollars and other currencies, respectively.
As of March 31, 2013, property, plant and equipment with a book value of ¥91,834 million ($976 million)
and in addition, other assets aggregating ¥1,141,199 million ($12,134 million) were pledged as collateral mainly
for certain debt obligations of subsidiaries. These other assets principally consist of securitized financereceivables.
The aggregate amounts of annual maturities of long-term debt during the next five years are as follows:
Years ending March 31,

2014
2015
2016
2017
2018

............................................................
............................................................
............................................................
............................................................
............................................................
F-34

Yen in millions

U.S. dollars
in millions¥2,704,428
1,703,219
2,090,251
1,207,091
1,341,901$28,755
18,11022,225
12,835
14,268TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Standard agreements with certain banks in Japan include provisions that collateral (including sums on
deposit with such banks) or guarantees will be furnished upon the banks’ request and that any collateral
furnished, pursuant to such agreements or otherwise, will be applicable to all present or future indebtedness tosuch banks. During the year ended March 31, 2013, Toyota has not received any significant such requests fromthese banks.
As of March 31, 2013, Toyota has unused long-term lines of credit amounting to ¥7,252,081 million($77,109 million).
14. Product warranties and recalls and other safety measures:
Toyota provides product warranties for certain defects mainly resulting from manufacturing based on
warranty contracts with its customers at the time of sale of products. Toyota accrues estimated warranty costs to
be incurred in the future in accordance with the warranty contracts. In addition to product warranties, Toyota
initiates recalls and other safety measures to repair or to replace parts which might be expected to fail fromproducts safety perspectives or customer satisfaction standpoints. Toyota accrues for costs of recalls and othersafety measures at the time of vehicle sale based on the amount estimated from historical experience.
Liabilities for product warranties and liabilities for recalls and other safety measures have been combined
into a single table showing an aggregate liability for quality assurances due to the fact that both are liabilities forcosts to repair or replace defects of vehicles and the amounts incurred for recalls and other safety measures may
affect the amounts incurred for product warranties and vice versa.
Liabilities for quality assurances are included in “Accrued expenses” in the consolidated balance sheets.
The net changes in liabilities for quality assurances above for the years ended March 31, 2011, 2012 and2013 consist of the following:
Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Liabilities for quality assurances at beginning of year . . . . . . ¥ 680,408 ¥ 764,369 ¥ 839,834
Payments made during year . . . . . . . . . . . . . . . . . . . . . . . . . . .
(476,771) (348,214)(344,279)
Provision for quality assurances . . . . . . . . . . . . . . . . . . . . . . .
588,224
436,891
491,542
Changes relating to pre-existing quality assurances . . . . . . . .
(1,701)(7,827)(8,383)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(25,791)(5,385)24,309$ 8,930(3,661)
5,226
(89)
259

Liabilities for quality assurances at end of year . . . . . . . . . . .

$10,665¥ 764,369¥ 839,834¥1,003,023

The other amount primarily includes the impact of currency translation adjustments and the impact ofconsolidation and deconsolidation of certain entities due to changes in ownership interest.

F-35

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The table below shows the net changes in liabilities for recalls and other safety measures which arecomprised in liabilities for quality assurances above for the years ended March 31, 2011, 2012 and 2013.

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Liabilities for recalls and other safety measures at beginningof year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments made during year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for recalls and other safety measures . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 301,422 ¥ 389,499 ¥ 468,697(263,096) (159,344) (180,925)
356,749
237,907
270,883(5,576)635
7,751$ 4,984(1,924)2,880
82

Liabilities for recalls and other safety measures at end ofyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 389,499$ 6,022

Yen in millions¥ 468,697¥ 566,406

15. Other payables:
Other payables are mainly related to purchases of property, plant and equipment and non-manufacturing
purchases.
16. Income taxes:
The components of income (loss) before income taxes comprise the following:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013¥(278,229) ¥(177,852) ¥ 651,852
841,519
610,725
751,797$ 6,9317,994¥ 563,290$14,925

Yen in millions

Income (loss) before income taxes:
Parent company and domestic subsidiaries . . . . . . . . . . .
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-36¥ 432,873¥1,403,649

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The provision for income taxes consists of the following:
Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Current income tax expense:
Parent company and domestic subsidiaries . . . . . . . . . . . . . .
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 85,290
141,821¥111,363
144,514¥178,662
213,016$1,9002,265

Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

227,111

255,877

391,678

4,165

Deferred income tax expense (benefit):
Parent company and domestic subsidiaries . . . . . . . . . . . . . .
Foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(44,268)
129,978(57,940)
64,335140,041
19,967

1,489
212

Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

85,710

6,395

160,008

1,701

Total provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥312,821¥262,272¥551,686$5,866

Toyota is subject to a number of different income taxes which, in the aggregate, indicate a statutory rate inJapan of approximately 40.2%, 40.2% and 37.6% for the years ended March 31, 2011, 2012 and 2013,
respectively. The statutory tax rates in effect for the year in which the temporary differences are expected toreverse are used to calculate the tax effects of temporary differences which are expected to reverse in the futureyears. Reconciliation of the differences between the statutory tax rate and the effective income tax rate is asfollows:
For the years ended March 31,
2011
2012
2013

Statutory tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase (reduction) in taxes resulting from:
Non-deductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities on undistributed earnings of foreign subsidiaries . . .
Deferred tax liabilities on undistributed earnings of affiliated companies
accounted for by the equity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The difference between the statutory tax rate in Japan and that of foreignsubsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized tax benefits adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-37

40.2%

40.2%

37.6%

2.2
4.8

1.7
4.7

0.6
1.8

12.6
8.1
(2.6)

9.2
14.9
(1.8)

4.1
1.7
(3.1)

(9.3)
(0.6)
0.1
55.5%

(9.6)
2.5
(1.2)
60.6%

(4.8)
0.1
1.3
39.3%

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Significant components of deferred tax assets and liabilities are as follows:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Deferred tax assets
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . . . ¥ 236,978 ¥ 230,021 $ 2,446
Accrued expenses and liabilities for quality assurances . . . . . . . . . .
369,985
480,428
5,108
Other accrued employees’ compensation . . . . . . . . . . . . . . . . . . . . .
106,265
108,599
1,155
Operating loss carryforwards for tax purposes . . . . . . . . . . . . . . . . .
337,992
160,936
1,711
Tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108,426
101,251
1,076
Property, plant and equipment and other assets . . . . . . . . . . . . . . . .
147,906
151,043
1,606
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
296,934
227,5962,420
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,604,486
1,459,874
15,522Less - Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(309,268)(284,835)(3,028)
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,295,218
1,175,039
12,494
Deferred tax liabilities
Unrealized gains on securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(210,475)(388,901)(4,135)
Undistributed earnings of foreign subsidiaries . . . . . . . . . . . . . . . . .
(27,581)(25,713)(274)
Undistributed earnings of affiliated companies accounted for by
the equity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(504,776)(567,054)(6,029)Basis difference of acquired assets . . . . . . . . . . . . . . . . . . . . . . . . . .
(34,120)(35,647)(379)
Lease transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(576,809)(650,389)(6,915)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(54,749)(66,923)(712)
Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,408,510) (1,734,627) (18,444)
Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ (113,292) ¥ (559,588) $ (5,950)
The deferred tax assets and liabilities above that comprise the net deferred tax liability are included in the
consolidated balance sheets as follows:
Yen in millions
March 31,
2012
2013

Deferred tax assets
Deferred income taxes (Current assets) . . . . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes (Long-term liabilities) . . . . . . . . . . . . . . . . .
Net deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 718,687
91,857¥749,398
100,199

U.S. dollars
in millions
March 31,2013

$ 7,968
1,065(14,953)(23,258)(247)(908,883) (1,385,927) (14,736)¥ (113,292) ¥ (559,588) $ (5,950)

The factors used to assess the likelihood of realization of the deferred tax assets are the future reversal ofexisting taxable temporary differences, the future taxable income and available tax planning strategies that are
prudent and feasible. All available evidence, both positive and negative, is considered to determine whether,based on the weight of that evidence, a valuation allowance is needed for deferred tax assets which are not morelikely-than-not to be realized.
F-38

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The accounting for deferred tax assets represents Toyota’s current best estimate based on all available
evidence. Unanticipated events or changes could result in re-evaluating the realizability of deferred tax assets.
Operating loss carryforwards for tax purposes as of March 31, 2013 in Japan and foreign countries were¥76,280 million ($811 million) and ¥422,133 million ($4,488 million), respectively, and are available as an offset
against future taxable income. The majority of these carryforwards in Japan and foreign countries expire in years
2014 to 2022 and expire in years 2014 to 2033, respectively. Tax credit carryforwards as of March 31, 2013 inJapan and foreign countries were ¥90,439 million ($961 million) and ¥10,812 million ($115 million),
respectively, and the majority of these carryforwards in Japan and foreign countries expire in years 2014 to 2016
and expire in years 2014 to 2033, respectively.
The valuation allowance mainly relates to deferred tax assets of operating loss and foreign tax credit
carryforwards for tax purposes that are not expected to be realized. The net changes in the total valuation
allowance for deferred tax assets for the years ended March 31, 2011, 2012 and 2013 consist of the following:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Valuation allowance at beginning of year . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥239,269 ¥280,685 ¥309,268
55,79196,75438,285(10,077) (65,566) (70,986)(4,298)(2,605)
8,268$3,288
407
(755)
88

Valuation allowance at end of year . . . . . . . . . . . . . . . . . . . . . . . .

¥280,685$3,028

Yen in millions¥309,268¥284,835

The other amount includes the impact of consolidation and deconsolidation of certain entities due tochanges in ownership interest and currency translation adjustments during the years ended March 31, 2011, 2012
and 2013.
Because management intends to reinvest undistributed earnings of foreign subsidiaries to the extent not
expected to be remitted in the foreseeable future, management has made no provision for income taxes on those
undistributed earnings aggregating ¥2,718,554 million ($28,905 million) as of March 31, 2013. Toyota estimatesan additional tax provision of ¥118,998 million ($1,265 million) would be required if the full amount of those
undistributed earnings were remitted.

F-39

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of the gross unrecognized tax benefits changes for the years ended March 31, 2011, 2012 and2013 is as follows:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

¥ 23,965 ¥ 15,453 ¥16,901
213
4,187
2,401
12,564
10,801
4,339(16,133)(363)(1,619)

$180
26
46
(17)

Yen in millions

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions based on tax positions related to the current year . . . . .
Additions for tax positions of prior years . . . . . . . . . . . . . . . . . . .
Reductions for tax positions of prior years . . . . . . . . . . . . . . . . . .
Reductions for tax positions related to lapse of statute oflimitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reductions for settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—(2,794)(2,362)—(12,820)(357)—(2,776)
3,201

—
(30)
34

¥ 15,453¥ 16,901¥22,447$239

The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was notmaterial at March 31, 2011, 2012 and 2013, respectively. Toyota does not believe it is reasonably possible thatthe total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve
months.
Interest and penalties related to income tax liabilities are included in “Other income (loss), net”. The
amounts of interest and penalties accrued as of and recognized for the years ended March 31, 2011, 2012 and2013, respectively, were not material.
Toyota remains subject to income tax examination for the tax returns related to the years beginning on andafter April 1, 2006 and January 1, 2000, with various tax jurisdictions in Japan and foreign countries,
respectively.
17. Shareholders’ equity:
Changes in the number of shares of common stock issued have resulted from the following:
2011

For the years ended March 31,
2012
2013

Common stock issued
Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . .
Issuance during the year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase and retirement . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,447,997,492——

3,447,997,492——

3,447,997,492——

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . .

3,447,997,492

3,447,997,492

3,447,997,492

The Companies Act provides that an amount equal to 10% of distributions from surplus paid by the parent
company and its Japanese subsidiaries be appropriated as a capital reserve or a retained earnings reserve. No
further appropriations are required when the total amount of the capital reserve and the retained earnings reserve
reaches 25% of stated capital.
F-40

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The retained earnings reserve included in retained earnings as of March 31, 2012 and 2013 was¥173,711 million and ¥175,735 million ($1,869 million), respectively. The Companies Act provides that theretained earnings reserve of the parent company and its Japanese subsidiaries is restricted and unable to be used
for dividend payments, and is excluded from the calculation of the profit available for dividend.
The amounts of statutory retained earnings of the parent company available for dividend payments toshareholders were ¥5,348,279 million and ¥5,858,551 million ($62,292 million) as of March 31, 2012 and 2013,
respectively. In accordance with customary practice in Japan, the distributions from surplus are not accrued in thefinancial statements for the corresponding period, but are recorded in the subsequent accounting period after
shareholders’ approval has been obtained. Retained earnings at March 31, 2013 include amounts representing
year-end cash dividends of ¥190,046 million ($2,020 million), ¥60 ($0.64) per share, which were approved at theOrdinary General Shareholders’ Meeting, held on June 14, 2013.
Retained earnings at March 31, 2013 include ¥1,576,055 million ($16,758 million) relating to equity inundistributed earnings of affiliated companies accounted for by the equity method.
On January 1, 2012, the parent company implemented share exchanges as a result of which the parent
company became a wholly-owning parent company and each of Toyota Auto Body Co., Ltd. and Kanto Auto
Works, Ltd. became a wholly-owned subsidiary, and the parent company acquired additional shares of eachsubsidiary. As a result of these share exchanges, the parent company issued 31,151,148 shares of treasury stock,and treasury stock decreased by ¥125,819 million and losses on disposal of treasury stock occurred in the amountof ¥45,916 million. As a result, additional paid-in capital decreased by ¥551 million and retained earnings
decreased by ¥45,365 million, respectively. As a result of acquiring additional shares of each subsidiary,
noncontrolling interests decreased by ¥117,881 million, accumulated other comprehensive income (loss)
decreased by ¥6,503 million and additional paid-in capital increased by ¥44,481 million.

F-41

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Detailed components of accumulated other comprehensive income (loss) in Toyota Motor Corporation
shareholders’ equity at March 31, 2012 and 2013 and the related changes, net of taxes for the years ended
March 31, 2011, 2012 and 2013 consist of the following:
Yen in millions
Foreigncurrencytranslation
adjustments

Unrealized
gains (losses)
on securities

Pensionliability
adjustments

Accumulated
othercomprehensive
income (loss)

Balances at March 31, 2010 . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . .

¥ (872,776)(287,613)¥194,285(26,058)¥(168,344)
15,785¥ (846,835)(297,886)

Balances at March 31, 2011 . . . . . . . . . . . . . . . . . . .
Equity transaction with noncontrolling interests andother . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . .

(1,160,389)

168,227(152,559)(1,144,721)—(87,729)751
129,328(7,254)(69,208)(6,503)(27,609)

Balances at March 31, 2012 . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . .

(1,248,118)
434,638

298,306
368,507(229,021)
19,565(1,178,833)
822,710

Balances at March 31, 2013 . . . . . . . . . . . . . . . . . . .

¥ (813,480)¥666,813¥(209,456)¥ (356,123)

U.S. dollars in millions
Foreigncurrencytranslation
adjustments

Unrealized
gains (losses)
on securities

Pensionliability
adjustments

Accumulated
othercomprehensive
income (loss)

Balances at March 31, 2012 . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . .

$(13,271)
4,622

$

3,171
3,918

$

(2,435)
208$(12,535)
8,748

Balances at March 31, 2013 . . . . . . . . . . . . . . . . . . .

$(8,649)

$

7,089

$

(2,227)$(3,787)

F-42

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Tax effects allocated to each component of other comprehensive income (loss) for the years ended
March 31, 2011, 2012 and 2013 are as follows:
Pre-tax
amount

For the year ended March 31, 2011
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gains (losses) on securities:
Unrealized net holding gains (losses) arising for the year . . . . . .
Less: reclassification adjustments for (gains) losses included in
net income attributable to Toyota Motor Corporation . . . . . . .
Pension liability adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . .
For the year ended March 31, 2012
Equity transaction with noncontrolling interests and other . . . . . . . . .
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gains (losses) on securities:
Unrealized net holding gains (losses) arising for the year . . . . . .
Less: reclassification adjustments for (gains) losses included in
net income attributable to Toyota Motor Corporation . . . . . . .
Pension liability adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . .
For the year ended March 31, 2013
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gains (losses) on securities:
Unrealized net holding gains (losses) arising for the year . . . . . .
Less: reclassification adjustments for (gains) losses included in
net income attributable to Toyota Motor Corporation . . . . . . .
Pension liability adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . .

Yen in millions
Tax
amountNet-of-tax
amount¥ (294,279) ¥6,666¥(287,613)(31,899)

9,643(22,256)(6,358)26,681

2,556(10,896)(3,802)
15,785¥ (305,855) ¥7,969¥(297,886)¥ (10,874) ¥(95,677)

4,371
7,948

¥

164,872(65,642)

99,23050,332(111,722)(20,234)
42,51430,098(69,208)¥(6,503)(87,729)(3,069) ¥ (31,043) ¥ (34,112)¥ 447,302¥ (12,664) ¥ 434,638

517,169(175,839)

341,330

45,25330,232(18,076)(10,667)

27,177
19,565¥1,039,956¥(217,246) ¥ 822,710

U.S. dollars in millions
Pre-tax
Tax
Net-of-tax
amountamountamount

For the year ended March 31, 2013
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gains (losses) on securities:
Unrealized net holding gains (losses) arising for the year . . . . . .
Less: reclassification adjustments for (gains) losses included in
net income attributable to Toyota Motor Corporation . . . . . . .
Pension liability adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . .

F-43

$

$

4,756

$

(134) $

4,622

5,499

(1,870)

3,629

481
321

(192)
(113)

289
208

(2,309) $8,748

11,057$

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
18. Stock-based compensation:
In June 1997, the parent company’s shareholders approved a stock option plan for board members. In June
2001, the shareholders approved an amendment of the plan to include both board members and key employees.
Each year until June 2010, since the plans’ inception, the shareholders have approved the authorization for the
grant of options for the purchase of Toyota’s common stock. Authorized shares for each year that remain
ungranted are unavailable for grant in future years. Stock options granted in and after August 2006 have terms of
8 years and an exercise price equal to 1.025 times the closing price of Toyota’s common stock on the date of
grant. These options generally vest 2 years from the date of grant.
For the years ended March 31, 2011, 2012 and 2013, Toyota recognized stock-based compensation expenses
for stock options of ¥2,522 million, ¥1,539 million and ¥325 million ($3 million) as selling, general andadministrative expenses.
The weighted-average grant-date fair value of options granted during the year ended March 31, 2011 was¥724 per share. The fair value of options granted is amortized over the option vesting period in determining net
income attributable to Toyota Motor Corporation in the consolidated statements of income. The grant-date fairvalue of options granted is estimated using the Black-Scholes option pricing model with the following weightedaverage assumptions:
2011

Dividend rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected holding period (years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.5%
0.3%
32%
5.0

The following table summarizes Toyota’s stock option activity:
Yen inmillions

Yen
Weightedaverageremaining
contractual
life in years

Aggregate
intrinsic
value

Number ofshares

Weightedaverage
exercise price

Options outstanding at March 31, 2010 . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at March 31, 2011 . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at March 31, 2012 . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Options outstanding at March 31, 2013 . . . . . . . . . . . . . . .

13,716,700
3,435,000—(1,364,900)
15,786,800——(3,256,800)
12,530,000—(645,000)(1,036,000)
10,849,000¥5,363
3,183
—
4,759
4,941
—
—
5,059
4,910
—
3,328
5,907
¥4,909

5.23

¥ —

5.04

¥ 565

4.55

¥1,065

3.56¥5,921

Options exercisable at March 31, 2011 . . . . . . . . . . . . . . . . . .
Options exercisable at March 31, 2012 . . . . . . . . . . . . . . . . . .
Options exercisable at March 31, 2013 . . . . . . . . . . . . . . . . . .

9,347,800
9,778,000
10,849,000¥5,821¥5,396¥4,909

3.79
4.05
3.56

¥ —
¥ —
¥5,921

F-44

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
No options were exercised for the years ended March 31, 2011 and 2012. The total intrinsic value of options
exercised for the year ended March 31, 2013 was ¥364 million ($4 million).
No cash was received from the exercise of stock options for the years ended March 31, 2011 and 2012. Cashreceived from the exercise of stock options for the year ended March 31, 2013 was ¥2,147 million ($23 million).
The following table summarizes information for options outstanding and options exercisable at March 31,
2013:

Exercise
price
range
Yen

Number ofsharesOutstanding
WeightedWeightedaverage
average
exercise
exercise
price
price
Yen
U.S. dollars¥3,183 – 5,000
5,001 – 7,278

7,480,000
3,369,000¥4,068
6,774

$43
72

4.31
1.89

7,480,000
3,369,000¥4,068
6,774

$43
72

3,183 – 7,278

10,849,000

4,909

52

3.56

10,849,000

4,909

52

Weightedaverageremaining
life
Years

Number ofsharesExercisable
Weightedaverage
exercise
price
Yen

Weightedaverage
exercise
price
U.S. dollars

19. Employee benefit plans:
Pension and severance plans Upon terminations of employment, employees of the parent company and subsidiaries in Japan are entitled,under the retirement plans of each company, to lump-sum indemnities or pension payments, based on current
rates of pay and lengths of service or the number of “points” mainly determined by those. Under normal
circumstances, the minimum payment prior to retirement age is an amount based on voluntary retirement.
Employees receive additional benefits on involuntary retirement, including retirement at the age limit.
Effective October 1, 2004, the parent company amended its retirement plan to introduce a “point” based
retirement benefit plan. Under the new plan, employees are entitled to lump-sum or pension payments
determined based on accumulated “points” vested in each year of service.
There are three types of “points” that vest in each year of service consisting of “service period points” which
are attributed to the length of service, “job title points” which are attributed to the job title of each employee, and“performance points” which are attributed to the annual performance evaluation of each employee. Under normal
circumstances, the minimum payment prior to retirement age is an amount reflecting an adjustment rate applied
to represent voluntary retirement. Employees receive additional benefits upon involuntary retirement, including
retirement at the age limit.
Effective October 1, 2005, the parent company partly amended its retirement plan and introduced the quasi
cash-balance plan under which benefits are determined based on the variable-interest crediting rate rather than
the fixed-interest crediting rate as was in the pre-amended plan.
The parent company and most subsidiaries in Japan have contributory funded defined benefit pension plans,
which are pursuant to the Corporate Defined Benefit Pension Plan Law (CDBPPL). The contributions to theplans are funded with several financial institutions in accordance with the applicable laws and regulations. These
pension plan assets consist principally of common stocks, government bonds and insurance contracts.

F-45

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Most foreign subsidiaries have pension plans or severance indemnity plans covering substantially all of theiremployees under which the cost of benefits are currently invested or accrued. The benefits for these plans are
based primarily on lengths of service and current rates of pay.
Toyota uses a March 31 measurement date for its benefit plans.
Information regarding Toyota’s defined benefit plans is as follows:
Japanese plans

Change in benefit obligation
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . .
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

¥1,362,053 ¥1,480,387
57,24160,261
30,66027,804834
918
632(3,462)
67,09890,66727,435(776)(65,566)(61,388)
1,480,387
1,594,411$15,740
641
296
10
(37)
964
(8)
(653)
16,953885,741
927,545
1,493
145,141
27,947(264)
50,42353,906834
918(38,893)(36,988)927,545
1,090,258¥ 552,842 ¥ 504,153

9,862
1,543
(3)
573
10
(393)
11,592$ 5,361

Amounts recognized in the consolidated balance sheets as of March 31, 2012 and 2013 are comprised of thefollowing:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Accrued expenses (Accrued pension and severance costs) . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other (Prepaid pension and severance
costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 19,553
553,096¥ 25,160
582,491(19,807)(103,498)(1,100)Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥552,842¥ 504,153$ 5,361

F-46

$

268
6,193

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Amounts recognized in accumulated other comprehensive income (loss) as of March 31, 2012 and 2013 arecomprised of the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(381,770) ¥(333,203)
Prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57,93053,360
Net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
——$(3,543)567—

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(323,840) ¥(279,843)$(2,976)

The accumulated benefit obligation for all defined benefit pension plans was ¥1,379,373 million and¥1,494,011 million ($15,885 million) at March 31, 2012 and 2013, respectively.
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for which theaccumulated benefit obligations exceed plan assets are as follows:
Yen in millions
March 31,
2012
2013

Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥728,469
639,196
153,945¥749,561
685,763
165,262

U.S. dollars
in millions
March 31,2013

$7,9707,291
1,757

Components of the net periodic pension cost are as follows:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

¥ 61,134 ¥ 57,241 ¥ 60,261
31,782
30,66027,804(21,200) (21,558) (22,352)(24,421) (16,326)(8,033)15,02928,342
16,619
1,944
1,626
—

$ 641
296
(238)
(86)
177
—

¥ 64,268$ 790

Yen in millions

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service costs . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . .
Net periodic pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-47¥ 79,985¥ 74,299

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as
follows:
U.S. dollars
in millions
For the year
ended
March 31,2013

Yen in millions

For the years ended March 31,
2011
2012
2013

Net actuarial gain (loss) . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . .
Prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service costs . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(15,734)
15,0291,287(24,421)
1,944
10,529¥(87,163)
28,342(632)(16,326)
1,626
63¥32,122
16,6193,462(8,033)
—
(173)

$341
177
37
(86)
—
(2)

Total recognized in other comprehensive
income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(11,366)¥(74,090)¥43,997$467

The other amount includes the impact of transition to defined contribution pension plans and consolidationand deconsolidation of certain entities due to changes in ownership interest during the years ended March 31,
2011, 2012 and 2013.
The estimated prior service costs and net actuarial loss that will be amortized from accumulated othercomprehensive income (loss) into net periodic pension cost during the year ending March 31, 2014 are¥(5,000) million ($(53) million) and ¥12,200 million ($130 million), respectively.
Weighted-average assumptions used to determine benefit obligations as of March 31, 2012 and 2013 are as
follows:
March 31,

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2012

2013

2.0%
2.3%

1.7%
2.2%

As of March 31, 2012 and 2013, the parent company and certain subsidiaries in Japan employ “point” based
retirement benefit plans and do not use the rates of compensation increase to determine benefit obligations.
Weighted-average assumptions used to determine net periodic pension cost for the years ended March 31,
2011, 2012 and 2013 are as follows:
For the years ended March 31,
2011
2012
2013

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.3%
2.3%
2.3%

2.3%
2.5%
2.3%

2.0%
2.5%
2.3%

During the years ended March 31, 2011, 2012 and 2013, the parent company and certain subsidiaries inJapan employ “point” based retirement benefit plans and do not use the rates of compensation increase todetermine net periodic pension cost.
F-48

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The expected rate of return on plan assets is determined after considering several applicable factors
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.
Toyota’s policy and objective for plan asset management is to maximize returns on plan assets to meet
future benefit payment requirements under risks which Toyota considers permissible. Asset allocations under theplan asset management are determined based on plan asset management policies of each plan which areestablished to achieve the optimized asset compositions in terms of the long-term overall plan asset management.
Excepting equity securities contributed by Toyota, approximately 50% of the plan assets is invested in equity
securities, approximately 30% is invested in debt securities, and the rest of them is invested in insurance
contracts and other products. When actual allocations are not in line with target allocations, Toyota rebalances its
investments in accordance with the policies. Prior to making individual investments, Toyota performs in-depth
assessments of corresponding factors including category of products, industry type, currencies and liquidity ofeach potential investment under consideration to mitigate concentrations of risks such as market risk and foreign
currency exchange rate risk. To assess performance of the investments, Toyota establishes bench mark return
rates for each individual investment, combines these individual bench mark rates based on the asset composition
ratios within each asset category, and compares the combined rates with the corresponding actual return rates oneach asset category.
The following table summarizes the fair value of classes of plan assets as of March 31, 2012 and 2013. Seenote 26 to the consolidated financial statements for three levels of input which are used to measure fair value.
Yen in millions
March 31, 2012
Level 2
Level 3

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

——¥353,282
158,027

158,027—

511,309

63,327———
176,596
20,155——591

63,327
176,596
20,74663,327

196,751591

260,669

Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—27,006

83,993
4,503—
40,06583,993
71,574

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

¥443,615¥443,274¥40,656¥927,545

Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-49¥353,282—¥—
158,027

353,282¥

Total

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
March 31, 2013
Level 2
Level 3

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥440,971—¥——¥ 440,971
184,879

440,971

184,879—

625,850

81,867———
203,933
23,594——441

81,867
203,933
24,035

81,867

227,527441

309,835

Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—17,78991,326
3,923—
41,53591,326
63,247

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

¥540,627¥507,655¥41,976¥1,090,258

Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—184,879

U.S. dollars in millions
March 31, 2013
Level 2
Level 3

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

4,689
—

¥

Total

$

—
1,966

$

—
—

Total

$

4,689
1,966

4,689

1,966

—

6,655

870
—
—

—
2,168
251

—
—
5

870
2,168
256

870

2,419

5

3,294

—
189

971
42

—
441

971
672

5,748

$

5,398

$

446

$

11,592

The following is description of the assets, information about the valuation techniques used to measure fairvalue, key inputs and significant assumptions:
Quoted market prices for identical securities are used to measure fair value of common stocks. Common
stocks include 69% of Japanese stocks and 31% of foreign stocks as of March 31, 2012, and 71% of Japanesestocks and 29% of foreign stocks as of March 31, 2013.
Quoted market prices for identical securities are used to measure fair value of government bonds.
Government bonds include 35% of Japanese government bonds and 65% of foreign government bonds as ofMarch 31, 2012, and 44% of Japanese government bonds and 56% of foreign government bonds as of March 31,
2013.

F-50

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Commingled funds are beneficial interests of collective trust. The fair values of commingled funds aremeasured using the net asset value (“NAV”) provided by the administrator of the fund, and are categorized by theability to redeem investments at the measurement day.
The fair values of insurance contracts are measured using contracted amount with accrued interest.
Other consists of cash equivalents, other private placement investment funds and other assets. The fairvalues of other private placement investment funds are measured using the NAV provided by the administrator of
the fund, and are categorized by the ability to redeem investments at the measurement day.
The following tables summarize the changes in Level 3 plan assets measured at fair value for the years
ended March 31, 2011, 2012 and 2013:
Yen in millions
For the year ended March 31, 2011
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 928
7
(189)
—

¥37,421934
19—¥38,349
941
(170)
—

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 746¥38,374¥39,120

Yen in millions
For the year ended March 31, 2012
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 746
5
(160)
—

¥38,374 ¥39,120(1,762) (1,757)
3,453
3,293
—
—

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 591¥40,065¥40,656

Yen in millions
For the year ended March 31, 2013
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 591
3
(153)
—

¥40,065
438
1,032
—

¥40,656441
879—

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 441¥41,535¥41,976

U.S. dollars in millions
For the year ended March 31, 2013
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

6
0
(1)
—

$

426
4
11
—

$

432
4
10
—

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

5

$

441

$

446

F-51

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Toyota expects to contribute ¥54,094 million ($575 million) to its pension plans in the year ending
March 31, 2014.
The following pension benefit payments, which reflect expected future service, as appropriate, are expected
to be paid:
Yen in millions

U.S. dollars
in millions

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
from 2019 to 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 62,508
64,80366,44566,49767,780379,369

$ 665
689
706
707
721
4,034

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

¥707,402$7,522Years ending March 31,

Foreign plans

Change in benefit obligation
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . .
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-52

Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

¥367,125 ¥467,000
21,29827,943
21,73924,300
221
246
108
(43)
50,222
38,986
13,061
82,907(6,774)(8,179)467,000
633,160$4,965
297
258
3
(0)
415
881
(87)
6,732

297,644343,226
14,81646,35919,60060,13816,12535,354221
246(5,180)(6,084)343,226
479,239¥123,774 ¥153,921

3,649
493
640
376
3
(65)
5,096
$1,636

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Amounts recognized in the consolidated balance sheets as of March 31, 2012 and 2013 are comprised of thefollowing:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Accrued expenses (Accrued pension and severance costs) . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other (Prepaid pension and severance
costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,523
155,306¥ 1,762
183,621

$ 18
1,953

(33,055)(31,462)(335)

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥123,774¥153,921$1,636

Amounts recognized in accumulated other comprehensive income (loss) as of March 31, 2012 and 2013 arecomprised of the following:
Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(75,069) ¥(96,151)
Prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,333)(1,921)
Net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
——$(1,022)(20)—

Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(77,402) ¥(98,072)$(1,042)

The accumulated benefit obligation for all defined benefit pension plans was ¥385,348 million and¥533,551 million ($5,673 million) at March 31, 2012 and 2013, respectively.
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for which theaccumulated benefit obligations exceed plan assets are as follows:
Yen in millions
March 31,
2012
2013

Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-53¥229,015
190,42252,123¥251,596
213,934
43,277

U.S. dollars
in millions
March 31,2013

$2,6752,275
460

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Components of the net periodic pension cost are as follows:

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

¥ 21,288 ¥ 21,298 ¥ 27,943
20,72021,73924,300(21,164) (22,864) (23,177)
389
351
369
1,066
1,783
2,884
—
—
—

$ 297
258
(246)
4
31
—

¥ 22,299$ 344

Yen in millions

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service costs . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . .
Net periodic pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 22,307¥ 32,319

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are as
follows:
U.S. dollars
in millions
For the year
ended
March 31,2013

Yen in millions

For the years ended March 31,
2011
2012
2013

Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . .
Prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service costs . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (6,244)
1,066
142
389
—
30,466¥(58,270)
1,783
(108)
351
—
5,888

¥(15,804)
2,884
43
369
—
(8,162)$(168)
31
0
4
—
(87)

Total recognized in other comprehensive
income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .

¥25,819¥(50,356)¥(20,670)$(220)The other amount includes the impact of consolidation and deconsolidation of certain entities due tochanges in ownership interest and currency translation adjustments during the years ended March 31, 2011, 2012
and 2013.
The estimated prior service costs and net actuarial loss that will be amortized from accumulated othercomprehensive income (loss) into net periodic pension cost during the year ending March 31, 2014 are¥300 million ($3 million) and ¥4,400 million ($47 million), respectively.
Weighted-average assumptions used to determine benefit obligations as of March 31, 2012 and 2013 are as
follows:
March 31,

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-54

2012

2013

5.0%
4.5%

4.5%
4.6%

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Weighted-average assumptions used to determine net periodic pension cost for the years ended March 31,
2011, 2012 and 2013 are as follows:
For the years ended March 31,
2011
2012
2013

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.2%
7.4%
4.5%

5.7%
7.3%
4.4%

5.0%
7.0%
4.5%

The expected rate of return on plan assets is determined after considering several applicable factors
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.
Toyota’s policy and objective for plan asset management is to maximize returns on plan assets to meet
future benefit payment requirements under risks which Toyota considers permissible. Asset allocations under theplan asset management are determined based on plan asset management policies of each plan which areestablished to achieve the optimized asset compositions in terms of the long-term overall plan asset management.
Excepting equity securities contributed by Toyota, approximately 60% of the plan assets is invested in equity
securities, approximately 30% is invested in debt securities, and the rest of them is invested in other products.
When actual allocations are not in line with target allocations, Toyota rebalances its investments in accordancewith the policies. Prior to making individual investments, Toyota performs in-depth assessments ofcorresponding factors including category of products, industry type, currencies and liquidity of each potential
investment under consideration to mitigate concentrations of risks such as market risk and foreign currency
exchange rate risk. To assess performance of the investments, Toyota establishes bench mark return rates foreach individual investment, combines these individual bench mark rates based on the asset composition ratios
within each asset category, and compares the combined rates with the corresponding actual return rates on each
asset category.
The following table summarizes the fair value of classes of plan assets as of March 31, 2012 and 2013. Seenote 26 to the consolidated financial statements for three levels of input which are used to measure fair value.
Yen in millions
March 31, 2012
Level 2
Level 3

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥114,955—¥—
74,815

¥

Total

—
—

¥114,955
74,815

114,955

74,815—

189,770

25,084———43,062
29,278———25,08443,062
29,27825,084

72,340—97,424

Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—21,184—
3,471—
31,377—56,032

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

¥161,223¥150,626¥31,377¥343,226

Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F-55

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
March 31, 2013
Level 2
Level 3

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥183,611—¥—
86,539

¥

Total

—
—

¥183,611
86,539183,61186,539—270,150

47,083———42,754
40,486———47,08342,754
40,48647,083

83,240—130,323

Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—30,739

1,202
6,218

—
40,607

1,202
77,564

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

¥261,433¥177,199¥40,607¥479,239

Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 1Equity securities
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$Debt securities
Government bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

1,952
—

U.S. dollars in millions
March 31, 2013
Level 2
Level 3

$

—
920

$

—
—

Total

$

1,952
920

1,952

920

—

2,872

501
—
—

—
455
430

—
—
—

501
455
430

501

885

—

1,386

—
327

13
66

—
432

13
825

2,780

$

1,884

$

432

$

5,096

The following is description of the assets, information about the valuation techniques used to measure fairvalue, key inputs and significant assumptions:
Quoted market prices for identical securities are used to measure fair value of common stocks. Common
stocks include mainly foreign stocks as of March 31, 2012 and 2013.
Quoted market prices for identical securities are used to measure fair value of government bonds.
Government bonds include mainly foreign government bonds as of March 31, 2012 and 2013.
Commingled funds are beneficial interests of collective trust. The fair values of commingled funds aremeasured using the NAV provided by the administrator of the fund, and are categorized by the ability to redeem
investments at the measurement day.
F-56

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other consists of cash equivalents, other private placement investment funds and other assets. The fairvalues of other private placement investment funds are measured using the NAV provided by the administrator of
the fund, and are categorized by the ability to redeem investments at the measurement day.
The following tables summarize the changes in Level 3 plan assets measured at fair value for the years
ended March 31, 2011, 2012 and 2013:
Yen in millions
For the year ended March 31, 2011
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 2,663305(2,759)(209)¥ 9,097 ¥11,760
974
1,279
11,471
8,712(1,065) (1,274)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥¥20,477—¥20,477

Yen in millions
For the year ended March 31, 2012
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

—
—
—
—

¥20,477
1,243
9,514
143

¥20,477
1,243
9,514
143

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—¥31,377¥31,377

Yen in millions
For the year ended March 31, 2013
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

—
—
—
—

¥31,377
2,472
2,599
4,159

¥31,377
2,472
2,599
4,159

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—¥40,607¥40,607

U.S. dollars in millions
For the year ended March 31, 2013
Debt securities
Other
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases, sales and settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

—
—
—
—

$

334
26
28
44

$

334
26
28
44

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

—

$

432

$

432

Toyota expects to contribute ¥8,688 million ($92 million) to its pension plans in the year ending March 31,
2014.
F-57

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following pension benefit payments, which reflect expected future service, as appropriate, are expected
to be paid:
Years ending March 31,

Yen in millions

U.S. dollars
in millions

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
from 2019 to 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 8,535
9,264
9,955
10,66011,49173,651

$

91
99
106
113
122
783

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

¥123,556$1,314

Postretirement benefits other than pensions and postemployment benefits Toyota’s U.S. subsidiaries provide certain health care and life insurance benefits to eligible retired
employees. In addition, Toyota provides benefits to certain former or inactive employees after employment, but
before retirement. These benefits are provided through various insurance companies, health care providers andothers. The costs of these benefits are recognized over the period the employee provides credited service toToyota. Toyota’s obligations under these arrangements are not material.
20. Derivative financial instruments:
Toyota employs derivative financial instruments, including foreign exchange forward contracts, foreign
currency options, interest rate swaps, interest rate currency swap agreements and interest rate options to manage
its exposure to fluctuations in interest rates and foreign currency exchange rates. Toyota does not use derivatives
for speculation or trading.
Fair value hedges Toyota enters into interest rate swaps and interest rate currency swap agreements mainly to convert its
fixed-rate debt to variable-rate debt. Toyota uses interest rate swap agreements in managing interest rate risk
exposure. Interest rate swap agreements are executed as either an integral part of specific debt transactions or ona portfolio basis. Toyota uses interest rate currency swap agreements to hedge exposure to currency exchange
rate fluctuations on principal and interest payments for borrowings denominated in foreign currencies. Notes andloans payable issued in foreign currencies are hedged by concurrently executing interest rate currency swap
agreements, which involve the exchange of foreign currency principal and interest obligations for each functional
currency obligations at agreed-upon currency exchange and interest rates.
For the years ended March 31, 2011, 2012 and 2013, the ineffective portion of Toyota’s fair value hedge
relationships was not material. For fair value hedging relationships, the components of each derivative’s gain orloss are included in the assessment of hedge effectiveness.
Undesignated derivative financial instruments Toyota uses foreign exchange forward contracts, foreign currency options, interest rate swaps, interest ratecurrency swap agreements, and interest rate options, to manage its exposure to foreign currency exchange rate
fluctuations and interest rate fluctuations from an economic perspective, and for which Toyota is unable or has
elected not to apply hedge accounting.
F-58

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair value and gains or losses on derivative financial instruments The following table summarizes the fair values of derivative financial instruments as of March 31, 2012 and2013:
Yen in millions
March 31,
2012
2013

Derivative financial instruments designated as hedging instruments
Interest rate and currency swap agreements
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥U.S. dollars
in millions
March 31,
2013

7,166
61,174¥ 10,769
39,569$114
421¥ 68,340¥ 50,338$

535

Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (2,060) ¥(303)(2,554)
(143)

$

(27)
(2)

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

¥ (2,363) ¥(2,697)

$

(29)

295
1,482

Undesignated derivative financial instruments
Interest rate and currency swap agreements
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other . . . . . . . . . . . . . . . . . . . . . . .

¥ 61,983
157,642¥ 27,731
139,419$

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

¥ 219,625¥ 167,150$ 1,777¥ (38,338) ¥ (37,133)(120,666) (122,420)$ (395)(1,301)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(159,004) ¥(159,553)$(1,696)

Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange forward and option contracts
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . .
Investments and other assets - Other . . . . . . . . . . . . . . . . . . . . . . .

¥

9,531
—

¥

7,340
—

$

78
—

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

¥

9,531

¥

7,340

$

78

Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (21,736) ¥ (36,087)
(70)
(5)

$ (384)(0)Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (21,806) ¥ (36,092)$ (384)As of March 31, 2012 and 2013, the amounts of counterparty netting and cash collateral received thatpartially offset derivative assets were ¥218,509 million and ¥158,807 million ($1,689 million), respectively. The
amounts of counterparty netting and cash collateral pledged that partially offset derivative liabilities were¥(90,963) million and ¥(86,477) million ($(919) million), respectively. These amounts included in the abovetable were offset in the consolidated balance sheets.

F-59

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the notional amounts of derivative financial instruments as of March 31,
2012 and 2013:
Yen in millions
March 31,

Interest rate and currency
swap agreements . . . . . . . .
Foreign exchange forward
and option contracts . . . . .
Total . . . . . . . . . . . . . . .

U.S. dollars in millions
March 31,2013
DesignatedUndesignatedderivative
derivative
financialfinancial
instruments
instruments

Designatedderivative
financial
instruments

2012
Undesignatedderivative
financial
instruments

Designatedderivative
financial
instruments

2013
Undesignatedderivative
financial
instruments¥344,623¥10,607,666¥235,219¥12,689,774$2,501$134,926—

2,199,627—

2,104,048—

22,371¥344,623¥12,807,293¥235,219¥14,793,822$2,501$157,297

The following table summarizes the gains and losses on derivative financial instruments and hedged items
reported in the consolidated statements of income for the years ended March 31, 2011, 2012 and 2013:
Yen in millions
For the years ended March 31,
2011
2012
Gains or
Gains or(losses) on(losses) on
derivative
Gains orderivative
Gains orfinancial(losses) on
financial(losses) on
instruments hedged items instruments hedged items

Derivative financial instruments designated as hedging
instruments - Fair value hedge
Interest rate and currency swap agreements
Cost of financing operations . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undesignated derivative financial instruments
Interest rate and currency swap agreements
Cost of financing operations . . . . . . . . . . . . . . . . .
Foreign exchange gain (loss), net . . . . . . . . . . . . .
Foreign exchange forward and option contracts
Cost of financing operations . . . . . . . . . . . . . . . . .
Foreign exchange gain (loss), net . . . . . . . . . . . . .

F-60¥ 71,491(166)¥(68,741)
166¥ (1,354)—¥2,999—¥ 72,082(1,393)¥——¥35,834
(28)

¥ —
—

—
—

(3,815)53,272——(2,693)
110,211

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
For the year ended March 31,
2013
Gains or(losses) on
derivative
Gains orfinancial(losses) on
instruments
hedged items

Derivative financial instruments designated as
hedging instruments - Fair value hedge
Interest rate and currency swap agreements
Cost of financing operations . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . .
Undesignated derivative financial instruments
Interest rate and currency swap agreements
Cost of financing operations . . . . . . . . . . . . . . .
Foreign exchange gain (loss), net . . . . . . . . . . .
Foreign exchange forward and option contracts
Cost of financing operations . . . . . . . . . . . . . . .
Foreign exchange gain (loss), net . . . . . . . . . . .

U.S. dollars in millions
For the year ended March 31,
2013
Gains or(losses) on
derivative
Gains orfinancial(losses) on
instruments
hedged items¥(23,965)—¥24,738—$(255)—$ 263—¥(24,204)
1,617

¥

—
—

$(257)
17

$—
—

—
—

(49)
(524)

—
—

(4,572)(49,239)

Undesignated derivative financial instruments are used to manage risks of fluctuations in interest rates tocertain borrowing transactions and in foreign currency exchange rates of certain currency receivables andpayables. Toyota accounts for these derivative financial instruments as economic hedges with changes in the fairvalue recorded directly into current period earnings.
Unrealized gains or (losses) on undesignated derivative financial instruments reported in the cost offinancing operations for the years ended March 31, 2011, 2012 and 2013 were ¥93,370 million, ¥(14,934) millionand ¥(60,727) million ($(646) million) those reported in foreign exchange gain (loss), net were ¥(240) million,¥(5,543) million and ¥(7,447) million ($(79) million), respectively.
Cash flows from transactions of derivative financial instruments are included in cash flows from operating
activities in the consolidated statements of cash flows.
Credit risk related contingent features Toyota enters into International Swaps and Derivatives Association Master Agreements with counterparties.
These Master Agreements contain a provision requiring either Toyota or the counterparty to settle the contract or
to post assets to the other party in the event of a ratings downgrade below a specified threshold.
The aggregate fair value amount of derivative financial instruments that contain credit risk related
contingent features that are in a net liability position after being offset by cash collateral as of March 31, 2013 is¥3,289 million ($35 million). The aggregate fair value amount of assets that are already posted as cash collateral
as of March 31, 2013 is ¥17,305 million ($184 million). If the ratings of Toyota decline below specified
thresholds, the maximum amount of assets to be posted or for which Toyota could be required to settle thecontracts is ¥3,289 million ($35 million) as of March 31, 2013.

F-61

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
21. Other financial instruments:
Toyota has certain financial instruments, including financial assets and liabilities which arose in the normal
course of business. These financial instruments are executed with creditworthy financial institutions, andvirtually all foreign currency contracts are denominated in U.S. dollars, euros and other currencies of major
developed countries. Financial instruments involve, to varying degrees, market risk as instruments are subject toprice fluctuations, and elements of credit risk in the event a counterparty should default. In the unlikely event thecounterparties fail to meet the contractual terms of a foreign currency or an interest rate instrument, Toyota’s risk
is limited to the fair value of the instrument. Although Toyota may be exposed to losses in the event of nonperformance by counterparties on financial instruments, it does not anticipate significant losses due to the natureof its counterparties. Counterparties to Toyota’s financial instruments represent, in general, international
financial institutions. Additionally, Toyota does not have a significant exposure to any individual counterparty.
Toyota believes that the overall credit risk related to its financial instruments is not significant.
The following table summarizes the estimated fair values of Toyota’s financial instruments, excluding
marketable securities and other securities investments, affiliated companies and derivative financial instruments.
See note 26 to the consolidated financial statements for three levels of input which are used to measure fair value.

Carrying amount

Assets (Liabilities)
Cash and cash equivalents . . . . . .
Time deposits . . . . . . . . . . . . . . . .
Total finance receivables, net . . . .
Other receivables . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . .
Long-term debt including thecurrent portion . . . . . . . . . . . . .

Total¥ 1,679,200 ¥1,444,276 ¥ 234,924 ¥— ¥ 1,679,200
80,301—80,301—80,301
8,879,731——
9,137,936
9,137,936
408,547——
408,547
408,547(3,450,649)—(3,256,078)(194,571) (3,450,649)(8,533,549)

Carrying amount

Assets (Liabilities)
Cash and cash equivalents . . . . . .
Time deposits . . . . . . . . . . . . . . . .
Total finance receivables, net . . . .
Other receivables . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . .
Long-term debt including thecurrent portion . . . . . . . . . . . . .

Level 1

Yen in millions
March 31, 2012
Estimated fair value
Level 2
Level 3—

Level 1

(7,835,970)(847,223)

Yen in millions
March 31, 2013
Estimated fair value
Level 2
Level 3

(8,683,193)

Total¥ 1,718,297 ¥1,342,356 ¥ 375,941 ¥— ¥ 1,718,297
106,700—
106,700—
106,700
11,144,427——
11,434,936
11,434,936
432,693——432,693432,693(4,089,528)—(4,089,528)—(4,089,528)(10,020,853)

F-62

—

(9,244,942)(979,196) (10,224,138)

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Carrying amount

Assets (Liabilities)
Cash and cash equivalents . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . .
Total finance receivables, net . . . . . . . . . . . .
Other receivables . . . . . . . . . . . . . . . . . . . . .
Short-term borrowings . . . . . . . . . . . . . . . . .
Long-term debt including the current
portion . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U.S. dollars in millions
March 31, 2013
Estimated fair value
Level 1
Level 2
Level 3

$ 18,270
1,135
118,495
4,601(43,482)$14,273————(106,548)

—

Total

$ 3,997 $
—
1,135
—
—
121,584—
4,601(43,482)—$ 18,270
1,135
121,584
4,601(43,482)(98,298)(108,710)(10,412)

Cash and cash equivalents and time deposits In the normal course of business, substantially all cash and cash equivalents and time deposits are highly
liquid and are carried at amounts which approximate fair value due to its short duration. Cash equivalents andtime deposits include negotiable certificate of deposit measured at fair value on a recurring basis. Where money
market funds produce a daily net asset value in an active market, this value is used to determine the fair value ofthe fund investment, and the investment is classified in Level 1. All other types of cash and cash equivalents andtime deposits are classified in Level 2.
Finance receivables, net The fair values of finance receivables are estimated by discounting expected cash flows to present value
using internal assumptions, including prepayment speeds, expected credit losses and collateral value. Certain
impaired finance receivables are measured at fair value on a nonrecurring basis based on collateral values.
As unobservable inputs are utilized, finance receivables are classified in Level 3.
Other receivables Other receivables are short-term receivables. These receivables are carried at amounts which approximate
fair value, and the difference between the carrying amount and the fair value is not material. These receivables
are classified in Level 3.
Short-term borrowings and long-term debt The fair values of short-term borrowings and long-term debt including the current portion, except for
secured loans provided by securitization transactions using special-purpose entities, are estimated based on the
discounted amounts of future cash flows using Toyota’s current borrowing rates for similar liabilities. As these
inputs are observable, these debts are classified in Level 2.
The fair values of the secured loans provided by securitization transactions are estimated based on current
market rates and credit spreads for debt with similar maturities. Internal assumptions including prepayment
speeds and expected credit losses are used to estimate the timing of cash flows to be paid on the underlying
securitized assets. As these valuations utilize unobservable inputs, the secured loans are classified in Level 3. Seenote 12 to the consolidated financial statements for information regarding the secured loans.
F-63

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
22. Lease commitments:
Toyota leases certain assets under capital lease and operating lease arrangements.
An analysis of leased assets under capital leases is as follows:

Class of property
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yen in millions
March 31,
2012
2013

U.S. dollars
in millions
March 31,2013

¥ 12,230 ¥ 13,999
31,69832,252(20,284) (23,843)

$ 149
343
(254)

¥ 23,644$ 238¥ 22,408

Amortization expenses under capital leases for the years ended March 31, 2011, 2012 and 2013 were
¥5,966 million, ¥5,572 million and ¥5,265 million ($56 million), respectively.
Future minimum lease payments under capital leases together with the present value of the net minimum
lease payments as of March 31, 2013 are as follows:
Yen in millions

U.S. dollars
in millions

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 4,993
3,542
2,790
2,409
2,049
12,926

$ 53
38
30
25
22
137

Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less - Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,709(7,310)305(77)

Present value of net minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . .
Less - Current obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21,399(4,096)228(44)

Long-term capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥17,303$184

Years ending March 31,

Rental expenses under operating leases for the years ended March 31, 2011, 2012 and 2013 were
¥89,029 million, ¥91,052 million and ¥90,081 million ($958 million), respectively.

F-64

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The minimum rental payments required under operating leases relating primarily to land, buildings andequipment having initial or remaining non-cancelable lease terms in excess of one year at March 31, 2013 are as
follows:
Yen in millions

U.S. dollars
in millions

2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥11,299
9,398
7,988
6,347
5,354
21,491

$120
100
85
67
57
229

Total minimum future rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥61,877$658

Years ending March 31,

23. Other commitments and contingencies, concentrations and factors that may affect future operations:
Commitments
Commitments outstanding as of March 31, 2013 for the purchase of property, plant and equipment and otherassets totaled ¥203,901 million ($2,168 million).
Guarantees
Toyota enters into contracts with Toyota 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 maturity of installment payments, and as of March 31, 2013,
range from 1 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, 2013 is ¥1,849,493 million($19,665 million). Liabilities for guarantees totaling ¥6,590 million ($70 million) have been provided as ofMarch 31, 2013. Under these guarantee contracts, Toyota is entitled to recover any amount paid by Toyota fromthe customers whose original obligations Toyota has guaranteed.
Legal Proceedings
Product Recalls
From time-to-time, Toyota issues vehicle recalls and takes other safety measures including safety campaigns
relating to 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 recalledin Europe, China and other regions 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 in certain vehicle models including the Prius. Set forth below is a description of various claims,
lawsuits and government investigations involving Toyota in the United States relating to these recalls and othersafety measures.

F-65

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Class Action and Consolidated Litigation
Approximately 200 putative class actions and more than 500 individual product liability personal injury
cases have been filed since November 2009 alleging that certain Toyota, Lexus and Scion vehicles containdefects that lead to unintended acceleration. In April 2010, the approximately 190 putative class actions infederal court as well as the federal product liability personal injury cases and warranty and lemon law cases wereconsolidated for pretrial proceedings into a single multi-district litigation in the United States District Court for
the Central District of California. Approximately 10 putative class actions and various product liability personal
injury cases pending in state courts were subsequently consolidated into the federal action. The remaining classactions lawsuits are pending in a consolidated state action in California.
In December 2012, Toyota and the plaintiffs announced that they had reached an agreement to settle theeconomic loss claims in the consolidated federal action. The court preliminarily approved the agreement and held
the final approval hearing in June 2013. The court took the matter under submission and scheduled a hearing inJuly 2013 for the presentation of additional information. In fiscal 2013, Toyota recorded a $1.1 billion pre-tax
charge against earnings to cover the estimated costs of this resolution and other potential recall-related
resolutions, including the resolution of the civil litigation filed by the Orange County District Attorney and thestate attorneys general’s investigation discussed below.
The settlement provides a customer support program covering certain vehicle parts, the free installation of abrake override system on the remaining floor mat entrapment safety campaign vehicles and funds for cash
payments to customers who do not receive the brake override system, cash payments to individuals who
allegedly suffered a loss on the sale, lease or insuring the residual value of Toyota’s vehicles and funds forsafety-related research and education programs. The settlement does not cover product liability personal injury
claims in the consolidated federal action or pending in various state courts in the United States.
In April 2013, Toyota announced that the court had approved an agreement to resolve the civil action filedby the Orange County District Attorney in California state court seeking, among other things, statutory penalties
alleging that Toyota sold and marketed defective vehicles in violation of various California statutes. The amountof the settlement, which was not material to Toyota, was included in the charge taken in fiscal 2013.
Beginning in February 2010, Toyota was sued in approximately 20 putative class actions alleging defects inthe antilock braking system in various hybrid vehicles that cause the vehicles to fail to stop in a timely manner
when driving in certain road conditions. The plaintiffs seek an order requiring Toyota to repair the vehicles andclaim that all owners and lessees of vehicles, including those for which recalls have been implemented, should becompensated for the alleged defects related to the antilock braking system. These cases have been consolidated
into two actions, one in the United States District Court for the Central District of California and one in the Los
Angeles County Superior Court. In January 2013, the Court in the federal case issued an order denying theplaintiff’s motion for class certification and granting summary judgment in favor of Toyota on the claims of theprincipal named plaintiff for the cases relating to recalled vehicles. A class certification hearing in connection
with the claims related to those vehicles that were not recalled is scheduled in July 2013.
From February through March 2010, Toyota was sued in 6 putative shareholder class actions on behalf ofinvestors in Toyota ADRs and common stock. The cases alleged violations of the Securities Exchange Act of1934 and Japan’s Financial Instruments and Exchange Act and were consolidated into a single action in the
United States District Court for the Central District of California. The judge dismissed with prejudice the claims
based on Japan’s Financial Instruments and Exchange Act, and Toyota reached an agreement to resolve theclaims asserted on behalf of purchasers of Toyota’s ADRs for an amount not material to Toyota. The court
approved the settlement in March 2013.
F-66

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
While Toyota has resolved or is attempting to resolve many of these matters, Toyota believes that it has
meritorious defenses to all of them and will vigorously defend those matters not resolved.
Government Investigations
In February 2010, Toyota received a subpoena from the U.S. Attorney for the Southern District of New
York and a voluntary request and subpoena from the SEC. The subpoenas and the voluntary request primarily
seek documents related to unintended acceleration and certain financial records. This is a coordinatedinvestigation and has included interviews of Toyota and non-Toyota witnesses, as well as production of
documents. In June 2010, Toyota received a second voluntary request and subpoena from the SEC and a
subpoena from the U.S. Attorney for the Southern District of New York seeking production of documents related
to the recalls of the steering relay rod. Toyota is cooperating with the U.S. Attorney’s Office and SEC in theirinvestigations, which are on-going.
In June 2012, Toyota announced an amendment to the 2009 floor mat entrapment safety campaign toinclude model year 2010 RX350 and RX450h. Toyota submitted additional documents related to this amendment
pursuant to NHTSA’s request. In October 2012, Toyota filed an additional amendment to include model year
2008 through 2011 Land Cruiser. In December 2012, Toyota announced an agreement with NHTSA to resolve
timeliness claims related to the model year 2010 RX350 and RX450h safety campaign under which Toyota
agreed to make a $17.4 million payment to the U.S. Treasury.
Toyota also received subpoenas and formal and informal requests from various states’ attorneys general,
including the Executive Committee for a group of 30 states’ plus one territory’s attorney general, and certain
local governmental agencies regarding various recalls, the facts underlying those recalls and customer handling
related to those recalls. In February 2013, Toyota and the attorneys general resolved these investigations for an
amount not material to Toyota. Such amount was included in the charge taken in fiscal 2013. In connection withthis settlement, Toyota also made commitments to continue to conduct certain activities it is already undertaking.
Beyond the amounts accrued for the recall-related matters, Toyota is unable to estimate a range ofreasonably possible loss, if any, for the other recall-related matters because (i) many of the proceedings are inevidence gathering stages, (ii) significant factual issues need to be resolved, (iii) the legal theory or nature of theclaims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of othermatters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Although
Toyota cannot estimate a reasonable range of loss based on currently available information, the resolution ofthese matters could have an adverse effect on Toyota’s financial position, results of operations or cash flows.
Other Proceedings
Toyota has various other legal actions, other governmental proceedings and other claims pending against it,
including other product liability claims in the United States. For the same reasons discussed above relating to therecall-related legal proceedings, Toyota is unable to estimate a range of reasonably possible loss, if any, beyond
the amounts accrued, with respect to these claims. Based upon information currently available to Toyota,
however, Toyota believes that its losses from these matters, if any, would not have a material adverse effect on
Toyota’s financial position, results of operations or cash flows.
Environmental Matters and Others
In October 2000, the European Union brought into effect a directive that requires member states topromulgate regulations implementing the following: (i) manufacturers shall bear all or a significant part of thecosts for taking back end-of-life vehicles put on the market after July 1, 2002 and dismantling and recycling
F-67

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
those vehicles. Beginning January 1, 2007, this requirement became applicable to vehicles put on the market
before July 1, 2002; (ii) manufacturers may not use certain hazardous materials in vehicles to be sold after July
2003; (iii) vehicles type-approved and put on the market after December 15, 2008, shall be re-usable and/or
recyclable to a minimum of 85% by weight per vehicle and shall be re-usable and/or recoverable to a minimumof 95% by weight per vehicle; and (iv) end-of-life vehicles must meet actual re-use of 80% and re-use as material
or energy of 85%, respectively, of vehicle weight by 2006, rising respectively to 85% and 95% by 2015. A law toimplement the directive came into effect in all member states including Bulgaria, Romania that joined theEuropean Union in January 2007. Currently, there are uncertainties surrounding the implementation of theapplicable regulations in different European Union member states, particularly regarding manufacturer
responsibilities and resultant expenses that may be incurred.
In addition, under this directive member states must take measures to ensure that car manufacturers,
distributors and other auto-related economic operators establish adequate used vehicle collection and treatment
facilities and to ensure that hazardous materials and recyclable parts are removed from vehicles prior toshredding. This directive impacts Toyota’s vehicles sold in the European Union and Toyota is introducing
vehicles that are in compliance with such measures taken by the member states pursuant to the directive.
Based on the legislation that has been enacted to date, Toyota has provided for its estimated liability related
to covered vehicles in existence as of March 31, 2013. Depending on the legislation that will be enacted subject
to other circumstances, Toyota may be required to revise the accruals for the expected costs. Although Toyota
does not expect its compliance with the directive to result in significant cash expenditures, Toyota is continuing
to assess the impact of this future legislation on its financial position, results of operations and cash flows.
Toyota purchases materials that are equivalent to approximately 10% of material costs from a supplier
which is an affiliated company.
The parent company has a concentration of labor supply in employees working under collective bargaining
agreements and a substantial portion of these employees are working under the agreement that will expire on
December 31, 2014.
24. Segment data:
The operating segments reported below are the segments of Toyota for which separate financial information
is available and for which operating income/loss amounts are evaluated regularly by executive management indeciding how to allocate resources and in assessing performance.
The major portions of Toyota’s operations on a worldwide basis are derived from the Automotive andFinancial Services business segments. The Automotive segment designs, manufactures and distributes sedans,
minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories. The Financial Services
segment consists primarily of financing, and vehicle and equipment leasing operations to assist in themerchandising of the parent company and its affiliated companies products as well as other products. The All
Other segment includes the design, manufacturing and sales of housing, telecommunications and other business.

F-68

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present certain information regarding Toyota’s industry segments and operations bygeographic areas and overseas revenues by destination as of and for the years ended March 31, 2011, 2012 and2013.
Segment operating results and assets As of and for the year ended March 31, 2011:
Yen in millions

Automotive

Financial
Services

All Other

Inter-segment
Elimination/
UnallocatedAmountConsolidated

Net revenues
Sales to external customers . . . . . . . . ¥17,322,753 ¥ 1,173,168 ¥ 497,767 ¥— ¥18,993,688Inter-segment sales and transfers . . . .
14,567
19,037474,485(508,089)—
Total . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . .

17,337,320
17,251,347

Operating income . . . . . . . . . . . . . . . . ¥85,973 ¥1,192,205
833,925

972,252
937,010358,280 ¥(508,089)(496,873)

18,993,688
18,525,409

35,242 ¥ (11,216) ¥468,279

Assets . . . . . . . . . . . . . . . . . . . . . . . . . ¥11,341,558 ¥13,365,394 ¥1,146,720 ¥3,964,494 ¥29,818,166
Investment in equity method
investees . . . . . . . . . . . . . . . . . . . . .
1,784,539
3,519
3,045
26,885
1,817,988
Depreciation expenses . . . . . . . . . . . .
819,075
330,865
25,633—
1,175,573
Capital expenditure . . . . . . . . . . . . . .
691,867
991,330
21,058(13,064)
1,691,191
As of and for the year ended March 31, 2012:
Yen in millions

Automotive

Financial
Services

All Other

Inter-segment
Elimination/
UnallocatedAmountConsolidated

Net revenues
Sales to external customers . . . . . . . . ¥16,964,378 ¥ 1,071,737 ¥ 547,538 ¥— ¥18,583,653
Inter-segment sales and transfers . . . .
30,16828,587501,377(560,132)—
Total . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . ¥16,994,546
16,972,863
21,683 ¥1,100,324
793,886
306,438 ¥1,048,915
1,006,853(560,132)(545,576)

42,062 ¥ (14,556) ¥18,583,653
18,228,026
355,627

Assets . . . . . . . . . . . . . . . . . . . . . . . . . ¥12,261,814 ¥13,172,548 ¥1,161,224 ¥4,055,379 ¥30,650,965
Investment in equity method
investees . . . . . . . . . . . . . . . . . . . . .
1,877,720
3,887
4,765
27,757
1,914,129
Depreciation expenses . . . . . . . . . . . .
744,067
298,757
25,006—
1,067,830
Capital expenditure . . . . . . . . . . . . . .
796,839
683,161
35,34016,742
1,532,082

F-69

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of and for the year ended March 31, 2013:
Yen in millions

Automotive

Financial
Services

All Other

Inter-segment
Elimination/
UnallocatedAmountConsolidated

Net revenues
Sales to external customers . . . . . . . . ¥20,378,762 ¥ 1,150,042 ¥ 535,388 ¥— ¥22,064,192
Inter-segment sales and transfers . . . .
40,338
20,628531,073(592,039)—
Total . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . ¥20,419,100
19,474,396

1,170,670
854,850

944,704 ¥1,066,461
1,012,845

315,820 ¥(592,039)(598,787)

53,616 ¥22,064,192
20,743,304

6,748 ¥ 1,320,888

Assets . . . . . . . . . . . . . . . . . . . . . . . . . ¥13,179,741 ¥16,231,473 ¥1,310,115 ¥4,761,988 ¥35,483,317
Investment in equity method
investees . . . . . . . . . . . . . . . . . . . . .
2,033,040
4,925
6,968
57,651
2,102,584
Depreciation expenses . . . . . . . . . . . .
745,880
336,528
22,701—
1,105,109
Capital expenditure . . . . . . . . . . . . . .
937,695
1,005,326
29,286
1,845
1,974,152

Automotive

U.S. dollars in millions
Inter-segment
Elimination/
Financial
UnallocatedServices
All OtherAmountConsolidated

Net revenues
Sales to external customers . . . . . . . .
Inter-segment sales and transfers . . . .

$216,680
429$ 12,228219$ 5,693
5,646—(6,294)$234,601—

Total . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . .

217,109
207,064

12,447
9,089

11,33910,769(6,294)(6,366)234,601
220,556

Operating income . . . . . . . . . . . . . . . .

$ 10,045

$

3,358

$

72

$ 14,045

Assets . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in equity method
investees . . . . . . . . . . . . . . . . . . . . .
Depreciation expenses . . . . . . . . . . . .
Capital expenditure . . . . . . . . . . . . . .

$140,135$172,583$13,930$50,633$377,281

21,617
7,931
9,970

52
3,578
10,689

74
241
311

613
—
20

22,356
11,75020,990

F-70

570

$

$

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Geographic Information As of and for the year ended March 31, 2011:
Yen in millions

Japan

North
America

Net revenues
Sales to externalcustomers . . . . . . . . ¥ 6,966,929 ¥5,327,809
Inter-segment sales
and transfers . . . . . .
4,019,317
101,327
Total . . . . . . . . . . 10,986,246
5,429,136
Operating expenses . . . 11,348,642
5,089,633
Operating income(loss) . . . . . . . . . . . . ¥ (362,396) ¥ 339,503
Assets . . . . . . . . . . . . . ¥11,285,864
Long-lived assets . . . .
3,123,042¥9,910,828
2,276,332

Europe

Asia

Other

¥1,920,416 ¥3,138,112 ¥1,640,422
61,081
1,981,497
1,968,349¥

236,422
3,374,534
3,061,557

168,694
1,809,116
1,648,987

13,148 ¥ 312,977 ¥ 160,129¥1,931,231 ¥2,138,499 ¥2,044,379
305,627
344,304
259,855

Inter-segment
Elimination/
UnallocatedAmountConsolidated¥—¥18,993,688(4,586,841)(4,586,841)(4,591,759)—
18,993,688
18,525,409

¥

¥

4,918

¥ 2,507,365—

468,279¥29,818,166
6,309,160

As of and for the year ended March 31, 2012:
Yen in millions

Japan

North
America

Net revenues
Sales to externalcustomers . . . . . . . . ¥ 7,293,804 ¥4,644,348
Inter-segment sales
and transfers . . . . . .
3,873,515
107,538
Total . . . . . . . . . . 11,167,319
4,751,886
Operating expenses . . . 11,374,359
4,565,477
Operating income(loss) . . . . . . . . . . . . ¥ (207,040) ¥ 186,409
Assets . . . . . . . . . . . . . ¥12,034,423
Long-lived assets . . . .
2,981,985¥9,693,232
2,197,197

Europe

Asia

Other

Inter-segment
Elimination/
UnallocatedAmountConsolidated¥1,917,408 ¥3,116,849 ¥1,611,244¥

76,5381,993,946
1,976,150(4,423,947)(4,423,947)(4,416,805)¥

217,425
3,334,274
3,077,484

148,9311,760,175
1,651,361

17,796 ¥ 256,790 ¥ 108,814¥1,960,532 ¥2,433,312 ¥2,175,493
263,070
412,959
380,169

F-71

—

¥

¥18,583,653—
18,583,653
18,228,026(7,142) ¥¥ 2,353,973—

355,627¥30,650,965
6,235,380

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of and for the year ended March 31, 2013:
Yen in millions

Japan

North
America

Europe

Asia

Other

Net revenues
Sales to externalcustomers . . . . . . . . . ¥ 7,910,456 ¥ 6,167,821 ¥2,003,113 ¥4,058,629 ¥1,924,173
Inter-segment sales andtransfers . . . . . . . . . .
4,910,562
116,604
80,000326,847
170,092
Total . . . . . . . . . . . 12,821,018
6,284,425 2,083,113 4,385,476 2,094,265
Operating expenses . . . . 12,244,683
6,062,500 2,056,651 4,009,421 1,960,521
Operating income . . . . . ¥ 576,335 ¥ 221,925 ¥ 26,462 ¥ 376,055 ¥ 133,744
Assets . . . . . . . . . . . . . . ¥12,296,731 ¥11,841,471 ¥2,199,256 ¥3,305,319 ¥2,616,164
Long-lived assets . . . . .
2,929,346
2,633,067
288,288590,021410,517

Inter-segment
Elimination/
UnallocatedAmountConsolidated¥—¥22,064,192(5,604,105)—(5,604,105) 22,064,192(5,590,472) 20,743,304¥ (13,633) ¥ 1,320,888¥ 3,224,376—¥35,483,317
6,851,239

U.S. dollars in millions

Japan

North
America

Europe

Asia

Other

Net revenues
Sales to externalcustomers . . . . . . . . . $Inter-segment sales andtransfers . . . . . . . . . .
Total . . . . . . . . . . .
Operating expenses . . . .
Operating income . . . . . $84,109 $65,580 $21,299 $43,154 $

20,45952,212
136,321130,193
6,128 $

1,240
66,82064,4602,360 $

850
22,14921,868281 $

3,475
46,62942,6303,999 $

1,809
22,26820,846
1,422

Assets . . . . . . . . . . . . . . $Long-lived assets . . . . .

130,747 $
31,147125,906 $27,99623,384 $3,065

35,144 $
6,274

27,8174,365Inter-segment
Elimination/
UnallocatedAmountConsolidated

$

—

$

234,601$(59,586)(59,586)(59,441)(145) $—
234,601
220,556
14,04534,283—377,281
72,847$$“Other” consists of Central and South America, Oceania and Africa.
Revenues are attributed to geographies based on the country location of the parent company or thesubsidiary that transacted the sale with the external customer.
There are no any individually material countries with respect to revenues, and long-lived assets included inother foreign countries.
Unallocated amounts included in assets represent assets held for corporate purposes, which mainly consistof cash and cash equivalents and marketable securities. Such corporate assets were ¥4,613,672 million,¥4,749,259 million and ¥5,599,970 million ($59,542 million), as of March 31, 2011, 2012 and 2013,
respectively.
Transfers between industries or geographic segments are made at amounts which Toyota’s management
believes approximate arm’s-length transactions. In measuring the reportable segments’ income or losses,
operating income consists of revenue less operating expenses.

F-72

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Overseas Revenues by destination The following information shows revenues that are attributed to countries based on location of customers,
excluding customers in Japan. In addition to the disclosure requirements under U.S.GAAP, Toyota discloses thisinformation in order to provide financial statements users with valuable information.
Yen in millions

For the years ended March 31,
2011
2012
2013

North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,398,278
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,793,932
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,280,384
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,196,114¥4,715,804
1,817,944
3,284,392
3,103,383¥6,790,453
1,901,118
3,940,175
3,929,775“Other” consists of Central and South America, Oceania, Africa and the Middle East, etc.

F-73

U.S. dollars
in millions
For the year
ended
March 31,2013

$72,200
20,214
41,894
41,784

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Certain financial statements data on non-financial services and financial services businesses The financial data below presents separately Toyota’s non-financial services and financial services
businesses.
Balance sheets Yen in millions
March 31,
2012
2013

Non-Financial Services Businesses
Current assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade accounts and notes receivable, less allowance for
doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . .

U.S. dollars
in millions
March 31,2013

¥ 1,104,636
1,015,626¥ 1,107,409
1,204,447$ 11,775
12,8062,031,472
1,622,154
1,464,124

2,033,831
1,715,634
1,597,514

21,625
18,242
16,986

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,238,012

7,658,835

81,434

Investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,218,377
4,510,716

7,462,767
4,741,357

79,34950,413

Total Non-Financial Services Businesses assets . . . . . . .

17,967,105

19,862,959

211,196

Financial Services Businesses
Current assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . .

574,564
165,444
4,114,897
685,611

610,888
241,216
5,117,660
693,036

6,495
2,565
54,414
7,369

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,540,516

6,662,800

70,843

Noncurrent finance receivables, net . . . . . . . . . . . . . . . . . . . . . . . .
Investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,602,462
304,906
1,724,664

6,943,766
515,025
2,109,882

73,8305,476
22,434

Total Financial Services Businesses assets . . . . . . . . . . .

13,172,548

16,231,473

172,583

Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(488,688)(611,115)(6,498)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥30,650,965¥35,483,317$377,281

Assets in the non-financial services include unallocated corporate assets.

F-74

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
March 31,
2012
2013

Non-Financial Services Businesses
Current liabilities
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥715,019
339,441
2,234,316
1,737,490
123,344
1,175,801¥

576,685
185,582
2,092,722
2,092,102
140,935
1,186,870

U.S. dollars
in millions
March 31,
2013

$

6,132
1,973
22,251
22,245
1,499
12,619Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .

6,325,411

6,274,896

66,719Long-term liabilities
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

503,070
700,211
531,982

521,428754,360
969,668

5,544
8,021
10,310Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . .

1,735,263

2,245,456

23,875

Total Non-Financial Services Businesses liabilities . . . .

8,060,674

8,520,352

90,594

Financial Services Businesses
Current liabilities
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,040,373
2,218,526
27,09596,247
10,434536,291

3,861,699
2,538,249
37,655
105,901
15,331
632,025

41,06026,988
400
1,126
163
6,720

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .

5,928,966

7,190,860

76,457Long-term liabilities
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued pension and severance costs . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,555,112
8,191
520,252

6,876,849
11,752
724,337

73,119125
7,702

Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . .

6,083,555

7,612,938

80,946

Total Financial Services Businesses liabilities . . . . . . . .

12,012,521

14,803,798

157,403

Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(488,708)(613,689)(6,525)

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,584,487

22,710,461

241,472

Total Toyota Motor Corporation shareholders’ equity . . . . . . . . . .

10,550,261

12,148,035

129,166

Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

516,217624,821

6,643

Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . .

11,066,478

12,772,856

135,809

Total liabilities and shareholders’ equity . . . . . . . . . . . .

¥30,650,965¥35,483,317$377,281

F-75

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Statements of income Yen in millions

For the years ended March 31,
2011
2012
2013

U.S. dollars
in millions
For the year
ended
March 31,2013

Non-Financial Services Businesses
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥17,826,986 ¥17,534,872 ¥20,943,634 $222,686
Costs and expenses
Cost of revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,986,741 15,796,635 18,034,256 191,752
Selling, general and administrative . . . . . . . . . . . .
1,723,071
1,676,999
1,899,997
20,202
Total costs and expenses . . . . . . . . . . . . . . . . 17,709,812 17,473,634 19,934,253 211,954
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117,174
61,2381,009,381
10,732Other income (expense), net . . . . . . . . . . . . . . . . . . . . . .
88,84069,93579,837
849
Income before income taxes and equity in earnings ofaffiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . .
206,014131,173
1,089,218
11,581
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . .
178,795
141,558
436,223
4,638
Equity in earnings of affiliated companies . . . . . . . . . . .
214,229
196,544
230,078
2,446
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
241,448
186,159
883,073
9,389
Less: Net income attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(54,055)(82,181)(119,359)(1,269)Net income attributable to Toyota Motor Corporation- Non-Financial Services Businesses . . . . . . . . . . . . .
187,393
103,978
763,714
8,120
Financial Services Businesses
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,192,205
1,100,324
1,170,670
12,447
Costs and expenses
Cost of revenues . . . . . . . . . . . . . . . . . . . . . . . . . . .
636,374
615,563
633,306
6,734
Selling, general and administrative . . . . . . . . . . . .
197,551
178,323
221,544
2,355
Total costs and expenses . . . . . . . . . . . . . . . .
833,925
793,886
854,850
9,089
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
358,280
306,438
315,820
3,358
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . .
1,349(4,679)(970)(10)
Income before income taxes and equity in earnings ofaffiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . .
359,629
301,759
314,850
3,348
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . .
134,094
120,725
116,033
1,234
Equity in earnings of affiliated companies . . . . . . . . . . .
787
1,157
1,441
15
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
226,322
182,191
200,258
2,129
Less: Net income attributable to noncontrollinginterests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,251)(2,566)(1,961)(21)
Net income attributable to Toyota Motor Corporation- Financial Services Businesses . . . . . . . . . . . . . . . . .
223,071
179,625
198,297
2,108
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,281)(44)152
2
Net income attributable to Toyota Motor
Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 408,183 ¥ 283,559 ¥ 962,163 $ 10,230
F-76

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Statements of cash flows -Cash flows from operating activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation . . . . . . . . . . . . . . . . . . . . . . . .
Provision for doubtful accounts and credit
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and severance costs, lesspayments . . . . . . . . . . . . . . . . . . . . . . . . .
Losses on disposal of fixed assets . . . . . . .
Unrealized losses on available-for-salesecurities, net . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . .
Equity in earnings of affiliatedcompanies . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities,
and other . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating
activities . . . . . . . . . . . . . . . . . . . . .
Cash flows from investing activities
Additions to finance receivables . . . . . . . . .
Collection of and proceeds from sales offinance receivables . . . . . . . . . . . . . . . . .
Additions to fixed assets excluding
equipment leased to others . . . . . . . . . . .
Additions to equipment leased to others . . .
Proceeds from sales of fixed assets
excluding equipment leased to others . . .
Proceeds from sales of equipment leased toothers . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of marketable securities andsecurity investments . . . . . . . . . . . . . . . .
Proceeds from sales of and maturity ofmarketable securities and security
investments . . . . . . . . . . . . . . . . . . . . . . .
Payment for additional investments inaffiliated companies, net of cash
acquired . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in investments and other assets,
and other . . . . . . . . . . . . . . . . . . . . . . . . .

Yen in millions
For the year ended March 31, 2011
Non-Financial
Financial
Services
Services
Businesses
Businesses
Consolidated

Yen in millions
For the year ended March 31, 2012
Non-Financial
Financial
Services
Services
Businesses
Businesses
Consolidated¥¥

241,448¥

226,322¥465,485

186,159¥

182,191¥

368,302844,708

330,865

1,175,573

769,073

298,757

1,067,830

1,806

2,334

4,140

5,843

3,780

9,623

(24,867)
36,076

1,453
138(23,414)
36,214

15,41033,4481,301
80

16,711
33,528

7,915(17,258)—
103,035

7,915
85,71053,831(82,792)—
89,19953,831
6,395(214,229)(787)(215,016)(196,544)(1,157)(197,701)

591,378(106,416)

487,402

182,931(73,020)

93,916

1,466,977

556,9442,024,009

967,359

501,131

1,452,435—(14,323,261)(8,438,785)—(13,455,792)(8,333,248)—

13,887,751

8,003,940—

13,168,058

8,061,710(621,302)(78,559)(8,024)(983,306)(629,326)(1,061,865)(713,867)(135,054)(9,670)(673,491)(723,537)(808,545)

50,742600

51,342

36,203430

36,633

17,700468,995

486,695

20,689410,624

431,313(4,063,499)(358,308)(4,421,807)(2,565,772)(607,862)(3,173,634)

3,423,618

292,538

3,716,156

2,227,812

629,0132,856,825

(299)

—

(299)

(147)

—

(147)

394,479

18,303

177,605

213,957(12,206)

209,972

Net cash used in investing
activities . . . . . . . . . . . . . . . . . . . . .

(877,120)(1,004,712)(2,116,344)(916,179)(550,896)(1,442,658)

Cash flows from financing activities
Proceeds from issuance of long-term debt . . . . .
Payments of long-term debt . . . . . . . . . . . . . . . .
Increase (decrease) in short-term borrowings . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of common stock, and other . . . . . . . .

15,318(309,862)(86,884)(141,120)(28,617)2,934,588(2,306,139)
122,619——

2,931,436(2,489,632)
162,260(141,120)(28,617)39,803(294,646)
238,072(156,785)(37,448)

2,379,152(2,608,135)
93,002——

2,394,807(2,867,572)
311,651(156,785)(37,448)

Net cash provided by (used in)financing activities . . . . . . . . . . . . .

(551,165)

751,068

434,327(211,004)(135,981)(355,347)

Effect of exchange rate changes on cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(76,960)(50,069)(127,029)(36,093)(19,846)(55,939)

Net increase (decrease) in cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of year . . . . .

(38,268)
1,338,821

253,231526,925

214,963
1,865,746(195,917)
1,300,553(205,592)
780,156(401,509)
2,080,709

Cash and cash equivalents at end of year . . . . . . . . . .

¥ 1,300,553

780,156¥ 2,080,709¥ 1,104,636

574,564¥ 1,679,200

¥

F-77

¥

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
U.S. dollars in millions
For the year ended March 31, 2013
For the year ended March 31, 2013
Non-Financial Financial
Non-Financial Financial
Services
Services
Services
Services
Businesses
Businesses Consolidated
Businesses
Businesses Consolidated
Cash flows from operating activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for doubtful accounts and credit losses . . .
Pension and severance costs, less payments . . . . . . .
Losses on disposal of fixed assets . . . . . . . . . . . . . . .
Unrealized losses on available-for-sale securities,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . .
Equity in earnings of affiliated companies . . . . . . . .
Changes in operating assets and liabilities, andother . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥883,073¥

200,258 ¥ 1,083,482$ 9,389$

2,129$ 11,520

768,581
1,745(23,514)32,005336,528
25,622
3,085
216

1,105,109
27,367(20,429)
32,221

8,172
19
(250)
341

3,578
272
33
2

11,750
291
(217)
343

2,104
89,834(230,078)—
70,743(1,441)

2,104
160,008(231,519)

22
955(2,446)

—
753
(15)

22
1,701
(2,461)

472,51432,066292,973

5,024

341

3,115

1,996,264

667,077

2,451,316

21,226

7,093

26,064—(16,877,678)(10,004,928)—(179,454)(106,379)—

15,784,681

9,102,856—

167,832

96,788(839,756)(129,070)(14,805)(990,521)(854,561)(1,119,591)(8,929)(1,372)(157)(10,532)(9,086)(11,904)

38,051
68,571

1,140
464,870

39,191
533,441

405
729

12
4,943

417
5,672

(2,980,821)(431,602)(3,412,423)(31,694)(4,589)(36,283)

2,285,566

383,525

2,669,091

24,301

4,078

28,37916,216
17,206—(77,848)

16,216
3,396

172
183

—
(828)

172
36

Net cash used in investing activities . . . . . . . . .

(1,524,037)(1,758,238)(3,027,312)(16,205)(18,695)(32,188)

Cash flows from financing activities
Proceeds from issuance of long-term debt . . . . . . . . . . . .
Payments of long-term debt . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in short-term borrowings . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of common stock, and other . . . . . . . . . . . . . . .

182,114(328,380)(162,782)(190,008)(43,098)

3,089,484(2,415,566)
388,416——

3,191,223(2,682,136)
201,261(190,008)(43,098)

1,937(3,492)(1,731)(2,020)(458)

32,849(25,684)
4,130——

33,931(28,518)2,139(2,020)(458)

Net cash provided (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(542,154)

1,062,334

477,242(5,764)

11,2955,074

Effect of exchange rate changes on cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

72,70065,151

137,851

773

693

1,466

Net increase in cash and cash equivalents . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of year . . . . . . . . . . . .

2,773
1,104,636

36,324
574,564

39,097
1,679,200

30
11,745

386
6,109

416
17,854

Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . .

¥ 1,107,409

610,888 ¥ 1,718,297$ 11,775

6,495$ 18,270

Net cash provided by operating activities . . . . .
Cash flows from investing activities
Additions to finance receivables . . . . . . . . . . . . . . . . . . . .
Collection of and proceeds from sales of financereceivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions to fixed assets excluding equipment leased toothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions to equipment leased to others . . . . . . . . . . . . . .
Proceeds from sales of fixed assets excluding equipment
leased to others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of equipment leased to others . . . . . .
Purchases of marketable securities and security
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of and maturity of marketablesecurities and security investments . . . . . . . . . . . . . . . .
Payment for additional investments in affiliatedcompanies, net of cash acquired . . . . . . . . . . . . . . . . . .
Changes in investments and other assets, and other . . . . .

¥

F-78

$

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
25. Per share amounts:
Reconciliations of the differences between basic and diluted net income attributable to Toyota Motor
Corporation per share for the years ended March 31, 2011, 2012 and 2013 are as follows:

For the year ended March 31, 2011
Basic net income attributable to Toyota
Motor Corporation per common share . .
Effect of dilutive securities
Assumed exercise of dilutive
stock options . . . . . . . . . . . . . .
Diluted net income attributable to Toyota
Motor Corporation per common share . .
For the year ended March 31, 2012
Basic net income attributable to Toyota
Motor Corporation per common share . .
Effect of dilutive securities
Assumed exercise of dilutive
stock options . . . . . . . . . . . . . .
Diluted net income attributable to Toyota
Motor Corporation per common share . .
For the year ended March 31, 2013
Basic net income attributable to Toyota
Motor Corporation per common share . .
Effect of dilutive securities
Assumed exercise of dilutive
stock options . . . . . . . . . . . . . .
Diluted net income attributable to Toyota
Motor Corporation per common share . .

Yen inmillions

Thousandsof shares

Net income
attributable to
Toyota Motor
Corporation

Weightedaverage
sharesYen
Net income
attributable to
Toyota Motor
Corporation
per share¥408,183

3,135,881¥130.17(0)

34¥408,183

3,135,915¥130.16¥283,559

3,143,470¥ 90.21(3)

0¥283,556

3,143,470¥ 90.20¥962,163

3,166,909¥303.82(32)

246¥962,131

3,167,155

U.S. dollars
in millions
Net income
attributable to
Toyota Motor
Corporation

U.S. dollars
Net income
attributable to
Toyota Motor
Corporation
per share$10,230$3.23(0)¥303.78$10,230$3.23

Stock options that were not included in the computation of diluted net income attributable to Toyota Motor
Corporation per share for the years ended March 31, 2011, 2012 and 2013 were 12,403 thousand shares,
12,530 thousand shares and 8,682 thousand shares, respectively, because the options’ exercise prices weregreater than the average market price per common share during the period.
In addition to the disclosure requirements under U.S.GAAP, Toyota discloses the information below inorder to provide financial statements users with valuable information.

F-79

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows Toyota Motor Corporation shareholders’ equity per share as of March 31, 2012
and 2013. Toyota Motor Corporation shareholders’ equity per share amounts are calculated by dividing Toyota
Motor Corporation shareholders’ equities’ amount at the end of each period by the number of shares issued andoutstanding, excluding treasury stock at the end of the corresponding period.
Yen inmillions

As of March 31, 2012 . . . . . . . . . . . . .
As of March 31, 2013 . . . . . . . . . . . . .

Yen

U.S. dollars
in millions

U.S. dollars

Toyota Motor
Corporation
Shareholders’equityThousandsof shares
Shares issued
andoutstandingat the end of
the year(excluding
treasurystock)

Toyota Motor
Corporation
Shareholders’equityper share

Toyota Motor
Corporation
Shareholders’equityToyota Motor
Corporation
Shareholders’equityper share¥10,550,261
12,148,035

3,166,810
3,167,429¥3,331.51
3,835.30$129,166$40.78

26. Fair value measurements:
In accordance with U.S.GAAP, Toyota classifies fair value into three levels of input as follows which areused to measure it.
Level 1: Quoted prices in active markets for identical assets or liabilities
Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar
assets or liabilities in markets that are not active; inputs other than quoted prices that are observablefor the assets or liabilities
Level 3: Unobservable inputs for assets or liabilities
The following table summarizes the fair values of the assets and liabilities measured at fair value on arecurring basis at March 31, 2012 and 2013. Transfers between levels of the fair value are recognized at the endof their respective reporting periods:

Level 1

Yen in millions
March 31, 2012
Level 2
Level 3

Total

AssetsCash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 485,119 ¥ 223,385 ¥ —¥ 708,504
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—50,000—50,000Marketable securities and other securities investments
Public and corporate bonds . . . . . . . . . . . . . . . . . . . .
3,389,882
237,934
1,684
3,629,500
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,034,319——
1,034,319
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40,619428,737—
469,356
Derivative financial instruments . . . . . . . . . . . . . . . . . . . .
—289,9317,565
297,496
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥4,949,939¥1,229,987

Liabilities
Derivative financial instruments . . . . . . . . . . . . . . . . . . . .

¥—¥ (180,347) ¥(2,826) ¥ (183,173)

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

¥—¥ (180,347) ¥(2,826) ¥ (183,173)

F-80¥ 9,249¥6,189,175

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
March 31, 2013
Level 2
Level 3

Level 1

AssetsCash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities and other securities investments
Public and corporate bonds . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . .

——¥ 621,205
57,572792,806—
518,955
217,745

6,889
—
—
7,083

4,553,146
1,401,183
568,686
224,828¥5,449,629¥1,963,019¥13,972¥7,426,620

Liabilities
Derivative financial instruments . . . . . . . . . . . . . . . . . . .

¥—¥ (196,386) ¥ (1,956) ¥ (198,342)

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

¥—¥ (196,386) ¥ (1,956) ¥ (198,342)

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

¥ 245,264—¥ 375,941
57,572

3,753,451
1,401,183
49,731—

U.S. dollars in millions
March 31, 2013
Level 2
Level 3

Level 1

AssetsCash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities and other securities investments
Public and corporate bonds . . . . . . . . . . . . . . . . . . .
Common stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial instruments . . . . . . . . . . . . . . . . . . .

$

2,608
—

¥

Total

$

39,90914,898
529
—

3,997
612

$

8,430
—
5,518
2,315

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

$57,944$20,872

Liabilities
Derivative financial instruments . . . . . . . . . . . . . . . . . . .

$

—

$

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

$

—

$

—
—

Total

$

73
—
—
75
$

148

6,605
612
48,412
14,898
6,047
2,390

$

78,964(2,088) $(21) $(2,109)(2,088) $(21) $(2,109)The following is description of the assets and liabilities measured at fair value, information about thevaluation techniques used to measure fair value, key inputs and significant assumption:
Cash equivalents and time deposits Cash equivalents include money market funds and other investments with original maturities of threemonths or less. Cash equivalents classified in Level 2 include primarily negotiable certificate of deposit withoriginal maturities of three months or less. These are measured at fair value using observable interest rates in themarket. Time deposits include negotiable certificate of deposit with original maturities over three months. These
are measured at fair value using observable interest rates in the market.

F-81

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Marketable securities and other securities investments Marketable securities and other securities investments include public and corporate bonds, common stocks
and other investments. Public and corporate bonds include primarily government bonds and represent 60% ofJapanese bonds, and 40% of U.S., European and other bonds as of March 31, 2012, and 49% of Japanese bonds,
and 51% of U.S., European and other bonds as of March 31, 2013. Listed stocks on the Japanese stock markets
represent 83% and 85% of common stocks as of March 31, 2012 and 2013, respectively. Toyota uses primarily
quoted market prices for identical assets to measure fair value of these securities. “Other” includes primarily
investment trusts. Generally, Toyota uses quoted market prices for similar assets or quoted non-active market
prices for identical assets to measure fair value of these securities. These assets are classified in Level 2.
Derivative financial instruments See note 20 to the consolidated financial statements about derivative financial instruments. Toyota estimates
the fair value of derivative financial instruments using industry-standard valuation models that require observable
inputs including interest rates and foreign exchange rates, and the contractual terms. The usage of these models
does not require significant judgment to be applied. These derivative financial instruments are classified in
Level 2. In other certain cases when market data is not available, key inputs to the fair value measurement
include quotes from counterparties, and other market data. Toyota assesses the reasonableness of changes of thequotes using observable market data. These derivative financial instruments are classified in Level 3. Toyota’s
derivative fair value measurements consider assumptions about counterparty and our own non-performance risk,
using such as credit default probabilities.
The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on arecurring basis for the periods ended March 31, 2011, 2012 and 2013:
Yen in millions
For the year ended March 31, 2011Marketablesecurities andDerivative
other securities
financialinvestments
instruments
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gains (losses)
Included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included in other comprehensive income (loss) . . . . . . . . . . . .
Purchases, issuances and settlements . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 13,134¥ 5,892¥ 19,026

433
779
(810)
(13,536)

31,338—(8,381)(22,055)

31,771779(9,191)(35,591)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—¥ 6,794¥ 6,794

F-82

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Yen in millions
For the year ended March 31, 2012
Marketablesecurities andDerivative
other securities
financialinvestments
instruments
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gains (losses)
Included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included in other comprehensive income (loss) . . . . . . . . . . . . .
Purchases and issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥—¥ 6,794¥ 6,794

—
—
—
—
1,684

6,476
—
—
(3,832)(4,699)6,476——(3,832)(3,015)

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,684¥ 4,739¥ 6,423

Yen in millions
For the year ended March 31, 2013Marketablesecurities andDerivative
other securities
financialinvestments
instruments
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gains (losses)
Included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included in other comprehensive income (loss) . . . . . . . . . . . . .
Purchases and issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 1,684¥ 4,739¥ 6,423

24
58
3,607
(1,563)
3,079

2,118
—
—
(2,343)
613

2,142
58
3,607
(3,906)
3,692

Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 6,889¥ 5,127¥12,016

U.S. dollars in millions
For the year ended March 31, 2013Marketablesecurities andDerivative
other securities
financialinvestments
instruments
Total

Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total gains (losses)
Included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included in other comprehensive income (loss) . . . . . . . . . . . . .
Purchases and issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$Balance at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

18

$

0
1
38
(16)
32
73

50

$

22
—
—
(25)
7
$

54

68
22
1
38
(41)
39

$

127

“Included in earnings” in marketable securities and other securities investments and derivative financial
instruments are included in “Other income (loss), net” and “Cost of financing operations” in the accompanying
consolidated statements of income, respectively.

F-83

TOYOTA MOTOR CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In the reconciliation table above, derivative financial instruments are presented net of assets and liabilities.
The other amount includes consolidated retained interests in securitized financial receivables of¥(13,165) million, certain derivative financial instruments transferred into Level 2 due to be measured atobservable inputs of ¥(21,413) million and the impact of currency translation adjustments for the year ended
March 31, 2011, and includes the impacts of level transfers and currency translation adjustments for the year
ended March 31, 2012, and includes the currency translation adjustments for the year ended March 31, 2013.
As of March 31, 2013, the Level 3 assets and liabilities measured at fair value on a recurring basis are notsignificant.
Certain assets and liabilities are measured at fair value on a nonrecurring basis. During the years ended
March 31, 2012 and 2013, Toyota measured certain finance receivables at fair value of ¥32,056 million and¥32,974 million ($351 million) based on the collateral value, resulting in gains of ¥1,736 million and¥978 million ($10 million). This fair value measurement on a nonrecurring basis is classified in Level 3. Seenote 21 to the consolidated financial statements for the fair value measurement. These Level 3 financial assets are
not significant.

F-84

ITEM 19. EXHIBITS
Index to Exhibits
1.1

Amended and Restated Articles of Incorporation of the Registrant (English translation)

1.2

Amended and Restated Regulations of the Board of Directors of the Registrant (English
translation)

1.3

Amended and Restated Regulations of the Audit & Supervisory Board of the Registrant (English
translation)

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 totime 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, filedwith 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, 2011
filed with the SEC on June 24, 2011 (file no. 001-14948))

12.1

Certifications of the Registrant’s Chairman of the Board and Executive Vice President, Memberof 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, Memberof 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.CALXBRL Taxonomy Extension Calculation Linkbase

101.DEFXBRL Taxonomy Extension Definition Linkbase

101.LABXBRL Taxonomy Extension Label Linkbase

101.PREXBRL Taxonomy Extension Presentation Linkbase131

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

Date: June 24, 2013/s/

TAKUO SASAKI
Takuo Sasaki
Managing Officer

Exhibit 1.1(TRANSLATION)

ARTICLES OF INCORPORATIONTOYOTA MOTOR CORPORATIONARTICLES OF INCORPORATION OF TOYOTA MOTOR CORPORATION(As amended on June 14, 2013)
CHAPTER I. GENERAL PROVISIONS
Article 1. (Trade Name)
The name of the Corporation shall be “Toyota Jidosha Kabushiki Kaisha” to be expressed in English as“TOYOTA MOTOR CORPORATION”.
Article 2. (Purpose)
The purpose of the Corporation shall be to engage in the following businesses:(1) the manufacture, sale, leasing and repair of motor vehicles, industrial vehicles, ships, aircraft, othertransportation machinery and apparatus, spacecraft and space machinery and apparatus, and parts
thereof;(2) the manufacture, sale, leasing and repair of industrial machinery and apparatus and other generalmachinery and apparatus, and parts thereof;(3) the manufacture, sale, leasing and repair of electrical machinery and apparatus, and parts thereof;(4) the manufacture, sale, leasing and repair of measuring machinery and apparatus, and medical
machinery and apparatus, and parts thereof;(5) the manufacture and sale of ceramics and products of synthetic resins, and materials thereof;(6) the manufacture, sale and repair of construction materials and equipment, furnishings and fixtures forresidential buildings;(7) the planning, designing, supervision, execution and undertaking of construction works, civilengineering works, land development, urban development and regional development;(8) the sale, purchase, leasing, brokerage and management of real estate;(9) the service of information processing, information communications and information supply, and thedevelopment, sale and leasing of software;(10) the design and development of product sales systems that utilize networks such as the Internet; sale,leasing, maintenance of computers included within such systems, and sales of products by utilizing
such systems;(11) the inland transportation, marine transportation, air transportation, stevedoring, warehousing andtourism businesses;(12) the printing, publishing, advertising and publicity, general leasing, security and workers dispatch
businesses;(13) the credit card operations, purchase and sale of securities, investment consulting, investment trust
operation, and other financial services;(14) the operation and management of such facilities as parking lots, showrooms, educational facilities,
medical care facilities, sports facilities, marinas, airfields, food and drink stands and restaurants,
lodging facilities, retail stores and others;(15) the non-life insurance agency business and life insurance agency business;(16) the production and processing by using biotechnology of agricultural products including trees, and thesale of such products;(17) the sale of goods related to each of the preceding items and mineral oil;

(18) the conducting of engineering, consulting, invention and research relating to each of the preceding
items and the utilization of such invention and research; and(19) any businesses incidental to or related to any of the preceding items.
Article 3. (Location of Principal Office)The principal office of the Corporation shall be located in Toyota City, Aichi Prefecture, Japan.
Article 4. (Public Notices)
Public notices of the Corporation shall be given electronically; provided, however, that in the case that anelectronic public notice is impracticable due to an accident or any other unavoidable reason, public notices of the
Corporation shall be given in the newspaper “The Nihon Keizai Shimbun”.

CHAPTER II. SHARESArticle 5. (Total Number of Authorized Shares)
The total number of shares which the Corporation is authorized to issue shall be ten billion(10,000,000,000).
Article 6. (Number of Shares Constituting One Unit (tangen) and Rights to Shares
Constituting Less than One Unit (tangen) )1.

The number of shares constituting one unit (tangen) of shares of the Corporation shall be one hundred(100).

2.

The shareholders of the Corporation are not entitled to exercise any rights to shares constituting lessthan one unit (tangen) of shares held by the shareholders, other than the rights provided for in each
Item of Article 189, Paragraph 2 of the Corporation Act (Kaisha-hou).

Article 7. (Acquisition of Own Shares)
The Corporation may acquire its own shares by a resolution of the Board of Directors in accordance with theprovisions of Article 165, Paragraph 2 of the Corporation Act.
Article 8. (Transfer Agent)
1.

The Corporation shall have a transfer agent (Kabunushimeibo-Kanrinin).

2.

The transfer agent and the location of its office shall be designated by a resolution of the Board of Directors,
and public notice thereof shall be given.

3.

The register of shareholders and the register of stock acquisition rights shall be kept at the office of thetransfer agent. The entry or recording into the register of shareholders and the register of stock acquisitionrights, the purchase of shares constituting less than one unit (tangen) and any other matters related to theshares and stock acquisition rights shall be handled by the transfer agent and not by the Corporation.

Article 9. (Share Handling Regulations)
The procedures for and fees for the entry or recording into the register of shareholders and the register ofstock acquisition rights, purchasing shares constituting less than one unit (tangen) and any other matters relating
to the handling of shares and stock acquisition rights shall be subject to the Share Handling Regulations
established by the Board of Directors.

Article 10. (Record Date)
1.

The Corporation shall deem any shareholder entered or recorded in the final register of shareholders as ofMarch 31 in such year to be a shareholder entitled to exercise its rights at the ordinary general meeting ofshareholders for that business year.

2.

In addition to the case provided for in the preceding paragraph, the Corporation may, after giving priorpublic notice, fix a date as the record date, where it deems it necessary to do so.

CHAPTER III. GENERAL MEETINGS OF SHAREHOLDERS
Article 11. (Ordinary General Meetings and Extraordinary General Meetings of Shareholders)1.

The ordinary general meeting of shareholders of the Corporation shall be convened in June of each year.
Extraordinary general meetings of shareholders may be called whenever necessary.

2.

Each general meeting of shareholders may be convened at the place where the principal office of the
Corporation is located, or at a place adjacent thereto, or in Nagoya City.

Article 12. (Resolutions)1.

All resolutions of a general meeting of shareholders shall be adopted by a majority of the votes of theshareholders present at the meeting who are entitled to vote, unless otherwise provided by laws andregulations or these Articles of Incorporation of the Corporation.

2.

Special resolutions as specified by Article 309, Paragraph 2 of the Corporation Act shall be adopted by notless than two-thirds (2/3) of the votes of the shareholders present at the meeting who hold shares
representing in aggregate not less than one-third (1/3) of the voting rights of all shareholders who areentitled to vote.

Article 13. (Chairman of General Meeting)
1.

The Chairman of the Board or the President of the Corporation shall preside as chairman at a general
meeting of shareholders.

2.

In the event that the positions of both the Chairman of the Board and the President are vacant or that both ofthem are prevented from so presiding as chairman, another Director of the Corporation shall preside in theirplace according to the order of precedence previously established by the Board of Directors.

Article 14. (Exercise of Voting Rights by Proxy)1.

A shareholder may exercise its voting rights by proxy, provided, however, that the proxy shall be ashareholder of the Corporation who is entitled to exercise its own voting rights.

2.

In cases where the preceding paragraph applies, the shareholder or its proxy shall file with the Corporation adocument establishing the proxy’s power of representation for each general meeting of shareholders.

3.

The Corporation may refuse a shareholder having two (2) or more proxies attend a general meeting ofshareholders.

Article 15. (Deemed Delivery of Reference Documents, etc. for General Meeting of Shareholders)Upon convening a general meeting of shareholders, the Corporation may deem that the information which is
required to be described or indicated in reference documents for the general meeting of shareholders, business
reports, financial statements and consolidated financial statements shall be provided to the shareholders, in theevent that it is disclosed, pursuant to laws and regulations, through the method by which shareholders may
receive such information through an electronic means.

CHAPTER IV. DIRECTORS AND BOARD OF DIRECTORS
Article 16. (Number of Directors)
The Corporation shall have no more than twenty (20) Directors.
Article 17. (Election of Directors)
1.

Directors shall be elected by a resolution of a general meeting of shareholders.

2.

A resolution for the election of Directors shall be adopted by a majority vote of the shareholders present at
the meeting who hold shares representing in aggregate not less than one-third (1/3) of the voting rights of all
the shareholders who are entitled to vote.

3.

The election of Directors shall not be made by cumulative voting.

Article 18. (Term of Office of Directors)
1.

The term of office of Directors shall expire at the closing of the ordinary general meeting of shareholders tobe held for the last business year of the Corporation ending within one (1) year after their election.

2.

The term of office of any Director elected in order to increase the number of Directors or to fill a vacancy
shall be the balance of the term of office of the other Directors who hold office at the time of his/ herelection.

Article 19. (Board of Directors)
1.

The Corporation shall have a Board of Directors.

2.

Notice of a meeting of the Board of Directors shall be dispatched to each Director and each Audit &Supervisory Board Member at least three (3) days before the date of the meeting. In case of urgency,
however, such period may be shortened.

3.

With respect to matters to be resolved by the Board of Directors, the Corporation shall deem that suchmatters were approved by a resolution of the Board of Directors when all the Directors express theiragreement in writing or by electronic records. Provided, however, that this provision shall not apply when
any Audit & Supervisory Board Member expresses his/her objection to such matters.

4.

In addition to the preceding two (2) paragraphs, the management of the Board of Directors shall be subject
to the Regulations of the Board of Directors established by the Board of Directors.

Article 20. (Representative Directors and Executive Directors)
1.

The Board of Directors shall designate one or more Representative Directors by its resolution.

2.

The Board of Directors may appoint one Chairman of the Board, one President and one or more Vice
Chairmen of the Board and Executive Vice Presidents by its resolution.

Article 21. (Honorary Chairmen and Senior Advisors)
The Board of Directors may appoint Honorary Chairmen and Senior Advisors by its resolution.
Article 22. (Exemption from Liability of Directors)
In accordance with the provisions of Article 426, Paragraph 1 of the Corporation Act, the Corporation may,by a resolution of the Board of Directors, exempt Directors (including former Directors) from liabilities provided
for in Article 423, Paragraph 1 of the Corporation Act within the limits stipulated by laws and regulations.

Article 23. (Liability Limitation Agreement with Outside Directors)
In accordance with the provisions of Article 427, Paragraph 1 of the Corporation Act, the Corporation may
enter into an agreement with Outside Directors, limiting liabilities provided for in Article 423, Paragraph 1 of the
Corporation Act; provided, however, that the limit of the liability under the agreement shall be the minimum
amount of liability stipulated by laws and regulations.

CHAPTER V. AUDIT & SUPERVISORY BOARD MEMBERS AND
AUDIT & SUPERVISORY BOARD
Article 24. (Establishment of Audit & Supervisory Board Members and Number of Audit & Supervisory
Board Members)
The Corporation shall have no more than seven (7) Audit & Supervisory Board Members.
Article 25. (Election of Audit & Supervisory Board Members)
1.

Audit & Supervisory Board Members shall be elected by a resolution of a general meeting of shareholders.

2.

A resolution for the election of Audit & Supervisory Board Members shall be adopted by a majority vote of
the shareholders present at the meeting who hold shares representing in aggregate not less than one-third(1/3) of the voting rights of all the shareholders who are entitled to vote.

Article 26. (Term of Office of Audit & Supervisory Board Members)
1.

The term of office of Audit & Supervisory Board Members shall expire at the closing of the ordinary
general meeting of shareholders to be held for the last business year of the Corporation ending within four(4) years after their election.

2.

The term of office of any Audit & Supervisory Board Member elected to fill a vacancy shall be the balanceof the term of office of the Audit & Supervisory Board Member whom he/she succeeds.

Article 27. (Audit & Supervisory Board)
1.

The Corporation shall have an Audit & Supervisory Board.

2.

Notice of a meeting of the Audit & Supervisory Board shall be dispatched to each Audit & Supervisory
Board Members at least three (3) days before the date of the meeting. In case of urgency, however, such
period may be shortened.

3.

In addition to the provisions of the preceding paragraph, the management of the Audit & Supervisory Board
shall be subject to the Regulations of the Audit & Supervisory Board established by the Audit &Supervisory Board.

Article 28. (Full-time Audit & Supervisory Board Member)
The Audit & Supervisory Board shall, by its resolution, select one or more full-time Audit & Supervisory
Board Members.
Article 29. (Exemption from Liability of Audit & Supervisory Board Members)
In accordance with the provisions of Article 426, Paragraph 1 of the Corporation Act, the Corporation may,by a resolution of the Board of Directors, exempt Audit & Supervisory Board Members (including former
Audit & Supervisory Board Members) from liabilities provided for in Article 423, Paragraph 1 of the
Corporation Act within the limits stipulated by laws and regulations.

Article 30. (Liability Limitation Agreement with Outside Audit & Supervisory Board Members)
In accordance with the provisions of Article 427, Paragraph 1 of the Corporation Act, the Corporation may
enter into an agreement with Outside Audit & Supervisory Board Members, limiting liabilities provided for in
Article 423, Paragraph 1 of the Corporation Act; provided, however, that the limit of the liability under theagreement shall be the minimum amount of liability stipulated by laws and regulations.

CHAPTER VI. ACCOUNTING AUDITOR
Article 31. (Accounting Auditor)
The Corporation shall have an Accounting Auditor(kaikeikansa-nin).

CHAPTER VII. ACCOUNTS
Article 32. (Business Year)The business year of the Corporation shall be one (1) year from April 1 of each year until March 31 of thefollowing year.
Article 33. (Dividends from Surplus, etc.)
1.

Dividends from Surplus of the Corporation shall be paid to the shareholders or registered share pledgees
entered or recorded in the final register of shareholders as of March 31 of each year.

2.

The Corporation may, by a resolution of the Board of Directors, distribute dividends from surplus asprovided for in Article 454, Paragraph 5 of the Corporation Act to the shareholders or registered sharepledgees entered or recorded in the final register of shareholders as of September 30 of each year.

3.

In addition to the preceding two (2) paragraphs, the Corporation may, by a resolution of the Board of
Directors, decide on matters provided for in each Item of Article 459, Paragraph 1 of the Corporation Act.

4.

No interest shall be paid on unpaid dividends from surplus.

Article 34. (Dispensation from Payment of Dividends from Surplus, etc.)
In the case where the dividends from surplus are paid by cash, the Corporation shall not be obliged to pay
any dividends from surplus after three (3) years have expired from the date of tender thereof.

Exhibit 1.2(TRANSLATION)REGULATIONS OF
THE BOARD OF DIRECTORSOFTOYOTA MOTOR CORPORATION
Established: February 27, 1952
As last amended on May 28, 2013
(Aa004-14)
Article 1. (Regulations of the Board of Directors)
Except as provided for in laws, ordinances or the Articles of Incorporation, matters relating to the Board of
Directors of Toyota Motor Corporation (the “Company”) shall be governed by the provisions of theseRegulations.
Article 2. (Purpose and Composition)
1.

The Board of Directors shall be composed of all the Directors and shall make decisions on the execution ofbusiness, supervise the execution of the duties of Directors, and designate and dismiss the Representative
Directors.

2.

Audit & Supervisory Board Members shall be present and, whenever necessary, give their opinions at a
meeting of the Board of Directors.

3.

Senior Managing Officers and Managing Officers shall be present only to the extent required to give
explanation for matters to be resolved and to be reported in case of such attendance permitted by Board of
Directors related to the matters to be resolved and reported. However, Senior Managing Officers andManaging Officers are not able to participate in resolutions.

Article 3. (Person to Convene Meeting and Notice of Meeting)1.

A meeting of the Board of Directors shall be convened by the Chairman of the Board or the President. In theevent that the positions of both the Chairman of the Board and the President are vacant or that both of themare prevented from convening, such meeting shall be convened by the Vice Chairman of the Board, theExecutive Vice President or other Board of Directors in that order and according to their rank, if there are
multiple persons holding the same position.

2.

Notice of convening a meeting of the Board of Directors shall be dispatched to each Director and each
Audit & Supervisory Board Member at least three (3) days before the date of the meeting. In the case ofurgency, however, such period may be shortened.

3.

A meeting of the Board of Directors may be held without following the convening procedure, if consented
to by all the Directors and the Audit & Supervisory Board Members.

Article 4. (Chairmanship and Method of Adopting Resolutions)
1.

The Chairman of the Board or the President shall preside as chairman at a meeting of the Board of
Directors. In the event that the positions of both the Chairman of the Board and the President are vacant orthat both of them are prevented from so presiding as chairman, the Vice Chairman of the Board, theExecutive Vice President or other Board of Directors, shall preside as chairman in that order and according
to their rank in the case that there are multiple persons holding the same position.

2.

Resolutions of the Board of Directors shall be adopted at meetings at which a majority of the Directors whoare entitled to vote shall be present, by a majority of the Directors so present.

3.

With respect to matters to be resolved by the Board of Directors, the Company shall deem that such matterswere approved by a resolution of the Board of Directors when all the Directors express their agreement inwriting or by electronic records. Provided, however, that this provision shall not apply when any Audit &Supervisory Board Member expresses his/her objection to such matters.

4.

With respect to matters to be reported to the Board of Directors, Directors, Audit & Supervisory Board
Members or Accounting Auditors shall not be required to report such matters to the Board of Directors
when such matters are notified to all the Directors and Audit & Supervisory Board Members.

Article 5. (Matters to be Resolved)
The following matters shall be subject to the resolution of the Board of Directors:(1) Matters provided for in the Corporation Act or other laws or ordinances;(2) Matters provided for in the Articles of Incorporation;(3) Matters delegated to the Board of Directors by resolution of a general meeting of shareholders; and(4) Other important managerial matters.
Article 6. (Matters to Be Reported)
Directors shall report to the Board of Directors on the following matters:(1) State of execution of business and such other matters as are provided for in the Corporation Act or otherlaws or ordinances; and(2) Such other matters as the Board of Directors may deem necessary.
Article 7. (Meetings and Minutes)
1.

A meeting of the Board of Directors shall be held in Japanese, minutes shall be prepared each time ameeting of the Board of Directors is held and such minutes shall be kept on file at the head office for ten
years.

2.

Minutes shall set forth matters provided for in the laws or ordinances and the Directors and Audit &Supervisory Board Members present shall sign or affix their names and seals thereto.

3.

Minutes shall be prepared in Japanese.

Supplementary Provisions
Article 1. (Effective Date)
These Regulations shall become effective as of September 18, 2012.
Article 2. (Amendment to Regulations)
Any amendment to these Regulations shall be made by a resolution of the Board of Directors.

MATTERS TO BE SUBMITTED TO THE BOARD OF DIRECTORS
General Rules of the “Matters To Be Submitted To The Board of Directors” (this “List”)
1.

Pursuant to Article 5(1), (2) and (3) of the Regulations of the Board of Directors, matters and items
defined in I-1, 2 and 3 of this List shall, without fail, be submitted to the Board of Directors.

2.

In addition, pursuant to Article 5(4) of the Regulations of the Board of Directors, for matters and items
defined in I-4 of this List, materiality must be appropriately judged and matters must be submitted
accordingly to the Board of Directors.

3.

Materiality shall be determined by Chief Officers, Deputy Chief Officers (and Executives responsiblefor individual Divisions for those under the direct control) taking into consideration “submission
standards,” “special rules,” “definitions” and “explanations” in this List. If the amount of transaction
does not meet the submission standards at first, but there occurs a possibility that it may exceed suchstandards later on, such transaction shall be submitted to the Board of Directors at the time suchpossibility arises.

4.

Pursuant to Article 6 of the Regulations of the Board of Directors, matters and items defined in II ofthis List shall be reported to the Board of Directors without delay.

Standard for re-submission
If material changes are made to a matter previously submitted to the Board of Directors (such as 20% ormore of increase in the amount approved by the Board of Directors), such matter shall be re-submitted to theBoard of Directors.

I.

Matters to be Resolved:
1.

Matters provided for in the Corporation Act or other laws or ordinances:Classifications

Items

Relevant Articles
of Applicable Law

Shares; stockacquisitionrights:Fixing the record date

Article 124

Acquisition of the Corporation’s own shares held by its subsidiaries

Article 163

Cancellation of the Corporation’s own shares

Article 178

Share-splits

Article 183

Free Allotment of shares

Article 186

Reduction of the number of shares constituting one unit (tangen) of shares orabolishment of the provisions which define such number

Article 195

Auction of shares held by shareholders whose whereabouts are unknown

Article 197

Issuance of new shares

Article 201

Disposition of the Corporation’s own shares

Article 201

Issuance of stock acquisition rights

Article 240

Approval of transferring stock acquisition rights with transfer restrictions

Article 265

Acquisition of stock acquisition rights with acquisition clause

Articles 273 and274

Cancellation of stock acquisition rights

Article 276

Free Allotment of stock acquisition rights

Article 278

Generalmeetings ofshareholders:Convening of a general meeting of shareholders

Article 298

Board
of
Directors;
Directors:

Designation and dismissal of Representative Directors

Article 362

Approval of Directors’ competing transactions

Article 365

Approval of Directors’ transactions for their own account

Article 365

Approval of Directors’ transactions involving conflict of interests

Article 365

Approval of financial statements, business reports and the accompanying
detailed statements

Article 436

Approval of extraordinary financial statements

Article 441

Approval of consolidated financial statements

Article 444

Reduction in the amount of capital (with conditions)

Article 447

Reduction in the amount of reserves (with conditions)

Article 448

Offering of bonds

Article 362

Issuance of bonds with stock acquisition rights

Article 240

Accounts:

Bonds:

Classifications

Items

Relevant Articles
of Applicable Law

Others:

Disposition and acquisition of important property

Article 362

Borrowing of a large amount of money

Article 362

Appointment and removal of managers and other important employees

Article 362

Establishment, alteration and abolition of branch offices and other importantorganizations

Article 362

Development of a framework to ensure business adequacy of the joint stockcompany

Article 362

Other important business execution

Article 362

2.

Matters provided for in the Articles of Incorporation:

Classifications

Items

Relevant Articlesof the Articles ofIncorporation

Shares:Acquisition of Corporation’s own shares

Articles 7 and 32

Selection of registration agent and its location of business

Article 8

Amendment to the Share Handling Regulations

Article 9

The order in which to assume chairmanship of a general meeting ofshareholders

Article 13

Appointment and removal of Directors with specific titles

Article 20

Amendment to the Regulations of the Board of Directors

Article 19

Exemption of Director from their liabilities

Article 22

Audit &
Supervisory
Board
Members:

Exemption of Audit & Supervisory Board Members from their liabilities

Article 28

Accounts:

Distribution of interim dividends from surplus

Article 32

Reduction in the amount of reserves

Article 32

Other disposition of surplus

Article 32

Distribution of dividends from surplus

Article 32

Appointment of Honorary Chairman and Senior Advisor

Article 21

Generalmeeting ofshareholders:
Board ofDirectors;
Directors:

Others:3.

Matters delegated to the Board of Directors by resolution of a general meeting of shareholders:Classifications

Items

Shares:Acquisition of Corporation’s own shares
Issuance of new shares or stock acquisition rights on favorable conditions

Others:Other matters delegated to the Board of Directors

4.

Other important managerial matters:

Classifications

Items

Management:

Corporate policies
Important business alliances and important joint ventures
Launching of new projects
Short-form and simplified corporate splits
Short-form and simplified share exchanges
Simplified acquisition of an entire business of another company
Approval of interim and quarterly accounts
Approval of consolidated accounts (including interim and quarterly accounts)
Institution of important legal actions and defending and responding to important disputes
Other important matters

Personnel
affairs;organization:

Directors, Senior Managing Officers, Managing Officers, and Executive General Managers’(jyomu riji) assumption of offices in other companies (in the case of new offices in listedcompanies only)
Directors, Senior Managing Officers, and Managing Officers’ assumption of offices in important
associations(in the case of new offices only)
Assignment of Directors, Senior Managing Officers, and Managing Officers to take charge ofgroup, field, plant, technical center and any other organizations similar thereto (Excludingchanges in the same organization)
Treatment and discipline relating to Directors, Senior Managing Officers, and Managing Officers
Appointment and removal of Senior Managing Officers and Managing Officers
Appointment and removal of Senior Technical Executive (gikan) and Advisor (komon)
Approval of Senior Managing Officers and Managing Officers’ competing transactions
Approval of Senior Managing Officers and Managing Officers’ transactions for their own
account
Approval of Senior Managing Officers and Managing Officers’ transactions involving conflict ofinterests
Changes of important working conditions
Other important matters

Production;
Sales;
Technology
development:

Long-term or annual production, shipment or sales plans
Long-term or annual equipment plans
Licensing, acquisition or transfer of important intellectual property rights
Other important mattersGroupmanagement:

Incorporation, dissolution, acquisition and transfer of subsidiaries
Important group managerial matters
Other important matters

Others:Other important managerial matters

II. Matters to be reported:
Items

Relevant Articles of Applicable Law

State of execution of businessCorporation Act
Article 363

Important facts about a competing transaction

Article 365

Important facts about any Director’s transactions for his/her own Article 365
accounts
Important facts about any transactions involving conflict of interests
Directors, Senior Managing Officers, Managing Officers andExecutive General Managers’ (jyomu riji) retirement from offices inother companies (Listed companies only)
Directors, Senior Managing Officers, and Managing Officers’
retirement from offices in important associations
Audit & Supervisory Board Members’ assumption (in the case of
new offices only) and retirement from offices in other companies(Listed companies only)
Audit & Supervisory Board Members’ assumption (in the case of
new offices only) and retirement from offices in important
associations
Monthly production/shipment/sales results
Important matters, such as incorporation of subsidiaries by a joint
venture company
Other important matters

Article 365

1. Out of “I. Matters to be Resolved” of the “Matters to be Submitted to the Board of Directors”, the mattersdescribed in “Others” in “1. Matters provided for in the Corporation Act or other laws or ordinances” shall be
submitted to the Board of Directors in accordance with the standards contained in Appendix 1.
Appendix 1
Items

Standard(1) Disposition and acquisition of important property:
1purchase and disposition of land (excluding
land for business use)

5,000,000,000 Yen*1 or more per transaction2acquisition and transfer of leaseholds

5,000,000,000 Yen*2 or more per transaction

3

investments (excluding fund management
investments)

5,000,000,000 Yen*3 or more per transaction

4

capital expenditure (excluding model change
and renewal of aging assets)

30,000,000,000 Yen*4 or more per transaction

5loans (excluding renewal of bills and notes,
and loans as part of financial business)

5,000,000,000 Yen*5 or more per transaction, or loans
outstanding of 5,000,000,000 Yen*5 or more percompany6discharge of debts

200,000,000 Yen or more per transaction

7

donations (excluding those via Japan
Automobile Manufacturers Association, Inc.)

200,000,000 Yen or more per transaction(2) Borrowings of large amounts of money:
1borrowing

5,000,000,000 Yen or more per transaction

2

guarantee of obligations

5,000,000,000 Yen*6 or more per transaction, or
outstanding guarantee of obligation of 5,000,000,000
Yen*6 or more per company(3) Appointment and removal of managers and otherimportant employees

Assignment of Executive General Manager (jyomuriji) and any other personnel similar thereto to takecharge of group, field, plant, technical center and anyother organizations similar thereto (Excludingchanges in the same organization)(4) Establishment, alteration and abolition of branch
offices and other important organizations

Establishment, alteration and abolition of group,
field, plant, technical center and any otherorganizations similar thereto(*1) Purchase and disposition of land
In the case where any of the acquisition price, book value, or transaction price is 5,000,000,000 Yen or more
per transaction, a submission shall be required.
(*2) Definition of “leaseholds”“Leasehold” is a right which is obtained by a temporary payment of concession money as a setup fee forleasehold, when leasing land for the purpose of owning buildings (excluding parking space, etc.).
(*3) Special rules regarding investment(I)

Even if the amount is below 5,000,000,000 Yen, if the conditions match either of the following, asubmission shall be required.
(i)

Investment made to subsidiaries which were insolvent as of the end of the most recent closing dateof accounts or those anticipated to become insolvent during their current fiscal period.

(ii) Investment made to companies other than the subsidiaries.

(II) Notwithstanding (I) above, such submission may be omitted by the decision(s) of the Executive Vice
President(s) whose main duties are in relation to the division in charge of the case concerned and to theaccounting areas, in the case where the amount of investment is below 2,000,000,000 Yen.
(III) After the investment is made, if such investment comes to fall under (i) or (ii) in (I) above, whether or
not to submit such matter to the Board of Directors shall be decided by the Executive Vice President(s)as defined in (II) above.
(*4) Capital expenditure
1

Explanation of capital expenditure
The main coverage of this item shall be those such as the construction of new factories, productionlines, buildings and sales bases, among others, which change the structure of business and may
possibly pose new management risks.

2Special rules regarding capital expenditure(I)

Even if the amount is below 30,000,000,000 Yen, if new factories are constructed, a submission shallbe required.

(II) In making a submission, attention shall be made to show a project overall picture such as vehicles andunit components.
(*5) Special rules regarding loans(I)

Even if the amount is below 5,000,000,000 Yen, if the conditions match any of the following, asubmission shall be required.
(i)

Loans made available to companies which were insolvent as at the end of the most recent closing
date of accounts or those anticipated to become insolvent during their current fiscal period(whether or not such finance is directed to the subsidiaries).

(ii) Loans made available to companies (excluding subsidiaries) which have their head office locatedin countries or areas having a country risk rating below A.
(iii) Unsecured loans made available to companies other than subsidiaries.
(II) Notwithstanding (I) above, such submission may be omitted by the decision(s) of the Executive
Vice President(s) whose main duties are in relation to the division in charge of the case concerned andto the accounting areas, in the case where amounts of loans and loans outstanding are below
2,000,000,000 Yen.
(III) After the loan is made available, if such loan comes to fall under (i), (ii) or (iii) in (I) above, whether or
not to submit such matter to the Board of Directors shall be decided by the Executive Vice President(s)as defined in (II) above.
(*6) Special rules regarding guarantee of obligations(I)

Even if the amount is below 5,000,000,000 Yen, if the conditions match either of the following, asubmission shall be required.
(i)

Guarantee of obligation made to subsidiaries which were insolvent as at the end of the most recent
closing date of accounts or those anticipated to become insolvent during their current fiscal
period.
(ii) Guarantee of obligation made to companies other than subsidiaries.
(II) Notwithstanding (I) above, such submission may be omitted by the decision(s) of the Executive Vice
President(s) whose main duties are in relation to the division in charge of the case concerned and to theaccounting areas, in the case where amounts of guarantee of obligation and outstanding guarantee ofobligation are below 2,000,000,000 Yen.

(III) After the guarantee of obligation is made, if such guarantee comes to fall under (i) or (ii) in (I) above,
whether or not to submit such matter to the Board of Directors shall be decided by the Executive Vice
President(s) as defined in (II) above.
2. Out of “I. Matters to be Resolved” of the “Matters to be Submitted to the Board of Directors”, the mattersrelating to “Management” in “4. Other important managerial matters” shall be submitted to the Board of
Directors in accordance with the standards contained in Appendix 2.
Appendix 2
Items

Standard(1) Important business alliances and important joint
ventures:12

definition of “business alliance” and “joint venture”(1) “Business alliance”

Used when businesses such as sales tie-up,
continuous provision of products, acceptance/
entrustment of production, joint production, joint
development, or technology licensing, etc. arecommenced or terminated, or material changes withrespect to these businesses are made.

(2) “Joint venture”

Used when Toyota Motor Corporation (“TMC”) anda business partner or its subsidiary make joint
investments to establish or acquire a joint venturecompany and have such joint venture company
conduct businesses for the purposes of the subject
joint venture.

materiality standards for “important businessalliances and important joint ventures” *1(1) Monetary standard

In case TMC plans to spend 5,000,000,000 Yen or
more in total for loan and investment, capital
expenditures, etc. at the beginning of the plan.

(2) Qualitative standard

In case the subject business alliance or joint venture(including with a dominant competitor) may
materially affect TMC’s management in terms ofsales, profits, etc.

(2) Launching of new projects:
1

definition of “launching of new projects”

Used when TMC launches a business not relating to
its existing business areas (such as automobiles,
industrial vehicles, housing, information andtelecommunication, boats and ships, airplanes,
biotechnology or financial businesses.)
Other than launch of business by TMC itself, launchof business through business alliance or through its
subsidiary or joint venture company (excluding
companies in which TMC invests without being
required to include such companies’ operating results
in its consolidated financial statements pursuant to
the Securities Exchange Law) shall also be
considered as “launching of new projects.”

ItemsStandard(3) Institution of important legal actions and defending
and responding to important disputes *2
1

Monetary standard

In case that value of subjects (including rights andobligations) that are subject to legal action (in a
response to legal action, reasonable amount for
settlement) is 2,000,000,000 Yen or more.

2

Qualitative standard

In case of legal actions such as filing of legal action
with respect to important intellectual property rights
or dispute with a public entity with respect toenvironmental issues, which may materially affect
TMC’s management, business, rights or brand image,etc.

(*1) Materiality standards for “important business alliances and important joint ventures”
If a business alliance or joint venture falls under either the “Monetary standard” or “Qualitative standard”, itshall be submitted to the Board of Directors.
(*2) Materiality standards for “institution of important legal actions and defending against and responding toimportant disputes”
If a case falls under either “Monetary standard” or “Qualitative standard”, it shall be submitted to the Boardof Directors.
3. Out of “I. Matters to be Resolved” of the “Matters to be Submitted to the Board of Directors”, the mattersrelating to “Personnel affairs, organization” in “4. Other important managerial matters” shall be submitted to theBoard of Directors in accordance with the standards contained in Appendix 3.
Appendix 3
Items

Standard(1) Directors, Senior Managing Officers, and Managing
Officers’ assumption of offices in important
associations (in case of new offices only)

In case that directors, Audit & Supervisory Board
Members, senior managing officers, or managing
officers of TMC assume or resign from a position
such as chairman, board chairman, committee
chairman, etc. of Japan Business Federation, The
Japan Chamber of Commerce and Industry, Japan
Association of Corporate Executives, Japan
Automobile Manufacturer Association, Counsel ofgovernment
authorities
or otherimportantassociations comparable to these associations(2) Changes in important working conditions:

In case that certain actions such as changes inworking conditions with respect to employment
which may materially affect TMC’s management andemployees

4. Out of “I. Matters to be Resolved” of the “Matters to be Submitted to the Board of Directors”, the mattersrelating to “Production; Sales; Technology development” in “4. Other important managerial matters” shall be
submitted to the Board of Directors in accordance with the standards contained in Appendix 4.

Appendix 4
Materiality standard for “licensing, acquisition or transfer of important intellectual property rights”
Certain actions such as licensing of intellectual property rights relating to TMC’s essential technologies ortransfer of TMC’s trademark, which may materially affect TMC’s management, such licensing, transfer or
acquisition shall be deemed material.
5. Out of “I. Matters to be Resolved” of the “Matters to be Submitted to the Board of Directors”, the mattersrelating to “Group Management” in “4. Other important managerial matters” shall be submitted to the Board of
Directors in accordance with the standards contained in Appendix 5.
Appendix 5
Items

Standard(1) Incorporation, dissolution, acquisition and transfer ofsubsidiaries:
1 definition of “incorporation, dissolution, acquisition
and transfer of subsidiaries”(1) “Subsidiary”

A joint stock company of which TMC holds amajority of its voting rights, or other companies
judged to be a subsidiary of TMC pursuant to
Article 3 of the Implementation Rules of the
Corporation Act.

(2) “Directly held subsidiary”

A joint stock company that is a subsidiary of TMC
with a majority of its voting rights held by TMC.

(3) “Wholly owned subsidiary”

A joint stock company of which TMC directly or
indirectly holds all of its voting rights.

(4) “Incorporation”

Used when a subsidiary is established.

(5) “Dissolution”

Used when a subsidiary is dissolved.

(6) “Acquisition”

Used when a subsidiary is obtained through, forexample, acquisition of shares (excluding cases
which fall under incorporation).

(7) “Transfer”

Used when a company loses its status as a
subsidiary of TMC through, for example, TMC’s
sale of shares of the subsidiary (excluding cases
which fall under dissolution).

2 submission standard of “incorporation, dissolution,acquisition and transfer of subsidiaries”(1) Directly held subsidiary

Matters to be resolved(2) Principal subsidiary, not falling under (1)above*1

Matters to be resolved(3) Subsidiary with capital of 2,000,000,000
Yen or more, not falling under (1) or(2) above
Matters to be reported(4) Subsidiary, not falling under (1)-(3) above

Submission not necessary in principle

ItemsStandard(2) Important group managerial matters*2
1 Monetary standard

In case a wholly owned subsidiary conducts Items
1~5 of “Disposition and acquisition of important
property” as defined above, amounts, quantities,
special rules, definitions and explanations of thesame Items shall apply.
However, such submission may be omitted, in thecase where submission of a matter is a formality,
the matter virtually requires no managerial decision(transfer of land/equipment conducted between
wholly owned subsidiaries etc.) and the matter isjudged not to have TMC’s group managerialmateriality.

2 Qualitative standard

If in case of “Disposition and acquisition ofimportant property”*i, “Borrowing of a large
amount of money”*ii, business alliance, joint
venture or reorganization of business, etc.,
conducted by subsidiary of TMC, which may
materially affect TMC’s group management andreputation*iii.

(*1) Examples of “principal subsidiary” are as follows:(i)

Subsidiary engaged in a new business(ii) Subsidiary with a substantial amount of capital (5,000,000,000 Yen or more)(iii) Subsidiary established as a result of a business alliance or joint venture with a dominant competitor(iv) Subsidiary which was insolvent as of the end of the most recent closing date of accounts or that is
anticipated to become insolvent during its current fiscal period (this shall apply only to acquisition)(v) Other managerially important subsidiary(*2) If a matter falls under either “Monetary standard” or “Qualitative standard”, it shall be submitted to theBoard of Directors.
(*i)
In conducting Items 1~7 of “Disposition and acquisition of important property” as defined above,materiality shall be determined with reference to amount, quantity, special rules, definition and explanation
defined in the same Items.
(*ii)
In conducting Items 1~2 of “Borrowing of a large amount of money” as defined above, materiality shall be
determined with reference to amount, quantity and special rules defined in the same Items.
(*iii)
With respect to other items, materiality shall be determined with reference to TMC’s submission standardsof matters to be submitted to the Board of Directors.

Exhibit 1.3(TRANSLATION)REGULATIONS OF
THE AUDIT & SUPERVISORY BOARDOF
TOYOTA MOTOR CORPORATION
Established: September 27, 1994
As last amended on August 29, 2011
Article 1. (Regulations of the Audit & Supervisory Board)
Except as provided for by laws, ordinances or the Articles of Incorporation, the matters relating to the
Audit & Supervisory Board of the Corporation shall be governed by the provisions of these Regulations.
Article 2. (Composition)
The Audit & Supervisory Board shall be composed of all the Audit & Supervisory Board Members.
Article 3. (Person Authorized to Convene the Meeting and Notice of the Meeting)1.

A meeting of the Audit & Supervisory Board shall be convened by the Audit & Supervisory Board Member
who has been determined in advance by a resolution at the meeting of the Audit & Supervisory Board;
provided, however, that the other Audit & Supervisory Board Members shall not be prevented fromconvening the meeting thereof.

2.

In order to convene a meeting of the Audit & Supervisory Board, such Audit & Supervisory Board Member
referred to in the preceding paragraph shall dispatch a notice thereof to each Audit & Supervisory Board
Member at least three (3) days before the date of the meeting, provided that, in the case of urgency, such
period may be shortened.

3.

Notwithstanding the provision of the preceding paragraph, the meeting of the Audit & Supervisory Board
may be held without the convening procedure, if so consented to by all the Audit & Supervisory Board
Members.

Article 4. (Chairmanship and Method of Adopting Resolutions)1.

The chairmanship of the meeting of the Audit & Supervisory Board shall be assumed by the Audit &Supervisory Board Member who has been determined in advance by a resolution at the meeting of the
Audit & Supervisory Board.

2.

Resolutions of the Audit & Supervisory Board shall be adopted at its meeting by a majority of the Audit &Supervisory Board Members.

3.

The following matters may be unanimously resolved at the meeting of the Audit & Supervisory Board
instead of the consent of all the Audit & Supervisory Board Members:(1) Dismissal of the Accounting Auditor(s) in accordance with Article 340 of the Corporation Act;
(2) Consent to a submission, by Director(s), of the agenda at the General Meeting of Shareholders or the
meeting of the Board of Directors concerning the exemption of Director(s) from their liabilities(including any amendment to the Articles of Incorporation for such purpose) in accordance with
Articles 425 to 427 of the Corporation Act; and(3) Consent to the participation of the Corporation in litigations as to the pursuit of liabilities of the
Director(s), etc. in order to support the Director(s) in such litigations in accordance with Paragraph 2 ofArticle 849 of the Corporation Act.

Article 5. (Matters to be Resolved)
1.

The following matters shall be subject to the resolution at the meeting of the Audit & Supervisory Board:(1) Matters so provided for by laws or ordinances;(2) Matters so provided for in the Articles of Incorporation; and(3) Other important matters pertaining to the execution of their duties by the Audit & Supervisory Board
Members.

Article 6. (Matters to be Reported)
1.

The Audit & Supervisory Board Members shall make reports at the meeting of the Audit & Supervisory
Board on the following matters:(1) Matters so provided for by laws or ordinances; and(2) Other matters the Audit & Supervisory Board may deem necessary.

2.

The Directors and/or the Accounting Auditors shall report matters so provided for by laws or ordinances to
the Audit & Supervisory Board.

3.

Notwithstanding the provisions of the preceding two (2) paragraphs, in case that the Audit & Supervisory
Board Member(s), the Director(s) or the Accounting Auditor(s) notifies all the Audit & Supervisory Board
Members of the matter(s), such matter(s) shall not be required to be reported at the meeting of the Audit &Supervisory Board.

Article 7. (Audit Report)
1.

Pursuant to laws or ordinances, the Audit & Supervisory Board shall make an audit report upon deliberation
based on the audit reports prepared by each Audit & Supervisory Board Member.

2.

Any Audit & Supervisory Board Member may make note of his/her opinion in the audit report prepared by
the Audit & Supervisory Board if the details of his/her audit report differ from those of the Audit &Supervisory Board referred to in the preceding paragraph.

Article 8. (Minutes)
1.

Pursuant to laws or ordinances, the minutes shall be prepared each time a meeting of the Audit &Supervisory Board is held.

2.

With regards to the matters not required to be reported at the meeting of the Audit & Supervisory Board
pursuant to Paragraph 3 of Article 6 hereof, such Audit & Supervisory Board Member as separately
determined shall prepare the minutes thereon in accordance with laws or ordinances.

Supplementary Provisions
Article 1. (Effective Date)
These Regulations shall become effective as of August 29, 2011.
Article 2. (Amendment to these Regulations)
Any amendment to these Regulations shall be made by a resolution of the Audit & Supervisory Board.

MATTERS TO BE SUBMITTED TO
THE AUDIT & SUPERVISORY BOARD
Note:

1.

The Act: the Corporation Act
The Enforcement Regulations: the Enforcement Regulations of the Corporation Act
The Accounting Regulations: the Corporation Accounting Regulations

Matters to be resolved (Matters in relation to Article 5 of the Regulations of the Audit & Supervisory Board)(1) Matters provided for in laws or ordinances
Items

Relevant Articles of Applicable Law(1) Principles and execution plan of auditing

Article 390 (2)(c) of the Act(2) Request for reports on the execution of theduties of the Audit & Supervisory Board
Member(s) to the Audit & Supervisory Board

Article 390 (4) of the Act(3) Consent to the following actions taken by
Directors(i)

Submitting proposed resolution concerning
the appointment of an Audit & Supervisory
Board Member or a substitute Audit &Supervisory Board Member to a general
meeting of shareholders

Articles 343 (1) and (3), and 329 (2) of the Act(ii) Submitting proposed resolution concerning
the appointment of an Accounting Auditor
to a general meeting of shareholders

Article 344 (1)(a) of the Act(iii) Making the dismissal of an Accounting
Auditor the agenda of a general meeting ofshareholders

Article 344 (1)(b) of the Act(iv) Making the non-reappointment of an
Accounting Auditor the agenda of a general
meeting of shareholders

Article 344 (1)(c) of the Act(v) Deciding the remuneration, etc. of an
Accounting Auditor or a person who is
temporarily acting as an Accounting
Auditor

Article 399 (1) and (2) of the Act(4) Request for Directors to take the following
actions(i)

Making the appointment of an Audit &Supervisory Board Member or a substitute
Audit & Supervisory Board Member theagenda of a general meeting ofshareholders

Article 343 (2) and (3) of the Act(ii) Submitting proposed resolution concerning
the appointment of an Audit & Supervisory
Board Member or a substitute Audit &Supervisory Board Member to a general
meeting of shareholders

Article 343 (2) and (3) of the Act

ItemsRelevant Articles of Applicable Law(iii) Submitting proposed resolution concerning
the appointment of an Accounting Auditor
to a general meeting of shareholders

Article 344 (2)(a) of the Act(iv) Making the appointment or the dismissal ofan Accounting Auditor the agenda of ageneral meeting of shareholders

Article 344 (2)(b) of the Act(v) Making the non-reappointment of an
Accounting Auditor the agenda of a general
meeting of shareholders

Article 344 (2)(c) of the Act(5) Election of an Audit & Supervisory Board
Member to be in charge of reporting thedismissals of any Accounting Auditors to a
general meeting of shareholders

Article 340 (3) and (4) of the Act(6) Appointment and dismissal of any person who is
to temporarily act as an Accounting Auditor

Article 346 (4), (5) and (6) of the Act(7) Election and dismissal of a full-time Audit &Supervisory Board Member

Article 390 (2)(b) of the Act(8) Election and dismissal of a Specific Audit &Supervisory
Board
Member(Tokuteikansayaku)

Article 132 (5)(b)(i) of the Enforcement
Regulations, Article 130 (5)(b)(i) of the
Accounting Regulations(2) Matters provided for in the Articles of Incorporation
Items(1) Amendment to the Regulations of the Audit &Supervisory Board

Relevant Articles of the Articles of Incorporation

Article 26 (3) of the Articles of Incorporation(3) Other important matters pertaining to execution of the duties of Audit & Supervisory Board Member
Items(1) Election of a Chairman at the meeting of the Audit & Supervisory Board(2) Election of a person authorized to convene the meeting of the Audit & Supervisory Board(3) Election of the Audit & Supervisory Board Member to be in charge of giving prior consent to thechanges of the organization and personnel matters in the Audit & Supervisory Board Office(4) Prior approval of auditing services and non-audit services pursuant to Section 202 of SarbanesOxley Act(5) Election of the Audit & Supervisory Board Member to be in charge of giving approval on theamendment with respect to auditing services and non-audit services pursuant to Section 202 of
Sarbanes-Oxley Act(6) Other significant matters with respect to the execution of the duties of the Audit & Supervisory
Board Member

2.

Matters to be reported (Matters in relation to Article 6 of the Regulations of the Audit & Supervisory Board)(1) Matters provided for by laws or ordinances
Items

Relevant Articles of Applicable Law(1) Matters to be reported by Audit & Supervisory
Board Members• Execution of the duties of Audit &Supervisory Board Members

Article 390 (4) of the Act(2) Matters to be reported by Directors• Any facts which may cause serious damage
to the Corporation

Article 357 (1) and (2) of the Act(3) Matters to be reported by Accounting Auditors• Unjust acts or material facts in violation oflaws, ordinances or the Articles ofIncorporation in relation to the execution of
the duties of Directors

Article 397 (1) and (3) of the Act(2) Other matters deemed necessary by the Audit & Supervisory Board

Exhibit 12.1
CERTIFICATIONSI, Takeshi Uchiyamada, certify that:1.

I have reviewed this annual report on Form 20-F of Toyota Motor Corporation (the “Company”);

2.

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

3.

Based on my knowledge, the financial statements, and other financial information included in thisreport, 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 this 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)) andinternal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the Company and have:(a) Designed such disclosure controls and procedures, or caused such disclosure controls andprocedures 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 thoseentities, particularly during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control overfinancial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented inthis report our conclusions about the effectiveness of the disclosure controls and procedures, as ofthe end of the period covered by this report based on such evaluation; and(d) Disclosed in this 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 isreasonably likely to materially affect, the Company’s internal control over financial reporting; and5.

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the Company’s auditors and the Audit & Supervisory Board(or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the Company’s ability torecord, process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the Company’s internal control over financial reporting.

Date: June 24, 2013
/S/

TAKESHI UCHIYAMADA
Takeshi Uchiyamada
Chairman of the Board
Toyota Motor Corporation

CERTIFICATIONS
I, Nobuyori Kodaira, certify that:1.

I have reviewed this annual report on Form 20-F of Toyota Motor Corporation (the “Company”);

2.

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

3.

Based on my knowledge, the financial statements, and other financial information included in thisreport, 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 this 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)) andinternal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the Company and have:(a) Designed such disclosure controls and procedures, or caused such disclosure controls andprocedures 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 thoseentities, particularly during the period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control overfinancial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles;(c) Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented inthis report our conclusions about the effectiveness of the disclosure controls and procedures, as ofthe end of the period covered by this report based on such evaluation; and(d) Disclosed in this 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 isreasonably likely to materially affect, the Company’s internal control over financial reporting; and5.

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation ofinternal control over financial reporting, to the Company’s auditors and the Audit & Supervisory Board(or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the Company’s ability torecord, process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have asignificant role in the Company’s internal control over financial reporting.

Date: June 24, 2013/S/NOBUYORI KODAIRA

Nobuyori Kodaira
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 the undersigned officers of Toyota Motor Corporation, a Japanese corporation (the “Company”), does
hereby certify that, to such officer’s knowledge:
1. The accompanying Annual Report of the Company on Form 20-F for the period ended March 31, 2013
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of1934; and2. Information contained in the Report fairly presents, in all material respects, the financial condition andresults of operations of the Company.

By:

/s/

TAKESHI UCHIYAMADA

Name:
Title:

Takeshi Uchiyamada
Chairman of the Board

Date: June 24, 2013

By:
Name:
Title:/s/NOBUYORI KODAIRA

Nobuyori Kodaira
Executive Vice President, Member of the Board

Date: June 24, 2013
(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.)

Exhibit 15.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8(No. 333-125977, 333-107322, 333-143955, 333-160081 and 333-175377) of Toyota Motor Corporation of ourreport dated June 24, 2013 relating to the financial statements and the effectiveness of internal control overfinancial reporting, which appears in this Form 20-F.
/s/ PricewaterhouseCoopers Aarata
Nagoya, Japan
June 24, 2013