toyota motor corporation september 6, · pdf fileyaris hilux countries and regions in which...

Toyota Motor CorporationSeptember 6, 2002


Fujio ChoPresident

Fujio ChoPresident

1

Toyota’s PerformanceToyota’s Performance

2

* Assigning fiscal 1993 as factor of 100

Operating IncomeOperating Income

x5x5x5

10 Years of Dynamic Growth 10 Years of Dynamic Growth IToyota’s Performance

Operating income

FY1993FY1993 FY1996FY1996 FY1999FY1999 FY2002FY2002

3

Cumulative net incomeCumulative net income

* Cumulative net income reflects consolidated figures calculated in accordance with Japan GAAP.

(Trillions of yen) (Yen/dollar)

10 Years of Stability10 Years of StabilityIToyota’s Performance

Exchange rate (yen/dollar)Exchange rate (yen/dollar)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

4

Operating IncomeNet Sales, Total Assets, and Number of Employees

Operating IncomeNet Sales, Total Assets, and Number of Employees

x5x5x5

Improved Management Efficiency Improved Management Efficiency IToyota’s Performance

Operating incomeOperating income

Net salesNet sales

Total assetsTotal assets

Number of employeesNumber of employees

FY1993 FY1996 FY1999 FY2002

* Assigning fiscal 1993 as factor of 100

5

Global Unit Sales in 2001Global Unit Sales in 2001Global Unit Sales in 2001(Millions of units)(Millions of units)* Including Daihatsu and Hino* Including Daihatsu and Hino

5.95.9

Japan（（（（33%））））

Japan（（（（33%））））

North America（（（（36%））））

North America（（（（36%））））

Europe, Asiaand Others

（（（（31%））））

Europe, Asiaand Others

（（（（31%））））

IToyota’s Performance

OverseasOverseas

DomesticDomestic

Sales in Approximately 160 Countries and Regions Around the WorldSales in Approximately 160 Countries and Regions Around the World2001 Global Sales2001 Global Sales

Proportion of 2001 Unit Sales by RegionProportion of 2001 Unit Sales by RegionProportion of 2001 Unit Sales by Region

3.63.6

2.32.3

Global Share

10%Global Share

10%

6

Toyota（（（（42.2%））））

Toyota（（（（42.2%））））

Nissan（（（（18.0%））））

Nissan（（（（18.0%））））

Honda（（（（14.0%））））

Honda（（（（14.0%））））

Others（（（（25.8%））））

Others（（（（25.8%））））

* Figures for 1998 and thereafter include Daihatsu;

Figures for 2001 and thereafter include Hino

I2001 Domestic Sales2001 Domestic Sales

Japan’s Market Leader (more than 40% market share)Basis of Global Competitiveness : Quality, Cost

Japan’s Market Leader (more than 40% market share)Basis of Global Competitiveness : Quality, Cost

2001 Market Share (excluding minivehicles)2001 Market Share (excluding 2001 Market Share (excluding minivehiclesminivehicles))

1998 1999 2000 2001 2002/1-7

Toyota’s market share (excluding minivehicles)Toyota’s market share (excluding minivehicles)

Toyota’s market share (including minivehicles)Toyota’s market share (including minivehicles)

36.5％％％％36.5％％％％ 37.3％％％％37.3％％％％38.9％％％％38.9％％％％ 38.7％％％％38.7％％％％ 38.2％％％％38.2％％％％

39.4％％％％39.4％％％％

41.7％％％％41.7％％％％43.3％％％％43.3％％％％

42.2％％％％42.2％％％％ 42.4％％％％42.4％％％％

Toyota’s Performance

7

15%

Early in the 2010s

Early in the 2010s

10%

20012001

2010 Global Vision15% Global Market Share2010 Global Vision15% Global Market Share

Our Vision for the FutureOur Vision for the FutureIToyota’s Performance

8

Brand StrategyImproving Brand Value

Brand StrategyImproving Brand Value

9

Luxury vehiclesLuxury vehicles

Lexus LS430

Lexus SC430Lexus SC430

Small passenger vehicles

Small passenger vehicles

Corolla

Camry

Large SUVsLarge SUVs

Crossover vehiclesCrossover vehicles

Highlander

Lexus RX300

Youth-oriented vehiclesYouth-oriented vehicles

SCIONSCION

bbX

Tundra

Sequoia

IIImproving Brand Value

North American Strategy : Growth of Product Line-upNorth American Strategy : Growth of Product Line-up

Sales Target 2 million units(2003-2004 Planned)

Sales Target 2 million units(2003-2004 Planned)

Ranked first in 9 of 16 categories in the 2002 IQS survey

by J.D. Power & Associates

Ranked first in 9 of 16 categories in the 2002 IQS survey

by J.D. Power & Associates

10

Yaris: Unit sales2001: 210,000 vehiclesFirst half of 2002: 120,000 vehicles

Yaris: Unit sales2001: 210,000 vehiclesFirst half of 2002: 120,000 vehicles CorollaCorolla

IIEuropean Strategy : Growth of Product Line-upEuropean Strategy : Growth of Product Line-up

New Avensis (beginning of 2003)

New Avensis (beginning of 2003)

Diesel EnginesDiesel Engines

D-CAT (2003 launch)

D-CAT (2003 launch)

Improving Brand Value

Sales Target 800 thousand units +αααα

(2005 Planned)

Sales Target 800 thousand units +αααα

(2005 Planned)

Sales to Other Companies (from 2003)

11

IIGlobal CarsGlobal Cars

Corolla

Camry

Yaris

Hilux

Countries and regions in

which vehicle ismarketed

140

100

2001 production volume

(in thousands)

871

527

373

302


20021 million

units(plan)

20021 million

units(plan)140

140

(approximate numbers)

12

CARTCART

F1F1

IIMotorsportsMotorsports

Current leader in manufacturer’s championship

Competed in races with cars developed completely in-house (from 2002)


13

Strategy for Optimal Global ProductionStrategy for Optimal Global ProductionProducing Where Demand ExistsProducing Where Demand Exists

14

Production and Marketing Where Demand Exists (24 overseas countries and regions, 40 companies worldwide)

Production and Marketing Where Demand Exists (24 overseas countries and regions, 40 companies worldwide)

IIIProducing Where Demand Exists

Optimal Global ProductionOptimal Global Production

North America: 8 companies Europe:

4 companies

Asia: 11 companies

(outside Japan)

China: 6 companies

Central and South America:

4 companiesOceania:

1 company

Middle East: 4 companies

Africa: 2 companies

15

Production volume (Thousands of units)

(yen/dollar)


Expansion of Local Production in North AmericaExpansion of Local Production in North America

2003 production capacity

From 1.25 million units to 1.45 million units

2003 production capacity

From 1.25 million units to 1.45 million units

Exchange rate (yen/dollar)

1990 1992 1994 1996 1998 2000 2002

6565

175175149149 164164

205205

265265

Operating Income in North America (billions of yen)

Operating Income in North America (billions of yen)

Expansion of Local Production Stable GrowthExpansion of Local Production Stable Growth

(First half of 2002)(First half of 2002)

16

Production volume (Thousands of units)

Proportion (%)

* Proportion of local production = Local production volume / Local unit sales

(First half of 2002)(First half of 2002)

IIIExpansion of Local Production in Europe (1)Expansion of Local Production in Europe (1)

2003 production capacity500,000 units

(including Turkey)

2003 production capacity500,000 units

(including Turkey)

U.K. (TMUK):France (TMMF):

Poland (TMMP):Turkey (TMMT):

U.K. (TMUK):France (TMMF):

Poland (TMMP):Turkey (TMMT):

Local production volumeLocal production volume

Proportion of local production*Proportion of local production*

Producing Where Demand Exists

1996 1998 2000 2001 2002

Expansion of Local Production and Procurement Cost ReductionsExpansion of Local Production and Procurement Cost Reductions

Common-rail diesel assembly (2003)Increased capacity (150,000 vehicles 180,000 vehicles, 2003)Common rail diesel assembly (2003)Manual transmission production commenced (April 2002)Corolla production, exports to Europe (February 2002)

17

III

Joint Production of New Concept Vehicle with PSA Peugeot-Citroën

Joint Production of New Concept Vehicle with PSA Peugeot-Citroën

Establishment of plant in Czech Rep. (TPCA) (Production scheduled to begin in 2005)

100,000 Toyota branded vehicles (planned)

Expansion of Polish plant (TMMP) in 2004Supply engines and transmissions to TPCA

Producing Where Demand Exists

Expansion of Local Production in Europe (2)Expansion of Local Production in Europe (2)Planned to Introduce Small Entry-Level Passenger VehiclePlanned to Introduce Small Entry-Level Passenger Vehicle

18

JapanJapanChinaChina

ThailandThailand

IndiaIndia

PakistanPakistan

IndonesiaIndonesia

PhilippinesPhilippines

TaiwanTaiwan

MalaysiaMalaysia

VietnamVietnam

　　　　Singapore　　　　Singapore


Expansion of Production Network in AsiaExpansion of Production Network in Asia

19


Major Leap Forward in Toyota’s China OperationsMajor Leap Forward in Toyota’s China Operations

Operations in China at presentOperations in China at presentTianjin:Tianjin:

Sichuan:Sichuan:Production of compact passenger vehicles (October 2002)Production of compact passenger vehicles (October 2002)

Production of the Coaster (December 2000)Production of the Coaster (December 2000)

Expansion by cooperative relationship with FAWExpansion by cooperative relationship with FAWMedium/large-class luxury sedans:Medium/large-class luxury sedans: Production of 50,000 units / year (2005)Production of 50,000 units / year (2005)

SUV:SUV: Production of 10,000 to 20,000 units / year (2003)Production of 10,000 to 20,000 units / year (2003)

Minivehicles:*Minivehicles:* Production of 100,000 units / year (2003)Production of 100,000 units / year (2003)

Total production and sales of 300,000 to 400,000 units / yearTotal production and sales of 300,000 to 400,000 units / yearBy around 2010By around 2010

*Sold under the Daihatsu brand*Sold under the Daihatsu brand

++

20

Technology StrategyTechnology StrategyStricter Regulations as a Business OpportunityStricter Regulations as a Business Opportunity

21

Toyota Group production volume (domestic and overseas)

Toyota Group production volume (domestic and overseas) Global production volumeGlobal production volume

1960 19901970 1980 2000

The Oil Crisis and Emission Controls Triggered GrowthThe Oil Crisis and Emission Controls Triggered Growth

Next-Generation Technological Competition as a Business Opportunity

Next-Generation Technological Competition as a Business Opportunity

IV

Oil CrisisOil Crisis

Emission ControlsEmission Controls

3.0 million units3.0 million units



Emission Controls (NOx) and FuelConsumption Regulations (CO2)Emission Controls (NOx) and FuelConsumption Regulations (CO2)

* Assuming a production volume of 1 car in 1960

38 times *38 times *

3.3 times *3.3 times *

HybridHybrid

FCHVFCHV

New Diesel

Catalyst (D-CAT)

New Diesel

Catalyst (D-CAT)

Stricter Regulations as a Business Opportunity

United States: LEV, ZEVEurope: 140g/kmJapan: Fuel economy guideline by 2010

Toyota’s OpportunityToyota’s Opportunity

22

YearYear

UnitsUnits

20012001

100,000 100,000

Gas turbine HV (1969)Gas turbine HV (1969)

50,00050,000

Increased Sales of Hybrid VehiclesIncreased Sales of Hybrid VehiclesIV

Total 100,000 vehiclesTotal 100,000 vehicles

300,000 units / year by around 2005

300,000 units / year by around 2005


Crown Mild HybridCrown Mild Hybrid

Estima Hybrid (4WD)Estima Hybrid (4WD)

PriusPrius

23

Fuel Consumption (km/l)*Fuel Consumption (km/l)**Measured by Japanese standard*Measured by Japanese standard

IVStricter Regulations as a Business Opportunity

Performance of Toyota PriusPerformance of Toyota Prius

30301010

1010

80-1

10 k

m/h（（（（Se

c ））））80

-110

km

/h（（（（Se

c ））））

2020

1.5L A/T1.5L A/T

55

2000 Prius2000 Prius

Mid

-ran

ge a

ccel

erat

ion

Mid

-ran

ge a

ccel

erat

ion

24

Toyota FCHV-4 (1)Toyota FCHV-4 (1)IV

Maximum speed 150km/h

250km

90kw

Pure hydrogen

Cruising range

Fuel cell output

Fuel


Independent In-house Development of Total System Including Fuel Cell Stacks Independent In-house Development of Total System Including Fuel Cell Stacks

25

Toyota FCHV-4 (2)Toyota FCHV-4 (2)IVStricter Regulations as a Business Opportunity

Independent In-house Development of Total System Including Fuel Cell StacksIndependent In-house Development of Total System Including Fuel Cell Stacks

Motor

Motor

Aircompressor

Aircompressor

Secondarybattery

Secondarybattery

High-pressure

hydrogen

storage tank

High-pressure

hydrogen

storage tank

MotorMotorTOYOTA FC StackTOYOTA FC Stack

Air compressorAir compressor

Powercontrol

unit

Powercontrol

unitPower control unitPower control unit

TOYOTAFC StackTOYOTAFC Stack

26

JapanJapan U.S.A.U.S.A.

Limited Marketing around the End of 2002Limited Marketing around the End of 2002

FCHV-4 Road TestsFCHV-4 Road TestsIVStricter Regulations as a Business Opportunity

27

Construction offuel cell vehicleConstruction offuel cell vehicle

Toyota’s fuel cellhybrid vehicle (FCHV)

Toyota’s fuel cellhybrid vehicle (FCHV)

Why is it Called the FCHV?Why is it Called the FCHV?IVStricter Regulations as a Business Opportunity

MotorMotor MotorMotor

TOYOTAFC StackTOYOTAFC StackFuel cell stackFuel cell stack

Aircompressor

Aircompressor

Aircompressor

Aircompressor

Secondarybattery

Secondarybattery

High-pressure

hydrogen

storage tank

High-pressure

hydrogen

storage tank

High-pressure

hydrogen

storage tank

High-pressure

hydrogen

storage tank

ＰｏｗｅｒＰｏｗｅｒＰｏｗｅｒＰｏｗｅｒcontrol unit

ＰｏｗｅｒＰｏｗｅｒＰｏｗｅｒＰｏｗｅｒcontrol unit

28


The Overall Fuel Efficiency of FCHVsThe Overall Fuel Efficiency of FCHVs

Gasoline engineGasoline engine

Gasoline HVGasoline HV

High-pressure hydrogenHigh-pressure hydrogen

FCVFCV

FCHVFCHV

FCHVFCHV

0 10 20 30 40

Overall Efficiency “Well-to-Wheel” (%)Overall Efficiency “Well-to-Wheel” (%)

14%

26%

22%

29%

42%

Non-hybrid controlled

Hybrid controlled

Further improvement in efficiencyFurther improvement in efficiency

Calculations by Toyota

29

Diesel DIDiesel DIDiesel DI VVT-iVVTVVT--iiLean BurnLean BurnLean Burn

EVEVEVCNGCNGCNG

IVToyota’s Environmental

Technology DevelopmentToyota’s Environmental

Technology Development

The Ultimate Eco-CarThe Ultimate Eco-Car

Hybrid TechnologyHybrid Technology

D-4DD--44


Alternative energy

Alternative energy

DieselengineDieselengine

Gasolineengine

Gasolineengine EV & FCVEV & FCV

THS-MTHSTHS--MM

FCHVFCHVFCHVTHS-CTHSTHS--CC

THSTHSTHS

(Crown)(Crown)

(Estima)(Estima)

(Prius)(Prius)

30


Strategy to Encourage Hybrid Popularizationand Reduce Costs

Strategy to Encourage Hybrid Popularizationand Reduce Costs

� Agreement of ten years or longer

� Toyota to supply hybrid components (transaxle, battery, inverter)

� Nissan to install hybrid system in vehicles for U.S. in 2006

� 100,000 units expected within five year of launch

� Ongoing discussions of joint development of components

Toyota-Nissan Tie Up

31

IVGlobal New Body LineGlobal New Body Line

Innovative Welding ProcessesInnovative Welding Processes

Highly flexibleHighly flexible

Investment reductionInvestment reduction

(1 line for 8 models, small-lot to mass production)(1 line for 8 models, small-lot to mass production)

New facilities: 50% less Model changes: 70% less (compared with former line)

New facilities: 50% less Model changes: 70% less (compared with former line)


32

IVV-Comm (1)V-Comm (1)

V-Comm (virtual trial manufacturing)Accelerates Production Preparation, Reduces Production Costs

V-Comm (virtual trial manufacturing)Accelerates Production Preparation, Reduces Production Costs


33

Exchange of images, sound

Exchange of signal

* TPS: Toyota Production System

Toyota HeadquartersToyota HeadquartersPolish Plant

(Transmission Plant)Polish Plant

(Transmission Plant)

French PlantFrench Plant

IVV-Comm (2)V-Comm (2)


Global Expansion of TPS * via Digital TechnologyGlobal Expansion of TPS * via Digital Technology

34

Innovation into the Future Innovation into the Future

35

VInnovation into the Future

Motorization on a Global ScaleMotorization on a Global Scale

Rapid expansion in Eastern/Central Europe,

Russia

Rapid expansion in Eastern/Central Europe,

Russia

Expansion of U.S. market

Increase in population

Expansion of U.S. market

Increase in population

True growth in the Asian market

True growth in the Asian market

36

Plant-Based Biodegradable Plastic (Bioplastic)Plant-Based Biodegradable Plastic (Bioplastic)


Recycling and a “Zero-Waste” SocietyRecycling and a “Zero-Waste” Society

Development of New Materials and Processing Technology

Development of New Materials and Processing Technology

Development of environmentally-friendly biodegradable plastic from biomass (manufacture of automotive parts from high-yield sweet potatoes)

Final technical evaluation and commercialization slated for immediate future

(Indonesia)

Development of environmentally-friendly biodegradable plastic from biomass (manufacture of automotive parts from high-yield sweet potatoes)

Final technical evaluation and commercialization slated for immediate future

(Indonesia)

37


Expansion of ITSExpansion of ITS

Car MultimediaG-BOOK(Automobile information network service)

Car MultimediaG-BOOK(Automobile information network service)

Automobiles are equipped with information terminals and transmission modules to enable real-time exchange of information

Plan to launch in October

Automobiles are equipped with information terminals and transmission modules to enable real-time exchange of information

Plan to launch in October

WiLL VC ConceptWiLL VC Concept

Ubiquitous-Information SocietyUbiquitous-Information Society

38


Moving toward a Mature Global SocietyMoving toward a Mature Global SocietyPersonnel Growth at Overseas SubsidiariesPersonnel Growth at Overseas Subsidiaries

FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002

(Thousands ofpersons)

109109 (16%) 246246 (27%)

Establishment of the Toyota Institute

Establishment of the Toyota Institute

Training and opportunities for

overseas personnel

Training and opportunities for

overseas personnel

Number of personnel on a consolidated basis Percentage of personnel at overseas subsidiaries( ):

39

Ryuji ArakiRyuji ArakiRyuji ArakiRyuji ArakiExecutive Vice PresidentExecutive Vice PresidentExecutive Vice PresidentExecutive Vice President

Ryuji ArakiRyuji ArakiRyuji ArakiRyuji ArakiExecutive Vice PresidentExecutive Vice PresidentExecutive Vice PresidentExecutive Vice President

1

（（（（US-GAAP））））（（（（US-GAAP））））（（（（Japan-GAAP））））（（（（Japan-GAAP））））FY2001FY2001

（（（（Japan-GAAP））））（（（（Japan-GAAP））））（（（（US-GAAP））））（（（（US-GAAP））））

FY2002FY2002

Net Income before taxesNet Income before taxes

Operating IncomeOperating Income

Net IncomeNet Income(Billions of yen) （（（（Trillions of yen)

Net sales

Net sales

Income

Income

13.113.1 13.413.415.115.1

14.314.3

1,1071,107

790790

674674

870870

864864

471471

1,1231,123

1,1131,113

615615

1,0931,093

972972

556556

Overview of Fiscal 2002 Consolidated Business Performance

Overview of Fiscal 2002 Consolidated Business Performance

Net Sales Net Sales Net Sales Net Sales

2

Overview of 1Q of Fiscal 2003 Consolidated Business Performance

Overview of 1Q of Fiscal 2003 Consolidated Business Performance

（（（（Japan-GAAP））））（（（（Japan-GAAP））））Apr.-Jun. 2001Apr.-Jun. 2001

（（（（Japan-GAAP））））（（（（Japan-GAAP））））Apr.-Jun. 2002Apr.-Jun. 2002

Net Income before taxesNet Income before taxesOperating IncomeOperating Income

Net IncomeNet Income(Billions of yen)

(Trillions of yen)

Net sales

Net sales

Income

Income

3.33.3

4.04.0

297297

291291

162162

613613

394394

352352

Net SalesNet Sales

This includes ¥187 billion gains due to return of substituted portion of employee pension fund.

Note: Based on standard for interim financial statementNote: Based on standard for interim financial statement

3

Factor of Changes in Operating Income:1Q of Fiscal 2003

Factor of Changes in Operating Income:1Q of Fiscal 2003

291.3291.3

394.5394.5

Increase in operating income (¥103.2 billion)Increase in operating income (¥103.2 billion)

After eliminationof effect of foreignexchange

After eliminationof effect of foreignexchange

Apr.-Jun. 2001Apr.-Jun. 2001 Apr.-Jun. 2002Apr.-Jun. 2002

R&D expenses, Depreciation,

etc.(-56.8)

Marketingactivities(+20.0)

Cost reduction(+70.0)

Forex ratechange(+70.0) Change from

previous year(+33.2)

(Billions of yen)

（（（（Japan-GAAP））））（（（（Japan-GAAP））））（（（（Japan-GAAP））））（（（（Japan-GAAP））））

324.5324.5

Note: Based on standard for interim financial statementNote: Based on standard for interim financial statement

4

6,110 (Projection)6,110 (Projection)

RO

EO

perating incom

e ratio

(Japan GAAP)

(Thousands of units)

Long-Term Financial TargetsLong-Term Financial Targets

4,6954,695

FY2000 FY2001

12.7%

6.1% 6% 6.5%7.4%

5.8%5.8% 6.3%6.3% 6.8%6.8%8.5%8.5%

FY2002 FY2003/1Q

5,1825,1825,5275,527

5,7855,785

Operatingincome ratioOperatingincome ratio

Unit sales on consolidated basisUnit sales on consolidated basis

ROEROE

9%Target of operating

income ratio

10%(Target of ROE)

FY1999

9.8%

Excluding effect due toreturn of substituted portionof employee pension fund

Excluding effect due toreturn of substituted portionof employee pension fund

(％％％％)

(％％％％)

5

Results of cost reduction effortsResults of cost reduction efforts

Continuing Efforts to Reduce CostsContinuing Efforts to Reduce Costs

FY1996FY1996 FY1997FY1997 FY1998FY1998 FY1999FY1999 FY2000FY2000 FY2001FY2001 FY2002FY2002 FY2003FY2003

Eliminate WasteEliminate Waste

130130

110110

7070

120120

150150

190190

260260

7070

(Billions of yen)

1Q1Q

6

<Older models><Older models> CamryCamry

CorollaCorolla

StarletStarlet

Yaris(Vitz)Yaris(Vitz)New CorollaNew Corolla

New CamryNew Camry

<New models><New models>

PerformancePerformance * Construction of Cost Competitiveness 21* Construction of Cost Competitiveness 21

CCC21 Initiative *CCC21 Initiative *

Nearly completed identifying means to achieve the targets

(March 2002)

Nearly completed identifying means to achieve the targets

(March 2002)

Costs

Costs

Using Global Benchmarking, Set Our Targets for the World’s Best Cost and Performance for Components and Parts

Using Global Benchmarking, Set Our Targets for the World’s Best Cost and Performance for Components and Parts

CCC21 (About 170 items)

7

(Production platforms for passenger vehicles)(Production platforms for passenger vehicles)

Platform IntegrationPlatform Integration

FRFR

FFFF

11 platforms now in use

11 platforms now in use

Reduce to 6 platformsReduce to 6 platforms

8

(Billions of yen)

Financial BusinessFinancial Business

Operating incomeOperating income

FY1998 FY1999 FY2000 FY2001 FY2002 Mid-term Target

Existing basesExisting bases

Planned 2002 basesPlanned 2002 bases

22

2

Global Sales Finance NetworkGlobal Sales Finance Network

Future expansion to bases in 30 countries

9

Image of Fiscal 2002 Consolidated Cash FlowsImage of Fiscal 2002 Consolidated Cash Flows

*Japan GAAP

Cash Flow ManagementCash Flow ManagementEfficient Use of CapitalEfficient Use of Capital Long-term Stable GrowthLong-term Stable Growth

Increasing Shareholders’ ValueIncreasing Shareholders’ Value

R&D592

R&D592

Net income615

Net income615

Depreciation699

Depreciation699

Capital investment

940

Capital investment

940

374374

(Billions of yen)

&&

10

487487 453453 479479

592592

871871 860860

973973 940940

203203 150150

FY1999 FY2000 FY2001 FY2002 FY2003/1Q

Capital investmentCapital investment R&D expensesR&D expenses

980 (projection)980 (projection)

650 (projection)650 (projection)

(Billions of yen)

Aiming at the Future GrowthAiming at the Future GrowthCapital Investment and R&DCapital Investment and R&D

11

1,210

36.8

1,168 1,159 1,1091,363

43.541.9

40.641.3

FY1998 FY1999 FY2000 FY2001 FY2002

Net funds

Maintaining Sufficient Level of LiquidityMaintaining Sufficient Level of Liquidity

(consolidated, excluding financial business)

(Billions of yen)

Shareholders’ equity ratio(consolidated)

(%)

12

Asset AllocationAsset Allocation

12.712.7

19.819.8(Trillions of yen)(Trillions of yen)

Operating Assets

Operating Assets

Asia and Others 0.6Asia and Others 0.6Europe 0.5Europe 0.5

North America3.4

North America3.4

Japan5.8

Japan5.8

2.42.4

10.310.3

Asia and Others 1.0Asia and Others 1.0Europe 1.2Europe 1.2

North America6.5

North America6.5

Japan9.2

Japan9.2

1.91.9

17.917.9

Non-operating AssetsNon-operating Assets Non-operating AssetsNon-operating Assets

End of FY1997End of FY1997 End of FY2002End of FY2002

13

*Calculated at the end of each fiscal year, assigning fiscal 1991 as factor of 100

Total Market Value of Toyota Shares in Tokyo Stock Exchange Market Cap Rose from 1.4% in 1991 to 4.4% in 2002

Total Market Value of Toyota Shares in Tokyo Stock Exchange Market Cap Rose from 1.4% in 1991 to 4.4% in 2002

(4.4%)

(1.4%)

Long-Term Stable Growth in Share ValueLong-Term Stable Growth in Share Value

Changes in aggregate market valueChanges in aggregate market value

Toyota sharesToyota shares

Tokyo Stock ExchangeTokyo Stock Exchange%=

Market value of Toyota Shares

Aggregate market value of TSE

FY1991FY1991 FY1992FY1992 FY1993FY1993 FY1994FY1994 FY1995FY1995 FY1996FY1996 FY1997FY1997 FY1998FY1998 FY1999FY1999 FY2000FY2000 FY2001FY2001 FY2002FY2002

14

*(Annual dividends + Shares canceled) / Net income (On non-consolidated, Japan GAAP basis)*(Annual dividends + Shares canceled) / Net income (On non-consolidated, Japan GAAP basis)

Shareholder’s ReturnShareholder’s Return

FY1995FY1995 FY1996FY1996 FY1997FY1997 FY1998FY1998 FY1999FY1999 FY2000FY2000 FY2001FY2001 FY2002FY2002

400

300

200

100

0

120%

100%

80%

60%

40%

20%

0%

Dividends Payout: Increasing Steadily (¥14.5 per share to ¥28 per share)Dividends Payout: Increasing Steadily (¥14.5 per share to ¥28 per share)Accumulative Value of Shares Canceled: ¥922 BillionAccumulative Value of Shares Canceled: ¥922 Billion

Annual dividendsAnnual dividends

Shares canceledShares canceled

Return ratio*Return ratio*

(Billions of yen)

Note: 1. Figures for FY95 only reflect 9-months result to reflect the change in fiscal year-end.Note: 1. Figures for FY95 only reflect 9-months result to reflect the change in fiscal year-end.Amount of shares canceled decreased inFY2000 due to various legal constraints relating to Toyota’s listing on NYSE and LSE. Amount of shares canceled decreased inFY2000 due to various legal constraints relating to Toyota’s listing on NYSE and LSE.

Note: 2.Note: 2.

Figure of shares canceled in FY2002 includes ¥143 billion of shares repurchased during FY2002, and canceled during FY2003. Figure of shares canceled in FY2002 includes ¥143 billion of shares repurchased during FY2002, and canceled during FY2003.

Note: 3.Note: 3.

14.514.5 1919 2222 2323 2323 2424 2525 ¥28/share¥28/share

15

Up to ¥600 billionUp to 170 million shares

Authorized Amount of Repurchase

Share RepurchaseShare Repurchase

(Between Annual General Shareholders’ Meetings 2002 and 2003)

16

Banks

Life and non-lifeinsurance companies

Corporations, etc.

Individual investors

Foreign investors

22%

19%

14%

19%

16%

9%

End of Mar. 2002End of Sept. 1999

11%

34%

17%

21%

7%

10%

Held in trust accounts

44% down

1% treasury stock

Update on Current Toyota’s Share OwnershipUpdate on Current Toyota’s Share Ownership

62%55％％％％Financial institutions

17

Toyota’s Accounting PolicyToyota’s Accounting Policy

1) Disclosure for a better transparency

2) Conservative accounting

Disclose financial statements in accordance withboth Japan & US GAAP

Implementation of rigorous standards (for valuation of marketable securities and inventories)

No impaired assets remain on balance sheet

18

1) Interim consolidated results

2) Strengthened consolidated accounting (introduction of criteria for actual corporate control*)

3) Tax effect accounting

4) Accounting for retirement benefits

5) Accounting for financial instruments

00/9 -

Principal changes

*SPE (disqualified): Application of actual control criteria (no 3% rule)

Changing in Japan’s Accounting StandardsChanging in Japan’s Accounting Standards

Systemic changes Implemented by Toyota

Financial instrumentsCross-holding of shares, etc.

00/3 -

00/3 -

00/9 -

00/9 -01/9 -

98/9 -

99/9 -

99/9 -

00/9 -

00/9 -00/9 -

Adopted these changes to our accounting system in advanceAdopted these changes to our accounting system in advance

19

Japanese standards for financial statements:

Financial Statements are Audited TwiceFinancial Statements are Audited Twice

> Rules for calculating financial statements set forth in the Commercial Code

> Rules for preparing financial statements set forth in the Securities and Exchange Act

U.S. standards for financial statements :PricewaterhouseCoopers

ChuoAoyama

20

Shareholders’ MeetingShareholders’ Meeting

Board of DirectorsBoard of Directors

Directors

Representative Directors

Representative Directors

Accounting AuditAccounting Audit

ExecutionExecution

AuditAudit

ElectionElection

Corporate Governance under theCommercial Code of Japan

Corporate Governance under theCommercial Code of Japan

Approval of directors’

remuneration, bonuses, pensions,

stock options

ElectionElection

Approve transactions witch may involve

conflicts of interest.

Strengthen authority for

corporate auditors

ElectionElection

Accounting AuditorsAccounting Auditors

Election Monitoring

Election Monitoring

Board of Corporate Auditors

Board of Corporate Auditors

Auditors

Outside Auditors

21

Focus onShareholders

Focus onShareholders

Harmonious Growth

Harmonious Growth

CS No.1CS No.1

Basic Statement of Toyota Style GovernanceBasic Statement of Toyota Style Governance

EmployeesEmployees

CreditorsCreditors

CommunityCommunity

SuppliersSuppliers

DealersDealers

ManagementEfficient

Operation

ManagementEfficient

Operation

CustomersCustomers

ShareholdersShareholders

Toyota WayToyota WayLong-term

Stable Grow

th

22

Internal insider-trading regulations:

24-hour rules, Rules for trading Toyota shares

Prompt Decision Making and Intensive Risk ManagementPrompt Decision Making and Intensive Risk Management

Shareholders’Meeting

Shareholders’Meeting

Decision-makingEVP and above

Decision-makingEVP and above

ExecutionSenior managing

director and below

ExecutionSenior managing

director and below

NYSE, LSE Listing(SEC Disclosure)

NYSE, LSE Listing(SEC Disclosure)

InternationalAdvisory Board

InternationalAdvisory Board

Labor-Management

Council/Forum

Labor-Management

Council/Forum

Social ContributionCommittee

Social ContributionCommittee

CorporateEthics

Committee

CorporateEthics

Committee

Stock OptionCommittee

Stock OptionCommittee

MonitorMonitor MonitorMonitor

Toyota WayToyota Way

Higher Transparency Reviewed by “Many People”Higher Transparency Reviewed by “Many People”

Internal AuditInternal Audit

23

Cautionary Statement with Respect to Forward-Looking Statements

This presentation contains forward-looking statements that reflect Toyota’s plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyota’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include: (i) changes in economic conditions affecting, and the competitive environment in, the automotive markets in Japan, North America, Europe and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro and the British pound; (iii) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (iv) changes in the laws, regulations and government policies affecting Toyota’s automotive operations, particularly laws, regulations and policies relating to environmental protection, vehicle emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government policies affecting Toyota’s other operations, including the outcome of future litigation and other legal proceedings; (v) political instability in the markets in which Toyota operates; (vi) Toyota’s ability to timely develop and achieve market acceptance of new products; and (vii) fuel shortages or interruptions in transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold. A discussion of these and other factors which may affect Toyota’s actual results, performance, achievements or financial position is contained in the “Operating and Financial Review and Prospects” and “Information on the Company” sections and elsewhere in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.

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