Toyota Motor Corporation (TM) Q2 2023 Earnings Call Transcript

Toyota Motor Corporation (NYSE:TM) Q2 2023 Results Conference Call November 1, 2022 ET

Company Participants

Akio Toyoda - CEO

Kenta Kon - Executive Vice President, Chief Financial Officer

Jun Nagata - Chief Communications Officer

Masahiro Yamamoto - Accounting Group Chief Officer

Kazunari Kumakura - Chief Officer of Purchasing Group

Yoshio Nakamura - Deputy Chief Officer, Production Department

Conference Call Participants

Hodaka Yamamoto - The Yomiuri Shimbun

Yuzuha Oka - NewsPicks

Hitomi Mashima - NHK

River Davis - Wall Street Journal

Hans Greimel - Automotive News

Akio Toyoda

Thank you very much for participating in this financial results announcement despite your occupied schedule. We would like to start the presentation on the financial year 2023 second quarter financial results.

First of all, let me introduce to you the participants from TMC, Executive Vice President, Chief Financial Officer, Kenta Kon. Chief Communication Officer, Jun Nagata. The Chief Officer for Accounting Group, Masahiro Yamamoto. Chief Officer of Purchasing Group, Kazunari Kumakura. And Deputy Chief Officer, Production Department, Yoshio Nakamura.

Now ladies and gentlemen, first of all, Yamamoto will share with you the outline of financial results.

Masahiro Yamamoto

We would like to express our heartfelt appreciation to our customers around the world who chose us as well as our shareholders, dealers and suppliers who support us. And I would like to express appreciation for those of you who are participating in this financial results announcement.

But at the same time, we sincerely apologize for the inconvenience caused to our customers who are waiting for their vehicles. We are working to deliver them as soon as possible. First, let me provide a summary of the second quarter of the fiscal year ending March 2023.

The result for the first half was operating income of ¥1,141.4 billion, the business environment is changing dramatically such as the rapid changes of foreign exchange rates, raising interest rate, soaring materials prices and more.

While production constraints continue due to low supply of semiconductors, a lockdown in Shanghai, the flood in South Africa, et cetera, we worked hard with our dealers, suppliers and production sites in order to deliver as many cars as possible to our customers.

Operating income decreased due to soaring materials prices and onetime costs despite the positive effects from the depreciation of the yen.

As for the full year forecast, it remained unchanged from the previous forecast, so we anticipate operating income of ¥2,400 billion.