FY2022 2Q Financial Results (with transcripts) (PDF: 13.2 MB / 28 pp.)

Hello, everyone, thank you for joining us today,

I am Kenta Kon.

We would like to express our heartfelt appreciation to all of our stakeholders including customers around the world who chose us as well as our shareholders, dealers and suppliers who support us.

We sincerely apologize for the inconvenience cause to our customers due to the recent production volume reduction. We are working to recover production as soon as possible.

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I would like to provide a summary of the second quarter of this fiscal year.

The semiconductor shortage and spread of COVID-19 in some developing countries caused us to reduce our production volume globally, but our suppliers, plants and dealers made great efforts to supply as many cars to our customers as possible.

Our results for the first half of the fiscal year reflect our enhanced cost reduction activities and efforts to make more efficient use of fixed costs, while enhancing the product appeal by making "ever-better cars" and investing for growth.

We have also benefited from the tightening supply and high demand in the new car market, as this has led to higher used car prices and allowed us to decrease the quantum of incentives. We believe these factors have made our results in certain respects to be robust beyond our underlying strength.

Even though we have revised our operating income forecast upwards, excluding the impact of the depreciation of the yen, it would be in substance a downward revision due to increases in raw material costs. We will keep improving our operation to standardize what we have learned from COVID-19.

In terms of our return to shareholders, the interim ordinary dividend is 120 yen per share, an increase of 15 yen compared to the previous fiscal year. We have also decided to conduct a repurchase of up to 150 billion yen of our common stock.

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Let me discuss our financial results for the first half ended September 2021.

Consolidated vehicle sales for the period was at 4 million 94 thousand units, which was 132.7% of consolidated vehicle sales for the first half of the previous fiscal year.

Toyota and Lexus brand vehicle sales was at 4 million 852 thousand units, which was 121.0% of such sales for the first half of the previous fiscal year.

The ratio of electrified vehicles was 27.7%.

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