Working Toward the Mobility Society of the Future
Message from
the President
The Source of Our
Value Creation:
What Makes Us Toyota
Capital Strategy
Value Creation Story:
Working toward the Mobility
Society of the Future
Business Foundations
Corporate Data
for Value Creation
Message from the CSO > Roundtable Discussion with the Outside Directors > Dialogue with Institutional Investors on Corporate Governance > Corporate Governance
Message from the CFO > Capital Strategy >The Environment > Vehicle Safety > Quality and Information Security > Intellectual Property and Privacy >Value Chain Collaboration
Human Rights Diversity and Inclusion > Human Resource Development >Health and Safety and Social Contribution Activities > Risk Management and Compliance
Three Pillars
The three pillars of Toyota's financial strategy are
stability, growth, and efficiency. By maintaining
adequate stability while pursuing growth and effi-
ciency over the medium and long terms, we aim
to build a robust financial foundation to support
sustainable growth.
1. Stability: Securing Liquidity
Having experienced financial crises and the Great
East Japan Earthquake, in order to ensure busi-
ness continuity in any business environment, we
maintain a sufficient level of liquidity to cover half a
year of both fixed costs in the automotive busi-
ness and refinancing requirements in the financial
services business.
Ample liquidity is essential to maintaining a full
line-up in each region and retaining the ability to
respond to all options and opportunities. As such,
it is a vital part of the foundation supporting the
creation of corporate value.
2. Growth: Aggressive Forward-looking Investment
As the auto industry approaches a once-in-a-
century turning point, Toyota is focusing on tech-
nological innovation aimed at transforming into a
mobility company. Every year, we spend more
than 1 trillion yen on R&D. By enhancing efficien-
cy in existing areas, we are strategically increas-
ing the portion of R&D spending allotted to
cutting-edge fields.
3. Efficiency: Enhancing Capital Efficiency
Using cost reduction and the thorough application of
the Toyota Production System (TPS), we are rein-
forcing the profit structure and securing funds to
invest in advanced and cutting-edge technologies.
In capital expenditures other than R&D expens-
es, as well, we are carefully assigning priority to
individual projects and tracking their progress while
advancing measures to improve productivity, such
as streamlining development in existing fields,
making equipment more compact, shortening
processes, and facilitating faster response to
changes in production quantities.
Furthermore, in addition to sustainably increas-
ing ROE by repurchasing shares, we are strength-
ening investment management by regularly
evaluating the rationality of our strategic share-
holdings in terms of the needs of our business
strategies and economic utility. In these ways, we
are striving to enhance capital efficiency.
Shareholder Returns
Toyota deems the benefit of its shareholders an
important element of its management policy and
continues to work to improve its corporate struc-
ture and enhance its corporate value in order to
realize sustainable growth. Toyota strives to
ensure the stable and continuous payment of divi-
dends, seeking to maintain and improve upon the
consolidated payout ratio of 30%. Toyota flexibly
repurchases its common stock while comprehen-
sively considering such factors as its investment in
growth, level of its dividends, its cash reserves
and the price level of its common stock to pro-
mote its capital efficiency.
For the year ended March 2022, Toyota paid an
interim dividend of 24 yen* per share and a year-
end dividend of 28 per share, for an annual divi-
dend of 52 yen per share, up 4 yen per share from
the previous fiscal year.
Toyota repurchased 435.6 billion yen of its com-
mon stock to return profits for the fiscal year ended
March 2022 to shareholders. Of this, 185.6 billion
yen in repurchases were flexibly executed in con-
sideration of such factors as the price level of its
common stock.
With a view to surviving tough competition and
transitioning to a mobility company, Toyota will uti-
lize its internal funds mainly for its investment in
growth for the next generation, such as environ-
mental technologies to achieve carbon neutrality
and safety technologies for the safety and security
of its customers, as well as for the benefit of
stakeholders, such as employees, business part-
ners, and local communities.
* Post-stock split basis (values for after the five-for-one stock split
of shares of our common stock conducted on October 1, 2021)
Strategic Shareholdings
1. Policies on Strategic Shareholdings
Toyota's policy is to not maintain strategic share-
holdings except for in cases where such holdings
are deemed to be meaningful. Cases where such
holdings are deemed to be meaningful are defined
as cases where it is determined that, in the busi-
ness of manufacturing of automobiles, in which it is
essential to maintain a variety of cooperative rela-
tionships throughout the entire process of develop-
ment, procurement, production, distribution, and
sales, such holdings contribute to the improvement
of corporate value from a medium- to long-term
perspective based on a comprehensive consider-
ation of business strategy; the establishment,
maintenance, and strengthening of relationships
with business partners; and contribution to and
cooperation in the development of society.
2. Assessment of the Propriety of Strategic Shareholdings
When necessary, Toyota engages in constructive
dialogue with the issuers of shares that it holds to
encourage them to improve corporate value and
achieve sustainable growth. These dialogues pro-
vide opportunities to share and address business
challenges. Every year, at the Board of Directors,
Toyota reviews whether its individual shareholdings
are meaningful in light of changes in the business
environment, specifically examines whether the
Dividends per share*1 (yen)
benefits and risks from such holdings are commen-
surate with the cost of capital, etc., and assesses
the propriety of Toyota's strategic shareholdings.
If Toyota determines that a shareholding is no
longer meaningful or the meaning of a shareholding
has been diluted due to changes in the business
environment or other reasons, Toyota will proceed
with the sale of such shares once it has adequately
explained its reasons for doing so to the issuer.
Consequently, the number of companies
whose shares Toyota strategically holds has been
reduced to 148 (including 53 listed companies) as
of March 31, 2022 from 200 (including 80 listed
companies) as of March 31, 2015.
Woven Planet Bonds
In the year ended March 2021, Toyota issued
Woven Planet Bonds to raise funds for projects
that contribute to the achievement of the United
Nations Sustainable Development Goals (SDGs).
The issuances comprised 100.0 billion yen in
yen-denominated straight bonds for individual
investors, as well as 130.0 billion yen in yen-
denominated sustainability bonds and 275.0 billion
yen in foreign currency-denominated sustainability
bonds for institutional investors. Furthermore,
Toyota issued an additional 60.0 billion yen in sus-
tainability bonds in June 2022.
Total amount of payment (billions of yen)
Payout ratio*2
2018/3
44
642.6
2019/3
44
2020/3
44
2021/3
48
2022/3
52
626.8
610.8
671.0
718.2
26.1
33.8
30.2
29.8
25.3
Share repurchases (billions of yen)
Total shareholder return*3 (billions of yen)
Total return ratio*4
549.9
549.9
199.9
249.9
435.6
1,200.0
48.1
1,186.7
63.0
810.8
921.0
1,153.8
39.8
41.0
40.4
*1 The above figures show dividends per common share on a post-stock split basis (values for after the five-for-one stock split of shares
of our common stock conducted on October 1, 2021).
*2 Payout ratio: This is the ratio of (i) the amount of dividend per common share to (ii) net income attributable to Toyota Motor Corporation
per common share.
*3 Includes dividends paid for First Series Model AA Class Shares until 2019/3; these dividends are not included from 2020/3 onward due
to the application of IFRS.
*4 Total return ratio: Total shareholder returns divided by net income attributable to Toyota Motor Corporation.
TOYOTA MOTOR CORPORATION
39
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