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Investor Update

HY2020 Presentation

Toyota Camry

3

Disclaimer

The information in this presentation is an overview of certain information relating to Toyota Motor Corporation and its subsidiaries (including Toyota Finance Australia Limited

(ABN 48 002 435 181) (“TFA”) and Toyota Motor Corporation Australia Limited (“TMCA”)) (together, the “Toyota Companies”). It has been prepared, 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, expressed or implied, is given by, or on behalf of,

the Toyota Companies or any of the Toyota Companies’ directors, officers 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 Companies’ directors, officers or employees or any other person for any loss

howsoever arising, directly or indirectly, from 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.

4

This presentation is intended for distribution only to financial institutions and professional investors only in circumstances where disclosure is not required under Part 6D.2 or 7.9

of the Corporations Act 2001 of Australia (the “Corporations Act”), and otherwise only as may be permitted by applicable law. The information must not, and is not intended to be,

given to any “retail client” within the meaning of section 761G of the Corporations Act. The information 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.

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 at and may only

be communicated to (a) persons in member states of the European Economic Area who are “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation

(EU) 2017/1129; and (b) in the United Kingdom to such “qualified investors” 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 (Financial Promotion) Order 2005 (the “Order”), or (ii) high net worth entities and other persons to whom it may

lawfully be 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 as “Relevant Persons”). 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

performance of the Toyota Companies’ business and in all cases are capable of being categorised as a professional client or eligible counterparty, each as defined in Directive

2014/65/EU (as amended, “MiFID II) (such persons also being referred to as “Relevant Persons”). This presentation must not be acted or relied on by persons who are not 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 13 September 2019, as supplemented from time to time

(together, the “Prospectus”), 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.

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 amended (“the Securities Act”). Any failure 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.

Disclaimer

5

Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words

“believe”, “expect”, “anticipate”, “intends”, “estimate”, “will”, “may”, "continue”, “should” and similar expressions 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 Toyota Companies’ markets; the impact of regulatory initiatives; and the

strength of the Toyota Companies’ competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon

further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Toyota Companies’ records and other data

available from third 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. 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.

Disclaimer

The Global Toyota Group

Toyota CH-R

7

Toyota Global Vision

| 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.

| Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectation and be rewarded with a smile.

| We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way.

Toyota Motor Corporation Vision and group structure

Source: https://global.toyota/pages/global_toyota/ir/library/sec/20-F_201903_final.pdf

http://www.toyota-global.com/pages/contents/investors/ir_library/sec/pdf/20-F_201803_final.pdf

https://global.toyota/en/company/profile/other-toyota-businesses/

TFAL investor update FY2019, pg 7

Toyota sells its vehicles in approximately

190 countries and regions.

8

Toyota Motor Corporation Toyota at a glance

Sources: https://global.toyota/pages/global_toyota/ir/financial-results/2020_2q_presentation_en.pdf

https://global.toyota/en/sustainability/report/er/

TFAL investor relations presentation 2019, pg. 8

Note: Numbers displayed may not add due to rounding.

Ι Operating for over 80 years and a global leader in mobility.

Ι Consolidated vehicle sales exceeded 8.9 million units in FY2019.

Ι Continued expansion in vehicle manufacturing capabilities.

Ι Global manufacturing presence and extensive sales network.

9,116 8,972 8,681

8,971 8,964 8,977

4,639

-

2,000

4,000

6,000

8,000

10,000

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 HY2020

Th

ou

san

ds

of

un

its

Consolidated Vehicle Sales

370,870 8,985,186 8,976,795

(Consolidated, as of

March 31, 2019)(Consolidated, FY2019) (Consolidated, FY2019)

Toyota Group Companies

25,691.9 27,234.5

28,403.1 27,597.1 29,379.5

30,225.60

15,285.50

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 HY2020

Bil

lio

ns

of

ye

n

Net revenues

9

Toyota Motor Corporation Sustainability

Sources: https://global.toyota/en/sustainability/report/er/


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 One of Toyota’s goals is to reduce new vehicle CO2 emissions by 90%

by 2050, in comparison with 2010 levels.

Ι Globally Toyota has delivered more than 13 million electrified

vehicles.

Ι Toyota has reduced water usage by 23% within TMC vehicle plants in

FY19 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 2019 a total of 132,000 End of life

batteries had been collected.

Global Sustainability

¥ 9,199.5 ¥ 9,372.1 ¥ 9,454.4 ¥ 9,452.0

FY2017 FY2018 FY2019 HY2020

¥ 1,211.8 ¥ 1,302.7

¥ 1,465.8

¥ 626.5

FY2017 FY2018 FY2019 HY2020

¥ 1,037.5 ¥ 1,064.2 ¥ 1,048.8

¥ 584.4

FY2017 FY2018 FY2019 HY2020

¥ 27,597.1 ¥ 29,379.5 ¥ 30,225.6

¥ 15,285.5

FY2017 FY2018 FY2019 HY2020

¥ 1,994.3

¥ 2,399.8 ¥ 2,467.5

¥ 1,404.3

FY2017 FY2018 FY2019 HY2020

¥ 1,831.1

¥ 2,493.9

¥ 1,882.8

¥ 1,274.9

FY2017 FY2018 FY2019 HY2020

Net Revenues

Toyota Motor Corporation Financial Highlights

(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

Sources: TMC FY2017 Financial Results; TMC FY2018 Financial Results; TMC FY2019 Financial Results, TMC FY2020 2Q Financial Results

https://www.toyota-global.com/pages/contents/investors/financial_result/2017/pdf/q4/summary.pdf

https://www.toyota-global.com/pages/contents/investors/financial_result/2018/pdf/q4/summary.pdf

https://global.toyota/pages/global_toyota/ir/financial-results/2019_4q_presentation_en.pdf

https://global.toyota/pages/global_toyota/ir/financial-results/2020_2q_presentation_en.pdf


¥ in billions

Operating Income Net Income

Total Liquid Assets(1) Capital Expenditures R&D Expenditures

10

11

Toyota Financial Services

Europe/Africa Asia/Pacific Americas

Germany

United Kingdom (U.K.)

Finland

Italy

Norway

France

Sweden

Poland

South Africa

Ireland

Czech Republic

Denmark

Hungary

Spain

Slovakia

Russia

Kazakhstan

Portugal

Netherlands

Australia

New Zealand

Thailand

Malaysia

Philippines

Taiwan

China

Korea

Indonesia

Vietnam

India

Japan

United States of America (U.S.A)

Puerto Rico

Canada

Brazil

Venezuela

Mexico

Argentina

Global presence

Source: http://www.tfsc.jp/overseas/index.html

Toyota Financial Services Select entities

TMCToyota Motor Corporation

TFSCToyota Financial Services

Corporation

TFSICToyota Financial Services International Corporation

TMCCToyota Motor Credit

Corporation

TCCIToyota Credit Canada Inc.

TMFNLToyota Motor Finance

Netherlands B.V.

TFAToyota Finance Australia

Limited

Ι TMCC, TCCI, TMFNL and TFA are named issuers under the €50,000,000,000 Euro Medium Term Note Programme.

Ι TMCC, TMFNL and TFA are named issuers under the A$10,000,000,000 Debt Issuance Programme.12

Toyota Financial Services Credit Support Agreements

Ι Securities* issued by TFA (and various other TFSC subsidiaries) have the benefit 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 long as

covered securities are outstanding.

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.

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.

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.

* “Securities” defined as outstanding bonds, debentures, notes and other investment securities and commercial paper, but does not include asset-backed securities issued by TFA’s securitisation trusts. 13

Credit Support

Agreement

Credit Support

Agreement

TFA

TFSC

TMC

Source: TFAL investor relations presentation 2019, pg.12

14

Toyota Financial Services Credit ratings

Source: Bloomberg Credit Rating Profile as at 18 November 2019

TFAL Investor update 2019, pg 13

Standard & Poor’s Moody’s

Long Term Short Term Long Term Short Term

Toyota Motor Corporation

Toyota Finance Australia Limited

Outlook Stable Stable

AA-

AA-

Aa3

Aa3

A-1+

A-1+

P-1

P-1

15

Toyota in Australia

Toyota Hilux

16

Toyota in Australia Value chain

Toyota Motor Corporation Australia Limited (“TMCA”)

Ι Sales , marketing & distribution

Ι Product planning & development

Ι Guest experience centre

Toyota Finance Australia Limited (“TFA”)

Ι Retail and wholesale finance & insurance

Ι Fleet management

Ι Guest experience

Toyota Dealer Network

Ι New and certified pre-owned vehicle sales

Ι Servicing & repairs

Ι Guest experience

ONE TOYOTA

Source: TFAL investor update FY2019, pg 15

17

Ι Australian vehicle market has shown solid long-term performance, with total new vehicle sales for CY2018 at 1,153

thousand.

Ι CY2019 is showing tough market conditions in the sector, Toyota is well positioned and maintains the largest market

share.

Toyota Motor Corporation Australia Australian market trend

Source: Actual data based on VFACTS Industry Reports to October 2019 published by Federal Chamber of Automotive Industries


55

9K

57

7K

56

6K

53

1K

51

6K

48

6K

45

0K

37

8K 27

0K

44

9K

53

5K

57

0K

58

2K

64

0K

69

2K

73

9K

77

5K 6

24

K

1,008K

1,112K 1,136K 1,113K1,155K 1,178K 1,189K

1,153K

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 (Oct YTD)

Ne

w V

eh

icle

Sa

les

(u

nit

s)

Passenger Commercial

18

Toyota Motor Corporation Australia Toyota’s market leadership

Toyota includes Toyota and Lexus marques

Source: VFACTS Industry Reports to October 2019 published by Federal Chamber of Automotive Industries, TFAL investor update FY19,

https://www.goauto.com.au/news/toyota/toyota-on-track-for-211-000-sales-in-tough-market/2019-05-10/78673.html


Ι Toyota remains the market leader in an industry demonstrating long term growth.

Ι 2019 will mark 17 years in a row as Australia’s top selling automotive brand and

the 15th year of vehicle sales above 200,000.

Ι 2019 Toyota has seen a market share consistently above 19.2%, double that of

our nearest competitor.

20.1%

9.6%

8.3%

4.2%

6.0%7.8%4.7%

4.7%

5.8%

3.8%

4.1%

21.1%

Market Share – 2019 October YTD

Toyota (20.1%)

Mazda (9.6%)

Hyundai (8.3%)

Holden (4.2%)

Ford (6%)

Mitsubishi

(7.8%)Volkswagen

(4.7%)Nissan (4.7%)

Kia (5.8%)

22

1

18

8 22

5

22

2

21

1

21

5

21

9

22

5

22

6

18

0

85 88

10

4

10

3

10

1

11

4

11

8

11

6

11

1

85

80 87 92 97

10

0

10

2

10

2

97

94

74

13

3

12

6

11

5

11

2

10

6

10

3

94

90

61

37

95

91

90

87

80

70 8

1

78

69

53

20.1%

0%

5%

10%

15%

20%

25%

-

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (YTD)

Ma

rke

t S

ha

re

Un

its

So

ld (

'00

0)

Australian Vehicle Sales

Toyota* Mazda Hyundai Holden Ford Toyota* Market Share

Ι In 2019 Toyota Australia continues its transformation from an automotive

company into a mobility company.

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.

Ι To achieve this future direction, Toyota are currently focused on the following

activities:

Ι Influence of product design and development to suit the Australian

market.

Ι Sourcing of fun-to-drive and innovative vehicles with

environmentally focused drivetrains.

Ι Study of new innovative usership (carshare / rideshare) and

ownership solutions.

Ι Establishment of Toyota Australia’s 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).

19

Toyota Motor Corporation Australia Overview

Source: Toyota Sustainability Report and Reputation Institute


Ι Hybrid vehicles

Ι Electric vehicles

Ι Petrol and diesel vehicles

Ι Automated vehicles

Ι Cooperative intelligent transport systems

Ι Fuel cell vehicles

Toyota Australia

Product Innovation

Toyota Australia Future Direction

3 34

1

4

12

42

4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Toyota ranks in the top 5 most reputable companies in Australia for the last ten years

20

Toyota Motor Corporation Australia Vehicles in the spotlight

Toyota Camry Hybrid

Ι Over the long term hybrid Camry accounts

for more than half of all Toyota hybrids sold

in Australia.

Ι 45% of Camry sales this year are hybrid

Ι Camry first offered a hybrid variant in 2010.

Toyota Rav4 Hybrid

Ι 60% of RAV4s sold are hybrid variants*.

Ι RAV4 hybrids offer fuel consumption of

4.7 (2WD) & 4.8L (Electric AWD) per

100km.

Ι First Toyota hybrid SUV for the Australian

market.

Toyota Corolla Hybrid

Ι Corolla hybrid has become the most popular

hybrid vehicle in Australia in 2019 (as at April 30,2019).

Ι Demand for Hybrid Corolla seen across

numerous industry sectors.

Ι Hybrid sales are driving strong market share

outcomes for corolla.

Source: https://toyota.pressroom.com.au/press_release_detail.asp?clientID=2&prID=32260&navSectionID

https://www.toyota.com.au/news/toyota-surpasses-100k-hybrid-sales-in-australia

Toyota Hilux

Ι Top selling vehicle in Australia in

2016, 2017 and 2018.

Ι Hilux is the only commercial vehicle

to have secured the #1 spot.

Ι Australia’s best-selling 4WD

vehicle for 12 consecutive years.

Toyota Corolla

Ι Australia’s best-selling passenger

car in 2018.

Ι Top selling vehicle in Australia

from 2013 – 2015.

Ι 2020 Corolla Hatch available in

Australian showrooms from

November 2019.

Toyota Camry

Ι Australia’s best-selling mid-size

car for 25 consecutive years.

Ι 2018 Segment share of 53.1%

Ι Camry redesigned under the

Toyota New Global Architecture

platform.

* As at 31 May, 2019

Toyota Motor Corporation Australia Sustainability

Cumulative hybrid sales in

Australia

100,213

Total as at 30 April 2019

Source Sustainability Report 2019 & VFACTS Industry Reports published by Federal Chamber of Automotive Industries

https://www.toyota.com.au/sustainability 21

Prius V

4599

Prius C

9420

Prius

20534

Camry

55006Corolla

10654

Local Sustainability

Ι TMCA hit a significant milestone in April 2019 announcing the

sale of more than 100,000 Toyota fuel-efficient hybrid electric

vehicles. Hybrid sales are expected to account for 20% of TMCA

sales in CY 2020 with 8 hybrid models offered across the range.

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.

Ι March 2019 plans were unveiled to build a Hydrogen

Experience Centre at the former manufacturing site in Altona.

Ι The Toyota Mirai is powered exclusively by hydrogen, only emits

water vapour, has a cruising range of approx. 550 kms and is

currently sold in Japan, the United States and Europe.

Ι TMCA has been working closely with the Australian Hydrogen

Council and local organisations since 2018 to trial the use of

the Toyota Mirai within Australia.

22

Toyota Finance Australia Business overview

Retail Finance

•Consumer Loans

•Commercial Finance

•Guaranteed Future Value

Fleet Management

•Asset Finance

•Fleet Management

•Vehicle Maintenance

•Novated Leasing

•Salary Packaging

Ι Established in 1982, TFA is a leading provider of automotive

finance and insurance in Australia.

Ι TFA is a captive financier with strong market share that continues

to drive revenue and support vehicle sales.

Ι Increase in Total Assets year on year to over A$21.16b.(1)

Ι Pre-tax income averaging A$198m over the past 5 years.(2)

Ι On January 21st, 2019 it was announced that Australian Alliance

Automotive Finance Pty Limited, a wholly owned subsidiary of

TFA, has entered into a strategic alliance with Mazda Australia Pty

Limited to provide financial services to Mazda dealers and

customers.

Ι On July 12th, 2019, the first Mazda Finance contract was written

and the vehicle was collected on the same day.

Dealer Finance

•Wholesale

•Real Estate

•Working Capital

•Revolving Credit Lines

Insurance

•Comprehensive

•Extended Warranty

•Finance Protection

•Finance Gap

•Roadside Assistance

(1) Total Assets as per TFA Interim Financial Statements for the Half Year ended 30 September 2019

(2) Profit before income tax for the five year period from FY15through FY19; A$198m + $227m + $154m + $209m + $204 = $992m

Products and Services Business Highlights

Source: TFA Half Year report 2020, https://www.toyota.com.au/insurance/car-insurance


23

Toyota Finance Australia Toyota network in Australia

Ι 222 Dealers PMAs (199 Toyota and 23 Lexus).

Ι 329 Physical Dealership sites.

Ι TMCA HQ, Regional Offices and Toyota WA.

Ι 5 Regional Offices.

Ι 99% of the Toyota network.

Ι 100% of the Lexus network.

Ι 100% of the Hino network.

Sales Network

Toyota Finance Australia Coverage

| Toyota, your essential partner throughout Australia |

Source: https://www.toyota.com.au/the-company

All figures as at June 2019

24

Toyota Finance Australia Asset composition

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, 2015, 2016, 2017, 2018, 2019, Interim Financial Statement 2020


10.84 11.5112.61

14.0615.30 15.60

2.512.34

2.42

2.71

3.193.47

2.10 1.77

1.77

1.75

1.872.09

15.45 15.62

16.81

18.51

20.36 21.16

2015 2016 2017 2018 2019 HY 2020

Segment Assets in AUD billions(Net of Provisions)

Retail Fleet Unallocated

25

Toyota Finance Australia Retail segment

Overview

Ι One of Australia’s leading vehicle financiers with 35+ years experience.

Ι Leading finance provider for both Toyota and Non-Toyota(2) vehicles

and Franchises.

Ι Long standing partnership with the Australian Dealer Network.

Ι Focused on Guest experience and retention.

Products and Services

Consumer

Ι Fixed rate consumer loan

Ι Toyota Access (GFV/Used GFV)

Ι Novated lease(1)

Commercial

Ι Fixed rate loan

Ι Toyota Access (GFV/Used GFV)

Ι Lease products(1)

Insurance

Ι Motor vehicle insurance

Ι Extended warranty

Ι Finance protection

Ι Finance gap

Ι Roadside assistance

Wholesale

Ι Real estate capital loans

Ι Bailment facilities and insurance

Ι Charge plan facilities

Ι Working capital

(1) Lease products (Novated Lease, Finance Lease) are administered through Toyota Fleet Management

(2) TFA’s Power Torque brand ,AAAF’s & Power Alliance Finance Mazda Finance brand was established for non-Toyota

Franchises in 2008 and 2019 respectively

Toyota Access

Source: TFAL investor relations presentation 2019

26

Toyota Finance Australia Fleet segment

Overview

Ι Largest Fleet Management business of the Toyota Group.

Ι Australia’s only end-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.

Products and Services

Source: https://www.toyotafleetmanagement.com.au/

27

Mazda Finance Mazda network in Australia

Ι 55 Mazda Dealerships on boarded to date.

Ι Total National Mazda Dealership 142.

Sales Network

AAAF Overview

Seamless and personalised end to end car financing experience

that includes “Manufacturer Branded” financial products and

services.

Backed by the strength of Toyota Finance Australia Limited;

AAAF is the “White Label” solution that assists our 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.

Financial highlights

Sources: TFA Annual Financial Reports 2018, 2019 and TFA Interim Financial Statement 2020

Note: Numbers displayed may not add due to rounding. AUD millions

Financing & Similar Revenue Net Financing Revenue Net Profit after Tax

Cash and Cash Equivalents Total Assets Total Impairment Loss

Toyota Finance Australia

1,094 1,197

612

FY2018 FY2019 HY2020

357

426

244

FY2018 FY2019 HY2020

148 144

85

FY2018 FY2019 HY2020

1,283

1,417

1,383

FY2018 FY2019 HY2020

18,514

20,362

21,156

FY2018 FY2019 HY2020

14

61

25

FY2018 FY2019 HY2020

28

29

Toyota Finance Australia Asset quality

Ι Credit losses average A$52m over the past 5 years.

Ι Provision for impairment established on objective

evidence.

Ι Credit Risk Committee is responsible for risk

assessment, ongoing management, collection,

enforcement and write-off monies lent by the

company.

25

46

7560 64

4860

26

12

12

114

7

351M58M

87M

71M 67M

55M63M

0M

20M

40M

60M

80M

100M

2013 2014 2015 2016 2017 2018 2019

Arrears (over 90 days past due exposure)Retail Fleet

1934

42 46 45 43 457

11

215

42 2

26M

45M

63M

51M 49M45M 47M

0M

20M

40M

60M

80M

100M

2013 2014 2015 2016 2017 2018 2019

Arrears (61-90 days past due exposure)Retail Fleet

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 2013, 2014, 2015, 2016, 2017, 2018 and 2019, Interim Financial Statement 2020


87M

58M40M

14M

61M

25M

204M194M 190M

168M 164M 164M

0M

50M

100M

150M

200M

250M

2015 2016 2017 2018 2019 HY 2020

Credit Performance

Total impairment loss Provision for impairment

30

Toyota 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.

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.

New Customers

AML/CTF/PEPS/

SanctionsFraudcheck

Application Score

Behaviour Score

Existing Customers

Fraud Score

Credit Decision

Application

Requesting Finance

Comprehensive

Bureau Tools

5,085

2,018

6,759

1,489

1,944

897

Securitisation, Bank Loans &

Other

Domestic medium term note

Euro medium term note

US commercial paper

Euro commercial paper

Domestic commercial paper

Toyota Finance Australia Funding overview

Source(1): TFA Annual financial report year ending 31 March 2019

Source(2): Bloomberg


Overview (1) (2)

Ι Issuing into domestic and international capital markets.

Ι Diverse currency mix including: AUD, USD, EUR, GBP, NZD.

Ι Range of tenors to match assets (1 month to 5+ years).

Ι Established presence in Uridashi markets.

Ι Access to Private Securitisation programmes.

FY 2019 Total Debt by product in A$m (1)

Frequent Issuer - Capital Markets Issuances (2)

2018

A$275m

3yr DMTNNov-18

A$300m

5yr DMTNNov-18

HK$340m

3yr EMTNDec-18

A$/NZ$/US$

4yr UridashiMar-19

A$22m

5yr DMTNDec-18

Ongoing

CP

issuance

A$/NZ$/US$

4yr UridashiJan-19

EUR$650m

2yr EMTNApr-19

EUR$500m

5yr EMTNApr-19

Ongoing

ABS

issuance

31

A$/NZ$/US$4.5yr Uridashi

Oct-19

32

Toyota Finance Australia Liquidity

Source: TFA Annual Financial Report 2019

(1) Amount not utilised as at March 31, 2019

(2) Cash and cash equivalents as at September 30, 2019


Master Credit Facility (US$15 billion)

Ι Access to US$5 billion 364 day syndicated bank credit facility.

Ι Access to US$5 billion 3 year syndicated bank credit facility.

Ι Access to US$5 billion 5 year syndicated bank credit facility.

Commercial Paper

Ι A-1+ / P-1 rated domestic, euro and US commercial paper

programmes.

Money Market Facilities

Ι A$1.34 billion in uncommitted and committed money market facilities.(1)

Cash and Cash Equivalents

Ι A$1.4 billion in short-term liquidity and investments.(2)

Debt Capital Markets & Intercompany Lending

Ι Access to various domestic and international capital markets

Ι Credit Support Agreements from TMC- TFSC- TFA

| Resilient

| Strong

| Stable

Securitisation

Ι A$1.1 billion of available liquidity from private securitisation programmes.(1)

Toyota Finance Australia Funding strategy

Source: TFA Interim Financial Statements for the Half Year ended 30 September 201933

Diverse, cost effective and sustainable funding

P-1 | A-1+ .

Commercial Paper Programmes

Euro, Australian Dollar and USD

Global Issuer

Euro and Australian Dollar

Medium Term Note Programmes

Private ABS

Readily Salable

Retail Receivables

Private Placements

Receptive and responsive to reverse enquiry

USD

NZD HKD

EURGBP AUD

Multi-currency Issuance Capacity

Intercompany Lending Infrastructure

Committed and Uncommitted Bank Credit Facilities

Investor focused

Long-Term Approach Best-in-Class Execution

Responsive Transparent

34

Funding strengths

Ι Diverse, sustainable and cost-effective funding programme.

Ι Issuing into strong demand with attractive deals.

Ι Demonstrated capacity to securitise assets.

Ι Diversification across markets and currencies.

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.

| Diverse

| Sustainable

| Relationships

Toyota Finance Australia

35

Toyota 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 Operates under the renowned ‘Toyota Way’ principles.

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.

ContactEmail: [email protected]

Website: www.toyota.com.au/finance

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