| Thu 8 Mar 2001, 0:00 | | Toyota - Results |
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TOYOTA SOUTH AFRICA LIMITED
(Registration number 1946/020429/06)
ANNOUNCEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS 2000
We wish to report on the audited results of Toyota South Africa Limited Group
for the financial year ended 31 December 2000.
condensed group Income Statement (R000)
%
2000 1999* Change
Turnover 7 718 386 6 037 751 27,8
Cost of sales 7 272 636 5 554 221 (30,9)
Gross profit 445 750 483 530 (7,8)
Distribution, administrative
and other expenses 468 567 440 705 (6,3)
Operating (loss)/income (22 817) 42 825 (153,3)
Proceeds from the sale of
demutualisation shares - 52 195 -
Investment income and growth 86 057 82 083 4,8
Finance costs (129 784) (120 464) (7,7)
Share of results
of associates (5 170) 3 725 (238,8)
(Loss)/Income before taxation (71 714) 60 364 (218,8)
Taxation - credit (23 190) (20 866) 11,1
(Loss)/Income - ordinary
activities (48 524) 81 230 (159,7)
Earnings per share (cents) (119,3) 199,7 (159,7)
Headline earnings
per share (cents) (111,2) 67,6 (264,5)
Dividend per share (cents) 30,0 50,0
Dividend cover (times) n/a 4,0
CONDENSED STATEMENT OF CHANGES IN EQUITY
Revaluation
Share & other Retained
capital reserves earnings
Balance at 1999-12-31* 678 480 096 1 938 754
Associated companies' reserves (1 994)
Net gains not recognised in the
income statement:
- total gains 47 583
- deferred tax 247
Transfer to/(from) 51 878 (51 878)
Loss for the year (48 524)
Dividends (12 200)
Balance at 2000-12-31 678 577 810 1 826 152
CONDENSED CASH FLOW STATEMENT
2000 1999*
Net cash (used)/provided by:
- operating activities (214 775) 424 541
- investing activities (153 831) 386
- financing activities (182 274) (114 016)
(Decrease)/Increase in cash
and cash equivalents (550 880) 310 911
CONDENSED GROUP BALANCE SHEET (R000)
2000 1999*
ASSETS
Non-current assets
Property, plant and equipment 985 046 1 043 090
Other non-current assets 704 097 703 865
Deferred tax 24 958 -
Current assets 2 011 243 1 921 769
Total assets 3 725 344 3 668 724
EQUITY AND LIABILITIES
Capital and reserves 2 404 640 2 419 528
Non-current liabilities
Interest bearing borrowings 388 746 504 069
Deferred tax - 30 369
Current liabilities 931 958 714 758
Total equity and liabilities 3 725 344 3 668 724
Total debt to total assets 35,5% 34,1%
CAPITAL EXPENDITURE (R000)
Incurred during the year 198 083 274 422
Commitments:
Contracted 44 114 66 806
Approved, not yet contracted 894 697 287 285
*Comparatives revised to comply with new Statements of GAAP.
NOTES TO THE CONDENSED GROUP
FINANCIAL STATEMENTS
Accounting Policies
These condensed Group financial statements are prepared in accordance with
Statements of Generally Accepted Accounting Practice and the accounting
policies are consistent with that of the previous year.
Operating (loss)/income
There were no unusual items raised during the year.
Earnings per share
No dilution occurred during the year.
Borrowings (non-current and current)
Opening balance 645 038
Repayments (182 274)
Amounts raised/interest capitalised 192 666
Closing balance 655 430
Long-term borrowings 388 746
Short-term borrowings 266 684
Contingencies and post-balance sheet events
No new contingencies to report on.
The previous directors' report made mention of a notice issued by the State of
their intention to disallow expenditure incurred by the Group during 1989 to
1991. Revised assessments have been received and are being contested. The Group
is advised that the assessments are without foundation in law or substance.
Dividends
The Board declared a dividend of 30 cents per share during 2000 (1999: 50
cents). The dividend absorbed R12,200 million (1999: R20,334 million). The
dividend was payable to shareholders registered in the records of the Company
at close of business on 19 January 2001 and paid on or about 23 February 2001.
GENERAL COMMENT
In 2000 the sales performance of the South African motor industry improved
compared to the previous year. NAAMSA reported local new vehicle retail sales
increased by 15,3% from 295 775 units in 1999 to 341 082 in 2000. The Toyota
South Africa Group's local retail sales amounted to 79 554. In addition the
Group exported 1 949 vehicles to other African countries. Total retail sales
plus exports thus amounted to 81 503 units compared to 74 431 units in 1999, an
increase of 9,5%. The Group's local market share declined from 24,5% in 1999 to
23,3% in 2000. Excluding the sales figures of the two new NAAMSA reporters,
Renault and Volvo, the Group's market share would have been 24,3%.
FINANCIAL RESULTS
Operating income decreased from R42,825 million in 1999 to a loss of R22,817
million in 2000. The decline was largely due to a further significant 22,15%
increase in cost of sales due to the deterioration in the average Rand to Yen
exchange rate in 2000 as compared to 1999; the deterioration in the previous
year was 29,24%.
Net income from ordinary activities decreased by R129,754 million from R81,230
million in 1999 to a loss of R48,524 million in 2000. It needs to be pointed
out that the amount of R52,195 million being proceeds from the sale of
demutualisation shares in the previous year was non-recurring. The consolidated
figures also include an amount of R10,427 million loss being the Group's share
of the losses of Toyota Financial Services which is still proceeding through
its anticipated initial growth phase.
Cash outflow amounted to R550,880 million in 2000. The increased sales volumes
and cost escalations of purchases, mainly due to substantial deterioration in
exchange rate, resulted in stockholding and debtors values being higher,
off-set by an increase in creditors. Cash outflow as a result of debt reduction
amounted to R182,274 million. An amount of R153,831 million was utilised for
investment activities.
PROSPECTS
The South African motor industry started 2001 with the best January retail
sales since 1984. It is expected that the new vehicle retail market will
improve by between 5% and 8% during 2001.
Whilst inflation is currently under control, the continued weakness of the Rand
against the Yen will continue to exert cost pressure, and it is unlikely that
profit margins will recover in the short term. Management efforts aimed at
improving productivity and containing costs will remain a high priority.
The Group, in conjunction with Toyota Motor Corporation of Japan, continues to
explore ways and means of becoming a much more integrated player in the
international Toyota supply network. Every effort is made to improve quality
and to ensure a stable production situation.
The annual report will contain more detailed commentary regarding expectations
for the new financial year.
Signed on behalf of the Board
A J J Wessels
Executive Chairman
E le R Bradley Sandton
Vice-Chairman 8 March 2001
Transfer Secretaries:
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg 2001
Executive Directors: AJJ Wessels (Executive Chairman), H J Coetzee (Managing
Director - Manufacturing (Resigned: 31 December 2000)), HD Gazendam (Group
Human Resources Director), S Nomura* (Co-ordinating Director), PR Robinson
(Group Financial Director),
K Tanabe* (Senior Co-ordinating Director), Dr JJ van Zyl (Managing Director -
Marketing).
Non-executive Directors: Mrs E le R Bradley (Vice-Chairman), Dr ML Benade, RS
Broadley, S Iwatsuki* (Alternate: I Ogiso* (Resigned: 15 January 2001)),
(Alternate: H Higuchi* (Appointed: 22 January 2001)), SA Patterson, K
Shiramizu* (Alternate: E Ohmura*).
Management Committee: AJJ Wessels (Chairman), HJ Coetzee (Resigned: 31 December
2000), HD Gazendam, HG Pretorius (Appointed: 1 August 2000), PR Robinson, K
Tanabe*, Dr JJ Van Zyl *Japanese
