tal leadership by maintaining the performance of more than ... - Toyota

Economic
Performance
Ludo
Vandervelden
Senior Vice-President
Accounting, Finance,
Information Systems & Legal
With declining volume for the third consecutive
year, our operations in Europe have faced an
unprecedented challenge. But this has also been
a great opportunity to rethink our processes and
challenge our cost structure to become a more
lean and effi cient organisation.
Ludo Vandervelden
We are aiming to rebound when market demand recovers and we want to reduce
our exposure to the impact of any market downturn in the future. We will contribute
to our parent company’s consolidated fi nancial results by securing sustainable
profi tability for European operations and by becoming a global development
centre for small and compact cars. To achieve these objectives we are pursuing
two directions:
� Our continual focus is to exceed customers’ expectations. We aim to produce
and sell vehicles with the highest standards of quality and to integrate the latest
technological and environmental developments. As Europe is the leading place
for these activities, we are designing and developing truly European cars in
Europe for our European customers.
� We are aiming for an exchange rate risk-free business structure, with natural
currency hedging of our revenues with our production costs. This is a critical
objective, as in addition to the economic crisis, Toyota Motor Corporation’s
consolidated results have been impacted signifi cantly by the 30% appreciation
of the Japanese Yen versus the Euro and the US Dollar since FY07. The
cumulative negative impact exceeds 1,370 billion Yen.
Exchange rates
150 138
130
110
90
70
50
113
150
117
162
114
FY 05 06 07 08 09 10
144
101
Yen / Euro Yen / US Dollar
131
93
113
86
Toyota European Sustainability Report 2011 I Economic Performance
59