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Toyota Visionary Management

Always Better Cars Sustainable Growth through Always Better Cars that Exceed Customer Expectations

People's expectations of cars are constantly changing. People are beginning to experience the pleasure of ownership in emerging countries-which are experiencing rapid economic growth-and everyone has high expectations for greater driving enjoyment and environmental performance. In an era of sudden and drastic change, we need the ability to see what is already apparent, as well as to foresee the next advancement. It is the customer who drives such change. By remaining firmly focused on customers and continuing to listen to them, we can adapt to change and make sustainable growth possible. Continuing to make "always better cars" that earn smiles from our customers is the only way forward to a successful future. Based on this conviction, Toyota will carry on working to meet the diverse needs of different customers and make "always better cars" that can satisfy customers. To enable us to continue meeting this goal, we are working to preserve and strengthen Japan's monozukuri (manufacturing) tradition.

Always Better Cars 01 Aqua - from Tohoku to the World

Always Better Cars 01 Aqua - from Tohoku to the World

Always Better Cars 01 Aqua - from Tohoku to the World

Always Better Cars 01 Aqua - from Tohoku to the World

1. "Aqua" - Boosting the Popularity of Hybrid Cars and Promoting the Development of Tohoku Aqua - the Ideal Compact Car for 2020

2. Seeking to Take Root in Tohoku while Continuing Monozukuri (manufacturing) Activities at One with the Region Tohoku's production sites make use of the region's advantages-such as the local support, outstanding local personnel, and a wide variety of fundamental technologies. The new Corolla launched in May 2012, is also produced in Tohoku, at the Miyagi Plant, boosting the local procurement rate to 40% and giving impetus to the car production industry in the region.

3. Contributing to Local Development by Nurturing Talent Toyota East Japan Technical Skills Academy of which founding concept is to be a school that will cultivate future strength based on three pillars: "human resource development," "environmental and energy management" and "coordination with local communities"

"Made by TOYOTA" for Customers around the World

"Made by TOYOTA" for Customers around the World

"Made by TOYOTA" for Customers around the World

"Made by TOYOTA" for Customers around the World

1. Development of Products that Meet the Needs of Countries and Regions around the World Dedicated development of products that best matches emerging markets, based on the "IMV" three models and five body types Simultaneously providing appealing products at affordable prices around the world *Innovative International Multipurpose Vehicle (IMV):Toyota's global strategy models, so named with the aim of creating multipurpose vehicles that can meet the various needs of customers around the world.

2. The "Local BEST" Meets
the Needs of Each Region's Usage Environment

3. Contributing to the Development of the Automobile Industry in All Countries and Regions through Local Purchasing and Production Cars are sold in 170 countries and produced by 12 overseas affiliates in emerging markets.

4. Detailed Service apabilities in Each Region to Customers Provide Peace of Mind Our network of dealerships fundamentally in charge of the three areas of new cars, parts, and after-sales service

Always Better Cars 03 Toyota New Global Architecture

Always Better Cars 03 Toyota New Global Architecture

Always Better Cars 03 Toyota New Global Architecture

Always Better Cars 03 Toyota New Global Architecture

1. Toyota New Global Architecture (TNGA): A New Approach to Car Manufacturing from Toyota It delivers improved performance in the basic performance of driving, turning, and stopping, and enables the standardizing of parts and major components across different models to reflect the preferences of local markets.

2. Innovations in Product Engineering Enable the Making Better Cars

3. Global Rollout of Innovative Technology Established in Japan

Three Key Measures for Providing the World's Most Attractive Compact Cars
Toyota East Japan Technical Skills Academy (artist's rendition)
Global Supply System Part Purchasing Rate by Source (example: Thailand)
Current R&D Initiatives
Orientation of Production Technology for Making Better Cars Direction of Technology Innovation
Key Phrases for Technological Innovation

Toyota Visionary Management

Enriching Lives of Communities Contributing to the creation of next-generation communities, pioneering the future of the automotive industry, and realizing new mobility societies and affluent local communities

A variety of problems exist in our rapidly progressing modern society. These include responses to energy problems and global warming, the preservation of biodiversity, food and water shortages, poverty, discrimination, unemployment, a falling birthrate and the aging of societysome of which are global issues, while others differ by region. Corporations such as Toyota, which are rooted in each local communities, must work to resolve these issues. To achieve this end, our Global Vision declares that we will contribute to enriching lives of communities as well as the making of "always better cars." Toyota proposes amenable, low-carbon mobility in addition to new lifestyles involving, for example, the early practical application of personal robots that provide support for medical care and nursing. We also contribute to creating comfortable, livable communities by developing and promoting next-generation, eco-friendly cars including hybrid vehicles (HVs), as well as safe mobility through interaction with transport infrastructure. We will proceed forward together with members of each region to accomplish our goal of enriching lives of communities.

Enriching Lives of Communities 01 Prius PHV The Most Promising Next-generation Eco-Vehicles

Enriching Lives of Communities 01 Prius PHV The Most Promising Next-generation Eco-Vehicles

Enriching Lives of Communities 01 Prius PHV The Most Promising Next-generation Eco-Vehicles

Enriching Lives of Communities 01 Prius PHV The Most Promising Next-generation Eco-Vehicles

1. PHV Combining the Advantages of Both Hybrid Vehicles (HV) and Electric Vehicles (EV) Considering the finite nature of petroleum reserves, energy sources must be diversified (electric, hydrogen, and so on). Toyota developed the Prius Plug-in Hybrid Vehicle (PHV), one of the most promising alternatives for next-generation eco-vehicles.

2. Contributions through Cars Aimed at a Low-carbon Society eco-friendly cars is the key to their contributing to society, Since sales of the mass-produced Prius HV began in 1997, cumulative sales of HVs have exceeded 4 million units, with a CO2 emissions reduction of approximately 26 million tons.

3. A Next-generation Smart Community Linking Cars, Homes and People

Enriching Lives of Communities 02 Contributing to New Mobility Societies

Enriching Lives of Communities 02 Contributing to New Mobility Societies

Enriching Lives of Communities 02 Contributing to New Mobility Societies

1. Contributing to the Realization of a Low-carbon Society

2. Providing safe mobility through interaction with transport infrastructure

3. A New Lifestyle Combining cutting-edge technologies from various fields with the robotic, automotive, and IT technologies

Enriching Lives of Communities 03 Contributing to Communities

Enriching Lives of Communities 03 Contributing to Communities

Enriching Lives of Communities 03 Contributing to Communities

Enriching Lives of Communities 03 Contributing to Communities

Enriching Lives of Communities 03 Contributing to Communities

1. Environment Cumulative total of 100,000 visitors to the Forest of Toyota "Toyomori Institute of Sustainable Living" - a human resource development project carried out in cooperation with Toyota City and an NPO

2. Traffic Safety Toyota Spring and Autumn Traffic Safety Campaigns Toyota distributed a cumulative total of 126 million copies of traffic safety picture books in cooperation with the dealers Safe-driving Programs and Traffic Safety Classes Held at Toyota Safety Education Center "mobilitas"

3. Education Providing Emotional Care to Children through "Children Meet Artists" "Minami-sanrikucho Future in a Song" Project

4. Society and Culture Toyota Community Concerts Celebrate 30th Anniversary Recovery aid concert by the Iwaki Symphony Orchestra

5. Overseas Initiatives Helping the St. Bernard Project Rebuild Homes Destroyed by Hurricane Katrina in the U.S. Providing Recovery Assistance following the Sichuan Earthquake The Toyota Study Assistance Fund for students affected by the disaster Volunteer activities to support efforts following the Thai flood damage

Cumulative HV sales Cumulative CO2 Reduction with 4.0 Million HVs (Toyota Estimate)
The Smart Grid Envisioned by Toyota
Linking Cars, Homes, and People - the New Future Envisioned by Toyota
Support system 1
Support system 2
Support system 3
Effects of Vehicle-Infrastructure Cooperative Systems that support safe driving
Assist robots that support patient independence, exercise, and nursing are currently being developed and tested

Stable Base of Business Achieving sustainable growth through the virtuous cycle-Making better cars and enriching lives of communities leads to a stable base of business Stable Base of Business Achieving sustainable growth through the virtuous cycle-Making better cars and enriching lives of communities leads to a stable base of business

In order to engage in monozukuri (manufacturing) that exceeds the expectations of customers, it is necessary to have a strong desire to sincerely listen to the opinions of people who support Toyota, as well continue to reinvent ourselves and fulfill challenging goals. Underlying this feeling are Toyota's values that have been passed down since its establishment-the Toyota Precepts, Toyota Guiding Principles, and Toyota Way. Each of Toyota's more than 300,000 employees around the world share these values while carrying out their individual business activities. The sharing of such global values is the foundation of making better cars, contributing to society through these cars, and consequently increasing the number of cars sold and profit. This leads to reinvestment in the making always better cars. Toyota's concept for its business activities is to accomplish sustainable growth through this virtuous cycle. We will work to create solid profitability that is able to respond to environmental changes and support this cycle through further, continual improvements. In order to engage in monozukuri (manufacturing) that exceeds the expectations of customers, it is necessary to have a strong desire to sincerely listen to the opinions of people who support Toyota, as well continue to reinvent ourselves and fulfill challenging goals. Underlying this feeling are Toyota's values that have been passed down since its establishment-the Toyota Precepts, Toyota Guiding Principles, and Toyota Way. Each of Toyota's more than 300,000 employees around the world share these values while carrying out their individual business activities. The sharing of such global values is the foundation of making better cars, contributing to society through these cars, and consequently increasing the number of cars sold and profit. This leads to reinvestment in the making always better cars. Toyota's concept for its business activities is to accomplish sustainable growth through this virtuous cycle. We will work to create solid profitability that is able to respond to environmental changes and support this cycle through further, continual improvements.

Stable Base of Business 01 Virtuous Cycle toward Sustainable Growth

Stable Base of Business 01 Virtuous Cycle toward Sustainable Growth

Stable Base of Business 01 Virtuous Cycle toward Sustainable Growth

1. Initiatives toward a "Stable Base of Business"

2. Developing Human Resources to Enhance Workplace Strengths Developing human resources to support the quality ideals that lie at the heart of the Toyota management philosophy The Toyota Way with "Continuous Improvement" and "Respect for People" as its pillars

3. Reinvesting in the Making of Always Better Cars by Accomplishing Solid Profitability Building a strong business base that can always achieve a consolidated operating income of approximately one trillion yen and a consolidated operating income ratio of 5%, even amid a harsh management environment with a yen/dollar exchange rate of ¥85 to the dollar and a unit sales volume of 7.5 million cars

Stable Base of Business
Solid Profitability

Creating the Future of Japan Together from Tohoku

Creating the Future of Japan Together from Tohoku

Creating the Future of Japan Together from Tohoku

Making Tohoku the third car manufacturing hub in Japan Establishment of Toyota Motor East Japan (July 2012) Build production infrastructure for compact cars Develop a profitable management structure for compact cars Strengthen compact car production capabilities Monozukuri at one with the region Establish a local-procurement-promotion center in Tohoku (January 2012) Strengthen the Tohoku technical center Medium- to long-term human resources development

Kokoro Hakobu Project
"All Toyota" revitalization initiatives Special open classes of the Toyota First Experience Program were held for elementary students in the affected areas External power-supply units fitted to cars in public use (Prius) free of charge Special Tohoku performance of the Toyota Master Players, Wien (all ticket sales proceeds donated)

F-Grid Concept * "F" stands for factory Create new-style "smart communities" with the leading plant in the town playing a central role