<strong>Toyota</strong> <strong>Financial</strong> <strong>Services</strong> Czech s.r.o.❍ financing of 100% of the vehicle cost,❍ contract term is 12 – 84 months,❍ machinery insurance is fixed and is part of instalmentsthroughout the whole lease term, with a maximumdeductible of CZK 10,000,❍ third party insurance (a limit of CZK 50 million/CZK 50million) is fixed and it is part of regular rental payments,❍ the rental cost includes the provision of normal servicesassociated with the operation of the vehicle and isproportional to the number of hours in operation,❍ in excess of normal services, it is possible to arrange alsofor a change of tyres and the fork of the vehicle.❍ certainty of guaranteed and high-quality services,❍ special approach towards claims adjustment,❍ alternate car for free for a period of 5 days in the case of cardamage due to the insured event,❍ first-class road assistance services both in the CzechRepublic and abroad,❍ a wide range of supplementary insurance,❍ insurance directly upon the purchase of a vehicle from theauthorized dealer of the <strong>Toyota</strong>/Lexus brand with specialinsurance premium rates,❍ bonuses for claims-free record for years that you had noaccidents.<strong>Toyota</strong> PojištěníThe first brand insurance product on the Czech market,offered since the 1st quarter of 2008, is intended forcustomers buying <strong>Toyota</strong> and Lexus cars for cash or viaanother financial institution offered through the network of<strong>Toyota</strong> and Lexus dealers, web interface (portal) or directly via<strong>Toyota</strong> <strong>Financial</strong> <strong>Services</strong> Czech. The basic offer includes:❍ motor vehicle liability insurance (hereinafter referred to as“liability insurance“),❍ basic motor hull casco insurance (crash, theft, elementaryloss, vandalism),❍ supplementary motor hull casco insurance (plate glassinsurance, luggage insurance, alternate car insurance, roadassistance insurance and personal accident insurance).As part of this product the customer acquires in particular:❍ first brand insurance product on the Czech market offeredby our Company and the renowned Allianz pojišťovna, a.s.(insurance company),<strong>Toyota</strong> Direct<strong>Toyota</strong> Direct is a new name of the product line, which isfocused on any user of <strong>Toyota</strong> and Lexus cars. Currently, it isfocused in particular on those customers, who have properlyterminated their credit or lease contracts with <strong>Toyota</strong> <strong>Financial</strong><strong>Services</strong> Czech s.r.o. for a vehicle which they retain or onowners of <strong>Toyota</strong> and Lexus cars, who in the past have notpurchased those cars through brand financial services or arenot even considering them. Due to the fact that <strong>Toyota</strong> Directis based on customer expectations, we also anticipate theongoing change and extension of this product, with respect towhich at present it is possible to arrange for the following:❍ complete motor hull casco insurance in collaborationwith Allianz pojišťovna a.s., together with supplementaryinsurance (insurance of the windscreen, an alternate car,luggage insurance, accident insurance for passengers) –we guarantee the provision of best rates on the market,❍ motor vehicle liability insurance in cooperation with Allianzpojišťovna a.s.14
<strong>Annual</strong> <strong>Report</strong> <strong>2009</strong>The proportion of individual products (related to handed over contracts in the financial year) is clear from Table 1.“Financed value” represents the amount of funds lent to customers. “Number of contracts” shows the number of units(financed assets) which were financed in a given financial year. The column “Cost (exclusive of VAT)” represents the total costof individual assets at the time of their acquisition again split into individual products.Table 1 – Contracts handed over in the financial year 2008 (CZK)Product Financed value ShareNumber ShareCost (exclusive Shareof contractsof VAT)<strong>Toyota</strong> Leasing 65,402,403 14.95%212 16.42%83,400,274 13.44%<strong>Toyota</strong> Equipment 0 0.00%0 0.00%0 0.00%<strong>Toyota</strong> Kredit 242,321,657 55.38%732 56.70% 387,270,234 62.41%<strong>Toyota</strong> Vario 3,448,236 0.79%9 0.70%5,157,240 0.83%<strong>Toyota</strong> Genio 69,614,616 15.91%243 18.82%87,581,625 14.11%<strong>Toyota</strong> Rent/Rent Plus 55,494,411 12.68%92 7.13%55,693,441 8.97%<strong>Toyota</strong> Forklift Leasing/Kredit 1,258,017 0.29%3 0.23%1,458,906 0.24%Total 437,539,340 100.00%1,291 100.00%620,561,720 100.00%In this fiscal year, the trend of previous years was confirmed which consisted in a gradual weakening of the previously dominantposition of financial lease for the benefit of loan products. The above situation was influenced mainly by the impacts of theamendments of the Income Tax Act and of the Value Added Tax Act at the end of 2007, which adversely affected the overall approachto funding, in particular that of the business entities. The increase in popularity of credit products is certainly also due to banks whichbrought many products closer to the public. Customers appreciate loan products due to their availability, flexibility and simplicity.Looking back at the financial year <strong>2009</strong>, we see some interesting facts:❍ <strong>Toyota</strong> and Lexus authorised dealers state that during the calendar year 2008, their share of customers paying cash significantlyincreased. The original 60/40 ratio in favour of financing through dealership, which we saw in the recent years, changed in theabove period to 31/69 in favour of cash. There are no official statistics; however, the information received from the market andfrom independent research confirms that a similar trend has been recorded also for the other companies focused on vehiclefinancing.❍ Finance lease with full amortization <strong>Toyota</strong> Leasing has maintained its position, due to the above facts (a comparison between<strong>2009</strong>/2008: 14.95% / 26.63% according to the value financed (see Figure 2), respectively. 13.44% / 28.27% in terms ofacquisition prices and 16.42% / 31.37% in terms of number of contracts, respectively). This confirms the prospect that loanproducts and products based on operating leases are going to strengthen in the coming years.❍ There was an annual increase in our most popular loan product, <strong>Toyota</strong> Kredit, not only in terms of the number of contracts(comparison <strong>2009</strong>/2008: 56.70% / 26%, respectively), but also in terms of the parameters of the value financed and theacquisition cost.❍ <strong>Toyota</strong> Genio reaffirmed the high demand for a similar type of products, even though in the year-on-year terms, the share of theproduct in the portfolio decreased (comparison <strong>2009</strong>/2008: 19% / 27% respectively by number of contracts). This situation ispartly due to several successful campaigns and the fact that the entire <strong>Toyota</strong> model range was included in this product.❍ There was a slightly increased year-on-year share of the operating leases, which were represented in the product portfolio bythe <strong>Toyota</strong> Rent and the new <strong>Toyota</strong> Rent Plus products (comparison <strong>2009</strong>/2008: a ratio of 7.13% / 5.96%, respectively), andthere was also an increase in contracts with direct customers - in the previous years, the key lessee in the operating lease wasour associate company TOYOTA MOTOR CZECH spol. s r.o. (TMCZ); however, in the fiscal year <strong>2009</strong>, there was a significantincrease in the share of new customers (the share of customers outside TMCZ in <strong>2009</strong>/2008 was 46% / 35%, respectively).❍ Since its deployment within our portfolio, the <strong>Toyota</strong> Vario product has a problem with the insufficient willingness of thevendors to pay more attention to it. Although even a minimal effort can bring recurring business and the potential of highqualityused vehicles as another potential profit centre for dealers. However, we are going to keep the product in our offer,assuming it will become more popular with the further development of the market.❍ The statistics also include a <strong>Toyota</strong> Equipment Rent range, which enables the financing of authorized partners on the basis ofshowroom equipment and was represented in the last year solely by financing of dealer marks. As this option includes financingof “tailored“ products, the distributor (TMCZ), is committed to repurchase the merchandise.There was stagnation in the products intended for the financing of handling equipment. The main reason was the fact that in2008, there were significant changes in the structure of the companies <strong>Toyota</strong> Material Handling Česká Republika a.s. (privatedistributor) as the exclusive importer of <strong>Toyota</strong> forklift trucks in the Czech Republic, and the company BT Česká republika s.r.o(a company belonging to the <strong>Toyota</strong> Group) as the exclusive importer of the BT handling equipment in the Czech Republic.15
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