Message from the President

True Competitiveness for Sustainable Growth

Firstly, I would like to express my sincere gratitude for your continued support and understanding. Since 2009, Toyota has faced a series of prolonged crises. Looking back, these crises allowed us to gain invaluable experience and taught us many truths that would have remained hidden if conditions had been more settled.

Particularly during the global financial crisis, when we fell into the red, we learned that a traditionally broad based auto industry, while positioned to enjoy the fruits of rapid growth, may also be vulnerable to abrupt decline that could bring anxiety to a substantial number of people. We are now more attuned to the importance of sustainable growth and have learned the critical lesson that an increase in production does not necessarily equate to growth.

The last four years have also been an opportunity to reconnect with our roots and return to the things that we have always held dear. Toyota's roots lie in its founding principle of contributing to society by making automobiles. Put simply, our goal should ever be to make always better cars.

The products that are only just beginning to roll off the lines represent the first results of our groupwide emphasis on making always better cars. At the same time, we are making steady progress in reforming production technology and making new cars based on the Toyota New Global Architecture (TNGA).

There is a growing sense that the business model set forth in the Toyota Global Vision is steadily becoming more robust. It is important, however, to remember that we have merely reached the next starting line and that every member of the Toyota Group needs to focus on ensuring true competitiveness—competitiveness that will support sustainable growth regardless of external factors. Ultimately, true competitiveness cannot be measured simply in terms of profit and loss, but rather represents a challenge that must be met on a groupwide basis. Our efforts to meet this challenge are exemplified by our adoption of TNGA and the reorganization of our business units.

Toyota celebrated its 75th anniversary in November 2012. In establishing the Company all those years ago, Kiichiro Toyoda envisioned a strong Japanese auto industry with its roots in Japanese manufacturing traditions. Today, we are entering the final quarter of the auto industry's first century. Over the next 25 years, we must set our gaze even further, and gain some insight into this industry's second century. We must then use this insight to inform our own long-term business structure. We must always bear in mind that the sustainable growth we are striving to achieve will create a better society for our children and grandchildren.

"Rewarded with a smile by exceeding your expectations," all 330,000 of us at Toyota around the world work together as one to make always better cars and to contribute to society. We will examine social issues in collaboration with the people who live in those communities and work to carry out what Toyota can do and what Toyota is expected to do to help achieve sustainable growth of society and the planet. We kindly request the continued support and understanding of all our stakeholders.

August 2013

Akio Toyoda

Toyota Motor Corporation