TOYOTA FINANCE CORPORATION (E05031) Stock Price

Toyota Finance is a financial subsidiary of the Toyota Motor Group that primarily provides credit services to automobile purchasers and business support to Toyota dealerships. The company plays a crucial role in supporting Toyota brand vehicle sales from a financial perspective, offering a wide range of services including auto loans and credit card operations for individual customers, as well as leasing and financing services for corporate clients.

The company's primary customers are individual purchasers of Toyota vehicles and Toyota dealerships. It generates revenue from individual customers through interest and fees on auto loans and credit cards, and from Toyota dealerships through equipment investment financing and guarantee services for installment sales receivables. Additionally, co-branded credit card operations such as TS CUBIC CARD and ENEOS Card represent an important revenue source through merchant fees.

The company's operations are divided into six business divisions: the financing division provides funding to dealerships; the individual credit purchase arrangement division handles auto loan operations; the credit guarantee division manages dealership installment receivables guarantees. The comprehensive credit purchase arrangement division offers payment services including credit cards and electronic money; the leasing division handles leasing operations primarily for commercial vehicles; and the other division manages insurance agency operations and collection agency services.

Under its "VISION2025" medium-term management plan, Toyota Finance is transforming from a traditional "auto finance company" into a "mobility financial services company." The company has positioned "digitalization" and "carbon neutrality" as its core strategic pillars, aiming to create the future of mobility society through financial services that exceed customer expectations. In terms of management metrics, the company prioritizes "operating assets and credit guarantee balance" and "transaction volume," seeking to enhance Toyota Group's value and corporate performance through improvements in these areas.

In priority investment areas, digital transformation is positioned as the top priority. The company is focusing on creating high-value-added services based on customer data, and is accelerating comprehensive digital transformation across "business models," "products and services," "work styles," and "business processes." Additionally, the company is addressing mobility challenges in local communities, pursuing differentiation through service offerings that extend beyond traditional auto finance.

In new market development, strengthening competitiveness in the retail finance market, where new competitors from other industries are entering, has become urgent. The company is anticipating market changes where commerce and finance are converging, and is promoting new product development utilizing IT technology and service provision across industry boundaries. While leveraging Toyota brand trust, the company aims to expand its customer base through rapid product and service launches.

In technological innovation efforts, the company is responding to electrification and software-focused trends in the automotive industry. The company is strengthening SDG-linked initiatives toward achieving a decarbonized society by 2050, while also focusing on enhancing information security systems and building stable funding structures. Through sharing Toyota Philosophy and corporate values, the company is strengthening organizational capability and improving execution in a rapidly changing business environment.