UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 25, 2016
TOYOTA MOTOR CREDIT CORPORATION
(Exact name of registrant as specified in its charter)
California
1-9961
95-3775816
(State or other jurisdiction of
incorporation)
(Commission
File Number)
(IRS Employer Identification No.)
19001 S. Western Avenue
Torrance, California
90501
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(310) 468-1310
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
Toyota Motor Credit Corporation has prepared materials for investors and other business information. The materials are
furnished (not filed) as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K pursuant to Regulation FD.
Item 9.01 Financial Statements and Exhibits.
99.1
99.2
Investor presentation of Toyota Motor Credit Corporation (furnished pursuant to Regulation FD)
Toyota Business Highlights (furnished pursuant to Regulation FD)
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
TOYOTA MOTOR CREDIT CORPORATION
Date: February 25, 2016
By: /s/ Katherine Adkins
Katherine Adkins
Secretary
3
Exhibit Index
99.1
99.2
Investor presentation of Toyota Motor Credit Corporation (furnished pursuant to Regulation FD)
Toyota Business Highlights (furnished pursuant to Regulation FD)
4
Exhibit 99.1
Presentation Materials for Investors
February 2016
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.
•
Investors and others should note that we announce material financial information using the investor
relations section of our corporate website (http://www.toyotafinancial.com) and SEC filings. We
use these channels, press releases, as well as social media to communicate with our investors,
customers and the general public about our company, our services and other issues. While not all of
the information that we post on social media is of a material nature, some information could be
material. Therefore, we encourage investors, the media, and others interested in our company to
review the information we post on the Toyota Motor Credit Corporation Twitter Feed
(http://www.twitter.com/toyotafinancial). We may update our social media channels from time to
time on the investor relations section of our corporate website.
2
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 or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or
subscribe for securities of TMCC 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. Any offer or sale of securities by TMCC will be made only by means of a prospectus and related documentation.
•
Investors and prospective investors in securities of TMCC are required to make their own independent investigation and appraisal of the business and
financial condition of TMCC and the nature of its securities. This presentation does not constitute a recommendation regarding securities of TMCC.
Any prospective purchaser of securities in TMCC is recommended to seek its own independent financial advice.
•
This presentation is made to and directed only at (i) persons outside the United Kingdom, or (ii) qualified investors or investment professionals falling
within Article 19(5) and Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), or
(iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order, and (iv)
persons who are “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) as amended (such
persons collectively being referred to as “Relevant Persons”). This presentation must not be acted or relied on by persons who are not Relevant
Persons. Any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with
Relevant Persons.
•
This presentation is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities of TMCC referred to in
this presentation or otherwise except on the basis of information in the base prospectus of Toyota Motor Finance (Netherlands) B.V., Toyota Credit
Canada Inc., Toyota Finance Australia Limited and Toyota Motor Credit Corporation dated 11 September 2015 as supplemented from time to time
together with the applicable final terms which are or will be, as applicable, available on the website of the London Stock Exchange plc at
www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
•
Investors and others should note that we announce material financial information using the investor relations section of our corporate website
(http://www.toyotafinancial.com) and SEC filings. We use these channels, press releases, as well as social media to communicate with our investors,
customers and the general public about our company, our services and other issues. While not all of the information that we post on social media is of a
material nature, some information could be material. Therefore, we encourage investors, the media, and others interested in our company to review
the information we post on the Toyota Motor Credit Corporation Twitter Feed (http://www.twitter.com/toyotafinancial). We may update our social
media channels from time to time on the investor relations section of our corporate website.
3
Toyota’s Global Businesses
Markets vehicles in over
170 countries/regions.
70 Manufacturing facilities in
27 countries/regions.
OTHER
BUSINESSES
AUTOMOTIVE
Design, Manufacturing, Distribution
Consumer Financing
Housing
Dealer Support & Financing
Marine
Banking
Securities Services
Ancillary Products & Services
Telecommunications
E-Business
Intelligent Transport Services
Biotechnology & Afforestation
4
TMC Consolidated Financial Results
(JPY billions)
Net Revenues
Operating Income
Net Income
Source: TMC FY2014, FY2015 20-F, December 31, 2015 6-K
Fiscal Year Ended March 31,
2014
2015
25,691.9
27,234.5
2,292.1
2,750.6
1,823.1
2,173.3
Nine Months Ended
December 31,
2015
21,431.4
2,305.7
1,886.1
5
TMC Consolidated Balance Sheet
(JPY billions)
Current assets
Noncurrent finance receivables, net
Investment & other assets
Property, plant & equipment, net
Total Assets
Liabilities
Mezzanine equity
Shareholders' equity
Total Liabilities, Mezzanine Equity &
Shareholders' Equity
Source: TMC FY2014, FY2015 20-F, December 31, 2015 6-K
FY2014
As of March 31, 2014
15,717.7
8,102.3
9,976.2
7,641.3
41,437.5
FY2015
As of March 31, 2015
17,936.4
9,202.5
11,295.2
9,295.7
47,729.8
FY2016
As of December 31, 2015
18,179.5
9,160.2
11,734.0
9,849.3
48,923.0
26,218.5
30,082.5
15,219.0
17,647.3
30,297.1
478.0
18,147.9
41,437.5
47,729.8
48,923.0
6
Toyota Across the United States
Operations Overview
7
Toyota Motor Sales, USA
•
TMS sold 2.50 million vehicles in 2015; the highest sales volume since 2007 and up 5.3% from 2014
– Camry was the best-selling passenger car in America for the 14th consecutive year
•
Industry-leading investment in next-generation technologies in power-train, safety and production
– TMS has one of the most fuel-efficient line-ups of any full-line OEM
– Over 2.7 million hybrids sold in the US(1) and over 8.3 million worldwide(2)
– 13 hybrid models(3) and 1 plug-in model across the TMS line-up
– Mirai is Toyota’s first mass-produced hydrogen fuel cell vehicle
– Toyota Research Institute announced with R&D focus on artificial intelligence and robotics
•
For 2016, TMS will launch 8 new or refreshed models. Recent and upcoming vehicle launches:
- RAV4
- Avalon
(1) As of November 2015
(2) As of October 2015
(3) Includes cars and light trucks
Source: TMS Reports
- Prius
- Tacoma
- Lexus ES
- Lexus GS
- Lexus RX
- Lexus LX
8
Toyota Motor Sales, USA
(2)
• Quality, dependability, safety and product appeal remain high as reflected
by numerous 3rd party accolades
2016 Kelley Blue Book
Best Resale Value for Luxury Brand
Lexus (5th year running)
2016 NAIAS EyesOn Design Award
The Lexus LC 500 captured design awards
for Interior Design and Production Car
2016 U.S. News
Best Cars for the Money
Camry, Prius, RAV4 Hybrid & Lexus NX
2015 Forbes
Toyota ranked No. 1 most valuable
automotive brand
2016 IIHS
Top Safety Pick+ Awards
Nine Toyota, Lexus & Scion models took the
highest award, the most of any manufacturer.
2015 Fortune Magazine
Change the World List
Mirai ranked 3rd for its contribution in
addressing major social problems
2015 Kelley Blue Book
10 Best Green Cars
Toyota Prius and Camry Hybrid
2015 NHTSA 5-Star
Crash Test Rating
RAV4, Scion FR-S and tC
2015 J.D. Power and Associates
Customer Service Index
Lexus ranked 2nd overall
2015 Fast Company
Toyota ranked among World’s 50 Most
Innovative Companies
2015 Newsweek
Toyota ranked No. 2 among automakers as
one of the world’s greenest companies
2015 Consumer Reports Greatest Likelihood
of Turning Over 200K Miles
Toyota Prius, Camry, Corolla, Sienna, and
Highlander
9
Toyota Motor Sales, USA
Toyota Prius
(3)
Toyota Tacoma TRD Pro
10
Toyota Motor Sales, USA
Lexus IS
(4)
Lexus LC 500
11
Toyota Motor Sales, USA
RAV4 Hybrid
(5)
Toyota C-HR Concept
12
Toyota Financial Services
13
TFS Group Global Presence
14
Toyota Motor Credit Corporation (TMCC)
Toyota Motor Corporation (TMC)
Toyota Financial Services Corporation (TFSC)
Toyota Motor Credit Corporation (TMCC)
• Over 4.5 million active finance contracts(1)
• AA-(2)/Aa3(2) rated captive finance company by S&P/Moody’s
• Credit support agreement structure with TFSC/TMC(3)
(1) As of December 2015
(2) Outlook stable
(3) The Credit Support Agreements do not apply to securitization transactions
15
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 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.
16
TMCC Products and Services
Consumer Finance
• Retail
• Lease
Dealer Finance
•
•
•
•
Wholesale
Real Estate
Working Capital
Revolving Credit Lines
Insurance
•
•
•
•
•
Service Agreements
Prepaid Maintenance
Guaranteed Auto Protection
Excess Wear & Use
Tire & Wheel
17
Extensive Field Organization
• Decentralized dealer and field support
• Centralized servicing and collections (circled)
18
Recent TMCC Business Highlights
• In excess of $10.8 billion pre-tax income over the past 5 years(1)
• TFS is the top U.S. auto lender for new vehicles(2)
• Strong market share continues to drive solid financing revenues
and sales support
• Low net charge-off ratio driven by prudent underwriting standards
and proactive servicing practices
• High insurance penetration and growing insurance volume
(1) For the five year period from FY11 through FY15; $3.003mm + $2.423mm + $2.155mm + $1.354mm + $1.926 = $10,861mm
(2) Source: AutoCount as of December 2015
19
TMCC Earning Asset Composition
Managed Assets
(USD billions)
$96.9
$90.0
15.6
$83.0
$76.8
15.8
14.9
12.7
12.7
$101.1
15.0
16.4
9.7
8.0
10.5
34.6
20.2
Mar-12
Mar-13
Lease
37.1
30.2
32.6
Mar-15
Dec-15
39.6
39.9
19.0
38.4
24.9
Mar-14
Retail
Sold (ABS)
Wholesale & Other
Source: TMCC March 31, 2012 10-K, March 31, 2013 10-K , March 31, 2014 10-K , March 31, 2015 10-K & December 31, 2015 10-Q
20
TMCC Financial Performance - Select Data
Nine Months Ended
December 31,
Fiscal Year Ended March 31,
(USD millions)
2012
2013
2014
2015
2015
Total Financing Revenues
7,429
7,244
7,397
8,310
6,984
717
744
702
832
849
4,639
4,508
5,352
5,593
5,297
Net Financing Revenues
and Other Revenues
3,507
3,480
2,747
3,549
2,536
Net Income
1,486
1,331
857
1,197
742
add: Other Income
less: Interest Expense
and Depreciation
Source: TMCC March 31, 2015 10-K & TMCC December 31, 2015 10-Q
21
TMCC Financial Performance - Select Data
Fiscal Year Ended March 31,
Nine Months Ended
December 31,
(USD millions)
2012
2013
2014
2015
2015
Over 60 Days Delinquent (1)
0.18%
0.19%
0.18%
0.21%
0.35%
Allowance for Credit Losses (1) (2)
0.80%
0.63%
0.50%
0.50%
0.48%
Net Credit Losses (3)
0.21%
0.27%
0.28%
0.29%
0.36%
(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 were based on a 120-day charge-off policy
Source: TMCC March 31, 2015 10-K & TMCC December 31, 2015 10-Q
22
TMCC Funding Programs
23
Exceptional Liquidity
• A-1+/P-1 rated direct commercial paper program
• $20.6 billion committed credit facilities
(1)
• $10.8 billion short-term liquidity investment portfolio
(2)
• Over $60 billion in readily salable consumer retail loan & lease assets
• Access to various domestic and international capital markets
• Billions of additional capacity in global benchmark markets
• Extensive inter-company lending infrastructure
• Credit support agreements: TMCC TFSC  TMC
(1) As of December 31, 2015
(2) Average balance for quarter ended December 31, 2015
Source: TMCC December 31, 2015 10-Q
24
TMCC Funding Program Objectives
• TMCC is committed to:
– Maintaining funding diversity and exceptional liquidity
– Issuing into strong demand with attractive deals
– Identifying & developing new markets and investor relationships
– Responding quickly to opportunities with best-in-class execution
– Managing our business and stakeholder relationships with a long-term view
25
New Funding Vehicles
• Auto industry’s first ever Green Bond ABS
• Diversity and Inclusion (D&I) bond syndicates led by diversity firms
• Competitive, innovative and socially responsible
26
TMCC FYTD16 Funding Overview
$20.55 billion of long term debt funded FYTD
Other
5%
MTN
29%
Public/Private
ABS
39%
Global MTN
11%
EMTN
16%
• $12.49 billion in unsecured debt
• $8.06 billion in secured debt (net of amount retained)
– $1.86 billion comprised of public term secured funding (net of amount retained)
As of January 31, 2016
Source: Company Reports
27
Diversification in Debt Offerings
TMCC Long Term Debt Outstanding (USD millions)
By Currency
By Deal Type
AUD
2,286
EMTN/Eurobonds
$14,842
Global MTN
$22,200
JPY GBP Other
1,408 879 1,021
EUR
10,370
Other
$8,432
Public/Private ABS
$13,414
As of January 31, 2016
Source: Company Reports
MTN
$9,797
USD
52,722
28
Funding Flexibility And Responsiveness
Diversification Across USD Curve (1)
100%
6%
24%
13%
16%
26%
24%
27%
80%
21%
20%
14%
60%
36%
11%
19%
12%
3%
7%
28%
4%
9%
2%
17%
20%
7%
12%
7%
40%
7%
45%
39%
37%
63%
27%
15%
0%
FY 11
FY 12
1yr
FY 13
18mth
2yr
(1) Unsecured U.S. MTN issuance, excluding Structured Notes and Retail Notes
Percentages may not add to 100% due to rounding
As of January 31, 2016
Source: Company Reports
3yr
FY14
5yr
7yr
FY'15
FYTD'16
10yr
29
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
• Industry-leading in:
– Liquidity management framework
– Balance sheet strength
– Business model resiliency
30
TMCC Retail Loan Collateral &
ABS Transactions
31
Credit Decisioning & Collections
•
•
Consistent and conservative underwriting standards have produced low levels of
delinquencies and credit losses
– Focus on prime origination
– Ongoing focus on Toyota and Lexus business
Optimization of collections strategy and staff supports loss mitigation while enabling
portfolio growth
– Emphasis on early intervention
– Reinforcement of strong compliance management system
Delinquency (1)
3.0%
Credit loss (2)
2.0%
1.0%
0.0%
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FYTD2016 (3)
(1) Delinquency is 30+ day delinquencies as a percentage of retail receivables outstanding
(2) Credit loss is annual net credit loss as a percentage of retail receivables outstanding
(3) As of December 31, 2015
32
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
2007
4.00%
2008
2009
2010
2011
2012
2013
2014
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
0
4
8
* Abbreviated for presentation purposes
Source: Company Reports
12
16
20
24
28
32
36
Months
40
44
48
52
56
60
64
68
72
33
Managed Portfolio Performance
TMCC Retail Loan Delinquency Experience (1)
At December 31,
2015
2014
2015
2014
At March 31,
2013
2012
2011
3,204,795
3,237,607
3,209,872
3,220,641
3,156,247
3,119,781
3,189,591
Number of Accounts Past Due
in the following categories
30 - 59 days
60 - 89 days
Over 89 days
46,257
10,945
10,278
45,369
9,905
6,894
31,130
6,569
5,616
32,920
6,660
5,799
35,672
7,182
6,362
35,162
6,786
5,870
43,070
8,588
9,153
Delinquencies as a Percentage
of Contracts Outstanding (3)
30 - 59 days
60 - 89 days
Over 89 days
1.44%
0.34%
0.32%
1.40%
0.31%
0.21%
0.97%
0.20%
0.17%
1.02%
0.21%
0.18%
1.13%
0.23%
0.20%
1.13%
0.22%
0.19%
1.35%
0.27%
0.29%
Outstanding Contracts (2)
(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
34
Performance – Retail Loan
TMCC Managed Portfolio Net Loss and Repossession Experience (dollars in thousands) (1)
For the Nine Months Ended
December 31,
2015
Principal Balance Outstanding (2)
Average Principal Balance Outstanding (3)
Number of Contracts Outstanding
Average Number of
Contracts Outstanding (3)
Number of Repossessions (4)
Number of Repossessions as a Percent of
the Average Number of Contracts Outstanding
Gross Charge-Offs (5)
Recoveries (6)
Net Losses
Net Losses as a Percentage of Average
Principal Balance Outstanding
$50,570,615
$50,107,985
3,204,795
3,207,334
26,259
2014
$50,007,576
$49,384,370
3,237,607
3,229,124
25,870
For the Fiscal Year Ended
2015
$49,645,354
$49,203,259
3,209,872
3,215,257
34,780
2014
2013
2012
$48,761,164
$47,846,942
3,220,641
$46,932,720
$45,790,370
3,156,247
$44,648,020
$44,850,661
3,119,781
3,188,444
34,923
3,138,014
34,353
3,154,686
42,937
2011
$45,053,303
$44,144,021
3,189,591
3,141,743
64,710
1.09% (7)
$232,390
$36,296
$196,094
1.07% (7)
$212,401
$45,135
$167,266
1.08%
$267,835
$59,931
$207,904
1.10%
$257,586
$62,714
$194,872
1.09%
$244,432
$69,088
$175,344
1.36%
$240,736
$78,593
$162,143
2.06%
$447,159
$98,105
$349,054
0.52% (7)
0.45% (7)
0.42%
0.41%
0.38%
0.36%
0.79%
(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. Actuarial contracts do not comprise any of the
Receivables.
(3) Average of the principal balance or number of contracts outstanding as of the beginning and end of the indicated periods.
(4) Includes bankruptcy-related 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) Annualized.
Source: Company Reports
35
Origination Profile
TMCC Retail Auto Loan Originations
Original Sum m ary Characteristics
by Vintage Origination Year:
Number of Pool Assets
Original Pool Balance
Average Initial Loan Balance
Weighted Average Interest Rate
Weighted Average Original Term
Weighted Average FICO
Minimum FICO
Maximum FICO
Geographic Distribution of Receivables representing the 5
states with the greatest aggregate original principal balance:
State 1
State 2
State 3
State 4
State 5
2011
2012
2013
2014
2015 (1)
911,545
$21,608,462,287
$23,705
3.76%
63 Months
735
396
886
973,979
$24,029,119,369
$24,671
3.15%
63 Months
731
371
886
1,008,958
$25,332,328,542
$25,107
2.94%
63 Months
727
388
886
951,133
$24,516,581,298
$25,776
3.07%
64 Months
726
381
887
713,619
$18,634,000,498
$26,112
3.33%
65 Months
720
381
887
CA - 18.9%
TX - 12.6%
NY - 5.4%
NJ - 4.9%
IL - 4.1%
CA - 19.3%
TX - 14.1%
NY - 5.1%
NJ - 4.5%
VA - 4.2%
CA - 21.4%
TX - 13.3%
NY - 4.6%
NJ - 4.4%
IL - 3.9%
CA - 21.0%
TX - 14.0%
NY - 4.7%
NJ - 4.0%
IL - 4.2%
CA - 21.20%
TX - 15.86%
NY - 4.94%
NJ - 3.83%
IL - 3.83%
30.3%
35.9%
17.5%
8.5%
3.2%
1.6%
0.7%
0.6%
1.7%
100.00%
44.1%
27.8%
15.1%
6.6%
2.7%
1.4%
0.5%
0.5%
1.4%
100.00%
51.2%
20.2%
14.0%
6.7%
3.2%
1.5%
0.6%
0.6%
2.0%
100.00%
50.8%
19.4%
13.5%
7.7%
3.6%
1.7%
0.7%
0.6%
1.9%
100.00%
46.0%
20.2%
14.1%
8.7%
4.9%
2.7%
1.4%
0.9%
1.1%
100.00%
4.4%
10.5%
31.5%
3.3%
10.0%
24.4%
3.3%
10.6%
24.5%
3.8%
11.1%
23.7%
4.0%
13.3%
24.6%
(2)
Distribution of Receivables by Contract Rate:
Less than 2.0%
2.0% - 3.99%
4.0% - 5.99%
6.0% - 7.99%
8.0% - 9.99%
10.0% - 11.99%
12.0% - 13.99%
14.0% - 15.99%
16.0% and greater
Total
Share of Original Assets:
Percentage of Non-Toyota/Non-Lexus
Percentage of 72+ Month Term
Percentage of Used Vehicles
(1)
As of September 30, 2015
(2) Percentages may not add to 100.0%
Source: Company Reports
due to rounding
36
Origination Characteristics
APR Distribution
Weighted Average FICO
100%
740
80%
720
700
60%
680
40%
660
20%
640
620
0%
CY2011
2012
<2.0%
2013
2.0%-3.99%
2014
2015*
CY2011
2012
2013
2014
2015*
Weighted Average FICO
>= 4.0%
Weighted Average Original Term
New vs. Used
72
100%
66
80%
60%
60
40%
54
20%
48
CY2011
2012
2013
2014
Weighted Average Original Term
*As of September 30, 2015
Source: Company Reports
2015*
0%
CY2011
2012
New
2013
Used
2014
2015*
37
ABS Deal Comparison
(*)
Toyota Auto Owner Trust (TAOT)
* Abbreviated for presentation purposes
(1) Percentages may not add to 100.00% due to rounding
Source: Company Reports
38
TAOT Deal Performance
0.45%
Cumulative Net Losses
TAOT 2010-A
TAOT 2010-B
Payment as of January 15, 2016
TAOT 2010-C
0.40%
TAOT 2011-A
TAOT 2011-B
0.35%
TAOT 2012-A
TAOT 2012-B
TAOT 2013-A
0.30%
TAOT 2013-B
TAOT 2014-A
0.25%
TAOT 2014-B
TAOT 2014-C
TAOT 2015-A
0.20%
TAOT 2015-B
TAOT 2015-C
0.15%
0.10%
0.05%
0.00%
1
Source: Company Reports
5
9
13
17
21
25
29
33
37
41
39
Sales & Trading Update
40
Commercial Paper Programs Highlights
•
A-1+/P-1 Direct Commercial Paper Programs
–
3 distinct USD commercial paper programs (TMCC, TCPR, TCCI)
–
$15.0 billion multi-party committed credit facilities
–
$5.6 billion bilateral committed credit facilities
–
$27.2 billion USCP combined average outstanding for TMCC and TCPR
–
Over 600 diverse institutional investors
–
•
State and local municipalities
•
Large corporations
•
Pension and retirement funds
•
Financial institutions
•
Money managers and mutual fund companies
Rates are posted daily on Bloomberg DOCP screen
Source: TMCC December 31, 2015 10-Q
41
Toyota Business Highlights 3QFY2016
Exhibit 99.2
TOYOTA MOTOR SALES (TMS), U.S.A. INC.
MONTHLY RESULTS
20
300
18
250
16
•
•
TMS January 2016 sales totaled 161,283 units, a
decrease of 4.7% from January 2015 volume,
but up 3.3% on a daily selling rate (DSR) basis.
Lexus
100
10
North American production for January 2016
totaled 116,870 units, a volume decrease of
3.9% from January 2015.
Toyota Division
150
12
Lexus reported January 2016 sales of 20,933
units, a 9.5% decrease from January 2015 on
volume, and down 2.0% on a daily selling rate
(DSR) basis
Toyota Motor Sales, U.S.A. Inc.
January 2016 unit sales
200
14
8
50
6
0
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
•
Source: Toyota, Bloomberg, Ward’s Automotive Group.
Toyota Division represents Toyota and Scion vehicle sales. Scion sales for January 2016 totaled 5,099
units, up 38.2% from January 2015 Scion volume. TMS monthly results include fleet sales volume.
Toyota U.S. January 2016 unit sales Toyota Division Top 5 makes
Jan-16
20,933
Toyota U.S. January 2016 unit sales Lexus Division Top 5 makes
Jan-16
Jan-15
140,350
Toyota U.S. light vehicle sales
(units in thousands)
The U.S. automobile SAAR figure for January
2016 came in at 17.46M units, up from 16.63M
units in January 2015.
Seasonally adjusted annual rate
(units in millions)
•
U.S. light vehicle seasonally adjusted annual rate (SAAR) and
Toyota Motor Sales (TMS), U.S.A. Inc. sales
Jan 2011 - Jan 2016
Jan-15
Camry
Jan-15
26,763
Jan-16
26,848
RX
Jan-15
6,569
Jan-16
6,956
Corolla
27,357
22,362
ES
4,080
3,400
Prius
12,244
9,311
IS
3,375
2,178
RAV4
19,824
21,554
GS
1,679
1,298
Tacoma
11,409
12,717
GX
1,803
1,608
TOYOTA MOTOR CORPORATION (TMC) FINANCIAL RESULTS
TMC consolidated financial performance
Net Revenues
Operating Income (Loss)
Net Income attributable to TMC (Loss)
Yen in millions
Q3 FY2015 Q3 FY2016
¥7,170,017 ¥7,339,882
762,880
722,266
600,027
627,965
TMC Consolidated Balance Sheet
Current Assets
Noncurrent finance receivables, net
Total Investments and other assets
Property, plant and equipment, net
Total Assets
¥17,016,614 ¥18,179,547
9,478,700
9,160,158
11,217,219 11,734,030
9,009,691
9,849,256
¥46,722,224 ¥48,922,991
Liabilities
Mezzanine equity
Shareholders' equity
Total Liabilities and Shareholders' Equity
¥29,594,075 ¥30,297,149
¥477,977
17,128,149 18,147,865
¥46,722,224 ¥48,922,991
Operating Income (Loss) by geographic region
Japan
North America
Europe
Asia
Other‡
Inter-segment elimination and/or unallocated amount
¥424,810
183,755
33,274
107,698
29,341
-15,998
¥392,748
150,750
20,515
134,834
25,028
-1,609
‡ “Other” consists of Central and South America, Oceania, Africa and the Middle East Source: TMC company filings.
Production (units) Q3 FY2015 Q3 FY2016
Japan
993,782 1,010,196
North America
485,986
464,441
Europe
149,551
151,774
Asia
438,890
413,349
Other‡
127,318
105,680
Sales (units)
Japan
North America
Europe
Asia
Other‡
Q3 FY2015 Q3 FY2016
497,933
492,258
712,518
727,591
219,361
210,332
373,895
362,669
458,929
421,927
TOYOTA MOTOR CREDIT CORPORATION (TMCC)
FINANCIAL RESULTS
•
•
•
3Q 2015
TFS - Market Share1
3Q 2015
3Q 2016
3Q 2016
60.2%
3Q 2015
59.8%
The increase in net income for the third quarter of fiscal 2016 was
primarily due to a $264 million increase in total financing
revenues driven by an increase in operating lease revenues and
a $197 million gain on the sale of the commercial finance
business, partially offset by a $255 million increase in
depreciation on operating leases , a $116 million increase in
interest expense , a $25 million increase in the provision for credit
losses and a $25 million increase in provisions for income taxes.
Net charge-offs as a percentage of average gross earning assets
increased from 0.32 percent at December 31, 2014 to 0.36
percent at December 31, 2015 due to increased default
frequency, loss severity and lower recoveries.
Aggregate balances for accounts 60 or more days past due as a
percentage of gross earning assets increased from 0.27% at
December 31,2014 to 0.35% at December 31,2015.
3Q 2016
100%
88.1% 85.6%
80%
63.3% 55.8%
60%
40%
23.9%
20%
20.9%
0%
New retail contracts
Used retail contracts
Lease contracts
TMCC - Vehicle financing volume
3Q 2015
units in thousands
TMCC financial performance
Total financing revenues
Income before income taxes
Net Income
Debt-to-Equity Ratio
U.S. dollars
in millions
3Q 2015
3Q 2016
$2,112
$2,376
492
552
307
342
10.6x
10.3x
TMCC - Percentage of contracts subvened
200
150
3Q 2016
147
153
118
100
67
67
0
New retail contracts Used retail contracts
Lease contracts
TMCC - Consumer credit performance*
0.50%
0.25%
0.00%
1TFS
market share represents the percentage of total domestic TMS sales of new Toyota, Lexus and Scion
vehicles financed by us, excluding sales under dealer rental car and commercial fleet programs and sales of a
private Toyota distributor.
*TMCC consumer portfolio includes TMCC and its consolidated subsidiaries
3Q 2012
3Q 2013
Toyota Motor Credit Corporation (TMCC), Toyota Credit de Puerto Rico Corp.
(TCPR), and Toyota Credit Canada Inc. (TCCI)† maintain direct relationships
with institutional commercial paper investors through its Sales & Trading team,
providing each access to a variety of domestic and global markets through
three, distinct 3(a)(3) programs.
For 3Q2016, TMCC and TCPR commercial paper programs ranged from
approximately $26.2 billion to $29.0 billion, with an average outstanding
balance of $27.2 billion. As of 12/31/2015, TMCC and TCPR commercial
paper programs had a weighted average remaining maturity of 80 days.
†TCCI
3Q 2016
and TMCC are subsidiaries of Toyota Financial Services Corporation, a wholly-owned subsidiary of Toyota Motor Corporation.
‡TMCC consolidated financial liabilities include TMCC and its consolidated subsidiaries, which includes TCPR.
TMCC consolidated financial liabilities
comparison
Amount ($billions)
•
3Q 2015
Aggregate balances for accounts 60 or more days past due as a percentage of
gross earning assets
NORTH AMERICAN SHORT-TERM FUNDING PROGRAMS
•
3Q 2014
Net charge-offs as a percentage of average gross earning assets
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$0
*Figures above do
Secured notes & loans payable
Unsecured notes & loans payable
Commercial Paper
9.3
14.0
51.0
53.8
27.5
26.8
12/31/2014
12/31/2015
not incorporate the Carrying Value Adjustments.
LET’S GO PLACES
•
In 2017, Toyota Financial Services plans to relocate its headquarters to Plano, Texas in order to join Toyota Motor Sales,
U.S.A., Inc.; Toyota Motor Engineering & Manufacturing North America, Inc.; and Toyota Motor North America to
create a single, state-of-the-art Toyota headquarters and pursue the One Toyota vision in North America. Please
reference the Investor Relations section of toyotafinancial.com, for important information and filings.
The Sales & Trading team engages in direct dialogue with institutional investors delivering a variety of fixed income
products to meet our clients’ investment objectives and risk tolerances. We focus on providing simple, personal, and
proactive service in the execution of all trades.
Sales and Trading Contacts
Nicholas Ro | National Manager
(310) 468-7758
[email protected]
Jason Katzen | Region Manager
(310) 468-3509
[email protected]
Jeffrey DeSilva | Funding & Liquidity Analyst
(310) 468-1366
[email protected]
Alec Small | Funding & Liquidity Analyst
(310) 468-7431
[email protected]
Siva Vadlamannati | Funding & Liquidity Analyst
(310) 468-3509
[email protected]
Forward looking statements are subject to risks and uncertainties that could cause actual results to fall short of current expectations. Toyota and its affiliates discuss these risks and uncertainties in filings they make with the Securities and Exchange Commission. This presentation does not
constitute an offer to purchase any securities. Any offer or sale of securities will be made only by means of a prospectus and related documentation.