2025 Toyota Finance Australia EMTN Program Supplementary Prospectus Analysis

1. Nature and Background of the Supplementary Prospectus

• The document in question is the supplementary prospectus related to Toyota Finance Australia Limited (TFA) released on September 12, 2025, associated with the Euro Medium Term Note (EMTN) program, which serves to supplement or update the original base prospectus [1][2].
• The EMTN program previously had base prospectuses dated September 15, 2023, and September 13, 2024; this supplementary prospectus further updates and corrects them [1].

2. Updates to the EMTN Program and Impact on Financing Strategy

• In September 2025, the EMTN issuer renewed the program for a one-year term (not a traditional “extension”), with relevant arrangements and term updates reflected in this supplementary prospectus; the maximum issuance balance limit of the EMTN program can reach the equivalent of 60 billion euros [2].
• The supplementary prospectus provides updated terms, risk factors, and transaction arrangements, correcting existing base documents to align the issuance framework with the latest market and regulatory requirements. This helps maintain and consolidate diversified funding sources and improve the stability and flexibility of the capital structure [1][2].
• As part of the Toyota Group’s global financing system, TFA’s EMTN activities, together with other regional issuers (e.g., TMCC, TMF), form a regular financing channel in the international capital market, supporting business expansion and capital turnover [1][2].

3. Impact on Market Expansion

• Through its wholly-owned subsidiary Australian Alliance Automotive Finance Pty Limited (AAAF), TFA collaborates with Mazda Australia and Suzuki Australia to provide retail and dealer financial services, expanding from single-brand to multi-brand service capabilities [1].
• Multi-brand services enhance customer and dealer stickiness, improve cross-selling and network value; however, they also require strengthened investments in system risk control, compliance management, and collaborative operations to address more complex risk and compliance requirements [1].
• Multi-brand expansion helps boost TFA’s position and share in Australia’s auto finance market, adapting to its highly competitive and structurally differentiated environment. Yet, factors like intensified competition and policy/regulatory changes need continuous monitoring [3][4].

4. Potential Risks and Key Points

• Risk factors: Interest rate fluctuations, capital market volatility, credit risk, asset quality/residual value changes, multi-brand collaboration/integration costs, and regulatory compliance requirements may pressure profitability and capital management. The supplementary prospectus typically updates and emphasizes these risks [1][2].
• Execution challenges: Multi-brand operations require adapting risk control frameworks, compliance processes, systems, and personnel to more complex business models; improper execution may harm operational efficiency and cost control [1].
• Strategic balance: While pursuing scale and synergy, TFA must align with the Toyota Group’s overall strategy and ensure the robustness of its capital structure, credit rating, and funding costs [1][2].

5. Conclusion

• This supplementary prospectus strengthens TFA’s financing flexibility and stability in the capital market by updating and correcting the EMTN program and related frameworks, providing financial support for business expansion [1][2].
• At the market level, the document reflects TFA’s ongoing push for multi-brand financial services, which enhances market coverage and synergy value. However, simultaneous improvements in risk control and compliance capabilities are needed to address a more complex operating environment and potential market risks [1][3][4].
• Overall, the supplementary prospectus has a positive impact on consolidating financing foundations and supporting market expansion, while highlighting relevant risks and execution points to provide investors with more transparent and timely information [1][2].

References
[1] Supplementary documents to the EMTN Programme Prospectus (Toyota Finance Australia, etc.) and related information, updated September 12, 2025. Source: London Stock Exchange / Toyota Finance disclosure documents (supplementary prospectus, etc.)
[2] Toyota Finance’s EMTN program materials and investor documents, including explanations of the September 2025 renewal and supplementary prospectus, and project overviews. Source: Toyota Motor Finance / Toyota Financial Services official documents
[3] Analysis of Australia’s auto finance market and competitive landscape (including multi-brand strategy and industry background). Mordor Intelligence
[4] Analysis of Australia’s auto finance market structure and competitive situation (including industry landscape and key players). Mordor Intelligence
[0] Jinling API data and retrieved FMP/official disclosure documents, supporting data points and analysis frameworks in this content