Toyota Financial Services Danmark A/S

Statement of policy for data ethics

Developments in the financial year The financial year, which is the 20th consecutive business year for the company, shows a result of DKK 81.645.000 after tax. The result is impacted by instability of the financial markets influencing the automotive industry and the financing thereof. During the financial year an overall drop in the market for cars has been realized. The market development was also affected by e.g., price increases in energy and raw materials and had some influence in the financial year including the general macroeconomic. Management considers the result as satisfactory, in the circumstances. General risks The company’s main operating risks are connected to residual value guarantees and credit risk. Accordingly, the company has implemented procedures to follow the development in residual values closely. Residual values on cars are set to match the estimated market value of the car by the end of the contract, including further changes in registration tax as expected. Credit risk is monitored through ongoing credit evaluations, including Toyota vendors and other major clients. Financial risks The company enters into loan and leasing agreements with both fixed and variable interest terms. It remains the policy of the company to make sure that the financing of the contracts is matched in such a way as to minimize the exposure of changes in interest rates. In addition to this, it is the company’s policy to exclusively enter into/finance loan agreements based on Danish crowns (DKK), in order to eliminate the currency exposure. Capital resources Toyota Financial Services A/S has entered into a financing contract with Toyota Motor Finance (Netherlands) B.V. and has in doing so secured the necessary funding. This contract is prolonged on a current basis. Investments The company managed – despite the challenging market environment - a slight increase in its portfolio. It is expected that ongoing investments will be made to enable a further portfolio growth within the next 2-3 years. The company does not envisage making any other sizeable investments in the upcoming financial year.