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

Toyota European Sustainability Report 2011 I Economic Performance
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Exchange impact on TMC annual results
290
Measuring Economic Performance
Market Context
no
impact
FY 06 vs 05 07 vs 06 08 vs 07 09 vs 08 10 vs 09
Yen vs Euro and US Dollar
In FY10, the automotive market has expanded in terms
of emerging countries and technological development.
New product launches have been accelerated due to an
increase in customers’ demands for compact and low-price
cars and due to the growth of worldwide environmental
consciousness.
In Europe, despite a decrease in both sales and production
volume, our net revenues increased by 7% due to a
Consolided Financial Results for Europe (in million Euro)
Vehicle and Market Share in Europe
In 2010, the European car market remained almost flat
at 18.4 million units. The year-on-year 3.7% decrease in
Western Europe was mainly due to the end of programmes
to provide incentives to motorists to scrap old vehicles
and replace them with more energy-efficient vehicles.
By contrast Central and East Europe markets, where these
programmes were not offered, grew by 18.9% after a 41.7%
drop in 2009.
760
These two objectives can be achieved through the
localisation localisation of design, research research and development
capabilities to Europe, Europe, procurement procurement of parts and
components from European suppliers and production
of models, where where Europe should be the the centre of
excellence.
Through these activities, we can contribute contribute to
Toyota’s global performance and we can develop
self reliance of our operations in Europe. This is is an
ambitious ambitious challenge for us, but we are fully fully committed
to succeeding.
favourable model mix resulting from the reduction of
sales of A and B segment vehicles, which were the main
benefi ciaries in FY09 of the various old car scrapping
programmes implemented in most Western European
countries.
Consolidated operating income for Europe increased by
€368 million to a €116 million profi t, mainly due to ongoing
cost reduction activities in all areas.
fy06 fy07 fy08 fy09 fy10
Net Revenues 23,615 24,651 20,925 16,390 17,535
Operating Expenses 22,699 23,777 21,919 16,641 17,419
Operating Income 916 874 (995) (252) 116
Assets 19,448 19,294 16,143 16,143 17,091
Source = TMC Annual Results - segment information
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290
Under these circumstances, Toyota sales in 2010 were
808,311 units and Toyota’s market share was 4.4% which
is 0.4% lower than in 2009.
We managed to contain the impact of the decrease in
volume by continuing our cost reduction efforts. We
also further enhanced supply and demand management
process and we adjusted inventory levels and production
levels to meet market demand.