TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

Financial results

Consolidated vehicle unit sales in Japan and overseas increased by 66 thousand units, or 1.6%, to 4,159 thousand units in FY2023 first half (the first half ended September 30, 2022) compared with FY2022 first half (the first half ended September 30, 2021). Vehicle unit sales in Japan decreased by 76 thousand units, or 8.0%, to 869 thousand units in FY2023 first half compared with FY2022 first half. Overseas vehicle unit sales increased by 142 thousand units, or 4.5%, to 3,290 thousand units in FY2023 first half compared with FY2022 first half.

The results of operations for FY2023 first half were as follows:

 

Sales revenues		¥	17,709.3 billion			(an increase of ¥2,228.0 billion or 14.4% compared with FY2022 first half)
Operating income		¥	1,141.4 billion			(a decrease of ¥606.0 billion or 34.7% compared with FY2022 first half)
Income before income taxes		¥	1,834.2 billion			(a decrease of ¥309.7 billion or 14.4% compared with FY2022 first half)
Net income attributable to Toyota Motor Corporation		¥	1,171.0 billion			(a decrease of ¥353.4 billion or 23.2% compared with FY2022 first half)

The changes in operating income were as follows:

 

Marketing efforts		an increase of ¥130.0 billion
Effects of changes in exchange rates		an increase of ¥565.0 billion
Cost reduction efforts		a decrease of ¥650.0 billion
Increase or decrease in expenses and expense reduction efforts		a decrease of ¥310.0 billion
Other		a decrease of ¥341.0 billion

 

1

 

 

TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

 

Segment operating results

 

(i)	Automotive:

Sales revenues for the automotive operations increased by ¥2,003.9 billion, or 14.2%, to ¥16,129.0 billion in FY2023 first half compared with FY2022 first half. However, operating income decreased by ¥454.7 billion, or 33.5%, to ¥902.9 billion in FY2023 first half compared with FY2022 first half. The decrease in operating income was mainly due to the unfavorable impact of soaring materials prices.

 

(ii)	Financial services:

Sales revenues for the financial services operations increased by ¥209.9 billion, or 18.3%, to ¥1,356.3 billion in FY2023 first half compared with FY2022 first half. However, operating income decreased by ¥165.5 billion, or 45.4%, to ¥198.9 billion in FY2023 first half compared with FY2022 first half. The decrease in operating income was mainly due to the recording of valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States.

 

(iii)

All other:

Sales revenues for all other businesses increased by ¥37.8 billion, or 7.6%, to ¥533.4 billion in FY2023 first half compared with FY2022 first half, and operating income increased by ¥17.2 billion, or 80.3%, to ¥38.6 billion in FY2023 first half compared with FY2022 first half.

 

2

 

 

TOYOTA MOTOR CORPORATION

Analysis of Results of Operations

 

 

Geographic information

 

(i)

Japan:

Sales revenues in Japan increased by ¥397.7 billion, or 5.1%, to ¥8,189.9 billion in FY2023 first half compared with FY2022 first half, and operating income increased by ¥48.8 billion, or 6.0%, to ¥857.9 billion in FY2023 first half compared with FY2022 first half. The increase in operating income was mainly due to the effects of changes in exchange rates.

 

(ii)	North America:

Sales revenues in North America increased by ¥1,193.9 billion, or 21.0%, to ¥6,873.5 billion in FY2023 first half compared with FY2022 first half. However, operating income decreased by ¥494.3 billion to an operating loss of ¥71.0 billion in FY2023 first half compared with FY2022 first half. The decrease in operating income was mainly due to the unfavorable impact of soaring materials prices as well as the recording of valuation losses on interest rate swaps stated at fair value in sales finance subsidiaries in the United States.

 

(iii)

Europe:

Sales revenues in Europe increased by ¥25.1 billion, or 1.3%, to ¥1,912.3 billion in FY2023 first half compared with FY2022 first half. However, operating income decreased by ¥99.7 billion to an operating loss of ¥45.9 billion in FY2023 first half compared with FY2022 first half. The decrease in operating income was mainly due to the effect of recording a loss of ¥96.9 billion from terminating vehicle production in Russia.

 

(iv)

Asia:

Sales revenues in Asia increased by ¥1,005.6 billion, or 34.2%, to ¥3,949.0 billion in FY2023 first half compared with FY2022 first half, and operating income increased by ¥67.2 billion, or 20.7%, to ¥391.6 billion in FY2023 first half compared with FY2022 first half. The increase in operating income was mainly due to increases in both production volume and vehicle unit sales, as well as the effects of changes in exchange rates.

 

(v)	Other (Central and South America, Oceania, Africa and the Middle East):

Sales revenues in other regions increased by ¥343.7 billion, or 24.7%, to ¥1,736.3 billion in FY2023 first half compared with FY2022 first half. However, operating income decreased by ¥38.2 billion, or 25.8%, to ¥109.9 billion in FY2023 first half compared with FY2022 first half. The decrease in operating income was mainly due to the unfavorable impact of soaring materials prices.

 

3

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

						Yen in millions
		Notes				March 31, 2022				September 30, 2022
Assets
Current assets
Cash and cash equivalents							6,113,655				6,980,169
Trade accounts and other receivables							3,142,832				3,202,115
Receivables related to financial services							7,181,327				8,194,188
Other financial assets							2,507,248				2,032,204
Inventories							3,821,356				4,266,455
Income tax receivable							163,925				132,921
Other current assets							791,947				1,000,210
Total current assets							23,722,290				25,808,263
Non-current assets
Investments accounted for using the equity method							4,837,895				4,988,214
Receivables related to financial services							14,583,130				16,893,138
Other financial assets							9,517,267				10,842,287
Property, plant and equipment
Land							1,361,791				1,396,547
Buildings							5,284,620				5,555,308
Machinery and equipment							13,982,362				15,114,529
Vehicles and equipment on operating leases							6,781,229				7,375,442
Construction in progress							565,528				638,273
Total property, plant and equipment, at cost							27,975,530				30,080,100
Less - Accumulated depreciation and impairment losses							(15,648,890	)			(16,935,984	)
Total property, plant and equipment, net							12,326,640				13,144,115
Right of use assets							448,412				487,470
Intangible assets							1,191,966				1,209,032
Deferred tax assets							342,202				388,053
Other non-current assets							718,968				723,449
Total non-current assets							43,966,482				48,675,760
Total assets							67,688,771				74,484,023

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

4

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Financial Position

 

 

						Yen in millions
		Notes				March 31, 2022				September 30, 2022
Liabilities
Current liabilities
Trade accounts and other payables							4,292,092				4,629,172
Short-term and current portion of long-term debt							11,187,839				12,530,744
Accrued expenses							1,520,446				1,584,585
Other financial liabilities							1,046,050				1,523,736
Income taxes payable							826,815				451,837
Liabilities for quality assurance							1,555,711				1,719,378
Other current liabilities							1,413,208				1,837,982
Total current liabilities							21,842,161				24,277,434
Non-current liabilities
Long-term debt							15,308,519				17,266,981
Other financial liabilities							461,583				846,384
Retirement benefit liabilities							1,022,749				1,079,428
Deferred tax liabilities							1,354,794				1,467,847
Other non-current liabilities							544,145				585,602
Total non-current liabilities							18,691,790				21,246,242
Total liabilities							40,533,951				45,523,676
Shareholders’ equity
Common stock							397,050				397,050
Additional paid-in capital							498,575				499,206
Retained earnings							26,453,126				27,304,994
Other components of equity							2,203,254				3,337,011
Treasury stock							(3,306,037	)			(3,501,009	)
Total Toyota Motor Corporation shareholders’ equity							26,245,969				28,037,253
Non-controlling interests							908,851				923,094
Total shareholders’ equity							27,154,820				28,960,346
Total liabilities and shareholders’ equity							67,688,771				74,484,023

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

5

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

						Yen in millions
		Notes				For the first half ended September 30, 2021				For the first half ended September 30, 2022
Sales revenues
Sales of products			VIII				14,344,924				16,363,930
Financial services			VIII				1,136,375				1,345,419
Total sales revenues			VIII				15,481,299				17,709,348
Costs and expenses
Cost of products sold							11,842,915				14,049,248
Cost of financial services							549,792				845,222
Selling, general and administrative							1,341,128				1,673,434
Total costs and expenses							13,733,834				16,567,905
Operating income							1,747,465				1,141,444
Share of profit (loss) of investments accounted for using the equity method							261,042				304,623
Other finance income							115,872				197,354
Other finance costs							(16,359	)			(70,350	)
Foreign exchange gain (loss), net							43,395				291,455
Other income (loss), net							(7,372	)			(30,250	)
Income before income taxes							2,144,045				1,834,276
Income tax expense							578,989				614,720
Net income							1,565,056				1,219,556
Net income attributable to
Toyota Motor Corporation							1,524,484				1,171,084
Non-controlling interests							40,572				48,472
Net income							1,565,056				1,219,556
						Yen
Earnings per share attributable to Toyota Motor Corporation
Basic			IX				109.28				85.42
Diluted			IX				109.28				—

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

6

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

						Yen in millions
		Notes				For the first half ended September 30, 2021				For the first half ended September 30, 2022
Net income							1,565,056				1,219,556
Other comprehensive income, net of tax
Items that will not be reclassified to profit (loss)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income							80,203				26,178
Remeasurements of defined benefit plans							(8,708	)			(8,696	)
Share of other comprehensive income of equity method investees							81,170				(80,105	)
Total of items that will not be reclassified to profit (loss)							152,665				(62,622	)
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations							68,138				1,243,648
Net changes in revaluation of financial assets measured at fair value through other comprehensive income							(2,143	)			(183,228	)
Share of other comprehensive income of equity method investees							86,309				237,212
Total of items that may be reclassified subsequently to profit (loss)							152,304				1,297,631
Total other comprehensive income, net of tax							304,968				1,235,009
Comprehensive income							1,870,024				2,454,565
Comprehensive income for the period attributable to
Toyota Motor Corporation							1,832,521				2,371,417
Non-controlling interests							37,504				83,147
Comprehensive income							1,870,024				2,454,565

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

7

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Income

 

						Yen in millions
		Notes				For the second quarter ended September 30, 2021				For the second quarter ended September 30, 2022
Sales revenues
Sales of products			VIII				6,982,507				8,519,475
Financial services			VIII				563,234				698,757
Total sales revenues			VIII				7,545,741				9,218,232
Costs and expenses
Cost of products sold							5,828,074				7,349,121
Cost of financial services							278,714				445,382
Selling, general and administrative							688,978				860,940
Total costs and expenses							6,795,766				8,655,443
Operating income							749,976				562,789
Share of profit (loss) of investments accounted for using the equity method							99,559				133,554
Other finance income							43,808				71,561
Other finance costs							(8,875	)			(50,988	)
Foreign exchange gain (loss), net							17,475				108,196
Other income (loss), net							(15,117	)			(12,583	)
Income before income taxes							886,825				812,528
Income tax expense							248,310				351,225
Net income							638,515				461,303
Net income attributable to
Toyota Motor Corporation							626,652				434,264
Non-controlling interests							11,864				27,040
Net income							638,515				461,303
						Yen
Earnings per share attributable to Toyota Motor Corporation
Basic			IX				45.01				31.73
Diluted			IX				—				—

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

8

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Income and

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

 

Unaudited Condensed Quarterly Consolidated Statement of Comprehensive Income

 

						Yen in millions
		Notes				For the second quarter ended September 30, 2021				For the second quarter ended September 30, 2022
Net income							638,515				461,303
Other comprehensive income, net of tax
Items that will not be reclassified to profit (loss)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income							78,638				(15,435	)
Remeasurements of defined benefit plans							(4,347	)			(5,168	)
Share of other comprehensive income of equity method investees							19,475				(20,100	)
Total of items that will not be reclassified to profit (loss)							93,765				(40,703	)
Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations							(10,860	)			325,505
Net changes in revaluation of financial assets measured at fair value through other comprehensive income							(13,367	)			(95,968	)
Share of other comprehensive income of equity method investees							16,108				116,117
Total of items that may be reclassified subsequently to profit (loss)							(8,119	)			345,653
Total other comprehensive income, net of tax							85,647				304,951
Comprehensive income							724,162				766,254
Comprehensive income for the period attributable to
Toyota Motor Corporation							715,127				736,238
Non-controlling interests							9,035				30,016
Comprehensive income							724,162				766,254

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

9

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Changes in Equity

 

 

For the first half ended September 30, 2021

 

						Yen in millions
		Notes				Common stock				Additional paid-in capital				Retained earnings				Other components of equity				Treasury stock				Toyota Motor Corporation shareholders’ equity				Non-controlling interests				Total shareholders’ equity
Balances at April 1, 2021							397,050				497,275				24,104,176				1,307,726				(2,901,680	)			23,404,547				883,782				24,288,329
Comprehensive income
Net income							—				—				1,524,484				—				—				1,524,484				40,572				1,565,056
Other comprehensive income, net of tax							—				—				—				308,037				—				308,037				(3,068	)			304,968
Total comprehensive income							—				—				1,524,484				308,037				—				1,832,521				37,504				1,870,024
Transactions with owners and other
Dividends paid			VII				—				—				(377,453	)			—				—				(377,453	)			(43,774	)			(421,227	)
Repurchase of treasury stock							—				—				—				—				(250,093	)			(250,093	)			—				(250,093	)
Reissuance of treasury stock							—				227				—				—				362				588				—				588
Equity transactions and other							—				313				—				—				—				313				4,477				4,791
Total transactions with owners and other							—				540				(377,453	)			—				(249,731	)			(626,644	)			(39,296	)			(665,941	)
Reclassification to retained earnings							—				—				27,266				(27,266	)			—				—				—				—
Balances at September 30, 2021							397,050				497,815				25,278,473				1,588,497				(3,151,411	)			24,610,424				881,989				25,492,413
For the first half ended September 30, 2022
						Yen in millions
		Notes				Common stock				Additional paid-in capital				Retained earnings				Other components of equity				Treasury stock				Toyota Motor Corporation shareholders’ equity				Non-controlling interests				Total shareholders’ equity
Balances at April 1, 2022							397,050				498,575				26,453,126				2,203,254				(3,306,037	)			26,245,969				908,851				27,154,820
Comprehensive income
Net income							—				—				1,171,084				—				—				1,171,084				48,472				1,219,556
Other comprehensive income, net of tax							—				—				—				1,200,334				—				1,200,334				34,675				1,235,009
Total comprehensive income							—				—				1,171,084				1,200,334				—				2,371,417				83,147				2,454,565
Transactions with owners and other
Dividends paid			VII				—				—				(385,792	)			—				—				(385,792	)			(69,506	)			(455,299	)
Repurchase of treasury stock							—				—				—				—				(195,545	)			(195,545	)			—				(195,545	)
Reissuance of treasury stock							—				334				—				—				573				907				—				907
Equity transactions and other							—				297				—				—				—				297				602				899
Total transactions with owners and other							—				631				(385,792	)			—				(194,972	)			(580,134	)			(68,905	)			(649,038	)
Reclassification to retained earnings							—				—				66,577				(66,577	)			—				—				—				—
Balances at September 30, 2022							397,050				499,206				27,304,994				3,337,011				(3,501,009	)			28,037,253				923,094				28,960,346

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

10

 

 

TOYOTA MOTOR CORPORATION

Unaudited Condensed Quarterly Consolidated Statement of Cash Flows

 

 

						Yen in millions
		Notes				For the first half ended September 30, 2021				For the first half ended September 30, 2022
Cash flows from operating activities
Net income							1,565,056				1,219,556
Depreciation and amortization							871,404				1,016,123
Interest income and interest costs related to financial services, net							(164,297	)			(355,403	)
Share of profit (loss) of investments accounted for using the equity method							(261,042	)			(304,623	)
Income tax expense							578,989				614,720
Changes in operating assets and liabilities, and other							(736,287	)			(398,273	)
Interest received							394,880				677,731
Dividends received							254,503				355,592
Interest paid							(193,238	)			(229,205	)
Income taxes paid, net of refunds							(437,188	)			(937,422	)
Net cash provided by (used in) operating activities							1,872,780				1,658,797
Cash flows from investing activities
Additions to fixed assets excluding equipment leased to others							(573,651	)			(733,675	)
Additions to equipment leased to others							(1,384,947	)			(930,723	)
Proceeds from sales of fixed assets excluding equipment leased to others							18,031				21,016
Proceeds from sales of equipment leased to others							802,928				876,929
Additions to intangible assets							(168,286	)			(160,772	)
Additions to public and corporate bonds and stocks							(1,313,819	)			(659,075	)
Proceeds from sales of public and corporate bonds and stocks and upon maturity of public and corporate bonds							1,213,887				744,952
Other, net			X				1,189,623				58,857
Net cash provided by (used in) investing activities							(216,234	)			(782,490	)
Cash flows from financing activities
Increase (decrease) in short-term debt							(245,116	)			121,280
Proceeds from long-term debt							4,268,674				4,574,105
Payments of long-term debt							(5,171,986	)			(4,444,965	)
Dividends paid to Toyota Motor Corporation common shareholders			VII				(377,453	)			(385,792	)
Dividends paid to non-controlling interests							(43,774	)			(69,506	)
Reissuance (repurchase) of treasury stock							(249,818	)			(195,545	)
Net cash provided by (used in) financing activities							(1,819,473	)			(400,424	)
Effect of exchange rate changes on cash and cash equivalents							16,904				390,632
Net increase (decrease) in cash and cash equivalents							(146,023	)			866,514
Cash and cash equivalents at beginning of period							5,100,857				6,113,655
Cash and cash equivalents at end of period							4,954,834				6,980,169

The accompanying notes are an integral part of these condensed quarterly consolidated financial statements.

 

11

 

 

TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

I.	Reporting entity

Toyota Motor Corporation (“TMC”) is a limited liability, joint-stock company located in Japan, and TMC’s principal executive offices are registered in Toyota City, Aichi Prefecture. For the first half and second quarter ended September 30, 2022, the condensed quarterly consolidated financial statements of the group consist of TMC, its consolidated subsidiaries (collectively, “Toyota”) and their interests in associates and joint ventures.

Toyota and its associates are primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world. In addition, Toyota and its associates provide financing, vehicle leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.

 

II.	Basis of preparation

1. Compliance with international financial reporting standards

Toyota’s condensed quarterly consolidated financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed quarterly consolidated financial statements should be read in conjunction with Toyota’s consolidated financial statements for the fiscal year ended March 31, 2022, since the condensed quarterly consolidated financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

The condensed quarterly consolidated financial statements were approved on November 1, 2022 by the Board of Directors.

2. Basis of measurement

Toyota’s condensed quarterly consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value and assets and liabilities associated with defined benefit plans.

3. Functional currency and presentation currency

The condensed quarterly consolidated financial statements are presented in Japanese yen, which is the functional currency of TMC. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated. Amounts may not sum to totals due to rounding.

 

III.	Significant accounting policies

Toyota’s condensed quarterly consolidated financial statements are prepared based on the same accounting policies as those applied and described in the consolidated financial statements for the fiscal year ended March 31, 2022.

 

12

 

 

TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

IV.	Significant accounting judgments and estimates

The preparation of the condensed quarterly consolidated financial statements in conformity with IFRS requires management to make judgments, estimates, and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates were revised and in any future periods affected.

The condensed quarterly consolidated financial statements are prepared based on generally the same judgments and estimations as those applied and described in Toyota’s consolidated financial statements for the fiscal year ended March 31, 2022.

 

13

 

 

TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

V.	Segment information

1. Outline of reporting segments

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 in deciding how to allocate resources and in assessing performance.

The major portions of Toyota’s operations on a worldwide basis are derived from the Automotive and Financial services business segments. The Automotive segment designs, manufactures and distributes sedans, minivans, compact cars, SUVs, trucks and related parts and accessories. The Financial services segment consists primarily of financing and vehicle leasing operations to assist in the merchandising of Toyota’s products as well as other products. The All other segment includes telecommunications and other businesses.

2. Segment operating results

For the first half ended September 30, 2021:

 

		Yen in millions
		Automotive				Financial services				All other				Elimination				Consolidated
Sales revenues
Revenues from external customers			14,081,847				1,136,375				263,077				—				15,481,299
Inter-segment revenues and transfers			43,260				10,102				232,525				(285,886	)			—
Total			14,125,107				1,146,476				495,602				(285,886	)			15,481,299
Operating expenses			12,767,330				782,012				474,136				(289,644	)			13,733,834
Operating income			1,357,777				364,464				21,466				3,757				1,747,465
For the first half ended September 30, 2022:
		Yen in millions
		Automotive				Financial services				All other				Elimination				Consolidated
Sales revenues
Revenues from external customers			16,109,561				1,345,419				254,369				—				17,709,348
Inter-segment revenues and transfers			19,522				10,970				279,069				(309,562	)			—
Total			16,129,083				1,356,388				533,439				(309,562	)			17,709,348
Operating expenses			15,226,094				1,157,451				494,744				(310,384	)			16,567,905
Operating income			902,989				198,937				38,695				822				1,141,444

 

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TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

For the second quarter ended September 30, 2021:

 

		Yen in millions
		Automotive				Financial services				All other				Elimination				Consolidated
Sales revenues
Revenues from external customers			6,848,524				563,234				133,983				—				7,545,741
Inter-segment revenues and transfers			35,338				4,390				120,393				(160,122	)			—
Total			6,883,862				567,624				254,377				(160,122	)			7,545,741
Operating expenses			6,306,180				399,236				254,554				(164,204	)			6,795,766
Operating income (loss)			577,682				168,388				(177	)			4,083				749,976
For the second quarter ended September 30, 2022:
		Yen in millions
		Automotive				Financial services				All other				Elimination				Consolidated
Sales revenues
Revenues from external customers			8,392,069				698,757				127,406				—				9,218,232
Inter-segment revenues and transfers			16,910				5,507				143,672				(166,089	)			—
Total			8,408,979				704,264				271,078				(166,089	)			9,218,232
Operating expenses			7,955,249				619,840				250,760				(170,406	)			8,655,443
Operating income			453,731				84,424				20,318				4,317				562,789

Accounting policies applied by each segment are in conformity with those of Toyota’s condensed quarterly consolidated financial statements. Transfers between industry segments are made in accordance with terms and conditions in the ordinary course of business.

 

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TOYOTA MOTOR CORPORATION

Notes to Unaudited Condensed Quarterly Consolidated Financial Statements

 

 

3. Geographic information

For the first half ended September 30, 2021:

 

		Yen in millions
		Japan				North America				Europe				Asia				Other				Elimination				Consolidated
Sales revenues
Revenues from external customers			4,147,340				5,555,305				1,805,446				2,640,633				1,332,574				—				15,481,299
Inter-segment revenues and transfers			3,644,899				124,213				81,796				302,750				60,000				(4,213,658	)			—
Total			7,792,240				5,679,518				1,887,242				2,943,382				1,392,574				(4,213,658	)			15,481,299
Operating expenses			6,983,149				5,256,221				1,833,517				2,618,987				1,244,417				(4,202,456	)			13,733,834
Operating income			809,091				423,298				53,725				324,396				148,157				(11,202	)			1,747,465
For the first half ended September 30, 2022:
		Yen in millions
		Japan				North America				Europe				Asia				Other				Elimination				Consolidated
Sales revenues
Revenues from external customers			3,973,602				6,719,009				1,819,181				3,498,495				1,699,061				—				17,709,348
Inter-segment revenues and transfers			4,216,356				154,498				93,204				450,520				37,254				(4,951,832	)			—
Total			8,189,958				6,873,507				1,912,385				3,949,015				1,736,315				(4,951,832	)			17,709,348
Operating expenses			7,332,030				6,944,539				1,958,366				3,557,368				1,626,398				(4,850,796	)			16,567,905
Operating income (loss)			857,927				(71,031	)			(45,981	)			391,647				109,917				(101,036	)			1,141,444

 

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