Equity and other equity items

12 Months Ended

Mar. 31, 2025

25. Equity and other equity items

(1) Equity management

Toyota will efficiently invest in maintenance and replacement of conventional manufacturing facilities and the introduction of new products, and will focus on capital investment and research and development in areas contributing to strengthening competitiveness and future growth. Through these activities, Toyota aims to improve corporate value and keep sustainable growth for realization of a new mobility society. Generally, Toyota Motor Corporation shareholder’s equity covers such activities, with additional short-term and long-term debt, if necessary.

The amount of Toyota Motor Corporation shareholder’s equity and short-term and long-term debt are as follows:


	Yen in millions
	March 31,
	2024		2025
Toyota Motor Corporation Shareholders’ equity		34,220,991		35,924,826
Short-term and long-term debt		36,561,780		38,792,879

(2) Number of shares

As of March 31, 2023, 2024 and 2025, the total number of authorized shares of TMC’s common stock was 50,000,000,000.

The changes in the shares of common stock issued are as follows:


	For the years ended March 31,
	2023		2024		2025
Common stock issued:
Balance at beginning of year		16,314,987,460		16,314,987,460		16,314,987,460
Changes during the year		—		—		(520,000,000	)

Balance at end of year		16,314,987,460		16,314,987,460		15,794,987,460

The common stock issued by TMC is a

no-parity

stock without any limitations on the content of the rights, and the issued stock is fully paid.

The total number of treasury stock was 2,749,807,731, 2,840,815,433 and 2,746,057,686 as of March 31, 2023, 2024 and 2025, respectively.

(3) Capital surplus and retained earnings

Capital surplus consists of capital reserves and other capital surplus. Retained earnings consist of retained earnings reserve and other retained earnings. The Companies Act of Japan provides that an amount equal to 10% of distributions from surplus paid by TMC 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. The Companies Act provides that the retained earnings reserve of TMC 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 TMC available for dividend payments to shareholders were ¥16,723,895 million and ¥18,333,862 million as of March 31, 2024 and 2025, respectively. In accordance with customary practice in Japan, the distributions from surplus are not accrued in the financial statements for the corresponding period, but are recorded in the subsequent accounting period after shareholders’ approval has been obtained.

Retained earnings at March 31, 2025 includes

¥3,751,118 million relating to equity in undistributed earnings of associates and joint ventures.

(4) Treasury stock

The repurchase, reissuance and retirement of treasury stock are as follows:

For the year ended March 31, 2023

Repurchase of treasury stock

1) Repurchasing of treasury stock resolved at the Board of Directors meeting held on March 23, 2022

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		44,114,900 shares
Total purchase price for repurchase of shares		¥95,392 million

2) Repurchasing of treasury stock resolved at the Board of Directors meeting held on May 11, 2022 and November 1, 2022

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		169,429,000 shares
Total purchase price for repurchase of shares		¥335,685 million

For the year ended March 31, 2024

Repurchase of treasury stock

1) Repurchasing of treasury stock resolved at the Board of Directors meeting held on May 10, 2023

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		64,590,700 shares
Total purchase price for repurchase of shares		¥150,000 million

2) Repurchasing of treasury stock resolved at the Board of Directors meeting held on November 1, 2023

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		26,880,600 shares
Total purchase price for repurchase of shares		¥81,037 million

For the year ended March 31, 2025

Repurchase of treasury stock

1) Repurchasing of treasury stock resolved at the Board of Directors meeting held on November 1, 2023

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		5,216,600 shares
Total purchase price for repurchase of shares		¥18,962 million

2) Repurchasing of treasury stock resolved at the Board of Directors meeting held on May 8, 2024 and September 24, 2024

Reason for repurchasing treasury stock -

The repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.

Details of matters relating to repurchase -


Number of common shares repurchased		420,633,175 shares
Total purchase price for repurchase of shares		¥1,160,051 million

Retirement of treasury stock

Retiring of treasury stock resolved at the Board of Directors meeting held on May 8, 2024

Reason for retiring treasury stock -

The retirement was made to relieve concerns regarding the dilution of TMC’s share value due to disposition of treasury stock in the future.

Details of matters relating to retirement -


Number of common shares retired		520,000,000 shares

(5) Other components of equity

Other components of equity are as follows:


	Yen in millions
	Net changes in revaluation of financial assets measured at fair value through other comprehensive income			Remeasurements of defined benefit plans			Exchange differences on translating foreign operations			Total

Balance at April 1, 2022		1,134,671			—			1,068,583			2,203,254

Other comprehensive income, net of tax		(105,435	)		82,020			851,129			827,713
Reclassification to retained earnings		(94,233	)		(72,598	)		—			(166,831	)
Other comprehensive income for the period attributable to non-controlling interests		(1,300	)		(9,422	)		(17,219	)		(27,941	)

Balance at March 31, 2023		933,702			—			1,902,493			2,836,195

Other comprehensive income, net of tax		716,048			56,434			1,344,621			2,117,103
Reclassification to retained earnings		(341,709	)		(45,625	)		—			(387,334	)
Other comprehensive income for the period attributable to non-controlling interests		(7,186	)		(10,809	)		(44,213	)		(62,208	)

Balance at March 31, 2024		1,300,855			—			3,202,901			4,503,756

Other comprehensive income, net of tax		44,731			(85,084	)		(705,678	)		(746,031	)
Reclassification to retained earnings		(234,994	)		94,635			—			(140,359	)
Other comprehensive income for the period attributable to non-controlling interests		(1,153	)		(9,551	)		3,470			(7,233	)

Balance at March 31, 2025		1,109,439			—			2,500,693			3,610,133

(6) Other comprehensive income

The breakdown of other comprehensive income and the corresponding tax benefits (including

non-controlling

interests) are as follows:


	Yen in millions
	For the year ended March 31, 2023
	Before tax			Tax effect			After 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
Amount incurred during the year		144,160			(44,936	)		99,223

Net changes		144,160			(44,936	)		99,223

Remeasurements of defined benefit plans
Amount incurred during the year		112,151			(46,998	)		65,153

Net changes		112,151			(46,998	)		65,153

Shares of other comprehensive income of equity method investees
Amount incurred during the year		(77,148	)		—			(77,148	)

Net changes		(77,148	)		—			(77,148	)

Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations
Amount incurred during the year		676,042			—			676,042
Reclassification to profit (loss)		—			—			—

Net changes		676,042			—			676,042

Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Amount incurred during the year		(165,477	)		49,738			(115,738	)
Reclassification to profit (loss)		—			—			—

Net changes		(165,477	)		49,738			(115,738	)

Shares of other comprehensive income of equity method investees
Amount incurred during the year		180,181			—			180,181
Reclassification to profit (loss)		—			—			—

Net changes		180,181			—			180,181

Total other comprehensive income		869,909			(42,196	)		827,713


	Yen in millions
	For the year ended March 31, 2024
	Before tax			Tax effect			After 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
Amount incurred during the year		806,365			(248,826	)		557,539

Net changes		806,365			(248,826	)		557,539

Remeasurements of defined benefit plans
Amount incurred during the year		57,616			(11,289	)		46,328

Net changes		57,616			(11,289	)		46,328

Shares of other comprehensive income of equity method investees
Amount incurred during the year		156,118			—			156,118

Net changes		156,118			—			156,118

Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations
Amount incurred during the year		1,178,875			—			1,178,875
Reclassification to profit (loss)		—			—			—

Net changes		1,178,875			—			1,178,875

Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Amount incurred during the year		33,256			(10,459	)		22,797
Reclassification to profit (loss)		(15,267	)		4,717			(10,550	)

Net changes		17,989			(5,742	)		12,247

Shares of other comprehensive income of equity method investees
Amount incurred during the year		182,576			—			182,576
Reclassification to profit (loss)		(16,579	)		—			(16,579	)

Net changes		165,996			—			165,996

Total other comprehensive income		2,382,959			(265,856	)		2,117,103


	Yen in millions
	For the year ended March 31, 2025
	Before tax			Tax effect			After 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
Amount incurred during the year . . . . . . . . . . . . . . . .		153,164			(51,035	)		102,129

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		153,164			(51,035	)		102,129

Remeasurements of defined benefit plans
Amount incurred during the year . . . . . . . . . . . . . . . .		(154,517	)		44,919			(109,598	)

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		(154,517	)		44,919			(109,598	)

Shares of other comprehensive income of equity method investees
Amount incurred during the year . . . . . . . . . . . . . . . .		(63,213	)		—			(63,213	)

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		(63,213	)		—			(63,213	)

Items that may be reclassified subsequently to profit (loss)
Exchange differences on translating foreign operations
Amount incurred during the year . . . . . . . . . . . . . . . .		(40,479	)		—			(40,479	)
Reclassification to profit (loss) . . . . . . . . . . . . . . . . . .		(787,369	)		—			(787,369	)

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		(827,848	)		—			(827,848	)

Net changes in revaluation of financial assets measured at fair value through other comprehensive income
Amount incurred during the year . . . . . . . . . . . . . . . .		40,503			(9,485	)		31,018
Reclassification to profit (loss) . . . . . . . . . . . . . . . . . .		189			(49	)		140

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		40,693			(9,534	)		31,158

Shares of other comprehensive income of equity method investees
Amount incurred during the year . . . . . . . . . . . . . . . .		127,022			—			127,022
Reclassification to profit (loss) . . . . . . . . . . . . . . . . . .		(5,682	)		—			(5,682	)

Net changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		121,340			—			121,340

Total other comprehensive income . . . . . . . . . . . . . . . . . . .		(730,381	)		(15,650)			(746,031	)

The gain on the disposal of certain consolidated subsidiaries is reclassified from “Exchange differences on translating foreign operations” to “Foreign exchange gain (loss), net” in the consolidated statement of income for fiscal 2025.

(7) Dividends

The paid dividend amounts are as follows:

For the year ended March 31, 2023

Resolution

Type of shares

Total amount
of dividends

(yen in millions)

Dividend per share

(yen)

Record date

Effective date

The Board of Directors Meeting on May 11, 2022

Common shares

385,792

28.00

March 31, 2022

May 27, 2022

The Board of Directors Meeting on November 1, 2022

Common shares

342,187

25.00

September 30, 2022

November 22, 2022

For the year ended March 31, 2024

Resolution

Type of shares

Total amount
of dividends

(yen in millions)

Dividend per share

(yen)

Record date

Effective date

The Board of Directors Meeting on May 10, 2023

Common shares

474,781

35.00

March 31, 2023

May 26, 2023

The Board of Directors Meeting on November 1, 2023

Common shares

405,416

30.00

September 30, 2023

November 22, 2023

For the year ended March 31, 2025

Resolution

Type of shares

Total amount
of dividends

(yen in millions)

Dividend per share

(yen)

Record date

Effective date

The Board of Directors Meeting on May 8, 2024

Common shares

606,338

45.00

March 31, 2024

May 24, 2024

The Board of Directors Meeting on November 6, 2024

Common shares

525,991

40.00

September 30, 2024

November 26, 2024

Dividends of which record date falls within the year ended March 31, and effective date is after the year ended March 31 are as follows:

For the year ended March 31, 2025

Resolution

Type of shares

Total amount
of dividends

(yen in millions)

Dividend per share

(yen)

Record date

Effective date

The Board of Directors Meeting on May 8, 2025

Common shares

652,446

50.00

March 31, 2025

May 26, 2025