Toyota 2007 Annual Report Download - page 47

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ANNUAL REPORT 2007 45
Financial Services Operations Organization
100
%
33.42
%
100% 100% 50% 50% 100%
Toyota Accounting
Service Co.
Overseas Sales
Finance Companies
Toyota Finance
Corporation
Toyota Financial Services
Securities Corporation
Toyota Financial
Services Corporation
Toyota Motor
Corporation
Toyota Asset
Management Co., Ltd.
Aioi Insurance
Co., Ltd.
system that will encompass more
than 60% of the market for Toyota-
brand vehicles. In fiscal 2007, the
TFS group extended its sales area
from Beijing to include Guangzhou,
Tianjin, Shenzhen, and Shanghai.
Plans call for further expansion to
Jiangsu, Zhejiang, and other areas
of Guangdong by the end of
March 2008. And, in its first year of
operation in Indonesia, the TFS
group increased its sales bases
from 7 to 14. We plan to enter other
regions with careful consideration
of management resource utiliza-
tion and regional characteristics.
Meanwhile, in such mainstay
markets as Europe, North America,
Australia, and Japan, the auto sales
financing environment is changing
significantly. Excess liquidity is
causing fierce competition among
banks. At the same time, cus-
tomers can easily access financial
information through the Internet.
We will respond to such changes
by fostering closer relationships
with customers. To that end, we
are advancing our Customer for
Life initiative to ensure long-term
growth. As part of that initiative,
we are issuing credit cards in
Japan and the United States.
Total cardholders of the TS
CUBIC CARD, issued by Toyota
Finance Corporation, passed 6 million
in fiscal 2007 thanks to a drive to
recruit members that focused on
Toyota dealers and to the expan-
sion of tie-up card services. In addi-
tion, we started QUICPay* service
in the small settlements market in
April 2006. The number of QUICPay
members exceeded one million in
12 months due to a drive to recruit
QUICPay dealers and members.
* QUICPay is a type of electronic money based
on a postpay service that does not require
prior cash deposits.
Business Strategy
Expand Customer Base and Target
Long-Term Earnings Growth
Under the slogan “Growth, Efficiency,
Change,” the TFS group steadily
continued to implement initiatives
from the previous fiscal year focus-
ing on the themes of always
putting the customer first, building
business in developing countries,
launching fresh initiatives to target
earnings growth, and shifting to a
low-cost business model.
In mainstay auto sales financing
business, we are strengthening
coordination among management
companies, distributors, and deal-
ers in regions worldwide. At the
same time, we are offering cus-
tomers easy payment plans
through long-term loans for younger
customers and fixed residual value
products. Also, we provide package
loans that include insurance and
maintenance. Among other products
catering to the needs of customers
and specific regions, we introduced
a lease for the Tundra in the United
States and the Auris key for key
product in Europe. Similarly, in Japan
we are marketing such demand-
generating products as the “Lexus
Owners’ Lease*” and “Rakuchin
Corolla Credit**.” In addition, the
TFS group is bolstering financing
products for fleets and used vehi-
cles to expand its customer base
and support Toyota’s vehicle sales
from a long-term perspective.
* Lexus Owners’ Lease is a lease plan that
lessens the burden of monthly payments by
fixing vehicles’ future trade-in prices.
** Rakuchin Corolla Credit is a payment plan
that lessens the burden of monthly pay-
ments by fixing vehicles’ trade-in prices
three or five years in advance.
Financial Services Operations
Overview of Toyota’s Financial Services
Operations FY 2007
Total assets of financial services
operations ............... ¥13,735.4 billion
Revenues from financial
services operations ...... ¥1,300.5 billion
Operating income........ ¥158.5 billion
Credit ratings ............. AAA /Aaa
Operating areas ......... 31 countries and
regions worldwide
Market coverage ......... approx. 90%
No. of customers ......... approx. 13 million
No. of employees ........ approx. 8,000
Note: Fiscal year ended March 31
Overview of Toyota’s Financial Services
Operations FY 2007