Toyota Motor Corp. (TM) | Equity Method Investments

Selected Financial Data

Toyota Motor Corp.'s selected financial data

USD $ in millions, translated from JPY ￥

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Equity in earnings of affiliated companies	2,405	2,586	488	435	2,696	1,775
Affiliated companies	23,373	21,976	20,199	18,593	20,946	17,435

ROA (equity method investments only)¹	10.29%	11.77%	2.42%	2.34%	12.87%	10.18%

Source: Based on data from Toyota Motor Corp. Annual Reports

2012 Calculations

¹ ROA (equity method investments only) = 100 × Equity in earnings of affiliated companies ÷ Affiliated companies
= 100 × 2,405 ÷ 23,373 = 10.29%

Item	Description	The company
Equity in earnings of affiliated companies	This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.	Toyota Motor Corp.'s equity in earnings of affiliated companies increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
Affiliated companies	This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment losses recognized.	Toyota Motor Corp.'s affiliated companies increased from 2010 to 2011 and from 2011 to 2012.
ROA (equity method investments only)	A profitability ratio calculated as equity in earnings of affiliated companies divided by affiliated companies.	Toyota Motor Corp.'s ROA of equity method investments improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

Summarized Financial Information

Summarized financial information for Toyota Motor Corp.'s affiliates, subsidiaries, associates, and joint ventures

USD $ in millions, translated from JPY ￥

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Current assets	110,876	95,896	86,356	65,160	80,520	62,305
Noncurrent assets	84,125	81,965	99,960	96,090	106,697	96,170
Total assets	195,001	177,860	186,316	161,250	187,217	158,475
Current liabilities	71,146	61,834	54,344	42,929	60,009	48,735
Long-term liabilities and noncontrolling interests	49,058	44,822	64,285	58,436	56,093	50,367
Total liabilities	120,204	106,656	118,629	101,365	116,102	99,101
Affiliated companies accounted for by the equity method shareholders’ equity	74,797	71,205	67,687	59,885	71,115	59,373
Total liabilities and shareholders’ equity	195,001	177,860	186,316	161,250	187,217	158,475
Net revenues	270,243	263,068	221,406	235,671	264,616	197,952
Gross profit	27,955	28,174	24,389	20,713	30,755	22,384
Net income attributable to affiliated companies accounted for by the equity method	6,752	7,718	3,407	141	8,689	5,945

Source: Based on data from Toyota Motor Corp. Annual Reports

Item	Description	The company
Affiliated companies accounted for by the equity method shareholders’ equity	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets, liabilities, and results of operations of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may include total equity or capital (as applicable).	Affiliated companies accounted for by the equity method shareholders’ equity of Toyota Motor Corp.'s affiliates, subsidiaries, associates, and joint ventures increased from 2010 to 2011 and from 2011 to 2012.
Net income attributable to affiliated companies accounted for by the equity method	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may, at a minimum, include net income or loss.	Net income attributable to affiliated companies accounted for by the equity method of Toyota Motor Corp.'s affiliates, subsidiaries, associates, and joint ventures increased from 2010 to 2011 but then slightly declined from 2011 to 2012.

Adjustments to Financial Data: Proportionate Consolidation

Recognition of Toyota Motor Corp.'s proportionate share of affiliates, subsidiaries, associates, and joint ventures assets and liabilities instead of net equity.

Toyota Motor Corp., adjustments to financial data

USD $ in millions, translated from JPY ￥

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Weighted average percentage interest in affiliates	31.25%	30.86%	29.84%	31.05%	29.45%	29.36%
Adjustment to Current Assets
Current assets (as reported)	149,911	142,270	140,516	115,025	120,633	99,823
Add: Current assets of affiliates (adjustment)	34,646	29,597	25,770	20,231	23,716	18,296
Current assets (adjusted)	184,557	171,867	166,286	135,256	144,349	118,119
Adjustment to Total Assets
Total assets (as reported)	372,928	358,607	326,196	295,857	323,968	275,941
Less: Affiliated companies (adjustment)	23,373	21,976	20,199	18,593	20,946	17,435
Add: Total assets of affiliates (adjustment)	60,934	54,894	55,600	50,064	55,142	46,536
Total assets (adjusted)	410,489	391,525	361,597	327,329	358,164	305,041
Adjustment to Current Liabilities
Current liabilities (as reported)	143,346	129,777	114,856	107,801	119,181	99,680
Add: Current liabilities of affiliates (adjustment)	22,232	19,084	16,217	13,329	17,675	14,311
Current liabilities (adjusted)	165,577	148,861	131,073	121,130	136,856	113,990
Adjustment to Total Liabilities
Total liabilities (as reported)	238,283	227,278	208,715	187,940	198,943	170,355
Add: Total liabilities of affiliates (adjustment)	37,561	32,918	35,401	31,472	34,196	29,101
Total liabilities (adjusted)	275,844	260,196	244,116	219,411	233,139	199,456
Adjustment to Net Revenues
Net revenues (as reported)	226,106	228,427	203,686	208,995	262,394	202,864
Add: Net revenues of affiliates (adjustment)	84,445	81,192	66,071	73,170	77,938	58,128
Net revenues (adjusted)	310,551	309,619	269,758	282,165	340,332	260,992

Adjusted Ratios: Proportionate Consolidation (Summary)

Toyota Motor Corp., adjusted ratios

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Current Ratio
Reported current ratio	1.05	1.10	1.22	1.07	1.01	1.00
Adjusted current ratio	1.11	1.15	1.27	1.12	1.05	1.04
Net Profit Margin
Reported net profit margin	1.53%	2.15%	1.11%	-2.13%	6.53%	6.86%
Adjusted net profit margin	1.11%	1.59%	0.83%	-1.58%	5.04%	5.34%
Total Asset Turnover
Reported total asset turnover	0.61	0.64	0.62	0.71	0.81	0.74
Adjusted total asset turnover	0.76	0.79	0.75	0.86	0.95	0.86
Financial Leverage
Reported financial leverage	2.91	2.89	2.93	2.89	2.73	2.75
Adjusted financial leverage	3.20	3.15	3.25	3.20	3.02	3.04
Return on Assets (ROA)
Reported ROA	0.93%	1.37%	0.69%	-1.50%	5.29%	5.05%
Adjusted ROA	0.84%	1.25%	0.62%	-1.36%	4.79%	4.57%

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Toyota Motor Corp.'s adjusted current ratio deteriorated from 2010 to 2011 and from 2011 to 2012.
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Toyota Motor Corp.'s adjusted net profit margin improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Toyota Motor Corp.'s adjusted total asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Toyota Motor Corp.'s adjusted financial leverage declined from 2010 to 2011 but then slightly increased from 2011 to 2012.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Toyota Motor Corp.'s adjusted ROA improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

Adjusted Current Ratio

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
As Reported
Current assets (USD $ in millions, translated from JPY ￥)	149,911	142,270	140,516	115,025	120,633	99,823
Current liabilities (USD $ in millions, translated from JPY ￥)	143,346	129,777	114,856	107,801	119,181	99,680

Current ratio¹	1.05	1.10	1.22	1.07	1.01	1.00
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted current assets (USD $ in millions, translated from JPY ￥)	184,557	171,867	166,286	135,256	144,349	118,119
Adjusted current liabilities (USD $ in millions, translated from JPY ￥)	165,577	148,861	131,073	121,130	136,856	113,990

Adjusted current ratio²	1.11	1.15	1.27	1.12	1.05	1.04

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 149,911 ÷ 143,346 = 1.05

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 184,557 ÷ 165,577 = 1.11

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Toyota Motor Corp.'s adjusted current ratio deteriorated from 2010 to 2011 and from 2011 to 2012.

Adjusted Net Profit Margin

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
As Reported
Net income (loss) attributable to Toyota Motor Corporation (USD $ in millions, translated from JPY ￥)	3,450	4,909	2,251	(4,448)	17,146	13,927
Net revenues (USD $ in millions, translated from JPY ￥)	226,106	228,427	203,686	208,995	262,394	202,864

Net profit margin¹	1.53%	2.15%	1.11%	-2.13%	6.53%	6.86%
Adjusted: from Equity Method to Proportionate Consolidation
Net income (loss) attributable to Toyota Motor Corporation (USD $ in millions, translated from JPY ￥)	3,450	4,909	2,251	(4,448)	17,146	13,927
Adjusted net revenues (USD $ in millions, translated from JPY ￥)	310,551	309,619	269,758	282,165	340,332	260,992

Adjusted net profit margin²	1.11%	1.59%	0.83%	-1.58%	5.04%	5.34%

2012 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Toyota Motor Corporation ÷ Net revenues
= 100 × 3,450 ÷ 226,106 = 1.53%

² Adjusted net profit margin = 100 × Net income (loss) attributable to Toyota Motor Corporation ÷ Adjusted net revenues
= 100 × 3,450 ÷ 310,551 = 1.11%

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	Toyota Motor Corp.'s adjusted net profit margin improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

Adjusted Total Asset Turnover

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
As Reported
Net revenues (USD $ in millions, translated from JPY ￥)	226,106	228,427	203,686	208,995	262,394	202,864
Total assets (USD $ in millions, translated from JPY ￥)	372,928	358,607	326,196	295,857	323,968	275,941

Total asset turnover¹	0.61	0.64	0.62	0.71	0.81	0.74
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted net revenues (USD $ in millions, translated from JPY ￥)	310,551	309,619	269,758	282,165	340,332	260,992
Adjusted total assets (USD $ in millions, translated from JPY ￥)	410,489	391,525	361,597	327,329	358,164	305,041

Adjusted total asset turnover²	0.76	0.79	0.75	0.86	0.95	0.86

2012 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 226,106 ÷ 372,928 = 0.61

² Adjusted total asset turnover = Adjusted net revenues ÷ Adjusted total assets
= 310,551 ÷ 410,489 = 0.76

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	Toyota Motor Corp.'s adjusted total asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

Adjusted Financial Leverage

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
As Reported
Total assets (USD $ in millions, translated from JPY ￥)	372,928	358,607	326,196	295,857	323,968	275,941
Toyota Motor Corporation shareholders’ equity (USD $ in millions, translated from JPY ￥)	128,364	124,262	111,347	102,425	118,470	100,263

Financial leverage¹	2.91	2.89	2.93	2.89	2.73	2.75
Adjusted: from Equity Method to Proportionate Consolidation
Adjusted total assets (USD $ in millions, translated from JPY ￥)	410,489	391,525	361,597	327,329	358,164	305,041
Toyota Motor Corporation shareholders’ equity (USD $ in millions, translated from JPY ￥)	128,364	124,262	111,347	102,425	118,470	100,263

Adjusted financial leverage²	3.20	3.15	3.25	3.20	3.02	3.04

2012 Calculations

¹ Financial leverage = Total assets ÷ Toyota Motor Corporation shareholders’ equity
= 372,928 ÷ 128,364 = 2.91

² Adjusted financial leverage = Adjusted total assets ÷ Toyota Motor Corporation shareholders’ equity
= 410,489 ÷ 128,364 = 3.20

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Toyota Motor Corp.'s adjusted financial leverage declined from 2010 to 2011 but then slightly increased from 2011 to 2012.

Adjusted Return On Assets (ROA)

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
As Reported
Net income (loss) attributable to Toyota Motor Corporation (USD $ in millions, translated from JPY ￥)	3,450	4,909	2,251	(4,448)	17,146	13,927
Total assets (USD $ in millions, translated from JPY ￥)	372,928	358,607	326,196	295,857	323,968	275,941

ROA¹	0.93%	1.37%	0.69%	-1.50%	5.29%	5.05%
Adjusted: from Equity Method to Proportionate Consolidation
Net income (loss) attributable to Toyota Motor Corporation (USD $ in millions, translated from JPY ￥)	3,450	4,909	2,251	(4,448)	17,146	13,927
Adjusted total assets (USD $ in millions, translated from JPY ￥)	410,489	391,525	361,597	327,329	358,164	305,041

Adjusted ROA²	0.84%	1.25%	0.62%	-1.36%	4.79%	4.57%

¹ ROA = 100 × Net income (loss) attributable to Toyota Motor Corporation ÷ Total assets
= 100 × 3,450 ÷ 372,928 = 0.93%

² Adjusted ROA = 100 × Net income (loss) attributable to Toyota Motor Corporation ÷ Adjusted total assets
= 100 × 3,450 ÷ 410,489 = 0.84%

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Toyota Motor Corp.'s adjusted ROA improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.