Exhibit 99.1
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[GRAPHIC OMITTED] PRESENTATION TO FIXED INCOME INVESTORS OCTOBER 2011 |
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DISCLAIMER
[] This presentation includes certain "forward-looking statements" within the
meaning of The U. S. Private Securities Litigation Reform Act of 1995.
[] These statements are based on current expectations and currently available
information.
[] Actual results may differ materially from these expectations due to certain
risks, uncertainties and other important factors, including the risk
factors set forth in the most recent annual and periodic reports of Toyota
Motor Corporation and Toyota Motor Credit Corporation
[] We do not undertake to update the forward-looking statements to reflect
actual results or changes in the factors affecting the forward-looking
statements.
[] This presentation does not constitute an offer to sell or a solicitation of
an offer to purchase any securities. Any offer or sale of securities will
be made only by means of a prospectus and related documentation.
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TOYOTA' S GLOBAL BUSINESSES [GRAPHIC OMITTED] |
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TMC CONSOLIDATED FINANCIAL RESULTS
Fiscal Year Ended March 31,
(JPY billions) 2009 2010 2011
------------------------ ---------- -------- ----------
Net Revenues 20,529.5 18,950.9 18,993.6
Operating Incom e (Loss) (461.0) 147.5 468.2
Net Incom e (Loss) (437.0) 209.4 408.1
Sources: Toyota Motor Corporation FY 2010 Financial Summary and FY 2011
Financial Summary
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TMC CONSOLIDATED BALANCE SHEET
FY2010 FY2011
(JPY billions) As of March 31, 2010 As of March 31, 2011
---------------------------------------- ------------------------ ----------------------
Current assets 13,073.6 11,829.8
Noncurrent finance receivables, net 5,630.7 5,556.7
Investment and other assets 4,934.1 6,122.5
Property, plant and equipment, net 6,710.9 6,309.2
======================== ======================
Total Assets 30,349.3 29,818.2
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Liabilities 19,418.8 18,898.1
Shareholders' equity 10,930.4 10,920.0
======================== ======================
Total Liabilities and Shareholders' Equity 30,349.3 29,818.2
======================== ======================
Source: Toyota Motor Corporation FY2011 Financial Summary
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PRODUCTION UPDATE
[] Toyota Motor Corporation has revised its production schedule following the
disruptions caused by the March 2011 Japanese earthquake and tsunami
[] Japan production returned to normal levels in July
[] North American production has returned to 100%
-- The following twelve core models account for nearly 70% of Toyota's U. S.
sales:
Avalon RX 350
Camry Sequoia
Corolla Sienna
Highlander Tacoma
Matrix Tundra
RAV 4 Venza
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TOYOTA MOTOR SALES, USA
[] Product refresh cycle is high: 10 all-new or refreshed models for 2011
[] Industry-leading investment in next-generation technologies in power-train,
safety and production
-- TMS has the most fuel-efficient line-up of any full-line OEM
-- 8 hybrid models in TMS line-up and 73% share of the U. S. hybrid market (1)
[] Recent and upcoming vehicle launches:
-- Lexus CT200h
-- Camry and Camry Hybrid
-- Prius v
-- Scion iQ
-- Refreshed Corolla/Matrix
-- Yaris
[GRAPHIC OMITTED]
(1) As of July 31, 2011
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TOYOTA MOTOR SALES, USA (2) Lexus GS 350 [GRAPHIC OMITTED] Camry and Camry Hybrid [GRAPHIC OMITTED] |
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TOYOTA MOTOR SALES, USA (3) Prius v [GRAPHIC OMITTED] Scion iQ [GRAPHIC OMITTED] |
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TOYOTA MOTOR SALES, USA (4) Lexus LFA [GRAPHIC OMITTED] Scion FR-S Concept [GRAPHIC OMITTED] |
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TOYOTA FINANCIAL SERVICES |
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TFS GROUP GLOBAL PRESENCE 34 COUNTRIES AND REGIONS WORLDWIDE |
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TOYOTA MOTOR CREDIT CORPORATION (TMCC) TOYOTA MOTOR CORPORATION (TMC) TOYOTA FINANCIAL SERVICES CORPORATION (TFSC) TOYOTA MOTOR CREDIT CORPORATION (TMCC) [] Over 4.0 million active finance contracts (1) [] AA-(2)/Aa3(3) rated captive finance company [] Credit support agreement structure with TFSC/TMC (1) As of June 30, 2011 (2) Outlook negative (3) Outlook stable |
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CREDIT SUPPORT AGREEMENTS
[] Securities* issued by TMCC (and various other TFSC subsidiaries) have the
benefit of a credit support agreement with TFSC
-- TFSC will own 100% of TMCC
-- TFSC will cause TMCC to maintain a tangible net worth of at least $100,000
as long as covered securities are outstanding
-- If TMCC determines it will be unable to meet its payment obligations on any
securities, TFSC will make sufficient funds available to TMCC to ensure
that all such payment obligations are paid as due
-- Agreement cannot be terminated until (1) repayment of all outstanding
securities or (2) each rating agency requested by Toyota to provide a
rating has confirmed no change in rating of all such securities
[] TFSC in turn has the benefit of a credit support agreement with Toyota
Motor Corporation ("TMC")
-- Same key features as TFSC/TMCC credit support agreement
-- TMC will cause TFSC to maintain a tangible net worth of at least JPY10mm as
long as covered securities are outstanding
[] TFSC's and/or TMC's credit support obligations will rank pari passu with
all other senior unsecured debt obligations
* Securities defined as outstanding bonds, debentures, notes and other
investment securities and commercial paper, but does not include
asset-backed securities issued by TMCC's securitization trusts.
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TMCC PRODUCTS AND SERVICES
Consumer Dealer Commercial Insurance
Finance Finance Finance
------------------- ------------------- ------------------- ---------------------
[] Retail []Wholesale [] Forklift [] Service Agmts
[]Lease [] Real Estate [] Hino Medium Duty [] Ext. Warranty
[] Working Capital [] Retail [] Guaranteed Auto
[] Revolving Credit ([]) Lease Protection
Lines []Roadside Assistance
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TMCC FINANCIAL PERFORMANCE - SELECT DATA
Three Month
Fiscal Year Ended March 31, Ended
June 30,
(USD m illions) 2008 2009 2010 2011 2011
----------------------------------- ------ ------------ -------------- ----- ------------
Total Financing Revenues 8,192 8,800 8,163 8,064 1,920
add: Other Incom e 686 432 680 779 190
less: Interest Expense 7,450 7,132 5,587 4,967 1,282
and depreciation
Net Financing Revenues 1,428 2,100 3,256 3,876 828
and Other Revenues
Net Incom e (Loss) (223) (623) 1,063 1,853 465
Source: TMCC March 31, 2011 10-K and June 30, 2011 10-Q
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TMCC EARNING ASSET COMPOSITION Managed Assets (USD billions) [GRAPHIC OMITTED] Source: TMCC March 31, 2011 10-K and June 30, 2011 10-Q |
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EXTENSIVE FIELD ORGANIZATION [] Decentralized dealer and field support [] Centralized servicing and collections (circled) [GRAPHIC OMITTED] |
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TMCC Financial Performance - Select Data
Three Month
Fiscal Year Ended March 31, Ended
June 30,
(USD m illions) 2008 2009 2010 2011 2011
---------------------------------------- ----- ------------ -------------- ------ ------------
Over 60 Days Delinquent ()1) 0.59% 0.68% 0.45% 0.26% 0.32%
Allowance for Credit Losses ()1) (2) 0.97% 2.51% 2.31% 1.13% 0.89%
Net Credit Losses ()3) 0.91% 1.37% 1.03% 0.52% 0.05%
(1) Percentage of gross earning assets
(2) The quotient of allowance for credit losses divided by the sum of gross
finance receivables (net finance receivables less allowance for credit
losses) plus gross investments in operating leases (net investments in
operating leases less allowance for credit losses)
(3) Percentage of average gross earning assets annualized
Note: All percentage figures calculated for fiscal years 2007, 2008 and 2009
were based on a 150-day charge-off policy, which was changed to 120 days in
fiscal 2010
Source: TMCC March 31, 2011 10-K and June 30, 2011 10-Q
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TMCC Retail Loan Collateral and ABS Transactions |
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CREDIT DECISIONING AND COLLECTIONS [] Major adjustments to credit decisioning implemented beginning in late 2007 -- Identification and elimination of least desirable segments [] Renewed focus on core Toyota and Lexus business [] Rededication of collections strategy and staff -- Re-trained staff and out-sourced high risk collections -- Emphasis on early intervention -- Optimization of staff and technology resources |
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CREDIT: RESULTS* [] Retail loan credit performance has shown significant improvement -- Portfolio-level performance trends show general improvement -- Recent vintages outperforming older cohorts Cumulative Net losses: Annual Origination Vintages [GRAPHIC OMITTED] * Abbreviated for presentation purposes. Source: Company reports |
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MANAGED PORTFOLIO PERFORMANCE
TMCC Retail Loan Delinquency Experience (1)
At September 30, At March 31,
======================== =========== ============== ============= ============ ============
2011 2010 2011 2010 2009 2008 2007
=========== ============ =========== ============== ============= ============ ============
Outstanding Contracts (2) 3,167,374 3,164,774 3,189,591 3,093,894 3,050,178 2,942,565 2,681,902
Number of Accounts Past Due
in the following categories
30 - 59 days 48,619 60,338 43,070 55,123 57,547 54,219 40,967
60 - 89 days 10,766 13,695 8,588 11,722 13,327 13,010 9,571
Over 89 days 9,456 11,067 9,153 10,953 11,797 9,575 6,216
Delinquencies as a Percentage
of Contracts Outstanding (3)
30 - 59 days 1.53% 1.91% 1.35% 1.78% 1.89% 1.84% 1.53%
60 - 89 days 0.34% 0.43% 0.27% 0.38% 0.44% 0.44% 0.36%
Over 89 days 0.30% 0.35% 0.29% 0.35% 0.39% 0.33% 0.23%
(1) The historical delinquency data reported in this table includes all retail
vehicle installment sales contracts purchased by TMCC, excluding those
purchased by a subsidiary of TMCC operating in Puerto Rico. Includes
contracts that have been sold but are still being serviced by TMCC.
(2) Number of contracts outstanding at end of period.
(3) The period of delinquency is based on the number of days payments are
contractually past due. A payment is deemed to be past due if less than 90%
of such payment is made.
Source: Company reports
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Performance -- Retail Loan
TMCC Managed Portfolio Net Loss and Repossession Experience (dollars in
thousands) (1)
For the 6 Months Ended For the Fiscal Years Ended
September 30, March 31,
2011 2010 2011 2010 2009 2008
2007
Principal Balance Outstanding (2) $45,050,980 $44,780,390 $45,053,303 $43,234,740 $43,485,623 $42,313,780
$37,487,787
Avg. Principal Balance Outstanding (3) $45,052,141 $44,007,565 $44,144,021 $43,360,181 $42,899,702 $39,900,783
$34,929,981
# of Contracts Outstanding 3,167,374 3,164,774 3,189,591 3,093,894 3,050,178 2,942,565
2,681,902
Average # of Contracts Outstanding (3) 3,178,483 3,129,334 3,141,743 3,072,036 2,996,372 2,812,234
2,526,991
# of Repossessions (4) 21,378 33,138 64,710 79,637 81,270 65,785
48,537
# of Repossessions as a % of the Avg. # of
Contracts Outstanding (8) 1.35% 2.12% 2.06% 2.59% 2.71% 2.34%
1.92%
Gross Charge-Offs (5)(7) $120,374 $240,803 $447,159 $724,212 $897,508 $608,689
$388,075
Recoveries (6) $43,550 $53,560 $98,105 $116,892 $87,182
$68,511 $66,319
Net Losses $76,824 $187,243 $349,054 $607,320 $810,326 $540,178
$321,756
Net Losses as a Percentage of Average Principal
Balance Outstanding (8) 0.34% 0.85% 0.79% 1.40% 1.89% 1.35%
0.92%
(1) The net loss and repossession data reported in this table includes all
retail installment sales contracts purchased by TMCC, excluding those
purchased by a subsidiary of TMCC operating in Puerto Rico. Includes
contracts that have been sold but are still being serviced by TMCC.
(2) Principal Balance Outstanding includes payoff amount for simple interest
contracts and net principal amount for actuarial contracts.
(3) Average of the principal balance or number of contracts outstanding as of
the beginning and end of the indicated periods.
(4) Includes bankrupt repossessions but excludes bankruptcies.
(5) Amount charged -off is the net remaining principal balance, including
earned but not yet received finance charges, repossession expenses and
unpaid extension fees, less any proceeds from the liquidation of the
related vehicle. Also includes dealer reserve charge-offs.
(6) Includes all recoveries from post-disposition monies received on previously
charged -off contracts including any proceeds from the liquidation of the
related vehicle after the related charge-off. Also includes recoveries for
dealer reserve charge-offs and chargebacks.
(7) Beginning in February 2010, Toyota Motor Credit Corporation changed its
charge-off policy from 150 days past due to 120 days past due.
(8) Annualized.
Source: Company reports
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ORIGINATION PROFILE
TMCC Retail Auto Loan Originations*
Origination Year 2006 2007 2008 2009 2010
============================================== ============== ============== ============== ============== ==============
Number of Pool Assets 960,111 1,070,814 1,070,411 824,133 956,010
Original Pool Balance 20,318,711,020 23,723,872,435 23,938,411,965 17,974,710,305 21,924,552,881
Average Initial Loan Balance 21,163 22,155 22,364 21,810 22,933
Weighted Average Interest Rate 7.86% 7.64% 6.03% 5.69% 3.91%
Weighted Average Original Term 62 62 63 62 62
Weighted Average FICO 705 708 723 737 738
Geographic Concentrations: (Top 5 States)
CA-23.5% CA-22.9% CA-20.7% CA-18.9% CA-18.0%
TX-10.4% TX-11.0% TX-12.0% TX-12.1% TX-13.1%
NY-5.4% NY-5.1% NY-4.8% NY-5.4% NY-5.2%
VA-5.1% NJ-4.8% NJ-4.5% NJ-5.2% NJ-4.7%
NJ-4.8% VA-4.3% IL-4.3% IL-4.3% VA-4.5%
Distribution of Assets by Interest Rate: (1)
<2.0% 8.9% 11.3% 15.9% 17.1% 35.2%
2.0%-3.99% 10.5% 8.9% 14.7% 17.9% 22.8%
4.0%-5.99% 11.1% 11.6% 20.4% 21.2% 19.3%
6.0%-7.99% 31.2% 31.8% 26.2% 23.9% 13.6%
8.0%-9.99% 17.3% 18.2% 12.6% 11.3% 4.1%
10.0%-11.99% 7.1% 6.0% 3.7% 3.5% 1.7%
12.0%-13.99% 3.0% 2.5% 2.1% 1.7% 0.9%
14.0%-15.99% 2.9% 2.4% 1.3% 1.0% 0.7%
16.0% + 8.1% 7.4% 3.0% 2.3% 1.8%
-------------- -------------- -------------- -------------- --------------
Total 100.0% 100.0% 100.0% 100.0% 100.0%
Share of Original Assets:
% Non-Toyota, Non-Lexus 7.7% 7.2% 6.1% 4.8% 4.9%
% 72+ Month term 0.4% 7.7% 20.6% 15.1% 9.8%
% Used 24.2% 23.4% 25.4% 29.5% 30.6%
(1) Percentages may not add to 100% due to rounding
* Abbreviated for presentation purposes. Please refer to the Prospectus
Supplement dated September 21, 2011 for complete data and footnotes
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ORIGINATION CHARACTERISTICS* APR Distribution [GRAPHIC OMITTED] Weighted Average FICO [GRAPHIC OMITTED] Weighted Average Original Term [GRAPHIC OMITTED] New vs. Used [GRAPHIC OMITTED] * Abbreviated for presentation purposes. Please refer to the Prospectus Supplement dated September 21, 2011 for complete data and footnotes |
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ABS DEAL COMPARISON (1)
TOYOTA AUTO OWNERS TRUST (TAOT)
Series 2010 - A 2010 - B 2010 - C 2011- A 2011- B (2)
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Number of Pool Assets 105,045 146,003 104,874 77,857 111,163
Original Pool Balance ($) 1,329,787,698 1,842,107,232 1,344,094,647 1,038,130,389 1,573,816,681
Average Initial Loan Balance ($) 12,659 12,617 12,816 13,334 14,158
Weighted Average Interest Rate 5.82% 5.63% 4.06% 3.57% 2.99%
Weighted Average FICO 748 749 755 755 755
Original Term (months) 62 62 60 60 60
Geographic Concentrations: (Top 5 States)
CA-23.8% CA-21.3% CA-19.5% CA-19.0% CA-18.9%
TX-13.7% TX-12.8% TX-11.5% TX-12.2% TX-12.0%
NY-6.2% PA-5.6% PA-5.9% PA-5.4% PA-4.8%
IL-5.0% NJ-4.6% MD-4.8% IL-4.6% NY-4.6%
NJ-4.8% MD-4.5% IL-4.6% MD-4.5% IL-4.5%
Share of Original Assets:
% Non-Toyota, Non-Lexus 0.0% 0.0% 0.0% 0.0% 0.0%
% 72+ Month term 0.0% 0.0% 0.0% 0.0% 0.0%
% Used 24.3% 24.6% 19.5% 20.3% 23.8%
(1) Abbreviated for presentation purposes. Please refer to our most recent
Prospectus Supplement dated September 21, 2011 for complete data and
footnotes
(2) Data based upon statistical pool
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TAOT DEAL PERFORMANCE
As of October 15, 2011 Payment Date
[GRAPHIC OMITTED]
(1) Moody's cumulative net loss assumption at initial transaction rating. On
September 15, 2011, Moody's announced that it had decreased the transaction
CNL assumptions to 0.45% -0.70% for 2010-A and 2010-B and 0.35% -0.60% for
2010-C.
Source: Company reports
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TMCC FUNDING PROGRAMS |
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EXCEPTIONAL LIQUIDITY
[] A-1+/P-1 Direct Commercial Paper Program
[] Backed by $ 13 billion multi-party back-stop credit facilities: $ 5 billion
364-day; $ 5 billion 3-year; $ 3 billion 5-year
[] $ 9.3 billion Short-term Investment Portfolio (1)
[] Over $ 30 billion in salable retail loan receivables
[] Access to various domestic and international term markets
[] Billions of additional capacity in Global Benchmark Markets
[] Inter-company lending infrastructure
[] Credit Support Agreements: TMCC []TFSC []TMC
(1) Average balance for quarter ended June 30, 2011
Source: TMCC June 30, 2011 10-Q
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TMCC Funding Program Objectives [] TMCC is committed to: -- Maintaining funding diversity and exceptional liquidity -- Issuing into strong demand with attractive deals -- Identifying and developing new markets and investor relationships -- Responding quickly to opportunities with best-in-class execution |
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DIVERSITY IN DEBT OFFERINGS TMCC TERM DEBT OUTSTANDING By Deal Type [GRAPHIC OMITTED] units in USD millions By Currency [GRAPHIC OMITTED] units in USD millions As of September 30, 2011 Source:Company Reports |
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FUNDING FLEXIBILITY Focus on More Diverse Maturities in USD Issuance (1) [GRAPHIC OMITTED] (1) Unsecured U.S. MTN issuance, excluding Structured Notes and Retail Notes. (2) As of October 12, 2011 Source:Company Reports |
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KEY INVESTMENT HIGHLIGHTS
[] Financial strength supported by strong credit ratings
[] Transparent business model with exceptional liquidity
[] Rational funding programs with long term perspective
-- Diversification in bond offerings
-- Focus on proactively meeting needs of market -- Strong emphasis placed on
flexibility and responsiveness
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