Toyota 2005 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2005 Toyota annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

46 >BUSINESS OVERVIEW
FINANCIAL SERVICES OPERATIONS
By offering customers sound, high-quality financial services centered on auto
sales financing, Toyota is facilitating the expansion of its automotive operations.
PERFORMANCE OVERVIEW
Operating income tops ¥200 billion
Consistent with the previous fiscal year, the
performance of financial services operations
continued to improve, with operating income
reaching ¥200 billion. This performance was
due to increased financing volume associated
with higher vehicle sales and enhanced finan-
cial products and quality services as well as
improvement of credit and residual losses on
lease vehicles.
Covering 30 countries and regions, including
Japan, financial services operations center on
Toyota Financial Services Corporation (TFS),
which has overall control of financial services
subsidiaries in Japan and overseas. TFS has con-
structed a global network that covers approxi-
mately 90% of the markets in which Toyota
sells its vehicles. Mainly concentrated on auto
loans and leases, TFS provides auto sales financ-
ing to approximately 5.4 million customers.
Moreover, TFS has outstanding creditwor-
thiness, having received the highest credit rat-
ings of U.S. rating agencies Standard & Poor’s
and Moody’s—AAA and Aaa, respectively.
BUSINESS STRATEGY
Remain focused on auto sales financing
while offering customers comprehensive
support for their lifestyles
While strengthening core auto sales financing
operations, the TFS Group is focusing on offer-
ing a more comprehensive financial services
lineup that can cater to customers’ diverse needs.
Particularly in Japan, TFS offers wide-ranging
financial services that include auto sales financ-
ing, credit cards, retail sales of corporate bonds
and investment trusts, and insurance.
For example, in April 2001 Toyota Finance
Corporation launched a credit card named TS
CUBIC CARD, with the objective of creating a
more accessible and convenient credit card by
undertaking a comprehensive revamping of
services. Those initiatives included strength-
ening the card’s point system in September
2004. TS CUBIC CARD had 4.74 million card-
holders at fiscal year-end. Of those cardholders,
joint ETC (electronic toll collection) card
membership was nearly 1 million, the highest
share in the ETC card industry.
Also, Toyota Financial Services Securities
Corporation is endeavoring to enhance cus-
tomer services by selling such financial products
as Toyota Group bonds and the Toyota Group
Equity Fund (TGEF) for individuals and by
opening six outlets in shopping malls and other
locations.
Financial Services Operations Group
and Ownership Ratios
Toyota Finance
Corporation
Toyota Financial Services
Securities Corporation
Toyota Asset
Management Co., Ltd.
Toyota Financial
Services Corporation
Toyota Motor
Corporation
33.4%
100% 100%
100%
100%50% 50%
Toyota Accounting
Service Co.
Overseas Sales
Finance Companies
Aioi Insurance
Co., Ltd.
Financial Services Operations Integrated under Toyota Group Management
Coverage of Approximately 90%
of Toyota and Lexus Markets
Overview of Toyota’s Financial Services
Operations FY 2005
Total financial services
segment assets ........ ¥9,487.2 billion
Revenues from financial
services operations .... ¥781.2 billion
Operating income...... ¥200.8 billion
Credit ratings ............ AAA/Aaa
Operating areas ........ 30 countries and
regions worldwide
Market coverage ....... approx. 90%
No. of customers ....... approx. 10 million
No. of employees....... approx. 8,000
5,000
2,500
7,500
10,000
’01 ’02 ’03 ’04 ’05
0
FY
Total Assets by Financial
Services Operations
(¥ Billion)