KPI and Activity condition(PDCA)

Process for devising KPI Strategic Focus

After we drew up the Global Vision for Those We Serve, which describes how we embody the Toyota Global Vision, we commenced full-scale KPI (Key Performance Indicators) development. Based on the KPI Strategic Focus, which were newly-established after a process extending over two years, our CSR activities have been further enhanced from FY2012 involving the efforts of both external experts and Toyota executives.

Communication with Stakeholders


KPI

In order to realize the Toyota Global Vision, Toyota has set goals and established the Toyota Visionary Management Indices as key performance indicators (KPI) to assess the progress being made towards achieving those goals. Each responsible division is conducting self-evaluations and implementing PDCA to strengthen CSR activities. The major activities undertaken and results of self-evaluations are listed below.

Results of Implementation of the Toyota Global Vision in FY2012

Global Vision for Those We Serve   Major Activities in FY2012 and Results Major KPIs   Major Activities in FY2013
Goals Self-
evaluation
Result
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1. Provide safe and reliable vehicles that inspire enthusiasm at affordable prices.

Achieve the highest level of customer appraisal in terms of safety, quality and moving people

(Safety)

  • Developed the Pre-collision System with pedestrian detection and rear-end collision avoidance functions and the Intelligent Clearance Sonar that helps prevent accidents in parking lots (high incidence among elderly drivers), and launched vehicles equipped with these technologies
  • Developed and deployed technologies aiming to realize top levels of assessment standards in respective countries

(Safety)

  • Developed new function of driving support systems to prevail - OP fitting rate: 40%
  • 2 newly-launched models - RAV4 and Auris acquired Euro NCAP 5-star in March 2013
  • Corolla acquired Japan NCAP 5-star
  • U.S. IIHS gave 4 Toyota models low evaluation in some tests

◆Based on the TNGA plan, promote planning and development of "Always Better Cars" that brings a smile to every customer

(Safety)

  • Release new products which meet customer needs
  • Develop and promote products pursuing the highest level of real-world safety and in assessment in each country

(Quality)

  • Developed the Pre-collision System with pedestrian detection and rear-end collision avoidance functions and the Intelligent Clearance Sonar that helps prevent accidents in parking lots (high incidence among elderly drivers), and launched vehicles equipped with these technologies

(Quality)

  • J.D. Power (US) Initial Quality Study (IQS) ranking No. 1 in 5 segments

(Quality)

Strengthen activities to improve customer satisfaction with both products and sales/service

(Smiles, moving people and product lineup)

  • Launched a compact hatchback fitted with an electrically-operated sliding door that has a wide opening and is easy to use. Also features a side-access model that allows a person in a dedicated wheelchair to ride in the passenger seat

(Smiles, moving people and product lineup)

Good Design Award

  • Porte/Spade (Best 100), Aqua

(Smiles, moving people and product lineup)

  • Assisted-mobility vehicles:Promote improvement of assisted-mobility vehicles that brings a person in a dedicated wheelchair directly into the front passenger seat area

2. Listen sincerely to customer voices and continue to reinvent ourselves through sufficient information disclosure and dialogue.

Listen sincerely to customer feedback and take action from the customer's perspective

(Customer feedback)

  • Implemented customer feedback exhibitions and other internal educational activities aimed at permeating awareness of the Customer First principle throughout the company

(Responses to customer inquiries)

  • Call response rate at customer call centers: 94%

(Customer feedback)

  • Continue to implement internal educational activities aimed at permeating awareness of the Customer First principle throughout the company

(Responses to customer inquiries)

  • Promote responses to customer inquiries without keeping them waiting on hold

(Responses to customer inquiries)

  • Continue to promote responses to customer inquiries without keeping them waiting on hold
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3. Contribute for economic development of local co

(1) Supplier:
Promote local purchasing globally

(Suppliers)

  • Revised the Toyota Supplier CSR Guidelines and asked suppliers in Japan to adopt them
  • Announced further promotion of local purchasing in Indonesia (Toyota, Toyota Auto Body, Denso, Aisin, Toyota Tsusho, Daihatsu)

(Supplier)

  • No of parts suppliers: 2,686
  • incl. overseas total: 2,242

(Supplier)

  • Monitor global suppliers based on the Toyota Supplier CSR Guidelines and monitoring
  • Conduct a global survey on the conflict mineral

(2) Dealers/distributors:
Establish sales networks together to be rewarded with a smile

(Dealers/distributors)

  • Provided support to activities conducted by the Toyota National Dealers’ Advisory Council such as self-auditing using checklists, etc.
  • Held the Aqua Social FES in cooperation with regional NGOs and other organizations

(Dealers/distributors) No. of dealers and distributors

  • Aqua Social FES won Good Design Sustainable Design Award

(Dealers/distributors)

  • Promote activities in cooperation with dealers/distributors
  • "Traffic safety," "eco-drive," and "harmony with the nature"

4. Reduce environmental burdens through lifecycle by developing various eco-friendly vehicles and technologies and making them prevail.

(1) Eco-cars:
Aim to improve global average fuel efficiency by 25% by FY2015 (compared with FY2005)

(Eco-cars)

  • Annual global sales of hybrid vehicles top one million units
  • Developed a new hybrid system exclusively for rear-wheel-drive vehicles that realizes both class leading levels of environmental performance and high system output

(Eco-cars)
Average fuel efficiency (Japan, US, Europe)
Sales of hybrid vehicles 1,219 thousand vehicles (FY2012)

(Eco-cars)

  • Further enhance performance and line-up of hybrid vehicles as the hybrid technology is a key of our technology
  • Further improve fuel efficiency of conventional engine vehicles

(2) Environmental impact:
Aim to reduce CO2 emissions from business activities by 29% by FY2012 (compared to FY2001; per unit produced globally)

(Environmental impact)

  • Promoted integrated energy management initiatives taking both energy consumption and supply into consideration (energy-saving production technologies/development and introduction of energy-efficient equipment and installation of high efficiency in-house power generation equipment Toyota Motor Corporation (TMC)

(Environmental impact)
Global CO2 emissions from energy sources
reduced by 34% (compared with FY2001, per unit produced)

(Environmental impact)

  • -Aim to achieve FY2013 targets to implement the 5th Toyota Environmental Action Plan (e.g.: Total CO2 emissions, 1,290 thousand tons/year or less (TMC))

5. Be aware of responsibilities of developing and producing vehicles and contribute for realization of new mobility society free from traffic accidents and congestion.

Engage in advanced/cutting-edge research for a new mobility society, and promote the practical application and popularization thereof

(Future mobility society)

  • Verification testing of the urban transport support system Ha:mo, which seeks to provide people- and community-friendly mobility, begun in Toyota City
  • Announced the start of verification tests on an ultra-compact urban EV car-sharing project in the city of Grenoble, where strict environmental regulations apply, with the goal of reducing emissions of greenhouse gases and air pollutants
  • 224 people participated in the Toyota City verification testing

(Future mobility society)

  • Continue the verification tests in Toyota City to add recommendation function to Ha:mo NAVI - systems to provide information and enrich services of Ha:mo RIDE - car sharing system using ultra compact electric vehicles
  • Utilizing findings in the verification tests in Toyota City, promote development of sharing equipment and systems toward verification tests to begin at the end of 2014 in the city of Grenoble

(Accidents/traffic congestion)

  • Built a new test site, the ITS Proving Ground, inside the Higashi-Fuji Technical Center to accelerate the development of vehicle-infrastructure cooperative systems that support safe driving practices with the aim of helping prevent accidents at intersections
  • Expanded global operations, including establishing a joint venture in China for map delivery services and increasing telematics services for smartphones in Thailand
  • No. of shipped vehicles fitted with VICS (cumulative): 10,300 thousand vehicles
  • No. of vehicles registered as G-BOOK users (Japan, cumulative): 3,200 thousand

(Accidents/traffic congestion)

  • Promote early practical application of vehicle-infrastructure cooperative systems by appealing to people and improving their understanding in ITS World Congress Tokyo 2013 etc.
  • Promote new information services that improve traffic flow and disaster-prevention countermeasures in Japan incl. big data traffic information service and smart G-BOOK for smartphones

6. As a good corporate citizen, respect the culture and customers of every nation and contribute to social development.

Continue stable social contribution activities at an appropriate level as a good corporate citizen

(Support for Tohoku Region revitalization)

  • Commenced operation of the F-Grid with the aim of contributing to building a community that is safe and secure through the combined efforts of the region and the industrial park and the revitalization of local industries and regions
  • Implemented the Kokoro Hakobu Project—Toyota’s continuous and long-term recovery and revitalization support activities with "kokoro (heart)"
  • Total expenses for social contribution activities
    (compared with pre-tax profits, net revenues)

(Support for revitalization)

  • Grasp actual needs in disaster-affected areas and implement continuous recovery support and voluntary activities
  • Kokoro Hakobu Project received the 2012
    Mècènat Award for Supporting Hearts

(Social contribution)

  • Continued implementation of activities that focus on the environment, traffic safety, education, and society and culture (including distribution of traffic safety picture books to Taiwan and support)
  • Voluntary program participant satisfaction

(Social contribution)

  • Enhance and continue activities that focus on the environment, traffic safety, education, and society and culture
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7. Create working environments for various employees to work proudly and with loyalty and confidence in fulfilling their potential, which realize their self-growth.

Increase the ratio of employees who feel that their jobs are rewarding

(Development of human resources)

  • Continued participation in the WorldSkills Competition as part of initiatives to develop human resources who will support Toyota's monozukuri (manufacturing) (Toyota employees participated in 10 events at the national level competition and won 7 gold medals)
  • Employees who feel pride and loyalty (%)
     79%

(Development of human resources)

  • Create a new Study Dispatch Program for young employees to overseas to train them early and improve their ability further

(Employment and work practices)

  • Expanded opportunities for employees by establishing the Regional Employees System under which employees who are highly skilled and also well acquainted with a particular region continue working in that region
  • Employees who feel their jobs are rewarding (%)
     79%

(Employment and work practices)

  • Improve working environment for elderly employees and promote support for designed asset building to realize favorable lifestyle and work practices after retirement

(Safety and health)

  • Implemented activities to enhance employee awareness of safety, establish occupational safety and health management systems (OSHMS), and take proactive preventive measures
  • Frequency rate of lost workday cases (%): 0.07

(Safety and health)

  • Enhance a culture that promotes interactive development of safety and health

8. Ensure sustainable growth by fostering the virtuous circle, Always better cars > Enriching lives of communities > Stable base of business.

Establish a stable base of business (earnings base, governance, Business continuity Management (BCM), etc.)

(Earnings)

  • Consolidated operating income grew to 1,320.8 billion yen through groupwide cost reduction efforts and increased vehicle sales

(Earnings)

  • Operating income ratio (%): 6.0%

(Earnings)

  • Improve earnings structure toward sustainable growth
  • Pay dividends stably and continuously targeting dividend ratio, 30%

(Governance)

  • Created systems to include diversity in management and reflect external opinions by appointing a female outside Audit and Supervisory Board Member (June 2012) and three Outside Directors incl. a director who is not Japanese (June 2013)
  • Formulated an executive message on anti-corruption and adopted Anti-Bribery Guidelines

(Governance)

  • Reestablish company-wide executive meetings incl. Board of Directors Meeting
  • Enhance anti-corruption systems and proactively prevent corruption

(BCM)

  • Promoted the creation of a framework for business continuity management that is unique to Toyota and aims for recovery from the perspective of customers and local communities

(CSR evaluation)

  • FTSE4 Good Index: Continuously listed

(BCM)

  • Further strengthen crisis-management systems considering a large-scale earthquake (drills, education, activities to raise awareness)

○:Goal achieved △:goal partially achieved ×:Goal not achieved

Global Vision for Those We Serve

Defining the Ideal Form of the Company for Each Stakeholder and the Outline for the Future It Should Take in Order to Realize the Global Vision

The Toyota Global Vision defines the ideal form of the company and a path it should take. The "Global Vision for Those We Serve" is a written statement of what kind of company Toyota wants to be for each stakeholder in an effort to realize it. Stakeholders supported the company when we faced a sequence of challenges including the global financial crisis and quality issues as well as the Great East Japan Earthquake disaster that occurred in March this year. In order to appreciate and recompense them for their support, and also continue to grow together with such supporters, Toyota will constantly reform itself to achieve higher goals.


We aim to exceed expectations and be rewarded with a smile. We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way — as we set out in the Global Vision. That means, we will sincerely listen to the voices of every stakeholder — customers, employees, business partners, shareholders, and global society/local communities, and respond to those expectations. The expression "Global Vision for Those We Serve" is our way of organizing and explaining the thoughts constituting the Global Vision in relation to stakeholders. It is Toyota's resolve to meet challenging goals step by step to see the smiles and happiness of everyone including customers and beyond.

Customers Global Society/Local Communities Shareholders Employees Business Partners