Toyota Motor (7203) investor relations material

Executive summary

• Announced executive leadership changes: Kenta Kon appointed as President and CEO, Koji Sato to become Vice Chairman and Chief Industry Officer, focusing on industry-wide collaboration and external relations.

• Achieved high profit levels despite a significant negative impact from U.S. tariffs, supported by strong product competitiveness and increased sales volumes year-over-year.

• Consolidated vehicle unit sales rose 4.3% year-over-year to 7,302 thousand units in the first nine months of FY2026, with both Japan and overseas markets contributing to growth.

• The change aims to address management challenges, enhance earning power, and accelerate industry collaboration to maintain competitiveness.

• The new structure separates focus: Kon on internal company performance, Sato on broader industry initiatives.

Significant events and developments

• The executive change was approved by the board and announced promptly for transparency and timely disclosure.

• Sato emphasized no wrongdoing or negative reason for the leadership transition, highlighting a positive, forward-looking process.

• Production in Brazil recovered after a major plant disaster, demonstrating global production resilience.

• Assets and liabilities of Hino Motors, Ltd. classified as held for sale due to approved business integration with Mitsubishi Fuso Truck and Bus Corporation, effective April 1, 2026.

• Planned investment in Toyota Industries Corporation increased to 800.0 billion yen, with changes in timing for a related tender offer.

Outlook and guidance

• Full-year sales revenue forecast raised to ¥50,000.0 billion, with operating income forecast at ¥3,800.0 billion (down ¥995.5 billion year-over-year).

• Net income forecast for the year is ¥3,570.0 billion, with a 7.1% margin.

• Consolidated vehicle sales forecast at 9.75 million units, up 4.1% year-over-year.

• Electrified vehicle sales expected to reach 5.06 million units, representing 48.2% of total sales.

• Focus remains on improving productivity, quality, and reducing break-even volume to ensure resilience in tough environments.