August 2013 Sales Conference Notes

August 2013 Sales Conference Call
Wednesday, September 4, 2013

August 2013 Sales Conference Call (audio clip)

Toyota Motor Sales Vice President of Corporate Communications Mike Michels:

Hello everyone and thank you for joining us to review Toyota’s August sales results.

Speaking today will be:

Bill Fay, Toyota Division Group Vice President and General Manager;
And Steve Hearne, Lexus Vice President for sales and dealer development.

Following the call, our communications team will be available to field any additional questions
you may have.

Now I’d like to turn it over to Bill for a look at August results.

Toyota Division Group Vice President and General Manager Bill Fay:

Thank you Mike… and thanks everyone for joining us today.

I hope you had a good Labor Day Weekend…because I know the industry did.

We all benefitted in August from having an extra selling day and the unusual situation of Labor Day Weekend falling into the month’s totals.

We may see some give back in September, but for now, we’re going to enjoy the August results.

In fact, Toyota, Lexus and Scion

Best month in more than five years (May 2008)
Combined sales of 231,537
Up 22.8% from last year
- Volume basis
Well ahead of the industry pace

From our point of view, it was a remarkable month

Toyota #1 retail manufacturer
- #2 overall brand
- Fleet sales making up just 2% of our mix
Camry #1 selling car
Toyota Division #1 selling retail brand
Toyota #1 in certified used vehicle sales

Sold 34,000 vehicles in California alone

Up 40% from last year
Accounting for 18% of retail market

Overall industry also had an excellent month

Sales of about 1.5 million
Up nearly 17% from last year
Best month in six years (Aug. 2007)
Second straight month retail sales about 90% of total
SAAR 16.1 million (first time since Nov. 2007)

August capped a solid summer for the industry

While we’ve seen fluctuations in some economic indicators
One thing has remained consistent…the overall strength of the U.S. auto industry

For June, July and August

Industry cruised along at a seasonal rate of 15.9 million vehicles

Brings the YTD SAAR to 15.5 million

In line with our expectations

This stability in the marketplace

Combined with the response to our new models
- Including the RAV4 and Avalon
Continued strong performances by Camry, Prius and Tacoma
And the arrival of the new Corolla and Tundra
Push Toyota Division target for the year
- To more than two million
Combined with Lexus,
- which announced an increase in its target last month
Brings our TMS goal for the year to two and a quarter million vehicles

Toyota Division in August

Sales of 201,745
Up nearly 23% from last year
Best month since August of 2009

Camry

Camry recorded its second-best August ever
Sales of more than 44,700
Up 22%

Prius Family

Prius family second best month ever
More than 27,000
Up 30%
Also best-ever Prius month in California
Sales of more than 8,100 units

Avalon

More than tripled to 6,200
Nearly 20% were hybrid models
BTW, Avalon hybrid
- named the top hybrid of 2013 by AutoPacific last month (AutoPacific Ideal Vehicle Awards)

Hybrids

Avalon hybrid combined with Prius
- 18% increase in Camry hybrid sales
- Pushed total Toyota Division hybrid sale up 30%
- To more than 34,000
We’ve got more on the way

Finally on the car side

Sold nearly 27,000 Corollas
Up 10 and half percent
Includes about 1,100 all-new 2014 Corolla models

With the sell-down of the 2013 model going well
And smooth production start-up of the 2014 model
Able to move up the on-sale date of the new Corolla
To final days of August
Have more on the new Corolla in a few minutes

On the truck side

Sales up 20.5%

RAV4 volume leader

More than 23,500
Up 50%
Second-best month ever for RAV4

Combined pickup truck sales of more than 26,500

Best month in five years
Led by Tacoma +25%

Toyota Certified Used Vehicles

Best month ever
Sold more than 36,000 vehicles
Up nearly 27%
Further indication
- strength of the overall market
- and Toyota’s product lineup

Looking Ahead

September will mark the first full month of sales for the new Corolla and Tundra
Latest of 9 all-new or significantly updated new products
- Introduced over past two years
- Beginning with Camry
- That have accounted for much of our growth

We’ve elevated the Corolla experience in every way

Dramatic new design
Significantly upgraded interior
Added content, features and value

Expect new Corolla

To push 2013 calendar year Corolla sales to about 300,000
And to about 330,000 in 2014

Marketing launches…for both the Corolla and Tundra get underway in September

Thank you again for joining us today.

Now I’d like to turn this over to Steve for a look at the Lexus results.

Lexus Vice President for sales and dealer development Steve Hearne:
Thank you Bill.

August is traditionally big for Lexus

Was again this year
Recorded our best month of 2013
Sales of 29,792
Up 23% from year-ago levels

Much of the attention has been on the all-new IS

Continues its great launch
Sales up 88%
To more than 4,400 units

On sale for a little more than two months
We have some initial IS buyer information

One goal was to attract more male buyers
Nearly 60% male (compared to about 45% for ’13 model)

Nearly half the buyers (45%) are opting for the F-Sport
- Like aggressive styling
- And performance benefits
- Compared to about 10% for the 2013 model year
Median age 44
- More than a third of buyers under 35

Nearly half are conquest sales and buyers new to Lexus lineup
- Mostly from BMW, Audi and Acura

And the IS isn’t only performing in the showroom

Having topped Car and Driver Magazine’s luxury sports sedan comparison test against many of those competitors

But IS wasn’t the only story for Lexus in August

Every car in our lineup posted year-over-year gains
Led by new models introduced within the past year

ES volume leader
- More than 7,600
- ES hybrid sales doubled
- YTD ES sales now up 60% (nearly 50,000 for the year)
- Named Ideal luxury mid-size car by AutoPacific
  - Same survey Bill mentioned earlier