Lexus Global Strategy and 2025 Financial Performance

Record Global Sales Achievement

Record Global Sales Achievement 2025 Global Sales Milestone Lexus achieved record-breaking global sales of 882,231 units in 2025, representing 104% of the previous year. This milestone demonstrates strong market recovery and brand resilience across major automotive regions. North America Leadership: 408,070 units (108% YoY), led by flagship SUV models RX, NX, and TX Asia-Pacific Growth: 237,946 units in Asia region (100.3% YoY), with China contributing 182,458 units Japan Market: 87,418 units (101.6% YoY), marking the brand's 20th anniversary Strategic Expansion: European and emerging markets showing selective growth with Middle East at 45,645 units (101.4% YoY)

Record Global Sales Achievement

Record Global Sales Achievement Regional Performance Breakdown Region 2025 Sales Year-over-Year Key Driver North America 408,070 108% RX, NX, TX SUV strength China 182,458 100.3% Stable luxury demand Japan 87,418 101.6% 20th anniversary momentum Europe 80,686 97.7% Selective market Middle East 45,645 101.4% Growing premium segment

Electrification Strategy and Product Innovation

Electrification Strategy and Product Innovation Next-Generation Electrified Lineup Lexus accelerated its electrification roadmap with the launch of the fully redesigned ES sedan and the advanced RZ all-electric SUV featuring Steer-by-Wire technology. The brand committed to electrified versions across all major model lines by 2025. ES Electric Flagship: BEV sedan leading the next-generation portfolio with enhanced range and performance RZ 550e F SPORT: New high-performance variant with Interactive Manual Drive virtual gear shifting and up to 100km extended range Extended EV Portfolio: Mid-2026 large BEV SUV (TZ) and 2027 next-generation BEV models planned

Electrification Strategy and Product Innovation

Electrification Strategy and Product Innovation Brand Vision and Market Position Lexus unveiled its "DISCOVER" brand message at the Japan Mobility Show 2025, emphasizing premium experiences and customer-centric innovation. The brand reinforced its exclusivity through limited dealership network density and premium profitability metrics. Premium Positioning: Limited rooftop count globally creates scarcity advantage and high per-store profitability Strong Demand: Q3 2025 sales increased 13.1% versus Q3 2024 with GX 500 and LX commanding exceptional margins Dealership Valuation: New blue-sky multiple range increased to 9.0x to 10.0x, reflecting brand strength and market resilience

Electrification Strategy and Product Innovation

Electrification Strategy and Product Innovation Strategic Outlook and Investor Confidence Lexus defied luxury market headwinds in 2025 while competitors like BMW, Mercedes, and Audi faced challenges. The brand's consistent profitability, limited dealer network, and robust electrification roadmap positioned it as a premium defensive investment with growth potential. Market Differentiation: Rare franchise status commanding premium valuations in competitive luxury sector Innovation Leadership: Steer-by-Wire adoption and flexible electrification strategy ensuring long-term competitiveness Investor Appeal: Record sales, stable margins, and disciplined brand management support valuation expansion through 2026