Driver Australia Eight Trust Publishes Period 33 Investor Report Detailing Volkswagen Financial Services Auto ABS Performance

Driver Australia Eight Trust Structure and Volkswagen Financial Services Australia's Role

The Driver Australia Eight Trust is an Australian ABS transaction where Volkswagen Financial Services Australia Pty Limited (ABN 20 097 071 460) acts as originator, seller, and servicer of the underlying receivables pool. Perpetual Corporate Trust Limited (ABN 99 000 341 533), based at Level 18, 123 Pitt Street, Sydney NSW 2000, serves as trustee and corporate services provider. This multi-role arrangement is typical in Australian ABS deals, with the originator maintaining operational control while a specialist trustee holds legal title for noteholders.

The trust benefits from a broad network of transaction parties: Perpetual Nominees Limited (ABN 37 000 733 700) as trust manager; Australia and New Zealand Banking Group Limited as lead manager and account bank; ING Bank N.V. of Amsterdam as swap counterparty; Austraclear Limited managing clearing; and ratings from S&P Global Ratings Australia Pty Ltd and Fitch Ratings, with Australian surveillance teams overseeing ongoing monitoring. This governance framework supports the trust’s transparency and regular reporting obligations.

Period 33 Reporting: Key Dates and Payment Schedule for June 2026

Period 33 covers 1 June 2026 to 30 June 2026, with a reporting date of 30 June 2026 and publication on 16 July 2026. The interest accrual period spans 22 June 2026 to 21 July 2026, totaling 29 days. The latest payment date was 21 July 2026, with the next payment scheduled for 21 August 2026. Reports are issued monthly on the 16th, with payments on the 21st, ensuring consistent updates for noteholders and market participants tracking trust performance.

Established with a cut-off date of 30 September 2023 and issue date of 25 October 2023, the trust anticipates a clean-up call in May 2027 and final maturity on 23 February 2032. Monthly reporting provides investors with ongoing data on pool performance, credit enhancement, and amortisation progress, crucial for evaluating note risk and returns.

Receivables Pool Breakdown: New vs. Used Cars and Product Types

As of 30 June 2026, the pool includes 23,463 contracts with an Aggregate Discounted Receivables Balance of AUD 750,042,947.27. New cars comprise 16,067 contracts (68.48%) with a balance of AUD 560,167,494.94 (74.68%). Used cars account for 7,396 contracts (31.52%) with AUD 189,875,452.33 (25.32%) of the pool value.

By product type, chattel mortgage contracts number 13,109 (55.87%) with AUD 504,863,201.99 (67.31%), while consumer loans total 10,354 contracts (44.13%) with AUD 245,179,745.28 (32.69%). This structure reflects VWFS Australia's role as a captive auto financier serving both individual and business customers acquiring Volkswagen Group vehicles via instalment finance.

Cumulative Net Loss and Credit Enhancement Status at Period 33

The cumulative net loss ratio, a key ABS metric, stands at 0.77351% of the Discounted Receivables Balance at Pool Cut Date as of Period 33. The current period net salvage loss was AUD 61,692.84, bringing cumulative net salvage loss to AUD 5,801,677.32. These figures track credit deterioration within the pool over time.

Four tiered Credit Enhancement Increase Conditions remain untriggered: Level 1a (0.40% threshold before/during October 2023), Level 1b (0.80% from November 2024 to October 2025), Level 1c (1.20% after October 2025), and Level 2 (1.80% overall). With cumulative losses nearing 0.77351%, the pool approaches the Level 1b threshold, making this a critical metric for future monitoring.

Clean-Up Call Condition: VWFS Australia's Repurchase Option Set for May 2027

The clean-up call mechanism allows Volkswagen Financial Services Australia to repurchase remaining receivables when the outstanding Aggregate Discounted Receivables Balance falls below 10% of the initial pool balance. As of Period 33, the balance is 19.61%, indicating significant amortisation since the October 2023 issuance.

The report projects the clean-up call condition will be met in May 2027. Exercising this option would lead to full repayment of principal and accrued interest per the transaction’s Order of Priority. However, exercising the clean-up call is at VWFS Australia's discretion and not guaranteed. The final maturity date of 23 February 2032 remains the ultimate fallback if the option is not exercised. Investors should note the 10% threshold for this option.

No Receivables Repurchases Recorded in Period 33 or Earlier

The report confirms zero receivables repurchases during Period 33 and prior periods, with no contracts repurchased and no associated compensation or repurchase payments. This indicates no non-eligible contracts, repudiations, reloads, or cancellations requiring repurchase to date.

Repurchases would only occur due to eligibility breaches discovered post-cut date or contract repudiations, standard protections in Australian ABS to maintain pool quality. The absence of repurchases suggests the Volkswagen Financial Services Australia originated pool has performed within eligibility criteria. No transaction party changes occurred in Period 33.

Transaction Parties: Roles of ANZ, ING, Mizuho, MUFG, and Perpetual in Driver Australia Eight

The transaction involves multiple financial institutions: Australia and New Zealand Banking Group Limited (ANZ) serves as lead manager and account bank; P.T. Limited acts as security trustee; Mizuho Securities Asia Limited and MUFG Securities Asia Limited, both Hong Kong-based, are also involved reflecting the international investor base.

ING Bank N.V. of Amsterdam is the swap counterparty, providing interest rate hedging. Austraclear Limited manages note clearing in Australia. Ratings and surveillance are provided by S&P Global Ratings Australia Pty Ltd and Fitch Ratings, with dedicated Australian teams. This diverse party network highlights the complexity and institutional nature of the ABS structure.

Servicer Duties and Volkswagen Financial Services Australia's Operational Role

Volkswagen Financial Services Australia Pty Limited (ABN 20 097 071 460), located at Level 1, 24 Muir Road, Chullora NSW 2190, serves as servicer, responsible for collecting payments, managing arrears and hardship, processing prepayments, and remitting funds per the transaction waterfall. The ABS Operations team can be contacted at [email protected] or +61 2 9751 6257 for investor and rating agency inquiries.

The servicer's dual role aligns VWFS Australia's interests with pool performance. As a captive auto finance subsidiary of Volkswagen Group, VWFS Australia finances retail and commercial customers purchasing Volkswagen Group vehicles in Australia. Monthly pool data reporting covers vehicle and product type composition, arrears, hardship, prepayments, and contract details, meeting Australian regulatory expectations for listed ABS.

Amortisation Progress and Upcoming Structural Milestones Before Final Maturity in 2032

The Period 33 report highlights significant amortisation, with the outstanding balance at 19.61% of the initial discounted receivables balance. Since issuance on 25 October 2023, approximately 33 months of collections, prepayments, and losses have reduced the original AUD 750,042,947.27 pool.

Remaining milestones include the expected clean-up call in May 2027, which if exercised would terminate the transaction early with full note repayment. If not exercised, the final maturity remains 23 February 2032, providing a long-term backstop. The report’s run-out schedule and amortisation profile offer detailed data on pool runoff pace. Investors should monitor the balance approaching the 10% clean-up call threshold, arrears trends, and credit enhancement changes as key performance indicators.

Risk Factors Specific to Driver Australia Eight ABS Transaction

While Period 33 shows the trust performing within structural limits, several risks merit attention. The cumulative net loss rate of 0.77351% nears the Level 1b Credit Enhancement Increase Condition threshold of 0.80% applicable from November 2024 to October 2025. Exceeding this could trigger credit enhancement mechanisms, potentially impacting junior noteholder returns. Investors should consult the full credit enhancement and swap-fixing waterfall disclosures for comprehensive risk insight.

Additional risks include possible rises in arrears due to broader Australian economic conditions, fluctuations in used car values affecting net salvage recoveries, and operational risks from VWFS Australia's dual servicer and clean-up call option holder roles. The clean-up call timing in May 2027 is discretionary, not guaranteed, and the trust could continue amortising until 2032 maturity. Prepayment risk, where obligors repay early, may affect amortisation pace and principal distributions. No forward guidance on loss rates or prepayment speeds was provided beyond Period 33 data.