Attached files
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| 8-K - FORM 8-K - TOYOTA MOTOR CREDIT CORP | dp19303.htm |
Presentation to Fixed Income Investors
September 2010
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Disclaimer 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
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TMC Consolidated Financial Results
Three Months
Fiscal Year Ended Ended
March 31, June 30,
(JPY billions) 2009 2010 2010
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Net Revenues 20,529.5 18,950.9 4,871.8
Operating Income (461.0) 147.5 211.7
Net Incom e ( Loss) (437.0) 209.4 190.5
Sources: Toyota Motor Corporation 2010 Year-End Press Meeting and FY 2011 First
Quarter Press Meeting 4
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TFS Group Global Presence
33 Countries andRegions Worldwide
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Toyota Motor Credit Corporation (TMCC)
Organizational Structure
Toyota Motor Corporation (TMC)
Toyota Financial Services Corporation (TFSC)
Toyota Motor Credit Corporation (TMCC)
4.0 million active finance contracts (1)
AA (neg) /Aa2 (neg) rated captive finance company
Credit support agreement structure with TFSC/TMC
(1) As of June 30, 2010
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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
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
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
* Securities defined as outstanding bonds, debentures, notes and other
investment securities and commercial paper.
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TMCC Products and Services
Consumer Dealer Commercial
Finance Finance Finance Insurance
Retail Wholesale Forklift Service Agmts
Lease Real Estate Hino Medium Duty Ext. Warranty
Working Capital Class 8 Heavy Duty Guaranteed Auto
Revolving Credit Retail Protection
Lines Lease Roadside Assistance
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TMCC Financial Performance -Select Data
(USD Millions)
Sources: TMCC March 31, 2010 10-K and June 30, 2010 10-Q 9
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TMCC Earning Asset Composition TMCC Earning Asset Composition
Managed Assets
(USD billions)
Mar-2007 Mar-2008 Mar-2009 Mar-2010 Jun-2010
Lease Retail Sold (ABS) Wholesale and Other
Note: Segments may not sum to total due to rounding
Sources TMCC March 31, 2009 10-K, March 31, 2010 10-K and June 30, 2010 10-Q
64.5
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Extensive Field Organization
Decentralized dealer and field support
Centralized servicing and collections
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TMCC Financial Performance - Select Data
Three Months
Fiscal Year Ended March 31 Ended
June 30
(USD Millions) 2007 2008 2009 2010 2010
Over 60 Days Delinquent (1) 0.46% 0.59% 0.68% 0.44% 0.45%
Allowance for Credit Losses (1) (2) 0.85% 0.97% 2.51% 2.31% 1.74%
Net Credit Losses (3) 0.64% 0.91% 1 .37% 1.03% 0.54%
(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 years 2007, 2008 and 2009 were based
on a 150-day charge-off policy, which was changed to 120 days in fiscal 2010
Sources: TMCC March 31, 2009 10-K, March 31, 2010 10-K and June 30, 2010 10-Q
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Improved Credit Performance
Unemployment Rate vs. TFS Loss Rate
Sources: Company Reports and Federal Reserve Bank of St. Louis
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TMCC Funding Programs
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Exceptional Liquidity Exceptional Liquidity
A-1+ / P-1 Direct Commercial Paper Program
Access to various domestic and international term markets
Billions of additional capacity in Global Benchmark Markets
Over USD 35 billion in salable retail loan receivables
USD 3.6 billion Short-term Investment Portfolio*
Backed by USD 13 billion multi-party back-stop credit facilities (USD 5
billion 364-day; USD 8 billion 5-year)
Inter-company lending infrastructure
Credit Support Agreements: TMCC - TFSC - TMC
* Average balance for three months ended June 30, 2010
Source: TMCC June 30, 2010 10-Q
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TMCC Funding Program Objectives 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
Term Debt Outstanding
By Deal Type By Currency
units in USD millions units in USD millions
As of June 30, 2010
Source: Company Reports
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Funding Flexibility
Focus on More Diverse Maturities in USD Issuance(1)
FY '08 FY '09 FY '10 FYTD 11(2)
(1) Unsecured U.S. MTN issuance, excluding Structured Notes and Retail Notes.
(2) As of August 31, 2010
Source: Company Reports
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Key Investment Highlights 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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