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>> Annual Report 2015 Annual Report of Toyota Kreditbank GmbH Group, Cologne, for Financial Year 2015, 1 April 2014 – 31 March 2015

Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

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Page 1: Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

>> Annual Report 2015

Annual Report of Toyota Kreditbank GmbH Group, Cologne, for Financial Year 2015, 1 April 2014 – 31 March 2015

Page 2: Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

02 – 03

Contents

04 Foreword10 Notestotheconsolidatedfinancialstatementsof ToyotaKreditbankGmbHforthe2014/2015financialyear 12 1.Generalinformation

12 2.Consolidatedcompanies

12 3.Consolidationprinciples

12 4.Accountingpolicies,foreigncurrencytranslation

15 5.Notestothebalancesheet

23 6.Notestotheincomestatement

24 7.Otherdisclosures

28 ConsolidatedCashFlowStatementforToyotaKreditbankGroupfortheperiod1April2014to31March2015

29 ConsolidatedStatementofChangesinEquityofToyotaKreditbankGmbHasat31March2015

30 Segmentinformation

34 ToyotaKreditbankGmbH GroupManagementReportforthe2014/2015financialyear 36 A. GeneralInformationontheToyotaKreditbankGroup

38 B. ReportonEconomicPosition

50 C. Eventsaftertheendofthereportingperiod

50 D. OpportunitiesandRisksReport

69 E. Outlook

72 CountrybyCountryReporting

73 Auditors’Report

Page 3: Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

Ladies and Gentlemen, Toyota is pleased to reveal the most profitable year in the company’s history worldwide. With record sales of 10.23 million units, Toyota is once again the world’s largest car manu-facturer. At the same time, Toyota has continued to increase its lead in innovative power concepts, particularly hybrid technology, and has also introduced the Mirai, the first pro-duction fuel-cell vehicle. For the future, the company is also re-entering motor sport. From 2017, Toyota will return to rallying with new models after an absence of 16 years.

Team spirit products bring success in new car business

Intelligent co-operation with the importer, e.g. jointly financed interest schemes and racy advertising strategies for smaller cars like the Aygo "go fun yourself" campaign, not only enthused young people in particular but also ensured high market penetration rates.

Service products, such as "Toyota Komplett" and "Toyota Service Leasing" provided considerable added value for the customer with their attractive conditions and additional benefits. The icing on the cake was the special finance deal with "3 years’ free servicing" for many models.

Our business customers were enthusiastic about the "Busi-ness Plus Weeks", during which, in addition to their dream cars, they were also provided with perfectly tailored finance and service packages. This encouraged further growth in the business sector.

Side-by-side in the used car business

At Toyota Kreditbank we are consistently implementing our successful "side-by-side with the retailer" formula. Continu-ous dialogue, support in all situations and a joint approach to the digital world, in which, for example, online finance will be available as required, ensure that Toyota will not lose out on any used car business in Germany. Retailer and bank appear as a single unit and will continue to work together more in the future.

Ready for European banking regulation

Toyota Kreditbank, together with all its branches and sub- sidiaries, is the first captive to implement the IRB approach. Lean and transparent management has meant that additional costs could be absorbed. We are ready to adapt flexibly and quickly to all situations. Because of our own internal rating models and business model, we require less regulatory capital. Given our sound capital funding, we are able to provide even better support and supervision for the retailer.

Successes we can be proud of

The satisfactory results of the Toyota Kreditbank GmbH Group for the 2015 financial year are something to be proud of. They have been achieved in spite of strong competition and difficult economic conditions. While Germany continues to be a highly competitive market, the Group achieved the best result ever in spite of the crisis in Russia. In France, we were able to produce our best figures in spite of the reduced promotion of hybrid vehicles. In both the Spanish and Italian markets, we see a positive trend.

Customer proximity and team spirit between bank and dealers were rewarded by the retailer with excellent feedback. For the sixth time in succession, Toyota Kreditbank was awarded the title of "Best Captive". The Bankenmonitor 2014 dealer survey in Germany awarded the industry report overall winner top marks and, for the ninth time in succession, first place as the best car bank of the major imported brands and the highest score of all manufacturers in a good third of all individual cri-teria. At this point, we would also like to thank all our partners for their many years of successful and loyal co-operation. In our other markets too, we are always far ahead in the eyes of our end customers and dealers in terms of customer satisfaction.

Well positioned and ready to accelerate

We can draw the following conclusion: "With strong pro- grammes on the part of the bank and importers, which will be further extended in the future, with excellent capital funding and successful Basel-II-IRBA implementation, we at Toyota Kreditbank GmbH, stand side-by-side with the retailer in pole position for the next financial year."

Christian RubenManaging DirectorCEO

Toyota Kreditbank GmbH/Toyota Leasing GmbH

Junichi YamadaChief Representative

Toyota Kreditbank GmbH

Ivo LjubicaManaging DirectorCOO

Toyota Kreditbank GmbH/Toyota Leasing GmbH

Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

04 – 05

Page 4: Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

Consolidated balance sheet of Toyota Kreditbank GmbH, Cologne, as at 31 March 2015

Assets31/03/2015

EUR31/03/2014

EUR

1 Liquid fundsa Cash 45,460.21 19,684.63b Deposits with central banks, 33,880,930.81 39,711,053.48

thereof with German Federal BankEUR 16,886,963.91 (31/03/2014: TEUR 14,681)

33,926,391.02 39,730,738.11

2 Receivables due from banksa on demand 179,589,756.88 175,754,922.03b other receivables 133,091,130.41 69,058,690.65

312,680,887.29 244,813,612.68

3 Customer receivables 6,030,460,887.04 6,117,072,015.46thereof secured by mortgages: EUR 0.00 (31/03/2014: TEUR 0)Municipal loans EUR 0.00 (31/03/2014: TEUR 0)

4 Bonds and other interest bearing securitiesBonds and securities by public issuers 75,919,682.80 40,358,349.20

5 Investments - thereof 19,020.06 19,020.06in banks: EUR 19,020.06 (31/03/2014: TEUR 19)in financial services companies: EUR 0.00 (31/03/2014: TEUR 0)

6 Leasing assets 897,255,356.55 909,041,763.95

7 Intangible fixed assetsPurchased concessions, industrial and similar rights and assets, and licenses in such rights and assets 6,617,605.57 6,597,459.46

8 Tangible fixed assets 14,586,123.64 16,313,797.49

9 Other assets 57,875,886.52 34,220,842.21

10 Prepaid expenses and deferred charges 11,334,557.36 11,128,186.97

11 Assets arising from the overfunding of pension obligations 489,919.15 258,824.99

Total of assets 7,441,166,317.00 7,419,554,610.58

Equity and liabilities31/03/2015

EUR31/03/2014

EUR

1 Liabilities to banksa due on demand 76,365,074.88 55,017,595.37b with fixed term or notice periods 2,638,366,907.99 2,566,360,529.51

2,714,731,982.87 2,621,378,124.88

2 Liabilities to customers – other liabilitiesa due on demand 62,514,150.63 88,934,062.76b with fixed term or notice periods 2,378,226,694.58 2,390,943,295.02

2,440,740,845.21 2,479,877,357.78

3 Notes payable securitised liabilities 548,141,482.50 515,059,828.76

4 Other liabilities 222,780,057.00 227,808,146.34

5 Deferred income 520,284,365.50 554,427,716.33

6 Accruals and provisionsa Provision for pensions and similar obligations 14,584,846.35 13,123,044.57b Tax accruals 22,970,249.75 22,427,458.47c Other accruals 59,482,475.99 56,322,047.74

97,037,572.09 91,872,550.78

7 Subordinated liabilities 85,415,154.63 113,025,476.59

8 Equity a Contributed capital

Share capital 30,000,000.00 30,000,000.00b Capital surplus 345,843,161.35 345,843,161.35c Retained Group earningsca Revenue reserves of consolidated companies 435,232,319.29 386,970,346.65cb Groupe net income for the year 63,361,800.76 79,983,407.12d Currency translation differences - 62,402,424.20 -26,691,506.00

812,034,857.20 816,105,409.12

Total of equity and liabilities 7,441,166,317.00 7,419,554,610.58

Other obligations

Irrevocable credit commitments 428,920,098.81 393,346,344.72

06 – 07

Page 5: Annual Report 2015 - Toyota DE>> Annual Report 2015 Annual

Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

Consolidated income statement of Toyota Kreditbank GmbH, Cologne,for the period 1 April 2014 to 31 March 2015

01/04/2014 to 31/03/2015

EUR

01/04/2013to 31/03/2014

EUR

1 Interest income from a lending and money market transactions 351,075,928.90 365,754,854.02b fixed income securities and government ledger bonds 1,394,035.94 1,684,408.84

352,469,964.84 367,439,262.86

2 Interest expense 126,294,427.97 142,927,095.31226,175,536.87 224,512,167.55

3 Investment income 100.00 160.00

4 Commission income 54,237,565.40 51,643,334.54

5 Commission expense 73,541,557.16 73,157,233.28-19,303,991.76 -21,513,898.74

6 Other operating income 283,512,342.29 314,050,282.60

7 General administrative expensesa Personnel expensesaa Wages and salaries 41,975,286.19 42,044,952.22ab Social security expenses 10,411,053.95 10,837,795.31

of which pension costs: EUR 1,830,237.98 (31/03/2014: TEUR 2,181)

b Other administrative expenses 62,884,515.48 63,478,239.67115,270,855.62 116,360,987.20

8 Depreciation and amortisation of intangible and tangible fixed assets, includingleasing assets 210,946,910.91 230,076,115.74

9 Other operating expenses 18,608,994.40 13,204,118.08

10 Bad debts written off and allowances onreceivables and securities, together withincreases to accruals in respect of lending business 36,953,168.57 33,183,971.29

11 Profit from ordinary business activities 108,604,057.90 124,223,519.10

12 Extraordinary expenses 19,960,002.80 0.00

13 Income taxes 24,221,408.55 43,381,758.58

14 Other taxes, to the extent not included in item (9) above 1,060,845.79 858,353.40

15 Group net income for the year 63,361,800.76 79,983,407.12

08 – 09

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12 1. General information12 2. Consolidated companies12 3. Consolidation principles12 4. Accounting policies, foreign currency translation15 5. Notes to the balance sheet 5.1 Cashreserve 5.2 Duefrombanks 5.3 Customerreceivables 5.4 Bondsandotherfixedinterestbearingsecurities 5.5 Investments 5.6 Leasingassets 5.7 Intangibleassets 5.8 Property,plantandequipment 5.9 Fixedassetsmovementschedule 5.10 Otherassets 5.11 Assetsdenominatedinaforeigncurrency 5.12 Prepaidexpensesanddeferredcharges 5.13 Liabilitiestobanks 5.14 Liabilitiestocustomers 5.15 Securitisedliabilities 5.16 Otherliabilities 5.17 Deferredincome 5.18 Accrualsandprovisions 5.19 Subordinatedliabilities 5.20 Foreigncurrencyliabilities23 6. Notes to the income statement 6.1 Otheroperatingincome 6.2 Depreciationandamortisationofintangibleassets,tangiblefixedassetsandleasingassets 6.3 Otheroperatingexpenses 6.4 Extraordinaryexpenses 6.5 Incometaxes24 7. Other disclosures 7.1 Derivativetransactions 7.2 Valuationunits 7.3 Otherfinancialobligationsanddisclosuresreportedbelowthebalancesheet(liabilities) 7.4 Auditors’fees 7.5 Relatedpartytransactions 7.6 ExecutiveManagement(Geschäftsleitung)oftheParentCompany 7.7 ReceivablesfrommembersoftheExecutiveManagementoftheParentCompany 7.8 Numberofemployees 7.9 Nameandplaceofbusinessoftheparentcompany,informationabouttheconsolidatedfinancialstatements28 Consolidated Cash Flow Statement for Toyota Kreditbank Group for the period 1 April 2014 to 31 March 201529 Consolidated Statement of Changes in Equity of Toyota Kreditbank GmbH as at 31 March 201530 Segment information

NotestotheconsolidatedfinancialstatementsofToyotaKreditbankGmbHforthe2014/2015financialyear

Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

10 – 11

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Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

Provisions and accruals are recognised for all identified risks and for liabilities of uncertain timing and amount. Provisions and accruals with a remaining term of more than one year are discounted to their present value using the average market interest rate for the past seven years (corresponding to their remaining term) in accordance with § 253 (2) sentence 1 HGB.

The pension provision for employees in Germany is calculated for HGB purposes at 31 March 2015 using the projected-unit-credit method based on a discount rate of 4.37% (2013/2014: 4.83%), and assumed future salary and pension increases of 3% (2013/2014: 3%) and 2% (2013/2014: 2%) respectively. The 2005 mortality tables issued by Prof. Dr. Klaus Heubeck are used as the basis of calculation. Toyota Kreditbank GmbH has set up Contractual Trust Arrange-ments whereby assets designated to fulfil pension obligations have been separated from other assets and transferred to trustees. Assets which cannot be accessed by other creditors and have been designated as being held exclusively to settle pension obligations, are offset at the balance sheet date against the relevant obligations relating to fund-performance-based commitments in accordance with § 246 (2) sentence 2 HGB. The surplus of assets over obligations is presented within the line item "Other assets". Pension obligations resulting from the bank's previous arrangements and from guaranteed pen-sions are presented within the line item "Provisions and similar obligations". In these cases, there are no separate plan assets.

The provision for pre-retirement part-time working ar- rangements was measured at 31 March 2015 in the HGB balance sheet using the projected-unit-credit method and a discount rate of 3.06% (31 March 2014: 3.68%).

The financial statements of group subsidiaries denominated in a foreign currency are converted into Euro at 31 March 2015 in accordance with § 308a HGB. The translation differ-ence arising is reported within the group entity as the cur-rency translation difference on equity.

Foreign currency assets and liabilities are translated in accor- dance with § 256a HGB (in conjunction with § 340h HGB). The provisions contained in § 256a HGB are not applied if valuation units are created pursuant to § 254 HGB as hedges for foreign currency items.

The loss provisioning expense is reported in the income statement net of recoveries.

Deferred taxes are calculated on timing differences between the HGB carrying amounts and the tax bases of assets, liabil-ities and deferred items which are expected to reverse in subsequent years.

taking account of cash flows achieved in the past and collat- eral held. Specific allowances are recognised on dealer finan-cing receivables on the basis of a case-by-case assessment. General allowances are recognised on a contract-by-contract basis, taking account of the likelihood of default and the ex-pected loss. For the purposes of determining the probability of default and the expected loss, the Group takes account, at a minimum, of the parameters which it also uses to measure equity coverage of default risks using an internal ratings-based approach (IRBA).

Bonds and other fixed-interest-bearing securities are clas-sified as current assets and measured in accordance with the strict lowest value principle pursuant to § 340e (1) sentence 2 HGB in conjunction with § 253 (4) HGB.

Investments are stated at the lower of acquisition cost or fair value.

Leasing assets relate primarily to leased-out vehicles. Leasing assets are stated at acquisition cost less accumulated sched-uled depreciation and impairment losses. The provision for potential residual value risks has been offset against leased assets on the assets side of the balance sheet.

As a general rule, leasing assets are depreciated straight line down to their agreed residual value over the term of the lease. Leasing assets of the Norwegian and Swedish branches are depreciated systematically down to an agreed residual value over the duration of the contract with the monthly deprecia-tion charge measured on the basis of the amount of capital tied up in the asset. Depending on their terms, the leasing contracts are treated either as operating leases or as finance leases and the underlying assets are accordingly shown either as leasing assets or as customer receivables.

Software at cost of purchase less scheduled straight-line amortisation over three to five years is shown under intan- gible assets.

Tangible fixed assets are stated at cost less scheduled depre-ciation. Assets are all depreciated on a straight-line basis over their expected useful lives. The impairment loss previously recorded on buildings in accordance with § 7 (5) no. 1 EStG was retained in accordance with Art. 67 (4) sentence 1 EGHGB.

Liabilities are stated at their expected settlement amount, including accrued interest.

Deferred income comprises interest and fees arising primarily from the instalment credit business. It is released to income under the so-called "Rule-of-78 method". This item is also used to show special leasing payments from leasing business. By way of analogy with the leasing instalments, these are released on a straight-line basis over the term of the contract.

For this reason, Koromo S.A. is included as a subsidiary in the consolidated financial statements of Toyota Kreditbank GmbH in accordance with § 290 (2) no. 4 HGB.

All subsidiaries are fully consolidated.

3. Consolidation principlesThe consolidated financial statements have been prepared uni-formly using the accounting policies of Toyota Kreditbank GmbH described below. Where necessary, the financial statements of the included companies have been adjusted to bring them into line with the classification regulations used by the parent company.

The cost of investment in the consolidated subsidiaries, Toyota Leasing GmbH, Toyota Bank Polska Spolka Akcyjna, Toyota Leasing Polska Sp. z o.o. and ZAO Toyota Bank has been con-solidated pursuant to Art. 66 (3) sentence 4 EGHG using the German book value method in accordance with § 301 (1) sen-tence 2 no. 1 HGB (old version).

The equity capital of the three Dutch foundations is presented in the consolidated financial statements within other liabilities due to the restricted liability function of these entities (and not as minority interests).

Intragroup receivables, payables, income and expenses bet-ween consolidated entities are eliminated.

Inter-company profits and losses, which would have had to be eliminated in accordance with section 304 (1) HGB, did not occur in the year under review.

4. Accounting policies, foreign currency translationCustomer receivables resulting from instalment credit trans-actions and finance lease business are stated including inter-est and charges for the remaining term. Other customer receivables and receivables due from banks as well as other assets are stated at their nominal amounts.

Specific allowances are recognised to cover foreseeable risks resulting from customer receivables. The general bad debt allowance takes account of the general credit risk relating to all business lines. Where deemed prudent and appropriate, general allowances have also been recognised over and above the amounts allowed for tax purposes.

In the case of receivables from customers, specific allowances are recognised for contracts allocated to a default risk cat- egory or for which there has been a delay in payment in excess of a defined period. The level of the specific allowance is deter-mined on the basis of expected cash flows from each contract,

1. General disclosuresThe consolidated financial statements for the period ended 31 March 2015 of Toyota Kreditbank GmbH have been prepared in accordance with the regulations of the Handelsgesetzbuch (German Commercial Code) and the requirements of the German Accounting Regulation for Banks and Financial Institu-tions (RechKredV), taking account of the specific requirements of the Limited Liability Company Law (GmbHG). The structure corresponds to the formats required for banks as specified in section 2 et seq. RechKredV. The applicable accounting stan-dards of the German Financial Reporting Committee (DRSC) have also been taken into consideration.

2. Group reporting entityBesides the parent company, Toyota Kreditbank GmbH, the consolidated financial statements for the year ended 31 March 2015 include the following German and foreign subsidiaries:

― Toyota Leasing GmbH, Cologne ― Toyota Bank Polska Spolka Akcýjna, Warsaw, Poland ― Toyota Leasing Polska Sp. z o.o., Warsaw, Poland ― ZAO Toyota Bank, Moscow, Russia ― Koromo S.A, Luxembourg

Toyota Kreditbank GmbH holds 100% of the shares of Toyota Leasing GmbH and Toyota Bank Polska Spolka Akcýjna.

Toyota Bank Polska Spolka Akcyjna holds 100% of the shares of Toyota Leasing Polska Sp. z o.o.

Toyota Kreditbank GmbH directly holds 99.9% of the shares of ZAO Toyota Bank, with the remainder held by Toyota Leasing GmbH. Koromo S.A., Luxembourg, is a special purpose entity. The shares of the special purpose entity are held by three Dutch foundations, each of which have an investment of TEUR 33 in the company’s equity. Toyota Kreditbank GmbH has again executed an ABS transaction with Koromo S.A., Luxembourg, during the 2014/2015 financial year and securitised some of its portfolio of instalment credit receivables. The ABS trans- action in place since the 2010/2011 financial year was closed out prior to the execution of the new ABS transaction.

All of the bonds issued by the special purpose purchasing entity to refinance these transactions have been acquired by Toyota Kreditbank GmbH. As a result of the sale of receivables to the special purpose entity and the parallel acquisition of bonds by the bank, the innate credit risk attached to the re-ceivables rests with Toyota Kreditbank GmbH. The receivable balances continue to be credit receivables for the bank in sub- stance and are therefore retained on the balance sheet on the line "Customer receivables".

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Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

Customer receivables include foreign currency amounts of TEUR 2,243,254 (31 March 2014: TEUR 2,418,700).

5. Explanatory notes to the balance sheet

5.1 Cash reserveThe cash reserve includes foreign currency amounts of TEUR 16,994 (31 March 2014: TEUR 25,030).

In addition to the balance with the Deutsche Bundesbank, cash balances with central banks related to the National Bank of Poland amounting to TEUR 12,356 (31 March 2014: TEUR 17,105) and to the Central Bank of Russia amounting to TEUR 4,638 (31 March 2014: TEUR 7,925).

Cash on hand amounting to TEUR 45 (31 March 2014: TEUR 20) and balances with central banks amounting to TEUR 33,881 (31 March 2014: TEUR 39,711) correspond to cash funds re-ported in the consolidated cash flow statement.

5.2 Receivables from banksReceivables from banks have the following remaining terms:

Remaining term of 31/03/2015 31/03/2014

up to three months TEUR 104,077 40,030more than three months and up to one year TEUR 20,006 20,029more than one year and up to five years TEUR 9,008 9,000

Receivables from banks include foreign currency amounts totalling TEUR 114,567 (31 March 2014: TEUR 47,668).

5.3 Receivables from customersThe caption comprises instalment credits from the financing business, lease receivables, dealer financing credits and residual-value receivables payable on a daily basis. Specific and general allowances including a provision to cover doubtful receivables and the general credit risk have been deducted from the receiv-ables.

The figure stated for receivables from customers includes an amount of TEUR 37,473 (31 March 2014: TEUR 27,845) for receivables due from affiliated companies.

Analysed by remaining terms, receivables from customers are broken down as follows:

Remaining term of 31/03/2015 31/03/2014

up to three months TEUR 1,080,338 1,094,740more than three months and up to one year TEUR 982,300 886,681more than one year and up to five years TEUR 3,413,923 3,639,995more than five years TEUR 553,900 495,656

Deferred tax liabilities at 31 March 2015 result primarily from the different useful lives utilised to depreciate leasing assets of the Toyota Kreditbank GmbH branch in Norway. Deferred tax assets arise at 31 March 2015 mainly for Germany, the branch in France and the subsidiary in Poland. The timing differ-ences at 31 March 2015 relate mostly to the different carrying amounts of leasing assets, provisions and write-downs.

Deferred taxes are measured on the basis of a combined income tax rate which covers corporation tax, municipal trade tax and the solidarity surcharge. Deferred taxes relating to the foreign branches of Toyota Kreditbank GmbH and to the foreign sub-sidiaries are measured using the tax rates applicable in the re-levant tax jurisdiction.

Deferred tax liabilities were set off against deferred tax assets at an overall group level. A surplus of deferred tax assets over deferred tax liabilities is not recognised on the basis of the accounting option available in § 274 (1) sentence 2 HGB.

The market values of derivative financial instruments have been determined using IT-based valuation methods (discounted cash flow method). Fair values are determined by the parent company, Toyota Financial Services Corporation. Derivative financial instruments are not recognised since they are always used as hedging instruments in valuation units. Only the ac-crued interest is shown in the balance sheet.

In compliance with IDW RS BFA 3, for the purposes of calcula-ting a possible net obligation on transactions with interest-related financial instruments allocated to the banking book, an overall assessment is made of all interest-bearing assets and liabilities (including derivatives), also taking account of all risk-related and administrative costs expected to be in- curred until the transactions have been processed in full. This calculation takes account of specific refinancing opportu- nities available in each relevant accounting period. There was no net obligation at the end of the reporting period, as a result of which it was not necessary to recognise a provision at that date.

Interest rate swaps are used to manage the general interest rate risk in the banking book. Interest rate risks are monitored at a banking book level and risks quantified using a value-at risk (VaR) model. The VaR model is used to demonstrate that the interest rate derivatives have a risk-reducing impact.

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Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

5.8 Tangible assetsThe figures shown under buildings comprise the purchase values less scheduled depreciation of the business premises of Toyota Kreditbank GmbH as well as a production facility which is used by an affiliated company of the TKG Group. Buildings used for Toyota Kreditbank GmbH’s own business have a carrying amount of TEUR 1,342 (31 March 2014: TEUR 1,654). The corresponding land is leased on a long-term basis from Toyota Deutschland GmbH.

Toyota Kreditbank GmbH exercises the option available in Art. 67 (4) sentence 1 EGHGB, whereby carrying amounts of assets that have been reduced by depreciation pursuant to § 254 HGB (old version) can be rolled forward for the purposes of depre-ciating the buildings. The depreciation rate is unchanged at 2.5%, in accordance with section 7 (5) EStG.

5.4 Bonds and other fixed interest bearing securities

Issuer Term beginsNominal amount

(Million) Interest rate (%) Maturity

Narodowy Bank Polski (Polish National Bank) 27/03/2015 PLN 220.0 (EUR 53.9) 1.50 03/04/2015

Polish Republic 18/04/2014 PLN 30 (EUR 7.3)

6-months WIBOR + 2.80 25/01/2017

Polish Republic 18/04/2014 PLN 30 (EUR 7.3)

6-months WIBOR + 2.80 25/01/2017

Polish Republic 08/12/2014 PLN 30 (EUR 7.3)

6-months WIBOR + 2.15 25/01/2019

These state bonds are eligible for a stock exchange listing and are actually listed.

5.5 InvestmentsToyota Kreditbank GmbH has a 0.01% shareholding in Liquiditäts-Konsortialbank GmbH i. L., Frankfurt am Main.

5.6 Leasing assetsMovements in leasing assets are shown in the following table by parent company and subsidiary:

in TEUR

2014/15Toyota Kreditbank

GmbH

2014/15Toyota Leasing

GmbH

2014/15Total

Acquisition cost Opening balance

636,798 672,642 1,309,440

Translation difference -10,298 0 -10,298Additions 244,422 201,809 446,231Disposals 198,535 297,633 496,168Closing balance 672,387 576,818 1,249,205DepreciationOpening balance

169,865 230,534 400,399

Translation difference -2,994 0 -2,994Additions 106,797 99,198 205,995Disposals 101,205 150,245 251,450Closing balance 172,463 179,487 351,950Carrying amounts 499,924 397,331 897,255

5.7 Intangible assetsIntangible assets consist mainly of EDP software.

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5.9 Fixed assets movement scheduleMovements in investments in other companies, leasing assets and intangible and tangible fixed assets are shown in the following table:

Amounts in TEUR Cost Depreciation, amortisation and write-downs Carrying amounts

01/04/2014 Currency translation

Additions Disposals 31/03/2015 01/04/2014 Currency translation

Additions Disposals 31/03/2015 31/03/2014 31/03/2015

Participations 19 0 0 0 19 0 0 0 0 0 19 19

Leasing assets 1,309,440 -10,298 446,231 496,168 1,249,205 400,399 -2,994 205,995 251,450 351,950 909,041 897,255

Intangible assets 38,163 -952 3,007 277 39,941 31,566 -531 2,421 132 33,324 6,597 6,617

Buildings 32,626 0 6 0 32,632 28,382 0 820 0 29,202 4,244 3,430

Other operational and office equipment

30,191 -1,810 7,655 6,335 29,701 18,122 -1,373 3,174 1,378 18,545 12,069 11,156

Tangible assets 62,817 -1,810 7,661 6,335 62,333 46,504 -1,373 3,994 1,378 47,747 16,313 14,586

Total 1,410,439 -13,060 456,899 502,780 1,351,498 478,469 -4,898 212,410 252,960 433,021 931,970 918,477

5.10 Other assetsThis line item comprises mainly taxes receivable amounting to TEUR 41,844 (31 March 2014: TEUR 16,847), receivables from affiliated companies amounting to TEUR 3,570 (31 March 2014: TEUR 1,219) as well as trade accounts receivable amounting to TEUR 3,269 (31 March 2014: TEUR 4,577).

Other assets include foreign currency amounts of TEUR 13,778 (31 March 2014: TEUR 15,133).

5.11 Foreign currency assetsAssets denominated in foreign currencies totalled TEUR 2,680,655 (31 March 2014: TEUR 2,753,725).

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TEUR 4,337 (31 March 2014: TEUR 3,881). Contributions set aside for investments in designated plan assets amounting to TEUR 128 (31 March 2014: TEUR 126) – which are not due until January of the following year – are reported at the end of the reporting period in the line item "Provisions for pensions and similar obligations".

The amount by which pension plan assets exceed obligations is presented in the balance sheet line "Surplus of plan assets over liabilities". The designated plan assets had an acquisition cost of TEUR 4,552 (31 March 2014: TEUR 3,965).

Other provisions consist mainly of provisions for dealer bonuses, personnel related obligations, maintenance costs, outstanding supplier invoices, pending losses on onerous contracts and litigation.

5.12 Prepaid expenses and deferred chargesThis line item includes prepaid general administrative expenses amounting to TEUR 6,128 (31 March 2014: TEUR 5,050), pre-paid expenses for service work to be performed in conjunction with full service lease business amounting to TEUR 5,000 (31 March 2014: TEUR 5,341) and guarantee fees of TEUR 206 (31 March 2014: TEUR 738) paid to raise cash funds. Expenses for service work to be performed relates primarily to the Spanish branch of Toyota Kreditbank GmbH and the Polish subsidiary company. This expenditure is spread over the term of the rele-vant leases.

5.13 Liabilities to banksThe following shows an analysis, by remaining terms, of bank liabilities having fixed terms or notice periods:

31/03/2015 31/03/2014

up to three months TEUR 352,440 468,735more than three months and up to one year TEUR 647,338 589,409more than one year and up to five years TEUR 1,622,852 1,490,772more than five years TEUR 15,737 17,445

Included in liabilities to banks are foreign currency amounts equivalent to TEUR 675,787 (31 March 2014: TEUR 783,923).

5.14 Liabilities to customersLiabilities to customers with fixed terms or notice periods are analysed, by remaining terms, as follows:

31/03/2015 31/03/2014

up to three months TEUR 388,183 304,585more than three months and up to one year TEUR 684,056 608,898more than one year and up to five years TEUR 1,300,861 1,477,486more than five years TEUR 5,126 0

The liabilities relate mainly to payables to affiliated companies amounting to TEUR 2,260,138 (31 March 2014: TEUR 1,819,182). Liabilities to customers include foreign currency liabilities of TEUR 1,664,334 (31 March 2014: TEUR 1,603,086).

5.15 Securitised liabilitiesAs at the end of the previous years, securitised liabilities reported at 31 March 2014 relate to issued commercial paper.

Securitised liabilities include foreign currency amounts equivalent to TEUR 387,151 (31 March 2014: TEUR 396,629) and include liabilities denominated in British pounds equiva-lent to TEUR 275,659 (31 March 2014: TEUR 323,396) and in US Dollars equivalent to TEUR 111,492 (TEUR 73,233). All of these securitised liabilities fall due for payment during the financial year ending 31 March 2016.

5.16 Other liabilitiesThis item comprises mainly payables to affiliated companies, including liabilities relating to the factoring business of the Italian branch of Toyota Kreditbank GmbH amounting to TEUR 172,203 (31 March 2014: TEUR 163,618), payables to contract dealerships amounting to TEUR 9,175 (31 March 2014: TEUR 16,066), trade accounts payable amounting to TEUR 6,054 (31 March 2014: TEUR 4,791) and tax liabilities amounting to TEUR 5,447 (31 March 2014: TEUR 3,001). This line item also includes unrealised exchange gains of TEUR 3,973 (31 March 2014: TEUR 6,342), resulting from the currency translation of the allocated branch capital and loans of Toyota Kreditbank GmbH.

In total, other liabilities include foreign currency liabilities amounting to TEUR 24,482 (31 March 2014: TEUR 31,710).

Other liabilities at 31 March 2015 include payables to the shareholder of the parent company, Toyota Financial Services Corporation, amounting to TEUR 311 (31 March 2014: TEUR 311).

5.17 Deferred incomeThe balance is made up primarily of interest and fees in con-nection with the instalment credit business and attributable to future periods, as well as upfront payments arising in con-nection with lease contracts. This item also includes discounts of TEUR 24 (31 March 2014: TEUR 50).

5.18 Accruals and provisionsMarketable securities designated to cover specified pension obligations and separated from other assets by Toyota Kredit-bank GmbH in conjunction with a Contractual Trust Agreement, are offset against the corresponding obligations. Designated plan assets with a fair value of TEUR 5,045 (31 March 2014: TEUR 4,140) compare with obligations amounting to

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5.19 Subordinated liabilitiesThis item comprises seven deposits from Toyota Motor Finance (Netherlands) B.V., Amsterdam, Netherlands.

Term begins MillionInterest rate

(%)Interest rate

(applicable until)Renewed interest rate

to be based on Maturity

07/11/2008 RUB 350.0(EUR 5.2)

9.60 06/11/2015 Fixed interest rate p. a. 06/11/2015

28/01/2011 40.0 0.904 28/04/2014 3-months EURIBOR 28/01/2016

11/03/2011 RUB 550.0(EUR 8.8)

8.16 12/03/2018 Fixed interest rate p. a. 12/03/2018

14/03/2007 PLN 69.5(EUR 17.0)

2.15 16/06/2014 3-months WIBOR 14/03/2019

01/08/2012 RUB 850,0(EUR 13.6)

8.66 01/08/2019 Fixed interest rate p. a. 01/08/2019

Interest expense on subordinated liabilities for the financial year amounted to TEUR 3,633 (2013/2014: TEUR 2,256).

In the event of the bank’s insolvency, compromise settle-ments or similar proceedings to prevent the bank’s insolvency, the liabilities are subordinated behind the unsubordinated claims of all other creditors. There is no option to convert the subordinated liabilities before their maturity date.

Accrued interest at the end of the reporting period amounted to TEUR 376 (31 March 2014: TEUR 491).

5.20 Foreign currency liabilitiesLiabilities denominated in foreign currencies total TEUR 3,191,439 (31 March 2014: TEUR 3,121,429).

6. Explanatory notes to the income statement

6.1 Other operating incomeThis item consists mainly of leasing revenues of TEUR 272,056 (2013/2014: TEUR 304,406). Rent and other services charged to Toyota Group companies totalled TEUR 4,890 (2013/2014: TEUR 5,118). This item includes a figure of TEUR 2,478 (2013/2014: TEUR 1,798) attributable to other periods.

6.2 Depreciation and amortisation of intangible assets, tangible fixed assets and leasing assetsDepreciation of leasing assets relating to the branches of Toyota Kreditbank GmbH in France, Sweden, Spain, Norway, to Toyota Leasing Polska Sp. z.o.o. and to Toyota Leasing GmbH amounted to TEUR 204,426 (2013/2014: TEUR 223,750).

6.3 Other operating expensesThis item consists mainly of losses on the disposal of items of operational and office equipment amounting to TEUR 1,115 (2013/2014: TEUR 795) and expenses relating to leasing business amounting to TEUR 6,568 (2013/2014: TEUR 4,655). Other operating expenses include an expense of TEUR 2,070 (2013/2014: TEUR 1,127) relating to interest adjustments arising from discounting long-term provisions. Other opera-ting expenses includes prior year expenses of TEUR 2 (2013/ 2014: TEUR 8) resulting from the ongoing tax field audit in Germany.

Other operating expenses includes exchange rate losses amounting to EUR 3,788 (2013/2014: TEUR 23), with the increase compared to the previous year being attributable to the measurement of allocated branch capital.

6.4 Extraordinary expensesExtraordinary expenses amounting to TEUR 19,960 (2013/ 2014: TEUR 0) relate entirely to the reimbursement of admin-istrative fees to customers following the ruling of the German Federal Court of Justice (BGH) in October 2014 regarding the time limit for bringing claims in Germany.

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6.5 Income taxesThis item comprises current German and foreign income taxes.

FY 2014/15 FY 2013/14

Expected tax expense/ income (-) at an income tax rate of 32.45% in Germany for the 2013/14 financial year 28,421 40,311

Tax rate differences on foreign earnings - 3,330 - 2,973Non-deductible expenses - 1,123 6,261Other 253 - 217Reported tax expense/ income (-) 24,221 43,382

The effective tax rate was 27.7% (2013/2014: 34.9%).

7. Other disclosures

7.1 Derivative transactionsDerivative instruments have been entered into in order to interest and currency risks. These are interest swaps, interest/currency swaps and currency futures which are used exclusively for hedging purposes.

Interest rate swaps are used to manage the interest rate risks in the banking book.

A Total Return Swap is in place to cover the currency and country risk for Russia. This swap relates to the issue of subordinated loan of RUB 350 million by Toyota Motor Finance (Netherlands) B.V., Amsterdam, Netherlands to the bank’s Russian subsidiary. An appropriate provision has been recognised to cover the negative fair value of the instrument.

Derivative financial instruments comprised the following:

in TEUR

Nominal amounts

31/03/2014

Nominal amounts

31/03/2015

Fair values positive

31/03/2014

Fair values positive

31/03/2015

Fair values negative

31/03/2014

Fair values negative

31/03/2015

Interest rate risks ― interest swaps

277,850 87,850 0 0 7,642 3,834

Interest rate/currency risks ― interest rate/currency swaps

277,868 252,748 1,112 40,856 22,856 0

Currency risks ― forward currency contracts

396,929 387,621 1,554 34,167 2,007 655

Total return swap 10,150 10,150 0 0 3,536 5,034Derivative instruments - total 962,797 738,369 2,666 75,023 36,041 9,523

The above figures are "dirty prices" which represent the sum of "clean price" and accrued interest.

7.2 Valuation unitsAs a general rule, the interest rate/currency swaps and forward currency contracts are matched by a liabilities-side hedged item with a corresponding opposite risk profile (micro-hedge).

The interest rate swaps are not matched by any comparable liabilities-side underlying items. These swaps are used for portfolio hedging purposes (macro-hedge). The risk mitigating effect is documented by means of various monthly calculations.

The rules for the offsetting measurement of hedged and hedg-ing items in conjunction with interest rate/currency swaps and forward currency contracts were applied using the so-called "Through Posting Method" (Durchbuchungsmethode). Fair value gains and losses arising on hedged and hedging items (including cash flows) will offset each other over the terms of those items due to the fact that amounts, maturities, interest rates, currency, interest rate revision and repayment dates are identical.

The carrying amounts of underlying transactions included in valuation units pursuant to § 254 HGB and hedged volumes at the balance sheet date were as follows:

Amounts in TEURUnderlying

transactions Hedged amount Maximum term

Interest rate/currency risks 253,121 253,121 2017Currency risks 387,151 387,151 2015Total amount 640,272 640,272

7.3 Other financial obligations and disclosures reported below the balance sheet (liabilities)Financial commitments not recognised on the balance sheet or reported below the balance sheet as contingent liabilities relate to the commitment to contribute additional capital of TEUR 100 in conjunction with the investment in Liquiditäts-Konsortialbank GmbH i. L., Frankfurt am Main.

Obligations arising from lease, rental, leasing and maintenance agreements at the end of the reporting periods are as follows:

Due by 31 March 2016 TEUR  7,604Due between 1 April 2016 and 31 March 2020 TEUR 9,875Due after 31 March 2020 TEUR 1,878Total TEUR 19,357

of which due to affiliated companies TEUR 4,294

Commitments to lessees of Toyota Leasing GmbH for ordered vehicles amounted to TEUR 21,864 (31 March 2014: TEUR 24,817).

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Irrevocable credit commitments reported below the balance sheet mainly relate to commitments for loans to dealers and retail customers and are subject to the normal credit monitor-ing processes that apply to all credit exposures. An increased credit loss risk has not been identified. Claims could arise at any time.

7.4 Auditors’ feesKPMG AG Wirtschaftsprüfungsgesellschaft is the external auditor of Toyota Kreditbank GmbH. Fees charged by KPMG AG Wirtschaftsprüfungsgesellschaft and by non-German entities of the KPMG network for the financial year were as follows:

FY 2014/15 FY 2013/14Year end audits TEUR 744 831Other attestation services TEUR 0 135Tax advisory services TEUR 216 405Other services TEUR 197 303Total TEUR 1,157 1,674

7.5 Related party transactionsRelated parties are defined as persons or entities that can be influenced by the reporting entity or who can exercise influence over the Group. Persons or entities that are already included as consolidated companies in the consolidated financial state-ments of Toyota Kreditbank GmbH are not disclosed below.

Toyota Financial Services Corporation, Nagoya, Japan, is the sole shareholder of Toyota Kreditbank GmbH. Business relations between the companies are conducted on an arms' length basis. Toyota Financial Services Corporation also guarantees the Group’s European commercial paper programme.

Toyota Motor Finance (Netherlands) B.V. provides Toyota Kredit-bank GmbH refinancing funds subject to normal market con-ditions, and is also a subordinate lender. Toyota Motor Finance (Netherlands) B.V. also continues to guarantee the joint capital market programme of Toyota Bank Polska S.A. and Toyota Leasing Polska Sp. z o.o. Liabilities at the end of the reporting period amounted to TEUR 2,345,554 (31 March 2014: TEUR 2,472,565), expenses during the year under report totalled TEUR 62,168 (2013/2014: TEUR 66,858).

In order to support sales promotion actions, Toyota Kredit-bank GmbH receives financial subsidies from the importer companies of Toyota Motor Corporation, Toyota City, Japan.

7.6 Executive Management (Geschäftsleitung) of the Parent CompanyThe following persons acted as directors during the year under review:

— Christian Ruben, Diplom-Kaufmann — Ivo Ljubica, Diplom-Ökonom

Mr. Ruben and Mr. Ljubica are directors (Geschäftsführer) of both Toyota Kreditbank GmbH and Toyota Leasing GmbH.

Remuneration paid to board members during the financial year under review totalled TEUR 772.

Pension provisions in respect of former members of management amounted to TEUR 3,914. Pension payments in the financial year under review amounted to TEUR 268.

7.7 Receivables from members of the Executive Management of the Parent CompanyReceivables from Board Members at the end of the reporting period totalled TEUR 0.

7.8 Number of employeesThe average number of persons employed during the year under review was 705 (2013/2014: 704), comprising 250 (2013/2014: 250) in Germany, 81 (2013/2014: 83) in France, 27 (2013/2014: 26) in Sweden, 28 (2013/2014: 29) in Norway, 47 (2013/2014: 46) in Spain, 12 (2013/2014: 17) in Italy, 153 (2013/2014: 146) in Russia and 107 (2013/2014: 108) in Poland.

7.9 Name and place of business of the parent company, information about the consolidated financial statementsImmediate parent company:

Toyota Financial Services CorporationNagoya Lucent Tower 15F, 6-1, Ushijima-cho, Nishi-ku, Nagoya 451-6015, Japan

Ultimate parent company:

Toyota Motor Corporation1, Toyota-cho, Toyota City, Aichi Prefecture 441-8571, Japan

The consolidated financial statements of Toyota Kreditbank GmbH for the year ended 31 March 2015 are published in Germany in the Electronic Federal Gazette. Toyota Kreditbank GmbH is part of the sub-group of Toyota Financial Services Corporation, Nagoya, Japan. The financial statements of the sub-group are included in the consolidated financial statements of Toyota Motor Corporation, Toyota City, Japan. The consolidated financial statements are disclosed in Nagoya and Toyota City, Japan.

Cologne, 16 July 2015

Toyota Kreditbank GmbH

Christian Ruben Ivo Ljubica

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Consolidated Cash Flow Statement for Toyota Kreditbank Group for the period 1 April 2014 to 31 March 2015The cash flow statement shows the changes in cash funds for the group of Toyota Kreditbank GmbH. The cash flow statement consists of the cash flows from operating, investing and financing activities. The sum of these cash flows is in line with the change of the cash funds. The cash flow statement for the group of Toyota Kreditbank GmbH has been drawn up in accordance with German Accounting Standard No. 2 and 2-10 of the German Financial Reporting Standards Board.

Consolidated cash flow statement of Toyota Kreditbank Group2014/15

TEUR2013/14

TEUR

1 Net income for the year 83,322 79,983

  Non-cash items on reconciling items to the cash flow from operating activities: 0

2 Depreciation, amortisation, write-downs/allowances and reversals of write-downs/allowances in respect of receivables, tangibles and financial assets

249,096 263,260

3 Increase/decrease in provisions 4,934 2,2514 Other non-cash income/expenses 0 05 Gains/losses on the sale of financial and tangible assets 5,326 -6,8126 Other adjustments (net) -206,095 -180,9607 Sub-total 136,583 157,722  Change in assets and liabilities relating to operating

activities:

8 Receivables from a — banks -67,867 -33,978b — customers 49,658 -135,8159 Securities (not classified as fixed assets) -35,561 10,58610 Other assets relating to operating activities -23,861 6,16711 Liabilities due to a — banks 93,354 20,342b — customers -39,137 60,51012 Securitised debt 33,082 -30,43013 Other liabilities relating to operating activities -39,171 -30,85714 Interest and dividends received 352,653 367,56415 Interest paid -122,839 -135,23416 Extrardinary payments -19,96017 Income tax paid -23,679 -51,68518 Cash flow from operating activities 293,255 204,89219 Cash received from disposals of a — tangible fixed assets -1,124 4,598b — leasing assets 245,584 303,957c — intangible fixed assets 145 020 Cash paid for investments in 0a — financial assets 0 0b — tangible fixed assets -7,661 -8,641c — leasing assets -446,231 -422,768d — intangible fixed assets -3,007 -3,17921 Cash flow from investing activities -212,294 -126,03322 Cash received from equity provided 0 45,64223 Dividends to Shareholder -32,530 -26,60024 Movement from subordinated loans -20,000 -60,00025 Cash flow from financing activities -52,530 -40,95826 Cash relevant change in cash funds (Total calculated on the basis of 17,20,24) 28,431 37,90127 Change in cash funds due to exchange rates, consolidation and valuation -34,236 -22,00328 Cash funds at the beginning of the period 39,731 23,83329 Cash funds at the end of the period 33,926 39,731

Breakdown of cash funds at the end of the period:

 31/03/2015

TEUR31/03/2014

TEUR

Cash 45 20Deposits with central banks 33,881 39,711Liquid funds at the end oft he period 33,926 39,731

Consolidated Statement of Changes in Equity of Toyota Kreditbank GmbH as at 31 March 2015Breakdown of consolidated equity:

TEUR Share capitalCapital surplus

Revenue reserves

Earnings brought forward

Group net income for

the yearTranslation differences Equity

As at 31 March 2013 30,000 300,201 304,523 0 109,731 1,244 745,699Addition from net income

0 0 0 0 79,983 0 79,983

Profit retained 2014 0 0 83,131 0 -83,131 0 0

Dividends paid 0 0 0 0 -26,600 0 -26,600Proceeds from capital injections

0 45,642 0 0 0 0 45,642

Translation differences 0 0 -684 0 0 -27,935 -28,619As at 31 March 2014 30,000 345,843 386,970 0 79,983 -26,691 816,105Addition from net income

0 0 0 0 63,362 0 63,362

Profit retained 2015 0 0 47,453 0 -47,453 0 0

Dividends paid 0 0 0 0 -32,530 0 -32,530Proceeds from capital injections

0 0 0 0 0 0 0

Translation differences 0 0 809 0 0 -35,711 -34,902

As at 31 March 2015 30,000 345,843 435,232 0 63,362 -62,402 812,035

Toyota Kreditbank GmbH’s capital is wholly owned by Toyota Financial Services Corporation (Japan).

The Board of Directors of the Toyota Kreditbank GmbH will propose to the shareholders’ meeting that a dividend of TEUR 28,000 from the net profit of Toyota Kreditbank GmbH (reduced by withholding tax payable in Germany) will be transferred to the shareholder Toyota Financial Services Corporation (Japan).

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Segment information for the Toyota Kreditbank GmbH Group for the period 1 April 2014 to 31 March 2015 (1/2)

The Toyota Kreditbank Group operates in Germany and, via its branches, in France, Sweden, Norway, Spain and Italy. The Group also has subsidiaries in Poland and Russia. In the year under review, the Group was engaged in the instalment credit and leasing business as well as in the financing of dealers’ car inventories, and provided loans for car dealers’ real estate and working capital.

Amounts are allocated to segments on the basis of the location of the registered office of the relevant branches and Group entities. Due to the close connection of the business activities with TKG head office, the special purpose entity Koromo S.A., Luxembourg, is allocated to the segment "Germany". All amounts relating to the balance sheet and income statements are presented in TEUR.

All figures are in TEUR, unless otherwise stated

Germany France Sweden Norway Spain Italy Poland

2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

Interest income 90,671 101,033 33,137 33,421 12,390 12,617 27,850 28,072 36,487 34,980 3,989 3,864 22,016 22,810comprising: ― Income from retail financing 75,302 81,051 28,281 28,344 11,546 11,464 27,145 27,319 34,945 33,522 0 0 6,782 7,853

― Income from dealer financing14,858 16,821 4,789 5,027 842 1,151 680 706 878 860 3,555 3,271 3,171 3,951

Interest expense 23,169 35,683 7,060 7,703 4,464 6,928 12,212 12,022 7,024 8,596 848 649 8,693 9,507Net interest result 67,502 65,350 26,077 25,718 7,926 5,689 15,638 16,050 29,463 26,384 3,141 3,215 13,323 13,303Risk provisioning expense -13,982 -2,567 -3,940 -6,512 -255 -366 -723 -1,462 -6,242 -7,303 -1,596 -1,545 -828 -2,148Net commission result -2,677 -4,365 555 513 -2,693 -2,781 1,781 479 -12,939 -6,333 2,119 1,700 -367 14Profit/loss leasing business 28,955 33,937 22,118 31,044 7,399 7,833 879 1,100 1,902 1,961 0 0 -355 -230Other operating income/ expenses, net -2,844 -1,496 -410 -172 -522 -421 -760 -304 264 -575 -342 -506 -553 -185

Administrative expenses -46,437 -45,003 -15,312 -15,323 -5,685 -5,014 -5,848 -5,685 -8,982 -8,197 -2,928 -2,762 -9,947 -9,828Profit/loss from ordinary activities

30,517 45,856 29,088 35,268 6,170 4,940 10,967 10,178 3,466 5,937 394 102 1,273 926

Extraordinary Expenses -19,960 0 0 0 0 0 0 0 0 0 0 0 0 0Taxes -1,303 -18,898 -8,305 -13,840 -8 -13 0 -5 -5,897 -4,529 -598 55 -3,266 -1,346Net income for the year 9,254 26,958 20,783 21,428 6,162 4,927 10,967 10,173 -2,431 1,408 -204 157 -1,993 -420Ratio of expenses/income before taxes

51.07% 48.17% 31.68% 26.83% 46.94% 48.59% 33.34% 32.81% 48.06% 38.24% 59.54% 62.64% 82.56% 76.17%

All figures are in TEUR, unless otherwise stated

Germany France Sweden Norway Spain Italy Poland

03/2015 03/2014 03/2015 03/2014 03/2015 03/2014 03/2015 03/2014 03/2015 03/2014 03/2015 03/2014 03/2015 03/2014

Liquid funds 16,931 14,691 0 0 0 0 0 0 1 1 0 8 12,356 17,106Receivables from banks 110,843 95,991 9,020 20,971 3,730 1,018 32,709 145 3 3 78,248 97,758 169 3,498Customer receivables 1,966,547 2,010,038 733,239 724,684 285,324 282,449 652,902 627,131 798,626 691,526 288,795 272,125 332,007 301,833Leasing assets 397,331 442,109 295,334 261,774 176,657 173,942 10,985 17,544 16,948 13,673 0 0 0 0Liabilities due to banks 1,907,966 1,796,618 183,652 155,384 3 3 26,045 8,416 200,448 181,161 0 28 49,006 77,778

Liabilities due to customers 504 80,323 514,516 564,618 402,923 398,558 572,551 546,708 261,288 231,750 100 100 312,325 228,899

Securitised debt 548,141 515,060 0 0 0 0 0 0 0 0 0 0 0 0Subordinated liabilities 40,063 60,081 0 0 0 0 0 0 0 0 0 0 17,028 16,685Equity/allotted capital 357,883 363,548 133,760 112,332 43,247 39,994 86,490 81,015 55,841 54,432 82 75 26,191 25,648

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Segment information for the Toyota Kreditbank GmbH Group for the period 1 April 2014 to 31 March 2015 (2/2)

All figures are in TEUR, unless otherwise stated

Russia Consolidation Total Total

2014/15 2013/14 2014/15 2013/14 2014/15 2013/14

Interest income 126,267 133,536 -336 -2,894 352,471 367,439comprising:-Income from retail financing 103,926 114,790 0 0 287,927 304,343-Income from dealer financing 15,181 17,795 0 0 43,954 49,582Interest expense 63,161 64,733 -336 -2,894 126,295 142,927Net interest result 63,106 68,803 0 0 226,176 224,512Risk provisioning expense -9,388 -11,281 0 0 -36,954 -33,184Net commission result -5,085 -10,741 0 0 -19,306 -21,514Profit/loss leasing business 0 0 0 0 60,898 75,645Other operating income/ expenses, net -1,282 -727 -491 -489 -6,940 -4,875

Administrative expenses -20,622 -25,038 491 489 -115,270 -116,361Profit/loss from ordinary activities 26,729 21,016 0 0 108,604 124,223Extraordinary Expenses 0 0 0 0 -19,960 0Taxes -5,906 -5,664 0 0 -25,283 -44,240Net income for the year 20,823 15,352 0 0 63,361 79,983Ratio of expenses/income before 36.35% 43.67% 44.19% 42.50%taxes

All figures are in TEUR, unless otherwise stated

Russia Consolidation Total Total

03/2015 03/2014 03/2015 03/2014 03/2015 03/2014

Liquid funds 4,638 7,925 0 0 33,926 39,731Receivables from banks 77,959 43,007 0 -17,577 312,681 244,814Customer receivables 973,021 1,207,286 0 0 6,030,461 6,117,072Leasing assets 0 0 0 0 897,255 909,042Liabilities due to banks 347,613 419,567 0 -17,577 2,714,733 2,621,378Liabilities due to customers 376,535 428,921 0 0 2,440,742 2,479,877Securitised debt 0 0 0 0 548,141 515,060Subordinated liabilities 28,324 36,259 0 0 85,415 113,025Equity/allotted capital 108,541 139,061 0 0 812,035 816,105

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ToyotaKreditbankGmbH GroupManagementReportforthe2014/2015financialyear

36 A. General Information on the Toyota Kreditbank Group38 B. Report on Economic Position 1.Generalandsectorspecificenvironment 2.Reviewofoperations 3.Analysisofnetassets,financialpositionandresultsofoperations a.Earningsperformance b.Netassetsandfinancialposition 4.Keyperformanceindicators50 C. Events after the end of the reporting period50 D. Opportunities and Risks Report 1.Riskmanagement a.Riskmanagementorganisation b.Riskmanagementprocess c.Riskstrategy d.Relevantriskcategories e.Risk-bearingcapacity 2.Riskcategories a.Creditrisk b.Marketrisk c.Liquidityrisk d.Operationalrisks e.Businessrisk 3.Summariseddescriptionofrisksituation69 E. Outlook 1.Futuremacro-economicsituation 2.ReviewofoperationsoftheToyotaKreditbankGroup 72 Country by Country Reporting73 Auditors’ Report

Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

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Foreword Consolidated financial statements Report Auditors’ Report

Toyota Kreditbank is a classic "captive bank", whose principal activity is the financing of Toyota and Lexus brand vehicles manufactured by the Toyota Group. In the case of new cars, financing is provided primarily for Toyota and Lexus brand vehicles. In the case of used cars, other brands are also fi-nanced. The range of services on offer is only comparable to that of a "universal" bank to a limited extent, since the busi-ness model is aimed almost entirely at financing the relevant brands. For this reason, performance is dependent to a large extent on the volume of cars sold within the operating terri-tory. The financing products offered by the Toyota Kreditbank Group for Toyota and Lexus vehicles have to compete with those offered by other banks and German savings banks (Sparkassen).

The range of financing products on offer in Germany com- prises traditional loan contracts, final instalment financing arrangements and the sale of leasing products. This range of financing products is supplemented by so-called "package" products offered in conjunction with Toyota Insurance Service and Aioi Nissay Dowa Life Insurance of Europe AG, Ismaning, and with Toyota Motor Europe SA/ NV Brussels, Belgium. In addition to a reasonable and fixed financing amount, these all-inclusive products include access to TOYOTA service facili-ties, a follow-on and mobility guarantee and credit insurance. The customer can also opt to add car insurance (with rebate protection) to the package.

The Toyota Kreditbank Group provides financing to Toyota and Lexus dealerships for new, showroom and used cars. It also provides investment loans for the purchase or moderni- sation of company real estate and working capital loans.

As well as servicing the German market, financial products are also provided in other European countries where the Toyota Kreditbank Group has branches and subsidiaries. The Toyota Kreditbank Group has branches in France, Sweden, Norway, Spain and Italy as well as subsidiaries in Poland and Russia.

In terms of consumer credit business with private and busi-ness customers, the branches and subsidiaries – with the exception of the branch in Italy – offer financing products comparable to those offered in Germany. The product range also covers the sale of leasing products and the arranging of insurance policies. In addition, the Toyota and Lexus dealers can apply for investment and working capital loans and are able to finance new, showroom and used cars via the Group. The branch in Italy only provides financing to dealerships.

The key performance indicators used by the Toyota Kredit-bank Group are based on regulatory requirements on one hand and the interests of the shareholder on the other.

A. General Information on the Toyota Kreditbank Group The Toyota Kreditbank Group offers – via its manufacturing based companies – financial services aimed at supporting car sales. A wide range of financing products is available to private and commercial customers on the one hand and to Toyota and Lexus dealers on the other.

Toyota Financial Services Corporation, based in Japan, is the parent company of the sub-group and owns all of the shares of the entities within the Toyota Kreditbank Group. The ulti-mate parent company is the Japanese car manufacturer, Toyota Motor Corporation, which, in turn, owns 100% of the shares of Toyota Financial Services Corporation. The companies con- cerned also work very closely from a marketing perspective.

Toyota Motor Corporation (TMC)

Toyota Financial Services United Kingdom Toyota Kreditbank Group

Toyota Financial Services Corporation (TFSC)

Americas Asia PacificEurope Africa

The Toyota Financial Services Group is represented in 35 coun-tries, covering three main regions, namely the Americas, Europe/Africa and Asia Pacific. The Europe/Africa region con-sists of the two sub-groups, Toyota Financial Services United Kingdom and the Toyota Kreditbank Group.

Toyota Kreditbank GmbH is the parent company of the Toyota Kreditbank Group and has its registered office in Cologne.

Toyota Kreditbank GmbH

Toyota Leasing GmbH Toyota Bank Polska

Toyota Leasing Polska

ZAO Toyota Bank Russia

> 99%

< 1%

Management system

Market Penetration Ratio of new registrations to financed vehicles

FinancialCost-income ratio Ratio expense/ income before tax

Average accounts Average number of accounts

Regulatory requirements

Overall capital ratio Ratio of equity funds to risks

Risk appetite Aggregate amount of risk limits (for risk-bearing capacity purposes) divided by the risk coverage amount

100%

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B. Report on Economic Position

1. General and sector specific environment

The global economyThe pace of global economic growth during the calendar year 2014 remained at a similar level to the previous year. According to figures issued by the International Monetary Fund (IMF), economic output expanded – as in the calendar year 2013 – by 3.4%. Although the world's emerging economies again out-paced industrial countries, growth rates were not as high as in previous years. Emerging economies, which had been the principal driver of global growth in recent years, grew by 4.6% in the calendar year 2014, compared with 5.0% one year earlier. In this context, it is also worth mentioning the slow-down of the Chinese economy, which slipped from 7.8% in the calendar year 2013 to 7.4% in 2014. After growing by 1.6% in the calendar year 2013, the Japanese economy contracted by 0.1% in 2014, mainly as a result of the value added tax rate hike in April 2014.

The economies of the world's industrial countries grew faster than one year earlier, with the growth rate edging up overall from 1.4 to 1.8%.

Operating territoryEconomic output in the Euro area grew in 2014 for the first time since 2011, with gross national product (GNP) rising by 0.9% (compared to a drop of 0.5% in the previous year).

Economic indicators in Europe

Countries

GNP1 Change compared

to previous year % 2014

GNP1 Change compared

to previous year % 2013

CPI2 Change compared

to previous year % 2014

CPI2 Change compared to

previous year % 2013

European Union 1.4 0.2 0.5 1.5Euro area 0.9 -0.5 0.4 1.3Germany 1.6 0.2 0.8 1.6France 0.4 0.3 0.6 1.0Norway 2.2 0.8 2.0 2.1Sweden 2.1 1.5 -0.2 0.0Spain 1.4 -1.2 -0.2 1.5Italy -0.4 -1.9 0.2 1.3Poland 3.3 1.6 0.0 0.9Russia 0.6 1.3 7.8 6.8

Source: IMF 1 Real gross national product based on 2005 prices 2 Consumer Price Index covering all products

The Euro area was able to maintain the favourable trend which had started in the second quarter of 2013 and was therefore able to post a moderate growth rate for the current year. That said, economic weaknesses prevailing in some of the major economies, such as Italy and France, continued to exert a negative impact, thus preventing the Euro area posting an even faster growth rate. By contrast, good progress was made in Ireland, Portugal and Spain, all of which had previously suf-fered significantly as a result of the financial crisis. Similarly, the employment market improved slightly within the European Currency Union as a whole, with the unemployment rate fall-ing from 12.1% in the calendar year 2013 to 11.6% in 2014.

One of the factors driving this positive development has been the expansionary monetary policy applied by the European Central Bank (ECB). After reducing its reference rate to a new historical low of 0.05% in September 2014, for instance, inter-est rates continued to drop for short- and long-term maturities.

The German economy continued the recovery phase started during the calendar year 2013, with the first and fourth quarters in particular contributing to an overall growth rate of 1.6% in 2014, compared with the 0.2% reported one year earlier. The principal factors driving this economic growth were domestic demand, a strong employment market and a sustained increase in investment volumes.

The pace of growth of the Russian economy continued to slow down, falling from a modest 1.3% in the calendar year 2013 to only 0.6% in 2014. The main factors for this continued trend were lower prices during the second half of 2014, ongoing geopolitical risks as well as the resulting economic sanctions imposed by the USA and the EU against Russia.

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Currency developmentsUnder the prevailing macroeconomic and political conditions, some exchange rates remained highly volatile during the year under review. The US Dollar/Euro exchange rate fluctuated over the twelve month period between 1.05 and 1.39. At the end of the reporting period, the Euro, at almost 1.07, was stronger than at the beginning of the financial year. The Japanese Yen gained 10.4% in value against the Euro over the twelve month period, whereas the Russian Rouble fell by 21.9% against the Euro during the same period.

Exchange rates

Currency 31/03/2015 31/03/2014

Euro 1.0000 1.0000US Dollar 1.0759 1.3788British Pound 0.7273 0.8282Japanese Yen 128.9500 142.4200Norwegian Krone 8.7035 8.2550Swedish Krone 9.2901 8.9483Russian Rouble 62.4400 48.7800Polish Zloty 4.0854 4.1719

Source: Bloomberg

The Russian Rouble had already depreciated significantly during the calendar year 2013 as a reaction to investors' general loss of confidence in the world's emerging economies. This trend continued throughout the year under review, culminating in particularly hefty loss in value during the fourth quarter 2014, reflected in fluctuations in the EUR/RUB exchange rate of between 49.92 and 91.52. By March 31 2015, the exchange rate had recovered somewhat to 62.44. Lower oil prices com-bined with international economic sanctions against Russia exposed the country's underlying structural weaknesses and brought about a further loss of confidence in Russia on the part of potential investors. These negative developments all contri-buted to the substantial decreases in the US Dollar and Euro exchange rates described above.

The situation in the money and capital markets was also favour-ably influenced by the global economic recovery. The expan-sionary monetary measures applied by the ECB were primarily aimed at combating deflationary worries and encouraging banks to lend more. As a result of the quantitative easing measures adopted, the European common currency lost in value against various currencies, including the US Dollar, the British pound and the Japanese Yen.

Review of the automobile marketGlobal sales of passenger vehicles grew moderately in the 2014 calendar year. According to a study undertaken by the Center Automotive Research of the University of Duisburg-Essen, passenger vehicle sales were 3.8 percent up on the previous year.

The Chinese and North American markets in particular made good contributions to the overall moderate growth rate. While the North American market expanded at an above aver-age rate of 5.6%, the Chinese market performed even better, posting a double digit growth rate of 11.9%.

The European automobile market grew slightly in the calendar year 2014 (by 1.1%), after contracting one year earlier by 2.5%. The German automobile market performed somewhat better than Europe as a whole during the calendar year 2014, growing at a rate of 2.8%. The automobile market in Russia, which had seen steady growth in previous years, contracted as a result of the weakening economy. Total sales volume in this market in 2014 fell by 10.3%, whereas in the calendar year 2013, the figures had still been rising. Despite these developments, Toyota once again chalked up a new sales volume record in this difficult trading environment. Compared to the 2013 calendar year, Toyota sold 6.2% more of its Group-brand vehicles.

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With worldwide sales of 10.23 million vehicles in the 2014 calendar year, Toyota remained the world's largest automobile manufacturer. For the first time ever, more than ten million Toyota vehicles were sold in a single calendar year.

New car registrations Toyota Europe

CY 2014 CY 2013 CY 2012 CY 2011

Europe 888,015 847,540 837,969 822,386The bank’s operating territory 514,692 486,901 411,087 398,743

Toyota was able to continue the positive trend in Europe in terms of new registrations. Sales within the Toyota Kreditbank Group's operating territory also increased on a calendar year basis, rising year-on-year by 5.7% to 514,692 units, a slightly better performance than the increase of the European market as a whole.

Toyota and Lexus models in Europe

Sales volume CY 2014

Sales volume CY 2013

Sales volume CY 2012

All models 888,015 847,540 837,969Thereof:― Yaris 181,105 184,795 201,923― Auris 142,105 131,928 83,012

The Yaris and Auris remain Toyota's most popular models in Europe. The overall range was also boosted by the addition of the Lexus NX. Hybrid vehicles continued to sell well, with the total number sold worldwide in the past calendar year rising to 1,266,070 million units. As a proportion of all Toyota and Lexus vehicles sold, sales of hybrid vehicles continued to increase in 2014 – approximately 12.4% world-wide, almost 20% in Europe and as much as 26.2% in Germany.

2. Course of businessDespite that fact that economic conditions and developments in the automobile sector were generally positive, the financial year 2014/2015 was nevertheless a challenging one for the Toyota Kreditbank Group. In the wake of two rulings of the German Federal Court of Justice (BGH) concerning the appro-priateness and time limit for charging administration fees, Toyota Kreditbank GmbH – like many other banks – became exposed to a surge of reimbursement claims from customers in Germany. The ensuing repayments had a negative impact on the bank's earnings for the year.

Key performance figures

Disclosures in EUR million FY 2014/15 FY 2013/14

Credit disbursed to customers (before allowances) 6,186.6 6,299.0Thereof: — retail customers 4,691.7 4,553.8— contract dealerships 1,494.9 1,745.2Leasing assets 897.3 909.0

Retail businessToyota Kreditbank Group's lending business is shaped pri- marily by loans to retail customers. The bank's performance in this sector is dependent to a large extent on the number of new registrations in the territory in which it operates.

New car registrations Toyota Kreditbank Group Europe New vehicle penetration

FY 2014/15 FY 2013/14 FY 2014/15 FY 2013/14

Germany 70,688 75,948 45.3% 43.3%France 75,919 76,670 30.7% 30.1%Sweden 22,554 20,843 35.9% 38.6%Norway 19,555 20,753 43.2% 39.3%Spain 48,809 40,589 41.1% 36.6%Poland 34,655 28,507 32.0% 34.5%Russia 169,444 174,301 17.3% 23.1%Total 441,624 437,611 30.0% 31.3%

New registrations in the territory in which the Group operates rose by 0.9%. The number of financing and leasing contracts for new vehicles went down by 3.5%. Despite the decrease in the volume of new Toyota vehicles sold in Germany, the number of new contracts signed in Germany (including lease contracts) was maintained at the previous year's level thanks to an increase in the penetration rate. clearly reflecting the success of the bank’s attractive and competitively priced product range. The new vehicle penetration rate fell slightly from 31.3% to 30.0%.

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Analysis of financing and leasing contractsNumber of new contracts concluded by the Toyota Kreditbank Group

FY 2014/15 FY 2013/14

Total financing contracts 141,264 149,338New vehicles 90,497 99,050Used vehicles 50,767 50,288Total leasing contracts 43,781 40,048New vehicles 41,877 38,116Used vehicles 1,904 1,932New car registrations 441,624 437,611New vehicle penetration 30.0% 31.3%Thereof: Financing 20.5% 22.6%Thereof: Leasing 9.5% 8.7%

Analysis of financing and leasing contractsNumber of new contracts by country

Financing Leasing

FY 2014/15 FY 2013/14Change

in % FY 2014/15 FY 2013/14Change

in %

Germany 51,811 53,828 -3.7 10,195 8,426 21.0France 13,891 14,442 -3.8 14,223 13,489 5.4Sweden 11,609 11,041 5.1 4,336 4,987 -13.1Norway 6,730 6,540 2.9 5,494 5,524 -0.5Spain 20,029 15,296 30.9 1,228 900 36.4Poland 4,598 4,624 -0.6 8,305 6,722 23.5Russia 32,596 43,567 -25.2 0 0 0.0Total 141,264 149,338 -5.4 43,781 40,048 9.3

The Toyota Kreditbank Group only operates in the field of finance leasing via its branches in France, Sweden, Norway and Spain and the subsidiary in Poland. In Germany, leasing business is handled by the subsidiary, Toyota Leasing GmbH.

New business developed positively in general terms. Overall, more contracts were concluded than in the previous year, mainly reflecting increased demand outside Germany. In Spain, the government funded stimulus programme "Plan PIVE" for efficient vehicles was continued. Similarly, in France, the ECO Bonus system encouraged the sale of hybrid models, whereby the existence of attractive, comprehensive programmes re- sulted in a shift between financing and leasing. The bank con-tinued to offer financing arrangements in Sweden and Norway at extremely favourable annual interest rates. Due to the ongoing Ukraine crisis, the number of new contracts signed in Russia fell by 25.2%.

Dealership financingThe Toyota Kreditbank Group provides loans to contract dealer-ships to finance showroom cars, working capital and invest-ments. In the field of inventory financing, the Toyota Kreditbank Group is an important financing partner for dealerships with operations focused on Germany, France, Spain, Italy and Russia.

Dealership financing

Disclosures in EUR million

Working capital/ investment loans Showroom vehicle financing

31/03/2015 31/03/2014Change

31/03/2015 31/03/2014Change

Germany 95.0 101.4 -6.4 335.8 343.9 -8.1Foreign 142.0 141.5 0.5 921.2 868.0 53.2Total 237.0 242.9 -5.9 1,257.0 1,211.9 45.1

Inventory financing volumes in Germany were slightly lower than in the previous year in line with the overall development of sales figures. This decrease was compensated for by the increase recorded outside Germany. Overall, the total volume of dealership financing was at a high level during the year under review. The volume of working capital credits continued to decrease in Germany, whilst rising slightly outside Germany.

Overall, the Toyota Kreditbank Group strengthened its position as an important financing partner for dealerships.

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3. Analysis of net assets, financial position and results of operations

a. Earnings performanceGroup net income for the year fell from EUR 80.0 million to EUR 63.4 million. The decrease was primarily attributable to the reimbursement of administration fees in Germany. The Group was unable to achieve its forecast of maintaining overall earn-ings at the previous year's level. This was primarily due to the fact that Toyota Kreditbank GmbH (as well as other banks) was required to settle a massive volume of reimbursement claims from customers in the wake of two BGH rulings concerning the appropriateness and time limit for charging administration fees.

The profit generated by the Group’s branches amounted to EUR 35.3 million (2013/2014: EUR 38.0 million).

Overall, the Toyota Kreditbank Group reports satisfactory earn-ings for the financial year 2014/2015. The anticipated increase in new registrations throughout the bank's operating territory as a whole, combined with low market interest rates, had a positive impact on earnings, whereas the reimbursement of administration fees by the parent company had a significant negative impact.

Earnings

FY 2014/15 in EUR million

FY 2013/14 in EUR million

Change in EUR million

Change in %

Net interest income 226.2 224.5 1.7 0.8Income from investments 0.0 0.1 -0.1 -100.0Net commission income -19.3 -21.5 2.2 -10.2Other operating income/expense (net) 265.0 300.8 -35.8 -11.9Administrative expense -115.3 -116.4 1.1 -0.9Amortisation and depreciation -210.9 -230.1 19.2 -8.3Risk provisioning expense -37.0 -33.2 -3.8 11.4Profit before tax 108.7 124.2 -15.5 -12.5Extraordinary expense -20.0 0 -20.0 Tax expense -25.3 -44.2 18.9 -42.8Net income for the year 63.4 80.0 -16.6 -20.8

Net interest result The net interest result improved by EUR 1.7 million to EUR 226.2 million, mainly reflecting the continued low level of market interest rates. Within this environment, the Toyota Kreditbank Group was able to obtain even better financing conditions from banks and affiliates, with the consequence that interest expense fell by EUR 16.7 million to EUR 126.3 million.

Net commission incomeThe Group recorded a net commission expense of EUR 19.3 million in the year under report (2013/2014: net commission expense of EUR 21.5 million). Commission income rose to EUR 54.2 million (2013/2014: EUR 51.6 million), Commission expense amounted to EUR 73.5 million (2013/2014: EUR 73,2 million). The increase in commission expense was mainly attributable to higher disbursements to contract dealerships outside Germany (in particular Spain) as a result of the higher volume of instalment credit and leasing business.

General administrative expensesThe following table shows the breakdown of general administrative expenses.

FY 2014/15 in EUR million

FY 2013/14 in EUR million

Change in EUR million

Change in %

Personnel expense 52.4 52.9 -0.5 -0.9Other expenses 62.9 63.5 -0.6 -0.9Total 115.3 116.4 -1.1 -0.9

Administrative expenses were reduced by EUR 1.1 million thanks to a range of cost saving measures. Other operating income and expenseThe net positive amount of other operating income and ex-pense was EUR 265.0 million (2013/2014: EUR 300,8 million). The decrease was mainly attributable to the reduced volume of leasing income in Germany.

Amortisation and depreciationAmortisation and depreciation on intangible assets, property plant and equipment, and leasing assets decreased to EUR 210.9 million (2013/2014: EUR 230.1 million), mainly reflecting the lower volume of leasing assets carried in Germany, Spain and Norway.

Risk provisioning expenseThe net expense for write-offs and allowances on receivables and some marketable securities together with additions to accruals and provisions relating to lending business amounted to EUR 37.0 million (2013/2014: EUR 33.2 million).

Tax expenseThe expense for income taxes for the financial year went down by EUR 19.2 million to EUR 24.2 million. Most of the tax charge relates to the branches. The effective tax rate is 27.7%, com-pared to 35.6% one year earlier.

Please refer to the note on segment information for a regional breakdown of the Group's net income for the year.

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b. Net assets and financial positionThe balance sheet total (total assets/total equity and liabilities) of the Toyota Kreditbank Group edged up over the course of the financial year 2014/2015 by EUR 21.6 million to EUR 7,441.2 million.

Customer receivables remained the most significant item on the assets side of the balance sheet, accounting for 81.1% of total assets at the end of the reporting period. Leasing assets accounted for 12.1% of total assets.

Receivables from customers (before allowances) went down from EUR 6,299.0 million to EUR 6,186.6 million, with the over-all increase of EUR 112.4 million relating to German (EUR 44.2 million) and non-German operations (EUR 68.2 million).

Overall, leasing assets went down during the 2014/2015 financial year, with reductions in Germany and in the branches in Spain and Norway, which were not fully offset by increases in France and Sweden.

On the equity and liabilities side, the principal items are liabilities to customers and liabilities to banks.

Liabilities

31/03/2015 in EUR million

31/03/2014 in EUR million

Change in EUR million

Change in %

— to banks 2,714.7 2,621.4 93.3 3.6— to customers 2,440.7 2,479.9 -39.2 -1.6— securitised liabilities 548.1 515.1 33.0 6.4Total 5,703.5 5,616.4 87.1 1.6

Compared to the end of the previous financial year, liabilities to banks were EUR 93.3 million higher at EUR 2,714.7 million, with the increase relating primarily to Germany. The excellent refinancing conditions available to the main branch in Germany were also used in part to finance demand for lending outside Germany. The Toyota Kreditbank Group was able to place further securitised liabilities in conjunction with a group-wide commercial paper issue programme.

Accruals and provisions went up by EUR 5.1 million to EUR 97.0 million.

Receivables are tested regularly for recoverability. Adequate allowances and provisions have been recognised to cover lending business risks.

The Toyota Kreditbank Group's equity for accounting purposes totalled EUR 812.0 million at the end of the reporting period (31 March 2014: EUR 816.1 million). The reduction was at- tributable entirely to the unfavourable exchange rate of the Russian Rouble.

4. Key performance indicatorsThe key financial performance indicators used by the Toyota Kreditbank Group are based on groupwide requirements stipulated by the parent company, Toyota Financial Services in Japan, whereas specific performance indicators are, to a certain extent, set and managed on a decentralised basis for each country.

The following table sets out the key performance indicators of the Toyota Kreditbank Group:

Cost/Income ratio Average number of accounts Penetration rate

2015 2014 2015 2014 2015 2014

Germany 52.1%*) 49.0% 198,561 206,401 45.3% 43.3%France 31.7% 26.8% 80,521 76,353 30.7% 30.1%Spain 48.1% 38.2% 62,964 58,600 41.1% 36.6%Norway 33.3% 32.8% 33,075 30,007 43.2% 39.3%Sweden 46.9% 48.6% 41,716 39,217 35.9% 38.6%Italy 59.5% 62.6% n.a. n.a. n.a. n.a.Poland 82.6% 76.2% 75,200 76,139 32.0% 34.5%Russia 36.3% 43.7% 76,722 65,166 17.3% 23.1%

*) before consolidation

The average number of contracts in Germany continued to decrease, mainly reflecting the lower volume of new vehicles sold by the importer.

FY 2014/15 FY 2013/14

Risk appetite 90.0% 73.8%Overall capital ratio 19.8% 18.2%

In addition to financial performance indicators, the Toyota Kreditbank Group also uses financial performance indicators to manage the business. The Toyota Way, which is founded on the Toyota organisation’s corporate philosophy, is actively put into practice. The two main pillars of the Toyota Way are "Continuous Improvement" and "Respect for Others". Recom-mendations made by staff with a view to achieving continuous improvement are documented in conjunction with so-called "Kaizen" procedures and are rewarded as part of a competition for employees.

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Kaizen activities

FY 2014/15 FY 2013/14

Germany 34 23Spain 14 19Norway 13 16France 2 11Italy 25 7Sweden 43 56Poland 74 58Russia 24 24Total 229 214

C. Events after the end of the reporting periodNo significant events have occurred after the end of the re-porting period which have a significant impact on the bank's net assets, financial and earnings position.

D. Opportunities and Risks ReportThe Toyota Kreditbank Group has applied a stable, strategic business model for years. Its success is attributable firstly to its conservative risk profile combined with effective risk management and secondly to its strategic business model of a "captive" financing company, offering financing for the vehicles of the Toyota Group within its operating territory.

Responsibility for the early recognition and control of business risks and opportunities lies with the Executive Management of the parent company.

The Toyota Kreditbank Group is exposed to various other risks which are usual for the sector in which it operates. In this con-text, a risk is defined as the danger of incurring a loss or damage by an outcome that is less favourable than originally expected.

At the same time, it is important for the Toyota Kreditbank Group to identify and exploit potential opportunities with a controlled management process with a view to safeguarding and developing its competitive position. An opportunity refers to the possibility of using events, current developments or actions to ensure or exceed the Toyota Kreditbank Group's planned targets.

Business performance is dependent to a large extent on the volume of group-brand car sales within the operating territory. The extent to which opportunities can be exploited is highly dependent on this situation.

Opportunities for further profitable growth are identified and included in the decision making process as part of the overall strategic process as well as the medium and long-term business planning process. Business opportunities are not reported as part of the risk management system. Instead, they are recorded in conjunction with strategic and medium-term forecasts and monitored during the year as part of the periodic reporting process.

A stronger economic upturn may boost group-brand sales, thus, in turn, generating additional growth for the Toyota Kreditbank Group. Assuming a constant penetration rate, any increase in new registrations results in an upward trend for new business.

Further opportunities arise for the Toyota Kreditbank Group through the creation of new products for end-user customers and by moving into growth segments in which customers' needs are focused on even more closely. This approach also helps to improve the penetration rate in the long-term.

In relation to credit business risks, an opportunity may also present itself if actual losses incurred within the bank's core business turn out to be lower than previously expected losses. On account of the general economic conditions, the bank has applied a conservative approach to risk provisioning in recent years. If the economies in the countries which are relevant for the bank continue to stabilise, such that the creditworthiness of borrowers improves, there may be an opportunity to reverse previously recorded risk provisions.

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1. Risk management

a. Risk management organisationDecisions are taken by the Toyota Kreditbank Group (and its foreign branches and affiliates) on the basis of an ongoing assessment of the balance between realisable returns and risks to be incurred within the framework of the risk-bearing capacity.

The Executive Management of the parent company is respon-sible for the organisation of risk management throughout the Toyota Kreditbank Group, including its foreign branches and affiliates. A risk management organisation has been set up which forms the basis for risk and cost oriented management of the bank as a whole (overall bank management).

Group Risk Controlling Commitee– Reporting lines to Group Risk Controlling Function –

Executive Management

Risk Management

Credit Risk

OpRisk Management

Operational Risks

Compliance Function

Treasury

Liquidity Risk

Market Risk

Directors

Finances

Business Risk

Group RiskControlling Function

The Group Risk Controlling Committee plays a key role in the Toyota Kreditbank Group's risk management organisation. Its main task consists of the implementation and monitoring of the risk strategy defined by the Executive Management. The Group Risk Controlling Committee assesses the individual and overall risk situation of the Toyota Kreditbank Group, specifi-cally taking into account the limits established in conjunction with the assessment of its risk-bearing capacity. The aim is to identify risks at the earliest possible stage and to decide on a set of suitable risk mitigation measures.

Risk reporting is addressed directly to Executive Management and the members of the Group Risk Controlling Committee. Risk trends and the current situation are reported on and dis-cussed at the quarterly meetings of the Group Risk Control-ling Committee.

Consideration of stress tests is a key component of the approach to managing the overall risk profile of the Toyota Kreditbank Group. Stress tests, along with the maintenance of a risk inven-tory and the assessment of risk-bearing capacity, are further components of the risk management approach, helping the Toyota Kreditbank Group to manage its overall risk portfolio.

Business & Overall Risk Strategy

Risk-bearing capacity concept

Sub-strategies for significant risks

Risk inventory

Stress testing concept

Rules specified in writing(including organisational structure, separation of duties, model concepts)

The task of risk control is carried out in decentralised manage-ment units. The actual monitoring of risks – identification, assessment and monitoring of risks and countermeasures, reporting and specification of methods – is also organised on a decentralised basis.

In order to allow a thorough assessment of the risk impact of new products (including the potential impact on the overall bank risk profile), all relevant organisational units are integrat-ed into the new product development process.

The internal Audit Department reviews and and assesses all activities of the Toyota Kreditbank Group. Audits are planned and conducted using a risk-based approach. The assessment of the risk situation, the proper processing of transactions and the effectiveness of the internal control system are important audit criteria.

Reports on the audits conducted during the financial year, together with audit findings, were submitted to the Executive Management.

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b. Risk management processThe business strategy of the Toyota Kreditbank Group provides the framework for the risk strategy. One important aspect of this risk strategy is that risks will only be entered into after due consideration of the level of economic and regulatory capital, while at the same time ensuring liquidity, and maintaining a prudent risk profile. The risk management system is therefore a key component of managing the Toyota Kreditbank Group's performance.

The objective of the risk management system is to assume customary banking risks within a defined framework, including strict compliance with risk-bearing capacity requirements. The core elements of the risk management system are the risk strategy, the management of risk-bearing capacity and the internal control system. The internal control system consists of a set of defined rules and an organisational structure, includ-ing the specific processes applied to manage and control risks.

Over the years, the risk management process has been refined, as a result of which the Toyota Kreditbank Group now has a full range of tried and tested tools at its disposal. In addition to organisational rules, such as competency guidelines and process/system documentation, methods have been continu-ously developed to identify, measure and manage risks.

A new methodology for capital planning was implemented during the financial year 2014/2015 and the scope of stress tests expanded.

c. Risk strategyThe risk strategy – in conjunction with the risk-bearing capacity concept – provides the overall framework for risk management. The risk profile and underlying approach to risk taking are determined after taking into account all risks identified in the various lines of business and in accordance with all relevant statutory and regulatory requirements.

The focus of the risk strategy is to ensure long-term going-concern status and an appropriate balance between return and risk. Consciously choosing to take risks – having given due consideration to economic and regulatory capital levels – is a component of the risk strategy and is derived from the overall banking strategy.

The Toyota Kreditbank Group, as a financial services provider whose primary function is to support the sale of cars, provides financing for Toyota dealers and retail customers. The resulting overall banking risk is therefore significantly lower than that of banks offering a full range of banking services. Under the Toyota Kreditbank Group’s business model, concentration risks are knowingly assumed within reasonable limits. Within the retail portfolio, concentration risks are only of secondary im-portance in view of the overall customer structure. By con-trast, concentration risks are higher in the business customer and dealership financing portfolio due to the relatively small number of customers.

In line with the overall risk strategy, specific sub-strategies are defined for each main risk category, which, together with the risk inventory, the risk-bearing capacity concept, the stress testing concept and the organisational rules, form the basis for the Toyota Kreditbank Group’s risk management system.

d. Relevant risk categoriesAs part of the process of drawing up the risk inventory, the next step – after identifying all risks – is to perform a quantitative and qualitative analysis of the various risk categories as the basis for determining materiality. The main risk categories result directly from banking operations and are of particular importance for the ongoing management of the Toyota Kredit-bank Group. The following risks were identified as material risk categories in conjunction with the annual risk inventory:

Credit Risk Market Risk Liquidity Risk

Operational Risk

Business Risk Other Risk

Default Interest Rate

Currency

Spread

Markek Liquidity

Investment/ Share Price

Residual Value

Short-term Liquidity

Higher Liquidity Cost

Operational Risk

Legal

Model

Return

Reputational

Strategic

Migration

Counterparty

Issuer

Collateral

Countries

Concentration Significant Risks

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e. Risk-bearing capacity conceptThe Toyota Kreditbank Group has implemented a risk-bearing capacity concept for the regular assessment of the risk situation at a total bank level. The risk-bearing capacity specifies the extent to which the risks assumed can be covered by the defined risk coverage amounts. The concept was further refined during the financial year 2014/2015.

Determining risk-bearing capacity sets the framework for risk management and control within the Toyota Kreditbank Group. Measuring and ensuring the appropriateness of the capacity to bear risks is therefore a fundamental aspect of the manage-ment of the Toyota Kreditbank Group as a whole.

Under the current concept, both a balance-sheet-based going concern approach and a liquidation approach are considered to assess the risk-bearing capacity.

The going concern approach assumes that operations will be continued, whereas the liquidation approach focuses more on the protection of creditors. The Toyota Kreditbank Group considers both approaches. The going concern approach has been defined by the Executive Management of Toyota Kredit-bank GmbH as being that which is more relevant for managing the business.

The risk coverage potential totaling EUR 364.6 million com-prises subscribed capital, capital surplus, retained earnings and current year earnings. Under the going concern approach, the part of the regulatory capital which is necessary as a mini-mum to comply with the minimum capital requirements pur-suant to the Capital Requirement Regulation (CRR) is not taken into account for risk coverage purposes. Furthermore, under the going-concern approach, a budgeted profit is also taken into consideration. In order to comply with MaRisk requirements and take into account only a prudently budgeted profit, the business risk is deducted from the risk coverage potential as a corrective factor.

Risk-bearing capacityLimit

31/03/2015Amount utilised

31/03/2015in %

31/03/2015

Required capital in economic terms (in EUR million) 328.1 216.5 66.0 — thereof for customer credit risk 156.0 112.7 72.2 — thereof for interest rate risk 50.0 29.0 58.0 — thereof for liquidity risk 24.0 4.2 17.5 — thereof for operational risks 25.0 12.0 48.0 — thereof cushion for market fluctuations 73.1 58.5 80.0Risk coverage potential utilisation 90.0% 59.4%Maximum risk appetite 90.0%

In both the going concern and liquidation approaches, only part of the risk coverage potential counts towards the risk coverage amount. The respective risk coverage amount allocated, as well as the risk appetite, the overall limit and the allocation limits among the different risk categories are stipu- lated each year by the Executive Management and are based on the business strategy and the associated willingness to assume risk.

Part of the available risk coverage potential was not allocated to offset potential losses from the material risk categories, thus taking account of the risks not limited in the risk-bearing capacity concept.

In order to ensure the Toyota Kreditbank Group's risk-bearing capacity, risks (quantified by appropriate instruments) and limits are compared for each risk category.

In addition, stress scenarios are also tested, based on scenario and sensitivity analyses which take into account institution-specific and general market factors for all material risk catego-ries, thus ensuring an overall consideration of the situation across all risk categories. The so-called "normal case" con- sidered in the risk-bearing capacity assessment corresponds to the current relevant economic situation. The historical recession simulates – for all significant risk categories – the stress that would be caused by a severe economic slump (comparable with the Lehman crisis in 2008/2009).

Risk category correlation effects are not taken into account to measure the amount of limit utilised. Likewise, the Toyota Kreditbank Group does not consider any correlation effects between and/or within the various risk categories. In view of the nature and scale of business transactions, the Toyota Kreditbank Group assumes a correlation coefficient of one within the material risk categories. As a result, potential capi-tal-saving diversification effects are not taken into account, reflecting the enterprise's prudent approach to risk assess-ment.

The Toyota Kreditbank Group's ability to bear risk (i.e. its risk-bearing capacity) was ensured at all times during the financial year 2014/2015.

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2. Risk categoriesA risk is defined as the danger of incurring a loss or damage by an outcome that is less favourable than originally expected. The following risks were identified as material risks in con-junction with the annual risk inventory:

a. Credit riskCredit risk is defined as the risk of a possible loss arising from deterioration in the creditworthiness rating or payment default of a counterparty. Within credit risk, the following distinctions can be made depending on the underlying transaction:

Default risk is defined as the traditional credit business risk – i.e. the core business of the Toyota Kreditbank Group. Default risk refers here to the possible loss arising from de- terioration in the creditworthiness rating or payment default of a borrower.

Issuer risk is defined as the default risk in the case of a secu- rities transaction.

Trading counterparty risk is defined as risk of default by the contracting party in the case of a derivatives transaction.

Credit concentration risk is defined as the risk of the reali- sation of multiple default risks, issuer risks or trading counter-party risks resulting from concentration of the portfolio on a few individual contracting parties, groups of contracting parties or concentrations on individual market sectors.

The Toyota Kreditbank Group’s core business consists of dealer-ship financing and vehicle financing for end-user customers in the Corporate and Retail lines of business. Default and credit concentration risk (dealer financing and corporate end-user customer exposures) are therefore the principal sources of credit risk. The principal focus of credit risk management is therefore placed on the assessment and control of these risks. Trading counterparty risks arise on account of the hedging of market risks. Since the securities portfolio is currently very small, issuer risk is not material at present.

Organisation of credit risk managementExecutive Management is responsible for effective, sound management of the bank's credit risks. Furthermore, Executive Management and the Group Risk Controlling Function have joint responsibility for introducing appropriate tools to measure credit risk.

Toyota Kreditbank GmbH's Risk Management Department is responsible for implementing and applying these measure-ment tools as well as for other operational credit risk control measures. Risk monitoring is the key component here. As an independent function within the risk management system, risk monitoring concentrates on the identification, analysis, measurement, control and monitoring of the default and credit concentration risks throughout the Toyota Kreditbank Group as a whole. The Treasury Department is responsible for monitoring issuer and trading counterparty risks.

Credit risk strategyThe Toyota Kreditbank Group considers credit risk to be a key component of its operations. As such, credit risks are entered into in full knowledge of the facts and are subject to proactive control, measurement and monitoring. This is particularly true in the case of default and credit concentration risks. Generally, the materiality of default risks is assessed in conjunction with the annual risk inventory.The credit risk strategy conforms to the guidelines set out in the business and general risk strategy, thus reflecting the prudent approach adopted by the Group.

As a general rule, default risks are only entered into in accor- dance with the general risk strategy. Credit decisions and exposure amounts are always determined on the basis of creditworthiness. This involves an analysis of the borrower's ability to service debts currently and in the future.

The Toyota Kreditbank Group recognises appropriate levels of risk provision to take account of losses from credit business.

Elements of credit risk managementThe Toyota Kreditbank Group uses a range of instruments to manage credit risk, as described in detail below.

Instruments used to manage credit risk

Strategic components

- Allocation of risk coverage amount

Operationalcomponents

- Credit decision processes- limits- collateral and guarantees- intensive management- risk provisionning

Monitoring andcommunication

- Management reporting- Risk monitoring

Credit riskmeasurement

Internal procedures forassessing creditworthiness

- amount of receivable on default- probability of default- loss ratio- expected loss- unexpected loss- stress tests

Risk coverage amount (capital cushion)The parent company's Executive Management and Group Risk Controlling Function jointly assign the risk coverage amount available for credit risks. The risk coverage amount is determined at group level as well as for each subsidiary and branch individ-ually and is assigned as part of the general capital planning process in line with the general risk appetite.

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Credit risk measurementInternal creditworthiness assessment procedures and stress tests are applied to measure and assess credit risks. The Toyota Kreditbank Group has opted to use the Advanced Internal Ratings Based Approach (A-IRBA) for the purposes of measu-ring and assessing credit risks. An application to apply the A-IRBA approach was submitted as of 31 March 2008. In order to be able to use the A-IRBA approach on a permanent basis, the regulator requires at least 92% of the portfolio to be mea-sured through appropriately certified internal rating pro- cedures. The remaining 8% may continue to be measured using the Credit Risk Standardised Approach (CRSA). In order to achieve this coverage rate, the Toyota Kreditbank Group has successively switched over the various sub-portfolios to the A-IRBA approach by developing rating procedures specific to each of them. These sub-portfolios are defined for each country as follows:

— Small customers (end-user customers vehicle financing): end-user customers with an exposure of less than TEUR 250. In the small-sized customer segment, a further distinction is drawn between retail (private individuals and sole traders) and corporate customers.

— Major customers (end-user customers vehicle financing): end-user customers with an exposure or limit of more than TEUR 250.

— Dealerships: financing of dealerships.

Other lending transactions which do not relate to the TKG Group's core business are combined across countries in the "Other lending transactions" sub-portfolio. Treasury trans- actions are also shown separately.

Country Type of business Customer groupMeasurement

approachPermitted

since

GermanyEnd customers (vehicle financing)

Small customers (retail) A-IRBA 04/2008

Major customers A-IRBA 04/2008

Dealership financing Dealerships A-IRBA 04/2008

FranceEnd-user customers (vehicle financing)

Small customers (retail) A-IRBA 02/2011

Small customers (businesses) A-IRBA 10/2014

Major customers CRSA -

Dealership financing Dealerships A-IRBA 06/2012

SwedenEnd-user customers (vehicle financing)

Small customers (retail) A-IRBA 09/2009

Small customers (businesses) A-IRBA 09/2009

Major customers CRSA -

Dealership financing Dealerships CRSA -

NorwayEnd-user customers (vehicle financing)

Small customers (retail) A-IRBA 10/2010

Major customers CRSA -

Dealership financing Dealerships CRSA -

SpainEnd-user customers (vehicle financing)

Small customers (retail) A-IRBA 02/2011

Small customers (businesses) A-IRBA 07/2013

Major customers CRSA -

Dealership financing Dealerships A-IRBA 09/2009

Italy Dealership financing Dealerships A-IRBA 07/2013

PolandEnd-user customers (vehicle financing)

Small customers CRSA -

Major customers CRSA -

Dealership financing Dealerships CRSA -

RussiaEnd-user customers (vehicle financing) Small customers (retail) A-IRBA 12/2013

Dealership financing Dealerships A-IRBA 12/2013

Over-archingOther lending transactions Various CRSA -

Treasury Bank CRSA -

Toyota Kreditbank GmbH is responsible for developing rating procedures within the bank as a whole. The procedures used are based mainly on statistical models. Rating procedures are calibrated individually for each sub-portfolio. Responsibility for the development, quality and monitoring of the use of rating procedures for risk management purposes lies with the Risk Monitoring Department.

The values calculated using the various rating procedures are input to the relevant internal controlling system and to the reporting system used to measure the risk-bearing capacity. Risk premiums and credit risk costs are calculated in conjunc-tion with the Controlling Department on the basis of past em-pirical values on the one hand and planned changes in the credit portfolio on the other.

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The accuracy of the statistical models is checked monthly by back-testing against actual amounts realised. Anomalies identified during this process are examined further in detailed analyses. Furthermore, the models are validated each year in accordance with a pre-defined procedure. Where necessary, the rating procedures are recalibrated with the approval of Executive Management.

The main technical terms relevant for the A-IRBA-certified rating procedure are explained below.

The definition of loss is based on the Capital Requirement Regulation (CRR). This defines loss as "economic loss, includ-ing material discount effects, and direct and indirect costs associated with the recovery of outstanding balances for the transaction".

With respect to the Toyota Kreditbank Group's core business, the loss therefore corresponds to receivables outstanding after all recovery efforts. This includes discounting effects and costs arising in conjunction with recovery efforts.

Exposure at default (EAD) is defined as the expected amount of the credit exposure at the time of default.A uniform definition of default, complying with the CRR, is applied at group level. According to this definition, an expo- sure is considered to be in default when either or both of the following events have occurred:

― The Toyota Kreditbank Group considers it to be very un- likely that the borrower will repay its debt without further action by the institution.

― The borrower has been in arrears for more than 90 days in succession with respect to a material proportion of its total debt.

An exposure which is not in default is referred to as an active exposure. The probability of default expresses the probability of at least one default by a borrower over a one-year period. The probability of default of a borrower is determined in con- junction with the relevant internal rating procedure.

For this purpose, each exposure is first assigned to a credit-worthiness class, based on the rating procedure allowed for the relevant sub-portfolio. The creditworthiness classes are defined uniformly across the various sub-portfolios on the basis of a so-called "master scale" that is valid throughout the group.

The master scale comprises eleven classes for active exposures and three classes for exposures at default. For exposures at default, the three classes reflect the various stages in the de-fault process. For the eleven creditworthiness classes for active exposures, the master scale indicates a minimum and a maxi-mum probability of default. As part of the process of calibrat-ing the models specific to the various sub-portfolios, the creditworthiness classes are each assigned a final default pro-bability, specific to each sub-portfolio. This is based on the maximum and minimum default probabilities specified by the master scale. The default probability of an exposure results from the application of this final default probability by refer-ence to the creditworthiness class and the sub-portfolio.

The loss given default (LGD) refers to the expected percentage of the exposure at default which will be lost in the event of default. As in the case of the default probability, the LGD of an exposure is determined using a statistical model. For the pur-poses of calibrating the statistical models used, particular consideration is given to actual proceeds realised historically.

The expected loss refers to the loss from credit risks which, at the relevant reporting date, is expected to be incurred within one year. This is a statistical average value which is calculated considering the default probability, the LGD and the EAD.

The unexpected loss (UL) refers to potential losses which exceed the expected loss. “Potential” for these purposes means that, based on a going-concern approach, there is a 99% probability that actual losses incurred within one year will not exceed the UL. The UL, which is therefore a key inter-nal control parameter, is calculated on the basis of the regu- latory requirements applicable to A-IRBA procedures. More specifically, the calculation is based on the default probabil- ities and loss given defaults determined using the applicable rating procedure. The issue of concentration risks is addressed by taking into account the granularity of the port- folio. Model-based default probabilities and loss given de-faults are not available for portfolio components rated using the credit risk standardised approach (CRSA) and are there- fore replaced by expert estimates.

Stress tests are carried out at least monthly. These serve on the one hand to check the capital adequacy calculated and on the other to identify events and market changes which could have an adverse impact on the Toyota Kreditbank Group so that countermeasures can be taken at an early stage. Firstly, the sensitivity of the risk model with respect to various risk factors is measured on the basis of stress tests. Secondly, scenario analyses are carried out to examine the effects of economic stress events on the portfolio. For this purpose, both historical events and fictitious events are considered.

Operational componentsThe credit decision making process relies on both credit application procedures and rating models. In the case of retail business, this process is largely automated. In the case of dealer financing business, credit approvals have to be con- firmed manually by credit committees. Local credit committees at the individual branches and subsidiaries of the Toyota Kredit-bank Group consist in each case of front and back office repre-sentatives. A European Credit Committee (ECC) is in place at group level.

Depending on the nominal amount of the credit application, the relevant credit committee is convened and makes its decision with respect to the credit application. In the event that the front office and back office representatives within a local credit committee reach a different decision, the credit application is transferred to the ECC and the decision is taken there.

Credit exposure limits have been introduced to limit default and credit concentration risks. The limits are determined on the basis of the customer's creditworthiness. Limits are in place both for both individual borrowers and groups of bor-rowers. Where appropriate, limits are also set for specific pro-ducts. For exposures to major customers, the amount of the limit used is monitored on a daily basis in accordance with the Banking Act (Kreditwesengesetz)

By way of analogy, limits are also defined and monitored for hedging and securities transactions at the level of individual counterparties and issuers.

A standardised process is in place within the section for deal-erships and major customers to handle the measurement of guarantees and collateral. These serve to compensate for losses in the event of default by the counterparty. The Credit Manual defines the type of guarantees or collateral that can be accepted. The extent to which guarantees and collateral are acceptable varies from portfolio to portfolio on account of differing regulatory requirements. Within the retail business, it is the financed vehicles themselves that primarily serve as collateral. In the dealership segment, other collateral may also be accepted on a case-by-case basis.

An early warning system, based on the internal credit ratings, has been installed for dealership and major customer business. This system has the function of identifying borrowers with impending financial difficulties. A borrower identified to be in this position receives special attention in the form of intensive management so that measures are taken to reduce the risk and prevent default. Furthermore, a watch list is maintained showing borrowers directly under threat of default.

Provision for credit risk is recognised in the form of specific allowances and portfolio-based allowances. A specific allow-ance is required to be recognised if it is likely that the customer will be unable to fulfil all interest and repayment obligations in the future. In the case of contracts for which no specific allow-ances are recognised, allowances are calculated at portfolio level with the aid of the IRBA parameters.

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Monitoring and communicationRisk Monitoring draws up a monthly management report for distribution to Executive Management and the Group Risk Controlling Function. In addition to general information on the risk situation of the Toyota Kreditbank Group, this contains aggregated quantitative information derived from the A-IRBA procedure. These reports represent a key component of the risk and management control system.

The reliability of the information derived from the A-IRBA procedure is examined monthly by Risk Monitoring and, where necessary, communicated to the Group Risk Controlling Func-tion and Executive Management. The latter also monitors the credit risk of the individual sub-portfolios by means of detailed reports. The reports are communicated on a quarterly basis to the Group Risk Controlling Function and Executive Manage-ment.

The tables below present the Toyota Kreditbank Group’s credit portfolio, broken down according to various risk classes.

UL (EUR million)

31/03/2015 in EUR millon

31/03/2015 in %

31/03/2014 in EUR millon

31/03/2014 in %

Germany 37.93 33.6 38.35 31.0France 21.01 18.6 21.71 17.6Italy 10.49 9.3 15.04 12.1Spain 19.44 17.2 15.29 12.3Norway 3.00 2.7 3.53 2.8Sweden 2.05 1.8 1.84 1.5Poland 4.48 4.0 11.69 9.4Russia 14.33 12.7 16.49 13.3Total 112.72 100.0 123.95 100.0

EAD (EUR million)

31/03/2015 in EUR millon

31/03/2015 in %

31/03/2014 in EUR millon

31/03/2014 in %

Low risk (creditworthiness classes 1-7) 6,362.83 85.44 6,230.7 83.39At watch (creditworthiness classes 8-9) 571.37 7.67 633.2 8.47At risk (creditworthiness classes 10-11) 356.14 4.78 454.3 6.08Default 156.79 2.11 153.8 2.06Total 7,447.13 100.00 7,472.0 100.00

b. Market riskMarket risks are defined as risks which may arise as a result of changes in rates of return, exchange rates and prices on the financial markets. This can give rise to a loss since these risks have an impact on the measurement of open interest rates, equity investment and currency exposures. The main risks for the Toyota Kreditbank Group are interest rate risk and exchange rate risk.

StrategyThe Toyota Kreditbank Group has set out a general framework for the management of assets and liabilities as part of its current group risk strategy. This framework takes the concrete form of internal group instructions and other guidelines/ manuals.

Derivative instruments are used as a general rule to hedge interest and currency risks. The derivative instruments used (interest swaps, interest/currency swaps and currency futures) are used exclusively for hedging purposes. In each case, the hedging instruments are matched by a liabilities-side hedged item with a corresponding opposite risk profile. Interest rate swaps are exclusively used to manage the general interest rate risk in the banking book.

The Toyota Kreditbank Group does not run a trading book and does not engage in any commercial transactions in the sense of aiming to make a short-term profit by exploiting market price fluctuations. All trading transactions serve to create an efficient bank book structure from the point of view of risk and return.

Money market transactions and the issue of own instruments are executed primarily with a view to securing the Toyota Kredit-bank Group's liquidity. Surplus liquidity may be invested with selected credit institutions.

Foreign currency riskIt is not a strategic objective of the Toyota Kreditbank Group to take up foreign currency positions. For this reason, Treasury endeavours where possible to hedge foreign currency balances and/or future foreign currency cash flows arising from trading contracts by appropriate offsetting transactions. Foreign cur-rency risks arising from strategic investments in the branches in Sweden and Norway are subject to continuous monitoring.

Residual value risk Residual value risks arise from negative variances between the actual and imputed residual value of a leasing asset. Depending on local circumstances and past experience gained marketing used cars, updated internal and external information regarding changes in residual values is fed continually into residual value forecasts.

For the purposes of determining which party actually bears residual value risks, a distinction is made between direct and indirect residual value risks. Direct residual value risks are those that are borne directly by the Toyota Kreditbank Group. These residual values are monitored within the Toyota Kredit-bank Group. Appropriate risk provisions have been recorded to take account of the current situation in used car markets. An indirect residual value risk exists when the risk has been transferred to a third party as a result of a residual value guar-antee.

Under the Toyota Kreditbank Group’s current range of pro-ducts, the residual value risk is transferred either to the lessee (residual value leases) or to the dealership (distance drivenleases) with the consequence that a counterparty risk arises in the first instance with regards to the residual value guaran-tee. If the residual value guarantor defaults or the calculated residual value cannot be realised, the leased asset (and hence the related residual value risk) is transferred to the Toyota Kreditbank Group.

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Interest rate riskThe Toyota Kreditbank Group pursues a dual control approach to interest rate risk. Monitoring and control are based on a value-at-risk indicator and the square hedge ratio. Limits/ranges, within which the respective figures should fall, are set for the relevant indicator.

The square hedge ratio is determined by dividing the sum of all refinancing amounts across all maturity ranges by the sum of the assets to be refinanced across all maturity ranges1.

The value-at-risk model is based on a historic simulation. The parameters used for the calculation are a confidence level of 99%, a holding period of 250 days and a mirrored interest rate history of 1,001 days.

Square hedge ratioValue-at-Risk in EUR millon

Sensitivity of the banking book in EUR millon2

Germany 87% -5.0 -8.6France 85% -1.4 -3.5Spain 81% -4.1 -7.0Sweden 79% -0.3 -0.3Norway 75% -3.1 -3.8Italy n.a. -0.8 -0.1Poland 71% -1.3 -0.8Russia 84% -13.0 -3.3

1 in each case up to the end of the currently valid fixed interest rate period2 200 bp ad-hoc interest rate shock

Management of market risksThe direction, timing and scope of future market price chan-ges are, by their very nature, unknown. The Toyota Kreditbank Group manages market risks by limiting the impact of market price changes on earnings and the risk coverage amount. Limits are monitored systematically using sensitivity and pre-sent value analyses.

Monitoring and communicationThe parent company's Treasury department in Cologne draws up the relevant reports on a monthly and/or quarterly basis for the Group as a whole. The reporting system contains the necessary information to ensure that stipulated limits and re-quirements are monitored.

c. Liquidity riskThe liquidity risk is defined as the risk that it may not be pos-sible to meet present and future payment obligations on time or in full (short-term liquidity) or that, in the event of a liqui-dity crisis, funds are obtainable for refinancing only at higher market rates (higher liquidity cost). In line with its overall banking strategy, the Toyota Kreditbank Group's liquidity risk strategy is aimed at ensuring a stable, comfortable liquidity position, thus – in particular – preventing insolvency and limiting any losses arising from refinancing on the money and capital markets.

These risks are managed with the aid of overnight and term deposits, repo transactions with the European Central Bank, the issue of commercial paper and promissory notes (Schuld-scheindarlehen).

As part of the risk measurement process, the refinancing risk (higher liquidity cost) is determined by means of regular scenario analyses (LVaR) based on present value calculations. The present value measures the additional refinancing costs for the coming twelve months in the event of an ad hoc in- crease in refinancing costs around a specified number of basis points. An indicator (DAF2) is calculated for the short-term liquidity risk reflecting the number of days for which secure sources of liquidity are currently available in order to cover future payment obligations (including new business).

The short-term liquidity risk is not taken into consideration in the calculation of risk-bearing capacity, since the liquidity risk relates to payments and not to earnings. By contrast, the higher liquidity cost risk is included in the risk-bearing capacity calculation.

d. Operational risksOperational risks are defined as the danger of incurring losses as a result of the inappropriateness or failure of internal pro-cedures, employees, the internal infrastructure or as a result of external factors.

Within the Toyota Kreditbank Group, the definition of opera-tional risks also covers model risks arising from inappropriate models and legal risks from contractual agreements or statu- tory requirements.

The principal objective in terms of the management of opera- tional risks is to identify potential causes for losses in good time and to avoid disruptions to operations (e.g. through serious damage to key equipment). For this reason, a compre-hensive and integrated approach is applied to identifying, analysing and assessing the full range of operational risks.

Responsibility for the management and control of operational risks lies with the centralised Risk Management Department. OpRisk Managers at branches and subsidiaries are responsible for ensuring close cooperation between head office and local departments and are responsible for assessing operational risks and implementing operational risk management pro- cesses locally.

The remit of the centralised Risk Management Department includes the specification of methods to be used to identify, quantify and control operational risks as well as appropriate reporting to the OpRisk Committee, which, in turn, reports to Executive Management and the Group Risk Controlling Func-tion on the risk situation and measures taken.

As part of the annual scenario based OpRisk inventory, opera- tional risks are allocated to four levels of risk using a risk matrix, depending on frequency and loss potential. In the case of risks in the top two levels, risk mitigation strategies must be devised and the resulting measures implemented in order to reduce the risks to an acceptable level.

Risk capital requirements for the purpose of measuring risk-bearing capacity are calculated with the aid of a Monte Carlo simulation after aggregating the results of individual scenarios applied in conjunction with the OpRisk inventory. The OpRisk Committee notifies Executive Management and the Group Risk Controlling Function if the groupwide limits are exceeded.

This combination of procedures ensures that the sum of all risks is always covered by the amount allocated to cover this particular risk category in accordance with the risk-bearing capacity concept, thus safeguarding the bank's going concern status.

In order to protect against legal risks, Toyota Kreditbank GmbH requires the use of standardised framework agreements which have been checked in advance by the Legal Department. Legis-lation and court rulings that are relevant for the bank's business are monitored by the Legal department. Non-standard con-tractual provisions are examined by the Legal Department.

"Business Continuity Plan" and "Business Continuity Manage-ment" guidelines are in place for all locations in Germany and abroad, including communication plans, work instructions, system descriptions and rules of conduct.

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e. Business riskBusiness risk is defined as the risk of unexpected decreases in earnings and negative variances from budget, which do not have their origin in other defined risk categories. Business risk can be caused by changes in customer behaviour or changes in economic conditions which do not have their origin in legis-lation. The Toyota Kreditbank Group plans income and expenses as part of its forecasting process. Forecasting, however, is always subject to a degree of uncertainty. For instance, fiercer competition or a poor reputation – either of the Toyota brand or of the Toyota Kreditbank Group – could have a negative impact on operating results.

In order to manage forecasting variances, the Toyota Kredit-bank Group has created a scenario model based on key fore- casting figures. This involves subjecting the key indicators "retail new vehicle sales", "average dealership financing", "retail penetration", "retail margin" and "dealership financing margin" to stress after gathering expert opinion and deter- mining the negative impact on forecast earnings. Under the going concern approach, the forecast profit included in the risk coverage potential calculation is reduced by the business risk. Under the liquidation approach – in which forecast profit is not included in the risk coverage potential calculation – the business risk is deducted only if the scenario calculation gives rise to a forecast loss.

3. Summarised description of risk situationAt no stage during the financial year 2014/2015 did the total amount of risks entered into exceed the Toyota Kreditbank Group's risk coverage potential, thus demonstrating its capa-city to bear risk throughout the year under review.

There are no indications of risks which could pose a threat to the Group’s going concern status or which could have a ma- terial adverse impact on its net assets, financial position or results of operations for the current year.

The Toyota Kreditbank Group’s strategy of achieving a sus- tainable risk conscious growth in business volumes is based on the intention of remaining within the risk coverage poten- tial. Based on current forecasts, risk-bearing capacity require-ments will be complied with in the 2014/2015 financial year.

E. Outlook

As a financial services provider, the Toyota Kreditbank Group offers a range of financing and leasing products to Toyota dealerships and retail customers within a defined operating territory in order to support the sale of cars. The scope of opportunities available is significantly lower by comparison to that of banks offering a full range of banking services. The Toyota Kreditbank Group's performance is also highly depen-dent on sales of Toyota and Lexus brand vehicles within the operating territory. For this reason, positive developments in the market as a whole do not necessarily correlate with the performance of the Toyota Kreditbank Group.

1. Future macro-economic situationThe global economy is expected to grow in the calendar year 2015 at a similar level to 2014. The IMF forecasts global GDP growth of 3.5 % for 2015, compared with 3.4 % one year earlier.

Real GNP and consumer prices 2015-2017

GNP Change compared to previous year %

Consumer pricesChange compared to previous year %

Countries 2015 2016 2017 2015 2016 2017

Euro area 1.5 1.6 1.7 0.1 1.0 1.4Germany 1.6 1.7 1.7 0.2 1.3 1.7Poland 3.5 3.5 3.5 -0.8 1.2 2.0Russia -3.8 -1.1 1.3 17.9 9.8 6.9

Source: IMF (2015, 2016), Focus Economics (2017)

GNP increased by 0.9% in the Euro area in the calendar year 2014. The forecast for 2015 is an increase of 1.5%, driven by Germany's expected growth rate of 1.6%. Low interest rates and a stable situation on the employment market will strengthen consumer spending further. In addition to a slight increase in consumer spending, the coming year should also see a rise in investment activities.

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Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

In view of the circumstances and in order to overcome on-going sovereign debt problems and potential deflation con-cerns, the ECB is set to continue its expansionary monetary and low interest rate policies in 2015 in order to underpin economic recovery in the Euro area. The ECB reduced its main refinancing rate at the beginning of September 2014 to 0.05%. In addition, it announced its intention of buying government and private bonds for a monthly amount of up to EUR 60 billion in the period from spring 2015 to autumn 2016, with a view to lifting the inflation rate back to approximately 2.0%. The Toyota Kreditbank Group does not expect any significant rise in short-term interest rates in the near future; if there is any change in the situation, it is only expected to entail small rises in medium- and long-term interest rates. The ECB's low interest rate policy will result in higher credit disbursement by the banks and hence to a more competitive market envi-ronment for the Toyota Kreditbank Group.

According to a study undertaken by the Center Automotive Research of the University of Duisburg-Essen, the global growth rate of 3.5 % forecast by the IMF for the calendar year 2015 should also be reflected in increased global demand for passenger vehicles. An average growth rate of 3.0% is predicted for passenger vehicle sales. According to the study, the principal drivers of growth will be China and the USA.

Automobile sales may well develop differently in the various countries covered by the bank's operating territory. Whereas the predicted rates of growth in Germany and France are low and in Russia even negative, vehicle sales in Italy and Spain are expected to grow at above average rates.

New registrations of Toyota vehicles are again expected to rise slightly year-on-year in the various markets in the coming financial year. Despite restructuring of the dealership network in Germany that is planned for the coming calendar year, we expect registration figures for the German market to come in at the previous year's level.

2. Review of operations of the Toyota Kreditbank GroupThe following section describes the expected future develop-ment of the Toyota Kreditbank Group, based on the general business and economic conditions described above. The following outlook is based on forecasts (and specific budgets) drawn up at the end of 2014 for the individual markets includ-ed in the Toyota Kreditbank Group's operating territory. The forecast period covers the 2015/2016 financial year. The forward looking assertions contained therein are based partly on general expectations of future macro-economic develop-ments, with a primary focus on the automobile sector.

We expect to achieve stable levels of lending by focusing on retail customers and offering a comprehensive range of services to dealers. As in the previous year, there are plans to expand the bank's leasing portfolio in Germany and abroad by the addition of new products tailored to commercial customers' require-ments, in the hope that the leasing business in Germany also settles down at the previous year's level.

The net interest result is expected to be at a similar level to the 2014/2015 financial year.

The Toyota Kreditbank Group will continue to apply a policy of rigorous cost management in order to ensure that cost levels remain commensurate with business volumes. Due to invest-ments in strategic business segments, however, the Toyota Kreditbank Group forecasts a slight increase in administrative expenses for the 2015/2016 financial year. The risk provisioning expense for lending business is likely to be at a similar level in 2015/2016 to the past financial year. Appropriate levels of risk provision have been recognised to take account of macro-economic developments in the territory in which the Toyota Kreditbank Group operates.

The negative impact on the Russian economy caused by the Ukraine crisis, including a massive loss in value of the Rouble and a rise in benchmark interest rates in Russia, is already showing signs of stabilising. In view of the political and eco-nomic situation, we forecast lower overall vehicle sales in Russia, with the Toyota brand achieving a stable market share. In the medium term, we expect vehicle sales to return to a positive trend, thus generating a rising volume of vehicle financing.

As a result of the pressure on margins, profit from ordinary activities for the 2015/2016 financial year is expected to be at a similar level or slightly lower than profit reported for the 2014/2015 financial year and hence still at a satisfactory level. Based on its coherent business concept, good liquidity and refinancing structure, the strong partnership with the dealer network and its efficient organisation, management considers that the Toyota Kreditbank Group is well positioned to rise to future challenges. Comprehensive mobility concepts, financing packages combined with service and insurance products as well as new digital sales and marketing instruments are set to play a key role in the future strategic direction of the business.

Cologne, 16 July 2015

Toyota Kreditbank Group

Executive Management

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Annual Report of Toyota Kreditbank GmbH Group

Foreword Consolidated financial statements Report Auditors’ Report

Auditors’ ReportWe have audited the consolidated financial statements prepared by Toyota Kreditbank GmbH, Cologne, comprising the consoli-dated balance sheet, consolidated income statement, notes to the consolidated financial statements, consolidated cashflow statement, consolidated statement of changes in equity and segment reporting together with the group management report for the business year from 1 April 2014 to 31March 2015. The preparation of the consolidated financial statements and the group management report in accordance with German commer-cial law are the responsibility of the parent company’s manage-ment. Our responsibility is to express an opinion on the consoli-dated financial statements and on the group management report based on our audit.

We conducted our audit of the consolidated financial statements in accordance with Article 317 HGB ("Handelsgesetzbuch": "German Commercial Code") and generally accepted German standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany, IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accor- dance with German principles of proper accounting and in the group management report are detected with reasonable assur-ance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determina-tion of audit procedures. The effectiveness of the accounting related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit.

The audit includes assessing the annual financial statements of those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and con-solidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and group management report. We believe that our audit provides are a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the consolidat-ed financial statements comply with the legal requirements and give a true and fair view of the net assets, financial positionand results of operations of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development.

Düsseldorf, 17 July 2015

(Original German version signed by)

KPMG AGWirtschaftsprüfungsgesellschaft

Kügler, Wirtschaftsprüfer Ernstberger, Wirtschaftsprüfer

In the event of the publication or transmission of a version of the consolidated financial statements and/or the consolidated management report which diverges from the version on which we delivered our opinion, including translations into other languages, in so far as our audit opinion is quoted or our audit referred to, a fresh opinion must be obtained from us. In this respect, the reader is referred to Section 328 of the German Commercial Code.

According to § 26a KWG The requirements of EU guideline 2013/36/EU ("Capital Requirement Directive", CRD IV) was transposed into German law with § 26a (1) sentence 2 KWG.

CRR institutes are required to publish the following information under "Country by Country Reporting".

1. company name, type of activity and geographical position of branches

2. turnover3. average number of employees in Full Time

Equivalent (FTE)4. profit/loss before tax 5. income taxes and profit/loss6. government aid received

turnoverin EUR

average number of employees

profit/loss before tax

in EUR

income taxes on profit/loss

in EUR

government aid received

in EUR

Germany 60,186,583.09 250 7,949,662.26 1,260,401.74 0,00France 26,222,264.63 81 28,309,634.80 7,525,071.84 0,00Sweden 4,710,829.33 27 6,169,230.37 7,896.51 0,00Norway 16,659,199.88 28 10,967,344.16 0.00 0,00Spain 16,788,147.67 47 3,404,596.38 5,836,246.69 0,00Italy 4,917,747.27 12 393,402.73 597,594.84 0,00Poland 12,401,839.90 107 1,098,740.18 423,625.38 0,00Russia 56,759,052.91 153 26,744,348.89 5,901,237.31 0,00

type of activity place of business country

Toyota Kreditbank GmbH bank Cologne GermanyToyota Leasing GmbH financial services Cologne GermanyToyota France Financement bank Vaucresson FranceToyota Kreditbank GmbH Tyskland, Sverige Filial bank Sundbyberg SwedenToyota Kreditbank GmbH, Norsk Filial bank Drammen NorwayToyota Kreditbank GmbH, Sucursal en Espana bank Madrid SpainToyota Kreditbank Germany, Filiale Italiana bank Rome ItalyToyota Bank Polska S. A. bank Warsaw PolandToyota Leasing Polska Sp. z o.o. financial services Warsaw PolandZAO Toyota Bank Russia bank Moscow Russia

Turnover is the profit before tax as shown in financial state-ments before consolidation effects, risk provisioning and other operating expenses.

Taxes on profit/loss are are shown as in financial statements.

This report contains the relevant data of fully consolidated companies as of March 31, 2015.

The average number of employees is shown in terms of full time equivalents according to § 267 (5) HGB.

Country by Country Reporting as of March 31, 2015

72 – 73

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