{"url_path":"/sec/tm/10-k/2026/item-18","section_key":"item-18","section_title":"Item 18 FINANCIAL STATEMENTS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-10","source_url":"https://www.sec.gov/Archives/edgar/data/1094517/0001193125-26-264811-index.html","accession_number":"0001193125-26-264811","cik":"0001094517","ticker":"TM","issuer_name":"TOYOTA MOTOR CORP/","edgar_url":"https://www.sec.gov/Archives/edgar/data/1094517/0001193125-26-264811-index.html","primary_entity_key":"0001094517","primary_entity_name":"TOYOTA MOTOR CORP/"},"word_count":30105,"has_tables":true,"body_markdown":"ITEM 18. FINANCIAL STATEMENTS\n\nThe following financial statements are filed as part of this annual report on Form 20-F.\n\n \n\n153\n\n##### Table of Contents\n\nP3M\n\nTOYOTA MOTOR CORPORATION\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n \n\n  \n\nPage\n\n \n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID:2743)](#fin101983_1)\n\n  \n\n \n\nF - 2\n\n \n\n[Consolidated statement of financial position](#fin101983_2)\n\n  \n\n \n\nF - 4\n\n \n\n[Consolidated statement of income](#fin101983_3)\n\n  \n\n \n\nF - 6\n\n \n\n[Consolidated statement of comprehensive income](#fin101983_4)\n\n  \n\n \n\nF - 7\n\n \n\n[Consolidated statement of changes in equity](#fin101983_5)\n\n  \n\n \n\nF - 8\n\n \n\n[Consolidated statement of cash flows](#fin101983_6)\n\n  \n\n \n\nF - 10\n\n \n\n[Notes to consolidated financial statements](#fin101983_7)\n\n  \n\n \n\nF - 11\n\n \n\nAll financial statements schedules are omitted because they are not applicable or the required information is shown in the financial statements or the notes thereto.\n\nFinancial statements of equity method investees in which the Company holds 50% or less ownership have been omitted because none meet the significance tests specified in Rule\n3-09\nof Regulation\nS-X.\n\n \n\nF-1\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and Board of Directors of\n\nToyota Jidosha Kabushiki Kaisha\n\n(“Toyota Motor Corporation”)\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated statements of financial position of Toyota Motor Corporation and its subsidiaries (collectively referred to as the “Company”) as of March 31, 2026 and 2025, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended March 31, 2026, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026 in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under Item 15(b). Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to\n\n \n\nF-2\n\nthe consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\nLiabilities for the costs of recalls and other safety measures\n\nAs described in Notes 3 and 24 to the consolidated financial statements, the Company accrues for costs of recalls and other safety measures. As of March 31, 2026, estimated liabilities for the costs of recalls and other safety measures totaled ¥1,431,112 million and were included in liabilities for quality assurance in the consolidated statement of financial position. The Company generally measures the liabilities for recalls and other safety measures at the time of vehicle sales comprehensively by aggregate sales of various models in a certain period by geographical regions. However, when circumstances warrant, the Company measures liabilities for costs of a particular recall or other safety measures using an individual model when they are probable and reasonably estimable. Management calculates the liabilities for the costs of recalls and other safety measures that are determined comprehensively based on the accumulated amount of repair cost paid per unit and pattern of actual payment occurrence.\n\nThe principal considerations for our determination that performing procedures relating to liabilities for the costs of recalls and other safety measures that are determined comprehensively is a critical audit matter are 1) significant judgment and estimation was required by management when developing the liabilities which in turn led to a high degree of auditor judgment and subjectivity in performing procedures to evaluate management’s assumptions; and 2) significant audit effort was necessary relating to testing the accumulated amount of repair cost paid per unit and pattern of actual payment occurrence utilized in developing the estimate. In addition, the audit effort included the involvement of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to liabilities for the costs of recalls and other safety measures, including controls related to the determination of the significant assumptions and data used to calculate the liabilities that are determined comprehensively. These procedures also included, among others: 1) testing management’s process for estimating the liabilities, including evaluating the reasonableness of the significant assumptions; and 2) testing of the completeness and accuracy of the data used in the estimate. Professionals with specialized skill and knowledge were used to assist in testing the liabilities by developing an independent range of reasonable estimated loss based on the Company’s data and independently developed assumptions.\n\nAllowance for credit losses—Retail finance receivables\n\nAs described in Notes 3, 8 and 20 to the consolidated financial statements, the Company measures an allowance for credit losses on its retail finance receivables by estimating the expected credit losses at the reporting date. As of March 31, 2026, ¥382,152 million of the allowance for credit losses corresponding to ¥31,837,922 million of retail finance receivables was recorded in the consolidated statement of financial position. The allowance for credit losses on retail finance receivables is measured based on a systematic, ongoing review and evaluation performed as part of the credit risk evaluation process, historical loss experience, the size and composition of the portfolios, current economic events and conditions, the estimated fair value and adequacy of collateral, forward-looking information including movements of the world economy and other pertinent factors. In calculating the expected credit losses, the Company uses the probability of a default and the loss rate in the event of a default based on past experience and then reflects adjustments based on its forecasts of current and future economic conditions. Retail finance receivables within the United States represent approximately half of the consolidated retail finance receivables as of March 31, 2026.\n\nThe principal considerations for our determination that performing procedures relating to the allowance for credit losses on retail finance receivables is a critical audit matter are 1) significant judgment was required by management when determining assumptions of the probability of a default, the loss rate in the event of a default, and adjustments based on the forecasts of current and future economic conditions used in the estimating of the allowance for credit losses, which in turn led to a high degree of auditor judgment and subjectivity in performing procedures to evaluate management’s assumptions and adjustments; and 2) there was a high level of complexity in assessing audit evidence related to management’s estimate. In addition, the audit effort included the involvement of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Company’s allowance for credit losses on retail finance receivables, including controls over data supporting the assumptions, such as the probability of a default and the loss rate in the event of a default based on past experience, and adjustments used to determine the allowance. These procedures also included, among others, testing management’s process for estimating the allowance, including evaluating the reasonableness of the assumptions and adjustments. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of the assumptions and adjustments determined by management.\n\n/s/ PricewaterhouseCoopers Japan LLC\n\nNagoya, Japan\n\nJune \n10\n, 2026\n\nWe have served as the Company’s auditor since 2006.\n\n \n\nF-3\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF FINANCIAL POSITION\n\n \n\n \n \n \n \n\nYen in millions\n\n \n\n \n \n\nNotes\n\n \n\nMarch 31, 2025\n\n \n \n\nMarch 31, 2026\n\n \n\nAssets\n\n \n\n \n\n \n\nCurrent assets\n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n6\n \n \n8,982,404\n \n \n \n12,659,622\n \n\nTrade accounts and other receivables\n\n \n7\n \n \n3,679,722\n \n \n \n3,795,986\n \n\nReceivables related to financial services\n\n \n8\n \n \n11,453,249\n \n \n \n13,478,474\n \n\nOther financial assets\n\n \n9\n \n \n6,935,759\n \n \n \n3,982,445\n \n\nInventories\n\n \n10\n \n \n4,598,232\n \n \n \n5,134,996\n \n\nIncome tax receivable\n\n \n\n \n \n216,528\n \n \n \n235,425\n \n\nOther current assets\n\n \n\n \n \n1,212,783\n \n \n \n1,520,330\n \n\nSubtotal\n\n \n \n \n \n37,078,676\n \n \n \n40,807,277\n \n\nAssets held for sale\n\n \n11\n \n \n— \n \n \n \n2,016,804\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal current assets\n\n \n\n \n \n37,078,676\n \n \n \n42,824,081\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nassets\n\n \n\n \n\n \n\nInvestments accounted for using the equity method\n\n \n12\n \n \n5,798,051\n \n \n \n5,342,548\n \n\nReceivables related to financial services\n\n \n8\n \n \n22,171,786\n \n \n \n25,488,182\n \n\nOther financial assets\n\n \n9\n \n \n9,882,841\n \n \n \n11,135,799\n \n\nProperty, plant and equipment\n\n \n\n \n\n \n\nLand\n\n \n13\n \n \n1,428,122\n \n \n \n1,351,625\n \n\nBuildings\n\n \n13\n \n \n6,170,063\n \n \n \n6,284,907\n \n\nMachinery and equipment\n\n \n13\n \n \n16,621,243\n \n \n \n17,509,377\n \n\nVehicles and equipment on operating leases\n\n \n13\n \n \n8,051,945\n \n \n \n9,705,647\n \n\nConstruction in progress\n\n \n13\n \n \n1,596,145\n \n \n \n1,719,808\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal property, plant and equipment, at cost\n\n \n13\n \n \n33,867,518\n \n \n \n36,571,364\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLess - Accumulated depreciation and impairment losses\n\n \n13\n \n \n(18,533,826\n) \n \n \n(19,504,000\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal property, plant and equipment, net\n\n \n13\n \n \n15,333,693\n \n \n \n17,067,365\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRight of use assets\n\n \n14\n \n \n583,068\n \n \n \n901,232\n \n\nIntangible assets\n\n \n15\n \n \n1,363,266\n \n \n \n1,392,755\n \n\nDeferred tax assets\n\n \n16\n \n \n517,869\n \n \n \n555,596\n \n\nOther\nnon-current\nassets\n\n \n23\n \n \n872,101\n \n \n \n814,773\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\nnon-current\nassets\n\n \n\n \n \n56,522,674\n \n \n \n62,698,250\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal assets\n\n \n\n \n \n93,601,350\n \n \n \n105,522,331\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-4\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF FINANCIAL POSITION—(Continued)\n\n \n\n \n \n \n \n \n\nYen in millions\n\n \n\n \n \n\nNotes\n\n \n \n\nMarch 31, 2025\n\n \n \n\nMarch 31, 2026\n\n \n\nLiabilities\n\n \n\n \n\n \n\nCurrent liabilities\n\n \n\n \n\n \n\nTrade accounts and other payables\n\n \n \n17\n \n \n \n5,527,347\n \n \n \n5,856,945\n \n\nShort-term and current portion of long-term debt\n\n \n \n18\n \n \n \n15,829,516\n \n \n \n17,581,104\n \n\nAccrued expenses\n\n \n\n \n \n1,827,933\n \n \n \n2,112,571\n \n\nOther financial liabilities\n\n \n \n19\n \n \n \n1,869,117\n \n \n \n2,384,008\n \n\nIncome taxes payable\n\n \n\n \n \n505,500\n \n \n \n711,675\n \n\nLiabilities for quality assurance\n\n \n \n24\n \n \n \n1,965,748\n \n \n \n2,097,943\n \n\nProvisions\n\n \n \n25\n \n \n \n413,352\n \n \n \n431,191\n \n\nOther current liabilities\n\n \n\n \n \n1,495,707\n \n \n \n1,735,034\n \n\nSubtotal\n\n \n \n \n \n \n \n29,434,220\n \n \n \n32,910,472\n \n\nLiabilities directly associated with assets held for sale\n\n \n \n11\n \n \n \n— \n \n \n \n694,547\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal current\nliabilities\n\n \n\n \n \n29,434,220\n \n \n \n33,605,019\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n \n\n \n\n \n\nLong-term debt\n\n \n \n18\n \n \n \n22,963,363\n \n \n \n25,624,365\n \n\nOther financial liabilities\n\n \n \n19\n \n \n \n435,594\n \n \n \n1,157,413\n \n\nRetirement benefit liabilities\n\n \n \n23\n \n \n \n1,019,568\n \n \n \n1,022,483\n \n\nDeferred tax liabilities\n\n \n \n16\n \n \n \n1,659,433\n \n \n \n1,584,505\n \n\nProvisions\n\n \n \n25\n \n \n \n301,103\n \n \n \n498,463\n\n \n\nOther\nnon-current\nliabilities\n\n \n\n \n \n909,156\n \n \n \n1,010,015\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\nnon-current\nliabilities\n\n \n\n \n \n27,288,217\n \n \n \n30,897,244\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal liabilities\n\n \n\n \n \n56,722,437\n \n \n \n64,502,263\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShareholders’ equity\n\n \n\n \n\n \n\nCommon stock\n\n \n \n26\n \n \n \n397,050\n \n \n \n397,050\n \n\nAdditional\npaid-in\ncapital\n\n \n \n26\n \n \n \n492,368\n \n \n \n456,742\n \n\nRetained earnings\n\n \n \n26\n \n \n \n35,841,218\n \n \n \n38,709,858\n \n\nOther components of equity\n\n \n \n26\n \n \n \n3,610,133\n \n \n \n4,544,019\n \n\nOther comprehensive income associated with assets held for sale\n\n \n \n11,26\n \n \n \n— \n \n \n \n266,596\n \n\nTreasury stock\n\n \n \n26\n \n \n \n(4,415,943\n) \n \n \n(4,455,410\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal Toyota Motor Corporation shareholders’ equity\n\n \n \n26\n \n \n \n35,924,826\n \n \n \n39,918,854\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-controlling\ninterests\n\n \n\n \n \n954,088\n \n \n \n1,101,214\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal shareholders’ equity\n\n \n\n \n \n36,878,913\n \n \n \n41,020,068\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal liabilities and shareholders’ equity\n\n \n\n \n \n93,601,350\n \n \n \n105,522,331\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-5\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF INCOME\n\n \n\n \n\n \n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\nFor the year ended\n\nMarch 31, 2024\n\n \n\n \n\nFor the year ended\n\nMarch 31, 2025\n\n \n\n \n\nFor the year ended\n\nMarch 31, 2026\n\n \n\nSales revenues\n\n \n\n \n\n \n\n \n\nSales of products\n\n \n \n27\n \n \n \n41,648,130\n \n \n \n43,598,877\n \n \n \n45,865,949\n \n\nFinancial services\n\n \n \n27\n \n \n \n3,447,195\n \n \n \n4,437,827\n \n \n \n4,819,003\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal sales revenues\n\n \n \n27\n \n \n \n45,095,325\n \n \n \n48,036,704\n \n \n \n50,684,952\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCosts and expenses\n\n \n\n \n\n \n\n \n\nCost of products sold\n\n \n\n \n \n33,600,612\n \n \n \n35,510,157\n \n \n \n39,141,418\n \n\nCost of financial services\n\n \n\n \n \n2,126,395\n \n \n \n2,948,509\n \n \n \n3,079,794\n \n\nSelling, general and administrative\n\n \n\n \n \n4,015,383\n \n \n \n4,782,452\n \n \n \n4,697,524\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal costs and expenses\n\n \n\n \n \n39,742,390\n \n \n \n43,241,118\n \n \n \n46,918,736\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOperating income\n\n \n \n     \n \n \n \n5,352,934\n \n \n \n4,795,586\n \n \n \n3,766,216\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShare of profit (loss) of investments accounted for using the\nequity method\n\n \n \n12\n \n \n \n763,137\n \n \n \n591,219\n \n \n \n552,742\n \n\nOther finance income\n\n \n \n29\n \n \n \n747,236\n \n \n \n556,700\n \n \n \n594,243\n \n\nOther finance costs\n\n \n \n29\n \n \n \n(103,709\n) \n \n \n(190,711\n)\n \n \n(86,746\n) \n\nForeign exchange gain (loss), net\n\n \n\n \n \n187,568\n \n \n \n705,292\n \n \n \n400,780\n \n\nOther income (loss), net\n\n \n\n \n \n17,918\n \n \n \n(43,497\n) \n \n \n(74,239\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome before income taxes\n\n \n\n \n \n6,965,085\n \n \n \n6,414,590\n \n \n \n5,152,996\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome tax expense\n\n \n \n16\n \n \n \n1,893,665\n \n \n \n1,624,835\n \n \n \n1,167,234\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n \n5,071,421\n \n \n \n4,789,755\n \n \n \n3,985,761\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income attributable to\n\n \n\n \n\n \n\n \n\nToyota Motor Corporation\n\n \n\n \n \n4,944,933\n \n \n \n4,765,086\n \n \n \n3,848,098\n \n\nNon-controlling\ninterests\n\n \n\n \n \n126,488\n \n \n \n24,670\n \n \n \n137,664\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n \n5,071,421\n \n \n \n4,789,755\n \n \n \n3,985,761\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n \n \n \n \n\nYen\n\n \n\nEarnings per share attributable to Toyota Motor Corporation\n\n \n\n \n\n \n\n \n\nBasic and Diluted\n\n \n \n30\n \n \n \n365.94\n \n \n \n359.56\n \n \n \n295.25\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-6\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME\n\n \n\n \n \n \n \n \n\nYen in millions\n\n \n\n \n \n\nNotes\n\n \n \n\nFor the year ended\nMarch 31, 2024\n\n \n \n\nFor the year ended\nMarch 31, 2025\n\n \n \n\nFor the year ended\n\nMarch 31, 2026\n\n \n\nNet income\n\n \n\n \n \n 5,071,421\n \n \n \n 4,789,755\n \n \n \n 3,985,761\n \n\nOther comprehensive income, net of tax\n\n \n\n \n\n \n\n \n\nItems that will not be reclassified to profit (loss)\n\n \n\n \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n \n \n26\n \n \n \n557,539\n \n \n \n102,129\n \n \n \n351,684\n \n\nRemeasurements of defined benefit plans\n\n \n \n26\n \n \n \n46,328\n \n \n \n(109,598\n)\n \n \n101,352\n \n\nShare of other comprehensive income of equity method investees\n\n \n \n12,26\n \n \n \n156,118\n \n \n \n(63,213\n)\n \n \n22,331\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal of items that will not be reclassified to profit (loss)\n\n \n \n     \n \n \n \n759,984\n \n \n \n(70,682\n)\n \n \n475,366\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nItems that may be reclassified subsequently to profit (loss)\n\n \n\n \n\n \n\n \n\nExchange differences on translating foreign operations\n\n \n \n26\n \n \n \n1,178,875\n \n \n \n(827,848\n)\n \n \n946,309\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n \n \n26\n \n \n \n12,247\n \n \n \n31,158\n \n \n \n(53,181\n) \n\nShare of other comprehensive income of equity method investees\n\n \n \n12,26\n \n \n \n165,996\n \n \n \n121,340\n \n \n \n161,450\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal of items that may be reclassified subsequently to profit (loss)\n\n \n\n \n \n1,357,118\n \n \n \n(675,349\n) \n \n \n1,054,578\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income, net of tax\n\n \n \n26\n \n \n \n2,117,103\n \n \n \n(746,031\n)\n \n \n1,529,944\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive income\n\n \n\n \n \n7,188,523\n \n \n \n4,043,724\n \n \n \n5,515,705\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive income for the period attributable to\n\n \n\n \n\n \n\n \n\nToyota Motor Corporation\n\n \n\n \n \n6,999,828\n \n \n \n4,011,822\n \n \n \n5,308,095\n \n\nNon-controlling\ninterests\n\n \n\n \n \n188,696\n \n \n \n31,903\n \n \n \n207,610\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive income\n\n \n\n \n \n7,188,523\n \n \n \n4,043,724\n \n \n \n5,515,705\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-7\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF CHANGES IN EQUITY\n\nFor the year ended March 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\nCommon\nstock\n\n \n\n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n\n \n\nRetained\n\nearnings\n\n \n\n \n\nOther\n\ncomponents\nof equity\n\n \n\n \n\nTreasury\nstock\n\n \n\n \n\nToyota Motor\nCorporation\nshareholders’\nequity\n\n \n\n \n\nNon-\n\ncontrolling\ninterests\n\n \n\n \n\nTotal\nshareholders’\nequity\n\n \n\nBalances at April 1, 2023\n\n \n\n \n\n \n\n397,050\n\n \n\n \n\n \n\n498,728\n\n \n\n \n\n \n\n28,343,296\n\n \n\n \n\n \n\n2,836,195\n\n \n\n \n\n \n\n(3,736,562\n\n)\n\n \n\n \n\n28,338,706\n\n \n\n \n\n \n\n925,507\n\n \n\n \n\n \n\n29,264,213\n\n \n\nComprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n4,944,933\n \n \n \n— \n \n \n \n— \n \n \n \n4,944,933\n \n \n \n126,488\n \n \n \n5,071,421\n \n\nOther comprehensive income, net of tax\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n2,054,895\n \n \n \n— \n \n \n \n2,054,895\n \n \n \n62,208\n \n \n \n2,117,103\n \n\nTotal comprehensive income\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n4,944,933\n \n \n \n2,054,895\n \n \n \n— \n \n \n \n6,999,828\n \n \n \n188,696\n \n \n \n7,188,523\n \n\nTransactions with owners and other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDividends paid\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n(880,197\n)\n \n \n— \n \n \n \n— \n \n \n \n(880,197\n)\n \n \n(90,309\n)\n \n \n(970,506\n)\n\nRepurchase of treasury stock\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(231,069\n)\n \n \n(231,069\n)\n \n \n— \n \n \n \n(231,069\n)\n\nReissuance of treasury stock\n\n \n \n26\n \n \n \n— \n \n \n \n263\n \n \n \n— \n \n \n \n— \n \n \n \n649\n \n \n \n911\n \n \n \n— \n \n \n \n911\n \n\nEquity transactions and other\n\n \n\n \n \n— \n \n \n \n(7,188\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(7,188\n)\n \n \n(5,546\n)\n \n \n(12,735\n)\n\nTotal transactions with owners and other\n\n \n\n \n \n— \n \n \n \n(6,926\n)\n \n \n(880,197\n) \n \n \n— \n \n \n \n(230,420\n)\n \n \n(1,117,543\n) \n \n \n(95,856\n) \n \n \n(1,213,398\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nReclassification to retained earnings\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n387,334\n \n \n \n(387,334\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalances at March 31, 2024\n\n \n\n \n \n397,050\n \n \n \n491,802\n \n \n \n32,795,365\n \n \n \n4,503,756\n \n \n \n(3,966,982\n) \n \n \n34,220,991\n \n \n \n1,018,347\n \n \n \n35,239,338\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFor the year ended March 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\nCommon\nstock\n\n \n\n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n\n \n\nRetained\n\nearnings\n\n \n\n \n\nOther\n\ncomponents\nof equity\n\n \n\n \n\nTreasury\nstock\n\n \n\n \n\nToyota Motor\nCorporation\nshareholders’\nequity\n\n \n\n \n\nNon-\n\ncontrolling\ninterests\n\n \n\n \n\nTotal\nshareholders’\nequity\n\n \n\nBalances at April 1, 2024\n\n \n\n \n \n397,050\n \n \n \n491,802\n \n \n \n32,795,365\n \n \n \n4,503,756\n \n \n \n(3,966,982\n)\n \n \n34,220,991\n \n \n \n1,018,347\n \n \n \n35,239,338\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nComprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n4,765,086\n \n \n \n— \n \n \n \n— \n \n \n \n4,765,086\n \n \n \n24,670\n \n \n \n4,789,755\n \n\nOther comprehensive income, net of tax\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(753,264\n) \n \n \n— \n \n \n \n(753,264\n) \n \n \n7,233\n \n \n \n(746,031\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal comprehensive income\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n4,765,086\n \n \n \n(753,264\n)\n \n \n— \n \n \n \n4,011,822\n \n \n \n31,903\n \n \n \n4,043,724\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTransactions with owners and other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDividends paid\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n(1,132,329\n)\n \n \n— \n \n \n \n— \n \n \n \n(1,132,329\n)\n \n \n(127,232\n) \n \n \n(1,259,560\n)\n\nRepurchase of treasury stock\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(1,179,043\n) \n \n \n(1,179,043\n)\n \n \n— \n \n \n \n(1,179,043\n)\n\nReissuance of treasury stock\n\n \n \n26\n \n \n \n— \n \n \n \n1,356\n \n \n \n— \n \n \n \n— \n \n \n \n866\n \n \n \n2,222\n \n \n \n— \n \n \n \n2,222\n \n\nRetirement of treasury stock\n\n \n \n26\n \n \n \n— \n \n \n \n(1,953\n) \n \n \n(727,264\n) \n \n \n— \n \n \n \n729,217\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nEquity transactions and other\n\n \n\n \n \n— \n \n \n \n1,163\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n1,163\n \n \n \n31,069\n \n \n \n32,232\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal transactions with owners and other\n\n \n\n \n \n— \n \n \n \n567\n \n \n \n(1,859,593\n)\n \n \n— \n \n \n \n(448,961\n)\n \n \n(2,307,987\n)\n \n \n(96,162\n)\n \n \n(2,404,149\n)\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nReclassification to retained earnings\n\n \n \n26\n \n \n \n— \n \n \n \n— \n \n \n \n140,359\n \n \n \n(140,359\n)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalances at March 31, 2025\n\n \n\n \n \n397,050\n \n \n \n492,368\n \n \n \n35,841,218\n \n \n \n3,610,133\n \n \n \n(4,415,943\n)\n \n \n35,924,826\n \n \n \n954,088\n \n \n \n36,878,913\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-8\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF CHANGES IN EQUITY—(Continued)\n\n \n\nFor the year ended March 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\nCommon\nstock\n\n \n\n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n\n \n\nRetained\n\nearnings\n\n \n\n \n\nOther\n\ncomponents\nof equity\n\n \n\n \n\nOther\ncomprehensive\nincome\nassociated\nwith assets\nheld for sale\n\n \n\n \n\nTreasury\nstock\n\n \n\n \n\nToyota Motor\nCorporation\nshareholders’\nequity\n\n \n\n \n\nNon-\n\ncontrolling\ninterests\n\n \n\n \n\nTotal\nshareholders’\nequity\n\n \n\nBalances at April 1, 2025\n\n \n\n \n\n \n\n397,050\n\n \n\n \n\n \n\n492,368\n\n \n\n \n\n \n\n35,841,218\n\n \n\n \n\n \n\n3,610,133\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(4,415,943\n\n) \n\n \n\n \n\n35,924,826\n\n \n\n \n\n \n\n954,088\n\n \n\n \n\n \n\n36,878,913\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nComprehensive income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n3,848,098\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n3,848,098\n\n \n\n \n\n \n\n137,664\n\n \n\n \n\n \n\n3,985,761\n\n \n\nOther comprehensive income, net of tax\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,459,998\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,459,998\n\n \n\n \n\n \n\n69,946\n\n \n\n \n\n \n\n1,529,944\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal comprehensive income\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n3,848,098\n\n \n\n \n\n \n\n1,459,998\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n5,308,095\n\n \n\n \n\n \n\n207,610\n\n \n\n \n\n \n\n5,515,705\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTransactions with owners and other\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDividends paid\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(1,238,974\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(1,238,974\n\n) \n\n \n\n \n\n(125,416\n\n) \n\n \n\n \n\n(1,364,389\n\n) \n\nRepurchase of treasury stock\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(39,975\n\n) \n\n \n\n \n\n(39,975\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(39,975\n\n) \n\nReissuance of treasury stock\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,358\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n508\n\n \n\n \n\n \n\n1,866\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,866\n\n \n\nRetirement of treasury stock\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\nEquity transactions and other\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(36,984\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(36,984\n\n) \n\n \n\n \n\n64,932\n\n \n\n \n\n \n\n27,948\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal transactions with owners and other\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(35,626\n\n) \n\n \n\n \n\n(1,238,974\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(39,467\n\n) \n\n \n\n \n\n(1,314,067\n\n) \n\n \n\n \n\n(60,483\n\n) \n\n \n\n \n\n(1,374,550\n\n) \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReclassification to retained earnings\n\n \n\n \n\n26\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n259,516\n\n \n\n \n\n \n\n(259,516\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTransfer to other comprehensive income associated with assets held for sale\n\n \n\n \n\n11\n\n26\n\n \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(266,596\n\n) \n\n \n\n \n\n266,596\n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalances at March 31, 2026\n\n \n\n \n\n \n\n397,050\n\n \n\n \n\n \n\n456,742\n\n \n\n \n\n \n\n38,709,858\n\n \n\n \n\n \n\n4,544,019\n\n \n\n \n\n \n\n266,596\n\n \n\n \n\n \n\n(4,455,410\n\n) \n\n \n\n \n\n39,918,854\n\n \n\n \n\n \n\n1,101,214\n\n \n\n \n\n \n\n41,020,068\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-9\n\nTOYOTA MOTOR CORPORATION\n\nCONSOLIDATED STATEMENT OF CASH FLOWS\n\n \n\n \n\n \n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\nNotes\n\n \n\n \n\nFor the year ended\nMarch 31, 2024\n\n \n\n \n\nFor the year ended\n\nMarch 31, 2025\n\n \n\n \n\nFor the year ended\n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCash flows from operating activities\n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n \n \n5,071,421\n \n \n \n4,789,755\n \n \n \n3,985,761\n \n\nDepreciation and amortization\n\n \n\n \n \n2,087,066\n \n \n \n2,251,233\n \n \n \n2,392,519\n \n\nInterest income and interest costs related to financial services, net\n\n \n\n \n \n(713,506\n)\n \n \n(747,742\n)\n \n \n(809,088\n)\n\nShare of profit (loss) of investments accounted for using the equity method\n\n \n\n \n \n(763,137\n)\n \n \n(591,219\n)\n \n \n(552,742\n)\n\nIncome tax expense\n\n \n\n \n \n1,893,665\n \n \n \n1,624,835\n \n \n \n1,167,234\n \n\nChanges in operating assets and liabilities, and other\n\n \n\n \n \n(3,975,836\n)\n \n \n(2,815,549\n)\n \n \n(976,558\n)\n\n(Increase) decrease in trade accounts and other receivables\n\n \n\n \n \n(859,239\n)\n \n \n55,139\n \n \n \n(539,370\n)\n\n(Increase) decrease in receivables related to financial services\n\n \n\n \n \n(3,398,434\n)\n \n \n(2,389,665\n)\n \n \n(2,017,214\n)\n\n(Increase) decrease in inventories\n\n \n\n \n \n(207,529\n)\n \n \n(70,654\n)\n \n \n(468,883\n)\n\n(Increase) decrease in other current assets\n\n \n \n     \n \n \n \n(326,365\n)\n \n \n(462,114\n)\n \n \n(175,944\n)\n\nIncrease (decrease) in trade accounts and other payables\n\n \n\n \n \n560,737\n \n \n \n362,924\n \n \n \n378,798\n \n\nIncrease (decrease) in other current liabilities\n\n \n\n \n \n666,513\n \n \n \n659,088\n \n \n \n1,477,356\n \n\nIncrease (decrease) in retirement benefit liabilities\n\n \n\n \n \n(161\n)\n \n \n17,377\n \n \n \n153,351\n \n\nOther, net\n\n \n\n \n \n(411,358\n)\n \n \n(987,645\n)\n \n \n215,348\n \n\nInterest received\n\n \n\n \n \n2,292,156\n \n \n \n2,672,724\n \n \n \n2,760,711\n \n\nDividends received\n\n \n\n \n \n587,259\n \n \n \n623,295\n \n \n \n430,774\n \n\nInterest paid\n\n \n\n \n \n(1,148,392\n) \n \n \n(1,609,083\n) \n \n \n(1,685,013\n) \n\nIncome taxes paid, net of refunds\n\n \n\n \n \n(1,124,322\n)\n \n \n(2,501,315\n)\n \n \n(1,240,680\n)\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by (used in) operating activities\n\n \n\n \n \n4,206,373\n \n \n \n3,696,934\n \n \n \n5,472,920\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash flows from investing activities\n\n \n\n \n\n \n\n \n\nAdditions to fixed assets excluding equipment leased to others\n\n \n\n \n \n(1,846,447\n)\n \n \n(1,906,811\n)\n \n \n(2,148,192\n)\n\nAdditions to equipment leased to others\n\n \n\n \n \n(2,867,660\n)\n \n \n(2,996,920\n)\n \n \n(2,766,352\n)\n\nProceeds from sales of fixed assets excluding equipment leased to others\n\n \n\n \n \n154,985\n \n \n \n70,821\n \n \n \n31,242\n \n\nProceeds from sales of equipment leased to others\n\n \n\n \n \n2,008,634\n \n \n \n1,707,899\n \n \n \n1,355,605\n \n\nAdditions to intangible assets\n\n \n\n \n \n(334,287\n)\n \n \n(354,196\n)\n \n \n(378,804\n)\n\nAdditions to public and corporate bonds and stocks\n\n \n\n \n \n(2,972,779\n)\n \n \n(3,965,550\n)\n \n \n(4,290,671\n)\n\nProceeds from sales of public and corporate bonds and stocks\n\n \n\n \n \n1,201,405\n \n \n \n1,035,922\n \n \n \n739,503\n \n\nProceeds upon maturity of public and corporate bonds\n\n \n\n \n \n1,049,963\n \n \n \n2,713,649\n \n \n \n4,778,059\n \n\nOther, net\n\n \n \n35\n \n \n \n(1,392,565\n)\n \n \n(494,551\n)\n \n \n1,159,304\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by (used in) investing activities\n\n \n\n \n \n(4,998,751\n)\n \n \n(4,189,736\n)\n \n \n(1,520,307\n)\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash flows from financing activities\n\n \n\n \n\n \n\n \n\nIncrease (decrease) in short-term debt\n\n \n \n18\n \n \n \n401,740\n \n \n \n75,675\n \n \n \n(90,691\n)\n\nProceeds from long-term debt\n\n \n \n18\n \n \n \n12,057,349\n \n \n \n13,381,581\n \n \n \n12,880,225\n \n\nPayments of long-term debt\n\n \n \n18\n \n \n \n(8,752,329\n)\n \n \n(10,872,262\n)\n \n \n(11,956,541\n)\n\nDividends paid to Toyota Motor Corporation common shareholders\n\n \n \n26\n \n \n \n(880,197\n)\n \n \n(1,132,329\n)\n \n \n(1,238,974\n)\n\nDividends paid to\nnon-controlling\ninterests\n\n \n\n \n \n(90,309\n)\n \n \n(127,232\n)\n \n \n(125,416\n)\n\nReissuance (repurchase) of treasury stock\n\n \n\n \n \n(231,069\n)\n \n \n(1,179,043\n)\n \n \n(39,975\n)\n\nOther, net\n\n \n\n \n \n(7,627\n)\n \n \n50,845\n \n \n \n34,712\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by (used in) financing activities\n\n \n\n \n \n2,497,558\n \n \n \n197,236\n \n \n \n(536,659\n)\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of exchange rate changes on cash and cash equivalents\n\n \n\n \n \n189,914\n \n \n \n(134,089\n)\n \n \n377,197\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet increase (decrease) in cash and cash equivalents\n\n \n\n \n \n1,895,094\n \n \n \n(429,656\n)\n \n \n3,793,150\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash and cash equivalents at beginning of year\n\n \n \n6\n \n \n \n7,516,966\n \n \n \n9,412,060\n \n \n \n8,982,404\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet increase (decrease) in cash and cash equivalents resulting from transfer to assets held for sale\n\n \n \n11\n \n \n \n— \n \n \n \n— \n \n \n \n(115,932\n) \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash and cash equivalents at end of year\n\n \n \n6\n \n \n \n9,412,060\n \n \n \n8,982,404\n \n \n \n12,659,622\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements\n\n \n\nF-10\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n1. Reporting entity\n\nTMC is a limited liability, joint-stock company located in Japan, and TMC’s principal executive offices are registered in Toyota City, Aichi Prefecture. The consolidated financial statements of the group consist of TMC, its consolidated subsidiaries (collectively, “Toyota”) and their interests in associates and joint ventures.\n\nToyota and its associates are primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, SUVs, trucks and related parts and accessories throughout the world. In addition, Toyota and its associates provide financing, vehicle leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota and its associates.\n\n2. Basis of preparation\n\n(1) Compliance with IFRS Accounting Standards\n\nToyota’s consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the IASB.\n\nThe consolidated financial statements were approved on June 10, 2026 by Kenta Kon, President, Operating Officer, and Yoichi Miyazaki, CFO, member of the Board of Directors.\n\n(2) Basis of measurement\n\nToyota’s consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value and assets and liabilities associated with defined benefit plans indicated in “3.Material accounting policies”.\n\n(3) Functional currency and presentation currency\n\nThe consolidated financial statements are presented in Japanese yen, which is the functional currency of TMC. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated. Amounts may not sum to totals due to rounding.\n\n(4) Changes in Presentation\n\n(Consolidated statement of financial position)\n\nProvisions, which were included in “Other current liabilities” and “Other non-current liabilities” for the year ended March 31, 2025, have been reclassified and presented as separate line items for the year ended March 31, 2026, due to the increased materiality and for the purpose of providing a clearer presentation of the financial position.\n\nTo reflect this change in presentation, amounts for the year ended March 31, 2025 have also been reclassified and presented accordingly.\n\nAs a result of this reclassification, ¥413,352 million previously presented in “Other current liabilities” has been reclassified to “Provisions” within current liabilities, and ¥301,103 million previously presented in “Other non-current liabilities” has been reclassified to “Provisions” within non-current liabilities.\n\n \n\nF-11\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n3\n\n.\n\nMaterial accounting policies\n\nBasis of consolidation -\n\n(1) Subsidiaries\n\nThe consolidated financial statements include the accounts of TMC, its subsidiaries that are controlled by TMC, and those structured entities that are controlled by Toyota. Toyota controls an entity when Toyota is exposed or has rights to variable returns from involvement with the entity, and has the ability to affect those returns by using its power over the entity.\n\nThe financial statements of subsidiaries have been adjusted in order to ensure consistency with the accounting policies adopted by Toyota as necessary. All significant intercompany balances and transactions as well as related unrealized profits have been eliminated in consolidation.\n\nChanges in a subsidiary’s ownership interests that do not result in a loss of control are accounted for as equity transactions. When control over a subsidiary is lost, any gain or loss on the disposal of the interest sold is recognized in profit or loss.\n\n(2) Associates and joint ventures\n\nAssociates are entities over which Toyota has a significant influence over the decisions on financial and operating policies, but does not have control or joint control.\n\nJoint ventures are entities over which two or more parties including Toyota have joint control, based on a contractual arrangement, and financial and business decisions about the relevant activities of which require unanimous consent of the parties that have joint control.\n\nInvestments in associates and joint ventures are accounted for using the equity method. The financial statements of associates and joint ventures have been adjusted in order to ensure consistency with the accounting policies adopted by Toyota as necessary.\n\nWhen the use of the equity method is discontinued from the date when the investees are determined to be no longer associates or joint ventures, any gain or loss on such disposal of the investment is recognized in profit or loss.\n\nForeign currency translation -\n\n(1) Foreign currency transactions\n\nForeign currency transactions are translated into the respective functional currencies of Toyota at the exchange rates prevailing when such transactions occur. All foreign currency receivables and payables are translated into the respective functional currencies at the applicable exchange rates at the end of the reporting period.\nNon-monetary\nassets and liabilities in foreign currencies that are measured at fair value are translated into the functional currency using the exchange rate on the date when the fair value was measured. Gains or losses on exchange differences arising from settlement of foreign currency receivables and payables or on their translations at the end of the reporting date are recognized in profit or loss. Furthermore, exchange differences arising from equity financial assets measured at fair value through other comprehensive income are recognized as other comprehensive income.\n\n \n\nF-12\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(2) Foreign operations\n\nAll assets and liabilities of foreign subsidiaries, associates and joint ventures (collectively, “foreign operations”) that use a functional currency other than Japanese yen are translated into Japanese yen at the exchange rates at the end of the reporting period. All revenues and expenses of foreign operations are translated into Japanese yen at the average exchange rate for the period unless the exchange rate fluctuates widely. Exchange differences arising from such translations are recognized in other comprehensive income and accumulated in other components of equity in the consolidated statement of financial position. When a foreign operation is disposed of and control, significant influence or joint control over the foreign operation is lost, the cumulative amount of exchange differences relating to the foreign operation is reclassified from equity to profit or loss.\n\nCash and cash equivalents -\n\nCash and cash equivalents consist of cash on hand, demand deposits, and short-term investments that are readily convertible to cash and are subject to insignificant risk of changes in value with three months or less maturities from the acquisition date.\n\nFinancial instruments -\n\n(1) Financial assets\n\n(i) Initial recognition and measurement\n\nToyota initially recognizes financial assets when it becomes a party to a contract and, except for derivatives, classifies financial assets into “financial assets measured at amortized cost”, “debt and equity financial assets measured at fair value through other comprehensive income”, or “financial assets measured at fair value through profit or loss”. Sales and purchases of financial assets in the normal course of business are recognized and derecognized at the trade date.\n\nFinancial assets classified as measured at fair value through profit or loss are measured at fair value, while other financial assets are initially recognized at fair value plus transaction costs directly attributable to their acquisition. Trade receivables that do not contain significant financing components are measured at the transaction price.\n\n(a) Financial assets measured at amortized cost\n\nToyota classifies a financial asset as measured at amortized cost if both of the following conditions are met:\n\nThe asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and\n\nThe contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.\n\n(b) Debt financial assets measured at fair value through other comprehensive income\n\nDebt financial assets are measured at fair value through other comprehensive income only if it meets both of the following conditions:\n\nThe asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and\n\n \n\nF-13\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.\n\n(c) Equity financial assets measured at fair value through other comprehensive income\n\nEquity financial assets such as shares held mainly for the purpose of maintaining or enhancing business relationships with investees are irrevocably designated at initial recognition as financial assets measured at fair value through other comprehensive income.\n\n(d) Financial assets measured at fair value through profit or loss\n\nFinancial assets other than (a) to (c) are classified as financial assets measured at fair value through profit or loss.\n\n(ii) Subsequent measurement\n\nAfter initial recognition, financial assets are measured based on the following classification.\n\n(a) Financial assets measured at amortized cost\n\nFinancial assets measured at amortized cost are measured at amortized cost using the effective interest method.\n\n(b) Debt financial assets measured at fair value through other comprehensive income\n\nSubsequent changes in fair value of the financial assets are recognized as other comprehensive income. Impairment gains or losses, interest income and foreign exchange gains and losses are recognized in profit or loss. When the financial assets are derecognized, the cumulative gain or loss recognized in other comprehensive income is reclassified from other components of equity to profit or loss.\n\n(c) Equity financial assets measured at fair value through other comprehensive income\n\nSubsequent changes in fair value of the financial assets are recognized as other comprehensive income. When the financial assets are derecognized, the cumulative gain or loss recognized through other comprehensive income is reclassified from other components of equity to retained earnings. Dividends from equity financial assets are recognized in profit or loss.\n\n(d) Financial assets measured at fair value through profit or loss\n\nSubsequent changes in the fair value of the financial assets are recognized in profit or loss.\n\n(iii) Impairment of financial assets\n\nAn allowance for credit losses is provided for expected credit losses on financial assets that are measured at amortized cost as well as debt financial assets measured at fair value through other comprehensive income. An allowance for credit losses is also provided for expected credit losses on loan commitments or financial guarantee agreements that are\noff-balance\nsheet credit exposures.\n\n \n\nF-14\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nAt the end of the reporting period, Toyota assesses whether the credit risk on financial assets has significantly increased since initial recognition. At the end of the reporting period, if Toyota identifies a significant increase in credit risk, allowances for credit losses are measured as being equal to the amount of expected credit losses that would result from default events that are possible over the expected life of a financial asset. At the end of the reporting period, if the credit risk for a financial instrument has not increased significantly since its initial recognition, allowances for credit losses are measured as being equal to the amount of the expected credit losses caused by default events that may occur within 12 months from the end of the reporting period.\n\nFor accounts receivable that are included in “Trade accounts and other receivables” and receivables regarding finance lease, the allowance is continuously measured at amounts equal to expected credit losses over the expected life of financial assets and presented as “Allowance for doubtful accounts” in each note. Also, please see Note 3 “Allowance for credit losses on finance receivables” about the allowance for credit losses on finance receivables.\n\nThe amount of expected credit losses is measured as the present value of all cash short-falls resulting from the difference between the cash flows due to Toyota in accordance with the contract and cash flows that Toyota expects to receive, and such amount is recognized in profit or loss. A reversal of the allowance for credit losses resulting from a reduction in the amount of expected credit losses is recognized in profit or loss.\n\nIf there is objective evidence of impairment such as significant financial difficulty of a borrower, or a default or delinquency by a borrower, interest income is measured applying the effective interest method to the net carrying amount of the financial asset (after deducting the allowance for credit loss). Financial assets are written off either partially or fully when there is no reasonable expectation of recovering a financial asset in its entirety or a portion thereof.\n\n(iv) Derecognition of financial assets\n\nToyota derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when Toyota transfers the contractual right to receive cash flows from financial assets in transactions in which substantially all the risks and rewards of ownership of the asset are transferred to another entity. When Toyota maintains control over a transferred financial asset in a situation in which it has neither transferred nor retained substantially all of its risk and economic value, Toyota recognizes the retained interest on such financial asset and the relevant liabilities that might possibly be paid in association therewith.\n\n(2) Financial liabilities\n\n(i) Initial recognition and measurement\n\nToyota initially measures financial liabilities other than derivatives at fair value less transaction costs directly attributable to the issuance of financial liabilities.\n\n(ii) Subsequent measurement\n\nToyota subsequently measures financial liabilities at amortized cost using the effective interest method. Amortization under the effective interest method and gains or losses on derecognition are recognized as finance income or costs in profit or loss.\n\n \n\nF-15\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(iii) Derecognition of financial liabilities\n\nToyota derecognizes financial liabilities when the financial liabilities expire; that is, when the liability identified in the contract expires due to performance, discharges, cancels, or matures.\n\n(3) Derivative financial instruments\n\nToyota employs derivative financial instruments, including forward foreign exchange contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements and interest rate options, to manage mainly its exposure to fluctuations in interest rates and foreign currency exchange rates. Toyota is unable to or has elected not to apply hedge accounting. All derivative transactions are measured at fair value as assets or liabilities.\n\nToyota does not use derivative financial instruments for speculative or trading purposes.\n\nFinance receivables -\n\nFinance receivables recorded on Toyota’s consolidated statement of financial position are net of any unearned financial income and deferred origination costs and the allowance for credit losses. Deferred origination costs are amortized so as to approximate a level rate of return over the term of the related contracts.\n\nThe determination of finance receivable portfolios is based primarily on qualitative considerations of the nature of Toyota’s business operations and finance receivables. The three portfolios within finance receivables are as follows:\n\n(1) Retail receivables portfolio\n\nThe retail receivables portfolio consists of retail installment sales contracts acquired mainly from dealers (“auto loans”) including credit card loans. These acquired contracts must first meet specified credit standards, and thereafter Toyota retains responsibility for contract collection and administration.\n\nThe contract periods of auto loans primarily range from 2 to 7 years. Toyota acquires security interests in the vehicles financed and has the right to repossess vehicles if customers fail to meet their contractual obligations. Almost all auto loans are\nnon-recourse,\nwhich relieves the dealers from financial responsibility in the event of repossession.\n\nToyota manages the retail receivables portfolio as one portfolio based on common risk characteristics associated with the underlying finance receivables, the similarity of the credit risks, and quantitative materiality.\n\n(2) Finance lease receivables portfolio\n\nFinance lease receivables are related to new vehicle lease contracts. The contract periods of these primarily range from 2 to 5 years. Lease contracts acquired must first meet specified credit standards after which Toyota assumes ownership of the leased vehicle. Toyota is responsible for contract collection and administration during the lease period.\n\nToyota is generally permitted to take possession of the vehicle upon a default by the lessee. The residual value is estimated at the time the vehicle is first leased. Vehicles returned to Toyota at the end of their leases are sold by auction.\n\n \n\nF-16\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nToyota manages the finance lease receivables portfolio as one portfolio based on common risk characteristics associated with the underlying finance receivables and the similarity of the credit risks.\n\n(3) Wholesale and other dealer loan receivables portfolio\n\nToyota provides wholesale financing to qualified dealers to finance inventories. Toyota acquires security interests in vehicles financed at wholesale. In cases where additional security interests would be required, Toyota takes dealership assets and/or personal assets, as additional security. If a dealer defaults, Toyota has the right to liquidate any assets acquired.\n\nToyota also makes term loans to dealers for business acquisitions, facilities refurbishment, real estate purchases and working capital requirements. These loans are typically secured with liens on real estate, other dealership assets and/or personal assets of the dealers.\n\nToyota manages the wholesale and other dealer loan receivables portfolio as one portfolio based on the risk characteristics associated with the underlying finance receivables.\n\nAllowance for credit losses on finance receivables -\n\nThe allowance for credit losses on finance receivables is measured at the portfolio level, based on a systematic, ongoing review and evaluation performed as part of the credit risk evaluation process, historical loss experience, the size and composition of the portfolios, current economic events and conditions, the estimated fair value and adequacy of collateral, forward-looking information including movements of the world economy and other pertinent factors. Furthermore, portfolios are grouped based on similarities of risk characteristics, such as product and collateral classes, when calculating expected credit losses in the aggregate.\n\n(1) Retail receivables portfolio\n\nWith respect to retail receivables, Toyota reviews whether the credit risk on finance receivables has increased significantly. To evaluate this risk, Toyota considers the changes for the possibility of a credit loss occurring or days in arrears as an index. Toyota assesses the significant increases in credit risk when contractual payments are more than 30 days past due. When the credit risk on finance receivables has not increased significantly since initial recognition, Toyota measures the loss allowance for those finance receivables at an amount equal to\n12-month\nexpected credit losses at the reporting date.\n\nMeanwhile, Toyota measures the loss allowance for finance receivables at an amount equal to the lifetime expected credit losses if the credit risk on those finance receivables has increased significantly since initial recognition at the reporting date. Toyota calculates the loss allowance for finance receivables at an amount equal to the lifetime expected credit losses by considering historical credit loss experience and future collectability, when there is evidence that finance receivables are credit-impaired such as a breach of contract due to default or delayed contractual payments.\n\nIn calculating expected credit losses, Toyota uses the probability of a default and the loss rate in the event of a default based on past experience and then incorporates its forecasts of current and future economic conditions.\n\nSuspension of payment over a certain period of time and/or situations where contractual obligations are not being met are considered as being in default in accordance with internal management rules.\n\n \n\nF-17\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(2) Finance lease receivables portfolio\n\nWith respect to the finance lease receivables portfolio, Toyota always measures loss allowance at an amount equal to lifetime expected credit losses. Suspension of payment over a certain period of time and/or situations where contractual obligations are not being met are considered as being in default in accordance with internal management rules.\n\n(3) Wholesale and other dealer loan receivables portfolio\n\nWith respect to the wholesale and other dealer loan receivables portfolio, receivables are segmented primarily by credit qualities based on internal risk assessments. Toyota reviews the change of the segment as an indicator whether the credit risk on finance receivables has increased significantly since initial recognition to assess these receivables for credit risk. Toyota assesses the significant increases in credit risk when contractual payments are more than 30 days past due. If the credit risk on finance receivables has not increased significantly since initial recognition, Toyota measures the loss allowance for those finance receivables at an amount equal to\n12-month\nexpected credit losses at the reporting date.\n\nMeanwhile, Toyota measures the loss allowance for finance receivables at an amount equal to the lifetime expected credit losses if the credit risk on those finance receivables has increased significantly since initial recognition at the reporting date. Toyota calculates the loss allowance for finance receivables at an amount equal to the lifetime expected credit losses by considering historical credit loss experience and future collectability, when there is evidence that finance receivables are credit-impaired such as a debtor’s worsened financial condition, breach of contract due to default or delayed contractual payments.\n\nIn calculating expected credit losses, Toyota uses the probability of a default and the loss rate in the event of a default based on past experience and then reflects its forecasts of current and future economic conditions.\n\nSuspension of payment over a certain period of time and/or situations where contractual obligations are not being met are considered as defaults in accordance with internal management rules.\n\nAlthough Toyota considers the allowance for credit losses on finance receivables to be adequate based on information currently available, additional provisions may be necessary due to (i) changes in management estimates and assumptions about asset impairments, (ii) information that indicates changes in expected future cash flows, or (iii) changes in economic and other events and conditions. Future changes in the economy that impact consumer confidence such as increasing interest rates and a rise in the unemployment rate as well as higher debt balances, coupled with deterioration in actual and expected used vehicle values, could negatively affect future operating results of financial services operations.\n\nInventories -\n\nInventories are valued at cost, not in excess of net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated original cost and estimated selling expense to product completion. The cost of inventories includes purchase costs, conversion costs and other costs incurred in bringing the inventories to their present location and condition. The cost is determined principally by using the weighted-average method.\n\nNon-current assets held for sale -\n\nToyota classifies a non-current asset or asset group that will be recovered principally through a sales transaction rather than through continuing use as held for sale if the asset or disposal group sale is highly\n\n \n\nF-18\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nprobable within one year, it is available for immediate sale in its present condition, and the appropriate level of management of Toyota is committed to a plan to sell the asset or disposal group.\n\nThe non-current asset held for sale is not depreciated or amortized, and is measured at the lower of its carrying amount and the fair value less costs to sell.\n\nProperty, plant and equipment -\n\nProperty, plant and equipment is measured based on the cost model and carried at its cost less accumulated depreciation and impairment losses. Expenditures relating to major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations as incurred. Depreciation of property, plant and equipment, except for land that is not subject to depreciation, is calculated on the straight-line method over the estimated useful life of the respective assets according to general class, type of structure and use. The estimated useful lives range from 2 to 65 years for buildings and from 2 to 20 years for machinery and equipment.\n\nThe depreciation method, useful lives and residual values of property, plant and equipment are reviewed annually at each fiscal year end, and changes are adopted prospectively, if applicable.\n\nVehicles and equipment on operating leases to third parties are originated by dealers and acquired by certain consolidated subsidiaries. Such subsidiaries are also the lessors of certain property that they acquire directly. Right of use assets that are held as rental assets are included within “Vehicles and equipment on operating leases, net.” “Vehicles and equipment on operating leases” are depreciated on a straight-line method over the lease term, generally from\n\n2 to 5\n\nyears, to the estimated residual value. Incremental direct costs incurred in connection with the acquisition of lease contracts are capitalized and amortized on a straight-line method over the lease term.\n\nToyota is exposed to risk of loss on the disposition of\noff-lease\nvehicles to the extent that sales proceeds are not sufficient to cover the carrying value of the leased asset at lease termination. At the end of each reporting period, Toyota evaluates the estimated residual value to cover probable estimated losses related to unguaranteed residual values on its owned portfolio. The estimate is calculated considering projected vehicle return rates and projected loss severity. Factors considered in the determination of projected return rates and loss severity include historical and market information on used vehicle sales, trends in lease returns and new car markets, and general economic conditions. Toyota evaluates the foregoing factors, develops several potential loss scenarios, and evaluates the estimated residual value to determine whether it is considered adequate to cover the probable range of losses.\n\nBy evaluating estimated residual value, Toyota reflects in depreciation the amount it considers to be appropriate in relation to the estimated losses on its owned portfolio.\n\nIntangible assets -\n\nIntangible assets are measured based on the cost model and carried at their cost less accumulated amortization and impairment losses.\n\nThe estimated useful lives and the amortization method of intangible assets are reviewed annually at each fiscal year end, and changes are adopted prospectively, if appropriate.\n\n(1) Capitalized development cost\n\nDevelopment expenditure for a product is capitalized only when there is technical and commercial feasibility of completing the development, Toyota has the intention, ability and sufficient resources to use the outcome of the development, it is probable that the outcome will generate a future economic benefit, and the cost can be measured reliably.\n\n \n\nF-19\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nCapitalized development cost is amortized using the straight-line method over the expected product life cycle of the developed product ranging mainly from\n\n5 to 10 years.\n\n(2) Other intangible assets\n\nOther intangible assets mainly consist of software for internal use and are amortized using the straight-line method over their estimated useful lives, mainly\n\n5 years. Goodwill is not material to Toyota’s consolidated statement of financial position.\n\nImpairment of\nnon-financial\nassets -\n\nAt the end of the reporting period, the carrying amounts of\nnon-financial\nassets, other than inventories and deferred tax assets, are assessed to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset or cash-generating unit is estimated. An impairment loss is recognized when the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. The impairment loss is measured as the amount by which the carrying amount exceeds the recoverable amount.\n\nLeases -\n\nAt the inception of a contract, Toyota assesses whether the contract is, or contains, a lease.\n\n(1) Lessee\n\nToyota recognizes a right of use asset and a lease liability at the lease commencement date. The cost of the right of use asset is measured as the initial amount of the lease liability, adjusted for any lease payments made at or before the commencement date. The lease liability is initially measured at the present value of the lease payments that have not been paid as of the commencement date.\n\nAfter the commencement date, Toyota applies a cost model and subsequently depreciates the right of use asset using a straight-line method from the commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The lease liability is measured at amortized cost using the effective interest method. In the consolidated statement of financial position, the lease liability is included in short-term and long-term debt. Interest on the lease liability is recognized in profit or loss over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the lease liability.\n\nMany lease contracts relating to land and buildings entered into by Toyota include extension options exercisable by Toyota as lessee for various purposes, such as to ensure business flexibility. Toyota assesses whether it is reasonably certain to exercise an extension option, and if it is reasonably certain to do so, the extension option is included in the lease term.\n\nToyota recognizes lease payments for leases with a lease term of 12 months or less as an expense on a straight-line basis over the lease term.\n\n(2) Lessor\n\nWith respect to lessor lease transactions, Toyota determines at the commencement date whether each lease is a finance lease or operating lease.\n\n \n\nF-\n2\n\n0\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nA lease is classified as a finance lease if it transfers substantially all of the risks and rewards incidental to ownership of an underlying asset. Otherwise, leases are classified as operating leases.\n\nToyota recognizes operating lease payments in profit or loss on a straight-line basis over the lease term.\n\nEmployee benefit obligations -\n\nToyota has both defined benefit and defined contribution plans for employees’ retirement benefits.\n\n(1) Defined benefit plan\n\nThe present value of defined benefit obligations and service cost are principally determined for each plan using the projected unit credit method. The net defined benefit liability (asset) is the present value of the defined benefit obligations less the fair value of plan assets. If the fair value of plan assets is in excess of the present value of defined benefit obligations, the amount of any asset to be recognized is limited to the present value of any economic benefits available in the form of refunds from the plan and reductions in future contributions to the plan. Current service cost and net interest on the net defined benefit liability (asset) are recognized as net income (loss) on the statement of net income.\n\nPast service cost is recognized in profit or loss upon occurrence.\n\nToyota recognizes the difference arising from remeasurement of the net defined benefit liability (asset) including actuarial gains and losses in other comprehensive income when it is incurred and reclassifies it immediately to retained earnings.\n\n(2) Defined contribution plan\n\nFor defined contribution plans, when employees render services, contribution payables are recognized in profit or loss.\n\nLiabilities for quality assurance -\n\nToyota generally warrants its products against certain manufacturing and other defects. Provisions for product warranties are provided for specific periods of time and/or usage of the product and vary depending upon the nature of the product, the geographic location of the sale and other factors. Accrued warranty costs represent management’s best estimate at the time of sale of the total costs that Toyota will incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on historical experience of product failures as well as current information on repair costs. An estimate of warranty claims accrued for each fiscal year is calculated based on the estimate of warranty claims per unit. The estimate of warranty claims per unit is calculated comprehensively by dividing the actual amounts of warranty claims by the number of sales units for the fiscal year.\n\nToyota accrues for costs of recalls and other safety measures, as well as product warranty cost described above. Toyota generally measures such “liabilities for recalls and other safety measures” at the time of vehicle sales comprehensively by aggregate sales of various models in a certain period by geographical regions. However, when circumstances warrant, Toyota measures “liabilities for a particular recall or other safety measures” using an individual model when they are probable and reasonably estimable.\n\n \n\nF-2\n1\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nA portion of “liabilities for recalls and other safety measures” recorded in the consolidated statement of financial position is calculated comprehensively based on the “expected liability for the cost of recalls and other safety measures” in consideration of the “accumulated amount of repair cost paid”. As such, this liability is evaluated every period based on new data and is adjusted as appropriate. Toyota calculates these liabilities for units sold in the current period and each of the past 10 fiscal years, and aggregates such liabilities in determining the final liability amount.\n\nThe “expected liability for the cost of recalls and other safety measures” is calculated by multiplying the “sales unit” by the “expected average repair cost per unit”. The “expected average repair cost per unit” is calculated based on dividing the “accumulated amount of repair cost paid per unit” by the “pattern of payment occurrences”. The “pattern of payment occurrence” represents a ratio that shows the measure of payment occurrence over 10 years based on actual payments with regard to units sold within 10 years.\n\nFactors that may cause a difference between the amount accrued comprehensively at the time of vehicle sale and actual payment on individual recalls and other safety measures mainly include actual cost of recalls and safety measures during the period being significantly different from the accumulated amount of repair cost paid per unit (generally comprised of parts and labor) and the actual pattern of payment occurrence during the period being significantly different from the pattern of the payment occurrence in the past. Such differences are considered as part of our estimation process for future recalls and other safety measures.\n\nLiabilities for product warranties and liabilities for recalls and other safety measures have been combined into “Liabilities for quality assurance” in the consolidated statement of financial position. Product warranty costs and costs of recalls and other safety measures are included in cost of products sold in the consolidated statement of income.\n\nThe foregoing evaluations are inherently uncertain, as they require material estimates as described above. Consequently, actual warranty costs may differ from the estimated amounts and could require additional warranty provisions. If these factors require a significant increase in Toyota’s accrued estimated warranty costs, it would negatively affect future operating results of automotive operations.\n\nProvisions -\n\nProvisions are recognized when present legal or constructive obligations exist as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations, and a reliable estimate can be made of the amount of the obligations.\n\nRevenue recognition -\n\nIn automotive operations, performance obligations are satisfied when completed vehicles and parts are delivered to locations agreed upon with dealers. For parts used in production, revenue is recognized when they are loaded onto a ship or delivered to manufacturing entities. We do not have any significant payment terms, as payment is received at or shortly after the point of sale.\n\nToyota’s sales incentive programs principally consist of cash payments to dealers calculated based on total vehicle volumes or unit sales of certain models during a specified period. Toyota accrues these incentives as reductions of revenue upon the sale of the related vehicles, based on the amount determined under the respective incentive programs using the most likely amount method.\n\nCertain vehicle sales include a contractual right that entitles customers to complimentary vehicle maintenance. Toyota uses an observable price to determine the stand-alone selling price for separate performance\n\n \n\nF-2\n2\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nobligations, or applies a cost-plus margin approach when an observable price is not available. Revenues from such maintenance contracts are deferred and recognized over the contract period based on the expected costs of satisfying the performance obligations.\n\nRevenues from vehicle sales that include a guarantee of the minimum resale value are recognized on a straight-line basis from the date of sale to the first date on which the guarantee can be\n\nexercised\n\n, in accordance with IFRS 16. The underlying vehicles are recorded as assets and depreciated in accordance with Toyota’s depreciation policy.\n\nInterest income from financial services is recognized using the effective interest method. Revenues from operating leases are recognized on a straight-line basis over the lease term.\n\nIf the period between satisfaction of the performance obligation and receipt of consideration is one year or less, as a practical expedient, Toyota does not adjust the promised amount of consideration for the effects of a significant financing component.\n\nRevenue is recognized net of taxes collected from customers and subsequently remitted to governmental authorities.\n\nIncome taxes -\n\nIncome tax expenses are presented as the aggregate amount of current taxes and deferred taxes.\n\nDeferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to temporary differences between the carrying amount of assets or liabilities in the consolidated statement of financial position and the tax base of the assets or liabilities and carryforwards of unused tax losses and tax credits.\n\nDeferred tax assets are recognized for all future deductible amounts, to the extent that it is probable that we will have sufficient profit to utilize the benefit of future deductible amounts.\n\nDeferred tax liabilities for taxable temporary differences arising from investments in subsidiaries, associates, and interest in joint ventures are recognized in principle. However, they are not recognized when Toyota is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.\n\nDeferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply in the period when the assets are realized or the liabilities are settled, based on the tax rates and tax laws enacted or substantively enacted at the end of the reporting period. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which Toyota expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.\n\nEarnings per share attributable to Toyota Motor Corporation -\n\nBasic earnings per share attributable to Toyota Motor Corporation is calculated by dividing net income attributable to Toyota Motor Corporation by the weighted-average number of common shares outstanding with adjustment for treasury stock during the reporting period. Diluted earnings per share attributable to Toyota Motor Corporation is calculated by dividing net income attributable to Toyota Motor Corporation by the weighted-average number of common shares outstanding taking into consideration the effect of dilutive securities.\n\n \n\nF-2\n3\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nShare-based payment -\n\nToyota has introduced a share-based compensation plan utilizing a stock-granting ESOP trust, and compensation determined under the plan is measured at the fair value of the Company’s common shares on the grant date and recognized as an expense over the vesting period from the grant date until vesting.\n\nNew accounting standards and interpretations not yet adopted -\n\nThe impact will arise in connection with customer financing within the financial services segment. Toyota is currently evaluating the impact of the adoption of these standards and interpretations on Toyota’s consolidated financial statements.\n\n \n\nStandards\n\n \n\nStandards names\n\n \n\nMandatory adoption\n\n(from fiscal years\n\nbeginning on or after)\n\n \n\nReporting periods in\n\nwhich Toyota is\nscheduled to adopt\nthe standards\n\n \n\nOverview of new or amended standards and interpretations\n\nIFRS 18\n \n\nPresentation and disclosure in financial statements\n\n \nJanuary 1, 2027\n \n\nFiscal year ending\n\nMarch 31, 2028\n\n \n\nImproved comparability in the statement of profit or loss (income statement)\n\n \n\nEnhanced transparency of management-defined performance measures\n\n \n\nMore useful grouping of information in the financial statements\n\n4. Significant accounting judgments and estimates\n\nThe preparation of the consolidated financial statements in conformity with IFRS Accounting Standards requires management to make judgments, estimates, and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.\n\nInformation about important estimation and judgments that have significant effects on the amounts recognized in the consolidated financial statements is as follows:\n\nScope of subsidiaries, associates, and joint ventures (Note 3 “Basis of consolidation”)\n\nIntangible assets incurred by research and development (Note 3 “Intangible assets”)\n\nInformation about accounting estimates and assumption that affect the application of accounting policies and the reported amounts of assets and liabilities, and financial statements based on IFRS Accounting Standards is as follows:\n\nLiabilities for quality assurance (Note 3 “Liabilities for quality assurance” and Note 24)\n\nAllowance for credit losses on finance receivables (Note 3 “Allowance for credit losses on finance\n\nreceivables” and Note 20 (2))\n\nImpairment of\nnon-financial\nassets (Note 3 “Impairment of\nnon-financial\nassets” and Note 13)\n\n \n\nF-2\n4\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nEmployee benefit obligations (Note 3 “Employee benefit obligations” and Note 23)\n\nFair value measurements (Note 21)\n\nRecoverability of deferred tax assets (Note 3 “Income taxes” and Note 16)\n\nProvisions (Note 3 “Provisions” and Note 25)\n\n5. Segment information\n\n(1) Outline of reporting segments\n\nThe operating segments reported below are the segments of Toyota for which separate financial information is available and for which operating income/loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance.\n\nThe major portions of Toyota’s operations on a worldwide basis are derived from the Automotive and Financial services business segments. The Automotive segment designs, manufactures and distributes sedans, minivans, compact cars, SUVs, trucks and related parts and accessories. The Financial services segment consists primarily of financing and vehicle leasing operations to assist in the merchandising of Toyota’s products as well as other products. The All other segment includes telecommunications and other businesses.\n\n(2) Segment information\n\nAs of and for the year ended March 31, 2024\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nAutomotive\n\n \n\n  \n\nFinancial\nservices\n\n \n\n  \n\nAll other\n\n \n\n  \n\nInter-segment\n\nElimination/\n\nUnallocated\n\nAmount\n\n \n\n \n\nConsolidated\n\n \n\nSales revenues\n\n  \n\n  \n\n  \n\n  \n\n \n\nRevenues from external customers\n\n  \n\n \n\n41,080,731\n\n \n\n  \n\n \n\n3,447,195\n\n \n\n  \n\n \n\n567,399\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n45,095,325\n\n \n\nInter-segment revenues and transfers\n\n  \n\n \n\n185,473\n\n \n\n  \n\n \n\n37,003\n\n \n\n  \n\n \n\n800,766\n\n \n\n  \n\n \n\n(1,023,242\n\n)\n\n \n\n \n\n— \n\n \n\nTotal\n\n  \n\n \n\n41,266,204\n\n \n\n  \n\n \n\n3,484,198\n\n \n\n  \n\n \n\n1,368,164\n\n \n\n  \n\n \n\n(1,023,242\n\n)\n\n \n\n \n\n45,095,325\n\n \n\nOperating expenses\n\n  \n\n \n\n36,644,729\n\n \n\n  \n\n \n\n2,914,175\n\n \n\n  \n\n \n\n1,192,923\n\n \n\n  \n\n \n\n(1,009,437\n\n)\n\n \n\n \n\n39,742,390\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating income\n\n  \n\n \n\n4,621,475\n\n \n\n  \n\n \n\n570,023\n\n \n\n  \n\n \n\n175,241\n\n \n\n  \n\n \n\n(13,805\n\n) \n\n \n\n \n\n5,352,934\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal assets\n\n  \n\n \n\n29,351,344\n\n \n\n  \n\n \n\n43,834,183\n\n \n\n  \n\n \n\n3,011,363\n\n \n\n  \n\n \n\n13,917,406\n\n \n\n \n\n \n\n90,114,296\n\n \n\nInvestments accounted for using the equity method\n\n  \n\n \n\n5,114,364\n\n \n\n  \n\n \n\n110,308\n\n \n\n  \n\n \n\n282,888\n\n \n\n  \n\n \n\n202,546\n\n \n\n \n\n \n\n5,710,106\n\n \n\nDepreciation and amortization\n\n  \n\n \n\n1,268,479\n\n \n\n  \n\n \n\n784,013\n\n \n\n  \n\n \n\n34,574\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n2,087,066\n\n \n\nCapital expenditures\n\n  \n\n \n\n2,011,361\n\n \n\n  \n\n \n\n2,763,931\n\n \n\n  \n\n \n\n103,242\n\n \n\n  \n\n \n\n(30,492\n\n)\n\n \n\n \n\n4,848,042\n\n \n\n \n\nF-25\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nAs of and for the year ended March 31, 2025\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nAutomotive\n\n \n\n  \n\nFinancial\nservices\n\n \n\n  \n\nAll other\n\n \n\n  \n\nInter-segment\n\nElimination/\n\nUnallocated\n\nAmount\n\n \n\n \n\nConsolidated\n\n \n\nSales revenues\n\n  \n\n  \n\n  \n\n  \n\n \n\nRevenues from external customers\n\n  \n\n \n\n42,996,299\n\n \n\n  \n\n \n\n4,437,827\n\n \n\n  \n\n \n\n602,578\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n48,036,704\n\n \n\nInter-segment revenues and transfers\n\n  \n\n \n\n203,566\n\n \n\n  \n\n \n\n43,353\n\n \n\n  \n\n \n\n844,536\n\n \n\n  \n\n \n\n(1,091,455\n\n)\n\n \n\n \n\n— \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n43,199,865\n\n \n\n  \n\n \n\n4,481,180\n\n \n\n  \n\n \n\n1,447,114\n\n \n\n  \n\n \n\n(1,091,455\n\n)\n\n \n\n \n\n48,036,704\n\n \n\nOperating expenses\n\n  \n\n \n\n39,259,587\n\n \n\n  \n\n \n\n3,797,661\n\n \n\n  \n\n \n\n1,265,920\n\n \n\n  \n\n \n\n(1,082,050\n\n)\n\n \n\n \n\n43,241,118\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating income\n\n  \n\n \n\n3,940,278\n\n \n\n  \n\n \n\n683,519\n\n \n\n  \n\n \n\n181,194\n\n \n\n  \n\n \n\n(9,405\n\n) \n\n \n\n \n\n4,795,586\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal assets\n\n  \n\n \n\n30,117,987\n\n \n\n  \n\n \n\n46,770,786\n\n \n\n  \n\n \n\n2,884,421\n\n \n\n  \n\n \n\n13,828,157\n\n \n\n \n\n \n\n93,601,350\n\n \n\nInvestments accounted for using the equity method\n\n  \n\n \n\n5,201,784\n\n \n\n  \n\n \n\n112,640\n\n \n\n  \n\n \n\n309,121\n\n \n\n  \n\n \n\n174,505\n\n \n\n \n\n \n\n5,798,051\n\n \n\nDepreciation and amortization\n\n  \n\n \n\n1,378,107\n\n \n\n  \n\n \n\n838,167\n\n \n\n  \n\n \n\n34,958\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n2,251,233\n\n \n\nCapital expenditures\n\n  \n\n \n\n2,193,872\n\n \n\n  \n\n \n\n3,687,890\n\n \n\n  \n\n \n\n100,941\n\n \n\n  \n\n \n\n8,565\n\n \n\n \n\n \n\n5,991,268\n\n \n\nAs of and for the year ended March 31, 2026\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nAutomotive\n\n \n\n  \n\nFinancial\nservices\n\n \n\n  \n\nAll other\n\n \n\n  \n\nInter-segment\n\nElimination/\n\nUnallocated\n\nAmount\n\n \n\n \n\nConsolidated\n\n \n\nSales revenues\n\n  \n\n  \n\n  \n\n  \n\n \n\nRevenues from external customers\n\n  \n\n \n\n45,201,924\n\n \n\n  \n\n \n\n4,819,003\n\n \n\n  \n\n \n\n664,026\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n50,684,952\n\n \n\nInter-segment revenues and transfers\n\n  \n\n \n\n215,779\n\n \n\n  \n\n \n\n38,112\n\n \n\n  \n\n \n\n987,387\n\n \n\n  \n\n \n\n(1,241,278\n\n) \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n45,417,703\n\n \n\n  \n\n \n\n4,857,115\n\n \n\n  \n\n \n\n1,651,412\n\n \n\n  \n\n \n\n(1,241,278\n\n)\n\n \n\n \n\n50,684,952\n\n \n\nOperating expenses\n\n  \n\n \n\n42,640,654\n\n \n\n  \n\n \n\n4,005,394\n\n \n\n  \n\n \n\n1,519,333\n\n \n\n  \n\n \n\n(1,246,644\n\n)\n\n \n\n \n\n46,918,736\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating income\n\n  \n\n \n\n2,777,049\n\n \n\n  \n\n \n\n851,722\n\n \n\n  \n\n \n\n132,079\n\n \n\n  \n\n \n\n5,366\n\n \n\n \n\n \n\n3,766,216\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal assets\n\n  \n\n \n\n33,182,372\n\n \n\n  \n\n \n\n53,741,709\n\n \n\n  \n\n \n\n4,066,133\n\n \n\n  \n\n \n\n14,532,118\n\n \n\n \n\n \n\n105,522,331\n\n \n\nInvestments accounted for using the equity method\n\n  \n\n \n\n4,763,577\n\n \n\n  \n\n \n\n124,393\n\n \n\n  \n\n \n\n304,242\n\n \n\n  \n\n \n\n150,336\n\n \n\n \n\n \n\n5,342,548\n\n \n\nDepreciation and amortization\n\n  \n\n \n\n1,417,242\n\n \n\n  \n\n \n\n920,432\n\n \n\n  \n\n \n\n54,846\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n2,392,519\n\n \n\nCapital expenditures\n\n  \n\n \n\n2,453,641\n\n \n\n  \n\n \n\n3,511,937\n\n \n\n  \n\n \n\n64,749\n\n \n\n  \n\n \n\n29,452\n\n \n\n \n\n \n\n6,059,779\n\n \n\nAccounting policies applied by each segment are in conformity with those of Toyota’s consolidated financial statements. Transfers between industry segments are made at individually negotiated prices.\n\nUnallocated amounts included in assets represent assets held for corporate purposes, which mainly consist of cash and cash equivalents and financial assets measured at fair value through other comprehensive income, and balances as of March 31, 2024, 2025 and 2026 are\n\n¥15,790,074 million, ¥15,643,613 million and ¥16,571,156 million, respectively.\n\n \n\nF-26\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(3) Geographic information\n\nRevenues from external customers and\nnon-current\nassets attributable to each country, including the entity’s country of domicile and foreign countries, for the years ended March 31, 2024, 2025 and 2026 are as follows:\n\nRevenues from external customers\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nJapan\n\n  \n\n \n\n10,193,556\n\n \n\n  \n\n \n\n10,719,120\n\n \n\n  \n\n \n\n10,985,614\n\n \n\nUnited States\n\n  \n\n \n\n15,784,361\n\n \n\n  \n\n \n\n16,981,710\n\n \n\n  \n\n \n\n18,493,969\n\n \n\nOther\n\n  \n\n \n\n19,117,407\n\n \n\n  \n\n \n\n20,335,874\n\n \n\n  \n\n \n\n21,205,369\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n45,095,325\n\n \n\n  \n\n \n\n48,036,704\n\n \n\n  \n\n \n\n50,684,952\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nNon-current\nassets\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nJapan\n\n  \n\n \n\n5,827,404\n\n \n\n  \n\n \n\n6,246,879\n\n \n\n  \n\n \n\n6,525,712\n\n \n\nUnited States\n\n  \n\n \n\n6,679,478\n\n \n\n  \n\n \n\n7,242,318\n\n \n\n  \n\n \n\n8,388,696\n\n \n\nOther\n\n  \n\n \n\n3,979,378\n\n \n\n  \n\n \n\n4,214,833\n\n \n\n  \n\n \n\n4,874,091\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n16,486,260\n\n \n\n  \n\n \n\n17,704,029\n\n \n\n  \n\n \n\n19,788,499\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n6. Cash and cash equivalents\n\nCash and cash equivalents consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n  \n\n  2026  \n\n \n\nCash and deposits\n\n  \n \n6,344,691\n \n  \n \n9,077,428\n \n\nNegotiable certificate of deposit and other\n\n  \n \n2,637,713\n \n  \n \n3,582,193\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n 8,982,404\n \n  \n \n 12,659,622\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n7. Trade accounts and other receivables\n\nTrade accounts and other receivables consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nAccounts and notes receivables\n\n  \n \n2,480,370\n \n \n \n2,082,717\n \n\nOther receivables\n\n  \n \n1,236,794\n \n \n \n1,744,175\n \n\nAllowance for doubtful accounts\n\n  \n \n(37,442\n) \n \n \n(30,906\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n 3,679,722\n \n \n \n 3,795,986\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-27\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nTrade accounts and other receivables which are unconditional rights to consideration are classified as financial assets measured at amortized cost. Receivables from contracts with customers correspond to “Accounts and notes receivables” and the balance as of April 1, 2024 is\n\n¥\n2,672,434\n million.\n\nChanges in the allowance for doubtful accounts consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nAllowance for doubtful accounts at beginning of year\n\n  \n \n122,105\n \n \n \n127,296\n \n\nProvision for doubtful accounts, net of reversal\n\n  \n \n9,835\n \n \n \n8,060\n \n\nWrite-offs\n\n  \n \n(3,128\n)\n \n \n(9,646\n)\n\nOther\n\n  \n \n(1,516\n) \n \n \n(7,850\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for doubtful accounts at end of year\n\n  \n \n   127,296\n \n \n \n   117,860\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Other” includes currency translation adjustments and transfers to\na\nssets held for sale.\n\nA portion of the allowance for doubtful accounts is attributed to certain\nnon-current\nreceivable balances which are reported as other financial assets under\nnon-current\nassets.\n\n8. Finance receivables\n\nFinance receivables consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nRetail\n\n  \n \n27,638,021\n \n \n \n31,837,922\n \n\nFinance leases\n\n  \n \n3,437,970\n \n \n \n4,154,650\n \n\nWholesale and other dealer loans\n\n  \n \n4,902,537\n \n \n \n5,821,931\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n35,978,528\n \n \n \n41,814,504\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred origination costs\n\n  \n \n446,538\n \n \n \n475,032\n \n\nLess - Unearned income\n\n  \n \n(2,349,215\n)\n \n \n(2,820,138\n)\n\nLess - Allowance for credit losses\n\n  \n\n \n\nRetail\n\n  \n \n(356,304\n) \n \n \n(382,152\n)\n\nFinance leases\n\n  \n \n(56,721\n)\n \n \n(67,560\n)\n \n\nWholesale and other dealer loans\n\n  \n \n(37,791\n)\n \n \n(53,031\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal finance receivables, net\n\n  \n \n33,625,035\n \n \n \n38,966,655\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCurrent assets\n\n  \n \n11,453,249\n \n \n \n13,478,474\n \n\nNon-current\nassets\n\n  \n \n22,171,786\n \n \n \n25,488,182\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal finance receivables, net\n\n  \n \n33,625,035\n \n \n \n38,966,655\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-28\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nFinance receivables were geographically distributed as follows:\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\nNorth America\n\n  \n \n53.9\n% \n \n \n52.2\n% \n\nEurope\n\n  \n \n15.0\n \n \n \n15.4\n \n\nAsia\n\n  \n \n11.7\n \n \n \n11.4\n \n\nJapan\n\n  \n \n8.9\n \n \n \n10.0\n \n\nOther\n\n  \n \n   10.5\n \n \n \n11.0\n \n\nFinance receivables are classified as financial assets measured at amortized cost.\n\nThe contractual maturity of retail receivables, future lease payments to be received for finance leases, and wholesale receivables and other dealer loans are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nRetail\n\n \n  \n\nFinance leases\n\n \n  \n\nWholesale and other\n\ndealer loans\n\n \n\nWithin 1 year\n\n  \n \n7,518,918\n \n  \n \n1,041,282\n \n  \n \n3,617,276\n \n\nBetween 1 and 2 years\n\n  \n \n6,317,972\n \n  \n \n745,842\n \n  \n \n367,663\n \n\nBetween 2 and 3 years\n\n  \n \n5,500,349\n \n  \n \n576,552\n \n  \n \n231,623\n \n\nBetween 3 and 4 years\n\n  \n \n4,265,070\n \n  \n \n320,721\n \n  \n \n162,658\n \n\nBetween 4 and 5 years\n\n  \n \n2,623,094\n \n  \n \n101,389\n \n  \n \n119,871\n \n\nLater than 5 years\n\n  \n \n1,412,619\n \n  \n \n28,371\n \n  \n \n403,444\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n27,638,021\n \n  \n \n2,814,157\n \n  \n \n4,902,537\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nRetail\n\n \n  \n\nFinance leases\n\n \n  \n\nWholesale and other\n\ndealer loans\n\n \n\nWithin 1 year\n\n  \n \n8,659,405\n \n  \n \n1,248,720\n \n  \n \n4,481,525\n \n\nBetween 1 and 2 years\n\n  \n \n7,365,657\n \n  \n \n904,612\n \n  \n \n452,366\n \n\nBetween 2 and 3 years\n\n  \n \n6,372,603\n \n  \n \n681,364\n \n  \n \n233,452\n \n\nBetween 3 and 4 years\n\n  \n \n4,916,999\n \n  \n \n338,381\n \n  \n \n168,333\n \n\nBetween 4 and 5 years\n\n  \n \n2,841,501\n \n  \n \n126,279\n \n  \n \n134,005\n \n\nLater than 5 years\n\n  \n \n1,681,757\n \n  \n \n31,306\n \n  \n \n352,251\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n31,837,922\n \n  \n \n3,330,663\n \n  \n \n5,821,931\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-29\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nFinance leases receivables consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nLease payments\n\n  \n \n2,814,157\n \n \n \n3,330,663\n \n\nEstimated unguaranteed residual values\n\n  \n \n623,812\n \n \n \n823,988\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n3,437,970\n \n \n \n4,154,650\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred origination costs\n\n  \n \n25,342\n \n \n \n32,556\n \n\nLess - Unearned income\n\n  \n \n(372,987\n) \n \n \n(435,157\n\n)\n\nLess - Allowance for credit losses\n\n  \n \n(56,721\n)\n \n \n(67,560\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFinance leases receivables, net\n\n  \n \n3,033,603\n \n \n \n3,684,489\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n9. Other financial assets\n\nOther financial assets consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nFinancial assets measured at amortized cost\n\n  \n\n  \n\nTime deposits\n\n  \n \n2,264,841\n \n  \n \n988,027\n \n\nOther\n\n  \n \n837,954\n \n  \n \n752,598\n \n\nFinancial assets measured at fair value through profit or loss\n\n  \n\n  \n\nPublic and corporate bonds\n\n  \n \n231,713\n \n  \n \n267,623\n \n\nStocks\n\n  \n \n46,215\n \n  \n \n884,667\n \n\nInvestment trusts\n\n  \n \n618,228\n \n  \n \n648,189\n \n\nDerivatives\n\n  \n \n483,378\n \n  \n \n479,447\n \n\nFinancial assets measured at fair value through other comprehensive income\n\n  \n\n  \n\nPublic and corporate bonds\n\n  \n \n9,078,437\n \n  \n \n7,533,460\n \n\nStocks\n\n  \n \n3,246,885\n \n  \n \n3,554,379\n \n\nOther\n\n  \n \n10,947\n \n  \n \n9,855\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n16,818,600\n \n  \n \n15,118,244\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCurrent assets\n\n  \n \n6,935,759\n \n  \n \n3,982,445\n \n\nNon-current\nassets\n\n  \n \n9,882,841\n \n  \n \n11,135,799\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n16,818,600\n \n  \n \n15,118,244\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nToyota has certain financial instruments, including financial assets and liabilities which arose in the normal course of business. These financial instruments are executed with creditworthy financial institutions and other appropriate issuers, and virtually all foreign currency contracts are denominated in U.S. dollars, euros and other currencies of major developed countries. Financial instruments involve, to varying degrees, market risk as instruments are subject to price fluctuations, and elements of credit risk in the event a counterparty should default. In the unlikely event the counterparties fail to meet the contractual terms of a foreign currency or an interest rate instrument, Toyota’s risk is limited to the fair value of the instrument. Although Toyota may be exposed to losses in the event of\nnon-performance\nby counterparties on financial instruments, it does not\n\n \n\nF-30\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nanticipate significant losses due to the nature of its counterparties. Counterparties to Toyota’s financial instruments represent, in general, international financial institutions and other appropriate issuers. Additionally, Toyota does not have significant exposure to any individual counterparty. Toyota believes that the overall credit risk related to its financial instruments is not significant.\n\nPublic and corporate bonds included in financial assets measured at fair value through other comprehensive income include securities loaned of ¥\n623,223\n million and ¥\n2,594,946\n million as of March 31, 2025 and 2026, respectively.\n\nMajor securities included in stocks measured at fair value through other comprehensive income as of March 31, 2025 and 2026 are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\nIssue\n\n  \n\n2025\n\n \n  \n\n2026\n\n \n\nKDDI CORPORATION\n\n  \n \n  959,347\n \n  \n \n  989,627\n \n\nNTT, Inc.\n\n  \n \n292,242\n \n  \n \n317,487\n \n\nMS&AD Insurance Group Holdings, Inc.\n\n  \n \n340,482\n \n  \n \n283,836\n \n\nMitsubishi UFJ Financial Group, Inc.\n\n  \n \n206,749\n \n  \n \n267,304\n \n\nSUZUKI MOTOR CORPORATION\n\n  \n \n173,760\n \n  \n \n180,048\n \n\nTo facilitate the efficient and effective utilization of assets, Toyota derecognizes stocks measured at fair value through other comprehensive income by way of sale. Fair value and total accumulated other comprehensive income at derecognition are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nTotal fair value\n\n  \n \n    681,271\n \n  \n \n    277,319\n \n\nAccumulated other comprehensive income, net\n\n  \n \n512,976\n \n  \n \n217,516\n \n\n10. Inventories\n\nInventories consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nProducts\n\n  \n \n2,875,405\n \n  \n \n3,208,980\n \n\nWork in process\n\n  \n \n486,552\n \n  \n \n626,422\n \n\nRaw materials\n\n  \n \n1,013,621\n \n  \n \n1,050,559\n \n\nSupplies and other\n\n  \n \n222,654\n \n  \n \n249,034\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n4,598,232\n \n  \n \n5,134,996\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-31\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n11. Assets held for sale\n\n(1) The business integration of Mitsubishi Fuso Truck and Bus Corporation and Hino Motors, Ltd.\n\nAs of the effective date of the business integration between Mitsubishi Fuso Truck and Bus Corporation (“MFTBC”) and Hino Motors, Ltd. (“Hino”) (automotive segment) (April 1, 2026), Hino is no longer a consolidated subsidiary of Toyota.\n\nThe assets, liabilities, and related other comprehensive income of Hino and its consolidated subsidiaries have been reclassified as held for sale, and are presented at the end of the year ended March 31, 2026 as assets held for sale, liabilities directly associated with assets held for sale, and other comprehensive income associated with assets held for sale. However, assets and liabilities related to Hino’s Hamura plant are not classified as held for sale because that plant will become a consolidated subsidiary of Toyota before the business integration in the year ending March 31, 2027 as Toyota Motor Hamura, Inc.\n\nAmong the disposal group classified as held for sale, some land parcels had a fair value less costs to sell that was below their carrying amount. Accordingly, these assets were measured at fair value less costs to sell. A loss of ¥2,995 million recognized as a result was recorded under “Selling, General and Administrative Expenses” on the consolidated statement of income. The fair value measurement is classified as Level 3 in the fair value hierarchy.\n\n(2) Review of capital relationship with Toyota Industries Corporation\n\nOn March 24, 2026, Toyota Fudosan Co., Ltd. completed a tender offer for the shares of Toyota Industries Corporation (“Toyota Industries”) (automotive segment). Because a squeeze-out procedure and the planned sale of the Toyota Industries shares held by Toyota are expected to be completed in the year ending March 31, 2027, Toyota has reclassified its holdings of Toyota Industries shares and related other comprehensive income as held for sale. Accordingly, at the end of the year ended March 31, 2026, investments accounted for using the equity method totaling ¥788,898 million were included in assets held for sale, and related other comprehensive income of ¥264,035 million (Net changes in revaluation of financial assets measured at fair value through other comprehensive income of ¥155,804 million and\ne\nxchange differences on translating foreign operations of ¥108,231 million) was included in other comprehensive income related to assets held for sale.\n\nBecause the fair value less costs to sell (the expected sale price) in this share transfer exceeds the carrying amount, the disposal group classified as held for sale is measured at its carrying amount. The fair value measurement is classified as Level 3 in the fair value hierarchy.\n\n \n\nF-32\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe breakdown of assets held for sale at the end of the year ended March 31, 2026, together with the related liabilities and other comprehensive income, is as follows:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n  \n\n 2025 \n\n \n  \n\n 2026 \n\n \n\nAssets held for sale\n\n  \n\n  \n\nCash and cash equivalents\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n115,932\n\n \n\nTrade accounts and other receivables\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n229,138\n\n \n\nInventories\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n230,229\n\n \n\nInvestments accounted for using the equity method\n\n  \n\n— \n\n  \n\n \n\n800,635\n\n \n\nProperty, plant and equipment\n\n  \n\n  \n\nLand\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n165,526\n\n \n\nBuildings\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n428,406\n\n \n\nMachinery and equipment\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n698,884\n\n \n\nOther property, plant and equipment\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n16,154\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal property, plant and equipment, at cost\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n1,308,970\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nLess - Accumulated depreciation and impairment losses\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n(826,852\n\n) \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal property, plant and equipment, net\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n482,118\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nOther assets\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n158,752\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n2,016,804\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nLiabilities directly associated with assets held for sale\n\n  \n\n  \n\nTrade accounts and other payables\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n227,966\n\n \n\nShort-term and current portion of long-term debt\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n142,256\n\n \n\nAccrued expenses\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n86,007\n\n \n\nLiabilities for quality assurance\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n104,227\n\n \n\nLong-term debt\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n21,317\n\n \n\nOther liabilities\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n112,774\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n694,547\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nOther comprehensive income associated with assets held for sale\n\n  \n\n  \n\nOther components of equity\n\n  \n\n  \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n148,535\n\n \n\nExchange differences on translating foreign operations\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n118,061\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n266,596\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\nF-33\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n12. Investments accounted for using the equity method\n\nEquity in associates and joint ventures is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nAssociates\n\n  \n \n4,887,674\n \n  \n \n4,218,009\n \n\nJoint ventures\n\n  \n \n910,377\n \n  \n \n1,124,539\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n5,798,051\n \n  \n \n5,342,548\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe combined information of investments accounted for using the equity method (total value of TMC’s interests) is as follows:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nNet income\n\n  \n\n  \n\n  \n\nAssociates\n\n  \n \n478,405\n \n  \n \n466,473\n \n  \n \n404,437\n \n\nJoint ventures\n\n  \n \n284,732\n \n  \n \n124,747\n \n  \n \n148,305\n \n\nTotal\n\n  \n \n763,137\n \n  \n \n591,219\n \n  \n \n552,742\n \n\nOther comprehensive income, net of tax\n\n  \n\n  \n\n  \n\nAssociates\n\n  \n \n269,753\n \n  \n \n55,415\n \n  \n \n109,968\n \n\nJoint ventures\n\n  \n \n52,361\n \n  \n \n2,712\n \n  \n \n73,812\n \n\nTotal\n\n  \n \n322,114\n \n  \n \n58,127\n \n  \n \n183,780\n \n\nComprehensive income\n\n  \n\n  \n\n  \n\nAssociates\n\n  \n \n748,158\n \n  \n \n521,888\n \n  \n \n514,405\n \n\nJoint ventures\n\n  \n \n337,093\n \n  \n \n127,459\n \n  \n \n222,117\n \n\nTotal\n\n  \n \n1,085,251\n \n  \n \n649,347\n \n  \n \n736,522\n \n\n \n\nF-34\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n13. Property, plant and equipment\n\nThe changes in cost and accumulated depreciation and impairment losses are as follows:\n\n(Cost)\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n\nLand\n\n \n \n\nBuildings\n\n \n \n\nMachinery and\n\nequipment\n\n \n \n\nVehicles and\nequipment on\noperating leases\n\n \n \n\nConstruction\nin progress\n\n \n \n\nTotal\n\n \n\nBalance as of April 1, 2024\n\n \n \n1,441,811\n \n \n \n 5,884,749\n \n \n \n 16,469,032\n \n \n \n7,523,911\n \n \n \n1,040,188\n \n \n \n 32,359,692\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdditions\n\n \n \n7,622\n \n \n \n74,469\n \n \n \n295,719\n \n \n \n3,866,922\n \n \n \n1,501,327\n \n \n \n5,746,060\n \n\nSales or disposal\n\n \n \n(22,255\n)\n \n \n(60,228\n)\n \n \n(561,258\n)\n \n \n(3,185,673\n)\n \n \n(22,473\n) \n \n \n(3,851,888\n)\n\nReclassification from construction in progress\n\n \n \n15,842\n \n \n \n292,601\n \n \n \n572,844\n \n \n \n187\n \n \n \n(881,473\n)\n \n \n— \n \n\nForeign currency translation adjustments\n\n \n \n41\n \n \n \n(47,461\n)\n \n \n(154,892\n)\n \n \n(94,981\n)\n \n \n(19,444\n)\n \n \n(316,737\n)\n\nOther\n\n \n \n(14,940\n)\n \n \n25,932\n \n \n \n(202\n)\n \n \n(58,420\n)\n \n \n(21,979\n)\n \n \n(69,609\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2025\n\n \n \n1,428,122\n \n \n \n6,170,063\n \n \n \n16,621,243\n \n \n \n8,051,945\n \n \n \n1,596,145\n \n \n \n33,867,518\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdditions\n\n \n \n5,806\n \n \n \n122,961\n \n \n \n468,039\n \n \n \n3,657,892\n \n \n \n1,503,710\n \n \n \n5,758,408\n \n\nSales or disposal\n\n \n \n(2,901\n)\n \n \n(69,841\n)\n \n \n(615,221\n)\n \n \n(2,620,534\n)\n \n \n(44,327\n)\n \n \n(3,352,824\n)\n\nReclassification from construction in progress\n\n \n \n57,729\n \n \n \n312,901\n \n \n \n882,157\n \n \n \n55\n \n \n \n(1,252,842\n)\n \n \n— \n \n\nForeign currency translation adjustments\n\n \n \n27,751\n \n \n \n184,418\n \n \n \n865,647\n \n \n \n677,356\n \n \n \n89,663\n \n \n \n1,844,836\n \n\nTransfer to assets held for sale\n\n \n \n(165,526\n) \n \n \n(428,406\n) \n \n \n(698,884\n) \n \n \n(652\n) \n \n \n(15,502\n) \n \n \n(1,308,970\n) \n\nOther\n\n \n \n644\n \n \n \n(7,190\n)\n \n \n(13,603\n)\n \n \n(60,414\n)\n \n \n(157,040\n)\n \n \n(237,603\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2026\n\n \n \n1,351,625\n \n \n \n6,284,907\n \n \n \n17,509,377\n \n \n \n9,705,647\n \n \n \n1,719,808\n \n \n \n36,571,364\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-3\n\n5\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(Accumulated depreciation and impairment losses)\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n\nLand\n\n \n \n\nBuildings\n\n \n \n\nMachinery and\n\nequipment\n\n \n \n\nVehicles and\nequipment on\noperating leases\n\n \n \n\nConstruction\nin progress\n\n \n \n\nTotal\n\n \n\nBalance as of April 1, 2024\n\n \n \n(6,985\n) \n \n \n(3,753,786\n) \n \n \n(12,719,614\n) \n \n \n(1,619,009\n) \n \n \n(2,510\n) \n \n \n(18,101,905\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDepreciation\n\n \n \n— \n \n \n \n(169,778\n)\n \n \n(1,039,696\n)\n \n \n(896,127\n)\n \n \n— \n \n \n \n(2,105,601\n)\n\nImpairment losses\n\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nSales or disposal\n\n \n \n1,244\n \n \n \n52,062\n \n \n \n516,767\n \n \n \n983,818\n \n \n \n— \n \n \n \n1,553,891\n \n\nForeign currency translation adjustments\n\n \n \n(94\n)\n \n \n30,142\n \n \n \n109,227\n \n \n \n15,759\n \n \n \n55\n \n \n \n155,090\n \n\nOther\n\n \n \n(1,091\n)\n \n \n(25,678\n)\n \n \n(24,281\n)\n \n \n16,972\n \n \n \n(1,223\n)\n \n \n(35,301\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2025\n\n \n \n(6,927\n)\n \n \n(3,867,037\n)\n \n \n(13,157,598\n)\n \n \n(1,498,586\n)\n \n \n(3,678\n)\n \n \n(18,533,826\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation\n\n \n \n— \n \n \n \n(219,752\n)\n \n \n(1,015,844\n)\n \n \n(980,258\n)\n \n \n— \n \n \n \n(2,215,854\n)\n\nImpairment losses\n\n \n \n— \n \n \n \n\n(3,981\n\n)\n \n \n \n\n(4,844\n\n)\n\n \n \n— \n \n \n \n— \n \n \n \n\n(8,825\n\n)\n \n\nSales or disposal\n\n \n \n494\n \n \n \n59,041\n \n \n \n540,537\n \n \n \n745,050\n \n \n \n— \n \n \n \n1,345,122\n \n\nForeign currency translation adjustments\n\n \n \n(262\n)\n \n \n(110,778\n)\n \n \n(671,336\n)\n \n \n(117,577\n)\n \n \n(63\n)\n \n \n(900,016\n)\n\nTransfer to assets held for sale\n\n \n \n424\n \n \n \n260,039\n \n \n \n566,214\n \n \n \n4\n \n \n \n172\n \n \n \n826,852\n \n\nOther\n\n \n \n(794\n)\n \n \n(2,135\n)\n \n \n(16,190\n)\n \n \n1,273\n \n \n \n393\n \n \n \n(17,453\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2026 . .\n\n \n \n(7,065\n)\n \n \n(3,884,604\n)\n \n \n(13,759,061\n)\n \n \n(1,850,094\n)\n \n \n(3,175\n)\n \n \n(19,504,000\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDepreciation on “Property, plant and equipment” is included in “Cost of products sold” and “Selling, general and administrative” in the consolidated statement of income.\n\nVehicles and equipment on operating leases consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nVehicles\n\n  \n \n7,996,894\n \n \n \n9,644,572\n \n\nEquipment\n\n  \n \n55,051\n \n \n \n61,076\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n8,051,945\n \n \n \n9,705,647\n \n\nLess - Accumulated depreciation\n\n  \n \n(1,498,586\n) \n \n \n(1,850,094\n)\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nVehicles and equipment on operating leases, net\n\n  \n \n6,553,359\n \n \n \n7,855,554\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-3\n\n6\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe following table presents future lease payments to be received for vehicles and equipment on operating leases:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nWithin 1 year\n\n  \n \n1,200,378\n \n  \n \n1,403,807\n \n\nBetween 1 and 2 years\n\n  \n \n837,956\n \n  \n \n923,554\n \n\nBetween 2 and 3 years\n\n  \n \n374,459\n \n  \n \n407,306\n \n\nBetween 3 and 4 years\n\n  \n \n93,396\n \n  \n \n105,642\n \n\nBetween 4 and 5 years\n\n  \n \n35,953\n \n  \n \n40,106\n \n\nLater than 5 years\n\n  \n \n17,235\n \n  \n \n20,762\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal future rentals\n\n  \n \n 2,559,377\n \n  \n \n 2,901,178\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe future lease payments to be received as shown above should not be considered indicative of future cash collections.\n\nRight of use assets that are held as rental assets included within “Vehicles and equipment on operating leases, net” are ¥4,664,376 million and ¥5,546,865 million, as of March 31, 2025 and 2026, respectively. Furthermore, these right of use assets were fully paid in cash at the time of acquisition, and since the increase in these right of use assets is equal to the cash outflow, no lease liabilities relating to these right of use assets are recognized. The additions and total cash outflows for these right of use assets for the years ended March 31, 2025 and 2026, were ¥2,909,058 million and ¥2,654,403 million, respectively. Depreciation expenses for these right of use assets for the years ended March 31, 2024, 2025 and 2026, were ¥612,569 million, ¥617,495 million and ¥658,046 million, respectively. Depreciation on these right of use assets is included in “Cost of financing services” in the consolidated statement of income. Revenue from subleasing these right of use assets was ¥947,058 million, ¥1,008,634 million and ¥1,101,911 million for the years ended March 31, 2024, 2025 and 2026, respectively. Please see Note 14 about the status of lessee leases other than “Vehicles and equipment on operating leases, net”.\n\n14. Right of use assets and lease liabilities\n\nThe breakdown of right of use assets is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nTypes of original assets\n\n  \n\n \n\nLand\n\n  \n \n73,694\n \n \n \n73,425\n \n\nBuildings\n\n  \n \n355,489\n \n \n \n460,788\n\nOther\n\n  \n \n153,885\n \n \n \n367,019\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n583,068\n  \n \n \n901,232\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe increase in the right of use assets for the years ended March 31, 2025 and 2026 were ¥164,348 million and ¥549,798 million, respectively.\n\n \n\nF-3\n\n7\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe breakdown of main gains and losses on lessee’s leases is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n 2024 \n\n \n  \n\n 2025 \n\n \n  \n\n 2026 \n\n \n\nDepreciation of right of use assets\n\n  \n\n  \n\n  \n\nLand\n\n  \n \n9,699\n \n  \n \n5,094\n \n  \n \n7,796\n \n\nBuildings\n\n  \n \n69,962\n \n  \n \n52,178\n \n  \n \n55,911\n \n\nOther\n\n  \n \n42,038\n \n  \n \n43,566\n \n  \n \n158,164\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n121,698\n \n  \n \n100,838\n \n  \n \n221,871\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nInterest expense on lease liabilities\n\n  \n \n6,152\n \n  \n \n4,331\n \n  \n \n5,023\n \n\nShort-term leases\n\n  \n \n103,544\n \n  \n \n117,834\n \n  \n \n124,636\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n      231,394\n \n  \n \n      223,003\n \n  \n \n      351,531\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFor the years ended March 31, 2025 and 2026, total cash outflows for lessee leases were ¥208,414 million and ¥484,931 million, respectively.\n\nThe following is the maturity analysis of the total future lease payments and the adjustment to present value:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nWithin 1 year\n\n  \n \n102,412\n \n \n \n194,791\n \n\nBetween 1 and 5 years\n\n  \n \n253,854\n \n \n \n289,591\n \n\nLater than 5 years\n\n  \n \n273,747\n \n \n \n361,683\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFuture lease payment, total\n\n  \n \n 630,013\n \n \n \n 846,065\n \n\nLess - Interest expense\n\n  \n \n(96,662\n) \n \n \n(135,052\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nPresent value of lease payment, total\n\n  \n \n533,351\n \n \n \n711,013\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCurrent liabilities\n\n  \n \n92,147\n \n \n \n163,435\n \n\nNon-current\nliabilities\n\n  \n \n441,204\n \n \n \n547,578\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nPresent value of lease payment, total\n\n  \n \n533,351\n \n \n \n711,013\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n1\n5\n. Intangible assets\n\nThe carrying value of intangible assets is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n 2025 \n\n \n \n\n 2026 \n\n \n\nCapitalized development costs\n\n  \n \n582,606\n \n \n \n523,437\n \n\nSoftware and other\n\n  \n \n780,660\n \n \n \n869,318\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n  1,363,266\n  \n \n \n  1,392,755\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-3\n\n8\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nChanges in cost and accumulated amortization of intangible assets are as follows:\n\n(Cost)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nCapitalized\n\ndevelopment costs\n\n \n \n\nSoftware and other\n\n \n \n\nTotal\n\n \n\nBalance as of April 1, 2024\n\n  \n \n1,058,334\n \n \n \n1,139,895\n \n \n \n2,198,228\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdditions\n\n  \n \n— \n \n \n \n60,914\n \n \n \n60,914\n \n\nInternally developed\n\n  \n \n111,546\n \n \n \n189,229\n \n \n \n300,775\n \n\nSales or disposal\n\n  \n \n(98,495\n) \n \n \n(158,523\n) \n \n \n(257,018\n)\n\nForeign currency translation adjustments\n\n  \n \n(564\n)\n \n \n(4,850\n)\n \n \n(5,414\n)\n \n\nOther\n\n  \n \n(3,839\n)\n \n \n(23,210\n)\n \n \n(27,050\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2025\n\n  \n \n1,066,981\n \n \n \n1,203,454\n \n \n \n2,270,435\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAdditions\n\n  \n \n— \n \n \n \n102,039\n \n \n \n102,039\n \n\nInternally developed\n\n  \n \n106,751\n \n \n \n216,060\n \n \n \n322,812\n \n\nSales or disposal\n\n  \n \n(149,833\n)\n \n \n(148,545\n)\n \n \n(298,378\n)\n\nForeign currency translation adjustments\n\n  \n \n3,093\n \n \n \n32,538\n \n \n \n35,631\n \n\nOther\n\n  \n \n(40,490\n)\n \n \n(19,240\n)\n \n \n(59,730\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2026\n\n  \n \n986,503\n \n \n \n1,386,306\n \n \n \n2,372,808\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n(Accumulated amortization)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nCapitalized\n\ndevelopment costs\n\n \n \n\nSoftware and other\n\n \n \n\nTotal\n\n \n\nBalance as of April 1, 2024\n\n  \n \n(419,997\n) \n \n \n(422,905\n) \n \n \n(842,902\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAmortization\n\n  \n \n(162,068\n)\n \n \n(145,632\n)\n \n \n(307,700\n)\n\nSales or disposal\n\n  \n \n 98,495\n \n \n \n144,423\n \n \n \n242,919\n \n\nForeign currency translation adjustments\n\n  \n \n— \n \n \n \n2,577\n \n \n \n2,577\n \n\nOther\n\n  \n \n805\n \n \n \n(1,257\n)\n \n \n(2,062\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2025\n\n  \n \n(484,375\n)\n \n \n(422,794\n)\n \n \n(907,169\n)\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization\n\n  \n \n(151,780\n)\n \n \n(177,862\n)\n \n \n(329,643\n)\n\nSales or disposal\n\n  \n \n149,833\n \n \n \n99,267\n \n \n \n249,100\n \n\nForeign currency translation adjustments\n\n  \n \n— \n \n \n \n(17,198\n)\n \n \n(17,198\n)\n\nOther\n\n  \n \n23,257\n \n \n \n1,600\n \n \n \n24,857\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of March 31, 2026\n\n  \n \n(463,066\n)\n \n \n(516,987\n)\n \n \n(980,053\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAmortization of intangible assets is included in “Cost of products sold” and “Selling, general and administrative” in the consolidated statement of income. “Other” includes transfers to assets held for sale. There are no material internally generated intangible assets except for capitalized development costs.\n\n \n\nF-3\n\n9\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n16. Income taxes\n\n(1) Deferred tax assets and liabilities\n\nSignificant components of deferred tax assets and liabilities are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nDeferred tax assets\n\n  \n\n \n\nDefined benefit plan liabilities\n\n  \n \n156,650\n \n \n \n177,494\n \n\nAccrued expenses and liabilities for quality assurance\n\n  \n \n821,680\n \n \n \n886,672\n \n\nOther accrued employees’ compensation\n\n  \n \n146,548\n \n \n \n160,993\n \n\nOperating loss carryforwards for tax purposes\n\n  \n \n44,324\n \n \n \n357,926\n \n\nAllowance for doubtful accounts and credit losses\n\n  \n \n115,209\n \n \n \n130,858\n \n\nProperty, plant and equipment and other assets\n\n  \n \n340,410\n \n \n \n339,623\n \n\nOther\n\n  \n \n504,892\n \n \n \n853,359\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal deferred tax assets\n\n  \n \n2,129,712\n \n \n \n2,906,926\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred tax liabilities\n\n  \n\n \n\nChanges in fair value of financial instruments measured in other comprehensive income\n\n  \n \n(727,581\n)\n \n \n(751,808\n)\n\nUndistributed earnings of foreign subsidiaries\n\n  \n \n(63,179\n)\n \n \n(48,979\n)\n\nUndistributed earnings of associates and joint ventures\n\n  \n \n(1,223,489\n)\n \n \n(1,289,418\n)\n\nBasis difference of acquired assets\n\n  \n \n(71,386\n)\n \n \n(90,855\n)\n\nCapitalized development costs\n\n  \n \n(181,775\n)\n \n \n(171,315\n)\n\nLease transactions\n\n  \n \n(860,487\n)\n \n \n(1,337,570\n)\n\nOther\n\n  \n \n(143,379\n)\n \n \n(245,890\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal deferred tax liabilities\n\n  \n \n(3,271,276\n)\n \n \n(3,935,835\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet deferred tax assets and liabilities\n\n  \n \n(1,141,564\n)\n \n \n(1,028,909\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe “Other” category of deferred tax assets primarily comprises adjustments related to\nu\nnrecognized tax benefits adjustments (¥402,889 million in the year ended March 31, 2026).\n\n \n\nF-\n\n40\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nOf the changes in deferred tax assets and deferred tax liabilities for the years ended March 31, 2024, 2025 and 2026, the amount recognized as income tax expense in the consolidated statement of income is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\nDefined benefit plan liabilities\n\n  \n \n(4,333\n) \n \n \n3,093\n \n \n \n45,291\n \n\nAccrued expenses and liabilities for quality assurance\n\n  \n \n40,626\n \n \n \n108,554\n \n \n \n29,633\n \n\nOther accrued employees’ compensation\n\n  \n \n6,925\n \n \n \n8,930\n \n \n \n11,769\n \n\nOperating loss carryforwards for tax purposes\n\n  \n \n(133,776\n)\n \n \n(5,609\n) \n \n \n291,709\n \n\nAllowance for doubtful accounts and credit losses\n\n  \n \n(551\n)\n \n \n11,776\n \n \n \n5,347\n \n\nProperty, plant and equipment and other assets\n\n  \n \n11,518\n \n \n \n49,177\n \n \n \n1,070\n \n\nUndistributed earnings of foreign subsidiaries\n\n  \n \n(2,869\n)\n \n \n(20,814\n)\n \n \n14,200\n \n\nUndistributed earnings of associates and joint ventures\n\n  \n \n(43,526\n)\n \n \n(54,492\n)\n \n \n(30,316\n) \n\nBasis difference of acquired assets\n\n  \n \n1,152\n \n \n \n10,991\n \n \n \n(15,541\n) \n\nCapitalized development costs\n\n  \n \n12,824\n \n \n \n7,815\n \n \n \n  10,460\n \n\nLease transactions\n\n  \n \n186,196\n \n \n \n18,780\n \n \n \n(398,554\n) \n\nOther\n\n  \n \n88,582\n \n \n \n (25,114\n)\n \n \n340,621\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n\n \n162,768\n \n \n \n\n \n113,087\n \n \n \n305,691\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe “Other” category primarily comprises adjustments related to\nu\nnrecognized tax benefits adjustments (¥279,486 million in the year ended March 31, 2026).\n\nDeductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset are recognized in the statement of financial position:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\n \n  \n \n \n  \n \n \n\nDeductible temporary difference\n\n  \n \n1,944,948\n \n  \n \n1,598,404\n  \n\nCarryforwards of tax losses\n\n  \n \n841,136\n \n  \n \n978,821\n \n\nCarryforwards of tax credit\n\n  \n \n61,687\n \n  \n \n86,395\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n2,847,770\n \n  \n \n2,663,620\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe expected expiration date of the carryforwards of tax losses for which deferred tax assets are not recognized are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\n \n  \n \n \n  \n \n \n\nWithin 5 years\n\n  \n \n4,323\n \n  \n \n53,099\n \n\nBetween 5 and 10 years\n\n  \n \n319,631\n \n  \n \n313,330\n \n \n\nLater than 10 years\n\n  \n \n517,182\n \n  \n \n612,392\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n841,136\n \n  \n \n978,821\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-41\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe expected expiration date of the carryforwards of tax credit for which deferred tax assets are not recognized are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n  \n \n \n \n \n \n\nWithin 5 years\n\n  \n \n3,778\n  \n \n \n6,202\n \n\nBetween 5 and 10 years\n\n  \n \n3,878\n \n \n \n8,293\n \n\nLater than 10 years\n\n  \n \n54,031\n \n \n \n71,900\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n61,687\n \n \n \n86,395\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOf the temporary differences in investments in foreign subsidiaries, because management intends to reinvest undistributed earnings of foreign subsidiaries in the foreseeable future, no deferred tax liability is recognized. As of March 31, 2025 and 2026, temporary differences totaled ¥\n5,667,006 \nmillion and ¥5,237,041 million, respectively, and Toyota estimates an additional deferred tax liability of ¥\n245,292 million and ¥328,627 million would be required, respectively, if the full amount of those undistributed earnings were remitted.\n\n(2) Income tax expenses\n\nIncome tax expense for the years ended March 31, 2024, 2025 and 2026 consists of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n\nCurrent income tax expense:\n\n  \n\n  \n\n \n\nTMC and domestic subsidiaries\n\n  \n \n1,432,299\n \n  \n \n965,512\n \n \n \n1,053,788\n \n\nForeign subsidiaries\n\n  \n \n624,134\n \n  \n \n772,410\n \n \n \n419,137\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal current\n\n  \n \n2,056,433\n \n  \n \n1,737,922\n \n \n \n1,472,925\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred income tax expense (benefit):\n\n  \n\n  \n\n \n\nTMC and domestic subsidiaries\n\n  \n \n(42,906\n)\n  \n \n(131,329\n)\n \n \n(376,104\n)\n \n\nForeign subsidiaries\n\n  \n \n(119,862\n)\n  \n \n18,242\n \n \n \n70,413\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal deferred\n\n  \n \n(162,768\n)\n  \n \n(113,087\n)\n \n \n(305,691\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal income tax expense\n\n  \n \n1,893,665\n \n  \n \n1,624,835\n \n \n \n1,167,234\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n42\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nToyota is subject to a number of different income taxes which, in the aggregate, indicate a statutory rate in Japan of approximately 30.9% for the years ended March 31, 2024, 2025 and 2026. The statutory tax rates in effect for the year in which the temporary differences are expected to reverse are used to calculate the tax effects of temporary differences which are expected to reverse in future years. Reconciliation of the differences between the statutory tax rate and the average effective tax rate is as follows:\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n \n \n \n \n \n \n \n \n\nStatutory tax rate\n\n  \n \n30.9\n% \n \n \n30.9\n% \n \n \n30.9\n% \n\nIncrease (reduction) in taxes resulting from:\n\n  \n\n \n\n \n\nNon-deductible\nexpenses\n\n  \n \n0.3\n \n \n \n0.8\n \n \n \n0.8\n \n\nTax-exempt\nincome\n\n  \n \n(0.2\n)\n \n \n(0.6\n)\n \n \n(0.3\n)\n\nDeferred tax liabilities on undistributed earnings of foreign subsidiaries\n\n  \n \n0.6\n \n \n \n1.0\n \n \n \n1.0\n \n\nEffects of investments accounted for using the equity\nmethod\n\n  \n \n(3.4\n)\n \n \n(2.8\n)\n \n \n(3.3\n)\n\nDeferred tax liabilities on undistributed earnings of associates and joint ventures\n\n  \n \n2.1\n \n \n \n1.9\n \n \n \n2.1\n \n\nChange in unrecognized deferred tax assets\n\n  \n \n0.4\n \n \n \n2.1\n \n \n \n3.8\n \n\nTax credits\n\n  \n \n(2.1\n)\n \n \n(4.2\n)\n \n \n(4.6\n)\n\nThe difference between the statutory tax rate in Japan and that of foreign subsidiaries\n\n  \n \n(2.0\n)\n \n \n(3.1\n)\n \n \n(3.1\n)\n\nUnrecognized tax benefits adjustments\n\n  \n \n— \n \n \n \n(1.1\n)\n \n \n(5.4\n)\n\nRevision to deferred tax assets and liabilities at the fiscal\nyear-end\ndue to changes in\ntax rates\n\n  \n \n— \n \n \n \n0.4\n \n \n \n— \n \n\nOther\n\n  \n \n0.6\n \n \n \n0.0\n \n \n \n0.7\n \n\nAverage effective tax rate\n\n  \n \n27.2\n% \n \n \n25.3\n% \n \n \n22.7\n% \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n(3) Global Minimum Taxation\n\nThe Organization for Economic\nCo-operation\nand Development (OECD) has issued model rules for global minimum taxation, commonly referred to as Pillar Two, which aim to ensure that multinational enterprises are subject to a minimum corporate income tax rate of 15%.\n\nToyota operates in jurisdictions where legislation based on these model rules, including the Qualified Domestic Minimum\nTop-up\nTax (QDMTT), has been enacted or substantively enacted. Based on an assessment of the financial information of the constituent entities subject to the regime, Toyota has evaluated the potential impact of corporate income taxes arising from global minimum taxation and concluded that there is no material impact.\n\nFurthermore, Toyota applies the temporary exception under IAS 12 “Income Taxes” regarding the recognition and disclosure of deferred tax assets and liabilities related to global minimum taxation. As a result, Toyota does not recognize any deferred tax assets or deferred tax liabilities arising from global minimum taxation, nor does it provide related disclosures.\n\n \n\nF-\n4\n\n3\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n17. Trade accounts and other payables\n\nTrade accounts and other payables consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n  2025  \n\n \n \n\n  2026  \n\n \n\n \n  \n \n \n \n \n \n\nAccounts and notes payables\n\n  \n \n4,034,920\n  \n \n \n4,302,013\n  \n\nOther payables\n\n  \n \n1,492,427\n \n \n \n1,554,932\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n5,527,347\n \n \n \n5,856,945\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTrade accounts and other payables are classified as financial liabilities measured at amortized cost.\n\n18. Financial liabilities\n\n(1) Financial liabilities\n\nFinancial liabilities consist of the following:\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n \n \n \n \n \n \n\nNon-cash\nchanges\n\n \n \n \n \n\n \n \n\nAs of\n\nApril 1, 2024\n\n \n \n\nCash flow\n\n \n \n\nAcquisitions\n\n \n \n\nReclassification\n\n \n \n\nChanges\nin foreign\ncurrency\nexchange\nrates\n\n \n \n\nChanges\nin fair value\n\n \n \n\nOther\n\n \n \n\nAs of\nMarch 31, 2025\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCurrent liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nShort-term debt\n\n \n \n5,487,959\n \n \n \n75,675\n \n \n \n— \n \n \n \n— \n \n \n \n(99,165\n)\n \n \n— \n \n \n \n0\n \n \n \n5,464,469\n \n\nCurrent portion of long-term debt\n\n \n \n9,844,870\n \n \n \n(10,786,012\n)\n \n \n— \n \n \n \n11,336,112\n \n \n \n(141,748\n)\n \n \n— \n \n \n \n19,679\n \n \n \n10,272,900\n\n \n \n\nCurrent portion of long-term lease liabilities\n\n \n \n73,456\n \n \n \n(86,249\n)\n \n \n— \n \n \n \n104,271\n \n \n \n(599\n)\n \n \n— \n \n \n \n1,268\n \n \n \n92,147\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCurrent liabilities\n\n \n \n15,406,284\n \n \n \n(10,796,586\n)\n \n \n— \n \n \n \n11,440,383\n \n \n \n(241,512\n)\n \n \n— \n \n \n \n 20,947\n \n \n \n15,829,516\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLong-term debt\n\n \n \n20,766,384\n \n \n \n13,381,581\n \n \n \n— \n \n \n \n(11,336,112\n)\n \n \n(290,753\n)\n \n \n— \n \n \n \n1,059\n \n \n \n22,522,158\n \n\nLong-term lease liabilities\n\n \n \n389,112\n \n \n \n— \n \n \n \n164,348\n \n \n \n(104,271\n)\n \n \n(3,280\n)\n \n \n— \n \n \n \n(4,705\n)\n \n \n441,204\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n \n \n21,155,496\n \n \n \n13,381,581\n \n \n \n164,348\n \n \n \n(11,440,383\n)\n \n \n(294,033\n)\n \n \n— \n \n \n \n(3,646\n)\n \n \n22,963,363\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n36,561,780\n \n \n \n2,584,995\n \n \n \n164,348\n \n \n \n— \n \n \n \n(535,545\n)\n \n \n— \n \n \n \n17,301\n \n \n \n38,792,879\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivatives\n\n \n \n(40,578\n)\n \n \n(5,189\n)\n \n \n— \n \n \n \n— \n \n \n \n(478\n)\n \n \n84,074\n \n \n \n— \n \n \n \n37,829\n \n\n \n\nF-\n4\n\n4\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n\n \n\nYen in millions\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-cash\nchanges\n\n \n\n \n\n \n\n \n\n \n\n \n\nAs of\n\nApril 1, 2025\n\n \n\n \n\nCash flow\n\n \n\n \n\nAcquisitions\n\n \n\n \n\nReclassification\n\n \n\n \n\nChanges\nin foreign\ncurrency\nexchange\nrates\n\n \n\n \n\nChanges\nin fair value\n\n \n\n \n\nOther\n\n \n\n \n\nAs of\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nShort-term debt\n\n \n \n5,464,469\n \n \n \n(90,691\n)\n \n \n— \n \n \n \n— \n \n \n \n455,722\n \n \n \n— \n \n \n \n(130,417\n) \n \n \n5,699,083\n \n\nCurrent portion of long-term debt\n\n \n \n10,272,900\n \n \n \n(11,601,270\n)\n \n \n— \n \n \n \n12,179,370\n \n \n \n850,496\n \n \n \n— \n \n \n \n17,089\n \n \n \n11,718,586\n \n\nCurrent portion of long-term lease liabilities\n\n \n \n92,147\n \n \n \n(355,271\n)\n \n \n— \n \n \n \n439,532\n \n \n \n2,991\n \n \n \n— \n \n \n \n(15,964\n)\n \n \n163,435\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCurrent liabilities\n\n \n \n15,829,516\n \n \n \n(12,047,232\n)\n \n \n— \n \n \n \n12,618,903\n \n \n \n1,309,209\n \n \n \n— \n \n \n \n (129,292\n)\n \n \n17,581,104\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLong-term debt\n\n \n \n22,522,158\n \n \n \n12,880,225\n \n \n \n— \n \n \n \n(12,179,370\n) \n \n \n1,856,234\n \n \n \n— \n \n \n \n(2,460\n)\n \n \n25,076,787\n \n\nLong-term lease liabilities\n\n \n \n441,204\n \n \n \n— \n \n \n \n549,798\n \n \n \n(439,532\n)\n \n \n17,791\n \n \n \n— \n \n \n \n(21,683\n)\n \n \n547,578\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n \n \n22,963,363\n \n \n \n12,880,225\n \n \n \n549,798\n \n \n \n(12,618,903\n)\n \n \n1,874,025\n \n \n \n— \n \n \n \n(24,143\n)\n \n \n25,624,365\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n38,792,879\n \n \n \n832,992\n \n \n \n549,798\n  \n \n \n— \n \n \n \n3,183,234\n \n \n \n— \n \n \n \n(153,435\n)\n \n \n43,205,469\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n) \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivatives\n\n \n \n37,829\n \n \n \n(40,982\n) \n \n \n— \n \n \n \n— \n \n \n \n(1,917\n)\n \n\n \n \n(24,507\n) \n \n \n— \n \n \n \n(29,578\n)\n \n\nShort-term and long-term debt are classified as financial liabilities measured at amortized cost.\n\n“Other” for the year ended March 31, 2026 includes amounts reclassified to liabilities directly associated with assets held for sale.\n\n(2) Short-term debt\n\nThe breakdown of “Short-term debt” is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\n \n  \n \n \n  \n \n \n\nShort-term debt\n\n  \n\n  \n\n(Principally from bank)\n\n  \n\n  \n\n[Weighted average interest rate\n\n  \n\n  \n\n2025  2.26%\n\n  \n\n  \n\n2026  2.51%]\n\n  \n \n1,552,166\n \n  \n \n1,339,878\n \n\nCommercial paper\n\n  \n\n  \n\n[Weighted average interest rate\n\n  \n\n  \n\n2025  3.82%\n\n  \n\n  \n\n2026  3.15%]\n\n  \n \n3,912,303\n \n  \n \n4,359,205\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n  \n \n5,464,469\n \n  \n \n5,699,083\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-4\n\n5\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(3) Long-term debt\n\nThe breakdown of “Long-term debt” is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n  2025  \n\n \n \n\n  2026  \n\n \n\n \n  \n \n \n \n \n \n\nUnsecured loans\n\n  \n\n \n\n(Principally from bank)\n\n  \n\n \n\n[2025\n\n  \n\n \n\nWeighted average interest 3.56%\n\n  \n\n \n\nDue 2025 to 2042\n\n  \n\n \n\n2026\n\n  \n\n \n\nWeighted average interest 3.50%\n\n  \n\n \n\nDue 2026 to 2042]\n\n  \n \n7,360,937\n \n \n \n8,854,912\n \n\nSecured loans\n\n  \n\n \n\n(Principally financial receivables securitization)\n\n  \n\n \n\n[2025\n\n  \n\n \n\nWeighted average interest 4.23%\n\n  \n\n \n\nDue 2025 to 2034\n\n  \n\n \n\n2026\n\n  \n\n \n\nWeighted average interest 3.91%\n\n  \n\n \n\nDue 2026 to 2034]\n\n  \n \n7,556,089\n \n \n \n8,737,773\n \n\nUnsecured bonds of the parent\n\n  \n\n \n\n[2025\n\n  \n\n \n\nWeighted average interest 1.93%\n\n  \n\n \n\nDue 2026 to 2037\n\n  \n\n \n\n2026\n\n  \n\n \n\nWeighted average interest 2.91%\n\n  \n\n \n\nDue 2026 to 2037]\n\n  \n \n1,108,080\n \n \n \n1,099,460\n \n\nUnsecured bonds and medium-term notes of consolidated subsidiaries\n\n  \n\n \n\n[2025\n\n  \n\n \n\nWeighted average interest 3.61%\n\n  \n\n \n\nDue 2025 to 2048\n\n  \n\n \n\n2026\n\n  \n\n \n\nWeighted average interest 3.62%\n\n  \n\n \n\nDue 2026 to 2048]\n\n  \n \n16,683,919\n \n \n \n17,989,699\n \n\nSecured bonds of consolidated subsidiaries\n\n  \n\n \n\n[2025\n\n  \n\n \n\nWeighted average interest 8.12%\n\n  \n\n \n\nDue 2025 to 2029\n\n  \n\n \n\n2026\n\n  \n\n \n\nWeighted average interest 7.86%\n\n  \n\n \n\nDue\n2026 to 2029]\n\n  \n \n86,033\n \n \n \n113,529\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n32,795,058\n \n \n \n36,795,373\n \n\nLess - Current portion due within one year\n\n  \n \n(10,272,900\n) \n \n \n(11,718,586\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n  \n \n  22,522,158\n \n \n \n  25,076,787\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-4\n\n6\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nAs of March 31, 2025 and 2026, the currencies of long-term debt are 50% and 47% in US dollars, 12% and 12% in Japanese yen, 14% and 14% in Euros, 5% and 5% in Australian dollars, 4% and 4% in Canadian dollars, 15% and 18% in\n\nother currencies, respectively.\n\n(4) Assets pledges as collateral\n\nThe breakdown of assets pledged as collateral mainly for loans of consolidated subsidiaries is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n  2025  \n\n \n\n \n\n  2026  \n\n \n\n \n  \n \n \n \n \n \n\nProperty, plant and equipment\n\n  \n \n1,616,300\n \n \n \n1,926,713\n \n\nOther assets\n\n  \n \n7,936,375\n \n \n \n9,072,756\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n  9,552,674\n  \n \n \n  10,999,469\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther assets principally consist of securitized finance receivables.\n\nStandard agreements with certain banks include provisions that collateral (including sums on deposit with such banks) or guarantees will be furnished upon the banks’ request and that any collateral furnished, pursuant to such agreements or otherwise, will be applicable to all present or future indebtedness to such banks.\n\n(5) Interest expenses\n\nInterest expenses for the years ended March 31, 2025 and 2026 are ¥\n1,654,702 \nmillion and ¥1,696,845 million, respectively. Interest expenses related to the financial business is included in “cost of financial services” in the consolidated statement of income. \n\n19. Other financial liabilities\n\nOther financial liabilities consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nFinancial liabilities measured at amortized cost\n\n  \n\n \n\n \n\nDeposits received\n\n  \n \n1,501,078\n  \n \n \n2,584,248\n \n\nOther\n\n  \n \n483,751\n \n \n \n599,218\n \n\nFinancial liabilities measured at fair value through profit or loss\n\n  \n\n \n\n \n\nDerivatives\n\n  \n \n319,881\n \n \n \n357,955\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n2,304,711\n \n \n \n3,541,421\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCurrent liabilities\n\n  \n \n1,869,117\n \n \n \n2,384,008\n \n\nNon-current\nliabilities\n\n  \n \n435,594\n \n \n \n1,157,413\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n2,304,711\n \n \n \n3,541,421\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n20. Financial risks\n\n(1) Financial risk management policy\n\nToyota is exposed to various risks such as credit risk, liquidity risk and, market risk (foreign currency risk, interest rate risk, commodity price fluctuation risk and stock price fluctuation risk). To hedge market risk, Toyota\n\n \n\nF-4\n\n7\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nalso uses derivative financial instruments including foreign exchange forward contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements, and interest rate options. With respect to the execution and management of derivative transactions, Toyota follows company regulations that set out transaction authority, and it is a policy not to conduct speculative transactions using derivative financial instruments.\n\nIn addition, Toyota procures necessary funds (mainly bank borrowings and issuing corporate bonds) based on capital expenditure plans, and temporary surplus funds are managed with highly safe financial assets and short-term working capital is procured through bank borrowings and commercial paper. As for liquidity risk concerning fund procurement, each company manages it by preparing a monthly cash flow plan, etc.\n\n(2) Credit risk\n\nReceivables related to financial services are exposed to credit risk. The risk arises from the failure of customers or dealers to meet the terms of their contracts with Toyota or otherwise fail to perform as agreed. Toyota manages its credit risk by defining risk management methods and management systems for specific risks in accordance with the regulations on risk management. Based on such regulations, Toyota mitigates credit risk through periodic monitoring of customers’ credit status and undertaking the maturity control and account balance control, while detecting promptly any doubtful accounts caused by deterioration in the financial conditions.\n\nPlease see Note 3 “Allowance for credit losses on finance receivables” about the measuring method of the expected credit losses on receivables related to financial services.\n\nThe carrying amount after impairment of financial assets presented in the consolidated financial statements, as well as guarantee obligations and loan commitments that are set forth in the notes to the consolidated financial statements, are the maximum exposure to the credit risk of Toyota’s financial assets that do not take into account the value of the acquired collateral. The allowance for credit exposures of loan commitments and financial agreements is measured in the same way that the allowance for retail receivables is measured.\n\nRetail receivables and financial lease receivables are secured by vehicles as collateral. Wholesale receivables and other dealer loans are secured by placing appropriate property as collateral. During the reporting period, there was no change in the policy regarding collateral.\n\nNet changes in the allowance for credit losses relating to retail receivables are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended March 31, 2025\n\n \n\n \n  \n\nExpected credit\n\nloss for\n12 months\n\n \n \n\nLifetime expected credit loss\n\n \n \n\nTotal\n\n \n\n \n \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nAllowance for credit loss at beginning of year\n\n  \n\n111,044\n \n \n \n147,790\n \n \n \n77,318\n \n \n \n336,152\n \n\nProvision for credit loss, net of reversal\n\n  \n \n9,648\n \n \n \n1,827\n \n \n \n195,494\n \n \n \n206,968\n \n\nCharge-offs\n\n  \n \n— \n \n \n \n— \n \n \n \n(189,044\n)\n \n\n \n \n(189,044\n)\n \n\nOther\n\n  \n \n(2,860\n) \n \n \n1,269\n  \n \n \n3,818\n \n \n \n2,228\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for credit loss at end of year\n\n  \n \n117,832\n \n \n \n150,885\n \n \n \n87,587\n \n \n \n\n \n \n\n356,304\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-48\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended March 31, 2026\n\n \n\n \n\n  \n\nExpected credit\n\nloss for\n12 months\n\n \n\n  \n\nLifetime expected credit loss\n\n \n\n \n\nTotal\n\n \n\n \n\n  \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n\n \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nAllowance for credit loss at beginning of year\n\n  \n \n117,832\n \n \n \n150,885\n \n \n \n87,587\n \n \n \n356,304\n \n\nProvision for credit loss, net of reversal\n\n  \n \n1,888\n \n \n \n(6,575\n)\n \n\n \n \n194,754\n \n \n \n190,067\n \n\nCharge-offs\n\n  \n \n— \n \n \n \n— \n \n \n \n(197,813\n)\n \n\n \n \n(197,813\n)\n \n\nOther\n\n  \n \n8,019\n \n \n \n13,582\n \n \n \n11,991\n \n \n \n33,593\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for credit loss at end of year\n\n  \n \n127,739\n \n \n \n157,892\n \n \n \n96,520\n \n \n \n\n \n \n \n\n \n382,152\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Other” primarily includes currency translation adjustments.\n\nThe table below shows retail receivables segregated into aging\ncategories\nbased on the numbers of days outstanding:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nExpected credit\n\nloss for\n\n12 months\n\n \n  \n\nLifetime expected credit loss\n\n \n  \n\nTotal\n\n \n\n  \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n  \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nCurrent\n\n  \n \n25,114,478\n\n \n \n \n \n1,335,387\n  \n \n \n\n12,067\n\n \n \n\n \n \n26,461,932\n \n\nPast due less than 90 days\n\n  \n \n306,022\n  \n \n \n658,638\n \n \n \n20,028\n  \n \n \n984,689\n \n \n \n\nPast due 90 days or more\n\n  \n \n— \n \n \n \n16\n \n \n \n191,385\n \n \n \n191,401\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n  \n \n25,420,500\n \n \n \n1,994,041\n \n \n \n 223,481\n \n \n \n 27,638,021\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nExpected credit\n\nloss for\n\n12 months\n\n \n  \n\nLifetime expected credit loss\n\n \n  \n\nTotal\n\n \n\n  \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n  \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nCurrent\n\n  \n \n29,357,833\n \n  \n \n1,211,218\n \n  \n \n13,898\n\n \n \n  \n \n30,582,949\n  \n\nPast due less than 90 days\n\n  \n \n325,527\n \n  \n \n717,109\n \n  \n \n22,634\n\n \n \n  \n \n1,065,270\n\n \n \n\nPast due 90 days or more\n\n  \n \n— \n \n  \n \n2,944\n \n  \n \n186,760\n \n  \n \n189,703\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n29,683,360\n \n  \n \n1,931,271\n \n  \n \n 223,291\n \n  \n \n  31,837,922\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-49\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nNet changes in the allowance for credit losses relating to the finance lease receivables are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n \n\n2026\n\n \n\nAllowance for credit loss at beginning of year\n\n  \n \n46,909\n \n \n \n56,721\n \n\nProvision for credit loss, net of reversal\n\n  \n \n21,140\n \n \n \n19,169\n \n\nCharge-offs\n\n  \n \n(10,311\n) \n \n \n(12,017\n) \n\nOther\n\n  \n \n(1,017\n)\n \n \n3,688\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for credit loss at end of year\n\n  \n \n56,721\n \n \n \n67,560\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Other” primarily includes currency translation adjustments.\n\nThe table below shows the finance lease receivables segregated into aging categories based on the numbers of the days outstanding:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n  2025  \n \n \n  2026  \n \n\nCurrent\n\n  \n \n3,340,414\n \n \n \n4,033,662\n \n\nPast due less than 90 days\n\n  \n \n67,627\n \n \n \n86,346\n \n\nPast due 90 days or more\n\n  \n \n29,928\n \n \n \n34,643\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n3,437,970\n  \n \n \n4,154,650\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe table below shows the net movement of the allowance for credit losses on wholesale receivables and other dealer loans.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended March 31, 2025\n\n \n\n \n  \n\nExpected credit\n\nloss for\n12 months\n\n \n \n\nLifetime expected credit loss\n\n \n \n\nTotal\n\n \n\n \n \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nAllowance for credit loss at beginning of year\n\n  \n \n    17,481\n \n \n \n5,931\n \n \n \n7,801\n \n \n \n31,213\n \n\nProvision for credit loss, net of reversal\n\n  \n \n7,009\n \n \n \n1,226\n \n \n \n(980\n)\n \n \n7,256\n \n\nCharge-offs\n\n  \n \n— \n \n \n \n— \n \n \n \n(698\n)\n \n \n(698\n)\n \n\nOther\n\n  \n \n206\n \n \n \n(139\n)\n \n \n(48\n)\n \n \n20\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for credit loss at end of year\n\n  \n \n24,697\n \n \n \n7,018\n \n \n \n6,076\n \n \n \n    37,791\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-50\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended March 31, 2026\n\n \n\n \n  \n\nExpected credit\n\nloss for\n12 months\n\n \n \n\nLifetime expected credit loss\n\n \n \n\nTotal\n\n \n\n \n \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n\nAllowance for credit loss at beginning of year\n\n  \n \n24,697\n \n \n \n7,018\n \n \n \n6,076\n \n \n \n    37,791\n \n\nProvision for credit loss, net of reversal\n\n  \n \n2,930\n \n \n \n2,204\n \n \n \n5,900\n \n \n \n11,033\n \n\nCharge-offs\n\n  \n \n— \n \n \n \n— \n \n \n \n(482\n) \n \n \n(482\n) \n\nOther\n\n  \n \n2,869\n \n \n \n996\n \n \n \n824\n \n \n \n4,688\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAllowance for credit loss at end of year\n\n  \n \n30,495\n \n \n \n10,219\n \n \n \n12,317\n \n \n \n53,031\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Other” primarily includes currency translation adjustments.\n\nToyota charges off the credit - impaired finance receivables when Toyota considers that all or part of it will not be collected. The amount of receivables related to financial services which have been charged off but are subject to ongoing collection activity was not significant for the years ended March 31, 2025 and 2026.\n\nThe balances of wholesale receivables and other dealer loan receivables portfolios by credit status, as well as loan commitments and financial guarantee contracts, as of March 31, 2025 and 2026 are as follows.\n\nThe wholesale and other dealer loan receivables portfolio segment is segregated into the following credit qualities below based on internal risk assessments by dealers.\n\nPerforming: Account not classified as either Credit Watch, At Risk or Default\n\nCredit Watch: Account designated for elevated attention\n\nAt Risk: Account where there is an increased likelihood that default may exist based on qualitative and quantitative factors\n\nDefault: Account is not currently meeting contractual obligations, or we have temporarily waived certain contractual requirements\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nExpected credit\n\nloss for\n12 months\n\n \n  \n\nLifetime expected credit loss\n\n \n  \n \n \n\n \n  \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n  \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n  \n\nTotal\n\n \n\nWholesale and other dealer loans\n\n  \n\n  \n\n  \n\n  \n\nPerforming\n\n  \n \n4,478,021\n \n  \n \n— \n \n  \n \n— \n \n  \n \n4,478,021\n \n\nCredit Watch\n\n  \n \n213,400\n \n  \n \n143,979\n \n  \n \n— \n \n  \n \n357,379\n \n\nAt Risk\n\n  \n \n— \n \n  \n \n54,774\n \n  \n \n2,003\n \n  \n \n56,776\n \n\nDefault\n\n  \n \n— \n \n  \n \n— \n \n  \n \n10,360\n \n  \n \n10,360\n \n\nLoan commitments\n\n  \n \n10,288,422\n \n  \n \n188,448\n \n  \n \n1,024\n \n  \n \n10,477,894\n \n\nFinancial guarantee contracts\n\n  \n \n2,234,393\n \n  \n \n24,001\n \n  \n \n— \n \n  \n \n2,258,395\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n17,214,236\n \n  \n \n411,202\n \n  \n \n13,387\n \n  \n \n17,638,825\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-51\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nExpected credit\n\nloss for\n12 months\n\n \n  \n\nLifetime expected credit loss\n\n \n  \n \n \n\n \n  \n\nFinancial\n\nreceivable not\n\ncredit-impaired\n\n \n  \n\nCredit-impaired\n\nfinancial\n\nreceivable\n\n \n  \n\nTotal\n\n \n\nWholesale and other dealer loan\ns\n\n  \n\n  \n\n  \n\n  \n\nPerforming\n\n  \n \n5,369,936\n \n  \n \n— \n \n  \n \n— \n \n  \n \n5,369,936\n \n\nCredit Watch\n\n  \n \n132,379\n \n  \n \n228,403\n \n  \n \n— \n \n  \n \n360,782\n \n\nAt Risk\n\n  \n \n— \n \n  \n \n43,883\n \n  \n \n3,086\n \n  \n \n46,970\n \n\nDefault\n\n  \n \n— \n \n  \n \n— \n \n  \n \n44,244\n \n  \n \n44,244\n \n\nLoan commitments\n\n  \n \n9,731,868\n \n  \n \n187,037\n \n  \n \n1,989\n \n  \n \n9,920,894\n \n\nFinancial guarantee contracts\n\n  \n \n1,464,251\n \n  \n \n14,008\n \n  \n \n— \n \n  \n \n1,478,259\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n16,698,434\n \n  \n \n473,331\n \n  \n \n49,319\n \n  \n \n17,221,084\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFor the years ended March 31, 2025 and 2026, the amount of finance receivables where the terms were modified due to deterioration in credit conditions was not significant for any portfolio of finance receivables, and the amount of payment defaults on finance receivables so modified were not significant for any portfolio of such receivables.\n\n(3) Liquidity risk\n\nTo secure cash on hand necessary for carrying out operations, Toyota appropriately borrows from financial institutions and issues corporate bonds and medium-term notes or commercial paper, and there is a risk of failing to execute the payment on the due date because of deterioration of the fund procurement environment etc.\n\nToyota manages liquidity risk by monitoring the fund demand of each group company as appropriate, preparing a monthly-based funding plan, and comparing it with daily cash flow. In addition to holding sufficient cash and cash equivalents in order to secure liquidity and stability of funds, to prepare for emergency situations such as sudden fund demand and market liquidity deterioration, a commitment line has been set up.\n\nThe amounts of\nnon-derivative\nfinancial liabilities and derivative financial liabilities by remaining contract maturity period are as follows. Note that, with respect to loan commitments and financial guarantee contracts, the maximum exposure could be demanded to be guaranteed or executed within one year. Please see Note 20 “(2) Credit risk” about the maximum exposure.\n\n \n\nF-52\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nAs of March 31, 2025\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n \n \n \n \n \n \n\nMaturities\n\n \n\n \n \n\nBook value\n\n \n \n\nContractual\n\ncash flows\n\n \n \n\nWithin 1 year\n\n \n \n\nBetween 1 and\n3 years\n\n \n \n\nBetween 3 and\n5 years\n\n \n \n\nLater than\n\n5 years\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNon-derivative\nfinancial liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nShort-term debt\n\n \n \n1,552,166\n \n \n \n(1,565,387\n) \n \n \n(1,565,387\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nCommercial paper\n\n \n \n3,912,303\n \n \n \n(4,012,371\n)\n \n \n(4,012,371\n)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nLong-term debt\n\n \n \n32,795,058\n \n \n \n(35,293,975\n)\n \n \n(11,209,068\n)\n \n \n(15,485,265\n) \n \n \n(6,190,498\n) \n \n \n(2,409,143\n) \n\nLease liabilities\n\n \n \n533,351\n \n \n \n(630,013\n)\n \n \n(102,412\n)\n \n \n(159,500\n)\n \n \n(94,354\n)\n \n \n(273,747\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n38,792,879\n \n \n \n(41,501,746\n)\n \n \n(16,889,239\n)\n \n \n(15,644,764\n)\n \n \n(6,284,852\n)\n \n \n(2,682,891\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivative financial liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest derivatives\n\n \n \n196,389\n \n \n \n(220,341\n)\n \n \n(83,505\n)\n \n \n(108,063\n)\n \n \n(22,712\n)\n \n \n(6,061\n)\n\nCurrency derivatives\n\n \n\n \n\n \n\n \n\n \n\n \n\nIn\n\n \n \n— \n \n \n \n1,047,528\n \n \n \n73,959\n \n \n \n759,648\n \n \n \n66,990\n \n \n \n146,931\n \n\nOut\n\n \n \n123,493\n \n \n \n(1,196,751\n)\n \n \n(130,116\n)\n \n \n(840,065\n)\n \n \n(74,389\n)\n \n \n(152,181\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n319,881\n \n \n \n(369,564\n)\n \n \n(139,663\n)\n \n \n(188,480\n)\n \n \n(30,111\n)\n \n \n(11,311\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n39,112,760\n \n \n \n(41,871,310\n)\n \n \n(17,028,902\n)\n \n \n(15,833,244\n)\n \n \n(6,314,963\n)\n \n \n(2,694,201\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAs of March 31, 2026\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n \n \n \n \n \n \n\nMaturities\n\n \n\n \n \n\nBook value\n\n \n \n\nContractual\n\ncash flows\n\n \n \n\nWithin 1 year\n\n \n \n\nBetween 1 and\n3 years\n\n \n \n\nBetween 3 and\n5 years\n\n \n \n\nLater than\n\n5 years\n\n \n\nNon-derivative\nfinancial liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nShort-term debt\n\n \n \n1,339,878\n \n \n \n(1,353,907\n) \n \n \n(1,353,907\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nCommercial paper\n\n \n \n4,359,205\n \n \n \n(4,453,267\n)\n \n \n(4,453,267\n)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nLong-term debt\n\n \n \n36,795,373\n \n \n \n(39,522,887\n)\n \n \n(12,768,209\n)\n \n \n(17,094,270\n)\n \n \n(7,489,266\n) \n \n \n(2,171,143\n) \n\nLease liabilities\n\n \n \n711,013\n \n \n \n(846,065\n)\n \n \n(194,791\n)\n \n \n(181,928\n)\n \n \n(107,664\n)\n \n \n(361,683\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n43,205,469\n \n \n \n(46,176,126\n)\n \n \n(18,770,173\n)\n \n \n(17,276,198\n)\n \n \n(7,596,929\n)\n \n \n(2,532,826\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDerivative financial liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest derivatives\n\n \n \n255,068\n \n \n \n(339,292\n)\n \n \n(138,388\n)\n \n \n(148,377\n)\n \n \n(40,179\n)\n \n \n(12,348\n)\n\nCurrency derivatives\n\n \n\n \n\n \n\n \n\n \n\n \n\nIn\n\n \n \n— \n \n \n \n836,049\n \n \n \n240,393\n \n \n \n391,484\n \n \n \n43,039\n \n \n \n161,134\n \n\nOut\n\n \n \n102,887\n \n \n \n(949,605\n)\n \n \n(323,462\n)\n \n \n(414,493\n)\n \n \n(47,022\n)\n \n \n(164,627\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n357,955\n \n \n \n(452,848\n)\n \n \n(221,457\n)\n \n \n(171,386\n)\n \n \n(44,163\n)\n \n \n(15,842\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n \n43,563,423\n \n \n \n(46,628,974\n)\n \n \n(18,991,630\n)\n \n \n(17,447,584\n)\n \n \n(7,641,092\n)\n \n \n(2,548,667\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAs described above, Toyota raises funds through the issuance of corporate bonds and medium-term notes, and commercial paper. These funding mechanisms comply with the regulations of each respective country, and Toyota qualifies as an eligible issuer. Depending on the individual debt registration statement, this allows us to issue medium-term notes without a predetermined issuance limit, or to raise funds within a specified issuance limit.\n\n \n\nF-\n5\n3\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe unused amount of funding with established issuance limits is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nCorporate bonds and medium-term notes\n\n  \n \n6,011,789\n \n  \n \n7,333,858\n \n\nCommercial paper\n\n  \n \n1,241,283\n \n  \n \n1,328,779\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n 7,253,072 \n \n  \n \n 8,662,638 \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAs of March 31, 2025 and 2026, Toyota has unused amounts of commitment lines from financial institutions of ¥5,485,781 million and ¥6,753,849 million, respectively. These amounts do not include the amounts of overdraft contracts.\n\nAs of March 31, 2025 and 2026, the balance of credit limits other than commitment lines from financial institutions is ¥53,000 million and ¥88,500 million, respectively.\n\n(4) Foreign exchange risk\n\nToyota is subject to foreign currency exposure through transactions in foreign currencies related to purchases, sales and financing activities associated with conducting business worldwide. Toyota is exposed to fluctuation risks related to future profitability or assets and liabilities regarding operating cash flows denominated in foreign currencies and various financial instruments. The most significant foreign currency exposure is primarily caused by the U.S. dollar and the euro.\n\nToyota uses derivative financial instruments including foreign exchange forward contracts, foreign currency options, interest rate currency swap agreements, and others, to manage the exposure to foreign currency exchange rate fluctuations.\n\nToyota uses\n\nValue-at-risk\n\nanalysis measurement (“VaR”) to assess the risk of exchange rate fluctuation. Potential impact of\npre-tax\ncash flows on VaR-integrated foreign currency positions (including derivatives) for the years ended March 31, 2025 and 2026 is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nVaR\n\n \n\n \n  \n\nYear-end\n\n \n  \n\nAverage\n\n \n  \n\nMaximum\n\n \n  \n\nMinimum\n\n \n\nFor the year ended March 31, 2025\n\n  \n \n465,300\n \n  \n \n441,800\n \n  \n \n465,300\n \n  \n \n408,500\n \n\nFor the year ended March 31, 2026\n\n  \n \n497,100\n \n  \n \n486,275\n \n  \n \n505,100\n \n  \n \n462,700\n \n\nThe Monte Carlo simulation method is used for Toyota’s VaR measurement, and measurement is based on a 95% confidence interval and a\nten-day\nholding period.\n\n(5) Interest rate risk\n\nIn the course of conducting business activities, Toyota is exposed to interest rate risk due to fluctuation in market interest rates as it procures and invests funds necessary for working capital and capital investment.\n \nTo maintain a desirable level of exposure related to interest rate fluctuation risk and minimize interest expense, Toyota conducts various financial instruments transactions.\n\n \n\nF-\n5\n\n4\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nSensitivity analysis of Toyota’s interest rate risk associated with holding financial instruments if the interest rate increases by 1% is as follows. In this analysis, all other variables are assumed to be constant.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\nImpact on income before income taxes\n\n  \n \n(104,706\n) \n \n \n(109,880\n) \n\nImpact on other comprehensive income, before tax effect\n\n  \n \n(235,959\n)\n \n \n(225,875\n)\n\n(6) Market price fluctuation risk\n\nToyota is exposed to risks arising from increased costs due to commodity price fluctuations, such as iron and steel, precious metals and\nnon-ferrous\nalloys used in the manufacturing of automobiles. Toyota controls price risk associated with the purchase of those commodities by maintaining inventory at the minimum level.\n\nToyota is exposed to stock price fluctuation risk because it owns shares of companies that have business relationships mainly for promoting smooth business activities. Toyota periodically reviews the fair values and financial situations of the business partner companies and, taking into consideration the relationship with them, continually reviews the holding status. The impact on other comprehensive income, before tax effect, when the declared price of equity financial assets (shares) in active markets changes by 10% for the years ended March 31, 2025, and 2026 is ¥305,475 million and ¥331,161 million, respectively.\n\n21. Fair value measurements\n\n(1) Definition of fair value hierarchy\n\nIn accordance with IFRS Accounting Standards, Toyota classifies fair value measurement into the following three levels based on the observability and significance of the inputs used.\n\n \n\nLevel 1:\n\n \n\nQuoted prices in active markets for identical assets or liabilities\n\nLevel 2:\n\n \n\nFair value measurement based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly\n\nLevel 3:\n\n \n\nFair value measurement based on models using significant unobservable inputs for the assets or liabilities\n\n(2) Method of fair value measurement\n\nThe fair value of assets and liabilities is determined using relevant market information and appropriate valuation methods.\n\nThe methods and assumptions for measuring the fair value of assets and liabilities are as follows:\n\n(i) Cash and cash equivalents -\n\nCash equivalents include money market funds and other investments with original maturities of three months or less. In the normal course of business, substantially all cash and cash equivalents and time deposits are highly liquid and are carried at amounts which approximate fair value due to their short duration.\n\n \n\nF-55\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(ii) Trade accounts and other receivables and Trade accounts and other payables -\n\nThese receivables and payables are carried at amounts which approximate fair value due to their short duration.\n\n(iii) Receivables related to financial services -\n\nThe fair value of receivables related to financial services is estimated by discounting expected cash flows to present value using internal assumptions, including prepayment speeds, expected credit losses and collateral value.\n\nAs unobservable inputs are utilized, the fair value of receivables related to financial services is classified as Level 3.\n\n(iv) Other financial assets -\n\n(Public and corporate bonds)\n\nPublic and corporate bonds include government bonds. Japanese bonds and foreign bonds, including U.S., European and other bonds, represent 32% and 68% (as of March 31, 2025) and 41% and 59% (as of March 31, 2026) of public and corporate bonds, respectively. Toyota primarily uses quoted market prices for identical assets or valuation techniques using observable input to measure the fair value of these securities.\n\n(Stocks)\n\nListed stocks on the Japanese stock markets represent 79% (as of March 31, 2025) and 78% (as of March 31, 2026) of stocks that Toyota holds. Toyota primarily uses quoted market prices for identical assets to measure fair value of these securities. Therefore, stocks with an active market are classified as Level 1.\n\nFair value of stocks with no active market is measured by using the market approach or other appropriate methods. Therefore, stocks with no active market are classified as Level 3.\n\nPrice book-value ratios (“PBR”) of comparable companies, discount ratios of the discounted cash flow valuation method and others are the significant unobservable inputs relating to the fair value measurement of stocks classified as Level 3. The fair value increases (decreases) as PBR of a comparable company rises (declines) or the discount rate declines (rises). The estimated increase or decrease in the fair value of stocks if the unobservable inputs were to be replaced by other reasonable alternative assumptions is not significant.\n\nThese estimates are based on valuation methods that are considered appropriate in each case. The significant assumptions involved in the estimations include the financial condition and future prospects and trends of the investees and the outcome of the referenced transactions. Due to the uncertain nature of these assumptions or by using different assumptions and estimates, fair value may be materially impacted.\n\nShares classified as Level 3 are measured using quarterly available information in accordance with Toyota’s consolidated financial accounting policies and reported to the supervisors along with the basis of the change in fair value.\n\n(Investment trusts)\n\nMarketable investment trusts are measured using market prices. Therefore, marketable investment trusts are classified as Level 1. Other investment trusts are calculated based on the quoted price obtained from the financial institutions with which Toyota transact. Therefore, other investment trusts are classified as Level 2.\n\n \n\nF-56\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(v) Derivative financial instruments -\n\nToyota employs derivative financial instruments, including foreign exchange forward contracts, foreign currency options, interest rate swaps, interest rate currency swap agreements and interest rate options primarily to manage its exposures to fluctuations in interest rates and foreign currency exchange rates. Toyota primarily estimates the fair value of derivative financial instruments using industry-standard valuation models that require observable inputs including interest rates and foreign exchange rates, and the contractual terms. The usage of these models does not require significant judgment to be applied. These derivative financial instruments are classified as Level 2. In other certain cases when market data are not available, key inputs to the fair value measurement include quotes from counterparties, and other market data. Toyota assesses the reasonableness of changes of the quotes using observable market data. These derivative financial instruments are classified as Level 3. Toyota’s derivative fair value measurements consider assumptions about counterparty and Toyota’s own\nnon-performance\nrisk, using such as credit default probabilities.\n\n(vi) Short-term and long-term debt -\n\nThe fair values of short-term and long-term debt including the current portion, except for certain secured loans provided by securitization transactions using special-purpose entities (“Loans Based on Securitization”), are estimated based on the discounted amounts of future cash flows using Toyota’s current borrowing rates for similar liabilities. As these inputs are observable, the fair value of these debts is classified as Level 2.\n\nThe fair values of certain Loans Based on Securitization are primarily estimated based on current market rates and credit spreads for debt with similar maturities. Internal assumptions including prepayment speeds and expected credit losses are used to estimate the timing of cash flows to be paid on the underlying securitized assets. In cases where these valuations utilize unobservable inputs, fair value of Loans Based on Securitization is classified as Level 3.\n\n \n\nF-57\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(3) Financial instruments measured at fair value on recurring basis\n\nThe following table summarizes the fair values of the assets and liabilities measured at fair value on a recurring basis. Transfers between levels of fair value are recognized at the date of the event or change in circumstances that caused the transfer:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nLevel 1\n\n \n \n\nLevel 2\n\n \n \n\nLevel 3\n\n \n  \n\nTotal\n\n \n\nOther financial assets:\n\n  \n\n \n\n \n\n  \n\nFinancial assets measured at fair value through profit or loss\n\n  \n\n \n\n \n\n  \n\nPublic and corporate bonds\n\n  \n \n110,516\n \n \n \n110,488\n \n \n \n10,710\n \n  \n \n231,713\n \n\nStocks\n\n  \n \n— \n \n \n \n— \n \n \n \n46,215\n \n  \n \n46,215\n \n\nInvestment trusts\n\n  \n \n286,799\n \n \n \n331,429\n \n \n \n— \n \n  \n \n618,228\n \n\nInterest rate and currency swap\n\n  \n \n— \n \n \n \n395,588\n \n \n \n— \n \n  \n \n395,588\n \n\nForeign exchange forward, option and other contracts\n\n  \n \n— \n \n \n \n62,991\n \n \n \n24,800\n \n  \n \n87,790\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n  397,315\n  \n \n \n  900,495\n \n \n \n 81,724\n \n  \n \n1,379,534\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFinancial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\n  \n\nPublic and corporate bonds\n\n  \n \n4,487,174\n \n \n \n4,571,862\n \n \n \n19,401\n \n  \n \n9,078,437\n \n\nStocks\n\n  \n \n3,054,754\n \n \n \n— \n \n \n \n192,131\n \n  \n \n3,246,885\n \n\nOther\n\n  \n \n10,947\n \n \n \n— \n \n \n \n— \n \n  \n \n10,947\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n7,552,875\n \n \n \n4,571,862\n \n \n \n211,532\n \n  \n \n12,336,269\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nOther financial liabilities:\n\n  \n\n \n\n \n\n  \n\nFinancial liabilities measured at fair value through profit or loss\n\n  \n\n \n\n \n\n  \n\nInterest rate and currency swap\n\n  \n \n— \n \n \n \n(303,670\n) \n \n \n— \n \n  \n \n(303,670\n) \n\nForeign exchange forward, option and other contracts\n\n  \n \n— \n \n \n \n(16,211\n)\n \n \n— \n \n  \n \n(16,211\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n— \n \n \n \n(319,881\n)\n \n \n— \n \n  \n \n(319,881\n)\n\n●\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-5\n\n8\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nLevel 1\n\n \n\n  \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n  \n\nTotal\n\n \n\nOther financial assets:\n\n  \n\n  \n\n \n\n  \n\nFinancial assets measured at fair value through profit or loss\n\n  \n\n  \n\n \n\n  \n\nPublic and corporate bonds\n\n  \n\n \n\n123,344\n\n \n\n  \n\n \n\n132,079\n\n \n\n \n\n \n\n12,200\n\n \n\n  \n\n \n\n267,623\n\n \n\nStocks\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n884,667\n\n \n\n  \n\n \n\n884,667\n\n \n\nInvestment trusts\n\n  \n\n \n\n352,452\n\n \n\n  \n\n \n\n295,737\n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n648,189\n\n \n\nInterest rate and currency swap\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n414,706\n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n414,706\n\n \n\nForeign exchange forward, option and other contracts\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n12,947\n\n \n\n \n\n \n\n51,795\n\n \n\n  \n\n \n\n64,741\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n475,796\n\n \n\n  \n\n \n\n855,468\n\n \n\n \n\n \n\n948,661\n\n \n\n  \n\n \n\n2,279,925\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nFinancial assets measured at fair value through other comprehensive income\n\n  \n\n  \n\n \n\n  \n\nPublic and corporate bonds (Note 1)\n\n  \n\n \n\n4,449,366\n\n \n\n  \n\n \n\n3,084,093\n\n \n\n \n\n \n\n19,447\n\n \n\n  \n\n \n\n7,552,906\n\n \n\nStocks (Note 2)\n\n  \n\n \n\n3,311,613\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n263,565\n\n \n\n  \n\n \n\n3,575,178\n\n \n\nOther\n\n  \n\n \n\n9,855\n\n \n\n  \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n9,855\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n7,770,835\n\n \n\n  \n\n \n\n3,084,093\n\n \n\n \n\n \n\n283,011\n\n \n\n  \n\n \n\n11,137,940\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nOther financial liabilities:\n\n  \n\n  \n\n \n\n  \n\nFinancial liabilities measured at fair value through profit or loss\n\n  \n\n  \n\n \n\n  \n\nInterest rate and currency swap\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n(300,486\n\n) \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n(300,486\n\n) \n\nForeign exchange forward, option and other contracts\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n(57,469\n\n) \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n(57,469\n\n) \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n(357,955\n\n) \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n(357,955\n\n) \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n(Note 1) Includes 19,447 million yen of “Assets held for sale” recorded on the consolidated statement of financial position.\n\n(Note 2) Includes 20,799 million yen of “Assets held for sale” recorded on the consolidated statement of financial position.\n\nThe gain (loss) on derivative transactions as of March 2024, 2025 and 2026 were ¥(267,190) million, ¥(80,831) million and ¥37,445 million, respectively. The amounts are included in cost of financial services, foreign exchange gain (loss), net, other finance income and other finance costs.\n\n \n\nF-59\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(4) Changes in financial instruments classified as Level 3 and measured at fair value on\na\nrecurring basis\n\nThe following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2025 and 2026:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended March 31, 202\n5\n\n \n\n \n  \n\nPublic and\n\ncorporate\n\nbonds\n\n \n \n\nStocks\n\n \n \n\nForeign exchange\nforward, option\nand other\ncontracts\n\n \n  \n\nTotal\n\n \n\nBalance at beginning of year\n\n  \n \n31,170\n \n \n \n401,089\n \n \n \n— \n \n  \n \n432,259\n \n\nTotal gains (losses)\n\n  \n\n \n\n \n\n  \n\nNet income (loss)\n\n  \n \n(8\n) \n \n \n(87,665\n) \n \n \n24,800\n \n  \n \n(62,873\n) \n\nOther comprehensive income (loss)\n\n  \n \n— \n \n \n \n(40,717\n) \n \n \n— \n \n  \n \n(40,717\n) \n\nPurchases and issuances\n\n  \n \n9,572\n \n \n \n36,330\n \n \n \n— \n \n  \n \n45,902\n \n\nSales and settlements\n\n  \n \n(9,210\n) \n \n \n(1,035\n) \n \n \n— \n \n  \n \n(10,245\n) \n\nTransfer to (from) Level 3\n\n  \n \n(3,125\n) \n \n \n(77,884\n) \n \n \n— \n \n  \n \n(81,009\n) \n\nOthers\n\n  \n \n1,711\n \n \n \n8,228\n \n \n \n— \n \n  \n \n9,939\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at end of year\n\n  \n \n30,111\n \n \n \n 238,346\n \n \n \n24,800\n \n  \n \n 293,257\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nUnrealized gains or losses included in profit or loss on assets\n \nheld\n \nat March 31\n\n  \n \n(76\n) \n \n \n(87,665\n) \n \n \n— \n \n  \n \n(87,741\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n(76\n) \n \n \n(87,665\n) \n \n \n— \n \n  \n \n(87,741\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended March 31, 2026\n\n \n\n \n\n  \n\nPublic and\n\ncorporate\n\nbonds\n\n \n\n \n\nStocks\n\n \n\n \n\nForeign exchange\nforward, option\nand other\ncontracts\n\n \n\n  \n\nTotal\n\n \n\nBalance at beginning of year\n\n  \n\n \n\n30,111\n\n \n\n \n\n \n\n238,346\n\n \n\n \n\n \n\n24,800\n\n \n\n  \n\n \n\n293,257\n\n \n\nTotal gains (losses)\n\n  \n\n \n\n \n\n  \n\nNet income (loss)\n\n  \n\n \n\n35\n\n \n\n \n\n \n\n8,074\n\n \n\n \n\n \n\n25,277\n\n \n\n  \n\n \n\n33,386\n\n \n\nOther comprehensive income (loss)\n\n  \n\n \n\n— \n\n \n\n \n\n \n\n17,978\n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n17,978\n\n \n\nPurchases and issuances\n\n  \n\n \n\n9,692\n\n \n\n \n\n \n\n857,263\n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n866,955\n\n \n\nSales and settlements\n\n  \n\n \n\n(7,399\n\n) \n\n \n\n \n\n(4,801\n\n) \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n(12,200\n\n) \n\nTransfer to (from) Level 3\n\n  \n\n \n\n(1,452\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n— \n\n \n\n  \n\n \n\n(1,452\n\n) \n\nOthers\n\n  \n\n \n\n659\n\n \n\n \n\n \n\n31,371\n\n \n\n \n\n \n\n1,718\n\n \n\n  \n\n \n\n33,749\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nBalance at end of year (Note)\n\n  \n\n \n\n31,646\n\n \n\n \n\n \n\n1,148,232\n\n \n\n \n\n \n\n51,795\n\n \n\n  \n\n \n\n1,231,673\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nUnrealized gains or losses included in profit or loss on assets held at March 31\n\n  \n\n \n\n25\n\n \n\n \n\n \n\n8,074\n\n \n\n \n\n \n\n25,277\n\n \n\n  \n\n \n\n33,376\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n25\n\n \n\n \n\n \n\n8,074\n\n \n\n \n\n \n\n25,277\n\n \n\n  \n\n \n\n33,376\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\n(Note) Includes 21,322 million yen of “Assets held for sale” recorded on the consolidated statement of financial position.\n\n \n\nF-\n60\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nNet income (loss) in public and corporate bonds, stocks and derivative financial instruments, other than transactions related to financial services, are each included in “Other finance income” and “Other finance costs” in the accompanying consolidated statement of income. Transactions related to financial services are included in each of “Sales revenues - Financial services” and “Cost of financial services” in the consolidated statement of income.\n\nIn the reconciliation table above, derivative financial instruments are presented net of assets and liabilities.\n\n“Others” includes foreign currency translation adjustments for the years ended March 31, 2025 and 2026.\n\nTransfer from Level 3 of stocks recognized in the year ended March 31, 2025 is due to the listing of investees.\n\n(5) Financial assets and liabilities measured at amortized cost\n\nThe following table summarizes the carrying amount and the fair value of financial assets and liabilities measured on an amortized cost basis:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nCarrying\namount\n\n \n  \n\nFair value\n\n \n\n \n  \n\nLevel 1\n\n \n  \n\nLevel 2\n\n \n  \n\nLevel 3\n\n \n  \n\nTotal\n\n \n\nReceivables related to financial services\n\n  \n \n33,625,035\n \n  \n \n— \n \n  \n \n— \n \n  \n \n34,004,152\n \n  \n \n34,004,152\n \n\nInterest-bearing liabilities\n\n  \n\n  \n\n  \n\n  \n\n  \n\nLong-term debt (Including current portion)\n\n  \n \n32,795,058\n \n  \n \n— \n \n  \n \n25,706,416\n \n  \n \n6,972,698\n \n  \n \n32,679,114\n \n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31, 2026\n\n \n\n \n\n  \n\nCarrying\namount\n\n \n\n  \n\nFair value\n\n \n\n \n\n  \n\nLevel 1\n\n \n\n  \n\nLevel 2\n\n \n\n  \n\nLevel 3\n\n \n\n  \n\nTotal\n\n \n\nReceivables related to financial services\n\n  \n\n \n\n38,966,655\n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n39,407,482\n\n \n\n  \n\n \n\n39,407,482\n\n \n\nInterest-bearing liabilities\n\n  \n\n  \n\n  \n\n  \n\n  \n\nLong-term debt (Including current portion)\n\n  \n\n \n\n36,795,373\n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n29,046,698\n\n \n\n  \n\n \n\n7,653,684\n\n \n\n  \n\n \n\n36,700,382\n\n \n\nOf financial assets and liabilities that are measured on an amortized cost basis, those with carrying values that approximate fair value are excluded from the table above.\n\n \n\nF-61\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n22. Offsetting Financial Assets and Liabilities\n\nThe following table summarizes the amounts of financial assets and financial liabilities that are subject to an enforceable master netting agreement or similar agreement but not set off because they do not meet some or all of the offsetting criteria for financial assets and financial liabilities. With respect to financial instruments that may be offset in the future based on\nset-off\nrights associated with master netting agreements or similar agreements, as well as the associated collateral, the\nset-off\nwill be enforceable only when certain circumstances, such as when the counterparty cannot perform on its obligations due to bankruptcy or other reasons, arise.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nGross amounts of\n\nrecognized\n\nfinancial assets\n\nand financial\n\nliabilities\n\n \n  \n\nAmounts not offset\n\n \n \n\nNet amount\n\n \n\n \n  \n\nFinancial\n\ninstruments\n\n \n \n\nCollateral of\n\nfinancial\n\ninstruments\n\n \n\nOther financial assets Derivatives\n\n  \n \n483,378\n \n  \n \n(131,836)\n \n \n \n (67,495)\n \n \n \n284,046\n \n\nOther financial liabilities Derivatives\n\n  \n \n319,881\n \n  \n \n(131,836)\n\n \n \n(73,689)\n\n \n \n114,356\n \n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nGross amounts of\nrecognized\nfinancial assets\nand financial\nliabilities\n\n \n  \n\nAmounts not offset\n\n \n \n\nNet amount\n\n \n\n \n  \n\nFinancial\n\ninstruments\n\n \n \n\nCollateral of\nfinancial\ninstruments\n\n \n\nOther financial assets Derivatives\n\n  \n \n479,447\n \n  \n\n \n\n(138,762)\n\n \n\n \n \n(63,177)\n \n \n\n \n\n277,508\n\n \n\nOther financial liabilities Derivatives\n\n  \n \n357,955\n \n  \n\n \n\n(138,762)\n\n \n\n \n \n(23,138)\n \n \n\n \n\n196,055\n\n \n\nThe amounts offset, as presented in the consolidated statement of financial position, in accordance with the criteria for offsetting financial assets and financial liabilities were immaterial.\n\n23. Employee benefits\n\n(1) Overview of post-employment benefit Plans\n\nUpon terminations of employment, employees of TMC and subsidiaries in Japan are entitled, under the retirement plans of each company, to\nlump-sum\nindemnities or pension payments, based on current rates of pay and length of service or the number of “points” mainly determined by those. Under normal circumstances, the minimum payment prior to retirement age is an amount based on voluntary retirement. In cases of involuntary termination, including retirement upon reaching the mandatory retirement age, employees are granted an additional allowance.\n\nEffective October 1, 2004, TMC amended its retirement plan to introduce a “point” based retirement benefit plan. Under the new plan, employees are entitled to\nlump-sum\nor pension payments determined based on accumulated “points” vested in each year of service.\n\nThere are three types of “points” that vest in each year of service consisting of “service period points” which are attributed to the length of service, “job title points” which are attributed to the job title of each employee, and “performance points” which are attributed to the annual performance evaluation of each employee. Under normal\n\n \n\nF-62\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\ncircumstances, the minimum payment prior to retirement age is an amount reflecting an adjustment rate applied to represent voluntary retirement. Employees receive additional benefits upon involuntary retirement, including retirement at the age limit.\n\nEffective October 1, 2005, TMC partly amended its retirement plan and introduced the quasi cash-balance plan under which benefits are determined based on the variable-interest crediting rate rather than the fixed-interest crediting rate as was in the\npre-amended\nplan.\n\nTMC and most subsidiaries in Japan have contributory funded defined benefit pension plans, which are pursuant to the Corporate Defined Benefit Pension Plan Law (CDBPPL). Contributions to the plans are funded with several financial institutions in accordance with the applicable laws and regulations. These pension plan assets consist principally of common stocks, government bonds and insurance contracts.\n\nMost foreign subsidiaries have pension plans or severance indemnity plans covering substantially all of their employees under which the cost of benefits is currently invested or accrued. The benefits for these plans are based primarily on lengths of service and current rates of pay.\n\nThese post-employment benefit plans are exposed to general investment risk, interest rate risk and inflation risk.\n\nPension costs and defined benefit obligations are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, retirement rate, salary increase rate, mortality rates and other factors. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect Toyota’s pension costs and obligations.\n\nThe most critical assumption impacting the calculation of pension costs and defined benefit obligations is the discount rates. Toyota determines discount rates mainly based on the rates of high quality fixed income bonds currently available and expected to be available during the period to maturity of the defined benefit pension plans.\n\nToyota uses a March 31 measurement date for its post-employment benefit plans.\n\n \n\nF-63\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(2) Defined benefit obligations and plan assets\n\nChanges in present value of defined benefit obligations and fair value of plan assets are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n\nPresent value of defined benefit obligations:\n\n  \n\n \n\n \n\n \n\nBenefit obligations at beginning of year\n\n  \n \n1,898,339\n \n \n \n1,651,016\n \n \n \n1,729,554\n \n \n \n1,622,053\n \n\nCurrent service cost\n\n  \n \n76,758\n \n \n \n49,225\n \n \n \n62,259\n \n \n \n50,747\n \n\nInterest cost\n\n  \n \n26,290\n \n \n \n81,411\n \n \n \n37,798\n \n \n \n81,582\n \n\nRemeasurements:\n\n  \n\n \n\n \n\n \n\nChanges in demographic assumptions\n\n  \n \n(3,635\n)\n \n \n68\n \n \n \n(2,153\n)\n \n \n1,944\n \n\nChanges in financial assumptions\n\n  \n \n(181,128\n)\n \n \n(48,712\n)\n \n \n(181,466\n)\n \n \n(33,796\n) \n\nOther\n\n  \n \n(385\n)\n \n \n(15,579\n)\n \n \n4,347\n \n \n \n44,858\n \n\nPast service cost\n\n  \n \n(184\n)\n \n \n(3,027\n)\n \n \n(409\n)\n \n \n(591\n)\n\nPlan participants’ contributions\n\n  \n \n1,065\n \n \n \n4,355\n \n \n \n1,027\n \n \n \n4,657\n \n\nBenefits paid\n\n  \n \n(86,871\n)\n \n \n(76,204\n)\n \n \n(86,522\n)\n \n \n(84,889\n)\n\nEffect of changes in exchange rates and other\n\n  \n \n(696\n)\n \n \n(20,499\n)\n \n \n(86,937\n)\n \n \n114,563\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBenefit obligations at end of year\n\n  \n \n1,729,554\n \n \n \n1,622,053\n \n \n \n1,477,496\n \n \n \n1,801,130\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFair value of plan assets:\n\n  \n\n \n\n \n\n \n\nPlan assets at beginning of year\n\n  \n \n2,128,476\n \n \n \n1,284,918\n \n \n \n2,081,009\n \n \n \n1,271,236\n \n\nInterest income\n\n  \n \n29,462\n \n \n \n57,149\n \n \n \n48,763\n \n \n \n63,712\n \n\nRemeasurement\n\n  \n\n \n\n \n\n \n\nActual return on plan assets, excluding interest income\n\n  \n \n(66,135\n)\n \n \n(33,874\n)\n \n \n106,715\n \n \n \n892\n \n\nEmployer contributions\n\n  \n \n35,669\n \n \n \n19,016\n \n \n \n48,385\n \n \n \n19,099\n \n\nPlan participants’ contributions\n\n  \n \n1,065\n \n \n \n4,355\n \n \n \n1,027\n \n \n \n4,657\n \n\nBenefits paid\n\n  \n \n(47,528\n)\n \n \n(42,023\n)\n \n \n(46,738\n)\n \n \n(47,090\n)\n\nEffect of changes in exchange rates and other\n\n  \n \n— \n \n \n \n(18,305\n)\n \n \n(286,583\n) \n \n \n97,536\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nPlan assets at end of year\n\n  \n \n2,081,009\n \n \n \n1,271,236\n \n \n \n1,952,578\n \n \n \n1,410,042\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe impact of minimum funding requirement and asset ceiling\n\n  \n \n572,107\n \n \n \n— \n \n \n \n718,851\n \n \n \n— \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet defined benefit liability (asset)\n\n  \n \n220,652\n \n \n \n350,817\n \n \n \n243,769\n \n \n \n391,088\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Effect of changes in exchange rates and other” for the year ended March 31, 2026 includes a partial return from retirement benefit trusts and amounts reclassified to assets held for sale and liabilities directly associated with assets held for sale.\n\n \n\nF-64\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe funded defined benefit obligations and the unfunded defined benefit obligations are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n\n \n  \n \n \n \n \n \n \n \n \n \n \n \n\nFunded defined benefit obligations\n\n  \n \n1,265,948\n \n \n \n1,225,195\n \n \n \n1,076,271\n \n \n \n1,342,118\n \n\nPlan assets\n\n  \n \n(2,081,009\n)\n \n \n(1,271,236\n)\n \n \n(1,952,578\n)\n \n \n(1,410,042\n) \n\nThe impact of minimum funding requirement and asset ceiling\n\n  \n \n572,107\n \n \n \n—\n \n \n \n718,851\n \n \n \n—\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nSubtotal\n\n  \n \n(242,954\n)\n \n \n(46,040\n)\n \n \n(157,457\n\n)\n\n \n \n(67,924\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nUnfunded defined benefit obligations\n\n  \n \n463,606\n \n \n \n396,857\n \n \n \n401,226\n \n \n \n459,012\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n220,652\n \n \n \n350,817\n \n \n \n243,769\n \n \n \n391,088\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe net defined benefit liability (asset) recognized in the consolidated statement of financial position are comprised of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n\n \n  \n \n \n \n \n \n \n \n \n \n \n \n\nRetirement benefit liabilities\n\n  \n \n562,375\n \n \n \n457,193\n \n \n \n505,624\n \n \n \n516,859\n \n\nOther\nnon-current\nassets (Retirement benefit assets)\n\n  \n \n(341,723\n)\n \n \n(106,376\n)\n \n \n(261,855\n)\n \n \n(125,771\n\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet amount recognized\n\n  \n \n220,652\n \n \n \n350,817\n \n \n \n243,769\n \n \n \n391,088\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe weighted average duration of defined benefit obligations are as follows:\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\n \n  \n\nJapanese plans\n\n \n  \n\nForeign plans\n\n \n  \n\nJapanese plans\n\n \n  \n\nForeign plans\n\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n\nWeighted average duration of defined benefit obligations\n\n  \n \n16.9 years\n \n  \n \n13.1 years\n \n  \n \n16.8 years\n \n  \n \n12.0 years\n \n\n(3) The major items of actuarial assumption\n\nThe weighted-average discount rates used to determine the present value of defined benefit obligations are as follows:\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n \n\nJapanese plans\n\n \n \n\nForeign plans\n\n \n\n \n  \n \n \n \n \n \n \n \n \n \n \n \n\nDiscount rate\n\n  \n \n2.2\n% \n \n \n5.4\n% \n \n \n3.1\n% \n \n \n5.5\n% \n\n \n\nF-6\n\n5\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(4) Fair value of plan assets\n\nToyota’s policy and objective for plan asset management is to maximize returns on plan assets to meet future benefit payment requirements under risks which Toyota considers permissible. Asset allocations under the plan asset management are determined based on plan asset management policies of each plan which are established to achieve the optimized asset compositions in terms of long-term overall plan asset management. When actual allocations are not in line with target allocations, Toyota rebalances its investments in accordance with the policies. Prior to making individual investments, Toyota performs\nin-depth\nassessments of corresponding factors including category of products, industry type, currencies and liquidity of each potential investment under consideration to mitigate concentrations of risks such as market risk and foreign currency exchange rate risk. To assess performance of the investments, Toyota establishes benchmark return rates for each individual investment, combines these individual benchmark rates based on the asset composition ratios within each asset category, and compares the combined rates with the corresponding actual return rates on each asset category.\n\nThe following table summarizes the fair value of classes of plan assets.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2025\n\n \n\n \n  \n\nJapanese plans\n\n \n  \n\nForeign plans\n\n \n\n \n  \n\nQuoted prices in active\n\nmarkets\n\n \n  \n\nTotal\n\n \n  \n\nQuoted prices in active\n\nmarkets\n\n \n  \n\nTotal\n\n \n\n \n  \n\nAvailable\n\n \n  \n\nNot available\n\n \n  \n\nAvailable\n\n \n  \n\nNot available\n\n \n\nStocks\n\n  \n \n375,443\n \n  \n \n— \n \n  \n \n375,443\n \n  \n \n128,908\n \n  \n \n— \n \n  \n \n128,908\n \n\nGovernment bonds\n\n  \n \n239,849\n \n  \n \n— \n \n  \n \n239,849\n \n  \n \n301,955\n \n  \n \n— \n \n  \n \n301,955\n \n\nBonds (other)\n\n  \n \n2,177\n \n  \n \n77,768\n \n  \n \n79,944\n \n  \n \n— \n \n  \n \n246,851\n \n  \n \n246,851\n \n\nCommingled funds\n\n  \n \n— \n \n  \n \n500,917\n \n  \n \n500,917\n \n  \n \n— \n \n  \n \n398,380\n \n  \n \n398,380\n \n\nInsurance contracts\n\n  \n \n— \n \n  \n \n224,694\n \n  \n \n224,694\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nOther\n\n  \n \n400,852\n \n  \n \n259,310\n \n  \n \n660,162\n \n  \n \n44,066\n \n  \n \n151,076\n \n  \n \n195,142\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n1,018,321\n \n  \n \n1,062,688\n \n  \n \n2,081,009\n \n  \n \n474,929\n \n  \n \n796,306\n \n  \n \n1,271,236\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31, 2026\n\n \n\n \n  \n\nJapanese plans\n\n \n  \n\nForeign plans\n\n \n\n \n  \n\nQuoted prices in active\n\nmarkets\n\n \n  \n\nTotal\n\n \n  \n\nQuoted prices in active\n\nmarkets\n\n \n  \n\nTotal\n\n \n\n \n  \n\nAvailable\n\n \n  \n\nNot available\n\n \n  \n\nAvailable\n\n \n  \n\nNot available\n\n \n\nStocks\n\n  \n \n357,318\n \n  \n \n— \n \n  \n \n357,318\n \n  \n \n161,268\n \n  \n \n— \n \n  \n \n161,268\n \n\nGovernment bonds\n\n  \n \n391,927\n \n  \n \n— \n \n  \n \n391,927\n \n  \n \n307,740\n \n  \n \n29,380\n \n  \n \n337,120\n \n\nBonds (other)\n\n  \n \n314\n \n  \n \n76,390\n \n  \n \n76,705\n \n  \n \n— \n \n  \n \n261,867\n \n  \n \n261,867\n \n\nCommingled funds\n\n  \n \n— \n \n  \n \n522,785\n \n  \n \n522,785\n \n  \n \n— \n \n  \n \n470,609\n \n  \n \n470,609\n \n\nInsurance contracts\n\n  \n \n— \n \n  \n \n154,224\n \n  \n \n154,224\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nOther\n\n  \n \n219,996\n \n  \n \n229,623\n \n  \n \n449,619\n \n  \n \n36,022\n \n  \n \n143,157\n \n  \n \n179,179\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n969,555\n \n  \n \n983,023\n \n  \n \n1,952,578\n \n  \n \n505,029\n \n  \n \n905,013\n \n  \n \n1,410,042\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n“Other” consists of cash equivalents, other private placement investment funds and other assets.\n\n \n\nF-6\n\n6\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(5) The impact of minimum funding requirements and asset ceilings\n\nThe impact of minimum funding requirements and asset ceilings is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\n \n  \n\nJapanese\nplans\n\n \n  \n\nForeign\nplans\n\n \n  \n\nJapanese\nplans\n\n \n  \n\nForeign\nplans\n\n \n\nBeginning balance of the fiscal year\n\n  \n \n268,228\n \n  \n \n— \n \n  \n \n572,107\n \n  \n \n— \n \n\nInterest income\n\n  \n \n4,694\n \n  \n \n— \n \n  \n \n13,542\n \n  \n \n— \n \n\nRemeasurements:\n\n  \n\n  \n\n  \n\n  \n\nChange in asset ceiling excluding interest income\n\n  \n \n299,185\n \n  \n \n— \n \n  \n \n133,201\n \n  \n \n— \n \n\nTranslation adjustments\n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nEnding balance of the fiscal year\n\n  \n \n  572,107\n \n  \n \n\n \n  — \n \n  \n \n 718,851\n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n(6) The sensitivity analysis\n\nThe following table illustrates the effects on defined benefit obligations of the change in weighted-average discount rates, assuming all other assumptions are consistent.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n \n\n2026\n\n \n\n \n  \n\nJapanese\n\nplans\n\n \n \n\nForeign\n\nplans\n\n \n \n\nJapanese\n\nplans\n\n \n \n\nForeign\n\nplans\n\n \n\n0.5% decrease\n\n  \n \n119,138\n \n \n \n113,268\n \n \n \n88,346\n \n \n \n120,176\n \n\n0.5% increase\n\n  \n \n(103,296\n)\n \n \n(110,060\n)\n \n \n(80,862\n)\n \n \n(118,461\n) \n\n(7) Impact on future cash flow\n\nContributions to plan assets by TMC and some of its consolidated subsidiaries are determined by various factors such as employee salary levels and years of service, funded status of plan assets, and actuarial calculations. In addition, according to the rules of the defined benefit corporate pension law, the corporate pension fund system recalculates the amount of the balance every five years with the end date of the reporting period as the base date so that financial balance can be maintained in the future. TMC and some of its consolidated subsidiaries may make a necessary contribution if the reserve amount is below the minimum reserve amount.\n\nIn the following year (the year ending March 31, 202\n7\n), Toyota expects to contribute ¥34,336 million for Japanese plans and ¥18,488 million for foreign plans to the post-employment benefit plans.\n\n(8) Benefit obligations for\nnon-retirement\npension for retirees and benefit obligations for absentee\n\nToyota’s U.S. subsidiaries provide certain health care and life insurance benefits to eligible retired employees. In addition, Toyota provides benefits to certain former or inactive employees after employment, but before retirement. These benefits are provided through various insurance companies, health care providers and others. The costs of these benefits are recognized over the period the employee provides credited service to Toyota. Toyota’s obligations under these arrangements are not material.\n\n \n\nF-6\n\n7\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(9) Payroll expenses\n\nPayroll expenses included in “Cost of products sold” and “Selling, general and administrative” in the consolidated statement of income (including expenses for post-employment benefit plans) for the years ended March 31, 2024, 2025 and 2026 are ¥4,385,112 million, ¥4,794,497 million and ¥5,081,959 million, respectively.\n\n24. Liabilities for quality assurance\n\nToyota provides product warranties for certain defects mainly resulting from manufacturing based on warranty contracts with its customers at the time of sale of products. Toyota accrues estimated warranty costs to be incurred in the future in accordance with the warranty contracts. In addition to product warranties, Toyota initiates recalls and other safety measures to repair or to replace parts which might be expected to fail from products safety perspectives or customer satisfaction standpoints. Toyota accrues for costs of recalls and other safety measures based on the amount estimated from historical experience.\n\nLiabilities for product warranties and liabilities for recalls and other safety measures have been combined into “Liabilities for quality assurance” in the consolidated statement of financial position due to the fact that both are liabilities for costs to repair or replace defects of vehicles and the amounts incurred for recalls and other safety measures may affect the amounts incurred for product warranties and vice versa.\n\nThe net change in liabilities for quality assurance for the year ended March 31, 2026 consists of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended\n\nMarch 31,\n\n \n\n \n\n  \n\n2026\n\n \n\nLiabilities for quality assurance at beginning of year\n\n  \n\n \n\n1,965,748\n\n \n\nAdditional provisions\n\n  \n\n \n\n1,008,635\n\n \n\nUtilization\n\n  \n\n \n\n(782,028\n\n) \n\nReversals\n\n  \n\n \n\n(84,448\n\n) \n\nUnwinding of discount and effect of change in discount rate\n\n  \n\n \n\n38,722\n\n \n\nOther\n\n  \n\n \n\n(48,686\n\n) \n\n  \n\n \n\n \n\n \n\nLiabilities for quality assurance at end of year\n\n  \n\n \n\n2,097,943\n\n \n\n  \n\n \n\n \n\n \n\n“Other” primarily includes the impact of currency translation adjustments, the impact of consolidation and deconsolidation of certain entities due to changes in ownership interest, and the impact of reclassifications to liabilities directly associated with assets held for sale.\n\n \n\nF-68\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe table below shows the net changes in liabilities for recalls and other safety measures which are included in liabilities for quality assurance above for the year ended March 31, 2026.\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended\nMarch 31,\n\n \n\n \n\n  \n\n2026\n\n \n\nLiabilities for recalls and other safety measures at beginning of year\n\n  \n\n \n\n1,236,465\n\n \n\nAdditional provisions\n\n  \n\n \n\n844,899\n\n \n\nUtilization\n\n  \n\n \n\n(611,331\n\n) \n\nReversals\n\n  \n\n \n\n(8,562\n\n) \n\nUnwinding of discount and effect of change in discount rate\n\n  \n\n \n\n38,722\n\n \n\nOther\n\n  \n\n \n\n(69,081\n\n) \n\n  \n\n \n\n \n\n \n\nLiabilities for recalls and other safety measures at end of year\n\n  \n\n \n\n1,431,112\n\n \n\n  \n\n \n\n \n\n \n\n25. Provisions\n\nThe net change in provisions for the year ended March 31, 2026 consists of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended\nMarch 31,\n\n \n\n \n\n  \n\n2026\n\n \n\nProvisions at beginning of year\n\n  \n\n \n\n714,455\n\n \n\nAdditional provisions\n\n  \n\n \n\n337,665\n\n \n\nUtilization\n\n  \n\n \n\n(131,548\n\n) \n\nReversals\n\n  \n\n \n\n(2,082\n\n) \n\nOther\n\n  \n\n \n\n11,165\n\n \n\n  \n\n \n\n \n\n \n\nProvisions at end of year\n\n  \n\n \n\n929,654\n\n \n\n  \n\n \n\n \n\n \n\n“Other” primarily includes the impact of currency translation adjustments, consolidation and deconsolidation of certain entities due to changes in ownership interests, and reclassifications to liabilities directly associated with assets held for sale.\n\nProvisions consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the years ended\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nCurrent liabilities\n\n  \n\n \n\n413,352\n\n \n\n  \n\n \n\n431,191\n\n \n\nNon-current liabilities\n\n  \n\n \n\n301,103\n\n \n\n  \n\n \n\n498,463\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n714,455\n\n \n\n  \n\n \n\n929,654\n\n \n\n  \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n\nProvisions include those related to compensation obligations arising from long-term contracts with suppliers when purchases of parts do not meet fixed or minimum quantities, as well as provisions related to the logistics and dismantling of end-of-life batteries and other provisions. See Note 32 for contractual commitments and contingent liabilities.\n\n \n\nF-6\n9\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n2\n6\n. Equity and other equity items\n\n(1) Equity management\n\nToyota will invest efficiently in the maintenance and replacement of conventional manufacturing facilities and the introduction of new products, while focusing its capital investments and research and development on areas that contribute to strengthening competitiveness and future growth. Through these activities, Toyota aims to improve corporate value and maintain sustainable growth to realize a new mobility society. These activities are generally financed by Toyota Motor Corporation’s shareholders’ equity, supplemented by short-term and long-term debt as necessary.\n\nThe amounts of Toyota Motor Corporation shareholders’ equity and short-term and long-term debt are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nToyota Motor Corporation Shareholders’ equity\n\n  \n \n35,924,826\n \n  \n \n39,918,854\n \n\nShort-term and long-term debt\n\n  \n \n38,792,879\n \n  \n \n43,205,469\n \n\n(2) Number of shares\n\nAs of March 31, 2024, 2025 and 2026, the total number of authorized shares of TMC’s common stock was 50,000,000,000.\n\nChanges in the shares of common stock issued are as follows:\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nCommon stock issued:\n\n  \n\n  \n\n  \n\nBalance at beginning of year\n\n  \n \n16,314,987,460\n \n  \n \n16,314,987,460\n \n  \n \n15,794,987,460\n \n\nChanges during the year\n\n  \n \n— \n \n  \n \n(520,000,000\n) \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at end of year\n\n  \n \n16,314,987,460\n \n  \n \n15,794,987,460\n\n  \n \n15,794,987,460\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe common stock issued by TMC is\nno-par\nvalue stock with no restrictions on shareholder rights, and is fully paid.\n\nThe total number of treasury stock (including the common stock issued by TMC held by the stock grant ESOP) was 2,840,815,433, 2,746,057,686 and 2,761,602,986 as of March 31, 2024, 2025 and 2026, respectively.\n\n(3) Capital surplus and retained earnings\n\nCapital surplus consists of capital reserves and other capital surplus. Retained earnings consist of a retained earnings reserve and other retained earnings. The Companies Act of Japan provides that an amount equal to 10% of distributions from surplus paid by TMC and its Japanese subsidiaries be appropriated to a capital reserve or a retained earnings reserve. No further appropriations are required when the total amount of the capital reserves and the retained earnings reserve reaches 25% of capital stock. The Companies Act provides that the retained earnings reserve of TMC and its Japanese subsidiaries is restricted and cannot be used for dividend payments, and is excluded from the calculation of profits available for dividends.\n\n \n\nF-\n70\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe amounts of statutory retained earnings of TMC available for dividend payments to shareholders were ¥\n\n18,333,862\n\n \n\nmillion and ¥\n\n20,449,105\n\n million as of March 31, 2025 and 2026, respectively. In accordance with customary practice in Japan, the distributions from surplus are not accrued in the financial statements for the corresponding period, but are recorded in the subsequent accounting period after shareholders’ approval has been obtained.\n\nRetained earnings at March 31, 2026 includes ¥\n\n3,898,125\n\n \n\nmillion relating to equity in undistributed earnings of associates and joint ventures.\n\n(4) Treasury stock\n\nThe repurchase, reissuance and retirement of treasury stock are as follows:\n\nFor the year ended March 31, 2024\n\nRepurchase of treasury stock\n\n1) Repurchasing of treasury stock resolved at the Board of Directors meeting held on May 10, 2023\n\nReason for repurchasing treasury stock -\n\nThe repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.\n\nDetails of matters relating to repurchase -\n\n \n\nNumber of common shares repurchased\n\n  \n64,590,700 shares\n\nTotal purchase price for repurchase of shares\n\n  \n¥150,000 million\n\n2) Repurchasing of treasury stock resolved at the Board of Directors meeting held on November 1, 2023\n\nReason for repurchasing treasury stock -\n\nThe repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.\n\nDetails of matters relating to repurchase -\n\n \n\nNumber of common shares repurchased\n\n  \n26,880,600 \nshares\n\nTotal purchase price for repurchase of shares\n\n  \n¥81,037 million\n\nFor the year ended March 31, 2025\n\nRepurchase of treasury stock\n\n1) Repurchasing of treasury stock resolved at the Board of Directors meeting held on November 1, 2023\n\nReason for repurchasing treasury stock -\n\nThe repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.\n\n \n\nF-\n7\n1\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nDetails of matters relating to repurchase -\n\n \n\nNumber of common shares repurchased\n\n  \n\n  5,216,600 shares   \n\nTotal purchase price for repurchase of shares\n\n  \n\n  ¥18,962 million\n\n2) Repurchasing of treasury stock resolved at the Board of Directors meeting held on May 8, 2024 and September 24, 2024\n\nReason for repurchasing treasury stock -\n\nThe repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.\n\nDetails of matters relating to repurchase -\n\n \n\nNumber of common shares repurchased\n\n  \n\n  420,633,175 shares  \n\nTotal purchase price for repurchase of shares\n\n  \n\n  ¥1,160,051 million\n\nRetirement of treasury stock\n\nRetiring of treasury stock resolved at the Board of Directors meeting held on May 8, 2024\n\nReason for retiring treasury stock -\n\nThe retirement was made to relieve concerns regarding the dilution of TMC’s share value due to disposition of treasury stock in the future.\n\nDetails of matters relating to retirement -\n\n \n\nNumber of common shares retired\n\n  \n\n \n\n  520,000,000 shares  \n\n \n\nFor the year ended March 31, 2026\n\nRepurchase of treasury stock\n\nRepurchasing of treasury stock resolved at the Board of Directors meeting held on May 8, 2024 and September 24, 2024\n\nReason for repurchasing treasury stock -\n\nThe repurchase was made to promote capital efficiency through more flexible measures than before while comprehensively considering factors such as the price level of its common stock.\n\nDetails of matters relating to repurchase -\n\n \n\nNumber of common shares repurchased\n\n  \n  16,226,100 shares \n\nTotal purchase price for repurchase of shares\n\n \n\n  ¥39,949 million\n\n \n\nF-72\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(5) Other components of equity\n\nOther components of equity are as follows:\n\n \n\n \n \n\nYen in millions\n\n \n\n \n \n\nNet changes in\nrevaluation of\nfinancial assets\nmeasured at fair\nvalue through other\ncomprehensive\nincome\n\n \n \n\nRemeasurements of\ndefined benefit\nplans\n\n \n \n\nExchange\ndifferences on\ntranslating foreign\noperations\n\n \n \n\nTotal\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at April 1, 2023\n\n \n \n933,702\n \n \n \n— \n \n \n \n1,902,493\n \n \n \n2,836,195\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther comprehensive income, net of tax\n\n \n \n716,048\n \n \n \n56,434\n \n \n \n1,344,621\n \n \n \n2,117,103\n \n\nReclassification to retained earnings\n\n \n \n(341,709\n)\n \n \n(45,625\n)\n \n \n— \n \n \n \n(387,334\n) \n\nOther comprehensive income for the period attributable to\nnon-controlling\ninterests\n\n \n \n(7,186\n)\n \n \n(10,809\n)\n \n \n(44,213\n)\n \n \n(62,208\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2024\n\n \n \n1,300,855\n \n \n \n— \n \n \n \n3,202,901\n \n \n \n4,503,756\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther comprehensive income, net of tax\n\n \n \n44,731\n \n \n \n(85,084\n)\n \n \n(705,678\n)\n \n \n(746,031\n)\n\nReclassification to retained earnings\n\n \n \n(234,994\n)\n \n \n94,635\n \n \n \n— \n \n \n \n(140,359\n)\n\nOther comprehensive income for the period attributable to\nnon-controlling\ninterests\n\n \n \n(1,153\n)\n \n \n(9,551\n)\n \n \n3,470\n \n \n \n(7,233\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2025\n\n \n \n1,109,439\n \n \n \n— \n \n \n \n2,500,693\n \n \n \n3,610,133\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther comprehensive income, net of tax\n\n \n \n334,394\n \n \n \n91,099\n \n \n \n1,104,451\n \n \n \n1,529,944\n \n\nReclassification to retained earnings\n\n \n \n(180,113\n)\n \n \n(79,403\n)\n \n \n— \n \n \n \n(259,516\n)\n\nOther comprehensive income for the period attributable to\nnon-controlling\ninterests\n\n \n \n(6,178\n)\n \n \n(11,696\n)\n \n \n(52,073\n)\n \n \n(69,946\n)\n\nTransfer to other comprehensive income associated with assets held for sale\n\n \n\n \n\n(148,535\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n(118,061\n\n)\n\n \n\n \n\n(266,596\n\n)\n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at March 31, 2026\n\n \n \n1,109,007\n\n \n \n— \n \n \n \n3,435,012\n \n \n \n4,544,019\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n73\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(6) Other comprehensive income\n\nThe breakdown of other comprehensive income and the corresponding tax benefits (including\nnon-controlling\ninterests) are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended\nMarch 31, 2024\n\n \n\n \n  \n\nBefore\ntax\n\n \n \n\nTax\neffect\n\n \n \n\nAfter\ntax\n\n \n\nItems that will not be reclassified to profit (loss)\n\n  \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n806,365\n \n \n \n(248,826\n)\n \n \n557,539\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n806,365\n \n \n \n(248,826\n)\n \n \n557,539\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRemeasurements of defined benefit plans\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n57,616\n \n \n \n(11,289\n)\n \n \n46,328\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n57,616\n \n \n \n(11,289\n)\n \n \n46,328\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n156,118\n \n \n \n— \n \n \n \n156,118\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n156,118\n \n \n \n— \n \n \n \n156,118\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nItems that may be reclassified subsequently to profit (loss)\n\n  \n\n \n\n \n\nExchange differences on translating foreign operations\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n1,178,875\n \n \n \n— \n \n \n \n1,178,875\n \n\nReclassification to profit (loss)\n\n  \n \n— \n \n \n \n— \n \n \n \n— \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n1,178,875\n \n \n \n— \n \n \n \n1,178,875\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n33,256\n \n \n \n\n(10,459\n)\n \n \n22,797\n \n\nReclassification to profit (loss)\n\n  \n \n(15,267\n) \n \n \n4,717\n \n \n \n(10,550\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n17,989\n \n \n \n(5,742\n)\n \n \n12,247\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n182,576\n\n \n \n— \n \n \n \n182,576\n \n\nReclassification to profit (loss)\n\n  \n \n(16,579\n) \n \n \n— \n \n \n \n(16,579\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n165,996\n \n \n \n— \n \n \n \n165,996\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income\n\n  \n \n  2,382,959\n \n \n \n  (265,856\n) \n \n \n  2,117,103\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-\n7\n4\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the year ended\nMarch 31, 2025\n\n \n\n \n\n  \n\nBefore\ntax\n\n \n\n \n\nTax\n\neffect\n\n \n\n \n\nAfter\ntax\n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nItems that will not be reclassified to profit (loss)\n\n  \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n153,164\n \n \n \n(51,035\n)\n \n \n102,129\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n153,164\n \n \n \n(51,035\n)\n \n \n102,129\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRemeasurements of defined benefit plans\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n(154,517\n)\n \n \n44,919\n \n \n \n(109,598\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n(154,517\n)\n \n \n44,919\n \n \n \n(109,598\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n(63,213\n)\n \n \n— \n \n \n \n(63,213\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n(63,213\n)\n \n \n— \n \n \n \n(63,213\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nItems that may be reclassified subsequently to profit (loss)\n\n  \n\n \n\n \n\nExchange differences on translating foreign operations\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n(40,479\n)\n \n \n— \n \n \n \n(40,479\n)\n\nReclassification to profit (loss)\n\n  \n \n(787,369\n) \n \n \n— \n \n \n \n(787,369\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n(827,848\n)\n \n \n— \n \n \n \n(827,848\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n40,503\n \n \n \n(9,485\n)\n \n \n31,018\n \n\nReclassification to profit (loss)\n\n  \n \n189\n \n \n \n(49\n)\n \n \n140\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n40,693\n \n \n \n(9,534\n)\n \n \n31,158\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n127,022\n \n \n \n— \n \n \n \n127,022\n \n\nReclassification to profit (loss)\n\n  \n \n(5,682\n)\n \n \n— \n \n \n \n(5,682\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n121,340\n \n \n \n— \n \n \n \n121,340\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income\n\n  \n \n    (730,381\n)\n \n \n (15,650\n) \n \n \n  (746,031\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe gain on the disposal of certain consolidated subsidiaries was reclassified from “Exchange differences on translating foreign operations” to “Foreign exchange gain (loss), net” in the consolidated statement of income for fiscal 2025.\n\n \n\nF-\n7\n5\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the year ended\nMarch 31, 2026\n\n \n\n \n  \n\nBefore\n\ntax\n\n \n \n\nTax\n\neffect\n\n \n \n\nAfter\n\ntax\n\n \n\n \n  \n \n \n \n \n \n \n \n \n\nItems that will not be reclassified to profit (loss)\n\n  \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n513,231\n \n \n \n(161,547\n)\n \n \n351,684\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n513,231\n \n \n \n(161,547\n)\n \n \n351,684\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRemeasurements of defined benefit plans\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n127,129\n \n \n \n(25,777\n)\n \n \n101,352\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n127,129\n \n \n \n(25,777\n)\n \n \n101,352\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n22,331\n \n \n \n— \n \n \n \n22,331\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n22,331\n \n \n \n— \n \n \n \n22,331\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nItems that may be reclassified subsequently to profit (loss)\n\n  \n\n \n\n \n\nExchange differences on translating foreign operations\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n946,309\n \n \n \n— \n \n \n \n946,309\n \n\nReclassification to profit (loss)\n\n  \n \n— \n \n \n \n— \n \n \n \n— \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n946,309\n \n \n \n— \n \n \n \n946,309\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes in revaluation of financial assets measured at fair value through other comprehensive income\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n(78,919\n)\n \n \n25,603\n \n \n \n(53,316\n)\n\nReclassification to profit (loss)\n\n  \n \n185\n\n \n \n(51\n)\n \n \n135\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n(78,733\n)\n \n \n25,552\n \n \n \n(53,181\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nShares of other comprehensive income of equity method investees\n\n  \n\n \n\n \n\nAmount incurred during the year\n\n  \n \n173,617\n\n \n \n— \n \n \n \n173,617\n \n\nReclassification to profit (loss)\n\n  \n \n(12,167\n)\n \n \n— \n \n \n \n(12,167\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet changes\n\n  \n \n161,450\n \n \n \n— \n \n \n \n161,450\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income\n\n  \n \n  1,691,717\n\n \n \n  (161,773\n)\n \n \n   1,529,944\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF-7\n6\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(7) Dividends\n\nPaid dividend amounts are as follows:\n\nFor the year ended March 31, 2024\n\n \n\nResolution\n\n \n\nType of shares\n\n \n \n\nTotal amount\nof dividends\n\n(yen in millions)\n\n \n \n\nDividend per share\n\n(yen)\n\n \n \n\nRecord date\n\n \n\nEffective date\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nThe Board of Directors Meeting on May 10, 2023\n\n \n \nCommon shares\n \n \n \n474,781\n \n \n \n35.00\n \n \nMarch 31, 2023\n \nMay 26, 2023\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe Board of Directors Meeting on November 1, 2023\n\n \n \nCommon shares\n \n \n \n405,416\n \n \n \n30.00\n \n \nSeptember 30, 2023\n \nNovember 22, 2023\n\nFor the year ended March 31, 2025\n\n \n\nResolution\n\n \n\nType of shares\n\n \n \n\nTotal amount\nof dividends\n\n(yen in millions)\n\n \n \n\nDividend per share\n\n(yen)\n\n \n \n\nRecord date\n\n \n\nEffective date\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nThe Board of Directors Meeting on May 8, 2024\n\n \n \nCommon shares\n \n \n \n606,338\n \n \n \n45.00\n \n \nMarch 31, 2024\n \nMay 24, 2024\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe Board of Directors Meeting on November 6, 2024\n\n \n \nCommon shares\n \n \n \n525,991\n \n \n \n40.00\n \n \nSeptember 30, 2024\n \nNovember 26, 2024\n\nFor the year ended March 31, 2026\n\n \n\nResolution\n\n \n\nType of shares\n\n \n \n\nTotal amount\nof dividends\n\n(yen in millions)\n\n \n \n\nDividend per share\n\n(yen)\n\n \n \n\nRecord date\n\n \n\nEffective date\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nThe Board of Directors Meeting on May 8, 2025\n\n \n \nCommon shares\n \n \n \n652,446\n \n \n \n50.00\n \n \nMarch 31, 2025\n \nMay 26, 2025\n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe Board of Directors Meeting on November 5, 2025\n\n \n \nCommon shares\n \n \n \n586,527\n \n \n \n45.00\n \n \nSeptember 30, 2025\n \nNovember 26, 2025\n\n \n\nF-7\n7\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nDividends with a record date within the year ended March 31, but with an effective date after the end of that year are as follows:\n\nFor the year ended March 31, 2026\n\n \n\nResolution\n\n \n\nType of shares\n\n \n \n\nTotal amount\nof dividends\n\n(yen in millions)\n\n \n \n\nDividend per share\n\n(yen)\n\n \n \n\nRecord date\n\n \n\nEffective date\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nThe Board of Directors Meeting on May 8, 2026\n\n \n \nCommon shares\n \n \n \n651,697\n \n \n \n50.00\n \n \nMarch 31, 2026\n \nMay 26, 2026\n\n2\n7\n. Sales revenues\n\n(1) Summary by business segments and products\n\nThe table below shows Toyota’s sales revenues from external customers by business and by product category.\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nSales of products\n\n  \n\n  \n\n  \n\nAutomotive\n\n  \n\n  \n\n  \n\nVehicles\n\n  \n \n35,249,865\n \n  \n \n36,892,232\n \n  \n \n38,847,899\n \n\nParts and components for production\n\n  \n \n1,596,111\n \n  \n \n1,606,173\n \n  \n \n1,509,449\n \n\nParts and components for after service\n\n  \n \n3,166,586\n \n  \n \n3,423,389\n \n  \n \n3,608,666\n \n\nOther\n\n  \n \n1,068,169\n \n  \n \n1,074,505\n \n  \n \n1,235,909\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal automotive\n\n  \n \n41,080,731\n \n  \n \n42,996,299\n \n  \n \n45,201,924\n \n\nAll other\n\n  \n \n567,399\n \n  \n \n602,578\n \n  \n \n664,026\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal sales of products\n\n \n\n \n\n41,648,130\n\n \n\n \n\n \n\n43,598,877\n\n \n\n \n\n \n\n45,865,949\n\n \n\nFinancial services\n\n \n\n \n\n3,447,195\n\n \n\n \n\n \n\n4,437,827\n\n \n\n \n\n \n\n4,819,003\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal sales revenues\n\n  \n \n45,095,325\n \n  \n \n48,036,704\n \n  \n \n50,684,952\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe majority of sales of products are recognized as revenue from contracts with customers under IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”), and receivables related to such revenue are recognized as “Trade accounts and other receivables”.\n\nThe breakdown of income from leases included in financial service revenues is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nFinance leases\n\n  \n\n  \n\n  \n\nFinancial income related to net lease investment\n\n  \n \n208,257\n \n  \n \n258,835\n \n  \n \n288,732\n \n\nOperating leases\n\n  \n \n1,207,719\n \n  \n \n1,350,051\n \n  \n \n1,518,824\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n 1,415,975\n \n  \n \n 1,608,886\n \n  \n \n 1,807,556\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-7\n8\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nFinancial service revenues other than income from leases mainly consist of interest income recognized using the effective interest method. The amount of such interest income is not significant.\n\nFor the years ended March 31, 2024, 2025 and 2026, ¥187,035 million\n,\n ¥207,154 million\n\n and ¥216,456 million\n\nof financial service revenues were accounted for under IFRS 15.\n\n(2) Contract liabilities\n\nContract liabilities consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nApril 1, 2024\n\n \n  \n\nMarch 31,\n\n \n\n \n  \n\n2025\n\n \n  \n\n2026\n\n \n\nContract liabilities\n\n  \n \n   1,392,390\n \n  \n \n   1,417,919\n \n  \n \n1,664,633\n \n\nContract liabilities are primarily related to advances received from customers. Contract liabilities are included in “Other current liabilities” and “Other\nnon-current\nliabilities” in the consolidated statement of financial position. For the years ended March 31, 2025 and 2026, the amounts transferred from contract liabilities at the beginning of the fiscal year to sales revenue were ¥\n748,193\n million and ¥\n729,698\nmillion, respectively.\n\n(3) Performance obligations\n\nThe aggregate amounts of transaction prices allocated to unsatisfied performance obligations related to contracts that have original expected durations in excess of one year were ¥1,156,410 \n\nmillion and ¥1,350,018 million\n\nas of March 31, 2025 and 2026, respectively. The main\ntypes\n of unsatisfied performance obligations are insurance revenues and maintenance revenues.\n\nFor insurance revenues, Toyota receives payment\ns as\nagreed in the contract at the inception of the contract, and reven\nue is recognized over the term of the contract, which ranges from\n\nthree\n\nto\n\n120\n\nmonths. As of March 31, 2025, the unsatisfied performance obligations related to insurance revenues were ¥\n\n463,707\n\n million, and Toyota expects to recognize as revenue ¥\n\n135,282\n\n million in fiscal 2026, and ¥\n\n328,425\n\n million thereafter.\n\n \n\nAs of March 31, 2026, the unsatisfied performance obligations related to insurance revenues were ¥\n\n542,409\n\nmillion, and Toyota expects to recognize as revenue ¥\n\n156,443\n\nmillion in fiscal 2027, and ¥\n\n385,966\n\nmillion thereafter.\n\nFor maintenance revenues, Toyota receives payments as agreed in the contract at the inception of the contract, and revenue is re\ncognized over the term of the contract, which ranges from 18 to 84 months.\n\nUnsatisfied performance obligations related to sales of products for contracts that have an original expected duration of one year or less have been excluded from this disclosure.\n\n \n\nF-7\n\n9\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n2\n8\n. Research and development cost\n\nResearch and development costs consist of the following:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n \n\n2026\n\n \n\nResearch and development expenditures incurred during the year\n\n  \n \n1,202,373\n \n \n \n1,326,496\n \n \n \n1,522,881\n \n\nAmount capitalized\n\n  \n \n(124,788\n)\n \n \n(111,546\n)\n \n \n(106,751\n) \n\nAmortization of capitalized development costs\n\n  \n \n160,686\n \n \n \n162,068\n \n \n \n151,780\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n  \n \n  1,238,271\n \n \n \n  1,377,018\n \n \n \n  1,567,910\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n2\n9\n. Other finance income and costs\n\nOther finance income and costs consist of the following:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther finance income\n\n  \n\n \n\n \n\nInterest income\n\n  \n\n \n\n \n\nFinancial assets measured at amortized cost\n\n  \n \n289,035\n \n \n \n256,034\n \n \n \n203,976\n \n\nFinancial assets measured at fair value through other comprehensive income\n\n  \n \n165,653\n \n \n \n108,594\n \n \n \n107,543\n \n\nDividend income\n\n  \n\n \n\n \n\nFinancial assets measured at fair value through other comprehensive income\n\n  \n \n127,178\n \n \n \n120,435\n \n \n \n126,085\n \n\nOther\n\n  \n \n165,370\n \n \n \n71,637\n \n \n \n156,639\n \n\nTotal\n\n  \n \n   747,236\n \n \n \n   556,700\n \n \n \n   594,243\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOther finance costs\n\n  \n\n \n\n \n\nInterest expense\n\n  \n\n \n\n \n\nFinancial liabilities measured at amortized cost\n\n  \n \n(64,733\n)\n \n \n(84,106\n)\n \n \n(60,293\n) \n\nOther\n\n  \n \n(38,975\n)\n \n \n(106,605\n)\n \n \n(26,453\n)\n\nTotal\n\n  \n \n(103,709\n)\n \n \n(190,711\n)\n \n \n(86,746\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n“Other finance income—Other” primarily includes profit on sales of securities.\n\n“Other finance costs—Other” primarily includes losses on sales of securities.\n\n \n\nF-\n80\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n30\n. Earnings per share\n\nReconciliation of the difference between basic and diluted earnings per share attributable to Toyota Motor Corporation are as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n \n\nThousands\n\nof shares\n\n \n \n\nYen\n\n \n\n \n  \n\nNet income\n\nattributable to Toyota\nMotor Corporation\n\n \n \n\nWeighted-average\n\ncommon shares\n\n \n \n\nEarnings per share\n\nattributable to Toyota\nMotor Corporation\n\n \n\n \n  \n \n \n \n \n \n \n \n \n\nFor the year ended March 31, 2024\n\n  \n \n          \n \n \n \n          \n \n \n \n          \n \n\nNet income attributable to Toyota Motor Corporation\n\n  \n \n4,944,933\n \n \n\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBasic and Diluted earnings per share attributable to Toyota Motor Corporation\n\n  \n \n4,944,933\n \n \n \n13,512,848\n \n \n \n365.94\n \n\n 3,848,098\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFor the year ended March 31, 202\n5\n\n  \n\n \n\n \n\nNet income attributable to Toyota Motor Corporation\n\n  \n \n4,765,086\n \n \n\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBasic and Diluted earnings per share attributable to Toyota Motor Corporation\n\n  \n \n4,765,086\n \n \n \n13,252,456\n \n \n \n359.56\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFor the year ended March 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income attributable to Toyota Motor Corporation\n\n  \n \n3,848,098\n \n \n \n \n \n \n \n \n \n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic and Diluted earnings per share attributable to Toyota Motor Corporation\n\n  \n \n\n 3,848,098\n\n \n \n \n13,033,274\n \n \n \n  295.25\n \n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe following table shows Toyota Motor Corporation shareholders’ equity per share. Shareholders’ equity per share is calculated by dividing Toyota Motor Corporation shareholders’ equity in the consolidated statement of financial position by the number of common shares issued and outstanding at the end of the year (excluding treasury stock).\n\n \n\n \n  \n\nYen in millions\n\n \n  \n\nThousands\n\nof shares\n\n \n  \n\nYen\n\n \n\n \n  \n\nToyota Motor\n\nCorporation\n\nshareholders’ equity\n\n \n  \n\nCommon shares issued\n\nand outstanding at the\n\nend of the year\n\n(excluding treasury\n\nstock)\n\n \n  \n\nToyota Motor\n\nCorporation\n\nshareholders’ equity\n\nper share\n\n \n\nAs of March 31, 2025\n\n  \n \n35,924,826\n \n  \n \n13,048,930\n \n  \n \n2,753.09\n \n\nAs of March 31, 2026\n\n  \n \n39,918,854\n \n  \n \n13,033,384\n \n  \n \n3,062.82\n \n\n“Diluted earnings per share attributable to Toyota Motor Corporation” are the same as “Basic earnings per share attributable to Toyota Motor Corporation” for the years ended March 31, 2024, 2025 and 2026.\n\nFor the year ended March 31, 2026, in calculating basic and diluted earnings per share attributable to Toyota Motor Corporation, shares of Toyota Motor Corporation held by the stock grant ESOP trust have been excluded from the weighted-average common shares.\n\n \n\nF-\n81\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n31. Stock-based compensation\n\n(1) Restricted stock plan\n\n \n\n \n\n(i)\n\nOverview of the system\n\nTo encourage initiatives that enhance corporate value over the medium to long term, and to foster a stronger sense of responsibility in each director as a manager while promoting management aligned with shareholders’ interests, TMC has adopted a restricted share-based compensation plan. TMC has established an annual stock-based compensation limit of up to ¥4 billion for its members of the Board of Directors (excluding outside members of the Board of Directors and those who are Audit & Supervisory Committee members), and the total number of restricted shares that may be allocated is limited to 4 million shares per year.\n\nThis is a plan in which, in order to grant the restricted shares, TMC provides monetary claims as compensation to the recipients, the recipients then contribute the full amount of those claims as payment in kind, and TMC issues or transfers common shares to the recipients. TMC enters into a restricted share allocation agreement (the “Allocation Agreement”) with each recipient. Under the Allocation Agreement, the recipient’s allocated common shares are subject to transfer restrictions (prohibiting transfer, creation of security interests, and other dispositions) for a period pre-determined by TMC’s Board of Directors to be between three and fifty years from the allocation date (the “Restriction Period”). The transfer restrictions are lifted upon expiration of the Restriction Period; however, they are also lifted if the director leaves office due to expiration of term, death, or other justifiable reasons. In addition, if the director engages in conduct that violates laws or meets other conditions specified by TMC’s Board of Directors during the Restriction Period, TMC may acquire all allocated shares without compensation.\n\n \n\n \n\n(ii)\n\nNumber of shares granted during the period and their fair value\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n  \n\n2026\n\n \n\nGrant date\n\n  \n\n \n\nJune 30, 2023\n\n \n\n  \n\n \n\nJune 28, 2024\n\n \n\n  \n\n \n\nJune 30, 2025\n\n \n\nNumber of shares granted (shares)\n\n  \n\n \n\n475,600\n\n \n\n  \n\n \n\n617,500\n\n \n\n  \n\n \n\n689,400\n\n \n\nFair value per share on the grant date (Yen)\n\n  \n\n \n\n1,916.5\n\n \n\n  \n\n \n\n3,599\n\n \n\n  \n\n \n\n2,706\n\n \n\n \n\n(Note 1)\n\n  \n\nThe fair value on the grant date is calculated based on the market price of TMC’s shares.\n\n(Note 2)\n\n  \n\nExpected dividends are not incorporated into the measurement of fair value.\n\n(2) Restricted stock unit plan\n\n \n\n \n\n(i)\n\nOverview of the system\n\nIf a relevant director (“Relevant Director”) or any other covered person who is eligible to receive an allocation of restricted shares is a non-resident of Japan at the time of allocation, TMC may, for the purpose of complying with laws and avoiding tax disadvantages in the person’s country of residence, apply restricted stock units (RSUs) in place of the restricted shares described above. Except for (i) delivering common shares upon the expiration of the period equivalent to the transfer restriction period and (ii) paying cash to the heirs of the Relevant Director or other covered person in the event of their death instead of delivering common shares, the terms and conditions will be the same as those of our restricted share awards. TMC’s restricted share awards and restricted stock units will be administered together within the overall stock-based compensation pool.\n\n \n\nF-82\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nIn addition, stock-based awards to Relevant Directors or other covered persons who are retiring may be granted without transfer restrictions. TMC may also pay retiring Relevant Directors or other covered persons, or Relevant Directors or other covered persons who are non-residents of Japan, in cash.\n\n \n\n \n\n(ii)\n\nNumber of shares granted during the period and fair value\n\nThe per-share fair value of this plan on the grant date was ¥3,599 for the year ended March 31, 2025 and ¥2,706 for the year ended March 31, 2026. With respect to the number of shares, TMC will deliver the predetermined number of its common shares after the rights calculation period ends.\n\n \n\n \n\n(Note 1)\n\nThe fair value on the grant date is calculated based on the market price of TMC’s shares.\n\n \n\n \n\n(Note 2)\n\nExpected dividends are not incorporated into the measurement of fair value.\n\n(3) ESOP trust\n\n \n\n \n\n(i)\n\nOverview of the system\n\nAmid a once-in-a-century transformation in the automotive industry, TMC is undertaking a transformation into a mobility company. TMC expects senior leaders who lead on-site execution to drive future-facing initiatives with the mission of “mass-producing happiness”. To accelerate these efforts and contribute to medium- to long-term increases in corporate value by working together with management, TMC has introduced a share-based compensation plan (the “Plan”) starting with the year ended March 31, 2026, for certain executives who meet specified requirements (hereinafter, the “Eligible Employees”).\n\nThe Plan uses an equity-settled stock grant ESOP (Employee Stock Ownership Plan) trust. Under the share delivery rules established in advance, Eligible Employees will, in principle after retirement, receive deliveries and payments consisting of TMC shares, cash equivalent to the proceeds from disposing of TMC shares, and dividends from TMC shares.\n\n \n\n \n\n(ii)\n\nNumber of points granted during the period and the fair value per point\n\nThe fair value of TMC’s shares granted during the period was calculated based on the following assumptions.\n\n \n\n \n\n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n  2024  \n\n \n\n  \n\n  2025  \n\n \n\n  \n\n  2026  \n\n \n\nNumber of points granted during the period\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n220,100\n\n \n\nFair value per share on the grant date (Yen) (Note 1)\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n2,940\n\n \n\nVesting conditions\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n(Note 2\n\n) \n\n \n\n(Note 1)\n\n  \n\nWith respect to the granting of points, their fair value is measured based on observable market prices. Expected dividends are not incorporated into the fair value measurement.\n\n(Note 2)\n\n  \n\nAs a rule, continuous employment through the vesting date is a vesting condition.\n\n(4) Expenses related to stock-based compensation\n\nExpenses related to stock-based compensation amounted to ¥971 million in the year ended March 31, 2024, ¥2,833 million in the year ended March 31, 2025 and ¥2,578 million in the year ended March 31, 2026, and are included in “Selling, General and Administrative Expenses” on the consolidated statement of income.\n\n \n\nF-83\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n(5) Liabilities arising from stock-based compensation\n\nLiabilities arising from stock-based compensation amounted to ¥142 million in the year ended March 31, 2025 and ¥195 million in the year ended March 31, 2026, and are included in “Accrued Expenses” in the consolidated statement of financial position.\n\n3\n\n2. Contractual commitments and contingent liabilities\n\n(1) Contractual commitments\n\nContractual commitments relating to\nthe\npurchase of property, plant and equipment, other assets, and services\n\nwere\n \n\n¥\n3,807,743\n million and ¥\n2,570,912\n million as of March 31, 2025 and 2026.\n\nIn the normal course of business, Toyota enters into long-term arrangements with suppliers for purchases of certain raw materials, components and services. These arrangements may contain fixed or minimum quantity purchase requirements. If the purchase quantity does not meet the fixed or minimum quantity purchase requirements, Toyota may be obligated to compensate the supplier for the shortfall in the amount determined by the contract. Toyota enters into such arrangements to facilitate an adequate supply of these materials and services.\n\n(2) Guarantees\n\nToyota enters into contracts with Toyota dealers to guarantee customers’ payments of their installment payables that arise from installment contracts between customers and Toyota dealers, when requested by Toyota dealers. Guarantee periods are set to match the maturities of installment payments, and as of March 31, 2026, range from\n\n1 month to 8 years; however, they are generally shorter than the useful lives of products sold. Toyota is required to\n\nfulfill\n\nits guarantee primarily when customers are unable to make the required payment.\n\nThe maximum potential amounts of future payments are ¥\n\n2,314,927\n\n million\n\nand ¥\n\n1,553,327\n\nmillion\n\nas of March 31, 2025 and 2026\n\n,\n\n \n\nrespectively. \n\nLiabilities for guarantees totaling ¥\n\n8,917\n\n million and ¥\n\n5,390\n\n million have been provided as of March 31, 2025 and 2026. Under these guarantee contracts, Toyota is entitled to recover\n\nthe\n\n amount\n\ns\n\npaid by the customers whose original obligations Toyota has guaranteed.\n\n(3) Market treatment such as recalls, damages and lawsuits\n\nToyota and other automakers have been named in various class actions relating to Takata airbag issues. Cases against Toyota in Brazil and Argentina are currently being litigated.\n\nToyota is named as a defendant in an economic loss class action lawsuit in Australia in which damages are claimed on the basis that diesel particulate filters in certain vehicle models are defective. Toyota received unfavorable judgments at first instance on April 7, 2022, on appeal on March 27, 2023, and by the High Court on November 6, 2024. The judgments included a finding that there was a perceived reduction in vehicle value of certain vehicle models. The High Court ordered that the case be remitted to the court of first instance for a\nre-assessment\nof reduction in vehicle value damages. Other claims of economic loss in this class action lawsuit continue to be litigated at the court of first instance. In estimating the provision Toyota should record in the consolidated financial statements as a result of the aforementioned judgments, Toyota has considered various factors including the legal and factual circumstances of the case, the contents of the judgments of the court of first instance, the Federal Court of Australia, and the High Court of Australia, and the advice of legal counsel. The currently estimated probable outflow of resources related to the class action is immaterial to Toyota’s consolidated financial position, results of operations and cash flows. At this stage, however, the final outcome and the ultimate financial liability for Toyota relating to this matter cannot be reasonably estimated.\n\n \n\nF-\n84\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nIn April 2020, Toyota reported possible anti-bribery violations related to a Thai subsidiary to the SEC and the Department of Justice (“DOJ”) and has cooperated with these investigations. In June 2025, the DOJ and the SEC informed Toyota that each agency has closed its investigation into the matter.\n\nToyota also has various other pending legal actions and claims, including personal injury and wrongful death lawsuits and claims in the United States, as well as intellectual property litigation, and is subject to government investigations from time to time.\n\nBeyond the amounts accrued with respect to all aforementioned matters, Toyota is unable to estimate a range of reasonably possible loss, if any, for the pending legal matters because (i) many of the proceedings are in the discovery stage, (ii) significant factual issues need to be resolved, (iii) the legal theories or nature of the claims is unclear, (iv) the outcome of future motions or appeals is unknown and/or (v) the outcomes of other matters of these types vary widely and do not appear sufficiently similar to offer meaningful guidance. Therefore, for all of the aforementioned matters, for which Toyota is in discussions to resolve, any losses that are beyond the amounts accrued could have an adverse effect on Toyota’s financial position, results of operations or cash flows.\n\nTMC has a concentration of employees working under collective bargaining agreements, and a substantial portion of these employees are covered by agreements that will expire on\n\n August 31, 2027\n.\n\n3\n3\n. Details of company organization\n\n(1) Major subsidiaries\n\nToyota primarily conducts business in the automotive industry. Toyota also conducts business in finance and other industries.\n\nToyota’s major subsidiaries are as follows:\n\nAutomobiles are mainly manufactured by TMC, Hino Motors Ltd. and Daihatsu Motor Co., Ltd., but some of them are outsourced in Japan. Toyota Motor Manufacturing Kentucky, Inc. and others manufacture overseas.\n\nAuto parts are manufactured by TMC and others. These products are sold through dealers such as TOYOTA Mobility Tokyo Inc. in Japan, and through dealers such as Toyota Motor Sales, U.S.A., Inc. overseas.\n\nIn the financing business, Toyota Finance Corporation and others provide sales finance services in Japan and Toyota Motor Credit Corporation and others overseas.\n\nOther business consists of information technology-related businesses and other businesses.\n\n(2) Structured entities\n\n \n\n \n(i)\n\nConsolidated structured entities\n\nToyota periodically securitizes receivables related to financial services and vehicles on leases for liquidity and funding purposes and transfers them to special purpose entities. Toyota is deemed to have the power to direct the activities of these entities that most significantly impact the entities’ economic performances. Therefore, Toyota has consolidated them.\n\n \n\nF-\n85\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe creditors of these entities do not have recourse to Toyota’s general credit with the exception of debts guaranteed by Toyota. Risks to which Toyota is exposed including credit, interest rate, and/or prepayment risks are not incremental compared with the situation before Toyota enters into securitization transactions.\n\nToyota has equity in investment trusts and other special purpose entities. With respect to some of the investment trusts, Toyota has both the obligation to absorb losses of or the right to receive benefits from the investment trusts that could potentially be significant to the investment trusts and the power to direct the activities of the investment trusts that most significantly impact the investment trusts’ economic performance through the asset manager. Therefore, Toyota has consolidated them.\n\nRelated to securitization transactions, ¥7,280,835 million\n\nand ¥8,267,069 million receivables\n\n related to financial services, ¥7,486,241 million and ¥8,664,183 million secured debt were included in Toyota’s consolidated financial statements as of March 31, 2025 and 2026, respectively.\n\n \n\n \n(ii)\n\nUnconsolidated structured entities\n\nWith regards to other investment trusts and other special purpose entities, those that are structured based on contractual arrangements and are designed so that voting or similar rights are not the dominant factor in deciding who controls the entities are classified as structured entities. However, Toyota lacks the power to direct the activities of such structured entities, and therefore, Toyota does not consolidate the investment trusts and the special purpose entities. Investments in the investment trusts and the special purpose entities that qualify as structured entities are held at fair value and are included in “Other financial assets” in the consolidated statement of financial position. The maximum exposure to loss is limited to the carrying value of its investment. The carrying value of the trusts totaled ¥167,038 million and ¥113,204 million as of March 31, 2025 and 2026, respectively. The carrying value of the special purpose entities totaled ¥2,517,967 million and ¥1,049,995 million as of March 31, 2025 and 2026, respectively. Toyota does not provide support that is not contractually required to the investments.\n\n3\n4\n. Related party transactions\n\n(1) Transactions with associates and joint ventures\n\nThe balances and turnover of receivables and payables with associates and joint ventures accounted for under the equity method are as follows:\n\n \n\n \n\n  \n\nYen in millions\n\n \n\n \n\n  \n\nMarch 31,\n\n \n\n \n\n  \n\n2025\n\n \n\n  \n\n \n2026\n\n \n\nTrade accounts and other receivables\n\n  \n\n  \n\nAssociates\n\n  \n \n466,420\n \n  \n \n599,558\n \n\nJoint ventures\n\n  \n \n79,251\n \n  \n \n106,776\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n545,671\n \n  \n \n706,334\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTrade accounts and other payables\n\n  \n\n  \n\nAssociates\n\n  \n \n1,576,129\n \n  \n \n1,844,886\n \n\nJoint ventures\n\n  \n \n8,573\n \n  \n \n20,180\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n 1,584,702\n \n  \n \n  1,865,066\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF-\n8\n6\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n\n  \n\n  2024  \n\n \n\n  \n\n  2025  \n\n \n\n  \n\n  2026  \n\n \n\nSales revenues\n\n  \n\n  \n\n  \n\nAssociates\n\n  \n \n3,137,067\n \n  \n \n3,420,576\n \n  \n \n2,933,464\n \n\nJoint ventures\n\n  \n \n662,202\n \n  \n \n622,056\n \n  \n \n1,161,865\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n3,799,268\n \n  \n \n4,042,632\n \n  \n \n4,095,328\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCost of products sold (purchases)\n\n  \n\n  \n\n  \n\nAssociates\n\n  \n \n12,426,770\n \n  \n \n12,889,776\n \n  \n \n14,090,055\n \n\nJoint ventures\n\n  \n \n75,042\n \n  \n \n82,963\n \n  \n \n149,488\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n  12,501,811\n \n  \n \n 12,972,740\n \n  \n \n 14,239,543\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nDividends from associates and joint ventures accounted for under the equity method are ¥502,793 million and ¥304,211 million for the years ended March 31, 2025 and 2026, respectively. In addition, Toyota does not engage in transactions with associates and joint ventures outside of the normal course of business.\n\n(2)\n\nCompensation of key management personnel\n\nThe compensation of key management personnel of TMC is as follows:\n\n \n\n \n  \n\nYen in millions\n\n \n\n \n  \n\nFor the years ended March 31,\n\n \n\n \n  \n\n  2024  \n\n \n  \n\n  2025  \n\n \n  \n\n  2026  \n\n \n\n \n  \n \n \n  \n \n \n  \n \n \n\nBase compensation\n\n  \n \n1,107\n \n  \n \n1,425\n \n  \n \n1,206\n \n\nBonus\n\n  \n \n1,054\n \n  \n \n1,607\n \n  \n \n1,206\n \n\nShare compensation\n\n  \n \n1,862\n \n  \n \n1,940\n \n  \n \n1,993\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n      4,024\n \n  \n \n      4,972\n \n  \n \n      4,405\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n3\n5\n. Supplemental cash flow information\n\n“Other, net” in cash flows from investing activities includes a net increase in time deposits of ¥\n\n666,401 \n\nmillion and a net decrease in time deposits of\n\n¥\n1,292,045\n\nmillion for the year ended March 31, 2025 and 2026, respectively.\n\n36. Significant subsequent events\n\nConsolidation of shares and Delisting of Toyota Industries -\n\nAs part of the transactions implemented to take Toyota Industries Corporation (“Toyota Industries”) private by Toyota Asset Preparatory Company, Ltd., which was established by Toyota Fudosan Co., Ltd. (“Toyota Fudosan”), an equity-method affiliated company\n\nof TMC\n\n, a share consolidation of the common stock of Toyota Industries (the “Toyota Industries Shares”) at a ratio of\n\n74,100,604\nshares to one share\n(the “Share Consolidation”) was approved at the extraordinary general meeting of shareholders of Toyota Industries held on May 12, 2026. As a result, the Toyota Industries Shares were delisted on June 1, 2026, and the Share Consolidation became effective on June 3, 2026. Following the effectiveness of the Share Consolidation, TMC holds one share of Toyota Industries.\n\n \n\nF-\n8\n7\n\nTOYOTA MOTOR CORPORATION\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)\n\n \n\nThe business integration of MFTBC and Hino -\n\nOn June 10, 2025, TMC, Daimler Truck AG, MFTBC and Hino concluded a definitive agreement for the business integration of MFTBC and Hino.\n\nHino is no longer a consolidated subsidiary of TMC as of the effective date of this business integration (April 1, 2026). Immediately prior to the business integration that became effective during the year ending March 31, 2027, Hino’s Hamura Plant became a consolidated subsidiary of TMC as Toyota Motor Hamura, Inc.\n\nManagement is currently evaluating the impact of this business integration on Toyota’s consolidated financial statements.\n\nDiscontinuation of Development of LF-ZC -\n\nTMC\n \nhas decided in late May 2026, in light of the surrounding environment, to discontinue the development of LF-ZC, which had been planned for production in Japan and for sale in North America, Europe, and Japan. The know-how and technologies acquired through the development of this vehicle will be actively utilized and applied to other vehicle development projects. There will be no changes to the development of other key BEVs.\n\nWith respect to the impact on Toyota’s financial position and results of operations for the fiscal year ending March 31, 2027, and subsequent periods, it is not possible at this time to reasonably estimate such impact. While Toyota will utilize the results of development to date to the maximum extent possible, the amount, including potential costs such as compensation to business partners, will be determined through ongoing investigations and discussions with business partners.\n\n \n\nF-88\n\n##### Table of Contents"}