At the 2024 General Shareholders’ Meeting, Toyota Motor Corporation highlighted its commitment to redistributing profits and fostering mutual growth with its stakeholders. Executive Vice President Yoichi Miyazaki addressed shareholders, emphasizing the company’s robust business foundations and the role of mutual support in its sustained success.
A month before the meeting, Toyota announced an impressive operating income of 5.3529 trillion yen for the fiscal year ending March 2024. This achievement, partly attributed to a weak yen, is a testament to the product- and region-centered management developed with Toyota’s stakeholders.
Shareholders inquired about the distribution of profits, to which Vice President Miyazaki responded by outlining Toyota’s efforts to strengthen its business foundations and contribute to the well-being of all involved.
Miyazaki’s Reflections on Mutual Support and Growth
“Prior to my current role, I spent many years overseeing our overseas business and working closely with suppliers, dealers, and local communities,” Miyazaki shared. “These relationships of mutual gratitude have been vital, especially during challenging times like the pandemic and natural disasters.”
He acknowledged the critical role of Toyota’s 100 million global customers and one million shareholders in the company’s sustained growth. Highlighting the economic impact, Miyazaki noted that Toyota’s consolidated staff increased by 60,000 employees, generating additional returns of approximately 300 billion yen annually.
Economic Ripple Effects and Industry Contributions
Toyota’s consolidated results for the past fiscal year included sales of 45 trillion yen, with an operating income of 5 trillion yen. Miyazaki explained that the remaining 40 trillion yen was allocated to suppliers, employees, and national and regional governments through tax payments. Additionally, these profits funded dividends for shareholders.
“The auto industry has a significant economic ripple effect, said to be 2.5 times greater than the industry itself,” Miyazaki remarked. “We believe that we have contributed to economic ripple effects totaling nearly 100 trillion yen.”
Despite Japan’s stagnant GDP, Toyota’s returns to stakeholders have tripled over the past 20 years. Miyazaki expressed his pleasure in knowing that Toyota’s growth benefits all who support the company, contributing to a more vibrant Japan.
Addressing Concerns of a “Winner-Takes-All” Attitude
In response to criticism that Toyota’s strong performance indicates a “winner-takes-all” attitude, Miyazaki and former President Akio Toyoda emphasized the company’s commitment to mutual success. Toyoda’s words from a previous shareholders’ meeting were recalled: “What would happen if this country had no winners at all? I believe that Toyota is transforming into a company capable of using its strength not for our own sake, but to benefit the people who support us and the wider world.”
Miyazaki echoed this sentiment, highlighting that Toyota’s growth is rooted in mutual support with stakeholders and plays a significant role in the broader economy and society.
Moving Forward with Shared Success
Vice President Miyazaki concluded by reiterating Toyota’s commitment to maintaining unique growth and returns. He asked shareholders to recognize the company’s contributions to the industry and society and expressed hope for their continued support.
The dialogue at this year’s General Shareholders’ Meeting underscored Toyota’s dedication to redistributing profits, fostering mutual growth, and supporting the communities in which it operates.
