Volkswagen Financial Services Australia Releases June 2026 Monthly Report for Driver Australia Ten Securitisation

Driver Australia Ten Securitisation Structure and Key Participants

Perpetual Corporate Trust Limited manages the Driver Australia Ten Trust, a securitisation vehicle financing automotive receivables originated and serviced by Volkswagen Financial Services Australia Pty Limited. The trust involves multiple parties with defined roles: Perpetual Corporate Trust Limited serves as trustee and corporate services provider at Level 18, 123 Pitt Street, Sydney NSW 2000; Perpetual Nominees Limited acts as trust manager; Australia and New Zealand Banking Group Limited provides account banking services; and P.T. Limited functions as security trustee overseeing collateral.

The transaction benefits from layered credit enhancements and market infrastructure. Mizuho Securities Asia Limited and ING Bank N.V., Singapore Branch act as lead managers, while Mizuho Bank, Ltd. supplies interest rate and currency swap arrangements to hedge portfolio risk. Moody's and S&P Global Ratings Australia conduct ongoing surveillance to monitor credit quality and structural compliance. Austraclear Limited handles clearing and settlement for issued notes, ensuring efficient payment processing and record-keeping. This multi-party framework reflects the complexity typical of large Australian asset-backed securitisations.

Portfolio Composition and Contract Balances

The Driver Australia Ten portfolio comprises 20,086 financing contracts split between new and used vehicles. New car contracts dominate with 13,961 contracts (69.51%) totaling AUD 573,762,841.54 in discounted receivables. Used vehicle contracts represent 30.49% with 6,125 contracts valued at AUD 176,252,970.51. This split aligns with market demand for both new and used vehicle financing through Volkswagen Financial Services Australia's platform.

Financing products include chattel mortgages and consumer loans. Chattel mortgages account for 13,839 contracts (68.90%) with AUD 587,194,465.47 in discounted receivables, while consumer loans comprise 6,247 contracts (31.10%) totaling AUD 162,821,346.58. This product mix offers borrowers flexibility between secured and unsecured automotive financing options. The total discounted receivables balance as of 30 June 2026 is AUD 750,015,812.05.

Net Salvage Losses and Credit Enhancement Status

As of 30 June 2026, cumulative net salvage losses in the portfolio amount to AUD 3,397,551.06, equivalent to 0.453% of discounted receivables at the original cut-off date of 30 September 2024. The June 2026 monthly period recorded net salvage losses of AUD 84,160.05, reflecting ongoing recovery shortfalls on defaulted contracts where vehicle sale proceeds fall short of loan balances.

The securitisation features multiple credit enhancement thresholds to protect noteholders. Level 1a (0.40% cumulative net loss threshold before or during October 2025) and Level 1b (0.80% threshold from November 2025 to October 2026) were not triggered. Level 1c (1.20% threshold post-October 2026) and Level 2 (1.80% threshold) remain untriggered as well. These results indicate credit quality remains within expected parameters and net losses are contained relative to structural protections.

Amortisation Profile and Clean-Up Call Timeline

The securitisation amortises receivables systematically over its life. The clean-up call, allowing Volkswagen Financial Services Australia to repurchase remaining receivables, is anticipated in May 2028 when outstanding balances fall below 10% of the original cut-off balance and payment obligations can be met per transaction terms.

The final maturity date is 21 February 2033, providing a defined endpoint approximately four years after the expected clean-up call. Monthly payments occur on the 21st, with the next payment due on 21 August 2026. Monthly reporting is published on the 16th, ensuring transparency on portfolio performance and compliance.

Servicing and Operational Management of Receivables

Volkswagen Financial Services Australia Pty Limited acts as originator and servicer, managing the 20,086 contracts from its office at Level 1, 24 Muir Road, Chullora NSW 2190. Correspondence is directed to Locked Bag 4002, Chullora NSW 2190. The servicer handles collections, customer service, payment processing, and arrears management. Contact details include phone +61 2 9751 6257, fax +61 2 9695 6399, and email [email protected].

Servicing responsibilities cover full contract lifecycle management including monthly payment processing, prepayment handling, hardship extensions, and recovery on defaulted contracts. Servicer performance is monitored by noteholders and rating agencies to ensure compliance and support consistent cash flow distributions.

Interest Accrual, Payment Distribution, and Hedging Arrangements

Interest on securitisation notes accrues monthly, with the current accrual period from 22 June 2026 to 21 July 2026 (29 days). Payments align with this period, distributing principal and interest to noteholders according to a priority waterfall that covers servicer costs, reserves, and noteholder classes.

Mizuho Bank, Ltd. provides interest rate swap arrangements from its Sydney office at Level 29, 60 Martin Place, to hedge floating-rate receivables against fixed-rate note obligations. Moody's assigns a short-term rating of A-1+ and a long-term rating of Aa2 with a stable outlook (STA) to the transaction, reflecting strong credit quality and swap counterparty reliability.

Receivables Replacement and Contract Eligibility Protocols

The transaction permits repurchase or replacement of receivables if contracts are found non-eligible post cut-off date or if enforceability issues arise. Reloaded or flat-cancelled contracts may also be replaced to maintain portfolio integrity and credit metrics. No changes to transaction parties were reported in the current period, confirming stability since the 25 October 2024 inception.

Regulatory and Rating Agency Monitoring

Moody's and S&P Global Ratings Australia conduct ongoing surveillance from their Sydney and Melbourne offices, respectively. They review monthly performance data to assess credit enhancement adequacy, structural compliance, and servicer performance. Moody's contact is [email protected]; S&P's is [email protected].

Current Moody's ratings are A-1+ (short-term) and Aa2 stable (long-term), indicating expected credit stability barring adverse portfolio developments. This rating framework provides investors with detailed credit risk insights across note maturities.

Borrower Hardship Extensions and Support Measures

Volkswagen Financial Services Australia may grant hardship extensions to borrowers facing temporary financial difficulties, modifying payment schedules or extending terms to avoid defaults and repossessions. These measures are governed by transaction parameters and reported monthly to noteholders, supporting credit quality by mitigating defaults and salvage losses.

Transaction History and Future Milestones

Driver Australia Ten was established with an issue date of 25 October 2024 and an initial cut-off date of 30 September 2024. The current report covers Period 21, reflecting nine months of operational history. The clean-up call is projected for May 2028, with final maturity on 21 February 2033, allowing for orderly portfolio wind-down over approximately eight and a half years.

This extended timeline provides resilience against portfolio fluctuations while ensuring investor protections through structured amortisation and credit enhancements.