May 2013 Sales Conference Notes

May 2013 Sales Conference Call
Monday, June 3, 2013

May 2013 Sales Conference Call Audio

Toyota Motor Sales Vice President of Corporate Communications Mike Michels:

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

Speaking today will be:

Bill Fay, group vice president and general manager of the Toyota Division;

Jeff Bracken, group vice President and general manager of Lexus.

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 May results.

Toyota Division Group Vice President and General Manager Bill Fay:

Thank you Mike and thanks everyone for joining us today.

May industry sales

About 1.4 million
12% percent from April

Retail sales even stronger, up 9% from last May
- 1.2 million
- Topping 1 million for third straight month
- Best retail month in nearly six years
- since August of 2007

Pushed SAAR back above 15 million for the month

@ 15.3 million
CYTD also 15.3

We had an excellent Memorial Day Weekend

Nice springboard to the summer selling season
Expect continued improvement in sales pace in months ahead
Hit 15.3 million for the year

Improving economy supports this modest growth

Consumer confidence reached a five year high
- Consumer spending also continues to rise
Unemployment at four-year low
Still see plenty of pent-up demand, low interest rates and stable gas prices

Toyota, Lexus and Scion in May

Total sales of 207,952
- Up 2.5% from last year
- Increase of 18% from April

Accomplished despite trimming fleet sales nearly 30%

About 7,500 units

On a retail basis

TMS industry’s #1 retail manufacturer

Toyota Division

Sales of 185,723
Up 2.3% from last year
17% from last month
Toyota Division #1 retail brand

Big month for Camry

More than 39,000
- On a par with last year
Making Camry best-selling car for the month

Camry also featured on Consumer Reports’ list of Top 10 models

XLE hybrid and XLE V6only non-luxury models on list

For Prius

Best month in more than a year
Sales of 23,522
Up nearly 10%
Accounting for about half of all the hybrid car sales in America

Corolla also turned in a solid month

Sales of 28,000
Down from last year
Sell-down of the current model going extremely well
Will show new Corolla for first time later this week

The FR-S continues to drive Scion

On-sale for a year now
Second-best month ever at nearly 2,000 units
Pushing Scion up 9% for the month

And finally on the car side, have a bona fide hit in Avalon

Sales up more than 250% from last May
And have more than doubled for the year

Looking at light truck sales

New RAV4 volume leader
- Set new May record in process
- Best month in more than three years
- Topping 20,000
- Up 8%

Tacoma and Tundra both posted double-digit gains

Up 20% and 13.5% respectively
At nearly 25,000,
- best pickup month since Aug. 2008

Also a good month for our SUVs

FJ Cruiser up 30%, Sequoia 15% and Land Cruiser 12%

Finally, Toyota Certified Used Vehicles

Recorded its best-ever May
More than 32,000
Fifth straight record month

Looking Ahead

We’re well positioned for the summer selling season
- Especially in a strong retail environment:
  - Camry, best-selling car in America
  - RAV4 coming off two-straight record months
    - Hot compact cross-over segment
  - Avalon more than doubling sales so far this year
  - Prius momentum is building and with our hybrid sales accounting for more half the industry’s total
    - Just one reason we have the most fuel efficient full-line fleet in industry

Looking forward to 2014 Corolla launch activities underway

Add that up and you have the makings for a great summer.

Thanks again for joining us today and now I’d like to turn this over to Jeff for a look at Lexus.

Lexus Group Vice President and General Manager Jeff Bracken:

Thank you Bill.

Lexus also had a very good May

Sales of 22,229
Up 3.6% from last year
More impressively, up 23% from April
Easily biggest month-to-month increase of any luxury brand

Luxury sedans

Continue to perform well
we have two of the hottest new cars in the luxury market
ES and LS
Both models more than doubled year-ago totals during May

ES sales of 5,890

For the year, ES sales up 92%
Big part of increase is addition of hybrid model to the ES lineup
Accounted for about nearly 25% of mix in May
Key reason Lexus hybrid sales up more than 50% for month

LS sales up 117% in May
Up 78% for the year
Best performance of any prestige luxury sedan
By the way, the LS 460L also made the list of Top 10 Consumer Reports models Bill mentioned earlier

Luxury SUVs

Continue to be fastest growing luxury segment
Our RX remains the class of the field
And is our overall volume leader
With May sales of more than 8,700
Year to date sales up 5%
Total sales nearly doubling its closest competitor

Finally on the Certified Pre-Owned front

Lexus Certified Pre-Owned
Sales of more than 6,700
Best-ever May
Third straight record month

Looking ahead

Strong consumer confidence – 5 Year high
Bodes especially well for luxury market
Expect it will continue to gather momentum this summer

With ES and LS just now hitting their stride
Well-positioned to take advantage of the growth
Soon be adding the new IS model to our lineup
13th new or updated model in the past 15 months
The culmination of an unprecedented string of new models changing the face of Lexus

Sell-down of our current IS model going smoothly
Marketing activities for the new IS begin later this month
Combined with ES and LS will give us a trio of new luxury sedan choices

The other big news for us in May

Lexus earning the #1 brand ranking from Consumer Reports Magazine – Recommendation 100% of our lineup
First-ever ranking of individual brands

In the words of Consumer Reports:
“When it comes to making cars, Lexus pushes all of the right buttons”

When you combine that kind of review, with the sweep of the J.D. Power customer satisfaction awards
Lexus picked up earlier, I think you can see why we’re excited about the months ahead.

Thank you very much or joining us today and now I’d like to open up the call for questions.

# # #