FORM 8-K TOYOTA MOTOR CREDIT CORPORATION

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 26, 2011 TOYOTA MOTOR CREDIT CORPORATION (Exact name of registrant as specified in its charter) California (State or other jurisdiction of incorporation) S. Western Avenue Torrance, California (Address of principal executive offices) (Commission File Number) (IRS Employer Identification No.) (Zip Code) Registrant's telephone number, including area code: (310) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 Item 7.01 Regulation FD Disclosure. Toyota Motor Credit Corporation has prepared an investor presentation. The presentation is furnished (not filed) as Exhibit 99.1 to this Current Report on Form 8-K pursuant to Regulation FD. Item 9.01 Financial Statements and Exhibits Investor presentation of Toyota Motor Credit Corporation (furnished pursuant to Regulation FD) 2

3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TOYOTA MOTOR CREDIT CORPORATION Date: August 26, 2011 By: /s/ Chris Ballinger Chris Ballinger Group Vice President and Chief Financial Officer 3

4 Exhibit Index 99.1 Investor presentation of Toyota Motor Credit Corporation (furnished pursuant to Regulation FD) 4

5 Presentation to Fixed Income Investors August 2011

6 Disclaimer This presentation includes certain forward-looking statements within the meaning of The U.S. Private Securities Litigation Reform Act of These statements are based on current expectations and currently available information. Actual results may differ materially from these expectations due to certain risks, uncertainties and other important factors, including the risk factors set forth in the most recent annual and periodic reports of Toyota Motor Corporation and Toyota Motor Credit Corporation We do not undertake to update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements. This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities. Any offer or sale of securities will be made only by means of a prospectus and related documentation. 2

7 Toyota s Global Businesses 3

8 TMC Consolidated Financial Results Fiscal Year Ended March 31, (JPY billions) Net Revenues 20, , ,993.6 Operating Income (Loss) (461.0) Net Incom e (Loss) (437.0) Sources: Toyota Motor Corporation FY 2010 Financial Summary and FY 2011 Financial Summary 4

9 TMC Consolidated Balance Sheet FY2010 FY2011 (JPY billions) As of March 31, 2010 As of March 31, 2011 Current assets 13, ,829.8 Noncurrent finance receivables, net 5, ,556.7 Investment & other assets 4, ,122.5 Property, plant & equipment, net 6, ,309.2 Total Assets 30, ,818.2 Liabilities 19, ,898.1 Shareholders' equity 10, ,920.0 Total Liabilities & Shareholders' Equity 30, ,818.2 Source: Toyota Motor Corporation FY2011 Financial Summary 5

10 Production Update Toyota Motor Corporation has revised its production schedule following the disruptions caused by the March 2011 Japanese earthquake and tsunami Japan production returned to normal levels in July In the U.S. market, eight core models are at 100% production: Avalon Matrix Camry Sequoia Corolla Sienna Highlander Venza The remaining four core models in the U.S. are expected to reach 100% production in September Global production will continue to increase to 100% of normal levels by November/December

11 Toyota Motor Sales, USA Strong finish to 2010 : Toyota was the #1 selling retail brand in the U.S for 3 rd consecutive year Camry remained #1 selling passenger car in the U.S. for 9 th consecutive year Lexus remained the #1 selling luxury brand in the U.S. for 11 th consecutive year Scion was the youngest brand in the U.S. in 2010 ( 37 median age) Quality, safety, reliability and product appeal remain high as reflected by numerous 3 rd party accolades 2011 American Customer Satisfaction Index Toyota & Lexus tie for # JD Power APEAL (Automotive Performance, Execution & Layout) Study Lexus ranks in top Interbrand s Best Global Green Brands Toyota ranks # JD Power VDS TMS receives most highest ranking awards (7), more than any other OEM 2011 JD Power CSI Lexus ranks highest of any luxury brand 2011 JD Power IQS: Lexus earns 4 segment awards, ranks highest among all nameplates 2011 IIHS Top Safety TMS earns 8 top safety awards 2011 Edmunds.com Lexus receives Best Retained Value Award for luxury brands 2011 Kelly Blue Book Top 10 Green Cars Prius and Lexus CT 200h earn spots on KBB s prestigious list Automotive Lease Guide Perceived Quality Study Toyota jumps four spots to #2 in only six months 2011 IntelliChoice Best Overall Value of the Year TMS receives 11 top spots, more than any other OEM 2010 Consumer Reports Auto Reliability TMS earns 17 awards, more than any other OEM 7

12 Toyota Motor Sales, USA (2) Product refresh cycle is high: 10 all-new or refreshed models for 2011 Industry-leading investment in next-generation technologies in power-train, safety and production TMS has the most fuel-efficient line-up of any full-line OEM 8 hybrid models in TMS line-up and 73% share of the U.S. hybrid market (1) Recent and upcoming vehicle launches: Lexus CT200h Camry and Camry Hybrid Prius v Scion iq Refreshed Corolla/Matrix Yaris (1) As of July 31,

13 Toyota Motor Sales, USA (3) Lexus GS 350 Camry and Camry Hybrid 9

14 Toyota Motor Sales, USA (4) Prius v Scion iq 10

15 Toyota Motor Sales, USA (5) Lexus LFA Scion FR-S Concept 11

16 Toyota Financial Services 12

17 TFS Group Global Presence 34 Countries & Regions Worldwide 13

18 Toyota Motor Credit Corporation (TMCC) Toyota Motor Corporation (TMC) Toyota Financial Services Corporation (TFSC) Toyota Motor Credit Corporation (TMCC) Over 4.0 million active finance contracts (1) AA- (2) /Aa3 (3) rated captive finance company Credit support agreement structure with TFSC/TMC (1) As of June 30, 2011 (2) Outlook negative (3) On review for possible downgrade 14

19 Credit Support Agreements Securities* issued by TMCC (and various other TFSC subsidiaries) have the benefit of a credit support agreement with TFSC TFSC will own 100% of TMCC TFSC will cause TMCC to maintain a tangible net worth of at least $100,000 as long as covered securities are outstanding If TMCC determines it will be unable to meet its payment obligations on any securities, TFSC will make sufficient funds available to TMCC to ensure that all such payment obligations are paid as due Agreement cannot be terminated until (1) repayment of all outstanding securities or (2) each rating agency requested by Toyota to provide a rating has confirmed no change in rating of all such securities TFSC in turn has the benefit of a credit support agreement with Toyota Motor Corporation ( TMC ) Same key features as TFSC/TMCC credit support agreement TMC will cause TFSC to maintain a tangible net worth of at least JPY10mm as long as covered securities are outstanding TFSC s and/or TMC's credit support obligations will rank pari passu with all other senior unsecured debt obligations * Securities defined as outstanding bonds, debentures, notes and other investment securities and commercial paper, but does not include asset-backed securities issued by TMCC s securitization trusts. 15

20 TMCC Products and Services Consumer Finance Dealer Finance Commercial Finance Insurance Retail Lease Wholesale Real Estate Working Capital Revolving Credit Lines Forklift Hino Medium Duty Retail Lease Service Agmts Ext. Warranty Guaranteed Auto Protection Roadside Assistance 16

21 TMCC Financial Performance - Select Data Three Month Fiscal Year Ended March 31, Ended June 30, (USD millions) Total Financing Revenues 8,192 8,800 8,163 8,064 1,920 add: Other Income less: Interest Expense 7,450 7,132 5,587 4,967 1,282 and depreciation Net Financing Revenues 1,428 2,100 3,256 3, and Other Revenues Net Incom e (Loss) (223) (623) 1,063 1, Source: TMCC March 31, K and June 30, Q 17

22 TMCC Earning Asset Composition Managed Assets (USD billions) Mar-2008 Mar-2009 Mar-2010 Mar-2011 Jun-2011 Lease Retail Sold (ABS) Wholesale & Other Source: TMCC March 31, K and June 30, Q 18

23 Extensive Field Organization Decentralized dealer and field support Centralized servicing and collections (circled) 19

24 TMCC Financial Performance - Select Data Three Month Fiscal Year Ended March 31, Ended June 30, (USD m illions) Over 60 Days Delinquent (1) 0.59% 0.68% 0.45% 0.26% 0.32% Allowance for Credit Losses (1) (2) 0.97% 2.51% 2.31% 1.13% 0.89% Net Credit Losses (3) 0.91% 1.37% 1.03% 0.52% 0.05% (1) Percentage of gross earning assets (2) The quotient of allowance for credit losses divided by the sum of gross finance receivables (net finance receivables less allowance for credit losses) plus gross investments in operating leases (net investments in operating leases less allowance for credit losses) (3) Percentage of average gross earning assets annualized Note: All percentage figures calculated for fiscal years 2007, 2008 and 2009 were based on a 150-day charge-off policy, which was changed to 120 days in fiscal 2010 Source: TMCC March 31, K and June 30, Q 20

25 TMCC Funding Programs 21

26 Exceptional Liquidity A-1+/P-1 Direct Commercial Paper Program Backed by $ 13 billion multi-party back-stop credit facilities: $ 5 billion 364-day; $ 5 billion 3-year; $ 3 billion 5-year $ 9.3 billion Short-term Investment Portfolio (1) Over $ 30 billion in salable retail loan receivables Access to various domestic and international term markets Billions of additional capacity in Global Benchmark Markets Inter-company lending infrastructure Credit Support Agreements: TMCC TFSC TMC (1) Average balance for quarter ended June 30, 2011 Source: TMCC June 30, Q 22

27 TMCC Funding Program Objectives TMCC is committed to: Maintaining funding diversity and exceptional liquidity Issuing into strong demand with attractive deals Identifying & developing new markets and investor relationships Responding quickly to opportunities with best-in-class execution 23

28 Diversity in Debt Offerings TMCC Term Debt Outstanding By Deal Type By Currency Public/Private ABS $10,626 Eurobonds $11,214 EUR, $6,808 Other $8,820 Uridashi $5,758 USD, $28,923 AUD, $4,272 JPY, $4,156 Global MTN $4,600 MTN $3,360 units in USD millions EMTN $5,645 units in USD millions CHF, $2,847 NZD, $1,259 GBP, $925 Other, $831 As of July 31, 2011 Source: Company Reports 24

29 Funding Flexibility Focus on More Diverse Maturities in USD Issuance (1) FY '08 FY '09 FY '10 FY'11 2yr 3yr 20% 4yr 1% 1% 3yr 5% 74% 1yr 2yr 8% 3yr 15% 10yr 24% 16% 1yr 7% 2yr 18 mo 12% 66% 1yr 2yr 18 mo 19% 2% 77% 1yr 36% 17% 3yr 5yr (1) Unsecured U.S. MTN issuance, excluding Structured Notes and Retail Notes. Source: Company Reports 25

30 Key Investment Highlights Financial strength supported by strong credit ratings Transparent business model with exceptional liquidity Rational funding programs with long term perspective Diversification in bond offerings Focus on proactively meeting needs of market Strong emphasis placed on flexibility and responsiveness 26

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