James FarleyVice President, Scion

January 19, 2005

Owner’s Passion

Scion Exposed Owner Event

February ‘04Orange County, California

Owner’s Passion

% of Potential New Car Buyers

0%

5%

10%

15%

20%

25%

30%

35%

40%

2004 2010 2020 2025 2030

Boomers

Gen Y

Generation Y: Future of the Marketplace

Generation Y – Will be within 5% of the Boomers in < 5 years

20%20%

5%5%

Different Expectations

Product Choice

Customization

Product Quality & Service

How we tried to adjust:The Scion Story

•One to One MarketingCustomer shares an intimate relationship with

Scion

•Creative EngineeringDemocratize luxury and celebrate creativity

•Redesigning RetailTimeliness, transparency and salesperson

knowledge

Scion Internet Sites

– Scion.com– Scionlife.com– Scion Evolution– Scion Magazine

Scion Test DrivestC Unleashed

Building a Community

Scion Sessions

Art Cars

AftermarketShows

Magalog

Film Festivals

Scion Advertising

Creative Engineering

Premium Compact Owners 35 and Under Are More Critical than Older

Owners

139

195

120 123138

93114

90

Scion Toyota* Honda* PremiumCompact*

35 and Under Over 35 Years Old

*Note: Premium Compact Owners Only

Problems Per 100

40%

J.D. Power and Associates

Initial Quality Survey 2004

Scion Accessory Strategy

Shop in Shop

Finance and Insurance

Vehicle Purchase Time(minutes)

J.D. Power and AssociatesSales Satisfaction Study

2004

35

76

29

29

60

40

0

20

40

60

80

100

120

140

Scion Non-Luxury

Negotiating Your Deal

F&I / Paperwork

Delivery

Note: Segment Average excludes Scion and Toyota

For the industry, younger buyers clearly are more challenging to

pleaseRelationship Between SSI and Age

828

812

823826

835838

852

860

868

876

780

805

830

855

880

Under25

Years

25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 orolder

Age

SS

I

IndustryAverage

846

J.D. Power and AssociatesSales Satisfaction Study

2004

Gen Y Becomes the Automotive Customer

Are We Ready?

0%

5%

10%

15%

20%

25%

30%

35%

40%

2004 2010 2020 2025 2030

Boomers

Gen Y

0%

5%

10%

15%

20%

25%

30%

35%

40%

2004 2010 2020 2025 2030