Annual Report 2009 - Toyota Financial Services

Toyota Financial Services Czech s.r.o.As part of the company activities, the company was monitoring in the fiscal year 2009 for the first time the performance of a newlyintroduced product Toyota Pojištění, i.e. an insurance of Toyota and Lexus customers who purchased a vehicle in cash or throughother lenders. The project was submitted for pilot operation to the network of authorized dealers already in February 2008, but thefirst contracts were actually entered into in March 2008 and in the subsequent months. Four vendors participated in the pilot phaseof the product installation; by the end of the pilot operation in August 2008, they were followed by virtually the entire network ofauthorized vendors. The key elements of the preliminary phase of the launch of the Toyota Pojištění project were as follows:❍ At the beginning of September 2008, the first sales campaign was launched which resulted in a dramatic increase in thenumber of the contracts concluded. The essence of the campaign was a bonus in the form of fuel cards in the amount of annualthird-party risk insurance for Toyota Yaris.❍ In the second phase of the campaign (January 2009), the same system applied also to Toyota Auris, which resulted in a furtherboost after the decline in December (season fluctuation).❍ The average percentage (penetration) of the Toyota Pojištění product to Toyota and Lexus vehicles sold during the period inquestion reached a 8% level by the end of 2009, i.e. for each 100 cars sold, an average of 8 contracts were entered into.❍ 95% of the overall number of contracts relate to new passenger and utility vehicles; 84% of customers entered at the same timeinto a third party liability and accident insurance; only 16% clients concluded only a single liability insurance contract, withoutaccident insurance.❍ If the above data (a 8% penetration of Toyota Pojištění, see above) are added to the overall financial service penetration, theoverall penetration of the financial and insurance services provided by the Toyota Financial Services Czech s.r.o in relation to thesale of Toyota and Lexus in the Czech Republic by the end of 2009 amounted to about 25%.❍ The project seems to be viable with a great potential for the future, promising gradual growth and increased activity of thevendors in this area who perceive the product as an opportunity at the times of decreased interest in financial services.❍ For further information, Figures 4 and 5 have been included which monitor the development of number of contracts enteredinto during the period and the ratio between the insured entities by entity type.Figure 4 – Number of contracts Toyota Insurance entered into in the period FY2009Number of contracts (pcs)4 5 6 7 8 9 10 11 12 1 2 3Month 2008 – 2009Figure 5 – Toyota Pojištěnícustomers by type of entityEnterpreneurs and companies12%Individuals88%18