February 2015 Sales Conference Notes

February 2015 Sales Conference Call
Tuesday, March 3, 2015

February 2015 Sales Call (Audio Clip)

Good day and thank you for joining us to review February sales results for Toyota, Scion and Lexus.

Speaking today will be:

Bill Fay, Group Vice President and General Manager of the Toyota Division
And Jeff Bracken, Lexus Group Vice President and General Manager

A recording of the call will be available at pressroom.Toyota.com about one hour after its conclusion and of course our communications team also is available to field any additional questions you may have @ (310) 468-5297.

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

Toyota Division Group Vice President and General Manager Bill Fay:

Thank you Scott. Good morning everyone, and thank you for joining us today.

The auto industry continued its fast start to 2015

With February sales of about
- 1,257,000 vehicles
Up 5.3% from last year
That’s the 12th straight month the industry has posted year-over-year gains

The Seasonally Adjusted Annual Rate

Is coming in at about 16.2 million
And combined with January, gives the industry its best start since 2007
- At a 16.4 million YTD pace

For Toyota, Scion and Lexus dealers

The results were even more impressive
With sales of 180,467 vehicles
Up 13.3%
For our best February since 2008

It was a record-setting month for us

As total light truck and SUV sales had their best February ever
- RAV4 set a new mark for the month
And Lexus also hit a new February high

February also is awards month

With both the Consumer Reports annual automotive rankings and J. D. Power’s Vehicle Dependability Study being released
Lexus finished as the #1 brand in both
While Toyota was the #1 full-line brand
- Scion showed the most improvement of any brand in Power study
- As Toyota, Scion and Lexus models topped 7 of the 10 vehicle segments
Camry, Sienna and Highlander also were named to the Kelley Blue Book list of Top 15 family cars

Now for the Toyota Division in February

Total sales of 157,472
Were up 12% from last year
As Toyota was again the best-selling retail brand

RAV4 record sales

Of nearly 22,000
Were up 33 and a half percent
While Sienna was up 50%
4Runner 38%
And Tundra and Tacoma
- 14 and 13 percent respectively
Pushing the light truck record for the month to 75,343
- Up 17% from last year

Camry led our passenger car increase

With sales up 13 ½ percent
At nearly 33,000
Making it the best-selling car in America

While Corolla sales

Of nearly 28,000
Were up 10% from last year
Making it the best-selling compact car

Helping meet strong Corolla demand

Has been our Mississippi plant that opened in 2011
And last month produced Corolla number 500,000
The fastest any plant in the U.S. has reached that mark

Avalon added to the growth

With sales up 34% last month
Helping push total passenger car sales up 8% for the month

With the industry already off to a fast start this year

We’re looking forward to the spring selling season
Which traditionally gets underway in March

To keep the momentum going

We’ll launch our first national marketing campaign of the year
Featuring a combination of low interest rates
And excellent lease offers
Backed by good inventories across the board

Thanks again for joining us today. Now I’d like turn this over to Jeff Bracken for a look at the Lexus results.

Lexus Group Vice President and General Manager Jeff Bracken:

Thanks Bill, and hello everyone.

Not only was February

A record-setting month for Lexus
It was our 4th straight record month
With total sales of 22,995
Up 22% from last year
And topping the previous mark for the month set back in 2007

Our results are being driven

By strong demand for our two all-new models
- The RC coupes and NX entry-level luxury utility vehicles
Along with a solid month for our volume leaders
- Including the ES and RX

As you might expect

Our luxury utility vehicle lineup had a big month in February
With record total sales of 11,100
- (current record of 10,619 set in 2004)
Up 46 ½ percent from last year

The RX

Continues to be the segment’s volume leader
With sales up 14% from last year
At 6,500 vehicles
While the GX was up 4%

The all-new NX line

Continues to exceed our targets
Adding another 2,600 units to the total

Not only are NX sales off to a great start

Early buyer information indicates
- Just over half are male
- And nearly 20% are 35 or younger
- In addition, about half are new to Lexus
So we’re pleased not only with the sales figures
But also with the new customers the NX is bringing into dealerships

Looking at our passenger car results