Toyota 2009 Annual Report Download - page 24

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Overview of Toyota’s
Financial Services Operations
¥13.6 trillion
¥1.4 trillion
¥72.0 billion
33 countries and
regions worldwide
approx. 8,000
Total assets
Net revenues
Operating loss
Operating areas
No. of employees
(As of March 31, 2009)
Financial Services Operations Organization
Toyota
Financial Services
Corporation
Toyota Financial
Services Securities
Corporation
Toyota
Asset Management
Co., Ltd.
Overseas
Sales Finance
Companies
Toyota Finance
Corporation
Toyota
Accounting Service
Co.
Toyota Motor
Corporation
100% Aioi Insurance
Co., Ltd.
100% 50% 50%100% 100%
33.42%
In fiscal 2009, there was an operating loss
of ¥72.0 billion in financial services
operations because of the global economic
downturn. The increase in the outstanding
loan balance and improvement in the
lending margin contributed to our
earnings. However, our earnings were
reduced significantly overall due to an
increase in allowance for credit and
residual value losses in our finance services
subsidiaries. In addition, there was an
increase in valuation losses on interest rate
swaps and certain other instruments stated
at fair value in accordance with Statement
of Financial Accounting Standards (FAS)
No. 133 (as amended by FAS No. 138 and
other guidance statements).
Toyota financial services operations are
primarily handled by Toyota Financial
Services Corporation (TFS), which has overall
control of financial services subsidiaries
worldwide. TFS provides financial services
primarily for vehicle purchases and leases to
approximately 7.8 million customers in 33
countries and regions worldwide.
TFS also provides credit cards, home
loans, bonds, investment trusts and other
investment products for individuals,
insurance policies, and other financial
products and services to meet its goal to
provide customers with a full lineup of
financial support, especially in Japan.
Overseas, TFS is rapidly expanding its
financial services operations in emerging
markets such as Russia and China. In the
major markets of Europe and the United
States, TFS aims to further boost earnings
growth amid severe business conditions.
Priorities include support for vehicle sales
while striking the proper balance among
business risks, and working to secure
lending margin and reducing costs.
Overall, in response to the challenges
we face, TFS is working to improve funding,
to rigorously manage credit risks by
tightening loan approval standards and
reviewing collection procedures, and to
take decisive actions to raise profitability,
including fixed expense reductions.
Operations
Financial Services
The central mission of financial services operations at Toyota is offering many forms of assistance for
customers, with particular emphasis on automotive financing.
Financial Services Operations
Business Overview
TOYOTA MOTOR CORPORATION
22