Investor Update HY2021 Presentation - Toyota Australia
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Investor Update
HY2021 Presentation
Toyota Yaris Cross range
Investor Relations Agenda
Page | Topic
3 | Disclaimer
6 | The Global Toyota Group
15 | Toyota in Australia
21 | Toyota Finance Australia
35 | Investment Highlights
Toyota
Toyota C-HR
RAV4 Koba
hybrid
2020 Toyota RAV4 Hybrid
Disclaimer
Disclaimer
The information in this presentation is an overview of certain information relating to Toyota Motor Corporation and its subsidiaries (including Toyota Finance
aC
and is authorised, by TFA and TMCA. TFA is expressly not responsible for information in this presentation relating to TMCA.
This presentation is being provided solely for your information, and may not be distributed to any other person, and may not be reproduced in any form, in whole or
in part. Failure to comply with this restriction may constitute a violation of applicable securities laws. No reliance may be placed for any purposes whatsoever on the
information contained in this presentation or any other material discussed verbally or on its completeness, accuracy or fairness. No representation or warranty,
or employees or any other person as to
the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever by the Toyota Companies or any of the Toyota
any use of such information or opinions or
otherwise arising in connection therewith. The information in this presentation is subject to verification, completion and change.
This presentation is not a prospectus or offering document and does not constitute or form part of and should not be construed as, an offer to sell or issue or the
invitation or solicitation of an offer to buy or acquire securities or other financial products of any of the Toyota Companies (including TFA) in any jurisdiction or an
inducement to enter into investment activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of its distribution, shall form the basis of,
or be relied on in connection with, any contract or commitment or investment decision whatsoever. Investors and prospective investors in the securities or other
financial products of any of the Toyota Companies (including TFA) are required to make their own independent investigation and appraisal of the business and
financial condition of the Toyota Companies and the nature of the securities and other financial products. This presentation does not constitute a recommendation
regarding securities or other financial products of any of the Toyota Companies (including TFA). Any prospective purchaser of securities or other financial products of
any of the Toyota Companies (including TFA) is recommended to seek its own independent financial advice.
The distribution and use of this presentation may be restricted by law in certain jurisdictions and is not provided to any person in any jurisdiction where it is unlawful
to do so. Recipients of this presentation should inform themselves about them and observe any such restrictions. TFA does not represent that this presentation may
be lawfully distributed in compliance with any applicable registration or other requirements in any such jurisdiction where action for that purpose is required, or
under an exemption available in that jurisdiction, nor does it assume any responsibility for facilitating any such distribution. In particular, no action has been taken by
TFA or any other person which would permit distribution of this presentation in any jurisdiction where action for that purpose is required.
This presentation is intended for distribution only to financial institutions and professional investors only in circumstances where disclosure is not required under Part
licable law. The information must not,
mation in this presentation is a summary
only and is not complete. It does not amount to an express or implied recommendation or a statement of opinion (or a report or either of those things) with respect
to any investment in any of the Toyota Companies nor does it constitute financial product advice.
3
Disclaimer
No action has been made or will be taken that would permit a public offering of any securities described herein. This presentation and its contents are directed only
ithin the meaning of Article 2(e)
ifi
of Article 2(e) of the Prospectus Regulation as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 who
are (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000
communicated, falling within Article
49(2)(a) to (d ) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons in (a) through (b) are collectively referred to
Any person who acquires securities in any offer or to whom any offer of any securities is made will be deemed to have represented and agreed that it is a Relevant
Person. By receiving or accessing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market
position of the Toyota Companies and that you will conduct your own analysis and be solely responsible for forming your own opinion of the potential future
(i) a professional client or eligible counterparty, each as
or (ii) an eligible counterparty as defined in the FCA Handbook Conduct of Business Sourcebook or a
professional client as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA (such Persons in (i) or (ii) also being referred to
This presentation must not be acted or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this presentation relates
is available only to Relevant Persons and will be engaged in only with Relevant Persons.
This presentation is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities of TFA issued under its Euro Medium
Term Note Programme referred to in this presentation or otherwise, except on the basis of information in the Euro Medium Term Note Programme base prospectus
of Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited and Toyota Motor Credit Corporation dated 18 September
2020, as supplemented from time to time , together with the applicable final terms which are or will be, as applicable, available on the
website of the London Stock Exchange plc at www.londonstockexchange.com/exchange/news/market-news/marketnews-home.html. Investors should read the
Prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in Notes issued
under the Euro Medium Term Note Programme. Approval of the Prospectus by the Central Bank of Ireland should not be understood as an endorsement of Notes
issued under the Euro Medium Term Note Programme. Approval of any Prospectus supplements from time to time by the United Kingdom
Authority should not be understood as an endorsement of Notes issued under the Euro Medium Term Note Programme.
4
Disclaimer
Neither this presentation nor any copy of it, nor the information contained herein, in whole or in part, may be taken or transmitted into, or distributed, directly or
indirectly to the United States or to any U.S person (as defined under Regulation S under the U.S. Securities Act of 1933, as am
to comply with this restriction may constitute a violation of U.S. securities laws. This presentation does not constitute, and should not be construed as, an offer to sell
or the solicitation of an offer to buy securities in the United States as defined in Regulation S under the Securities Act or to any U.S. person. No securities of TFA have
been, or will be, registered under the Securities Act or the securities laws of any state of the United States.
Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical
pressions identify forward-looking
statements. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or
performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; developments of the
orward-looking statements in this
presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without l
rd parties. Although TFA believes that
these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and
other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors
could cause the actual results, performance or achievements of the Toyota Companies or industry results to differ materially from those results expressed or implied
in this presentation by such forward-looking statements.
The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change
without notice. The Toyota Companies and their agents, employees or advisers do not intend to, and expressly disclaim any duty, undertaking or obligation to, make
or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to
reflect any change in events, conditions or circumstances. By attending any presentation to which this document relates or by accessing this presentation you will be
taken to have represented, warranted and undertaken that (a) you are a Relevant Person (as defined above), and (b) you have read and agree to comply with the
contents of this notice.
This presentation includes references to credit ratings and, accordingly, this presentation should not be distributed to or accessed by any persons who are not able
to receive such information in accordance with applicable law. In particular, credit ratings are for distribution only to a pers
meaning of section 761G of the Corporations Act and is also a sophisticated investor, professional investor or other investor in respect of whom disclosure is not
required under Parts 6D.2 or 7.9 of the Corporations Act. Credit ratings provided by third-party credit rating agencies may not reflect all risks of an investment in
securities or other financial products and may be subject to revision or withdrawal at any time.
5
The Global Toyota Group
Toyota Hybrid
Electric Vehicles
Toyota Motor Corporation Vision and group structure
Toyota Global Vision
I Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving
people.
I Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectation and be rewarded with
a smile.
I We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way.
Toyota sells its vehicles in
approximately 200 countries and
regions.
AUTOMOTIVE OTHER
Design, Manufacturing,
Distribution BUSINESSES
Consumer Financing Housing
Dealer Support & Marine
Financing
Information Services &
Banking Telematics
Ancillary Products & Biotechnology &
Services Afforestation
Source: https://global.toyota/pages/global_toyota/ir/library/sec/20-F_202003_final.pdf
https://global.toyota/en/company/profile/other-toyota-businesses/
TFAL investor update FY2020 pg 7
7
Toyota Motor Corporation Toyota at a glance
Ι Operating for over 80 years and a global leader in mobility.
Ι Consolidated vehicle sales exceeded 8.9 million units in FY2020.
8,958,423
Continued expansion in vehicle manufacturing capabilities.
359,542 8,819,622
Ι (Consolidated, as of
March 31, 2020) (Consolidated, FY2020) (Consolidated, FY2020)
Ι Global manufacturing presence and extensive sales network.
Toyota Group Companies
Consolidated Vehicle Sales Net revenues
10,000 9,116 8,972 8,971 8,964 8,977 8,958
8,681 35,000
29,379.5 30,225.6 29,929.9
28,403.1 27,597.1
8,000 30,000 27,234.5
25,691.9
Thousands of units
25,000
Billions of yen
6,000
20,000
4,000 3,086 15,000 11,375.2
10,000
2,000
5,000
- 0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 HY2021 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 HY2021
Sources: https://global.toyota/pages/global_toyota/ir/financial-results/2021_2q_presentation_en.pdf
https://global.toyota/pages/global_toyota/sustainability/report/sdb/sdb20_en.pdf
TFAL investor relations presentation 2020, pg. 8
Note: Numbers displayed may not add due to rounding. 8
Toyota Motor Corporation Sustainability
Global Sustainability
Ι Toyota set six environmental challenges with the aim of going
beyond zero environmental impact and hoping to achieve a net
positive impact by 2050.
Ι emissions by 2
90% by 2050, in comparison with 2010 levels, and achieved 40%
in FY20.
Ι Globally Toyota has achieved sales target of 15 million
electrified vehicles ahead of schedule in FY20 with cumulative
sales of 15.01 million.
Ι Toyota has reduced water usage by 35% within TMC vehicle
plants in FY20 compared to FY02 by reusing wastewater used in
the painting processes.
Ι Since launching the first- generation Prius in 1997, Toyota has
built its own recovery network to collect End of life HEV batteries
for recycling and reuse. As at March 2020 a total of 171,000 End
of life batteries had been collected.
Ι Since FY13 Toyota has collected and recycled 47 tons of
magnets.
Sources: https://global.toyota/pages/global_toyota/sustainability/report/er/er20_en.pdf
Note: Numbers displayed may not add due to rounding.
9
Toyota Motor Corporation Financial Highlights
Net Revenues Operating Income Net Income
¥ ¥ ¥ 2,467.5 ¥ 2,442.8 ¥ 2,076.1
30,225.6 29,929.9 ¥ 1,882.8
¥
11,375.2 ¥ 629.3
¥ 519.9
FY2019 FY2020 HY2021 FY2019 FY2020 HY2021 FY2019 FY2020 HY2021
Total Liquid Assets (1) Capital Expenditures R&D Expenditures
¥
¥ 1,110.3
10,238.7 ¥ 1,048.8
¥ 1,465.8
¥ 9,454.4 ¥ 1,372.3
¥ 567.6
¥ 8,602.6
¥ 585.6
FY2019 FY2020 HY2021 FY2019 FY2020 HY2021 FY2019 FY2020 HY2021
(1) Cash and cash equivalents, time deposits, marketable debt securities and its investment in monetary trust funds, excluding in each case those relating to financial services ¥ in billions
Sources: TMC FY2019 Financial Results, TMC FY2020 Financial Results, TMC HY2021 Financial Results
https://global.toyota/pages/global_toyota/ir/financial-results/2019_4q_summary_en.pdf
https://global.toyota/pages/global_toyota/ir/financial-results/2020_4q_summary_en.pdf
https://global.toyota/pages/global_toyota/ir/financial-results/2021_2q_summary_en.pdf
Note: Numbers displayed may not add due to rounding. 10Toyota Financial Services Global presence
Europe/Africa Asia/Pacific Americas
▪ Germany ▪ Czech Republic ▪ Australia ▪ Vietnam ▪ United States of America (U.S.A)
▪ United Kingdom ▪ Denmark ▪ New Zealand ▪ India ▪ Puerto Rico
(U.K.) ▪ Hungary ▪ Thailand ▪ Singapore ▪ Canada
▪ Finland ▪ Spain ▪ Malaysia ▪ Japan ▪ Brazil
▪ Italy ▪ Slovakia ▪ Philippines ▪ Venezuela
▪ Norway ▪ Russia ▪ Taiwan ▪ Mexico
▪ France ▪ Kazakhstan ▪ China ▪ Argentina
▪ Sweden ▪ Portugal ▪ Korea
▪ Poland ▪ Netherlands ▪ Indonesia
▪ South Africa ▪ Austria
▪ Ireland
Source: https://www.tfsc.jp/overseas/ 11Toyota Financial Services Select entities
TMC
Toyota Motor Corporation
TFSC
Toyota Financial Services
Corporation
TFSIC TCCI TMFNL TFA
Toyota Financial Services Toyota Motor Finance Toyota Finance Australia
International Corporation Toyota Credit Canada Inc.
Netherlands B.V. Limited
TMCC
Toyota Motor Credit
Corporation
Ι
Ι TMCC, TMFNL and TFA are named issuers under the A$10,000,000,000 Debt Issuance Programme.
12Toyota Financial Services Credit Support Agreements
Ι Securities* issued by TFA (and various other TFSC subsidiaries) have the benefit
TMC of a credit support agreement with TFSC.
Ι TFSC will continue to own 100% of TFA.
Ι TFSC will cause TFA to maintain a tangible net worth of at least A$150,000 as
Credit Support long as covered securities are outstanding.
Agreement
Ι If TFA determines it will be unable to meet its payment obligations on any
covered securities, TFSC will make sufficient funds available to TFA to ensure
that all payment obligations are paid as due.
TFSC Ι Agreement cannot be terminated until (1) repayment of all outstanding covered
securities or (2) each rating agency requested by Toyota to provide a rating has
confirmed no change in rating of all such securities.
Ι TFSC in turn has the benefit of a credit support agreement with TMC.
Credit Support
Agreement Ι Same key features as TFSC/TFA credit support agreement.
Ι TMC will cause TFSC to maintain a tangible net worth of at least JPY 10 million as
long as covered securities are outstanding.
TFA
Source: TFAL investor relations presentation 2020, pg.13
not include asset- 13Toyota Financial Services Credit ratings
Long Term Short Term Long Term Short Term
Toyota Motor Corporation
A+ A-1+ A1 P-1
Toyota Finance Australia Limited
A+ A-1+ A1 P-1
Outlook Stable Stable
Source: Bloomberg Credit Rating Profile as at 19 Mar 2021
TFAL Investor update 2020, pg 14 14Toyota in Australia
2020 Toyota Hilux SR5
15Toyota in Australia Value chain
Ι Sales , marketing & distribution
Ι Product planning & development
Ι Guest experience centre
ONE Ι Retail and wholesale finance & insurance
TOYOTA Ι
Ι
Fleet management
Guest experience
Toyota Dealer Network
Ι New and certified pre-owned vehicle sales
Ι Servicing & repairs
Ι Guest experience
Source: TFAL investor update FY2020, pg 16
16Toyota Motor Corporation Australia Australian market trend
Ι Australian vehicle market has shown solid long-term performance, with total new vehicle sales for CY2020 at
916,968.
Ι CY2020 had the toughest economic conditions experienced since the Global Financial Crisis, Toyota is well
positioned and maintains the largest market share.
1,400,000
1,155K 1,178K 1,189K 1,153K
1,112K 1,136K 1,113K
1,200,000 1,063K
New Vehicle Sales (units)
1,008K
1,000,000 917K
800,000
775K
747K
739K
600,000
695K
692K
640K
582K
577K
570K
566K
559K
535K
531K
400,000
516K
486K
450K
449K
378K
200,000
316K
222K
-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Passenger Commercial
Source: Actual data based on VFACTS Industry Reports to December 2020, published by Federal Chamber of Automotive Industries.
Note: Numbers displayed may not add due to rounding.
17Toyota Motor Corporation Australia Toyota’s market leadership
Ι Toyota remains the market leader in an industry demonstrating long term Market Share 2020
growth. Toyota (23.3%)
Mazda (9.3%)
23.3%
Hyundai (7.1%) 22.2%
Ι Ford (6.5%)
brand and the 16th year of vehicle sales above 200,000. Mitsubishi (6.4%)
Volkswagen (4.3%) 4.1%
Nissan (4.2%)
Ι Kia (6.1%)
3.2% 9.3%
since 2008.
3.4%
Subaru (3.4%)
6.1% 7.1%
Honda (3.2%)
4.2% 6.5%
Mercedes-Benz (4.1%) 4.3% 6.4%
Other (22.2%)
Australian Vehicle Sales
350 23.3% 25%
300
20%
Units Sold ('000)
250
Market Share
200 15%
226
225
225
222
219
215
215
214
211
150
188
10%
100
126
118
116
115
114
112
111
5%
106
104
103
103
102
102
101
100
98
97
97
94
94
92
91
90
90
50
88
87
87
86
86
81
80
78
69
43
63
65
60
17
61
- 70 0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Toyota* Mazda Hyundai Holden Ford Toyota* Market Share
Toyota includes Toyota and Lexus marques
Source: VFACTS Industry Reports to December 2020 published by Federal Chamber of Automotive Industries, and Toyota Australia press release.
https://www.pressroom.com.au/press_release_detail.asp?clientID=2&prID=45710&navSectionID=2
Note: Numbers displayed may not add due to rounding. 18Toyota Motor Corporation Australia Overview
Toyota Australia Future Direction Toyota Australia
Ι In 2020 Toyota Australia continues its transformation from an Toyota ranks in the top 5 most reputable companies in Australia for the last ten years
automotive company into a mobility company. 1 1
2 2
3 3
4 4 4 4
Ι Delving into areas such as alternative fuels or drivetrains, carshare
services, autonomous driving trials and connected vehicles, to
ultimately contribute to a zero-carbon society. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Product Innovation
Ι To achieve this future direction, Toyota are currently focused on
the following activities:
Ι Hybrid vehicles
Ι Influence of product design and development to suit the
Ι Electric vehicles
Australian market.
Ι Petrol and diesel vehicles
Ι Sourcing of fun-to-drive and innovative vehicles with Ι Automated vehicles
environmentally focused drivetrains. Ι Cooperative intelligent transport
systems
Ι Study of new innovative usership (carshare / rideshare) and
ownership solutions. Ι Fuel cell vehicles
Ι Centre of Excellence at
the former manufacturing plant in Altona, Victoria.
Ι Toyota Community Trust (TCT) distribution of funds to not-
for-profit organisations encouraging young Australians to
pursue further studies within Science, Technology,
Engineering and Mathematics (STEM).
Source: Toyota Sustainability Report and U.S. RepTrak (formerly known as Reputation Institute)
Note: Numbers displayed may not add due to rounding.
19Toyota Motor Corporation Australia Sustainability
Cumulative hybrid sales in Local Sustainability
Australia
Ι TMCA hit a record of 54,335 Toyota hybrids sales in 2020,
176,289
Total as at 31 Dec 2020
now make up more than 5% of the annual national market.
Camry Rav4
71021 33811 Ι Around CY2025, every model in the Toyota and Lexus line-up
around the world will be available as either a dedicated electrified
model or have an electrified option. TMCA are committed to bring
a suite of electrified vehicles to complement its existing hybrid
range.
Corolla Prius
32238 20249
Ι The first stage of the stage of the Hydrogen Centre at the Altona
site, an education facility, was completed in March 2020
Ι The next stage is the refuelling station and hydrogen generation
Prius C Prius V
which is currently undergoing installation and commissioning with
9757 5131 the goal to be operational in April 2021/May2021.
Ι The Next Generation Toyota Mirai, powered exclusively by
hydrogen, has been confirmed for Australia and will be released in
early 2021.
C-HR Yaris
2965 1117
Ι Lexus Australia will advance its leadership in electrification with
the first all-electric Lexus, the luxury compact UX 300e, due to be
released in November 2021.
Source: Sustainability Report 2020, VFACTS Industry Reports published by Federal Chamber of Automotive Industries & Toyota Australia press release
https://www.toyota.com.au/sustainability; https://www.pressroom.com.au/press_release_detail.asp?clientID=2&prID=45710&navSectionID= 20Toyota Finance Australia Business overview
Products and Services Business Highlights
Ι Established in 1982, TFA is a leading provider of automotive
Retail Finance Fleet Management finance and insurance in Australia.
Consumer Loans Asset Finance Ι TFA is a captive financier with strong market share that
Commercial Finance Fleet Management continues to drive revenue and support vehicle sales.
Guaranteed Future Vehicle Maintenance
Novated Leasing
Ι Increase in Total Assets year on year to over A$23.8b.(1)
Value
Salary Packaging
Ι Pre-tax income averaging A$177m over the past 5 years.(2)
Ι On January 21st, 2019 it was announced that Australian
Alliance Automotive Finance Pty Limited, a wholly owned
Dealer Finance Insurance subsidiary of TFA, has entered into a strategic alliance with
Mazda Australia Pty Limited to provide financial services to
Wholesale Comprehensive Mazda dealers and customers.
Real Estate Extended Warranty
Working Capital Finance Protection Ι Mazda Finance continues to perform well with progressive on
Revolving Credit Lines Finance Gap boarding of dealers.
Roadside Assistance
(1) Total Assets as per TFA Interim Financial Statements for the Half Year ended 30 September 2020
(2) Profit before income tax for the five year period from FY16 through FY20; A$227m +A$154m + A$209m + A$204+A$89m = $884m
Source: TFA Half Year report 2021, https://www.toyota.com.au/insurance/car-insurance
Note: Numbers displayed may not add due to rounding.
21Toyota Finance Australia Toyota network in Australia
Sales Network
Ι 227 Dealers PMAs (203 Toyota and 24 Lexus).
Ι 338 Physical Dealership sites.
Ι TMCA HQ, Regional Offices and Toyota WA.
Toyota Finance Australia Coverage
Ι 5 Regional Offices.
Ι 99% of the Toyota network.
Ι 100% of the Lexus network.
Ι 100% of the Hino network.
| Toyota, your essential partner throughout
Australia |
Source: https://www.toyota.com.au/the-company
All figures as at February 2021
22Toyota Finance Australia Asset composition
Segment Assets in AUD billions Retail Fleet Unallocated
(Net of Provisions)
23.85
23.24
20.36
3.63 5.47
18.51
16.81 1.87
15.62 1.75 3.58
3.19 3.48
1.77 2.71
1.77
2.42
2.34
15.30 16.02
14.06 14.90
11.51 12.61
2016 2017 2018 2019 2020 HY 2021
Retail segment is comprised of loans and leases to personal and commercial customers including wholesale finance consisting of loans and bailment facilities to motor vehicle dealerships.
Fleet segment is comprised of loans and leases to small business and fleet customers consisting of medium to large commercial clients and government bodies.
Source: TFA Annual Financial Reports, 2016, 2017, 2018, 2019, 2020, Interim Financial Statement 2021
Note: Numbers displayed may not add due to rounding.
23Toyota Finance Australia Retail segment
Products and Services Overview
Ι
Consumer experience.
Ι Fixed rate consumer loan
Ι Toyota Access (GFV/Used GFV) Ι Leading finance provider for both Toyota and Non-Toyota(2)
Ι Novated lease(1) vehicles and Franchises.
Ι Long standing partnership with the Australian Dealer Network.
Commercial
Ι Fixed rate loan Ι Focused on Guest experience and retention.
Ι Toyota Access (GFV/Used GFV)
Ι Lease products(1)
Toyota Access
Wholesale
Ι Real estate capital loans
Ι Bailment facilities and insurance
Ι Charge plan facilities
Ι Working capital
Insurance
Ι Motor vehicle insurance
Ι Extended warranty
Ι Finance protection
Ι Finance gap
Ι Roadside assistance
(1) Lease products (Novated Lease, Finance Lease) are administered through Toyota Fleet Management
(2) -
Source: TFAL investor relations presentation 2020 Toyota Franchises in 2008 and 2019 respectively 24Toyota Finance Australia Fleet segment
Products and Services Overview
Ι Largest Fleet Management business of the Toyota Group.
Ι -to-end fleet solution through One Toyota.
Ι Variety of distribution channels.
Ι Ongoing development of innovative mobility services.
Ι Diversified fleet customer portfolio across various industries.
Ι One of the top 2 largest fleet management companies in
Australia.
Source: https://www.toyotafleetmanagement.com.au/
25Mazda Finance Mazda network in Australia
AAAF Overview
Seamless and personalised end to end car financing
products and services.
Backed by the strength of Toyota Finance Australia
strategic alliance partners to not only provide the best
experience for their customers, but also to safeguard their
dealer networks against the risk of financial market
downturns.
Power Alliance Finance (PAF)
Launched on October 21st, 2019 PAF is the new generic
brand that sits under AAAF to support Mazda Dealers who
have multi franchises.
Sales Network
Ι 101 Mazda Dealerships on boarded to date.
Ι Total National Mazda Dealership 141.
26Toyota Finance Australia Financial highlights
Financing & Similar Revenue Net Financing Revenue Net Profit after Tax
144
1,197 1,201 527
426
Financial highlights
605 64
167
36
FY2019 FY2020 HY2021 FY2019 FY2020 HY2021 FY2019 FY2020 HY2021
Cash and Cash Equivalents Total Assets Total Impairment Loss
3,379 23,845 224
23,237
1,938
1,417 20,362
61
22
FY2019 FY2020 HY2021 FY2019 FY2020 HY2021 FY2019 FY2020 HY2021
Sources: TFA Annual Financial Reports 2019, 2020 and TFA Interim Financial Statement 2021 AUD millions
Note: Numbers displayed may not add due to rounding. 27Toyota Finance Australia Asset quality
Ι Credit and non-credit impairment losses average Asset Performance
A$79m over the past 5 years. 400M
Total impairment loss Provision for impairment
326M 326M
Ι Provision for impairment established on objective 300M
evidence. 204M 194M
224M
190M
200M 168M 164M
Ι Credit Risk Committee is responsible for risk
87M
assessment, ongoing management, collection, 100M 58M 61M
40M
enforcement and write-off monies lent by the 14M 22M
company. 0M
2015 2016 2017 2018 2019 2020 HY 2021
Arrears (61-90 days past due exposure) Arrears (over 90 days past due exposure)
Retail Fleet Retail Fleet
100M
100M 87M
80M 80M 12 71M 67M
63M 63M 65M
58M 55M
60M 51M 49M 47M 11 4 3 4
45M 45M 60M
21 2 39M 12 7
5 4 2
40M 11 2
40M 75
60 64 60 61
20M 42 46 45 43 45 20M 46 48
34 37
0M 0M
2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020
Arrears measured as amount past due exposure on loans and receivables which includes unimpaired and impaired amounts. Values displayed are in AUD millions and are as at March 31 for each respective financial year.
Source: TFA Annual Financial Reports 2014, 2015, 2016, 2017, 2018, 2019 and 2020, Interim Financial Statement 2021
Note: Numbers displayed may not add due to rounding. 28Toyota Finance Australia Credit decisioning & collections
Ι TFA has been a leader in automotive industry application scorecards since 2001.
Ι Use of scorecards ensure consistent underwriting produced in the Retail portfolio.
AML/CTF/PEPS
/Sanctions
Fraudcheck Behaviour Score
Existing Customers Comprehensive
Bureau Tools
Application
Requesting Finance
Credit Decision
New Customers
Fraud Score
Application Score
Ι Fleet and Dealer applications assessed by Underwriters with industry expertise.
Ι Automation of Collections Activities improves efficiency as well as reinforces compliance with guidelines
and regulations.
Ι Continuous optimisation strategies that enable loss mitigation include a risk based collection segmentation
model and Champion/Challenger testing.
29Toyota Finance Australia COVID-19 response
Employees Dealers Fleet
I Employee health and safety I Working closely with I Finance contract extensions,
remain our top priority. dealers to support sales. lease deferred payments,
I TFA team members I Temporary dealer floorplan and fee waivers for existing
transitioned to remote work interest deferrals. customers.
arrangements. I Principal payment deferrals I Special financing programs
for real estate and working and initial payment deferrals
capital loans. for new customers.
30Toyota Finance Australia Funding overview
Overview (1) (2) FY 2020 Total Debt by product in A$m (1)
Ι Issuing into domestic and international capital markets.
738
Ι Diverse currency mix including: AUD, USD, EUR, GBP, Euro commercial paper 1,918
NZD. US commercial paper 1,566
Ι Range of tenors to match assets (1 month to 5+ years). Euro medium term note 9,847
2,068
Ι Established presence in Uridashi markets.
Securitisation 3,827
Ι Access to Private Securitisation programmes. Bank Loans & Other 748
Frequent Issuer - Capital Markets Issuances (2)
A$275m A$300m A$/NZ$/US$ EUR$650m A$/NZ$/US$ A$400m EUR$750m EUR$500m
3yr DMTN 5yr DMTN 4yr Uridashi 2yr EMTN 4.5yr Uridashi 3yr DMTN 2yr EMTN 7.5yr EMTN
Nov-18 Nov-18 Jan-19 Apr-19 Oct-19 Feb-20 Apr-20 Apr-20
HK$340m A$22m A$/NZ$/US$ EUR$500m Ongoing Ongoing EUR$500m A$/US$
3yr EMTN 5yr DMTN 4yr Uridashi 5yr EMTN ABS CP 4.5yr EMTN 4.5yr Uridashi
Dec-18 Dec-18 Mar-19 Apr-19 issuance issuance Apr-20 Aug-20
2018
Source(1): TFA Annual financial report year ending 31 March 2020
Source(2): Bloomberg
Note: Numbers displayed may not add due to rounding. 31Toyota Finance Australia Liquidity
Master Credit Facility (US$15 billion) | Resilient
Ι Access to US$5 billion 364 day syndicated bank credit facility.
Ι Access to US$5 billion 3 year syndicated bank credit facility.
Access to US$5 billion 5 year syndicated bank credit facility.
Ι
| Strong
Money Market Facilities
(1)
Ι A$1.24 billion in uncommitted and committed money market facilities.
Commercial Paper | Stable
Ι A-1+ / P-1 rated domestic, euro and US commercial paper
programmes.
Securitisation
(1)
Ι A$2.0 billion of available liquidity from private securitisation programmes.
Cash and Cash Equivalents
(2)
Ι A$3.4 billion in short-term liquidity and investments.
Debt Capital Markets & Intercompany Lending
Ι Access to various domestic and international capital markets
Ι Credit Support Agreements from TMC- TFSC- TFA
Source: TFA Annual Financial Report 2020
(1) Amount not utilised as at March 31, 2020
(2) Cash and cash equivalents as at September 30, 2020
Note: Numbers displayed may not add due to rounding. 32Toyota Finance Australia Funding strategy
Diverse, cost effective and sustainable funding
P-1 | A-1+ . Global Issuer Private ABS
Commercial Paper Programmes Euro and Australian Dollar Readily Salable
Euro, Australian Dollar and USD Medium Term Note Programmes Retail Receivables
USD
NZD HKD
Private Placements EUR
GBP AUD
Receptive and responsive to reverse enquiry Multi-currency Issuance Capacity Intercompany Lending Infrastructure
Committed and Uncommitted Bank Credit
Facilities
Investor focused
Long-Term Approach Best-in-Class Execution
Responsive Transparent
Source: TFA Interim Financial Statements for the Half Year ended 30 September 2020
33Toyota Finance Australia Funding strengths
Ι Diverse, sustainable and cost-effective funding programme. | Diverse
Ι Issuing into strong demand with attractive deals.
Ι Demonstrated capacity to securitise assets. | Sustainable
Ι Diversification across markets and currencies.
| Relationships
Ι Identifying & developing new markets and investor relationships.
Ι Responding quickly to opportunities with best-in-class execution.
Ι Strategic coordination amongst TFS Group Issuers.
Ι Long-term approach to maintaining strong business and stakeholder
relationships.
Ι Exceptional liquidity supported by strong balance sheet.
Ι Access to US$15b syndicated bank credit facility.
Ι Access to additional bilateral committed and money market
facilities.
34Toyota Finance Australia Investment highlights
Strength of One Toyota
Ι Established business model and consistent market leader.
Ι Strategic coordination on a local and global scale.
Ι Continued financial strength and strong operating performance.
Ι Ongoing investment in technology, facilities and risk
management.
Ι Part of a world class company and a global leader.
Ι
Our stakeholder management
Ι Focused on guest retention and customer satisfaction.
Ι Engaged workforce and experienced leadership team.
Ι Sustainable approach to our stakeholder relations be it our
business partners, our communities or our investors.
35Contact
Email: Investorrelations@Toyota.com.au
Website: www.toyota.com.au/finance
Contact
Contact
Contact
Email:
Email: Investorrelations@Toyota.com.au
Investorrelations@Toyota.com.au
Website:
Website: www.toyota.com.au/corporate/investors
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