Annual Report 2009 - Toyota Financial Services

Annual Report 2009The 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)Toyota Leasing 65,402,403 14.95%212 16.42%83,400,274 13.44%Toyota Equipment 0 0.00%0 0.00%0 0.00%Toyota Kredit 242,321,657 55.38%732 56.70% 387,270,234 62.41%Toyota Vario 3,448,236 0.79%9 0.70%5,157,240 0.83%Toyota Genio 69,614,616 15.91%243 18.82%87,581,625 14.11%Toyota Rent/Rent Plus 55,494,411 12.68%92 7.13%55,693,441 8.97%Toyota 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 2009, we see some interesting facts:❍ Toyota 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 Toyota Leasing has maintained its position, due to the above facts (a comparison between2009/2008: 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, Toyota Kredit, not only in terms of the number of contracts(comparison 2009/2008: 56.70% / 26%, respectively), but also in terms of the parameters of the value financed and theacquisition cost.❍ Toyota 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 2009/2008: 19% / 27% respectively by number of contracts). This situation ispartly due to several successful campaigns and the fact that the entire Toyota 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 Toyota Rent and the new Toyota Rent Plus products (comparison 2009/2008: 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 2009, there was a significantincrease in the share of new customers (the share of customers outside TMCZ in 2009/2008 was 46% / 35%, respectively).❍ Since its deployment within our portfolio, the Toyota 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 Toyota 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 Toyota Material Handling Česká Republika a.s. (privatedistributor) as the exclusive importer of Toyota forklift trucks in the Czech Republic, and the company BT Česká republika s.r.o(a company belonging to the Toyota Group) as the exclusive importer of the BT handling equipment in the Czech Republic.15