January 2013 Sales Conference Call
Friday, Feb. 1, 2013

• Think everyone a little apprehensive about start of the year
  • Fiscal Cliff debates
  • New tax rates
  • January normally a slower month

• Sales should come in around 1,040,000
• Up 13.9 percent from last January on a straight volume basis
• Works out to SAAR of about 15.2 million
• Best industry start since 2008

• Great month for Toyota, Lexus and Scion
• Total sales of 157,725
• Up 26.6 percent
  • Biggest gain of any manufacturer in January
  • Just about doubling industry average
  • Share of more than 15 percent

 That breaks down to

• Toyota Division: 26 percent
  • #1 retail brand
• Lexus: up 32 percent
• Scion: gained 38 percent

 At Toyota

• Biggest volume gainers were Prius and Corolla
• Prius family up over 36 percent
  • Best January ever
• Corolla up over 32 percent

 Camry continues to put up big numbers

• Nearly 32,000
• Plus 13 percent
• Started 2013 the same way it ended last year
  • Best-selling car in America

Two newest models are off to great starts

• Fastest turning models in our lineup

 Avalon, first full month of sales

• Topped 4,800
• Up over 50 percent
• Hybrid 40 mpg rating attracting interest
  • about 20 percent of mix
• Not yet at full availability

 RAV4 began arriving at dealerships in mid-January

• Sales of more than 11,600
• Up 18 percent
• Good sell down and steady ramp up of new model
• New models about 20 percent of mix

 Hybrid sales…

• Probably getting a little boost from rising gas prices
• Hybrid sales up 45 percent
• More than 21,000 total units
• 15 percent of Toyota Division sales
• Well-positioned for future hybrid growth
• In addition to new models
• Best Prius inventory we’ve had in long time

 On the truck side

• Toyota Division truck sales up over 28 percent
  • Every single model posted double digit gains
  • In addition to RAV4:
• 4Runner up nearly 54 percent
• Tacoma 30 percent
• Highlander 29 percent
• Tundra 27 percent
• Sienna 23 percent

 Toyota Certified Used Vehicles

• All-time record January
• Sales of nearly 26,500
• Up over 12 percent

 Looking ahead

• The RAV4 advertising launch begins on the Super Bowl
  • Featuring Kaley Cuoco from the Big Bang Theory
  • Already generated nearly 9 million views online
    • Just five days
• Next week unveil new Tundra at Chicago Auto Show
  • On-sale this fall
  • Latest of 9 all-new or significantly updated models to be introduced this year
• Follows intro of Corolla Furia Concept at Detroit
  • very well received

 To keep the momentum going,

• Consumers responding to our new products
• And great value we’re able to offer
• Low interest are making cars more affordable than ever before
  • In many cases, car payments are nearly as low as lease rates 

 In closing,

• January good start to the year for the industry
• Great start for Toyota 

 
We expect continued stability in the economy to bode well for the industry in the months ahead,
with pent-up demand, an influx of new models and great value combining to bring people into dealerships.
 
Now I’d like to turn this over to Tim Morrison for a look at the Lexus results.
 
 
Tim Morrison
Vice President, Sales and Dealer Development
Lexus Division
 

• Coming out of a strong December sales event, we are very pleased with Sales results for January.
• Lexus sold 16,211 vehicles, increase of 32 percent over last January on a volume basis
• Car sales led the way with an increase of 61 percent over last year
  • After a very busy launch year in 2012, when we introduced 9 new or significantly refreshed vehicles, we are fully stocked and offering a great selection of these new products, and customers are responding.
• New ES continues to sell well:  5,186 units  (>25 percent hybrids)
• While ES and RX continue to be volume leaders, we are seeing a pretty even distribution of sales across the rest of our lineup…speaks to the breadth of our offerings.
• The IS World Premiere in Detroit was the really big news for us in January.
  • The webcast of the reveal on Lexus.com and our Facebook page was viewed by more than 600,000 people around the world, in 99 countries from Albania to Zimbabwe. 
  • Early reaction to the vehicle from journalists, customers and dealers has been fantastic
  • Dealers can’t wait to get it in their showrooms.
  • C/G IS is already the youngest car in the luxury industry.  With N/G IS focus on design, advanced technology, and engaging driving dynamics, we expect it to bring even younger customers to the brand.
• In summary:
  • With a strong January we’re off to a great start in 2013
  • With great inventories of our recently launched models and more exciting vehicles new to come, we expect the momentum to continue.

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