Investor Update HY2020 Presentation - Toyota · 7 Toyota Global Vision | Toyota will lead the way...
Transcript of Investor Update HY2020 Presentation - Toyota · 7 Toyota Global Vision | Toyota will lead the way...
Investor Update
HY2020 Presentation
Toyota Camry
Investor Relations Agenda
3 | Disclaimer
6 | The Global Toyota Group
15 | Toyota in Australia
22 | Toyota Finance Australia
35 | Investment Highlights
Page | Topic
Toyota RAV4
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/
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
¥ 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
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
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).
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Toyota Motor Corporation Australia Overview
Source: Toyota Sustainability Report and Reputation Institute
Note: Numbers displayed may not add due to rounding.
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
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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.
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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
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
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
Note: Numbers displayed may not add due to rounding.
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