Automotive   |   Toyota Motor
Integrated  
Report 2021  
Integrated Report 2021  
Fiscal year ended March 31, 2021  
The Integrated Report 2021 is intended to communicate to stakeholders Toyota’s policies  
and strategies for addressing management issues to achieve its vision for the future. More  
detailed information is available from the Toyota Times website as well as Toyota’s other  
reports and websites.  
Contents  
2
5
Message from the President  
(
Published January 2022)  
Toyota’s Reports and Publications  
The Source of Our Value Creation: What Makes Us Toyota  
Integrated Report  
5
6
Our Founding Spirit  
The Toyoda Principles and  
Toyota Philosophy  
7 Toyota Production System (TPS)  
Toyota Times website  
Securities Reports/SEC Filings  
Sustainability Data Book  
8
3
Value Creation Story: Working toward the Mobility Society of  
the Future  
Financial Results/Operating Results  
Corporate Governance Report  
Sustainability section of  
Toyota’s website  
IR section of Toyota’s website  
8 Making Ever-better Cars  
28 Commercial Sector Initiatives  
1
2
2 Initiatives to Achieve Carbon Neutrality 29 Woven City  
5 Software and Connected Initiatives  
Financial  
Non-financial  
Period Covered  
Fiscal 2021 (April 2020 to March 2021). Some initiatives in fiscal 2022 (April to December  
021) are also included.  
0 Business Foundations for Value Creation  
2
3
3
3
3
3
0 Messages from the Outside Directors  
1 Corporate Governance  
4 Capital Strategy  
5 The Environment  
7 Safety  
39 Human Rights and Supply Chains  
40 Diversity and Inclusion  
42 Employees, Safety and Health,  
and Social Contribution Activities  
43 Risk Management and Compliance  
Scope of Report  
Initiatives and activities of Toyota Motor Corporation and its consolidated subsidiaries, etc.,  
in Japan and overseas  
Reference Guidelines  
This report was prepared with reference to the International Integrated Reporting  
Framework issued by the Value Reporting Foundation (VRF).  
38 Quality, Information Security,  
and Privacy  
About the PDF  
4
4 Corporate Data  
This file is an interactive PDF and can be navigated by clicking on the following elements.  
Message from the President  
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44 Board of Directors and Audit &  
Supervisory Board Members  
47 Operating Officers and  
Organizational Structure  
48 Global Perspective/Data by Region  
49 History  
Toyota announced at the briefing that it is boosting its  
plans for BEV sales in 2030 from million to 3.5 million  
units and that Lexus is aiming for BEVs to account for  
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all option. That is why Toyota wants to prepare as  
many options as possible for our customers around  
the world.  
to run. This is exactly the technology that Toyota has  
been refining for more than 30 years.  
2
1
Putting our best efforts into addressing all aspects of  
this question, with this vehicle, we are aiming for  
China by the same year, followed by BEVs accounting  
for 100 percent of its sales globally starting in 2035.  
We believe that all electrified vehicles can be divided  
into two categories, depending on the energy that  
they use.  
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power efficiency of 125 watt-hours per kilometer,  
For its launch next year, we are preparing for the  
which would be the highest efficiency rate in the  
compact SUV class.  
50 Financial Summary  
52 Corporate Information and  
Stock Information  
Jump to specific parts within each section  
The ambitious figures and the array of planned-for-  
launch BEVs on the stage at the briefing led some  
observers to suggest that Toyota, which had been  
production of the bZ4X at Toyota’s Motomachi Plant  
right this very moment. We will soon begin delivering  
it to our customers.  
One category is that of “carbon-reducing vehicles.” If  
the energy that powers vehicles is not clean, the use  
of an electrified vehicle, no matter what type it might  
The next model is  
a midsize sedan that meets  
viewed by some as not having  
a
positive position on  
customers’ expectations for a first car.  
BEVs, had changed its policy and shifted to focusing on  
BEVs. However, in his presentation, President Akio  
Toyoda stressed the importance of having diverse  
options. He also shared his sentiments regarding the  
people of the automotive industry.  
be, would not result in zero CO  
2
emissions.  
Furthermore, we are expanding the bZ series lineup.  
(Photo: Noriaki Mitsuhashi/  
The other category is that of “carbon-neutral vehi-  
cles.” Vehicles in this category run on clean energy  
This midsize SUV has a beautiful silhouette that  
presages new era for battery EVs. With just  
glance, its styling invites you to get in and go for  
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Toyota’s part for carbon neutrality  
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Five Toyota bZs revealed  
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particularly our strategy for battery electric vehicles,  
which represent one of the most promising options.  
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goal is not only to reduce CO emissions and other  
negative impacts to zero. Our goal goes beyond that.  
2
What do you think? We will not only add battery EV  
I
believe that achieving carbon neutrality means  
realizing world in which all people living on this  
planet continue to live happily. We want to help realize  
such world. This has been and will continue to be  
oyota’ wish and our mission as global company.  
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the world the unique and beautiful styling as well as  
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1
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Message from the President  
Taking action with a strong will and passion can absolutely change the future  
Akio Toyoda Reflects on His 12-year Presidency  
The COVID-19 pandemic is still affecting regions around the world to this day. Against this  
backdrop, we at Toyota have continuously worked shoulder to shoulder with fellow manufac-  
turers who together constitute the automotive industry, with the aim of supporting people’s  
mobility and energizing the economy as a whole. At the same time, as we aim to pass down to  
the next generation a beautiful Earth in which everyone can live more happily, we have accelerated  
investment in initiatives aimed at achieving carbon neutrality as well as those related to CASE  
technologies, including Woven City. The continuation of these endeavors is, we believe, only  
possible due to stakeholder support. We hereby extend our wholehearted gratitude to all  
our stakeholders.  
Not all of the actions we took during this difficult period were correct or successful. We experi-  
enced countless failures and made countless mistakes. But it is because I, together with my  
colleagues, took action, that our failures came to light, upon which we stopped and took steps  
to improve. This has led us to where we are today.  
Our total sales over the past 12 years reached 300 trillion yen. However, the automotive industry  
has a broad supply chain. About 70 percent of the parts we use are purchased from suppliers,  
meaning that about 70 percent of our sales income can be attributed to what we paid for such  
parts. The cumulative total of these payments to suppliers is about 230 trillion yen. Considering  
that the annual national budget of Japan is 100 trillion yen, I think we can say that a consider-  
able amount of money was made outside of Toyota. In addition, the consolidated number of  
employees increased by 50,000 to 370,000.  
I believe that I was able to continue as president because of various crises. One after another,  
we have dealt with “once-in-a-century” crises, such as our fall into the red due to the global  
financial crisis, followed by the recall crisis, the U.S. Congressional hearings, and the Great  
East Japan Earthquake. I believe that it is precisely due to these crises that Toyota—and me as  
its president—have endured to this day. It is due to these crises that more and more of my  
Toyota colleagues started to listen to my perspective and to try to change.  
Over the past 12 years, my colleagues and I have tirelessly taken action and faced reality  
together with those in the genba (on the front lines), trying to find the way forward through an  
uncharted world, working toward our mission of determining how Toyota should be.  
(
Photo: Noriaki Mitsuhashi/N-RAK PHOTO AGENCY)  
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Pursuing Best-in-town Around the World  
The world is changing faster and on a grander scale than we have ever seen. The changes  
taking place now call into question even things that many of us previously took for granted,  
such as liberalism and globalization. Witnessing these changes has made me feel more strongly  
than ever the importance of aiming to be the best in town.  
We might call this idea “give and give.” Not “give and take,” but “give and give.” It means trying  
to do what you think will be purely good for others, without expecting anything in return, and  
always doing so with a sense of gratitude.  
Adhering to this idea will, over time, create trust, leading to mutual growth and development.  
And that, I believe, will lead to Toyota becoming best in town.  
It’s not about aiming for global scale or trying to become the best in the world; it’s about being  
the best in town. Our goal is to be the most trusted, most loved company in the towns where  
we operate. The idea is to work to bring smiles to the faces of the people in the towns we serve.  
Toyota’s Mission of “Producing Happiness for All”  
With the CASE revolution, I believe that the cars of the future will be connected to communities  
and people’s lives through information, becoming part of our social systems.  
Amid this changing landscape, we are striving to completely redesign ourselves as a mobility  
company and ambitiously working to create an “ever-better mobility society” in which people  
can live happily, with smiles on their faces.  
As an automobile company, our history is one of manufacturing industrial products. Uniformity  
in our workforce was necessary for this work, because it is important to produce consistent  
quality regardless of the product or who is working on it. However, the needs of customers and  
society are becoming more diverse, and, going forward, mobility will need to offer attractive  
performance in terms of both hardware and software. Under such circumstances, I feel that  
human resources with diverse values and abilities are increasingly important. I also believe that  
such a diverse and talented workforce will be the driving force behind innovation.  
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Woven Planet, the software company of the Toyota Group, is at the forefront of such innova-  
tion. In Woven City, we will demonstrate a mobility society on the level of a city, going beyond  
hardware and software to connect hearts, and, together with diverse partners, make people in  
the community happy.  
I believe that a mission is not something to be shared through words, but rather, through work  
and action in the genba that represents the mission on the basis of genchi-genbutsu (onsite,  
hands-on experience).  
When I was appointed president 12 years ago, I was asked about my aspirations. I said that I  
wanted to be the most “genba-oriented” president. I cannot foresee the future. All I can do,  
instead, is to give it a try together with my colleagues at the genba and never stop moving  
forward, making mistakes and improvements along the way. I believe that there is a world of  
difference between where we might end up simply by letting things run their course for the next  
20 to 30 years and how that same future might look if we continue to take action with passion  
and the will to make the future better.  
The Toyota Philosophy, which we established in 2020, defines our mission as “producing  
happiness for all.” I believe that happiness can take various forms, depending on the person.  
Producing happiness for all” does not mean producing the same thing for everyone. Thinking  
through diversification and engaging in high-mix, low-volume production is the kind of  
production of happiness for all” for which we aim.  
At Toyota, a great many people are working together with various stakeholders in their respective  
genba on tasks of the present, past, and future.  
As the most genba-oriented president, I will continue to try to prove through my actions that  
we can absolutely change the future if we are all united as one under the mission of “producing  
happiness for all.”  
Those working on present-oriented tasks continue to build up strength for the work of the  
future. Those working on past-oriented tasks are continuously making improvements to avoid  
bringing negative things forward to the future. Those working on future-oriented tasks are using  
the strength generated by the work on the present and the past to take on new challenges—  
making mistakes along the way—to push forward into uncharted territory.  
I have realized something about how Toyota has changed—Toyota, which used to be siloed by  
function, has now become united as one. What is the driving force behind this? I think it is  
our mission.  
Let’s make ever-better cars.”  
Let’s aim to be the best in town, not the best in the world.”  
Let’s achieve sustainable growth.”  
Let’s work for the sake of others.”  
During my time as president, the entirety of what I have tried to convey to our 370,000  
colleagues around the world comes down to the importance of thinking through the questions,  
What is our purpose as a company?” and “How can we contribute to the world?”  
4
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Our Founding Spirit  
The Toyoda Principles and Toyota Philosophy  
Toyota Production System (TPS)  
Our Founding Spirit: For the Sake of Others  
Sakichi Toyoda Sought to Ease His  
Mother’s Burden  
Furthermore, the Type G automatically changed  
the loom’s shuttle when the thread was close to  
running out. When changing the shuttles holding  
the weft thread, operators previously had to use  
their mouths to suck the end of the thread through  
the eye of the shuttle, inhaling cotton dust, which  
caused problems in the lungs of many workers.  
Sakichi, Kiichiro, and the colleagues invented a way  
to pull the thread through using a simple manual  
action that took advantage of the thread’s tension.  
The drive to serve others and make their work  
easier—like Sakichi’s desire to ease the burden of his  
mother and employees—was carried on by his son  
Kiichiro and remains a core value of Toyota today.  
The Type G automatic loom was said to boast  
the best performance of any loom in the world,  
improving productivity more than twentyfold and  
dramatically increasing textile quality. The success  
of the Type G empowered Kiichiro Toyoda to take  
on the challenge of establishing a Japanese  
automotive industry, which many at the time,  
more than 80 years ago, considered beyond the  
capabilities of Japanese industry. This was the  
work to which he would dedicate the rest of his life.  
Kiichiro was already determined to produce  
domestic cars and establish a Japanese auto  
industry. In 1926, Kiichiro was named managing  
director of the newly established Toyoda  
Motor Sales Co., Ltd. was established to resolve  
the problem of delays in payments for vehicles,  
a major cause of the Company’s financial troubles.  
Far from improving, however, the situation  
worsened further. As the Company’s business  
results showed no sign of improvement,  
labor-management negotiations with the Toyota  
Motor Co., Ltd. labor union deteriorated into a  
protracted dispute. During collective bargaining  
that April, the Company made reconstruction  
proposals centered on job cuts that the labor  
union could not accept, and the dispute  
continued for another month and a half until  
a memorandum was finally signed in June.  
Accepting responsibility for the labor disputes,  
Kiichiro Toyoda resigned as president of the  
Company in May 1950. In March 1952, he agreed  
to make his much-awaited return to the position,  
but, before he could do so, he passed away at  
the age of 57. Nevertheless, his aspirations were  
kept alive by his colleagues, who persevered with  
purely home-grown technologies as other  
Japanese automakers were forming technology  
alliances with U.S. and European manufacturers.  
These efforts led to the 1955 launch of the  
Toyopet Crown, the first passenger car to be  
developed and built entirely in Japan, a long-held  
dream of Kiichiro Toyoda.  
Sakichi Toyoda, the founder of the Toyota Group,  
was born the son of a carpenter in the village of  
Yamaguchi, now part of Kosai City, Shizuoka  
Prefecture, in 1867. Full of curiosity, Sakichi is said to  
have spent his early years reading a wide range of  
books, thinking about how he might make a contri-  
bution to society. One day, Sakichi was thinking  
about his mother, and how every evening she toiled  
at her loom, weaving fabric late into the night. He  
wondered if there might be a way to make her work  
easier. At the time, weaving was a laborious process,  
requiring the use of both hands and legs to control  
the threads of warp and weft in sequence. At the  
age of 23, Sakichi invented his first loom, the Toyoda  
Wooden Hand Loom, which could be operated with  
only one hand and greatly increased efficiency. He  
patented the loom in May 1891.  
Seeking to more dramatically increase capacity,  
Sakichi turned his attention to developing  
a powered loom and invented Japan’s first, the  
Toyoda Power Loom, for which he received  
a patent in August 1898.  
Sakichi continued to invent and improve looms  
for more than two decades. This work came to  
head with the Non-Stop Shuttle Change Toyoda  
Automatic Loom, Type G, invented in 1924 in  
collaboration with his son, Kiichiro.  
At the time, automatic looms had to be con-  
stantly watched over by human operators so that  
they could intervene when unpredictable anoma-  
lies, such as threads breaking, occurred. The Type  
G automatic loom used a mechanism to detect  
anomalies like running out of or breaks in the  
thread, stopping automatically in response.  
Automatic Loom Works, Ltd. and began studying  
automobiles in earnest. The company established  
an automotive department in September 1933  
and in 1934 officially entered the automotive  
business, completing its first engine prototype.  
In 1935, the first Toyoda Model A1 prototype  
passenger car was completed, and the Toyoda  
Model G1 Truck was announced. The very next  
year, in 1936, mass production of Model AA  
passenger cars commenced. Toyota Motor Co.,  
Ltd. was established in 1937, with Kiichiro be-  
coming its president in 1941.  
Management Crisis, Labor Disputes, and  
Commitment to Providing Employment  
In post-war 1949 Japan, measures to curb  
inflation rapidly stabilized prices, but the resulting  
reduction in the money supply plunged industry  
into serious funding shortages, triggering the  
so-called “Dodge Line Recession.” The prices of  
iron, steel, and other materials rose, but the  
officially fixed price of automobiles stood  
unchanged, causing the profitability of the  
automotive industry to decline significantly.  
In December of that year, Toyota Motor Co.,  
Ltd. and its labor union signed a memorandum  
aimed at cooperating to overcome the crisis,  
stating that that the Company was at all costs to  
avoid job cuts as a means of overcoming the  
crisis. Kiichiro had faced employment issues at  
Toyoda Automatic Loom Works during the Showa  
Depression in 1930 and was determined to never  
again allow such a situation to arise. His entry into  
the automotive industry had been in part a strate-  
gy to diversify and thereby avoid the recurrence of  
employment problems, so he was, of course,  
resolved to avoid job cuts at all costs in the face  
of the 1949 business crisis.  
Making Domestic Cars and Establishing  
a Japanese Auto Industry  
Kiichiro Toyoda, the son of Sakichi, was born in  
1894. After graduating from college in 1921, he went  
to work at Toyoda Boshoku, his father’s company,  
and traveled to Europe and the United States for the  
first time. In the 1920s, the streets of the United  
States were teeming with Ford Model Ts. The  
automotive era was dawning. In Japan, the number  
of imported automobiles was gradually rising, but  
their use was confined to the very wealthy.  
The Spirit of Sakichi and Kiichiro Toyoda  
Born into a poor family, Sakichi Toyoda was  
driven to make others’ work easier, teaching  
himself in order to invent automatic looms and  
going on to build Toyota’s foundations. Not  
content to simply follow the easy path set by his  
father, Kiicihro Toyoda took on the challenge of  
domestic car-making, which many at the time  
said was impossible, navigating tremendous  
social changes as he built the Company and the  
foundations of Japan’s automotive industry. The  
spirit they embodied—of striving to stay ahead of  
the times and endeavoring to be studious and  
creative for the betterment of lives and society—  
lives on in Toyota today. It is the core of what  
makes us Toyota.  
Sakichi’s first invention:  
The Toyoda wooden  
hand loom  
Model A1 passenger car proto-  
type completion ceremony  
(photo provided by the  
Toyota Commemorative  
Museum of Industry  
and Technology)  
In January 1950, negotiations with the Bank of  
Japan began on the Toyota Motor Co., Ltd.  
reconstruction plan. In April of that year, Toyota  
Type G  
automatic loom  
5
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Our Founding Spirit  
The Toyoda Principles and Toyota Philosophy  
Toyota Production System (TPS)  
With an eye toward “Producing  
Happiness for All” - Selections  
from the Q&A session of Toyota’s  
The Toyoda Principles and Toyota Philosophy  
1
H/2Q financial results briefing  
In 1935, five years after the passing of Sakichi Toyoda, the  
Company had grown to more than 10,000 employees as the  
DNA  
Modern Interpretation  
We unite as one team regardless of rank in order to contribute to our people, society,  
and communities.  
Toyota’s basic principles  
automotive business ramped up. The Toyoda Principles were  
compiled at this time to convey Sakichi’s teachings to all employees  
and provide guidelines for all aspects of their work.  
The top management of Toyota that took over from Kiichiro,  
Sakichi’s son, further codified the Toyota Philosophy, encompassing  
Toyota’s values, priorities, and strengths. This philosophy provided  
the answer to the fundamental question, “What is Toyota?” as  
a touchstone for the entire Group.  
We develop and learn from outstanding ideas and cutting-edge technologies across the world.  
We enhance our capabilities utilizing our own wisdom and create new value to continue to lead  
the change.  
Toyoda Principles  
The Toyoda Principles, or Five  
Main Principles of Toyoda,  
have since been handed  
down to every Toyota Group  
company and serve as  
• We focus on work that is value-adding, with integrity and practicality, by avoiding  
superficial matters.  
• We build a sense of community and promote the personal growth of our people while valuing  
mutual trust and equal partnership with our stakeholders.  
We show humility for the support of our business by our valued stakeholders and society while  
also respecting the diversity of the world.  
guidelines for all employees.  
Five Main Principles of Toyoda  
The automotive industry is experiencing a once-in-a-century transfor-  
mation. In the same way that Toyota transitioned from loom maker to  
automaker, we are now reinventing ourselves as a mobility company.  
To guide us as we push forward into the future amid an era of  
uncertainty, we have now created the Toyota Philosophy Cone,  
a graphic representation of the Toyota Philosophy presented in  
a shape that evokes both the spools of thread used in looms and  
the traffic cones used to guide cars.  
MISSION  
Toyota’s mission since its foundation  
Producing Happiness for All  
Born into a family of poor farmers, Sakichi Toyoda built the bedrock of today’s Toyota by inventing the Toyoda Automatic Loom by  
himself. Abandoning the easy path left by his father, Kiicihro Toyoda took on the challenge of making cars. Many at the time said it  
was impossible.  
Sakichi Toyoda  
Their passion was carried on by those who worked with them, shaping the Toyota we know today. What they truly wanted to make  
was a sense of happiness for any customer who used their products, as well as happiness for every person involved in the work  
related to those products. The core of this aspiration was the idea of producing happiness for all.  
However, during Toyota’s long history, there was a brief time when we turned our focus to numbers and gave less thought to people.  
Primarily due to our rapid expansion in the late 20th century, we faced many problems, including quality concerns and trade friction.  
Let us not forget that there are some things that machines cannot create. Only humans can invest the time and energy to bring life  
such things. We strive to stay ahead of the times, endeavoring to be studious and creative for the betterment of lives and society.  
sing our technology, we work toward a future of convenience and happiness available to all. This is our mission, producing  
ppiness for all, and the core of what makes us Toyota  
What is Toyota?  
Toyota Philosophy Cone  
Sakichi Toyoda’s  
Kiichiro Toyoda  
resolution  
Facilities  
ISION  
VALUE  
e future vision that Toyota aspires to  
Value that Toyota can promise to stakeholders  
reating Mobility for All  
Toyota Way  
Operations  
yota strives to raise the quality and availability of mobility, so that individuals,  
sinesses, municipalities, and communities can do more, while achieving a  
stainable relationship with our planet. This is our new destination.  
Motorization has enabled freedom of movement and has brought people and  
ciety closer. As a result, more people than ever can now experience mobility,  
cluding the “fun to drive” experience.  
And yet, challenges related to mobility persist. There are still many potential  
portunities to overcome inconveniences and break through the impossible  
th new possibilities.  
As we work to realize mobility for all, the road will be rough at times.  
In addition to our commitment to monozukuri (manufacturing), we  
must foster imagination regarding the possibilities of people and  
society. These tangible and intangible aspects together power  
Toyota: imagination fuels monozukuri, and monozukuri sparks new  
imagination. In advancing this cycle, it is essential to center the  
perspectives of our many stakeholders, imagining their points of view.  
We work with our stakeholders and partners, each elevating the  
other, uniting the strengths of all three to create new and unique  
value. This is the new Toyota Way.  
Management is  
about people  
Stakeholders  
“To move” can refer to physical motion, but also to the experience of being  
motionally moved. It is our role to move people and bring mobility to life—to  
ove hearts, minds, and bodies. To move society.  
6
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Our Founding Spirit  
The Toyoda Principles and Toyota Philosophy  
Toyota Production System (TPS)  
What is the Toyota Production System?  
Toyota Production System (TPS)  
Akio Toyoda’s View  
Participant A  
I think they are “Just-in-Time” and “automation with  
a human touch,” or “Jidoka.”  
When the thread ran out, it automatically changed  
to another wooden shuttle with a new thread.  
The shuttle needs to have the thread end out on  
the surface. Before this machine was invented,  
workers had to suck it out themselves. The problem  
was that there was a lot of cotton dust in the air in  
textile factories, which could damage workers’ lungs  
when they inhaled deeply. Sakichi invented a new  
feature that automatically brought out the thread end.  
This invention was the result of Sakichi simply  
exploring a desire to do something for his team  
members on the manufacturing front lines who were  
suffering damage in their lungs.  
time required for products or services to be delivered  
after they are ordered.  
Toyoda  
Toyoda  
What comes to mind when you think about  
Just-in-Time?  
That’s it! That’s what I wanted to hear! (everyone laughs)  
That’s why I volunteered to be the lecturer today to  
help kick off the TPS training program. Hopefully,  
I can help narrow the gap between my understanding  
of Jidoka and Just-in-Time and yours.  
First of all, let’s talk about Jidoka. It’ll be easier to  
explain the concept by first looking at the automatic  
loom invented by Sakichi Toyoda. Thinking about his  
mother, and how she toiled to weave fabrics every  
evening and late into the night, the young Sakichi  
wondered if there might be a way to ease her burden.  
Taking a “what is needed when needed” approach,  
to respond quickly to customer needs, there would  
need to be a lot of inventory, right? One finished  
vehicle consists of about 30,000 parts. So, it would  
follow that for a production line to flexibly produce  
orders quickly, a tremendous amount of inventory  
would need to on hand, right?  
Participant B  
But if we know and can meet what customers want...  
Toyoda  
Who do you mean by “customers”?  
Participant B  
Each downstream process... or our final end users.  
Toyoda  
But we sell around 10 million new vehicles annually,  
and that means we have the same number of  
customers. How can we understand what is needed  
by each specific customer? We can’t, so instead, we  
have to have a lean operation in place to detect  
abnormalities right away and halt the pipeline so that  
we can make improvements quickly. And that’s why  
we need Just-in-Time.  
Thus, Sakichi determined what the abnormalities  
were and then came up with system to prevent or  
stop them. As a result, productivity improved—not  
the other way around. He did not do all this just to  
improve productivity.  
In May 2020, at Toyota’s financial results briefing,  
President Akio Toyoda reflected on the efforts the  
Company had made over the previous few years, saying:  
When Sakichi developed his first automated loom, both  
hands were used to control the threads of warp and weft.  
His invention allowed his mother to operate a loom using  
only one hand. It also helped improve quality, increasing  
overall efficiency and dramatically improving productivity.  
“Over the past few years, we came to feverishly engage  
in both a fight to bring back what makes us Toyota  
and the complete redesign of Toyota for the future.”  
3. How President Toyoda Sees Jidoka  
(
Automation with a Human Touch)  
Often at Toyota, TPS is considered the process of  
making things efficient, and people talk about it as if  
changing work processes is TPS’s purpose. But,  
I think the purpose should always be to make  
someone’s work easier.  
Revisiting messages President Toyoda gave starting from  
a few years ago, two of the things he repeatedly has said  
that makes us Toyota are the Toyota Production System,  
or TPS, and cost reduction.  
In my view, Jidoka is about being centered on  
people. It’s about putting yourself in the shoes of  
someone working there. You can’t just issue orders  
to improve efficiency or reduce resources from the  
safety of your position far from the front lines.  
Toyota also has this idea about adjusting the work  
per person to match the full output of one unit of  
manpower (pursuing ichi-nin-ku in Japanese).  
Last year, at Toyota Motor Corporation in Japan,  
a new training program was started to nurture a select  
group of “TPS leaders” from various divisions across the  
Company. To emphasize the importance of the program  
and to share his own thoughts about TPS, President  
Toyoda joined the kick-off session.  
2. Improving Productivity was not the  
In this way, I think the key concept that makes  
Just-in-Time easier to understand is “lead time.”  
Main Purpose  
At Toyota, a common term for the next process in  
a workflow, whether it be in manufacturing or in an office,  
is “downstream process.” Those in the downstream are  
considered a “customer.” President Toyoda was trying to  
convince the participants to think of “Just-in-Time” in the  
context of the bigger picture, to consider not only the  
immediate downstream, but how things relate to the  
company as a whole to deliver Toyota’s vehicles to the  
end customers “just-in-time.”  
The Type G automatic loom is the machine that helped  
drive a redesign of Toyota’s business. Automatic looms  
back then were always monitored by one operator,  
based on a mindset of “one person, one machine.”  
Each person was the “guard” of their machine.  
This was because operators were unable to  
predict abnormalities.  
This concept of ichi-nin-ku means the amount of work  
that one worker can or should accomplish in a day.  
1
. Sakichi Toyoda Sought to Ease His  
Mother’s Burdens  
We all only have 24 hours in a day. This applies equally  
to everyone. And employees spend a lot of that time  
devoted to work for a company. Knowing this,  
supervisors must make the work being done by team  
members as meaningful as possible. That is what  
Toyota’s manufacturing front lines have been pursuing.  
This training program was created for Toyota’s manage-  
ment leaders who don’t work at manufacturing front  
lines to gain a deeper understanding of TPS in order to  
help the Company accelerate its efforts to bring back the  
essence of what makes it Toyota as it looks to completely  
redesign Toyota for the future.  
With this automatic loom, Toyota was able to secure the  
capital required to shift its business model from an  
automatic loom manufacturer to a car manufacturer. This  
was because a world-leading automatic loom company  
in the United Kingdom asked Toyota to sell its automatic  
loom technology.  
The focus is creating more free time for workers by  
eliminating waste in work processes to reduce overtime.  
Pursuing ichi-nin-ku means valuing each person’s time.  
5. Achieving the Lead Time of  
a Sushi Restaurant?  
Toyoda  
I was a little concerned to hear today’s participants’  
statement of determination to “change Toyota any  
way possible by utilizing what’s learned and obtained  
through this program.”  
There are two key concepts deeply rooted in  
Toyota since its foundation, or even before then.  
Does anyone know what they are?  
Take, for example, sushi. When you go to an authen-  
tic sushi restaurant, are the finished orders just  
waiting in front of the chef? I don’t think so. Each  
piece is made to order. You can’t prepare every  
specification in advance for 10 million customers.  
It’s important to understand what we can’t do. The  
key, then, is trying to shorten lead time.  
4. How President Toyoda Sees  
The most common abnormalities that occurred when  
weaving fabric with automatic looms were when  
thread ran out or broke. The Type G was able to  
detect such abnormalities at a time when there were  
no sensors.  
Just-in-Time  
A phrase that is commonly associated with the concept  
of Just-in-Time is “provide what is needed, when  
needed, in the amount needed.” The key to understand-  
ing Just-in-Time is the idea of “lead time,” the amount of  
7
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Making Ever-better Cars: Product-centered Management  
Why is that? I think it is because Toyota treats  
anything about them. But, he said, if I was  
interested, he would teach me to drive. That  
was the start of my journey, under the new  
nickname Morizo, to becoming a master driver.  
and Corolla, which drove the motorization of  
Japan, as well as the Prius, which created  
the hybrid electric vehicle market. More  
rugged long sellers include the Land Cruiser,  
Hiace, and Probox. The Coaster and Century  
were long sellers, too. Indeed, Toyota boasts  
numerous models that have been beloved by  
customers for decades.  
At the November 2021 Nationwide Toyota  
sports car development as the front line for  
Dealers Convention, President Toyoda  
developing the skills and knowledge that will  
Spoke About Product-centered Management.  
be passed down as well as human resource  
development. For Toyota, sports car develop-  
ment has been like a rite of renewal and  
From there, though a decade late, Toyota  
went on to develop the LFA in the 2010s,  
recapturing the “secret sauce,” that flavor  
unique to Toyota and Lexus cars.  
Over the decades, Toyota has provided  
society with a wide range of products aimed  
at meeting customer needs, beginning with  
the Toyoda Model AA in 1936. Looking back  
on our history of car marking, I see two key  
themes.  
rebirth carried out every 20 years.  
Following this cycle, the next generation of  
Toyota sports cars should have hit the scene  
in the 2000s. They did not.  
Despite this, when Toyota was focusing on  
the number of vehicles sold and making  
vehicles mainly for overseas markets, the  
position of long-selling cars within the  
We went on to revive the 86 and the Supra,  
as well, but all of these were made in collabo-  
ration with outside partners. We still wanted  
to once again make a sports car that would  
be all our own. This dream led to the devel-  
opment of the GR Yaris.  
Around that time, Toyota was growing its  
vehicle sales, mainly outside Japan, and  
pursuing scale expansion. Amid that push,  
the role of its old renewal rite was forgotten,  
and sports cars disappeared from Toyota’s  
vehicle lineup  
The first is “sports cars.”  
Company shifted greatly. The Crown and  
Corolla began to undergo regular model  
changes based solely on an annual schedule,  
while rugged vehicles like the Land Cruiser  
and Hiace no longer had model changes at  
all. These long-selling cars had been beloved  
by customers and an integral part of their  
lives for so long, but now it was considered  
unimportant for them to change or evolve.  
The 1960s were a key era for Toyota’s sports  
cars. This decade saw the birth of many  
sports cars that would eventually achieve  
legendary status, such as the Publica Sports,  
Sports 800, and 2000GT. Then, in the 1980s,  
Toyota launched the Supra, MR2, Celica, and  
Levin/Trueno. In this way, Toyota has created  
sports cars that bring together the most  
cutting-edge technological prowess of the  
era every two decades.  
For years, I have constantly been talking  
about “ever-better car making.” Now, as the  
number of my colleagues taking action with  
me has grown, this has evolved into  
“ever-better car making from a starting point  
in motorsports.”  
I was not the only one who sensed how  
dangerous this was. Our test drivers, in fact,  
felt the danger more keenly than I did. I think  
that feeling was part of why Hiromu Naruse,  
then Toyota’s chief test driver, told me, very  
frankly, that he didn’t want to be preached to  
about cars by someone who didn’t know  
However, I believe that only by constantly  
changing to meet the needs of the times can  
The second key theme is “long sellers.”  
Toyota’s long sellers have included the Crown  
Sports 800  
MR2  
Supra  
GR Yaris  
Publica Sports  
Levin/Trueno  
LFA  
2000GT  
Celica  
8
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
a car be a long seller. We have already begun  
working to reclaim this approach.  
However, creating a new platform and promot-  
ing standardization is not so easy. I found myself  
wishing that Toyota had moved away from the  
one-model, one-platform approach and imple-  
mented platform reforms while its sales volumes  
and revenues had been expanding.  
Offering a full lineup means that we must  
always have people who are passionate and  
responsible about creating cars in all genres,  
from sports cars to commercial vehicles.  
Ensuring this is the true objective of the  
in-house company system.  
Morizo, master driver, and president of Toyoda.  
Wearing these three hats at once, I have  
gone to front lines myself and worked along-  
side my colleagues these past 12 years. I am  
sure that all of that effort shows in our  
products.  
The Vitz, as it was known in Japan, was  
unified under the name Yaris, which had  
taken root overseas, and we expanded its  
lineup to include the GR Yaris and Yaris  
Cross. Similarly, the Corolla lineup saw the  
addition of the Corolla Sport and Corolla  
Cross. Our strategy was to build a lineup  
tailored to current needs while leveraging the  
brand strength of our long sellers.  
During the very difficult time after the 2008  
global financial crisis, when Toyota fell into  
the red and we could not increase unit sales,  
we all had to grit our teeth and work even  
harder. The fruit of this labor was a powerful  
tool—the TNGA.  
The lure of increasing unit sales and revenue  
in the short term is hard to resist. This is why  
we must nurture people and organizations  
capable of focusing and placing the highest  
priority on creating the cars that Toyota and  
society really need.  
By continuing to make ever-better cars, our  
brand will continue to evolve. This is what I  
believe to be the essence of product-  
centered management. It means not aiming  
to be the biggest in the world in terms of  
units sold, but aiming to be the best in town  
by creating better cars that bring smiles to  
customers’ faces.  
Let’s make ever-better cars.”  
I believe that it is precisely because we have the  
TNGA that we are able to restore the sports  
cars and long sellers that for so many years  
have supported the Toyota brand to their proper  
places and tackle the challenge of building  
up their lineups.  
The final pillar is a figure at the top who can  
take final responsibility. It’s embarrassing to  
say so myself, but I think that one thing that  
sets Toyota apart, that it has and other OEMs  
don’t, is a master driver in top management.  
A president who can take responsibility for  
the “flavor” of the products we put out. A  
president who is able to definitively say “no”  
to projects, even ones that our development  
teams have worked hard on, if they don’t  
have that unique Toyota/Lexus flavor.  
This idea was the impetus for the transforma-  
tion of Toyota’s car making. Three pillars  
supported this transformation.  
At first, when I spoke about making ever-  
better cars, few understood me, or tried.  
However, thanks to the support of my  
colleagues who believed in me and to the  
support of our dealers, I think that Toyota’s  
products have slowly but surely changed for  
the better.  
The first pillar, and the first that we took on,  
was the Toyota New Global Architecture  
(
TNGA). To achieve excellent performance in  
The second pillar is the in-house company  
system. A defining characteristic of Toyota is  
its full lineup of diverse vehicles that meet a  
comprehensive range of customer needs.  
the basic functions of a car—propulsion,  
turning, and stopping—a solid platform  
is essential.  
Going forward, we will continue to do our  
utmost to make ever-better cars.  
I hope to convey the heart and the story of  
Toyota, which we put into every product, to  
all our dealers and as many customers as  
possible. Nothing would please me more  
than if that story were to become one of the  
many new stories connecting the hearts of  
our dealers and customers.  
History of Toyota’s car making  
The three pillars of ever-better car making  
Two key words  
1
2
. Platform reforms via the TNGA  
.
In-house company system transforming people  
and organizations  
1
2
. Sports car  
. Long seller  
3. A master driver in top management taking  
final responsibility  
9
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Making Ever-better Cars: From a Starting Point in Motorsports  
up my mind to enter the race. Although four  
months was hardly enough time for the  
engineers to prepare, I safely finished the  
themselves. I think that they came to under-  
stand Kiichiro’s words not just intellectually,  
but in a deeper, visceral way.  
Recently, President Akio Toyoda has often  
been adding “from a starting point in  
motorsports” when using the phrase  
2
4-hour race as well as three subsequent  
“ever-better car making.” He spoke about  
races. For each race, they continued to  
improve the car, making it stronger and faster.  
the idea behind this at the press conference  
announcing the 2022 TOYOTA GAZOO  
Racing drivers and management members.  
The other car is the GR Yaris.  
Come to think of it, it has been 14 years  
since Hiromu Naruse and I drove used  
Altezzas in the 24 Hours of Nürburgring  
endurance race. Racing on the streets  
toughens people up and makes cars stron-  
ger. I want to enable Toyota to make cars  
that way again. That may be what I have  
been working toward all along.  
We made this car for a specific purpose: to  
win the World Rally Championship.  
I think that these words provide the core  
principle of “ever-better car making from  
a starting point in motorsports.” There were  
two cars that led me to this core principle.  
Until now, Toyota has made its race cars by  
modifying its mass-production cars. That was  
the limit of what we could do. The GR Yaris is  
our attempt to flip this approach by designing  
a race car from the ground up. From the  
initial stages of development, we reached out  
to professional drivers to have them drive the  
car. When problems came to light during their  
drives, they were fixed, and then we had  
them drive the car again. Development  
progressed nimbly, and the car evolved into  
one that is fun to drive. As Morizo (my driver  
name), I partnered with this car on the  
Gamagori dirt course for training to hone my  
driving skills.  
In 1952, shortly  
before his death,  
the founder  
Kiichiro Toyoda  
wrote the following.  
In 2009, when I became president, I implored  
our employees to make ever-better cars.  
Since then, I often get asked what kind of  
cars are ever-better cars.  
Kiichiro Toyoda  
I have a certain idea of what makes a better  
car. It’s not necessarily the same as someone  
else’s idea of a better car. What makes a  
better car depends on the driver. It is for this  
reason that cars can only be made in the  
streets and not at a desk.  
The Japanese automobile production industry  
must master the art of manufacturing passenger  
vehicles. In order to test the durability and perfor-  
mance of their cars, companies ought to participate  
in auto races, demonstrate the full performance of  
their vehicles, and compete for superiority. This will  
both lead to progress in their vehicles and spark  
the enthusiasm of automobile fans. Such races  
must not be regarded as a simple matter of curiosity,  
for they are indispensable to the development of  
Japan’s automobile manufacturing industry.”  
I rode in the first of these cars with racer  
Kamui Kobayashi at Gamagori four months  
before entering the Super Taikyu 24-hour  
race. It was while I was in the car that I made  
Drive it, break it, fix it, strengthen it, drive it  
again, and break it again. By repeating this  
process, the engineers not only advanced the  
car’s development, they also changed  
However, back in 2009, not many people  
understood what I meant by this. It’s not  
enough to simply tell someone that the  
1
0
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
streets make the car. I knew I had to show  
them what it means. That’s why I continued  
to take part in the 24 Hours of Nürburgring  
endurance race.  
The other two cars had to be retired from the  
race. After the race, the drivers said to me,  
“We’re sorry it won’t be at the very top, but  
would you stand on the winner’s podium  
with us?”  
There were many things I wanted to learn  
from him, with his knowledge of a wide range  
of cars, including those of Mitsubishi and  
Subaru. We made only one promise to each  
other: to make the Yaris at the end of the  
season the strongest Yaris ever. The team  
kept this promise.  
Now that this team has come together, we  
have at last reached the point where we can  
begin ever-better car making from a starting  
point in motorsports.  
The streets make cars and toughen people  
The difference between first and second  
place podium was a height of about 70  
centimeters. I thought, is this frustration—this  
second-place podium—the highest we can  
reach? I desperately wanted to help the  
drivers stand at the top. I wanted to prove  
that Toyota could make the kind of strong car  
that they would want to drive. I swore to  
myself, standing on that podium one level  
down, that we would change Toyota to be  
capable of the kind of car making needed to  
achieve that, no matter what.  
up” became something of a catchphrase.  
However, changes in car making do not  
happen so fast.  
Our current team principal, Jari-Matti Latvala,  
was a star driver for other teams before  
Toyota returned to the WRC. He was such a  
star, in fact, that I waited in the hotel lobby for  
him to come out when I first went to watch  
the WRC. Since then, he has helped secure  
numerous victories as a Toyota driver, and  
this season, as team principal, became a  
triple crown holder.  
Motorsports is  
a starting point for  
On the front lines, each department was  
focused on its own specialized area of car  
making, and they were not handling the  
overarching car making process as a  
united team.  
ever-better car making  
That was when I first went to Le Mans. It was  
the year after the car driven by Kazuki  
Over the past five years, Latvala has, without  
a doubt, constantly helped make the Yaris  
stronger as both a driver and principal. For  
next year’s WRC, to which Toyota will bring a  
new car, I am sure he will assemble a team of  
professionals that is like a close family and  
hates to lose.  
Motorsports are the starting point for making  
ever-better cars.  
Nakajima, which was in the lead, suffered  
a mechanical failure just before the finish line.  
When I dropped into the pit, the drivers  
talked with me. In a qualifying race, Kamui  
Kobayashi had seized pole position with an  
astounding time. He passed the trophy to me  
while thanking me. It made me want to get  
closer to the drivers and race alongside them.  
That year, we took on another new challenge:  
The World Rally Championship, or WRC.  
We entrusted the task of putting together  
a team from scratch to Tommi Mäkinen. A  
legend himself, having won the WRC four  
times, he knew how to win. However, that  
was not the only reason I asked for his help.  
We will leverage motorsports to make ever-  
better cars, from the top categories driven by  
professional drivers, to customer motorsports  
driven by amateur racing drivers, the sports  
cars driven by our many customers, and  
even down family cars, and beyond that,  
automated driving.  
Recently, I have been deliberately adding  
“from a starting point in motorsports” to the  
phrase “ever-better car making.”  
Racing, however, is hard. That year, only  
Kazuki’s car finished the race, with the team  
coming in 8th overall, and 2nd in its class.  
As for myself, what I know is that I love cars,  
and I love driving.  
For 12 years, people have told us that there’s  
no way that Toyota can realize this kind of car  
making. Now, however, Toyota has finally  
changed, realizing a kind of car making in  
which not only its engineers and mechanics,  
but its professional drivers, professional  
engineers, and professional mechanics all  
work together, as a team, to advance  
car making.  
I am very fortunate to now have others who  
love cars, love driving, and are passionate  
about motorsports working alongside me.  
1
1
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Quickly Adapting to Changes in the Future Is More Important than Trying to Predict the Future  
1
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
(Photo: Noriaki Mitsuhashi/N-RAK PHOTO AGENCY)  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Toyota Strengthens BEV Lineup  
Toyota Reveals Full Lineup  
of Battery EVs: Toyota’s  
Briefing on BEV Strategies  
to Keep Offering Options for  
Everyone (Full Text of President  
Toyoda’s Presentation)  
Initiatives to Achieve Carbon Neutrality: Battery EV Strategies  
On December 14, 2021, Toyota held a briefing on its  
battery electric vehicle (BEV) strategy.  
We are living in a diversified world and in an era in  
which it is hard to predict the future. Therefore, it is  
difficult to make everyone happy with a one-size-fits-  
all option. That is why Toyota wants to prepare as  
many options as possible for our customers around  
the world.  
enabled us to pursue smoothness and maneuverability  
as well as the drivability of a genuine SUV.  
The important thing is determining to what degree we  
can increase a vehicle’s overall energy efficiency, in  
other words how much less energy a vehicle needs  
to run. This is exactly the technology that Toyota has  
been refining for more than 30 years.  
(Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
Toyota announced at the briefing that it is boosting its  
plans for BEV sales in 2030 from 2 million to 3.5 million  
units and that Lexus is aiming for BEVs to account for  
1
00 percent of its sales in Europe, North America, and  
Putting our best efforts into addressing all aspects of  
this question, with this vehicle, we are aiming for  
a power efficiency of 125 watt-hours per kilometer,  
which would be the highest efficiency rate in the  
compact SUV class.  
China by the same year, followed by BEVs accounting  
for 100 percent of its sales globally starting in 2035.  
We believe that all electrified vehicles can be divided  
into two categories, depending on the energy that  
they use.  
For its launch next year, we are preparing for the  
production of the bZ4X at Toyota’s Motomachi Plant  
right this very moment. We will soon begin delivering  
it to our customers.  
The ambitious figures and the array of planned-for-  
launch BEVs on the stage at the briefing led some  
observers to suggest that Toyota, which had been  
viewed by some as not having a positive position on  
BEVs, had changed its policy and shifted to focusing on  
BEVs. However, in his presentation, President Akio  
Toyoda stressed the importance of having diverse  
options. He also shared his sentiments regarding the  
people of the automotive industry.  
One category is that of “carbon-reducing vehicles.” If  
the energy that powers vehicles is not clean, the use  
of an electrified vehicle, no matter what type it might  
The next model is a midsize sedan that meets  
customers’ expectations for a first car.  
be, would not result in zero CO  
2
emissions.  
Furthermore, we are expanding the bZ series lineup.  
(Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
The other category is that of “carbon-neutral vehi-  
cles.” Vehicles in this category run on clean energy  
This midsize SUV has a beautiful silhouette that  
presages a new era for battery EVs. With just a single  
glance, its styling invites you to get in and go for a drive.  
2
and achieve zero CO emissions in the whole  
process of their use. We at Toyota will do our utmost  
to realize such vehicles.  
(Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
Toyota’s part for carbon neutrality  
We also have a large SUV with an optional third row  
of seats that facilitates families experiencing fulfilling  
times together.  
As the opening video ended and the venue lit up, the  
audience could see Akio and five new different types of  
vehicles filling the stage. After presenting the vehicles  
with arms outstretched, Akio began to speak.  
Five Toyota bZs revealed  
Akio  
(Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
Today, we would like to present to you what we have  
been preparing for the future. Let’s start with the  
Toyota bZ series of our dedicated battery EVs.  
Akio  
And, this is the most compact SUV in the series—a  
small battery EV with a comfortable interior designed  
with Europe and Japan in mind.  
Thank you very much for taking time out of your busy  
schedule to join us today. Today, I would like to talk  
about Toyota’s strategy for achieving carbon neutrality—  
particularly our strategy for battery electric vehicles,  
which represent one of the most promising options.  
The Toyota bZ means going “beyond Zero.”  
(
Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
Freedom of movement and fun to drive for all. Our  
goal is not only to reduce CO emissions and other  
2
negative impacts to zero. Our goal goes beyond that.  
What do you think? We will not only add battery EV  
options to existing vehicle models but will also offer  
a full lineup of reasonably priced mass-production  
models, such as the bZ series, to meet the needs of  
all kinds of customers.  
I believe that achieving carbon neutrality means  
realizing a world in which all people living on this  
planet continue to live happily. We want to help realize  
such a world. This has been and will continue to be  
Toyota’s wish and our mission as a global company.  
For the bZ series, we developed a dedicated platform  
for battery EVs to meet the diverse needs of the  
global market.  
The more batteries you add to extend cruising range,  
the bigger, heavier, and more expensive a vehicle  
becomes. Because this SUV is a small vehicle, there  
is something we must be thorough and very particu-  
lar about—power efficiency.  
Akio walked up to the bZ series behind him and began  
to explain the highlights of each vehicle one by one.  
By doing so, we hope to deliver to customers around  
the world the unique and beautiful styling as well as  
fun-to-drive aspects of battery EVs, and the experi-  
ence of a life with battery EVs.  
2
For that challenge, we need to reduce CO emissions  
as much as possible, as soon as possible.  
Akio  
The first model in the lineup is the bZ4X, which we  
recently announced. Jointly developing it with Subaru  
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3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
technology, it has refined its electrification technolo-  
gy. Now, Lexus is embarking on a new chapter.  
aim to create a truly high-performance battery EV.  
chosen lifestyle directions. From that point of view,  
each electric vehicle should be unique and special,  
not only those on dedicated platforms but also those  
related to existing models.  
Offering a full lineup of BEVs  
Akio  
Through battery EVs, we will develop Lexus into a  
brand that offers a variety of experiences harnessing  
performance developments that only a carmaker like  
Lexus could achieve and by honing the craft of  
making ever more personal products.  
Toyota is a global company supported by customers  
around the world.  
Koji Sato, President, Lexus International & Chief  
Branding Officer  
Whether that means building on Toyota’s off-road  
heritage to create new and exciting recreational  
experiences or finding new ways to combine versatility  
with dynamic driving.  
The Toyota brand now offers more than 100 models  
of engine-only vehicles, hybrid electric vehicles,  
plug-in hybrid electric vehicles, and fuel cell electric  
vehicles in more than 170 countries and regions.  
LEXUS ELECTRIFIED  
This is the name of our electrification efforts here  
at Lexus.  
Akio  
Lexus will develop a next-generation battery EV sports  
car that inherits the unique flavor, or secret sauce, of  
performance cultivated via the development of the LFA.  
Commercial-use models such as the e-palette will  
change the face of daily life in the city. But we will  
also challenge smaller size model segments for new  
mobility solutions.  
The Lexus brand has introduced more than 30  
models of engine-only vehicles, hybrid electric  
vehicles, and plug-in hybrid electric vehicles in more  
than 90 countries and regions.  
Extracting the full potential of the vehicle through  
electrification technology—that is what electrification  
means to Lexus.  
(Photo: Noriaki Mitsuhashi/  
N-RAK PHOTO AGENCY)  
We will deliver a unique electrified Lexus that combines  
linear motor acceleration/deceleration, brake feeling, and  
exhilarating handling to further pursue the joy of driving.  
Compact ultra-versatility will open up new and  
exciting possibilities for both work use and for  
youngsters. And, we will take new approaches for  
the smallest segments, such as “Made-for-sharing,”  
where different variations cater to different  
business scenes.  
Furthermore, we will expand the options for carbon-  
neutral vehicles by offering a full lineup of battery EVs.  
Specifically, we plan to roll out 30 battery EV models  
by 2030, globally offering a full lineup of battery EVs  
in the passenger and commercial segments.  
In particular, we believe that the battery EV will  
become the future symbol of Lexus as a model that  
most clearly expresses the evolution of the automobile  
brought about by electrification.  
We will extend the flavor refined this way to other  
models as we evolve Lexus into a brand centered on  
battery EVs.  
Please take a look. This is Toyota’s great battery  
EV lineup.  
And, last, but certainly not least, car fans like Akio  
Toyoda will certainly not be disappointed.  
The latest of these models is the Lexus RZ.  
We can position batteries and electric motors to  
bring more freedom to battery EVs. This freedom will  
allow us to be more attuned to our customers, such  
as by meeting the various needs of different regions,  
the various lifestyles of our customers, and, when it  
comes to commercial vehicles, everything from  
long-distance transport to last-mile delivery.  
The EV era is an opportunity and a chance for more  
variety and more fun!  
A new chapter for Lexus  
The process of strengthening the fundamentals and  
pursuing the Lexus Driving Signature will not change  
even if it is a battery EV.  
With Akio’s arms once again stretched wide, the white  
wall of curtain behind the bZ series cascaded down to  
reveal 11 more vehicles. Akio led the applause standing  
in front of a total of 16 BEVs.  
An EV for you, an EV for me, and an EV for everyone.  
The endless pursuit of the Lexus Driving Signature  
will move to the next stage through development of  
the new sports battery EV.  
Many years of accumulated experience  
gives Toyota a competitive edge  
Akio  
An EV for everyone  
Welcome to our showroom of the future!  
With bold proportions and the low ride height  
essential to a sports car, it will showcase the unique  
driving performance of a Lexus and become a model  
that symbolizes the future of the brand.  
Akio  
First, let’s start with the Lexus brand. Lexus strives to  
be the brand that people who know authenticity  
choose at the end of the day. As brand holder, I  
continue to believe that.  
Simon Humphries, Design Senior General Manager  
The world is becoming ever more diverse. People are  
increasingly confident in making their own choices to  
lead free and enjoyable lifestyles.  
An EV for everyone.” So, what did you think about  
Toyota’s battery EVs?  
The future that we showed you today is by no means  
far away. Most of the Toyota battery EVs that we  
introduced here are models that will be coming out in  
the next few years.  
Acceleration time will be in the low 2-second range  
with a cruising range over 700 km, and, with the  
possible use of solid-state batteries in mind, we will  
Lexus has pursued unique styling and a unique  
At Toyota we believe that truly good products create  
new experiences for the customer, enhancing their  
driving signature, and, as a pioneer in hybrid electric  
1
4
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
in the early 1990s, we also began our development  
of fuel cell electric vehicles, which run on hydrogen.  
In 2002, we introduced the Toyota FCHV to the  
market and went through various demonstrations,  
and in 2008, the vehicle was redesigned into the  
Toyota FCHV-adv. Based on such long-term efforts,  
in 2014, the first-generation Mirai was finally  
launched. Since then, using technologies concerned  
to power other vehicles, such as buses and large  
trucks, our fuel cell electric vehicles have also  
continued to evolve.  
And, in the area of energy, Toyota Tsusho has been  
working to secure renewable energy sources such as  
wind and solar power generation for more than  
30 years.  
It is not us but local markets and our customers who  
decide which options to choose.  
We aim to achieve global sales of 3.5 million battery  
EVs per year by 2030.  
As for why we try to keep so many options open, in  
terms of business management, one might think it  
would be more efficient to focus on fewer choices.  
Lexus aims to realize a full lineup of battery EVs in all  
vehicle segments by 2030 and to have battery EVs  
account for 100 percent of its vehicle sales in Europe,  
North America, and China, for a total of 1 million units  
globally. And, it aims for battery EVs to make up 100  
percent of its global vehicles sales in 2035.  
Furthermore, at manufacturing plants, we are aiming  
to achieve carbon neutrality by 2035 by continuously  
making steady improvements toward reducing  
energy use and by expanding the use of innovative  
production engineering technology.  
However, we believe that quickly adapting to chang-  
es in the future is more important than trying to  
predict the future, which is uncertain. That is why we  
want to keep options available for our customers until  
the right path is clear.  
With that, Akio began to explain Toyota’s BEV initiatives  
in more detail.  
In this diversified and uncharted era, it is important to  
flexibly change the type and quantity of products  
produced while keeping an eye on market trends.  
In the area of batteries, Toyota has continued to  
research, develop, and produce batteries in-house  
for many years.  
We at Toyota aim to be a company that contributes to  
the global environment, seeks to bring happiness to  
people, acts, and stays close to its customers. To sum  
it up, we want to become a company that produces  
happiness for all, for both individuals and society.  
He walked the audience through all areas, starting with  
Toyota’s history of vehicle and battery development and  
the securing of resources and energy to achieve carbon  
neutrality, going even so far as to introduce initiatives  
undertaken at Toyota’s manufacturing sites.  
We believe that the reduction in lead times and  
high-mix, low-volume production methods that we have  
cultivated through the Toyota Production System, along  
with the steady efforts of Japanese manufacturing, will  
enable us to be competitive going forward.  
In 1996, we established what is today Prime Earth  
EV Energy. While refining our technologies related to  
nickel-metal hydride batteries, we started accelerating  
the development of lithium-ion batteries in 2003.  
Akio  
We want to pass on an ever-better future for the  
children of today and those who will come after  
them. We always want the future to be brighter.  
To achieve these goals, we have invested in various  
areas for a long time.  
Furthermore, since establishing our Battery Research  
Division in 2008, we have been advancing research on  
solid-state batteries and other next-generation batteries.  
We will continue to advance initiatives in all areas  
together with many of our partners.  
In the area of vehicle development, in 1997, Toyota  
launched the Prius, the world’s first mass-production  
hybrid electric vehicle. But in fact, our development  
of battery EVs had started before that.  
I believe that the future is something to be created by all  
of us together. Japan’s automotive industry is home to  
our 5.5 million colleagues who have supported  
Japanese manufacturing and mobility. And, we have  
many more colleagues throughout the world.  
The future is something to be created by  
Last year, we established Prime Planet Energy &  
Solutions to accelerate integrated efforts in the  
battery business.  
all of us.”  
Akio, who had thus far detailed Toyota’s sincere ap-  
proach to BEVs, concluded with a reiteration of Toyota’s  
reasons for adhering to a multi-solution strategy and his  
thoughts on an automotive industry united in striving to  
achieve carbon neutrality.  
In 1992, we established the Electric Vehicle  
Development Division, and we introduced the RAV4  
EV to the market in 1996.  
Over the past 26 years, we have invested nearly  
1 trillion yen and produced more than 19 million  
batteries. We believe that our accumulated experience  
is an asset that gives us a competitive edge.  
After that, in the 2000s, we demonstrated our small  
prototype commuter EV “e-com” in various places.  
Furthermore, in 2012, we introduced the “COMS,” an  
ultra-small EV, and the small “eQ” EV. Thus, we have  
long explored the potential of battery EVs. We  
Going forward, we will increase our new investment  
in batteries from the 1.5 trillion yen announced in  
September 2021 to 2 trillion yen, aiming to realize even  
more-advanced, high-quality, and affordable batteries.  
Akio  
Energy plays a critical role in achieving carbon  
neutrality. At present, the energy situation varies  
greatly from region to region. That is exactly why  
Toyota is committed to providing a diversified range of  
carbon-neutral options to meet whatever the needs  
and situations might be in every country and region.  
If we all take action with unity of mind and with will and  
passion, we will be able to leave behind many smiling  
faces and a beautiful Earth for the next generation.  
launched the “C+pod” and “C+walk” this year and  
have accelerated the development of battery EVs,  
including the “e-Palette,” that provide people with  
freedom of movement in various scenes. At the same  
time that we started our development of battery EVs  
When it comes to natural resources, Toyota Tsusho  
began conducting lithium and other surveys as early as  
2006 and has been working to secure stable sources.  
That is what I believe and that is what we will achieve.  
1
5
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Answers to Five Questions  
about Toyota’s BEV Strategy  
Report on Media Q&A Session)  
“Do you like  
battery EVs?” Akio  
Toyoda’s Response  
(
Lexus becoming a brand dedicated to BEVs, and the  
growing investment of 4 trillion yen for BEVs (including  
Why not pursue 100% BEVs across the  
whole lineup?  
2
trillion yen for batteries).  
— As the largest carmaker in the world, why are  
Akio  
you targeting only 35% of your current volume? Why  
not go for 100% or 50% as many of your competi-  
tors have now done? Why is 3.5 million sufficient in  
your mind?  
We have made the utmost efforts toward achieving  
carbon neutrality, and we will continue to do so  
going forward.  
Regardless of the powertrain, whether it is a BEV or an  
FCEV, what matters in achieving carbon neutrality is the  
energy that the vehicle uses. Whether the vehicles are  
carbon-reducing vehicles or carbon-neutral vehicles will  
rely on the energy situation in each region.  
Toyota is a global company with a full lineup of  
products. We have seen changes in the energy  
As Akio pointed out at the beginning, the upwardly  
revised figure of 3.5 million in global BEV sales is  
equivalent to the entirety of sales of one of the top ten  
automakers in the world.  
situation in each country, and the way customers use  
vehicles is now more diversified.  
(
Photo: Noriaki Mitsuhashi/N-RAK PHOTO AGENCY)  
It is the customers, not us at Toyota, who choose  
which options to use. So, no solution will come from  
our decision alone.  
However, in many cases, the assessment of an auto-  
maker’s attitude toward BEVs is not based on the  
absolute number of vehicles sales, but on the sales ratio.  
This question reflects precisely that attitude.  
At COP26 this year, various countries’ policies  
became clear. As that happened, after revisiting our  
plan, we realized that we could achieve a higher level  
of carbon-neutral vehicles sales than previously  
anticipated. We came up with this revised figure after  
that discussion and plan review.  
At a Q&A session with the media after his presentation,  
President Akio Toyoda talked about his ideas.  
What we will do is have a wider range of available  
options, and to make serious efforts across our full  
lineup of options.  
Why the BEV sales forecast for 2030 has  
been revised upward  
Akio  
With a baseline toward 2030, we want to increase  
our carbon-neutral vehicles as much as possible.  
— What is the reason for this large upward revision  
We want to be prepared to meet customer and  
market expectations and preferences more quickly,  
and more flexibly. In this way, I believe that we will be  
able to enhance our competitiveness, and that is  
how we will be able to survive.  
Is this a strictly BEV shift or part of  
a multi-solution approach?  
from 2 million BEVs by 2030 to 3.5 million?  
However, the energy situations in individual countries  
have had a big impact on the path to carbon neutrali-  
ty. That is the reality. I hope you understand that this  
is something Toyota cannot control.  
The 2 million units mentioned by the reporter was the  
initial forecast Toyota announced back in May, and was,  
in fact, sales of zero emission vehicles, including fuel cell  
electric vehicles. Only seven months later, Toyota added  
— Going forward, are you going to focus more on  
BEVs amid a variety of other electrified vehicles? Or  
has your strategy of BEVs being just one part of a  
full lineup of electrified vehicles not changed?  
Just because I drive a hydrogen-powered vehicle, it  
does not mean that I am prioritizing it over others.  
If no sufficient clean energy and charging infrastruc-  
ture exists in a market, expanding our BEVs and  
limiting options for customers will result in inconve-  
niencing customers. We want to avoid that.  
1
.5 million more BEVs and revealed a new guideline of  
.5 million BEVs.  
3
Toyota’s consistent approach to vehicle electrification has  
been a multi-solution strategy. The company has committed  
to offering a wide variety of products to meet diverse  
customer needs, instead of focusing on fewer choices.  
All of our employees, suppliers, affiliated companies,  
and the 5.5 million people working in the automobile  
industry, have made serious efforts in Japan in  
achieving carbon neutrality.  
Akio  
Firstly, the 2 million units of zero emission vehicles is  
a significant amount. Most Chinese automobile  
companies record roughly the same amount of  
vehicle sales. To that, we are adding another 1.5  
million to make it 3.5 million, which is equivalent to  
the volumes sold by Daimler, PSA, and Suzuki  
Motors if they made all their vehicles BEVs.  
When we look at the global market, it is a diversified  
market that we are dealing with, and that is what  
Toyota does.  
In his presentation, Akio clarified his stance on the  
multi-solution strategy, saying “we want to keep options  
available for our customers.”  
For us at Toyota, we do business and operate  
worldwide, and the full lineup of products is key in  
our global operation. I hope you see that we are  
putting serious effort into this approach.  
Diverse solutions are necessary in diverse situations.  
Also, the best solution for the average person will not  
necessarily be the best solution for everyone.  
However, one might think that Toyota is shifting its focus  
to BEVs, with the upward revision of the sales volume,  
1
6
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Therefore, as we are in uncharted territory with lots of  
uncertainty about the future, we want to take a  
diversified approach. That is why we have worked  
hard to maintain our full lineup. We will take on this  
challenge together with our suppliers, affiliated  
companies, and partners. That is what I would like  
you to understand.  
Many of the cars that you are looking at right now will  
be launched on the market very soon.  
The future is not determined by the goals presented  
by leaders, but by purposeful passion and action.  
Toward the goal for carbon neutrality in 2050, the  
view of the future in 2050 will change depending on  
how we act in the next few years, five years, and ten  
years, and we want to make the change happen.  
we do? If that’s the case, I would like to ask them to let  
us know what would improve their evaluation.  
Looking at the run up to 2030, what we present  
today will be a good tool to start discussions and  
take action with various stakeholders while leaving  
room to imagine more what the next 8 years will be like.  
Things look differently if we go by percentage or by  
absolute numbers. Vehicles are for individual custom-  
ers. One vehicle, for one customer. It’s not a percent-  
age business, it’s the absolute numbers that we want  
them to look at when evaluating.  
The future will not suddenly emerge from the present;  
rather, the future will be created by the accumulation  
of present moments as they become the past. We  
hope that you will allow us to leave many options  
open in this process.  
Toyota vehicles are used all over the world to fill various  
needs, not just for one particular market or one  
specific need.  
By presenting a guideline in the product planning  
area, we will be able to examine the potential impact  
on our suppliers or our production plants.  
No matter how many vehicles we sell, we will make  
and deliver them to customers one by one,  
without compromise.  
It is not true that we are not fully committed because  
our goal is not 100%. We hope you will understand  
that we would very much like to continue our work in  
this industry.  
Thoughts on preserving jobs  
As the chairman of JAMA, I have warned that the  
jobs of 1 million of the 5.5 million people employed in  
the automotive industry would be lost if new car sales  
in Japan become 100% BEVs. At that time, various  
companies came out with some vague target  
numbers and not any specific figures or road maps  
to achieve them.  
Whatever powertrain it is, or whatever type of BEV it  
is, Toyota and Lexus vehicles should continue to offer  
the value of fun to drive. We will continue to make  
products with the unique character of Toyota and  
Lexus that makes customers happy.  
—— Your suppliers are closely watching this  
announcement, since some of them could face major  
impacts. What are your thoughts on employment  
within the industry?  
Evaluation by environmental groups and  
the future of engines and BEVs  
—— An environmental group put Toyota at the  
bottom of the climate action rankings. Let me ask  
you again. What is Toyota’s position on BEVs? Also,  
what is the future plan for engine development?  
Since the end of last year, in his other role as chairman  
of the Japan Automobile Manufacturers Associations  
We will continue to take proactive action for carbon  
neutrality. In a world where there is no right answer,  
we are committed to solving problems with a wide  
variety of options. We hope you understand that we  
are working really hard on every option.  
But recently we have seen more concrete plans for  
the near-term future from different OEMs. Now, at  
Toyota, we’re also coming up with very concrete  
plans including for models to be launched. We’ll have  
a renewed discussion based on this.  
(
JAMA), Akio has pointed out that the rapid shift to BEVs  
would lead to risking automotive jobs.  
Last month, one environmental group ranked Toyota the  
lowest in its climate action ranking of automakers, which  
has become a major topic of discussion.  
The question was about whether he has changed his  
stance on the employment issue as he announces this  
enhancement of Toyota’s BEV strategy. Akio responded  
to this question, expressing his passion for suppliers  
and, by extension, the automotive industry.  
The automotive industry accounts for 75% of the  
components procured from suppliers and there are  
tier one, tier two and tier three suppliers supporting  
the industry. Even if we emphasize the importance of  
keeping many options available, that change  
becomes a critical issue for suppliers who have until  
now produced only engine-related parts.  
From early on, Toyota has been making more efforts to  
promote more fuel efficient engines and electrified  
vehicles, including hybrid electric vehicles, to reduce CO  
emissions more than any other automaker. Currently,  
Toyota is in the most advantageous position to comply  
with strict fuel efficiency regulations, but the company  
received this unfortunate ranking.  
2
Akio  
First of all, it is the market and customers who decide  
which carbon-neutral options to choose. This is the  
premise here.  
We shouldn’t just say that it changed because the  
market chose it. I would like to make the automotive  
industry such that the people and companies who  
have been doing a certain business for a long time,  
no matter what kind of work they do or the size of  
the company, will not be disappointed about their  
lives and we will continue to show respect for their  
meaningful work.  
The numbers related to carbon neutrality that we  
have heard so far are goals for 2040 or 2050.  
Akio explained Toyota’s commitment to car manufacturing.  
(Photo: Noriaki Mitsuhashi/N-RAK PHOTO AGENCY)  
Akio  
We don’t want to be a company that sets an appeal-  
ing target but doesn’t bother trying to achieve it  
when the announcement is done. What we are  
announcing today is a bit more in the near term.  
It is their ranking, so we take it seriously, but if we are still  
not considered proactive toward BEVs with our 3.5  
million BEVs and 30 new models to come, what should  
The speakers stressed the importance of Toyota’s  
multi-solution strategy while strengthening BEVs. This  
1
7
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
represents not only Toyota’s way of fighting for the future,  
but also its history of listening to customers and  
responding to their needs.  
cars with wild flavors such as the smell of gasoline and  
a lot of noise.”  
I think you saw my honest feeling. Of course, I  
support BEVs in terms of business, but the question  
is whether I support them as driver Morizo.  
But over the past several years, starting with our  
Toyota New Global Architecture (TNGA) initiatives, we  
have made steady improvements in the vehicles’  
basic frame, chassis, and body rigidity, under the  
banner of “let’s make ever-better cars.”  
As part of Toyota’s endeavor in expanding options for  
carbon neutrality by 2050, from May of this year, he  
himself has taken the wheel of a hydrogen-powered  
vehicle in the Super Taikyu Series races.  
In other words, it is the result of Toyota’s commitment  
to diversity.  
I’m a master driver, and in the training I went through  
back in the day, I always drove an FR vehicle.  
We also opened the Shimoyama proving ground, and  
we are now testing and developing cars under these  
tough conditions.  
Toyota is now moving with all its power toward carbon  
neutrality while leaving no one in the industry behind, and  
without giving up on any technology that still has potential.  
But now I participate in rally races and the Super  
Taikyu races. In these motorsports, I now drive  
a four-wheel drive vehicle as well. My sensibility as  
a master driver has changed with these vehicles.  
From the perspective of fostering environmentally friendly  
technology, Akio sends enthusiastic encouragement to  
the team that has been competing in the 24 Hours of Le  
Mans and the WEC (FIA World Endurance  
With this environment, I think we are now at a point  
where we can develop safer and faster vehicles with  
more fun-to-drive aspects. I look forward to develop-  
ing such BEVs as well moving forward.  
What has been, and will continue to be, at the center of  
Toyota’s full-lineup strategy is a strong will to leave no  
one behind.  
Championship) with Toyota’s hybrid system from 2012.  
I now think that electric motors have higher efficiency  
than gasoline-only-powered vehicles. If we have a  
good four-wheel drive platform, it can become an FF  
vehicle or an FR vehicle through control technology.  
With that in mind, Akio, either as a Master Driver of  
Toyota or driver Morizo, has not shown a moment in  
which he enthusiastically enjoys driving BEVs.  
“Do you like battery EVs?”  
That’s why it’s not just a business matter anymore.  
Even as driver Morizo, I have strong expectations for  
and a desire to give my feedback to our development,  
such as “making this kind of car would be fun” or “as  
an automaker we want to create autonomous driving  
that is unique, even in an era of autonomous driving.”  
During the question and answer session, there was a  
scene in which President Akio Toyoda revealed his  
honest thoughts.  
So, with that kind of control technology, I think  
Morizo will be able to drive fast and safely on any  
circuit or rally course.  
As most of the reporters asked questions to delve into  
the company’s BEV strategy, this straightforward and  
personal question thrown to Akio put a smile on his face,  
making him admit that “it’s a great question.” Akio  
responded as follows.  
—— I was quite surprised with today’s announce-  
Nori-san (rally driver Norihiko Katsuta) has won the  
All-Japan Rally Championships this year. The  
professional drivers of ROOKIE Racing are very active  
in various motorsports circuits.  
ment, but what I want to know more about are  
President Toyoda’s true feelings about BEVs.  
We will continue to make serious efforts in BEVs and  
other powertrains such as fuel cell electric vehicles,  
hybrid electric vehicles, and gasoline-only vehicles  
that have exciting sounds.  
Akio  
I think you have a lot of aspirations for hydrogen and  
hybrids, and your true thoughts have been made  
public on many occasions, but for battery EVs,  
I think it’s more like “here, we’re doing it”—kind of  
a business-like presentation.  
If I have to answer, honestly, in the past I was not  
interested in Toyota’s BEVs, but I am getting interested in  
the BEVs that we are now developing for the future.  
Those driving skills of professional drivers are  
reflected in our vehicles to make them safer and  
more fun-to-drive. I have such expectations.  
I’m still quite serious about them as Morizo and as  
the president of Toyota. We’re working with our  
colleagues and partners very seriously in all of these  
fields. We want to provide customers with vehicles  
that can make them happy.  
After improving my driving skills, I test-drove a battery  
electric Toyota 86 for the first time here at MEGA  
WEB. The comment that I gave after my test drive  
was that “it’s an electric vehicle.”  
At the same time, this platform has enabled us to  
make vehicles that allow amateur drivers like me to  
enjoy driving on various roads, however rough,  
whether it’s a mountainous road or snowy road or  
whatever. This is a big change in our company.  
I want to clarify this. Personally, President Toyoda,  
do you like BEVs or not? If it’s difficult to respond as  
the president of the company, you can respond as  
driver Morizo.  
This comment could only come from Akio, who takes the  
wheel himself and is responsible for the driving feel of  
Toyota vehicles as Master Driver and Morizo. “We will  
continue to make ever-better cars with BEVs” —this  
might be the very message that he wanted to convey the  
most to car enthusiasts.  
We have the Lexus brand and the Toyota brand, and  
we are an OEM pursuing distinctiveness in each  
brand. But when it comes to BEVs, the car becomes  
more like a commodity.  
Akio is known to be a petrolhead. During a talk session  
at the Tokyo Motor Show 2019, while showcasing  
Toyota’s future concept cars at the venue, he shared his  
honest feelings toward engine vehicles, saying, “I like  
Control technology plays a key role there, but it alone  
can’t push major improvements. If we try to create  
driving flavor only through control technology, it’s like  
adding crispy tempura to overcooked noodles.  
1
8
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Integration with Vehicles—  
The Strengths of Toyota’s Battery  
Development Strategy  
Initiatives to Achieve Carbon Neutrality: The Development and Supply of Batteries  
As for batteries for HEVs, we have been continu-  
ously upgrading nickel-metal hydride batteries and  
lithium-ion batteries, taking advantage of their  
respective characteristics. In particular, we took on  
the challenge of developing a bipolar structure in the  
course of creating a nickel-metal hydride battery to  
be installed in the Aqua, which underwent a full-scale  
redesign completed in July 2021, and have become  
the first in the world to commercialize a battery of this  
kind as an onboard battery for driving. Compared to  
the batteries used in the previous generation of  
the Aqua, the output density has been doubled,  
giving the car a powerful acceleration sensation.  
We are currently engaged in development aimed at  
creating more-advanced lithium-ion batteries by the  
second half of the 2020s.  
Striking a Balance among Five Factors  
Toyota’s Efforts for Batteries That Enable  
Peace of Mind  
Blazing a Path toward the Future of  
Electrified Vehicles through the Integrated  
Development of Batteries and Vehicles  
To develop batteries that our customers can use  
with peace of mind, we focus on producing  
batteries that stand out for their “safety,” have  
“long service life,” boast “high-level quality,” and  
are “good yet affordable” as well as capable of  
“outstanding performance.”  
For example, a longer service life affects a  
vehicle’s residual value. In terms of cruising range,  
high energy density and high-level performance  
are also necessary. On the other hand, over  
emphasis on a fast charging speed may increase  
the danger of overheating or even fire and thus  
decrease battery safety.  
This concept has remained unchanged since  
batteries were installed in the first-generation  
Prius, and it applied to all the batteries in all of our  
electrified vehicles.  
Although Toyota is committed to balancing the  
five factors, too much emphasis on one could be  
detrimental to the others. That’s why we believe  
that the integrated development of batteries and  
vehicles is essential.  
How batteries are used depends on how the  
vehicles in which they are installed are used. For  
example, the environments in which vehicles are  
operated differ according to each vehicle’s mode  
of use, for example, if it is being used as a taxi or  
for commuting, as well as geographic location,  
and these factors will affect such conditions as  
charging frequency and battery temperature.  
Accordingly, we carry out mock driving tests that  
assume a diverse range of vehicle usage in order  
to obtain data on actual usage environments and  
provide feedback to inform the evaluation and  
design of batteries.  
Here, we introduce three examples of the effort  
required to produce batteries that can be used  
safely, using lithium-ion batteries as the focus of  
our explanation.  
Toyota’s Plans for a Full Lineup of Batteries  
While promoting a full lineup of electrified vehicles,  
we have also been developing and manufacturing  
a full lineup of batteries. These development  
efforts are organized by type of electrified vehicle.  
For HEVs, our focus is on power output, or in  
other words, instantaneous power, while, when it  
comes to PHEVs and BEVs, our focus is on  
capacity or what can be called “endurance.”  
The first example is about our pursuit of safety.  
It is known that each battery cell shows signs of  
localized abnormal heat generation during spirited  
driving or other driving that places a large load on  
the battery. By analyzing the phenomena occur-  
ring inside the battery and conducting a vast  
number of model experiments, we have been able  
to clarify the effect of driving style on the battery,  
as well as the mechanism of this effect. Based on  
the results, we have been able to detect signs of  
abnormal local heating of cells through multiple  
monitoring of voltage, current, and temperature of  
individual cells, blocks of cells, and the entire  
battery pack. The battery is then controlled to  
prevent abnormal heat generation. We adhere to  
our concept of ensuring safety, security, and  
reliability right down to the local areas within each  
battery when it comes to BEV systems.  
The second example is our commitment to long  
service life. We have applied the technologies that  
we have cultivated through the development of  
batteries for HEVs to PHEVs, and the batteries in  
the C-HR BEV have a much higher capacity  
retention rate after 10 years than the batteries  
hitherto used in our PHEVs. Furthermore, for the  
Toyota bZ4X, which is scheduled to be launched  
in mid-2022, we have set a target of 90 percent  
endurance performance,* which is one of the  
highest in the world, and we are currently finalizing  
our development efforts to achieve it.  
Bipolar Nickel-metal Hydride Battery  
In the new Aqua—the world’s first use as  
a vehicle drive battery  
Battery stack  
Doubled  
power density  
Battery stack  
Battery  
module  
Battery module  
Conventional  
structure  
Bipolar  
structure  
Current collector  
Anode  
Separator  
Cathode  
Case  
Taking up the challenge of innovating battery structure for more powerful acceleration  
Power density doubled from the conventional batteries for the Aqua  
LCA (Life Cycle Assessment)  
To determine the balancing point of the five  
factors discussed above, it is necessary to obtain  
driving data that includes driving conditions and  
usage environments, find out what the conditions  
would be like if batteries were used instead, and  
repeatedly verify what is happening inside the  
batteries. Such steady and earnest efforts for both  
batteries and vehicles are the secret behind  
Toyota’s advantages.  
* This represents a target value for a model in the development process  
and does not indicate the performance of vehicles to be released. In  
addition, the figure applies only to a vehicle that has operated for 10  
years or been driven 150,000 miles (240,000 kilometers).  
What Is Carbon Neutrality  
With regard to industrial  
products, for example,  
carbon neutrality means  
Battery recycling  
Battery recycling  
Battery collection  
Battery reuse  
The third example has to do with our efforts to  
achieve high-level quality. If metallic foreign matter  
enters a battery during the manufacturing process  
and causes a direct electrical connection between  
the anode and cathode, the possibility of product  
failure increases. To address this issue, we con-  
firm the shape, composition, size, and possible  
effect on endurance of every piece of foreign  
matter that could enter during the manufacturing  
reducing CO  
2
emissions to  
MATERIAL  
PART  
Well to Wheel  
zero throughout the  
Vehicle driving  
Tank to Wheel  
product life cycle, starting  
from the procurement of  
raw materials, manufactur-  
ing, and transportation  
through use, recycling,  
and disposal.  
Materials  
Parts  
manufacturing  
Vehicle  
production  
Disposal  
Energy  
Fuel production  
Well to Tank  
Renewable energy Thermal power  
generation  
generation  
1
9
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
process, and we clarify how that item may affect  
the battery. Based on this analysis, we are  
extremely attentive to the size and shape of  
foreign matter, and we are managing processes in  
a way that is aimed at preventing the generation  
or entry of relevant foreign matter.  
Using Solid-State Batteries Starting  
with HEVs  
times. In June 2020, we built a vehicle equipped  
with all-solid-state batteries and conducted test  
runs on a test course to obtain driving data. Based  
on that data, we continued to make improvements,  
and in August 2020, we obtained license plate  
registration for vehicles equipped with all-solid-state  
batteries and conducted test drives.  
In the course of the development process, we  
discovered that the fast movement of ions within  
all-solid-state batteries could possibly enable  
them to achieve higher output. On the other hand,  
it was revealed that these batteries tend to  
deteriorate faster due to the formation of gaps  
within the solid electrolyte, posing an issue of  
shorter service life. Therefore, we need to continue  
development, mainly of solid electrolyte materials.  
We will start the introduction of all-solid-state  
batteries with those for HEVs as these vehicles  
require high output. We have also accumulated  
a wealth of know-how regarding HEVs. We will  
release these batteries to the market as soon as  
possible in order to gain customer feedback and  
continue to improve them.  
Flexible Battery Supply  
With the rapid expansion of EV usage, we are  
working to build a flexible system that can stably  
supply the required volume of batteries at the  
required time while meeting the needs of various  
customers in each region around the world.  
To this end, we will establish needed technologies  
by conducting a certain amount of in-house produc-  
tion in the pursuit of our battery development  
concept of achieving batteries that can be used with  
peace of mind. We will then cooperate and  
collaborate with partners who understand and will  
put into practice our concept. We will also proceed  
with discussions with new partners in some regions.  
Our approach to production within the Group  
can be described as “starting up using small basic  
units.” This approach draws on lessons learned  
from the global financial crisis. It is difficult to  
notice latent risks when production is growing.  
Because of this, we have to take a risk-controlled  
approach to growth based on Toyota’s philosophy  
of “making only what is needed, when it is need-  
ed, and only in the amount needed.”  
In the near future, the energy density of conventional  
lithium-ion batteries per unit of weight is expected to  
see its peak. Accordingly, vigorous efforts are now  
under way to develop next-generation lithium-ion  
batteries, aiming to achieve longer service life,  
greater energy density, more compact size, and  
lower costs. At Toyota, we push ahead with the  
development of such batteries by employing the  
following three approaches.  
For liquid batteries, which use liquid electrolyte,  
we are taking on the challenge of realizing “mate-  
rial evolution” and “structural innovation.” At the  
same time, we are aiming to commercialize  
all-solid-state batteries that employ solid electro-  
lyte instead of liquid electrolyte. As such, our  
wide-ranging development efforts are aimed at  
creating three types of batteries, and by the  
second half of the 2020s, we hope to improve the  
characteristics of each type so that we can provide  
batteries that can be used with peace of mind.  
With regard to all-solid-state batteries, we  
Halving Battery Costs through the Integrated  
Development of Vehicles and Batteries  
To popularize BEVs, we strive to reduce costs via  
the integrated development of vehicles and  
batteries to provide BEVs at a reasonable price.  
To start with, we aim to reduce the costs of  
batteries themselves by 30% or more by develop-  
ing materials and structures. Then, for the vehicle,  
we aim to improve power consumption, which is  
an indicator of the amount of electricity used per  
unit of distance, by 30%, starting with the Toyota  
bZ4X. Improved power efficiency leads to reduced  
requirements for battery capacity, which will result  
in a cost reduction.  
Through this integrated development of vehicles  
and batteries, we aim to reduce the battery cost  
per vehicle by 50% compared to the Toyota bZ4X  
in the second half of the 2020s.  
promote development aimed at achieving higher  
output, longer cruising range, and shorter charging  
For example, the production of all-solid-state  
batteries will start with batteries for HEVs, which  
Technologies Supporting Full Lineup of  
Electrified Vehicles  
Toyota Concept for Battery Development  
Next-generation BEVs  
Universally applied to HEV, PHEV, BEV and FCEV batteries  
1996  
2012  
2019  
To be  
Core electrification  
technologies  
FCEV  
launched by  
mid-2022  
Security  
Fuel cell  
stacks  
High-pressure  
hydrogen  
tanks  
Long  
service life  
High level  
of quality  
Safety  
RAV4 L EV  
RAV4 EV  
C-HR/IZOA  
TOYOTA bZ series First model: Toyota bZ4X  
BEV  
PHEV  
HEV  
Electric motors  
Batteries  
Aiming to create safe batteries that can be  
used with peace of mind always and for their  
entire lifetime, have high resale value, and  
contribute to the building of  
A unique Toyota BEV that utilizes technology cultivated through years of HEV development  
Chargers  
a resource-recycling society  
Battery Cost Targets: Integrated Vehicle-battery Development  
Engines  
Affordable,  
high-quality  
products  
High-level  
perfor-  
mance  
Battery development  
Greater than 30%  
Vehicle development  
30% improvement in power  
C-HR/IZOA  
TOYOTA bZ4X  
Future BEVs  
efficiency = 30% reduction  
in battery capacity  
Power control  
units  
reduction in cost of  
a single battery  
Giving electrified vehicles meaning  
through dissemination  
Power efficiency 30% kWh/km  
(30% cost reduction)  
Increasing customer choice  
• Development of low-cost materials: cobalt-free, nickel-free, and  
new electrode materials  
Achieve the following by utilizing and developing technologies  
cultivated through the production of 18.1 million electrified vehicles:  
2
CO -free fuel  
• Manufacturing process innovation: New development of battery  
manufacturing processes and battery material processes  
Reduction of vehicle driving resistance to suit electrified vehicles  
Further expansion of energy regeneration  
New structure: Integrated structure of battery cells and packs to  
match the vehicle  
• Evolution of battery control model: Fuller use of battery capacity  
with focus on safety, security, and long service life  
Highly balancing 5 factors to  
provide reliable batteries  
Optimal energy/thermal management of entire vehicle and  
components  
e-fuel Biofuel  
Optimally efficient design and control of entire powertrain system  
2
0
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
we have been developing for years and that  
According to a Toyota estimate, the CO  
2
hearts during and after driving, if not from the  
moment when they first catch sight of it.  
testing of this new FC truck in actual cargo  
transport operations.  
require a small battery volume, rather than building  
a massive production line for batteries for BEVs,  
which require a larger volume of batteries. This will  
not only enable us to accelerate the release of the  
products but also position us to better focus on  
improving manufacturing technologies. Moreover,  
Toyota’s strategy of “starting up using small basic  
units” is also meant to enable the company to  
swiftly respond to changes arising from the arrival  
of a new technology, which often occurs in the  
course of a product cycle when the manufacturing  
costs for the old model come down and stabilize.  
emissions reduction effect of three HEVs is  
equivalent to the reduction effect of one BEV.  
Accordingly, the 18.1 million HEVs sold to date  
Moreover, Toyota aims to become a fuel cell  
(FC) system supplier supporting the realization of  
a hydrogen-powered society. In line with this aim,  
we provide a variety of business operators with a  
compact FC system module package that we  
have developed. This package consists of FC  
stacks for the second-generation Mirai, which  
boast higher performance, as well as air supply,  
hydrogen supply, cooling, power control and  
other FC system-related parts.  
In North America, we have unveiled a new  
prototype for an FC commercial heavy-duty truck  
that uses the second-generation FC system  
installed on the new Mirai. This truck boasts  
considerably improved performance, including  
more powerful acceleration and flexible driving  
response. Furthermore, having attained  
Utilizing “e-Fuel” Made of Hydrogen  
2
are equivalent to the CO reduction effect of  
introducing to the market about 5.5 million BEVs.  
The volume of batteries for HEVs that we have  
produced so far is the same as that of the batteries  
installed on about 260,000 BEVs. In other words,  
we can say that the batteries needed for 260,000  
Toward achieving carbon neutrality, we are also  
considering a revolutionary approach expected to  
enable us to drastically curb CO emissions  
2
through the combination of such “carbon-neutral  
fuel” as “e-Fuel” made of hydrogen and biofuel,  
with high-efficiency engine and motor technolo-  
gies. Not only is the above approach practicable  
via the use of existing infrastructure, it could help  
us reduce CO emissions from all types of vehi-  
2
cles currently being used.  
For example, when gasoline vehicles are fed  
gasoline mixed with a certain amount of “e-Fuel,”  
2
the volume of their CO emissions declines to  
a level on par with emissions from HEVs. The mix  
of “e-Fuel” in gasoline will similarly curb the volume  
BEVs have been used to achieve the CO  
2
emissions reduction effect of 5.5 million BEVs.  
Developing FCEVs to Realize  
an Ideal Vehicle  
Batteries for 260,000 BEVs Can Reduce  
CO  
2
Emissions 20 Times More if Used  
in HEVs  
In the field of fuel cell electric vehicles (FCEVs), we  
released the completely redesigned Mirai in  
Since the introduction of the first-generation Prius  
in 1997, Toyota has also introduced PHEVs,  
FCEVs, and BEVs, while improving their perfor-  
mance. Over the course of more than 20 years,  
our cumulative sales of HEVs have reached 18.1  
million units as of July 2021.  
December 2020. Premised on the use of an FCEV  
system, the development of the second genera-  
tion Mirai was promoted to deliver a futuristic  
premium car that will be genuinely appreciated  
and sought after by our customers. Specifically,  
we strove to deliver a vehicle that can win drivers’  
a maximum loaded weight of 80,000 pounds  
(approximately 36 tons) and cruising range of 300  
miles (more than 480 kilometers), the truck is  
designed to accommodate a range of commercial  
truck needs. We will conduct the verification  
2
of CO emissions from HEVs to a level on par with  
PHEVs. Even PHEVs can benefit from the use of  
“e-Fuel,” which will help reduce their CO  
emissions to be close to emissions from BEVs.  
2
Next-generation Lithium-ion Battery  
Future Developments and Challenges Associated  
with All-solid-state Batteries  
Battery Procurement and Collaboration Structure  
2
CO Emission Reduction Effects  
Realized thus Far  
Aims  
Merits of all-solid-state batteries  
BYD subsidiary:  
Transferred relevant  
project in 2021  
Global HEV  
sales in  
Longer  
service life  
Greater  
More  
Simple ion  
movement (fast)  
High voltage  
tolerance  
High temperature  
tolerance  
Lower cost  
energy density compact size  
cumulative total  
July 2021)  
(
1
8.1 million  
Evolution in  
liquid-based  
battery materials  
Innovation in liquid  
battery structure  
All-solid-state  
batteries  
Early realization of  
use in HEVs  
Converted  
estimated  
effects arising  
from BEVs  
Converted  
estimated  
effects arising  
from BEVs  
R&D for future use in BEVs  
Key issues: Securing the service life  
of high-capacity batteries  
Utilizing ion speed  
for high-output  
batteries  
Initial stages  
After long-term use  
2
CO emission  
BEV battery volume  
Approx.  
reduction effects  
Approx.  
Electrolyte  
Solid electrolyte  
Laminated  
2
60,000  
5.5 million  
Development of  
process for bonding  
solid materials  
units  
units  
Prismatic  
of BEVs  
New Structure  
Now developing materials to reduce  
the occurrence of gaps  
Smaller battery  
volume  
Significant  
effect  
Taking on the challenge of developing a wide range  
of batteries for the second half of the 2020s  
Providing BEVs equipped with batteries with  
improved characteristics that enable driving  
with peace of mind  
Future direction based on local conditions  
Strengthen collaboration with partners and  
consider new cooperative structures  
Rapid start-up of production within  
the Toyota Group  
First considering vehicles that utilize  
all-solid-state battery characteristics  
Overcoming challenges and envisioning rollout  
from HEVs to BEVs  
Contributed to efficient reduction in CO2  
emissions via the popularization of HEVs,  
which require smaller battery volume  
2
1
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Why Race with a Hydrogen  
Initiatives to Achieve Carbon Neutrality: Hydrogen Engine  
Engine Not Yet Ready for Sale  
a prototype vehicle, enter the 2021 Super Taikyu  
Series race, and thereby train on the front line of  
motorsports. Development in motorsports takes  
place on a much shorter timeline than it does for  
mass-produced automobiles. It is also more  
flexible. To realize carbon neutrality, we determined  
that motorsports is the most appropriate venue for  
training on and developing hydrogen engines.  
To realize carbon neutrality, we need to expand  
options for creating, distributing, and using  
energy, and cooperation with a wide range of  
companies will be indispensable. While training  
with the hydrogen engine at the 2021 Super  
Taikyu Series, we gained many friends with the  
requisite will and passion for such collaboration.  
In May, the third 24-hour race held in Fuji took  
on the challenge of using alternative energy. The  
Super Taikyu institution supported our racing with  
a hydrogen engine. We were able to complete the  
24-hour race with the cooperation of many  
supporters, including Denso Corporation, which  
collaborated with us on the development of basic  
parts; Iwatani Corporation and Taiyo Nippon  
Sanso Corporation, which collaborated on the  
supply of hydrogen; and FH2R in Namie-cho,  
Fukushima Prefecture.  
At the fifth race held in Suzuka in September,  
we took on the challenge of energy distribution.  
We used hydrogen derived from Australian brown  
coal in collaboration with Kawasaki Heavy  
Industries, Iwatani Corporation, and Electric  
Power Development.  
Building a Carbon-neutral Future Is  
an Intentional Passion and Action  
A New Approach to Carbon Neutrality  
In Japan, hydrogen is shipped in small fuel cell  
(FC) trucks, made by Commercial Japan  
Toyota Motor Corporation announced in April  
2
021 that it is working on the technological  
Partnership Technologies ( see page 28), and  
Toyota Transportation’s biofuel trucks. Options for  
distributing energy within Japan have expanded  
as have those for distributing energy overseas.  
At the sixth (and final) race held in Okayama in  
November, we made further progress on building  
partnerships for expanding fuel options for internal  
combustion engines. In cooperation with Kawasaki  
Heavy Industries, SUBARU, Mazda, and Yamaha  
Motor, we announced that we would try to (1) enter  
races using carbon-neutral engines (Mazda: using  
next-generation bio-diesel fuel) (SUBARU, Toyota:  
using bio-mass derived synthetic fuel and entering  
the 2022 Super Taikyu Series) and (2) consider  
using hydrogen engines for two-wheeled vehicles  
(Kawasaki Heavy Industries, Yamaha Motor: began  
considering joint research). Furthermore, in joint  
research for hydrogen engines with an eye toward  
installing them in two-wheeled vehicles, four  
companies (including Honda Motor and Suzuki) will  
continue searching for possible ways to realize  
carbon neutrality.  
development of a hydrogen engine. While fuel cell  
electric vehicles (FCEVs) are driven by electric  
motors powered using electricity generated by  
a chemical reaction between hydrogen and airborne  
oxygen, vehicles powered by hydrogen engines  
get their zoom by directly burning hydrogen as  
fuel in a modified conventional gasoline engine  
setup. The fuel is 100-percent pure hydrogen,  
unmixed with gasoline. As no fossil fuels are  
burned, except for the combustion of minute  
amounts of engine oil during driving, hydrogen  
In this way, the auto industry will become a  
pacesetter promoting initiatives that play to industry  
strengths while aiming for the realization of  
a carbon-neutral society. Through this such inten-  
tional application of passion and action, the future  
vision for the next 10 to 20 years will evolve. With  
courage and determination, we can shape this  
future vision and continue to take on challenges  
and go beyond the industry borders going forward.  
2
engine vehicles emit nearly no CO when in  
operation. To realize carbon neutrality, it will be  
important to increase people’s options without  
losing sight of the goal.  
Hydrogen engine technology, which draws on  
many decades of tried and tested internal com-  
bustion engine technology, holds the major hidden  
possibility of contributing to carbon neutrality. It is  
one option for safeguarding engine-related  
employment in Japan’s auto industry.  
At the fourth race held in Oita, we worked to  
expand options for creating energy. We used  
hydrogen that was refined using the geothermal  
power of Obayashi Corporation in Kokonoe, Oita  
Prefecture, and the photovoltaic power of Toyota  
Motor Kyushu’s Miyata Plant in Miyawaka,  
Fukuoka Prefecture.  
At the end of 2020, Master Driver Morizo  
President Akio Toyoda, using his race driver  
name) swiftly came to a decision: he would drive  
(
2
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Is Manufacturing Past Its  
Prime? Toyota Chief  
Production Officer Says “No”  
Initiatives to Achieve Carbon Neutrality: Monozukuri (manufacturing)  
and foot-operated disinfectant application devic-  
es. We also employed our TPS (Toyota Production  
System) to assist in the production of such goods  
as medical gowns. In sum, it was proven that our  
response to emergencies has become prompter  
and more proactive.  
When a fire broke out at a semiconductor parts  
manufacturing plant in 2021 and forced it to halt  
production, we pulled together to support its  
restoration efforts. With our teams in charge of  
parts procurement and equipment manufacturing  
demonstrating outstanding collaboration, the  
damaged equipment was reconstructed in two  
months. We thus accomplished a difficult task  
that would otherwise require at least seven months.  
Monozukuri (manufacturing) is about developing  
people. It is not an exaggeration to say that  
Japan, which turns hardships into strengths, is an  
optimal place for manufacturing.  
Our commitment to the above target was  
announced in June 2021.  
We believe that striving for carbon neutrality  
presents an opportunity to fundamentally  
innovate manufacturing.  
this technology with the innovative concept of  
a rotating paint ejection head, we have made it  
possible to create even finer paint particles with  
minimal variation in size, thereby achieving even  
higher painting quality. In addition to curbing CO  
emissions from our manufacturing operations via  
the introduction of airless painting machines, we  
are also able to reduce the size of paint recovery  
equipment as the volume of waste paint is consid-  
erably smaller. Thus, airless painting machines will  
help us achieve a significant reduction in the  
Taking on the Challenge of  
Embodying Skilled Manufacturing,  
a Key to the Future  
2
Manufacturing has long been the main driving  
force behind Japan’s industrial development.  
However, we cannot take it for granted that  
Japan’s strength in manufacturing will last forever.  
This strength, which has been nurtured over many  
decades, could be lost for good if we fail to hold  
on to it. Japan is an earthquake-prone country,  
and its manufacturing prowess has been refined  
by adversity. In truth, Japan’s manufacturers have  
been made even stronger by overcoming one  
natural disaster after another.  
When the Great East Japan Earthquake struck  
in 2011, our plants and equipment suffered grave  
damage due to the unprecedented scale of the  
disaster, and the restoration of their operations  
took a long time. However, having gone through  
this trial, we have become even better at minimiz-  
ing disaster damage through the emergency  
handling of equipment and immediate crisis  
response in other areas.  
Technological Development Aimed at  
Contributing to Carbon Neutrality  
For example, we are engaged in technological  
development that makes full use of new ideas.  
Painting and casting are the most carbon-intensive  
automobile manufacturing processes. Based on new  
ideas, we are taking on technological development  
focused on decarbonizing the above two processes.  
Conventional air-spray technologies are  
designed to deposit paint over broad areas.  
Moreover, with the air blown toward the target  
surface rebounding off it and scattering paint  
particles, only approximately 70% of the paint  
being sprayed successfully adheres to the target  
surface, while the remaining 30% goes waste. To  
eliminate such waste, our airless painting machines  
take advantage of the world’s first technology that  
uses static electricity to cause fine paint particles to  
adhere to the target surface. This technology  
enables us to achieve a coating adhesion efficiency  
of more than 95%. Furthermore, having combined  
2
volume of CO emissions.  
Also, in an effort to upgrade the press molding  
process for body panels, we are striving to make  
use of in-mold coating technology in which paint  
is applied to body panel parts as they are shaped  
within the metal press molds. The integration of  
press molding and painting into one process is an  
epoch-making idea that could eliminate the  
conventional painting process.  
Other new ideas include replacing paint with  
adhesive film, effectively eliminating the painting  
process. Adhesive films can be customized to  
make them special, and they can also be replaced  
for fun. Drawing on this idea, we intend to take on  
a new business in which we renovate used  
vehicles, make them look fantastic, and offer them  
to the users of the KINTO subscription service.  
A Path toward a “Green Factory”  
Toyota is currently taking on the challenge of  
creating a “green factory” on various fronts to  
realize a target of reducing the volume of CO  
2
When the COVID-19 pandemic forced auto-  
makers to suspend production in 2020, we  
voluntarily started to produce masks, face shields,  
emissions from its plants worldwide to zero, that  
is, achieving carbon neutrality, by 2035.  
Other 2%  
Molding 3%  
Assembly 3%  
A Path toward a Green Factory  
Volume of CO  
Emissions by Process  
2020: Toyota Motor  
Co., Ltd. on a  
non-consolidated  
basis)  
2
2
021  
Restoration of  
a plant affected  
by a fire  
(
Press 4%  
Painting 28%  
Aiming for  
early  
achievement  
of carbon  
neutrality at  
plants  
2
Volume of CO emissions if  
left on the present course  
Thermal treatment 5%  
Welding 7%  
Supported the reconstruction  
of damaged equipment  
Painting  
CO  
2
Forging 7%  
2
020  
Reduction through  
technological innovation  
Casting 18%  
Air-conditioner-  
related 11%  
COVID-19  
pandemic  
&
daily continuous  
improvement  
Machines 12%  
Development of Technologies That Embody New Ideas  
Case 2: Elimination of the painting process  
(in-mold coating)  
Assisted in the production of  
medical gowns  
Case 1: Splatter-free painting  
Volume of  
2
011  
CO  
2
emissions  
Reduction through  
renewable energy,  
hydrogen use, etc.  
In-mold coating serves as a key to  
integrating press molding and  
painting processes  
Great East  
Japan  
Casting  
Earthquake  
(
Including the use of CO  
2
credits)  
2
035  
2050  
Materials used  
in the process  
Supported restoration efforts  
undertaken in disaster-hit  
communities  
Striving for carbon neutrality presents an opportunity to  
fundamentally innovate manufacturing  
Coating efficiency:  
Coating efficiency:  
70%  
95%  
2
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Karakuri for Non-powered Devices  
next action to occur, such mechanisms make it  
easy to detect problems without relying on sensors.  
At Toyota, we replace pallets containing produc-  
tion parts via non-powered operation, using this  
mechanism in combination with automated  
conveyance carts to achieve an unmanned process.  
In Woven City, a similar concept is utilized, in  
which above ground and underground roads are  
developed separately, with the latter used only by  
fully automated logistics vehicles for the purpose  
of goods distribution.  
The second technology is automated inspection  
using AI. There are many examples in the world of  
automated inspection of defective products using  
machine learning to reduce the need for human  
labor. However, our goal is to use the vast amount  
of data we are collecting from this process to  
make essential improvements that will prevent  
defects from occurring in the first place.  
Toyota believes that people should not be turned  
into machine-keepers. To get that final 2%, we aim  
to simplify equipment and create equipment that  
does not break down.  
By combining this unique, human-centered,  
Toyota thinking with DX and IoT, we hope to  
create the next generation of advanced  
production lines.  
We wonder if some of our readers have heard of  
chahakobi dolls, tea-serving dolls manufactured in  
the Edo period. Such mechanical dolls, designed  
to carry cups of tea to guests and collect empty  
cups, perform combinations of simple fundamental  
movements (karakuri) and can be considered  
a precursor to robots. The Japanese term karakuri  
generally refers to non-powered mechanical  
automata operating through a combination of  
gears and shafts. They can therefore be deemed  
the ultimate carbon-neutral devices.  
At Toyota’s Honsha Plant, we maintain a pro-  
duction line called the TPS basic line. This facility  
was built upon our predecessors’ wisdom as well  
as our ingenuity. In fact, going back to the con-  
cept of karakuri, we have created an automated  
line that does not use sensors or control devices.  
The use of karakuri is intended to nurture  
Collaboratively Employing the Latest  
Technologies and the TPS  
In 2019, we launched a vehicle production line  
that collaboratively employs the latest technologies  
and the TPS in Mexico (see the diagram below).  
Toyota’s efforts to create a “green factory” are  
being promoted by collaboratively employing the  
latest technologies and the TPS.  
Taking Full Advantage of the Power of  
Monozukuri (manufacturing) Unparalleled  
by Global Peers  
The first technology is automated conveyance.  
At Toyota, transporting, itself, is considered  
wasteful. The starting point is trying to not  
transport at all. But, as that can often not be  
done, if something needs to be transported from  
point A to point B, we revise facility layouts to  
shorten the distance between the two locations  
while reducing the bulk of cargo and number of  
items per load. We then develop an automated  
conveyance system covering only the remaining  
distance and carrying lightest possible loads.  
The third technology has to do with digital  
transformation (DX) and IoT. With regard to IoT,  
a technology that connects nearly everything to  
the internet, we have experienced setbacks  
despite our best efforts to become a forerunner in  
the rush toward IoT. Although we raised the  
equipment utilization rate on production lines to  
98% by pursuing continuous improvement and  
applying the TPS, there remains the problem of  
how to address the last 2%. It is a real problem  
that can only be solved by the power of people.  
In the face of a forthcoming wave of new chal-  
lenges, such as calls for carbon neutrality and the  
need for DX, we at Toyota stand with our fellow  
manufacturers around the world. Working hand in  
hand with them, we will take on these challenges  
and become the best automaker in town in each  
region in which we operate.  
human sensibilities and inform our development of  
equipment. For example, because at each stage a  
karakuri mechanism must work properly for the  
Toyota’s Honsha Plant  
TPS Basic Line  
Collaboratively Employing the Latest Technologies and the TPS  
Karakuri  
vacism)  
Innovative equipment  
Innovative equipment  
Innovative equipment  
Innovative equipment  
Karakuri mechanism must properly work at  
(
each stage for the next action to occur  
Karakuri (parts conveyance)  
Main conveyor (SS turn)  
SS subline conveyor  
SS engine and rear  
suspension installer  
SS parts installation  
assistance device  
Conv
rack  
Karakuri (parts conveyor)  
Toyota  
Motor  
Kyushu,  
Inc.  
Empty-box returner  
Karakuri  
Conveyance cart  
Supply line  
(
fixed-volume material loader)  
(
new Ton Ton)  
Karakuri  
automated fitting mechanism)  
Karakuri (failproof system)  
(
Subereon  
Karakuri (wagon carts)  
Bolt Lock  
Multi-axis temporary fitting tool  
Karakuri (conveyance carts)  
Karakuri (parts conveyor)  
Karakuri (parts conveyance)  
Karakuri (parts conveyor)  
Karakuri (ergonomic  
operator support system)  
Example: Oil seal press-fitting machine that  
Toyota  
Toyota  
Motor East  
Japan,  
Aisin  
Seiki  
Co., Ltd.  
operates on karakuri principles  
Auto  
Body  
Placing parts fitting tools  
closer to operators  
Co., Ltd.  
Inc.  
Making it easy to detect problems without  
relying on sensors  
String-driven karakuri  
conveyance system  
Dream Carry  
Gate-type conveyance system  
Raku raku sheet  
2
4
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Toyota’s Key to Software  
Survival: In-House Capability  
and Real Customer Contact  
Software and Connected Initiatives  
Focusing on the Real World and  
Internalization  
Holdings, and Toyota Connected, and it is why we  
are working on the development of the e-Palette,  
the construction of Woven City as a town for pilot  
testing, and the development of the Arene  
platform and other technologies.  
Platform (MSPF) to provide mobility services and  
are promoting collaboration with service providers.  
Connected cars and connected technologies will  
be applied to a variety of areas, and that which is to  
be connected will expand to include people, cars,  
communities, and society (business-to-society, or  
BtoS). Toyota will handle the information gathered  
from customers and vehicles with care, utilizing it  
for the happiness of customers and the develop-  
ment of society while creating new value from  
experiences centered on mobility.  
With the e-Palette battery electric vehicle (BEV)  
used in the Olympic Village for the Olympic and  
Paralympic Games Tokyo 2020, our goal was to  
create mobility that integrates cars and information  
and that coordinates with the community. During  
the Games, 49,000 athletes, staff, and volunteers  
used e-Palette. We also developed a fleet  
How Toyota Is Taking on  
Car-making Going Forward  
When it comes to the manufacturing of cars,  
Toyota has a basic stance that has been handed  
down internally over the years: we stick to our  
principles and internalize important elements by  
attempting to first achieve them on our own. We  
also continuously introduce improvements on the  
front lines to enhance our competitive advantage.  
Since its founding, Toyota has been producing  
various production equipment in-house as neces-  
sary. In the 1990s, we pursued the in-house  
design of ECUs and established an electronics  
plant, a chip plant, and a battery plant. These  
efforts eventually led to the commercialization of  
the Prius, the world’s first mass-produced hybrid  
electric vehicle (HEV).  
Amid this once-in-a-century era defined by major  
CASE* transformation, automobile manufacturing  
requires technological development in such new  
fields as electrification, automated driving, and  
connectivity. Among these fields, software is  
becoming an important factor in determining  
product appeal.  
Today’s cars are equipped with more than 50  
electronic control units, or ECUs, and use as  
many as 1,000 chips. Furthermore, society has  
entered the age of the internet of things, and  
things being connected has become the norm.  
Cars are also equipped with communication  
devices, further advancing their electronification,  
and the volume of software (lines of code) is thus  
growing ever larger.  
Facing this major transformation in the auto  
industry, Toyota is paying particular attention to the  
transition of cell phones. As the shoulder phone  
evolved into the feature phone and then into the  
smartphone, the commoditized product of the phone  
became linked with information, creating new value  
through new experiences and quickly spreading  
around the world. This transition is supported by  
software and connected technologies.  
Progress on Connected Cars and  
Connected Technologies  
To date, Toyota has sold 10 million Lexus and  
Toyota vehicles that are connected cars, mainly in  
Japan, the United States, Europe, and China.  
Toyota’s vision of the connected car is not  
simply one of connecting the car to the internet.  
Rather, it is about providing customers with  
emotional experiences through the movement of  
people, goods, and activities—a vision centered  
on people that we call “human connected.”  
To achieve this, we are operating a call center  
as a point of contact with customers; the Toyota  
Smart Center, which provides a variety of  
Toyota has always maintained a strong aware-  
ness of the real world regardless of the era at  
hand, pursued our principles, and promoted  
internalization. That is why in the area of software  
and connected technologies, we established the  
Toyota Research Institute (TRI), Woven Planet  
management system for e-Palettes based on the  
principles of the Toyota Production System (TPS)  
to ensure effective, efficient, and accurate opera-  
tion. The system monitors the vehicles remotely  
and operates them in a just-in-time fashion  
according to the conditions of the surrounding  
services; and the Toyota Big Data Center, which  
utilizes vehicle information gathered from cars. In  
addition, we have established the Mobility Service  
Service Providers  
Insurance Rideshare  
companies  
Car-  
sharing  
Rentals  
Taxis  
Logistics  
Retail  
Food & Govt. offices,  
Olympics &  
Paralympics  
lodging  
Due to the CASE revolution, cars are becoming  
more deeply connected to communities and people’s  
lives through information, becoming a more integral  
part of social systems. At the same time, cars will  
become more linked to information, and through the  
movement of people, goods, and things, Toyota  
aims to provide new value through new experiences  
and by bringing excitement to customers.  
Mobility Services Platform (MSPF)  
API (Vehicle management, fleet management, authentication functions, payment functions, etc.)  
Smart Key Box/  
TransLog  
Operational  
information  
Telematics insurance  
Flexible leasing  
Vehicle information  
Toyota Smart Center (TSC)  
Telematics services  
OTA updates of  
onboard software  
Individual/device  
authentification  
Use of big data  
(CRM quality control)  
(
map updates,  
agents...)  
Big data (TBDC)  
*
CASE: Connected, Autonomous,  
Shared, Electric. The technological  
revolution in these new fields is  
expected to speed up and continue  
changing cars, and, by extension,  
mobility and the structure of society.  
As a mobility company that can  
provide a wide array of services  
related to mobility and meet diverse  
needs, Toyota is working to realize  
the mobility society of the future.  
A
utonomous  
Global Communications Platform  
Operator-  
assisted  
services  
C
onnected  
S
hared  
E
lectric  
2
5
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
environment and the number of passengers. All of  
this was realized via the MSPF that Toyota has  
been building and refining.  
In the future, these technologies will be applied  
to the Sienna Autono-MaaS minivan being devel-  
oped in the United States for use as a robotaxi,  
and the MSPF will be used not only for automated  
vehicles, but also for regular commercial vehicles  
and logistics.  
and software as well as the reuse of software.  
Arene leverages the strengths of hardware cultivat-  
ed by Toyota to achieve the development of safe,  
high-quality, and advanced software.  
Because increasingly complicated software  
development is becoming a bottleneck for cars,  
too, there is a need for a revolutionary vehicle OS  
that can solve these issues. The vehicle OS will  
achieve TPS in software development as well, and  
we must continue to realize combinations of good  
hardware and software.  
For example, when developing automated  
driving software, the on-board software needed  
for automated driving actually makes up only  
10%; the other 90% comprises various tools,  
such as data processing by the machine learning  
system, mounting, code review, software updates,  
log analyses, and simulations. Basically, most of  
the software we develop is used off-board (out-  
side vehicles) or through the cloud.  
Arene is used to develop frameworks for vehicle  
development and development environments  
based on those frameworks as well as to build  
ecosystems for mobility development. Using  
industry-leading software technologies, we will  
continue providing privacy-conscious, secure, and  
safe cars.  
and on a 18,000-person scale for the entire  
Group. We are also strengthening the teams  
responsible for the internal production and  
development of software.  
Furthermore, application development on Arene  
is also easy. Partner companies will be able to  
program applications more efficiently using the  
Arene’s application programming interface (API,  
a mechanism that can share software functions)  
and software development kit (SDK), which  
includes simulation environments.  
In this way, development on Arene swiftly  
realizes commercialization and enables users to  
share the fun of providing new ideas that appeal  
to customers while meeting the expectations of  
worldwide partners and developers as well as the  
Toyota brand’s high-quality standards.  
The portion of a car’s value attributable to  
software is growing. By internalizing the parts  
central to Toyota’s future, we will strategically  
ensure the strengths of our hardware and software  
through internal production, compartmentalize  
development undertaken with partners, and  
accelerate the speed of mass production.  
For these initiatives, we are building a software  
development structure on a 3,000-person scale  
for Toyota, Woven Planet, and Toyota Connected  
Geofencing Technology Expands the  
Possibilities of HEVs and PHEVs  
Through connected technologies, we can contribute  
to carbon neutrality by gaining a better under-  
standing of the characteristics of each region in  
the form of data and combining this knowledge  
with realized technologies.  
According to market data, in Japan, the engine  
is turned off for half of all driving time in hybrid  
electric vehicles, or HEVs, while for plug-in hybrid  
electric vehicles, or PHEVs, the engine is turned  
off for as much as 80 percent. HEVs and PHEVs  
can evolve into environment-friendly vehicles to an  
even higher degree by upgrading the switching  
control of engines and electric motors. In other  
words, there is room to expand the possibilities of  
both HEVs and PHEVs.  
Innovation through a New Mobility  
Software Platform  
In this way, software has the power to promptly  
turn ideas into products. The aim of Arene, the  
vehicle development platform that Toyota and  
Woven Planet are focused on, is to continue  
fundamentally changing the development of  
software for vehicles.  
The most notable characteristics of Arene are  
that it absorbs the differences in vehicle hardware  
specifications (abstraction) and employs hardware  
abstraction layers (HAL) that enable hardware to  
be controlled with universal methods. This, in turn,  
enables the independent development of hardware  
One mechanism that will enable this is geofenc-  
ing technology. A portmanteau of geography and  
Fleet Management System Based on the Toyota Production System (TPS)  
Real Life  
Virtual  
Aiming for the ultimate in “just-in-time mobility,” e-Palettes are dispatched “when needed, where needed, and in the amount needed.”  
New Features, Services, and Functionality  
Autonomy Applications  
Infotainment  
Other Applications  
1
Waiting customers increase  
Emergency  
remote vehicle  
stop/restart  
Application Programmable Interface (API)  
Arene Operating System (OS)  
Immediate  
development of  
replacement  
vehicles  
Arene Tools  
Simulation Environment)  
(
AMMS (Operation  
management center)  
Hardware Abstraction Layer (HAL)  
Automatically sent  
to the garage in  
the event of  
2
Additional unit  
dispatched in real time  
3
Prevents variation  
in operation intervals  
an abnormality  
2
6
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
fence, geofencing refers to the combination of  
navigation and cloud technologies to enable the  
automatic switching of engine and motor functions  
in real time to reflect driving locations and driving  
times based on geographic data. For example, in  
zero-emission regulation regions that limit vehicle  
operation to only battery electric vehicles (BEVs)  
during certain time periods, geofencing automati-  
cally controls the functions of HEVs and PHEVs to  
ensure compliance with regulations.  
Furthermore, geofencing enables anticipatory  
eco-driving that switches over to BEV driving as  
appropriate by predicting the driving burden based  
on the driving environment up to the destination.  
Utilizing connected technologies makes it possible  
to further promote energy saving in cars the smart  
control of HEVs and PHEVs.  
The new NX features a mechanism that switch-  
es to HEV control. We expect that in the near  
future it will be able to use geofencing technology  
with over-the-air (OTA) update of its software.  
In October 2021, in advance of introducing  
geofencing technology under development with  
an eye toward practical application, we introduced  
anticipatory eco-driving (anticipatory EV/HEV  
mode switching control) in the Japanese market.  
It realizes highly efficient driving by automatically  
switching between EV and HEV modes depend-  
ing on the charge left in the battery and the road  
conditions and characteristics.  
The GR Yaris “Morizo Selection” is a new  
initiative based on GR Yaris that combines the  
ROOKIE Racing privateer team run by Morizo  
(President Akio Toyoda’s racing driver name) and  
Toyota’s KINTO car subscription.  
We will continue to evolve each car to best  
match each customer by reflecting updates  
(which are based on feedback and data gained in  
races participated in by Morizo and ROOKIE  
Racing) and personalization (which is based on  
customer driving data) in the software in GR  
Garage shops. Furthermore, we offer better  
driving methods and support the enhancement of  
driving skills. Basically, we realize cars that evolve  
to suit people by updating the latest software in  
line with each customer.  
and we will continue to expand the regions where  
we operate going forward. Needs are increasingly  
diversifying, and cars can be used in a myriad of  
ways to meet them. Our efforts thus encompass  
people’s problems and social issues, smiles and  
joy, and needed technological development.  
The auto industry must move people while also  
achieving coexistence with local communities. For  
the future and for children, the Toyota Group is  
working on producing happiness for all through  
freedom of movement for all and the provision of  
exciting experiences.  
We will continue to enhance the excitement that  
can be experienced by being able to move by  
combining real cars and the power of software. If  
we combine innovation with technology, the value  
of cars will rise higher. We will also contribute to  
the further development of society by going  
beyond the borders of cars and contributing to  
community building and the creation of society-  
wide platforms.  
Continuing to Evolve through  
Software Updates  
OTA refers to using wireless connections to  
continuously update to the latest software (control  
software and high-precision mapping software).  
This means that after a car’s purchase, new  
functions continue to be added and performance  
enhanced, while the latest driving assistance technol-  
ogy is installed, thereby continuing the vehicle’s  
evolution into a safer and more secure car.  
For the LS and Mirai launched in Japan in April  
2021, we have included cars that feature the latest  
Advanced Drive function of the newest sophisticated  
driving assistance technologies developed by Toyota  
Teammate/Lexus Teammate, and they are eligible for  
related software updates on an ongoing basis.  
Note: These updates are not OTA. They are done through a wired  
connection at stores.  
The Auto Industry Going Forward and the  
Possibility of Cars  
Cars have a wide range of applications from  
passenger cars to MaaS and commercial vehicles,  
Rate of Engine Being Off During Driving  
Rate of Engine Being Off During Driving  
Energy Conservation  
Harmony between Society  
and Cars  
Software download  
quality management  
Software quality  
management  
Engine + BEV driving  
BEV driving  
BEV during stops  
(
1
%)  
Connected base  
HEV driving  
Anticipation of driving  
burden on the environment  
00 HEV  
PHEV  
0
0
0
10100  
01010  
10010  
010100  
Software version  
Software download  
management  
001010  
management 010010  
Urban area  
Mountainous area  
Fee  
75  
BEV driving  
Downloaded  
software  
HEV driving BEV driving  
HEV driving  
BEV driving  
5
0
HEV driving  
0
0
0
10100  
01010  
10010  
BEV driving  
HEV  
BEV driving  
for the  
remaining  
distance  
HEV  
driving for  
climbing hills  
• Vehicle  
condition  
• Software  
version, etc.  
for frequent  
driving for  
Regenerative  
charging  
Region-specific  
needs  
starts &  
stops  
0
0
0
10100  
01010  
10010  
acceleration  
83%  
59%  
25  
0
Support for driving in cities that have  
zero-emission regulations  
Car  
(
Geofencing technology)  
Switch to electric-vehicle mode based on driving environment  
Anticipatory eco-driving)  
(
2
7
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
CEOs on Why Toyota,  
Isuzu, and Hino Formed  
CASE Partnership  
Aiming to Improve  
Logistics and Lives of  
People: Toyota’s New  
Collaboration with  
Commercial Sector Initiatives  
Suzuki and Daihatsu  
model for a city with a population of 300,000  
people before endeavoring to apply this model  
in the many similar-sized cities nationwide.  
Furthermore, working toward carbon neutrality,  
in addition to promoting the spread of electrified  
vehicles that are suited to logistics uses, the  
companies will work to increase transport efficiency  
based on the Just-in-Time (JIT) logistics approach  
of delivering what is needed, when it is needed, in  
the amount needed, expanding the range of the  
options for achieving carbon neutrality.  
work in overland transport to become more  
appealing, leading to an increase in the number of  
drivers and other logistics professionals.  
safety technologies and electrification by leverag-  
ing Suzuki and Daihatsu’s strengths in high-  
quality, low-cost manufacturing and Toyota’s  
CASE technologies.  
Contributing to Carbon Neutrality  
through Electrification and  
Enhanced Logistics Efficiency  
Expanding into the Commercial  
Minivehicle Business  
Isuzu, Hino, and Toyota Accelerate  
Commercial Vehicle CASE Initiatives  
Leveraging Electrification and Connected  
Technologies to Realize JIT Logistics  
On July 21, 2021, Suzuki Motor Corporation and  
Daihatsu Motor Co., Ltd. joined the Commercial  
Japan Partnership (CJP), a commercial vehicle  
project started by Toyota, Isuzu and Hino.  
On March 24, 2021, Toyota, Isuzu Motors Limited,  
and Hino Motors, Ltd. agreed to form a new  
partnership in commercial vehicles and established  
Commercial Japan Partnership Technologies  
Amid pressure to enhance cost competitiveness,  
maintaining a competitive edge in the area of  
commercial vehicle electrification is increasingly  
challenging. Competitiveness increasingly hinges  
on connected technologies and uses of batteries  
and other technologies. Accordingly, manufactur-  
ers must step up the unique added value that  
they offer.  
In addition to electrification, improving transport  
efficiency will contribute greatly to realizing carbon  
neutrality. The five companies of the partnership  
will link their connected technology platforms to  
build a more comprehensive platform for commer-  
cial vehicles and leverage the Toyota Production  
System (TPS), one of Toyota’s strengths, to realize  
JIT logistics and increase transport efficiency,  
Minivehicles account for about 31 million of the  
approximately 78 million vehicles owned in Japan.  
Furthermore, 85 percent of Japan’s roads are so  
narrow that only minivehicles can easily use them.  
In this sense, minivehicles are collectively a kind of  
“people’s car,” made to suit the roads of Japan.  
They are a practical and sustainable lifeline for  
people across the country and have continued to  
evolve alongside changing lifestyles. For more  
than 60 years, Suzuki and Daihatsu have been  
protecting this lifeline and driving forward the  
market. By working together, these two companies  
will be able to access the real needs and con-  
cerns of nearly 70 percent of Japan’s minivehicle  
users. Commercial minivehicles, which account  
for 58 percent of all commercial vehicles in Japan,  
are able to effectively cover areas that their small  
size makes accessible, supporting logistics  
operations mainly in the last mile.  
(
CJPT) to promote this partnership. CASE tech-  
Partnership with Isuzu  
nologies can only contribute to society once they  
become widespread. Commercial vehicles can  
play important roles in CASE technology dissemi-  
nation, as they travel long distances for extended  
periods of time to support the economy and  
society and can be easily linked with infrastructure  
development. By combining the commercial  
vehicle foundations cultivated by Isuzu and Hino  
with Toyota’s CASE technologies, the companies  
aim to accelerate the societal implementation and  
adoption of CASE technologies and services and  
thereby help address social issues and contribute  
to the realization of carbon neutrality.  
Specifically, the three companies are jointly  
working on the development of battery electric  
vehicles (BEVs) and fuel cell electric vehicles (FCEVs),  
autonomous driving technologies, and electronic  
platforms centered on the domain of small  
commercial-purpose trucks. While working together  
on BEVs and FCEVs to reduce vehicle costs, the  
companies plan to advance infrastructure-  
Working together, Isuzu and Hino are able to  
reach 80 percent of Japan’s truck customers and  
learn about their real needs and concerns.  
Distribution by truck accounts for about 90 percent  
of overland logistics in Japan, and the transporta-  
tion sector (including buses and taxis) involves 2.7  
million people. Commercial vehicles account for  
about 40 percent of total distance traveled by  
2
automobiles and about half of all CO emissions  
from automobiles in Japan. Furthermore, the more  
than 60,000 logistics companies operating in Japan  
currently face numerous management issues, such  
as high-frequency distribution, harsh work  
environments, labor shortages, and rising burdens.  
The power of CASE, centered on connected  
technologies and services, is expected to deliver  
improvements that help resolve these issues.  
Solving these kinds of social issues is not  
something that one company can accomplish  
alone. It is necessary to seek a wide range of  
like-minded partners, apply their different  
strengths, and work together for the sake of those  
supporting transportation and for society. As  
solutions to such issues progress, we expect  
2
thereby helping to reduce CO emissions. Using  
connected technologies to link logistics from the  
major arteries to the fine capillaries, from produc-  
ers to consumers, using truck logistics and local  
minivehicle-based distribution, JIT logistics have  
the potential to lower running costs for logistics  
vendors and sustainably improve logistics.  
Going forward, the five companies will deepen  
their collaboration while openly considering  
cooperation with other like-minded partners,  
working to help fulfill the automotive industry’s  
mission of helping improve people’s lives and  
leave a better Japan and a better planet for the  
next generation.  
Expanding the CJP-based partnership to  
include minivehicles will enable efficient, integrated  
logistics, linking the main arteries of logistics  
(handled by trucks) with the capillaries of logistics  
(the domain of commercial minivehicles) while  
leveraging connected technologies and abundant  
data. This new collaboration is also aimed at  
promoting the broader use of affordable advanced  
coordinated societal implementation, such as  
introducing FCEV trucks to hydrogen-based  
society demonstrations in Japan’s Fukushima  
Prefecture, thereby building an implementation  
Primary and trunk line transport  
main arteries)  
rmediate  
ries)  
Commercial Japan Partnership  
Last-mile transport (capillaries)  
(
Vehicle electrification (FCEVs, BEVs, etc.)  
Improving logistics efficiency and energy management  
2
8
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Making Ever-better Cars  
Initiatives to Achieve Carbon Neutrality  
Woven City  
Software and Connected Initiatives  
Message from the President  
Corporate Data  
Commercial Sector Initiatives  
Within Reach If You Just  
Keep Climbing”: Akio’s  
Message on Woven City  
Woven City: Aiming to Create a City Where People Live Happily.  
difficult decision to close the Higashi-Fuji Plant.  
Looking for a way to carry on the Higashi-Fuji  
Plant’s legacy of manufacturing to help create  
future mobility for the next 50 years, he arrived at  
the idea of transforming the site into a connected  
city as a large-scale demonstration experiment.  
Our Unwavering Principles:  
“Human-centered,” “A Living Laboratory,”  
and the “Ever-evolving City”  
A Test Course For Toyota as  
a Mobility Company  
Under the Woven City project, we are imagining  
the life of each resident as we seek to design  
a city that will most make people happy. Working  
with researchers, engineers, and scientists, we will  
demonstrate future technologies in both the virtual  
and the real world and will roll out the resulting  
technologies and products developed around the  
globe. Woven City will be a constantly improving,  
ever-evolving city rooted in Toyota’s kaizen  
approach—thinking that there is always a better  
way. We will work with partners who share our  
aspiration in this quest to realize better living and  
mobility for all.  
Woven City will comprise three types of roads,  
woven together like warp and weft: paths for  
people, roads shared by people and personal  
mobility devices, and roads for autonomous  
vehicles. Aimed at realizing safe mobility, it will be  
a sort of test course for the integrated three-part  
development of automated driving at the levels of  
people, vehicles, and the traffic environment. In its  
early stages, Woven City will house around 360  
residents, comprising mainly seniors, families, and  
inventors. In the future, the city will have more  
than 2,000 residents, including Toyota employees,  
demonstrating technologies in mobility and a wide  
range of other fields, from logistics to energy, food  
and agriculture as it grows into an environment  
conducive to the timely generation of new  
The Woven City project,  
first announced in January  
Building on Our History of Manufacturing  
2
020, officially broke  
ground on February 23,  
021. Woven City will  
Woven City will be constructed on the site of  
Toyota Motor East Japan’s former Higashi-Fuji  
Plant, which was a pillar of production for Toyota  
for 53 years, starting in 1967. At its peak, the  
plant had 2,000 employees, and a total of 7,000  
individuals worked there over its history, producing  
such vehicles as the Toyota Century, Toyota’s  
flagship chauffeur car infused with Toyota crafts-  
manship, and the JPN Taxi, a car that requires many  
times the durability of an ordinary passenger car.  
The concept for Woven City can be traced  
back to the Great East Japan Earthquake in 2011.  
President Akio Toyoda sought to create jobs for  
the region’s people, who were hit hardest by the  
disaster, by creating a third base of operations in  
the Tohoku region. Guided by his strong leader-  
ship, Toyota established Toyota Motor East  
Japan, Inc. in 2012. However, this also led to the  
2
demonstrate cutting edge  
technologies in such areas  
as automated driving,  
inventions that address social issues.  
mobility as a service (MaaS), personal  
mobility, robotics, smart homes, and  
artificial intelligence (AI) in a real living  
environment. By rapidly implementing  
development and demonstration cycles of  
technologies and services in this human-  
centered city, we aim to continuously  
produce new value and business models by  
utilizing the mobility of “information,”  
Carrying on a Commitment to  
Human-centered” Operations  
The name “Woven City” comes from Toyota’s origins  
in automatic looms. Toyota Group founder Sakichi  
Toyoda was driven to invent an automatic loom out  
of a desire to make his mother’s work easier. We  
have guarded and nurtured this spirit of service to  
others ever since. Woven City will take up this  
commitment from the Higashi-Fuji Plant, growing and  
evolving as the foundation for a new era at Toyota.  
goods,” and “people” to support daily life.  
2
9
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Messages from the Outside Directors  
Helping Increase Value for  
those Sur
Connecte
Leveraging Both Toyota’s Robust  
Business Base and Start-up  
Spirit to Push
Encourage and Inspire People  
Worldwid
Impossib
Ikuro Sugaw
Teiko Kudo  
Sir Philip C
Looking back over the discussions of the Board of Directors in the past  
year, I feel that our perspectives have broadened from surviving as an  
automobile manufacturer amid tremendous environmental change to  
include coexisting with the global environment and contributing to the  
lives of people in a wide range of circumstances and positions. In other  
words, the focus of our discussions has expanded from advancing  
Toyota’s interests to helping increase value for those surrounding and  
connected to Toyota.  
Specifically, in addition to discussing the profitability and future poten-  
tial of projects under consideration, the Board of Directors now proac-  
tively spends time examining matters in terms of contribution to carbon  
neutrality and the Sustainable Development Goals. I think that doing so  
has conveyed to Toyota’s executives the importance of thinking from the  
perspectives of diverse stakeholders, beyond just that of Toyota itself.  
For my part, as an independent Outside Director, I feel that I have been  
able to proactively contribute to such discussions based on my experi-  
ence dealing directly with environmental issues and energy policy as a  
public servant as well as the latest information about companies in Japan  
and around the world.  
Toyota’s business environment is expected to become even more chal-  
lenging and uncertain going forward. At times like these, it is crucial to  
not only focus on solving the issues immediately before us, but to take a  
long-term perspective to discuss what Toyota should do and how it must  
change. Only by doing so can Toyota achieve its mission of producing  
happiness for all—part of its founding spirit and a theme being strongly  
promoted by President Toyoda. I will do my utmost to help Toyota in  
these endeavors.  
Toyota is evolving at a tremendous pace. The Company is taking dramatic  
leaps forward even while continuing to incrementally implement Kaizen  
(continuous improvement). Toyota’s focus is always turned outward, not  
inward, constantly asking how it can continue to provide essential value to  
society and, based on its conclusions, continuing to take on new challeng-  
es. Despite its global scale, Toyota maintains the ambitious spirit of a  
fledgling neighborhood workshop.  
The Outside Directors take the perspectives of Toyota’s diverse stake-  
holders to engage in serious discussion with the internal members of the  
Board of Directors and executives. This often means that we challenge the  
ideas presented in Board of Directors Meetings. For example, we have  
recently been dedicating a considerable amount of time to discussing  
Toyota’s Woven City. I didn’t see how building a community made sense  
as a use of Toyota’s resources. I voiced my many doubts, and we dis-  
cussed the issue at length. As a result, I came to understand that Woven  
City will help address the environmental problems and other growing chal-  
lenges of urbanization around the world, that it embodies Toyota’s mission  
of “producing happiness for all,” and that it aligns with the aspiration Toyota  
has maintained since its founding of contributing to the overall good as  
well as the Sustainable Development Goals.  
We have seen President Toyoda launch Toyota’s transformation from a  
vehicle manufacturer to a mobility provider. This launch has faced the  
worst pandemic in 100 years, and I was proud to be a small part of the  
Toyota Group as it swung into action to produce PPE in Japan and provide  
rescue equipment around the world.  
Being part of Toyota during these two difficult years has shown me a  
new, positive side to this global company.  
Toyota partnered with the International Paralympic and Olympic  
Committees to support Paralympic and Olympic athletes all over the world,  
and I quickly realized how Toyota intended their amazing athletic performanc-  
es to encourage and inspire people worldwide to “start their impossibles.”  
The fundamental principles of the Paralympic movement and the Toyota  
Motor Corporation are very similar: Determination, the Spirit of Challenge,  
Equality of Opportunity, Respect, and Inspiration.  
The Olympic and Paralympic Games Tokyo 2020 showed the triumph of the  
human spirit and the athletes’ determination to succeed within the rules of the  
game. President Toyoda often says, including within Board meetings, that  
Toyota’s key ambition is to provide the necessary mobility products to better  
lives worldwide. He also has said, and this is something I particularly support,  
that Toyota will pay all due taxes to support society around the world.  
This once-in-a-century transformation of Toyota into a mobility supplier  
has to incorporate carbon neutrality, which must be achieved by around  
2050. No one exactly knows what will happen over the next 30 years, so it  
seems totally logical to me that Toyota will develop diversified power trains  
using different fuels and technologies. Similarly, we must not forget that  
there will be millions of vehicles powered by internal combustion engines  
well into the 2030s, 40s and even 50s, so developing less carbon-intensive  
fuels is crucial to achieving carbon neutrality.  
I have been involved in developing leadership development programs  
aimed at developing vibrant teams and partnerships. This training fosters a  
more open style of management that encourages two-way communication  
and ensures the right ideas and solutions will be found for a prosperous  
and productive future.  
Positive human energy, the most carbon neutral of all the Earth’s energy  
sources, is fundamental in oiling the parts of all teams and partnerships. I  
look forward to working with my fellow Outside Directors to help Toyota  
advance toward this prosperous and productive future.  
On top of all this, Woven City is also an ambitious push to refine Toyota’s  
strengths as a mobility company.  
Toyota must learn from and tolerate failures and continually transform  
itself. As an Outside Director, I will provide oversight in order to maximize  
the value of Woven City to Toyota by enabling agile development, with cor-  
rections made as needed. I hope to play my part as a co-driver* so that  
Toyota can drive toward the future at full speed.  
Under the leadership of President Toyoda, Toyota’s diverse human  
resources are doing their utmost to unify their focus as one team and  
move forward quickly, leveraging both Toyota’s robust business base and  
start-up spirit to push into the future.  
*
In rallies and other motor sports, a co-driver is a person who rides in the vehicle to assist the driver.  
I am proud to be a Toyota person!  
3
0
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Corporate Governance  
Fundamental Approach  
new value from a broad perspective can  
Sales Business Group into an organization based  
on regions rather than sales channels.  
officer into the post of operating officer and, in  
July 2020, clarified the responsibilities of operating  
officers. We redefined the role of operating officer  
to be members who, together with the president,  
have cross-functional oversight of the entire  
company. Furthermore, in-house company  
presidents, regional CEOs and chief officers, as  
on-site leaders of business implementation  
elements, were given authority while being  
consolidated into the rank of senior professionals/  
senior management. The roles of operating  
officers and senior professionals/senior manage-  
ment are to be determined where and as needed,  
and persons appointed as operating officers and  
senior professionals/senior management are to  
change in accordance with the challenges faced  
and the path that should be taken, as the  
company exercises greater flexibility than ever in  
appointing the right people to the right positions.  
Toyota, based on its basic policy of appointing the  
right people to the right positions, has been swiftly  
and continuously innovating. We will further press  
forward with the tide of such innovations, aiming  
for a corporate structure capable of carrying out  
management from a viewpoint that is optimal for  
a global company.  
participate in well-balanced decision making at  
the Board of Directors’ meetings.  
Toyota regards sustainable growth and the stable,  
long-term enhancement of corporate value as  
essential management priorities. Building good  
relationships with all stakeholders, including share-  
holders, customers, business partners, local  
communities, and employees, and consistently  
providing products that satisfy customers’ needs are  
key to addressing these priorities. To this end, Toyota  
constantly seeks to enhance corporate governance.  
Corporate Governance Report  
In 2019, to further advance its “acceleration of  
management” and the development of a diverse and  
talented workforce, Toyota made executive and  
organizational changes as follows: 1. Executives  
are composed of only senior managing officers  
and people of higher rank. 2. A new classification  
called “senior professional/senior management”  
(kanbushoku in Japanese) grouped and replaced the  
following titles or ranks: managing officers, executive  
general managers, (sub-executive managerial  
level) senior grade 1 and senior grade 2 manag-  
ers, and grand masters. With an eye to appointing  
the right people to the right positions, senior  
professionals/senior management hold a wide  
range of posts, from chief officer, deputy chief officer,  
plant general manager, and senior general manager  
to group manager, regardless of age or length of  
employment, in order to deal with management  
issues as they arise and to thereby strengthen their  
development as members of a diverse and talented  
workforce through genchi genbutsu (on-site  
learning and problem-solving).  
With respect to its framework for executing  
operations, Toyota has been continuing its efforts  
to respond swiftly to the external environment,  
which is changing faster than ever. Following the  
introduction of “region-based management” in  
2011, the “business unit system” in 2013, and the  
“in-house company system” in 2016, in 2017,  
Toyota further clarified that Members of the Board  
of Directors are responsible for decision making  
and management oversight and that operating  
officers are responsible for operational execution  
for the purposes of further accelerating  
Securities Report  
Business Execution and Supervision  
implementation of decisions.  
Furthermore, in 2018, Toyota brought forward  
the timing of executive changes from April to  
January, in order to further accelerate manage-  
ment oversight and ensure full coordination with  
the workplace. In addition, Toyota transformed the  
company structure into one that enables decision  
making that is both close to the needs of customers  
and close to where the action takes place, by  
taking measures such as reviewing the corporate  
strategy function and restructuring the Japan  
Toyota’s Corporate Governance  
Contributing to society through monozukuri  
(
manufacturing) is the basis of Toyota’s corporate  
value. To enhance its corporate value in the  
medium- to long-term, it is appropriate for Toyota  
to be a company with an Audit & Supervisory  
Board, where internal executives who have been  
long engaged in and have deep knowledge of  
manufacturing and outside executives who are  
capable of providing advice for the creation of  
In April 2020, Toyota consolidated the post of  
executive vice president and the post of operating  
Toyota’s Corporate Governance  
Shareholder’s Meeting  
Changes in Governance Structure  
Current  
2010  
2011—2015  
2016—2021  
Number of Directors (total)  
Outside Directors  
27 2011-2016: between 11 and 16 (temporarily increased due to the introduction of Outside Directors) 2017: 9  
Appointment/ Appointment/  
Dismissal Dismissal  
Appointment/Dismissal  
Executive  
2013: 3  
Appointment Meeting  
Executive Vice Presidents  
2011-2020: between 4 and 7  
(
Majority of  
Audit & Supervisory  
Board  
Senior Managing/  
Managing Officers  
64 2011-2018: between 42 and 49  
Board of Directors  
the members are  
Outside Directors)  
(including Outside Directors)  
Suggestion  
Suggestion  
Operating Officers  
June 2021: 11  
(Half of the members  
are Outside Audit  
Decision making and  
management oversight  
2018: 9 due to organizational  
changes, July 2020: 0  
Audit  
Executive  
Advisors/Senior Advisors  
2011-2017: between 55 and 68  
2013: Restructuring of groups  
&
Supervisory  
Board Members)  
Compensation Meeting  
Region  
(
Majority of  
Company  
2016: Introduction (from function-based to product-based)  
Supervision  
Referral/  
Report  
the members are  
Outside Directors)  
Cooperation  
Audit & Supervisory  
Board Members (total)  
Outside Audit & Supervisory  
Board Members  
7
4
2014: 6  
2014: 3  
Operating officers  
Accounting Auditor  
Executive Appointment  
Compensation  
2
017: Outside Members  
2019: Outside Members  
accounting for a majority  
Operational execution  
accounting for half  
Audit of consolidated  
financial statements  
and internal control  
over financial  
Labor-Management  
Council/Joint  
Labor-Management  
Round Table  
Sustainability  
2007-2014: CSR Committee  
2014: Corporate Governance Meeting  
2018: Sustainability Meeting  
Audit  
Business units  
In-house companies  
Head Office  
Dialogue  
Report  
reporting  
• Reduced the number of Members of the Board of Directors from 27  
to 11 members (currently 9 members)  
• Further clarification of the responsibilities of Members of the Board of Directors as decision  
making and management oversight and of Operating Officers as operational execution  
• Reduced the number of Members of the Board of Directors (including Outside Directors) to 9 (June)  
Conference  
April 2017  
Reduced decision making layers (discontinuing the positions of  
executives responsible for the operations involved and introduced the  
two-tiered arrangement of Executive Vice President and Chief Officer)  
Made flexible assignment of Senior Managing Officer or Managing  
Officer to Chief Officer post (abolition of Senior Managing Director)  
Established the role of Executive General Manager  
October 2017  Changed the system of advisors and senior advisor system  
April 2011  
April 2013  
• Increased appointment of people with high expertise from both within and outside of the  
Company (the Toyota Group, people with technical positions, backgrounds, etc.)  
• Executive Vice President, in addition to supporting the President, personally leads the field as  
an in-house company president and organizational group chief officers  
• Newly established a fellow system to secure people with high level of specialist expertise and  
expand the breadth of executive human resource development  
Audit  
Supervision  
Sustainability Meeting  
(Directors and Audit & Supervisory Board  
Members, including outside members)  
January 2018  
Stationing of, in principle, regional chief officers in their  
respective regions  
Report  
Established business units  
Discussion/  
Report  
Discussion/  
Report  
• Reorganized regional groups  
•Created a new classification: “senior professional/senior management,” integration of Managing  
January 2019 Officer, Executive General Manager, (sub-executive managerial level) Senior Grade 1 and Senior  
Grade 2 Manager, and Grand Master  
Appointed Outside Board Members  
Changed the roles of officers  
Internal Auditing  
Department  
Disclosure  
Committee  
April 2015  
April 2016  
• Enhancement of diversity (appointing non-Japanese executives and  
female executives)  
January 2020  Discontinued use of Field General Manager rank, shifting to Senior General Manager and Fellow  
April 2020  
July 2020  
• Integrated the roles of Executive Vice President and Operating Officer into Operating Officer  
• Further clarified the roles of Operating Officers  
Established in-house companies, shift from functional to  
product-based focus  
3
1
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Members of Board of Directors and  
Audit & Supervisory Board  
standards established by the relevant financial  
instruments exchanges.  
Audit & Supervisory Board System  
• Matters to be evaluated: Matters including  
1
Toyota has adopted an Audit & Supervisory Board  
system. 6 Audit & Supervisory Board Members  
(including 3 Outside Audit & Supervisory Board  
Members) play a key role in Toyota’s corporate  
governance by undertaking audits in line with the  
audit policies and plans. In appointing Audit &  
Supervisory Board Members, Toyota believes it is  
necessary to elect individuals who have broad  
experience and insight in their respective fields of  
expertise and can advise management from a fair  
and neutral perspective, as well as audit the  
execution of business. Toyota’s Executive  
Appointment Meeting discusses  
composition and operation of the Board  
Outside Members of the Board of Directors  
provide advice in Toyota’s management  
decision-making process based on their broad  
experience and insight, independently from the  
management structure. To allow the insight of  
Outside Members of the Board of Directors and the  
Audit & Supervisory Board to be fully made use of,  
Toyota has launched the following measures:  
of Directors  
2
management and business strategy  
Board of Directors and Related Structures  
With respect to the system regarding Members of  
the Board of Directors, Toyota has comprehen-  
sively considered and appointed the right person  
for the right position to make appropriate and  
prompt decision making. Toyota believes that it is  
critical to appoint individuals who contribute to  
decision making aimed at sustainable growth into  
the future according to the concept of the  
3
corporate ethics and risk management  
4
communication with stakeholders such  
as shareholders  
2. Summary of the findings  
As a result of the evaluation, it was confirmed that  
the operation of and the quality and content of the  
discussions at the Board of Directors were  
improving year by year, and that effectiveness was  
therefore ensured, through measures such as  
providing sufficient explanations of the presented  
agenda items in advance and having periodic  
exchanges of views with external officers on  
matters such as medium- to long-term  
1
Review the criteria for the submission of proposals  
to the Board of Directors as needed to reduce the  
number of proposals submitted, so that sufficient  
time can be secured to discuss each proposal.  
Toyoda Precepts,” which set forth our founding  
philosophy. Moreover, these individuals should be  
able to play a significant role in transforming  
Toyota into a “mobility company” by responding to  
2
Provide an explanation of all proposals in  
recommendations to the Audit & Supervisory  
Board regarding appointment or dismissal of Audit  
& Supervisory Board Members.  
advance to help understand the background of  
the proposals.  
1
social change using CASE* technologies and  
3
Remove the time limit for discussions at Board  
Toyota has appointed 3 Outside Audit &  
building external partnerships, contributing to  
provide solutions for social issues including the  
SDGs. The Board of Directors should consist of  
members who have the abundant knowledge,  
deep insight and the highly professional expertise  
needed by Toyota, and members are appointed  
with consideration for diversity. For each Director  
candidate, members of the Executive Appointment  
Meeting, of which the majority are Outside Directors,  
make recommendations to the Board of Directors.  
Furthermore, 3 Outside Members of the Board  
of Directors have been appointed in order to  
adequately reflect the opinions of those from  
outside the Company in management’s  
decision-making process, and all of them are  
registered as independent officers with the  
relevant financial instruments exchanges.  
Toyota considers the appointment of Outside  
Members of the Board of Directors as independent  
officers in accordance with the requirements for  
Outside Members of the Board of Directors set  
out in the Companies Act and independence  
of Directors’ meetings to ensure sufficient  
discussion can be held.  
Supervisory Board Members, all of whom are  
registered as independent officers with the relevant  
financial instrument exchanges. When appointing  
Outside Audit & Supervisory Board Members, Toyota  
considers the requirements set out in the Companies  
Act as well as the independence standards  
established by the relevant financial instrument  
exchanges. In recent years, the Audit & Supervisory  
Board and the internal audit function have been  
strengthening their ties by increasing the  
management challenges.  
Toyota identified issues to be resolved in order  
to further enhance effectiveness, such as increasing  
opportunities to discuss important matters related  
to management strategies and enhancing the  
provision of information in order to decide on  
investments such as those in new businesses.  
The Board of Directors will make improvements  
on these issues.  
4
Besides the Board of Directors meetings, set  
periodic opportunities for two-way communica-  
tion between Outside Members of the Board of  
Directors and the Audit & Supervisory Board  
and the operational execution side on  
important management issues and medium-to  
long-term issues.  
In recent years, to facilitate active discussion at  
Board of Directors’ meetings, Toyota has reduced  
the number of members (Directors and Audit &  
Supervisory Board Members) of the Board of  
Directors’ Meeting (from 34 in 2010 to 15 in  
opportunities to share their audit results, with the aim  
of improving the effectiveness of their audits.  
Training for Members of the Board of Directors  
and Audit & Supervisory Board Members  
In order to ensure that Outside Members of the  
Board of Directors and Outside Audit &  
Supervisory Board Members understand Toyota’s  
philosophy and efforts, Toyota arranges on-site  
inspections, including at its subsidiaries, and other  
opportunities. Also, as explained above, besides  
the Board of Directors Meetings we offer opportu-  
nities to help deepen their understanding, such as  
advance explanations on proposals submitted to  
the meetings and two-way communication with  
the operational executive on important management  
issues and medium- to long-term issues.  
Analysis and Evaluation of the Effectiveness of  
the Board of Directors  
In order to improve the effectiveness of the Board  
of Directors, Toyota has been conducting an  
analysis and evaluation of the Board of Directors  
every year. The most recent evaluation is  
performed as below.  
2
020). As a result, opportunities for each member  
to speak at Board of Directors’ meetings have  
increased, enabling Outside Members of the  
Board of Directors and the Audit & Supervisory  
Board to speak on almost all proposals.  
*1 CASE: Connected, Autonomous/Automated, Shared, Electric  
1
. Analysis and evaluation  
After a survey about the composition, operation  
and efficacy of the supervisory function of the  
Board of Directors was conducted, interviews  
were held with the Outside Members of the Board  
of Directors, the Audit & Supervisory Board  
Members, and certain management Members of  
the Board of Directors based on results of the  
survey. Once views and proposals regarding the  
background and causes of the identified issues,  
as well as the improvement trajectory for such  
issues, were compiled and reported to the Board  
of Directors, they were discussed at the Board of  
Directors’ Meeting.  
Personnel Structure of the Board of Directors (As of May 12, 2021)  
Current position/responsibility at Toyota  
Meeting  
Attendance at  
Board of  
Executive Compensation  
Length of  
service  
Directors’  
Name  
Sex  
Age  
Attribution  
meetings (No. of  
Responsibility  
Executive  
Compensation  
meetings  
The amount of executive compensation, how its  
calculation method is determined, and the  
calculation method are described below.  
Appointment  
attended)*2  
Chairman of  
the Board of Directors  
Takeshi Uchiyamada  
Male  
74  
23 years  
Chairperson  
Chairperson  
100% (17/17)  
Shigeru Hayakawa  
Akio Toyoda  
Koji Kobayashi  
James Kuffner  
Kenta Kon  
Male  
Male  
Male  
Male  
Male  
67  
65  
72  
50  
52  
6 years  
21 years  
3 years  
1 year  
Chief Privacy Officer  
Chief Executive Officer  
Chief Risk Officer  
Chief Digital Officer  
Chief Financial Officer  
100% (17/17)  
100% (17/17)  
100% (17/17)  
100% (13/13)  
Decision Policy and Process  
Toyota believes that it is critical to appoint individuals  
who contribute to decision making aimed at sustain-  
able growth into the future according to the concept  
of the “Toyoda Precepts,” which set forth our found-  
ing philosophy. Moreover, these individuals should be  
able to play a significant role in transforming Toyota  
into a “mobility company” by responding to social  
changes using CASE and external partnerships,  
while working towards providing solutions for social  
issues such as the ones represented in SDGs.  
Member  
Member  
Method of evaluation: Self-evaluation through  
surveys and interviews  
Outside  
Ikuro Sugawara  
Sir Philip Craven  
Teiko Kudo  
Male  
Male  
64  
70  
56  
3 years  
3 years  
3 years  
Member  
Member  
Member  
Member  
Member  
Member  
100% (17/17)  
100% (17/17)  
94% (16/17)  
independent  
Outside  
independent  
Outside  
independent  
• Subject of evaluation: Members of the Board  
of Directors and Audit & Supervisory  
Board Members  
Female  
Implementation period: February 2021 to  
April 2021  
*
2 Status of attendance at Board of Directors’ meetings in the fiscal year ended March 2021  
3
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Toyota’s executive compensation system is an  
important means to promote various initiatives and is  
determined based on the following policy.  
to each member of the Board of Directors and the  
executive remuneration system as well as the total  
amount of remuneration for a given fiscal year.  
The Board of Directors also resolves to delegate  
the determination of the amount of remuneration  
for each Member of the Board of Directors to the  
Executive Compensation Meeting. The Executive  
Compensation Meeting reviews the executive  
remuneration system on which it will consult with  
the Board of Directors and determines the amount  
of remuneration for each Member of the Board of  
Directors, taking into account factors such as  
corporate performance as well as individual job  
responsibilities and performance, in accordance  
with the policy for determining remuneration for  
and other payments to each member of the Board  
of Directors established by the Board of Directors.  
The Board of Directors considers that such  
decisions made by the Executive Compensation  
Meeting are in line with the policy on determining  
remuneration and other payments for each  
member of the Board of Directors.  
Major Matters Discussed at the Executive  
Compensation Meeting  
Precepts,” which set forth our founding philosophy,  
and other aspects such as the trust of others and  
promotion of employee development, based on  
which the amount of Annual Total Remuneration  
for each director is determined within the range of  
25% above or below the Annual Total  
• Compensation levels according to position  
and responsibilities  
It should be a system that encourages Members  
of the Board of Directors to work to improve the  
medium- to long-term corporate value of Toyota  
It should be a system that can maintain com-  
pensation levels that will allow Toyota to secure  
and retain talented personnel  
• Benchmarks and actual results evaluation  
for FY2021  
• Individual performance evaluation  
• The remuneration for each individual  
Remuneration for each position.  
2. Directors with foreign citizenship  
(excluding Outside Directors)  
It should be a system that motivates Members  
of the Board of Directors to promote management  
from the same viewpoint as our shareholders  
with a stronger sense of responsibility as  
corporate managers  
Method of Determining Performance-based  
Remuneration (bonuses, share-based compensation)  
1. Directors with Japanese citizenship  
(excluding Outside Directors)  
Fixed remuneration and performance-based remu-  
neration are set based on remuneration levels and  
structures that allow Toyota to secure and retain  
talented personnel. Fixed remuneration is set, taking  
into account each member’s job responsibilities and  
the remuneration standard of his/her home country.  
Performance-based remuneration is set based on  
consolidated operating income, the volatility of the  
share price of Toyota, and individual performance,  
taking into account each member’s job responsibili-  
ties and the remuneration standard of his/her home  
country. The concept of each item is the same as for  
directors with Japanese citizenship (excluding  
Outside Directors). Differences in tax rates in Japan  
and their home countries may be considered and  
compensated for.  
Toyota sets the total amount of remuneration  
(Annual Total Remuneration) received by each  
director in a year based on consolidated operating  
income, the volatility of the share price of Toyota  
and individual performance evaluation. The balance  
after deducting monthly remuneration, which is fixed  
remuneration, from Annual Total Remuneration  
constitutes performance-linked remuneration.  
Toyota sets an appropriate executive compen-  
sation level for the Annual Total Remuneration  
based on position and duties by referencing a  
benchmark group of companies located in Japan.  
Table 1 Table 2  
The Board of Directors decides by resolution the  
policy for determining remuneration for and other  
payments to each member of the Board of Directors.  
Remuneration is effectively linked to corporate  
performance while reflecting individual job responsi-  
bilities and performance. Remuneration standards in  
each member’s home country are also taken into  
account when determining remuneration amounts  
and methods. Remuneration for Outside Members of  
the Board of Directors and Audit & Supervisory  
Board Members consists only of fixed payments. As  
a result, this remuneration is not readily impacted by  
business performance, helping to ensure indepen-  
dence from management.  
Remuneration for Audit & Supervisory Board  
Members is determined by the Audit &  
Supervisory Board within the scope determined  
by resolution of the shareholders’ meeting. To  
decide the compensation for the fiscal year under  
review, the Executive Compensation Meeting was  
held in May 2020, March 2021, and April 2021.  
Also, preparatory meetings attended solely by  
Outside Directors were held five times in August,  
September, and October 2020 and February and  
March 2021 to hold discussions in preparation for  
the Executive Compensation Meeting. The  
Method of Setting the Annual Total Remuneration  
Annual Total Remuneration is set according to a  
formula based on the benchmark results of executive  
compensation. Annual Total Remuneration for each  
position is set based on consolidated operating  
income and the volatility of the share price of  
Toyota, and then adjusted based on individual  
performance evaluation. Individual performance  
evaluation is conducted in view of the efforts made  
according to the concept of the “Toyoda  
Share-based Compensation System  
The amounts of remuneration and other payments  
to each member of the Board of Directors and the  
remuneration system are decided by the Board of  
Directors and the “Executive Compensation  
Meeting,” a majority of the members of which are  
Outside Members of the Board of Directors, to  
ensure the independence of the decisions.  
The Board of Directors decides the share-based  
compensation, using the maximum share-based  
compensation (4.0 billion yen per year) set in the  
115th Ordinary General Shareholders’ Meeting  
held on June 13, 2019. For more details, please  
refer to p. 90 of the Securities Report (for fiscal  
compensation for the Members of the Board of  
Directors was decided with the agreement of all  
members of the Executive Compensation Meeting.  
year ended March 2021).  
Table 3 Table 4  
The Board of Directors resolves the policy for  
determining remuneration for and other payments  
Table 1 Explanation of Indicators  
Table 3 Remuneration by Executive Category, Remuneration by  
Type, and Number of Applicable Executives  
Table 4 Names and Details of those who Receive, in Aggregate, Consolidated  
Remuneration of One Hundred Million Japanese Yen or More  
Total consolidated remuneration by type (million yen)  
Consolidated  
operating income  
Indicator for evaluating Toyota’s efforts based on business  
performance  
Amount of remuneration [million yen]  
Volatility of Toyota’s  
share price  
Corporate value indicator for shareholders and investors to  
evaluate Toyota’s efforts  
Fixed  
remunera-  
tion  
Fixed  
Total  
Performance-linked  
remuneration  
Total  
remuneration  
by type  
Performance-linked  
remunera-  
consolidated  
remuneration  
(million yen)  
Individual perfor-  
mance evaluation  
No. of  
applicable  
executives  
Name (executive category)  
Company category  
remuneration  
Retirement  
benefits  
Qualitative evaluation of each director’s performance  
tion  
Other  
Category  
Other  
Monthly  
Share-based  
Monthly  
Share-based  
Bonuses  
61  
(
million yen)  
remuneration  
compensation  
remunera- Bonuses compensa-  
Table 2 Evaluation Method and Reference Value for Indicators,  
and Evaluation Result for the Current Fiscal Year  
Evaluation  
Takeshi Uchiyamada  
tion  
tion  
Reporting company  
110  
66  
50 (5,000 shares)  
222  
140  
442  
(
Director)  
364*  
(36,000  
shares)  
Directors (of which  
Outside Directors)  
735  
(159)  
2,595  
(159)  
Shigeru Hayakawa  
(Director)  
1
0 (3)  
748  
747  
Reporting company  
41  
33 (3,000 shares)  
Evaluation  
weight  
Reference result for  
231  
Evaluation method  
Akio Toyoda (Director)  
Reporting company  
Reporting company  
Consolidated subsidiary  
Daihatsu Motor Co., Ltd.  
185  
69  
3
25  
12  
value  
the current  
fiscal year  
Audit & Supervisory Board  
Members (of which Outside  
Audit & Supervisory  
(23,000 shares)  
251  
(54)  
251  
(54)  
6
(3)  
49 (4,000 shares)  
Evaluate the degree of  
Koji Kobayashi (Director)  
134  
1,451  
138  
attainment of consolidated  
operating income in the  
current fiscal year, using  
required income (set in 2011)  
for Toyota’s sustainable  
growth as a reference value  
Comparatively evaluate the  
volatility of Toyota’s share  
price up to the end of the  
Board Members)  
Consolidated  
operating  
income  
50%  
50%  
1 trillion yen  
(Notes) 1. Cash compensation consists of monthly remuneration and bonuses.  
Reporting company  
57  
26  
63  
12  
23  
232  
515  
104  
63  
747  
2
. Performance-based remuneration is set based on the resolution of the Board of Directors’ Meeting  
on May 12, 2021. Share-based compensation is the number of shares presented in the table  
multiplied by the closing price on the day prior to the date of resolution for the allocation.  
* Share-based compensation presented above is the amount calculated using the closing price on  
the day prior to the date of the resolution to allocate the number of shares resolved.  
Didier Leroy (Director)  
Shigeki Terashi (Director)  
James Kuffner (Director)  
Consolidated subsidiary Toyota  
Motor Europe  
Reporting company  
Consolidated subsidiary Hino  
Motors, Ltd.  
150%  
Toyota’s  
share price:  
Volatility of  
Toyota’s  
share price  
3. The figure for “Other” is the amount of compensation for taxes on remuneration paid to Didier Leroy,  
former Director who resigned on June 11, 2020, during his term of service as Director.  
current fiscal year, using the 6,501 yen  
share price of Toyota and the Nikkei  
Nikkei stock average at the average:  
Reporting company  
28  
284  
Consolidated subsidiary Woven  
Planet Holdings, Inc.  
end of the previous fiscal  
year as reference values  
18,917 yen  
(Notes) 1. The figure for “Other” is the amount of compensation for taxes on remuneration paid to Didier Leroy, a former Director who resigned on June  
1, 2020, during his term of service as Director.  
1
3
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
2. The fixed remuneration paid to Director James Kuffner by Woven Planet Holdings, Inc., a consolidated subsidiary, includes the amounts of  
fixed remuneration paid every three months and every 12 months.  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Capital Strategy  
Three Pillars  
technological innovation aimed at transforming  
into a mobility company. Every year, we spend  
more than 1 trillion yen on R&D. By enhancing  
efficiency in existing areas, we are strategically  
increasing the portion of R&D spending allotted to  
cutting-edge fields.  
Dividend Policy  
2. Assessment of the Propriety of  
Strategic Shareholdings  
The three pillars of Toyota’s financial strategy are  
stability, growth, and efficiency. By maintaining  
adequate stability while pursuing growth and  
efficiency over the medium and long terms, we  
aim to build a robust financial foundation to  
support sustainable growth.  
Toyota deems the benefit of its shareholders an  
important element of its management policy and  
continues to work to improve its corporate struc-  
ture and enhance its corporate value in order to  
realize sustainable growth. Toyota strives to  
ensure the stable and continuous payment of  
dividends, seeking to maintain and improve upon  
the consolidated payout ratio of 30%. To win out  
over tough competition, Toyota will utilize retained  
earnings mainly for investment in next-generation  
growth, such as environmental technologies  
aimed at realizing a carbon-neutral society and  
safety technologies for the safety and peace of  
mind of customers.  
Toyota’s basic policy for paying dividends from  
surplus is to pay dividends twice a year, as an  
interim dividend and year-end dividend. Based on  
Toyota’s Articles of Incorporation, these dividends  
are decided by resolution of the Board of  
Directors. In accordance with this policy, for the  
year ended March 2021, Toyota paid an interim  
dividend of 105 yen per share and a year-end  
dividend of 135 per share, for an annual dividend  
of 240 yen per share. For the year ending March  
2022, Toyota has decided to pay an interim  
dividend of 120 yen per share.  
When necessary, Toyota engages in constructive  
dialogue with the issuers of shares that it holds to  
encourage them to improve corporate value and  
achieve sustainable growth. These dialogues  
provide opportunities to share and address  
business challenges. Every year, at the Board of  
Directors, Toyota reviews whether its individual  
shareholdings are meaningful in light of changes in  
the business environment, specifically examines  
whether the benefits and risks from such holdings  
are commensurate with the cost of capital, etc.,  
and assesses the propriety of Toyota’s  
3. Efficiency: Enhancing Capital Efficiency  
Using cost reduction and the thorough application  
of the Toyota Production System (TPS), we are  
reinforcing the profit structure and securing funds  
to invest in advanced and cutting-edge technologies.  
In capital expenditure other than R&D expenses,  
as well, we are carefully assigning priority to  
individual projects and tracking their progress  
while advancing measures to improve productivity,  
such as streamlining development in existing  
fields, making equipment more compact, shortening  
processes, and facilitating faster response to  
changes in production quantities.  
Furthermore, in addition to sustainably increasing  
ROE by repurchasing shares, we are strengthening  
investment management by regularly evaluating  
the rationality of our strategic shareholdings in  
terms of the needs of our business strategies and  
economic utility. In these ways, we are striving to  
enhance capital efficiency.  
1
. Stability: Securing Liquidity  
Having experienced financial crises and the Great  
East Japan Earthquake, in order to ensure busi-  
ness continuity in any business environment, we  
maintain a sufficient level of liquidity to cover half a  
year of both fixed costs in the automotive busi-  
ness and refinancing requirements in the financial  
services business.  
Ample liquidity is essential to maintaining a full  
line-up in each region and retaining the ability to  
respond to all options and opportunities in this era  
of profound transformation in mobility. As such, it  
is a vital part of the foundation supporting the  
creation of corporate value.  
strategic shareholdings.  
If Toyota determines that a shareholding is no  
longer meaningful or the meaning of a sharehold-  
ing has been diluted due to changes in the  
business environment or other reasons, Toyota  
will proceed with the sale of such shares once it  
has adequately explained its reasons for doing so  
to the issuer.  
Consequently, the number of companies whose  
shares Toyota strategically holds has been re-  
duced to 157 (including 54 listed companies) as  
of March 31, 2021 from 200 (including 80 listed  
companies) as of March 31, 2015.  
2
. Growth: Aggressive Forward-  
looking Investment  
As the auto industry approaches a once-in-a-  
century turning point, Toyota is focusing on  
Woven Planet Bonds  
Strategic Shareholdings  
2
017/3  
2018/3  
2019/3  
2020/3  
2021/3  
In the year ended March 2021, Toyota issued  
Woven Planet Bonds to raise funds for projects  
that contribute to the achievement of the United  
Nations Sustainable Development Goals (SDGs).  
The issuance comprised 100.0 billion yen in  
yen-denominated straight bonds for individual  
investors, as well as 130.0 billion yen in yen-  
denominated sustainability bonds and 275.0  
billion yen in foreign currency-denominated  
sustainability bonds for institutional investors.  
Dividend per share (yen)  
Total amount of payment  
210  
220  
220  
220  
240  
1. Policies on Strategic Shareholdings  
Toyota’s policy is to not maintain strategic share-  
holdings except for in cases where such holdings  
are deemed to be meaningful. Cases where such  
holdings are deemed to be meaningful are defined  
as cases where it is determined that, in the busi-  
ness of manufacturing of automobiles, in which it is  
essential to maintain a variety of cooperative  
relationships throughout the entire process of  
development, procurement, production, distribu-  
tion, and sales, such holdings contribute to the  
improvement of corporate value from a medium- to  
long-term perspective based on a comprehensive  
consideration of business strategy, the establish-  
ment, maintenance, and strengthening of relation-  
ships with business partners, and contribution to  
and cooperation in the development of society.  
6
4
27.5  
34.6  
642.6  
26.1  
626.8  
33.8  
610.8  
30.2  
671.0  
29.8  
(
billions of yen)  
Payout ratio*1  
Share repurchases  
49.9  
549.9  
549.9  
199.9  
249.9  
(
billions of yen)  
Total shareholder return*2  
1
,082.4  
1,200.0  
48.1  
1,186.7  
63.0  
810.8  
39.8  
921.0  
41.0  
(
billions of yen)  
Total return ratio*3, 4  
59.1  
Stock Split  
*
1 Payout ratio: This is the ratio of (i) the amount of dividend per common share to (ii) net income attributable to Toyota Motor Corporation per  
common share.  
To reduce its minimum investment price and  
create an environment that better facilitates  
investing in Toyota’s shares, Toyota implemented  
a five-for-one stock split of its common shares  
with a record date of September 30, 2021.  
*
*
*
2 Includes dividends paid to First Series Model AA Class Shares  
3 Excluding repurchase made to avoid dilution of common shares.  
4 Total return ratio: This is the ratio of (i) the sum of dividends on both common shares and the First Series Model AA Class Shares and the amount  
of repurchase of common shares for shareholder returns to (ii) net income attributable to Toyota Motor Corporation.  
3
4
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
The Environment (Climate Change-related Disclosures Based on the TCFD)  
Toyota endorsed and signed on to the recom-  
mendations of the Financial Stability Board’s Task  
Force on Climate-related Financial Disclosures  
Strategy  
and opportunities to Toyota. We used scenarios  
such as those of the IEA* to examine future  
images of society based on the current policy  
scenario, below 2°C scenario, and 1.5°C scenario  
at around 2030 for Toyota’s external environment,  
in light of risk and opportunity analysis.  
In a society based on the below 2°C scenario or  
1.5°C scenario in which climate change measures  
proceed, the percentage of electrified vehicles  
(ZEVs in particular) will increase. In case of a  
society based on the 1.5°C scenario in particular, it  
is said that the percentage of ZEVs among new  
vehicle sales will increase greatly and the use of  
Toyota Environmental Challenge 2050  
(
TCFD) in April 2019 and appropriately discloses  
Toyota formulated the Toyota Environmental  
Challenge 2050 in October 2015 and the 2030  
Milestone in 2018, ensuring that it would continue  
to tackle challenges from a long-term perspective  
that looks to the world 20 and 30 years ahead  
and addresses such global environmental issues  
as climate change, water shortages, resource  
depletion, and loss of biodiversity.  
information concerning risks and opportunities  
related to climate change and their analyses.  
CO -free fuels such as biofuels will also expand,  
2
mainly for large cargo and marine/air transport.  
*
Set using scenarios such as the IEA’s Stated Policies Scenario  
STEPS), Sustainable Development Scenario (SDS), and Net Zero  
Emissions by 2050 Scenario (NZE) as reference  
(
Governance  
Environmental Management Structure  
At Toyota, operating officers and executives make  
timely decisions and carry out initiatives to  
address climate change-related issues from  
positions that are closer to customers and actual  
sites under the supervision of the Board of  
Directors. Strategies and policies in each area in  
light of risks and opportunities are set mainly by  
the Environmental Product Design Assessment  
Committee, the Production Environment  
Committee and the Resource Recycling  
Committee and all relevant organizations work  
together to carry out initiatives.  
Environmental secretariats have been estab-  
lished in six regions (North America, Europe,  
China, Asia, South America and South Africa) in  
order to undertake globally integrated environ-  
mental initiatives while taking local conditions into  
consideration. The secretariats share a commit-  
ment to the Toyota Environmental Challenge 2050  
and promote cooperation.  
Significant Risks and Opportunities and Toyota’s Measures  
Relationship with Climate Scenario  
Enhanced  
Risks and Opportunities Relating to  
Climate Change  
Risks  
Opportunities  
Toyota’s Measures  
Measures  
Current Scenario  
Scenario (below  
2
°C/1.5°C)  
Toyota strives to identify the various risks and  
opportunities that will arise from environmental  
issues and takes action accordingly while continu-  
ously confirming the validity of strategies such as  
the Toyota Environmental Challenge 2050 and  
working to enhance its competitiveness.  
Among these risks and opportunities, climate  
change requires measures in various areas,  
including the adoption of new technology and  
response to tighter government regulations. As  
climate change progresses, higher temperatures,  
rising sea levels, and an increase in the severity of  
natural disasters such as typhoons and flooding  
are expected.  
These changes may have various impacts on  
Toyota’s business fields and may also pose risks  
to Toyota’s business. However, it is our under-  
standing that if we can respond appropriately, this  
will lead to enhanced competitiveness and the  
acquisition of new business opportunities.  
In accordance with this understanding, we have  
organized the risks relating to climate change and  
identified particularly significant risks in line with  
risk management processes based on the degree  
of impact and stakeholders’ interest.  
• Fines for failure in achieving  
fuel efficiency regulations  
• Decrease in total vehicle  
sales due to delays in  
complying with ZEV  
Impacts will be an  
extension of  
current status  
Impacts will  
increase  
Maintenance of the top-level fuel efficiency  
(currently the highest in Europe)  
• Increase in investment in batteries and shift  
of resources  
Tightening of  
regulations for  
fuel efficiency  
and ZEVs  
(acceleration of  
electrification)  
• Increase in sales of  
electrified vehicles  
•Increase in profits from  
external sales of  
• Start of external sales of electrification systems  
• Expansion of electrified vehicle lineup  
• Reduction of CO emissions from vehicles  
2
currently in use  
regulations  
Stranded assets related to  
internal combustion engine  
manufacturing facilities  
electrification systems  
Impacts will be an  
extension of  
current status  
Impacts will  
increase  
Reduction of energy use through comprehen-  
sive energy conservation and promotion of  
renewable energy and hydrogen use  
Increase in production and  
purchasing costs due to the  
introduction of carbon  
taxes, etc.  
• Decrease in energy costs  
due to promoting the  
introduction of  
Expansion of  
carbon pricing  
• Promotion of emission reductions in  
collaboration with suppliers  
energy-saving technology  
Increase in demand for  
electrified vehicles due to  
increased need for supply  
of power from  
automobiles during  
emergency situations  
• Implementation of continuous adaptive  
improvements to our BCP in light of  
disaster experiences  
Impacts will  
increase  
Impacts will be an  
extension of  
current status  
• Production suspension due  
to damage to production  
sites and supply chain  
disruptions caused by  
natural disasters  
Increase in  
frequency and  
severity of  
• Reinforcement of information gathering in  
collaboration with suppliers to avoid  
purchasing delays  
natural disasters  
Future Image of 1.5°C Scenario  
Tightening of policies and vehicle  
regulations in various countries  
Advances in battery technology  
Purchasing & production  
Changes in consumer preferences  
Reputation  
Moreover, the Sustainability Meeting, which is  
chaired by the Chief Sustainability Officer (CSO),  
deliberates in a timely fashion the long-term  
enhancement of competitiveness and responses  
to risks considering internal and external changes  
on issues such as environment, social and  
governance, and reports the results to the Board  
of Directors.  
Global new vehicle sales market  
Large-scale introduction of  
renewable energy  
Major increase in percentage  
of ZEVs  
Onerous requests for wider and  
deeper information disclosure  
Relatively moderate increase in  
frequency and severity of disasters  
(compared to other scenarios)  
2
Expansion of CO -free fuel use  
Introduction of energy-saving technology and expanded use of renewable energy and hydrogen  
2
Progress regarding measures to reduce CO in  
Expansion of  
carbon taxes  
and carbon  
pricing  
Increase in  
physical risks  
such as  
Popularization  
of renewable  
energy  
Tightening of ESG  
assessment criteria and  
calls for disclosure  
the areas of product development and production  
are regularly reported as key management  
indicators at meetings attended by all of those  
at the chief officer or company president level  
and above.  
Scenario Analysis Assuming Risks  
and Opportunities  
Climate change and the policies of various  
countries may expose the automobile industry  
and the entire mobility society to substantial  
changes. These changes will present both risks  
disasters  
Future Image of Current Policy Scenario  
Future Image of Below 2°C Scenario  
Increase in percentage of electrified vehicles  
Increase in frequency and severity of natural disasters  
such as flooding  
3
5
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
In April 2021, Toyota proclaimed that it would  
address global-scale challenges to achieve  
carbon neutrality by 2050.  
driving mode fuel efficiency) and the development  
of engines that can use CO -free fuel, such as  
2
hydrogen engines.  
Challenge 2050. Steady action is being taken  
while confirming progress each year.  
Furthermore, the Scope 1, 2, and 3 results from  
2018 to 2020 are as detailed in the tables below:  
CO Emissions.  
2
To achieve carbon neutrality, Toyota will continue  
implementing electrified vehicle strategies that  
In the production field, we announced that we  
aim to achieve carbon neutrality at our global  
plants by 2035. We are promoting the reduction  
Toyota Environmental  
2030 Milestone  
2020 Initiatives  
Results  
Challenge 2050  
contribute to reducing CO  
2
emissions throughout  
2
• Reduce CO emissions by 25% or more  
throughout the vehicle life cycle compared to  
2013 levels by promoting activities for the  
the product life cycle while coordinating with  
national governments regarding energy policies,  
including renewable energy and charging  
infrastructure, and public policies, including  
purchasing grants, supplier support, and battery  
recycling systems.  
Toyota has sold a cumulative total of over 18  
million electrified vehicles worldwide. As one of  
the first companies to respond to climate change  
2
of CO emissions through comprehensive energy  
Completely eliminate all  
2
2
• Steadily promoted life cycle CO emissions  
reduction through environmental management for  
product development  
milestones of New Vehicle Zero CO  
2
Emissions  
conservation and the introduction of renewable  
energy and hydrogen at plants. We have already  
achieved a 100 percent renewable electricity  
introduction rate at all plants in Europe and  
South America.  
To confirm the validity and progress of Toyota’s  
strategies, we will conduct appropriate information  
disclosures regarding various ESG assessment  
indicators and enhance dialogue with stakeholders,  
including institutional investors. We believe that  
this will enable stable fund procurement and  
lasting corporate value enhancement.  
CO  
emissions throughout  
Challenge and Plant Zero CO  
2
Emissions  
the entire vehicle life cycle  
Challenge, and with support from stakeholders  
such as suppliers, energy providers, infrastruc-  
ture developers, governments, and customers  
Reduced global*2 average CO  
emissions from new  
2
vehicles by 23% compared to 2010 levels by  
improving environmental performance and expanding  
electrified vehicle lineups  
2
Reduce global* average  
2
2
• The estimate of global*  
average CO  
2
3
3
CO  
emissions (TtW* ) from emissions reduction (TtW* g/km) from new  
new vehicles by 90%  
compared to Toyota’s 2010  
levels by 2050  
vehicles will be 35% or more, which may vary  
depending on market conditions, compared to • Achieved cumulative global sales of 16.98 million  
2010 levels.  
electrified vehicles, exceeding our 2020 target of 15  
million units  
2
CO emissions were 4.9 million tons (down 22%  
compared to 2013 levels)  
Introduced innovative technologies, including an  
airless paint atomizer, and promoted energy-saving  
through daily kaizen  
risks, it has achieved a CO  
of over 140 million tons.  
2
emissions reduction  
Achieve zero CO  
2
emissions at global plants  
by 2050  
2
Reduce CO emissions from global plants by  
35% compared to 2013 levels  
• Achieved an 11 percent introduction rate for  
renewable electricity.  
Going forward, with regard to battery electric  
vehicles (BEVs), we will successively introduce  
models with dedicated platforms starting in 2022  
and seek to achieve practical vehicle supply through  
battery development and production strategies.  
In consideration of diverse customer needs and  
region-specific electric power conditions, we are  
promoting electrification from all directions,  
including hybrid electric vehicles (HEVs), plug-in  
hybrid electric vehicles (PHEVs), and fuel cell  
electric vehicles (FCEVs) in addition to BEVs.  
In December 2021, we announced our aim of  
developing 30 types of BEVs and achieving a full  
lineup in the passenger and commercial segments  
globally by 2030 to reach 3.5 million annual global  
vehicle sales by 2030.  
We will continue to respond to market changes  
with flexibility and use the strengths we have  
gained through experience to date to expand  
electrified vehicle options. In this way, we will be  
the choice of customers in each region and continue  
accelerating the realization of carbon neutrality.  
In addition to increasing the number of electrified  
vehicles, it is important to expand technology  
Continuously conduct various verification tests to  
support the utilization of hydrogen.  
*1 Technologies such as high efficiency lighting, waste heat recovery,  
active aerodynamic improvement, and solar radiation/temperature  
management that improve actual fuel consumption.  
*2 Japan, the U.S., Europe, China, Canada, Brazil, Saudi Arabia, India, Australia, Taiwan, Thailand, and Indonesia  
*3 Tank to Wheel: CO emissions during driving (CO emissions during the production stage of the fuel and electricity are not included; TtW emissions  
are zero in the case of battery electric vehicles and fuel cell electric vehicles)  
2
2
Risk Management  
CO  
2
Emissions: Scopes 1 through 3; Global  
2
CO Emissions: Scope 3 (Other Indirect Emissions); Global  
2
(million t-CO )  
(
million t-CO  
2
)
Risk Management through the Toyota Global  
Risk Management Standard (TGRS)  
2018  
1.92  
2019  
1.90  
2020  
1.64  
2018  
63.29  
4.54  
2019  
65.10  
4.23  
2020  
54.40  
3.93  
1
Purchased goods and services  
2 Capital goods  
Scope 1  
(Direct  
emissions)  
Under supervision of the Chief Risk Officer (CRO),  
we promote management focused on proactive  
preventive measures by gathering and analyzing  
all risks related to Toyota’s corporate activities and  
behavior, including in the area of the environment,  
and developing a system (TGRS) under which we  
take countermeasures.  
3 Fuel- and energy-related activities  
0.93  
0.96  
0.91  
0.84  
0.79  
(
not included in Scopes 1 or 2)  
4 Upstream transportation  
and distribution  
Waste generated in operations  
6 Business travel  
7 Employee commuting  
8 Upstream leased assets  
9 Downstream transportation  
and distribution  
0 Processing of sold products  
11 Use of sold products  
12 End-of-life treatment of  
sold products  
13 Downstream leased assets  
14 Franchises  
5 Investments  
Total  
Scope 2  
(Energy indirect  
emissions)  
4.08  
414.91  
420.91  
3.78  
397.94  
403.62  
3.26  
341.35  
346.25  
0.89  
5
0.12  
0.15  
0.64  
0.09  
0.17  
0.68  
0.08  
0.05  
0.74  
Scope 3  
Other indirect  
emissions)  
(
0.01  
0.01  
0.01  
Total  
1
1.17  
339.25  
1.24  
320.50  
0.77  
276.21  
Risk Management Relating to Climate Change  
We strive to understand the various risks and  
opportunities arising due to climate change and  
always check the validity of our strategies using  
scenario analysis to minimize risks and enhance  
our competitiveness.  
Organizational Boundary and Coverage:  
Scopes 1 and 2:  
All plants of Toyota Motor Corporation and consolidated subsidiaries  
and all Toyota vehicle production plants of unconsolidated  
subsidiaries (100% coverage)  
3.84  
3.96  
3.46  
0.08  
0.09  
0.07  
1
Scope 3:  
414.91  
397.94  
341.35  
Mainly covers automotive business of Toyota Motor Corporation and  
consolidated subsidiaries  
Organizational Boundary:  
Mainly covers automotive business of Toyota Motor Corporation and  
consolidated subsidiaries  
2
options to reduce the CO emissions of vehicles  
currently in use as well. This may include the  
Metrics and Targets  
Scope of Calculation:  
Category 11 is calculated from the average fuel efficiency and estimated  
lifetime mileage of vehicles in Japan, the U.S., Europe, China, Canada,  
Brazil, Saudi Arabia, India, Australia, Taiwan, Thailand, and Indonesia  
adoption of CO  
technology* (items not necessarily reflected in  
2
emissions-reducing off-cycle  
The 2030 Milestone envisions our future as of  
1
2030 toward achieving Toyota Environmental  
For details, refer to Environment—Environmental Data of the Sustainability Data Book:  
https://global.toyota/pages/global_toyota/sustainability/report/sdb/sdb21_en.pdf  
3
6
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Safety  
Fundamental Approach  
Toyota has defined its Integrated Safety  
Management Concept as the basic philosophy  
behind its technologies for eliminating traffic  
casualties and is moving forward with  
development.  
damage. In 1995, in the pursuit of world-leading  
safety, Toyota created its own stringent internal  
target related to passive safety performance  
called “Global Outstanding Assessment (GOA)”  
and developed a collision-safety body structure  
and passenger protection devices. Since then, to  
maintain its leadership in this field, Toyota has  
continued to evolve GOA, striving to improve the  
real-world safety performance of its vehicles in  
a wide variety of accidents.  
from the police or fire department/emergency  
services. HELPNET automatically contacts an  
®
According to a World Health Organization (WHO)  
survey,* 1.35 million people per year die in traffic  
accidents worldwide. While the number of deaths  
due to traffic accidents has been gradually  
decreasing in Japan, the United States, and  
Europe, it has been increasing elsewhere, especially  
in emerging nations, as improvements in safety  
education and transportation infrastructure have  
not kept up with increases in cars on the road.  
Unless countermeasures are implemented, traffic  
accident causalities are predicted to become the  
seventh leading cause of death globally by 2030.  
For Toyota to achieve its ultimate goal of elimi-  
nating traffic accident causalities, the development  
of safe vehicles is of course important, but it is  
also essential to educate people, including drivers  
and pedestrians, and to ensure safe traffic infra-  
structure, including traffic signals and roads.  
To achieve a safe mobility society, Toyota  
operator when the airbags deploy and supports  
®
D-Call Net , a service available throughout Japan  
that makes quick deployment decisions for air  
ambulances. This service is provided by sending  
vehicle data to the HELPNET center from an  
on-board data communication module (DCM).  
DCM is installed as a standard feature in all new  
passenger vehicles in Japan.  
* Source: Global Status Report on Road Safety 2018, WHO  
Integrated Safety Management Concept  
Toyota provides optimized driver support at every  
stage of driving, from parking to normal operation,  
the moment before a collision, during a collision,  
and post-collision emergency response. We also  
aim to enhance safety by strengthening inter-system  
coordination, rather than considering each system  
separately. These are the approaches behind our  
Integrated Safety Management Concept.  
To analyze vehicle-related injuries, Toyota  
collaborated with Toyota Central R&D Labs., Inc.  
to develop the Total Human Model for Safety  
(THUMS), a virtual human body model. THUMS is  
being used in the research and development of  
a variety of safety technologies, including seat  
belts, airbags, and other safety equipment, as well  
as vehicle structures that mitigate injuries in  
accidents involving pedestrians. Toyota made  
THUMS freely available through its website in  
January 2021 in the hope that it will be used by  
more people across more applications.  
Initiatives for People  
Toyota believes that education is an important  
part of preventing traffic accidents.  
To prevent accidents involving small children, in  
cooperation with Toyota dealers across Japan,  
Toyota has been donating traffic safety teaching  
materials to kindergartens and nursery schools  
nationwide since 1969. In 2020, we revamped our  
educational website for children and guardians,  
and we use our website and social media to raise  
awareness of traffic safety while walking and cycling.  
For drivers, we periodically hold the Toyota  
Driver Communication safe driving technique  
seminar at Toyota Safety Education Center  
Mobilitas, on the grounds of Fuji Speedway.  
Additionally, in step with the government-  
Active Safety  
The Toyota Safety Sense system packages  
believes it will be important to implement an  
integrated three-part initiative involving people,  
vehicles, and the traffic environment, as well as to  
pursue real-world safety by learning from actual  
accidents and incorporating that knowledge into  
vehicle development.  
multiple active safety functions based around three  
major functions considered effective in reducing  
serious traffic accidents causing death or injury.  
These are Pre-Collision Safety (PCS), which helps  
avoid and mitigate damage from collisions with  
cars ahead or pedestrians; Lane Departure Alert  
Emergency Response  
Every minute counts in the response to an accident  
or medical emergency. In 2000, Toyota rolled out  
®
(LDA), which contributes to preventing accidents  
its HELPNET service, an emergency reporting  
caused by leaving the lane of travel; and Automatic  
High Beam (AHB), which helps ensure clear sight  
in front of the vehicle at night. In 2018, we expanded  
the system’s driving assistance functions, such as  
nighttime pedestrian and daytime cyclist detection  
and Lane Tracing Assist (LTA).  
system utilizing the G-Book information network  
(now T-Connect) and G-Link in Japan. In the event  
of an accident or medical emergency, HELPNET  
contacts a dedicated operator who will arrange  
for the rapid dispatch of an emergency vehicle  
promoted Safety Support Car program, we are  
working with Toyota dealers across Japan to roll  
out safety and assurance activities under the name  
“Support Toyota” to help realize car ownership  
experiences that offer safety and assurance.  
®
People  
Raising awareness of traffic  
Vehicles  
safety through lectures, etc.  
Development of  
technologies  
for accident  
Traffic  
Since its market launch in 2015, Toyota Safety  
Sense has been installed in more than 27 million  
vehicles globally (as of October 2021). Toyota  
Safety Sense is now available on nearly all passen-  
ger car models (as standard or option) in the  
Japanese, U.S., and European markets. It has  
also been introduced in a total of 120 countries  
and regions, including such key markets as China,  
other select Asian countries, the Middle East,  
and Australia.  
environment  
Information on  
traffic jams, and  
maintenance and  
management of  
traffic lights  
avoidance and  
driver/passenger  
protection in  
collisions  
Integrated  
Three Part  
Initiative  
HELPNET® (Airbag-linked Type)  
Emergency arises  
(Note 1)  
Automatically sends alert  
and roads  
Air ambulances may not be  
available, depending on the  
location, time of day,  
weather, etc.  
D-Call Net will not respond  
when the HELPNET button  
when airbags are deployed  
Sends position and other vehicle data  
or  
Investigation and  
Sends alert with a touch  
of a button in an accident  
or medical emergency  
Development  
Estimates  
extent of  
injuries to  
patients based  
on vehicle  
data  
®
analysis of accidents  
Actual accident investigation  
and analysis  
HELPNET  
Center  
and assessment  
Evaluation of actual  
vehicles to create  
safer vehicles  
and incorporate  
preventive technolo-  
gies into vehicles  
®
is pressed.  
Police  
Simulations  
Accident  
simulation to  
develop  
preventive  
measures  
Fire Department/  
Emergency services  
(Note 2)  
HELPNET is a registered  
trademark of Japan Mayday  
Service Co., Ltd. D-Call Net  
is a registered trademark of  
HEM-Net (Emergency  
Medical Network of  
Helicopter and Hospital).  
®
Passive Safety  
Hurries to site  
Pursuing  
Real-world  
Safety  
®
Dispatches air ambulance if needed  
Dispatches doctor to site  
Coordination  
Passive safety combines a body structure that  
absorbs collision energy with that support to  
protect the vehicle occupants to minimize collision  
Sends injury extent data  
EMS helicopter base hospital  
HELPNET® Steps  
D-Call Net® Steps  
3
7
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Quality, Information Security and Privacy  
the foundation supporting these, the quality of the  
work performed by each employee.  
of recall issues that occurred in 2010, has been  
designated “Toyota Restart Day.” We have created  
mechanisms and are taking measures to raise  
awareness in order to keep the lessons learned from  
the series of recall issues fresh.  
affiliates, as an information security framework for  
comprehensively preventing information leaks and  
responding to cyber attacks.  
Quality  
Fundamental Approach  
We believe that products and services that gain  
the confidence of customers can be created only  
when all employees across every process—from  
development, purchasing, production, and sales  
to after-sales service—build quality into their work,  
coordinate with one another across processes,  
and implement the quality assurance cycle.  
ATSG ensures information security through a  
multi-faceted approach encompassing organiza-  
tional management, human resource manage-  
ment, technical security, physical security, and  
incident/accident response. To adapt to recent  
environmental changes, ATSG is revised periodically.  
By annually inspecting the information security  
initiatives being implemented at each company in  
line with ATSG, Toyota works to ensure the  
continuous maintenance and improvement of their  
information security. Since fiscal 2019, a special-  
ized team has been continuously carrying out  
on-site audits of all of our consolidated subsidiar-  
ies to check responses to ATSG and the status of  
implementation of physical security measures at  
each company.  
Furthermore, in terms of automobile-related  
initiatives, Toyota is a member of the Automotive  
Information Sharing & Analysis Center (Auto-ISAC)  
in Japan and the United States, a framework for  
sharing knowledge related to information security,  
and actively utilizes it to learn promptly about  
cases that occur within the industry and put them  
to use in our development.  
The origins of Toyota’s “Customer First” and  
Quality First” principles lie in the Five Main  
In 2014, Toyota established its Customer  
Quality Learning Center as a crucial education  
facility for conveying the experiences and lessons  
learned from the series of recall issues to future  
generations of employees. Using exhibits that  
engage the five senses, such as actual examples  
of faulty parts and vehicle simulators, the Center  
serves the important role of conveying the situa-  
tion back then to current Toyota employees.  
In addition to information about the series of  
recall issues, recent quality issues are added to  
update the program every year. In this way, we  
strive to ensure that the facility effectively main-  
tains focus on lessons we have learned. We have  
also set up customer quality learning centers  
unique to individual plants and global sites as part  
of efforts to ensure employees in each region and  
at each plant thoroughly understand the  
Principles of Toyoda, which embody the thinking  
of Sakichi Toyoda, and the spirit of audit and  
improvement espoused by Kiichiro Toyoda. Since  
its foundation, Toyota has built a corporate culture  
that focuses particular attention on quality that will  
produce customer smiles and on Kaizen (continu-  
ous improvement) achieved through Genchi  
Genbutsu (onsite, hands-on experience). Each  
employee in every area maintains a constant and  
strong awareness of issues and a sense of  
ownership and makes ongoing efforts to imple-  
ment Kaizen and collaborate closely with person-  
nel in other fields in order to enhance customer  
safety, peace of mind, and satisfaction.  
Fostering Awareness and  
Corporate Culture  
To foster a corporate culture in which each member  
is committed to building in high quality, Toyota works  
to develop human resources and improve work  
quality by holding quality awareness promotion  
events for all employees every year and by providing  
qualification-specific education in quality assurance.  
Furthermore, February 24, the anniversary of the day  
that President Akio Toyoda attended the U.S.  
Congressional hearings held to investigate the series  
Toyota sees quality as the combination of  
product quality, sales and service quality, and, as  
importance of quality.  
Audit and improvement  
Quality Assurance Cycle  
Sales and after-sales service  
Information Security and Privacy  
Fundamental Approach  
Product planning  
Collection of quality information  
in the market  
• Product plan formulation  
• Development target setting  
• Quality target setting, etc.  
Initiatives to Ensure Respect for Privacy  
Dealer education and instruction  
Service parts warranty, etc.  
Cyber attacks are growing more sophisticated  
and complex. Their corporate targets have  
expanded from confidential information and  
information systems to include the networks of  
systems that control plants and vehicles, such as  
those for on-board devices. Information security is  
thus an increasingly important priority for Toyota.  
Toyota considers ensuring the safety and peace  
of mind of its customers as well as protecting its  
customers’ personal information and other assets  
to be its social responsibility.  
In line with changes in the business environment,  
including business model transitions for the CASE  
era and recent increases in consumer awareness,  
the importance to Toyota of protecting personal  
information and ensuring respect for privacy is  
greater than ever. Accordingly, Toyota established  
the Privacy Code of Conduct in 2021. These  
guidelines lay out Toyota’s ideals for handling  
personal information and privacy-related informa-  
tion, indicating the way forward for the Company  
and employees as part of efforts to ensure that  
we can provide products and services that are  
sympathetic towards society and individuals.  
Quality Assurance  
Logistics  
Development  
Establishment and instruction of  
transportation standards  
Quality deterioration  
• Product basic plan formulation  
• Design quality assurance  
• Prototype evaluation, etc.  
prevention, etc.  
Purchasing  
Verification of supplier capability  
Conclusion of business  
contracts, etc.  
Inspection  
Production preparations  
Inspection planning and  
implementation  
Checking and maintenance of  
inspection tools, equipment, etc.  
• Process and equipment planning  
• Process capability allocation  
• Inspection method establishment  
and measurement of initial  
products, etc.  
Production  
Information Security Initiatives  
Manufacturing quality assurance  
Process maintenance and  
control, etc.  
Toyota has established the All Toyota Security  
Guidelines (ATSG) covering subsidiaries and  
3
8
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Human Rights and Supply Chains  
Toyota’s Action Taken for Forced Labor of  
Migrant Workers (Statement on the Modern  
Slavery Acts)  
supply chain. We expect that collaboration with  
our platform partners will have a positive impact  
on the overall supply chain.  
Toyota will continue its efforts toward the  
realization of decent work in its direct and  
indirect operations.  
Initiatives for Compliance and Implementation  
To ensure their understanding and implementation  
of the guidelines, all Toyota suppliers are request-  
ed to periodically check the status of their imple-  
mentation using a self-inspection sheet.  
In October 2020, around 350 Tier-1 suppliers,  
which account for over 90% of our purchase  
volume in Japan, submitted the results of their  
self-inspections, indicating their status of  
implementation. At the same time, if we receive  
a report of a problem from an outside source, we  
investigate and, if needed, ask the supplier in  
question to correct it. We subsequently keep lines  
of communication with the supplier open to  
ensure the correction is made, thereby preventing  
recurrences and escalations.  
Human Rights  
Fundamental Approach  
To comply with the United Kingdom’s Modern  
Slavery Act 2015 and other similar legislation  
(such as Australia’s Modern Slavery Act 2018),  
Toyota issued the statement “Toyota’s action  
taken for Forced Labor of Migrant Workers  
(Statement on the Modern Slavery Acts),” covering  
its domestic and overseas production facilities.  
In this statement, we disclose Toyota’s commit-  
ment to the relevant laws and describe measures  
we have implemented to prevent any instance of  
modern slavery, including human trafficking, in  
either our direct operations or supply chain.  
Toyota’s action taken for Forced Labor of Migrant Workers  
Toyota refers to and respects the United Nations  
Guiding Principles on Business and Human Rights  
UNGP) and promotes actions related to human  
(
Japan Platform for Migrant Workers towards Responsible  
and Inclusive Society  
rights based on the UNGP. Seeking the happiness  
of others than ourselves is a part of Toyota’s  
founding principles and was a driving force that  
led to the invention of the automatic loom, which  
can be considered the beginning of Toyota. This  
spirit and pursuit is still within us today. Under the  
mission of “Producing Happiness for All,” within  
every country and every region in which we  
operate, we aim to be the best company in town,  
one that is both loved and trusted by the people.  
The automobile industry depends on the support  
of numerous people, including local communities,  
business partners (such as suppliers and dealers),  
and customers. We will continue to protect the  
human rights of our employees, customers, and  
all people involved in our business activities and to  
improve such protections in order to benefit society.  
Human Rights Policy  
Supply Chain  
Fundamental Approach  
Since its establishment, Toyota has worked  
closely with its suppliers in its manufacturing  
operations. As part of these efforts, Toyota has  
globally implemented its Basic Purchasing Policies  
in accordance with the spirit of mutual benefit  
based on mutual trust. We strive to maintain close  
relationships with existing and new suppliers as  
we work together to promote our Customer  
First policy.  
In 2009, we established the Supplier CSR  
Guidelines, laying out the role of businesses in  
society to facilitate efforts undertaken with our  
suppliers. In 2012, Toyota revised the guidelines  
to more clearly indicate its approaches to  
strengthening human rights monitoring and  
corrective actions taken in the supply chain and to  
conflict minerals.  
In 2021, we made further revisions focused  
mainly on addressing environmental and human  
rights issues that have grown more serious in  
recent years.  
When conducting business transactions, we  
conclude contracts that clearly spell out legal  
compliance, respect for human rights, and con-  
siderations for local and global environments.  
Internally, we work to raise the awareness of  
all our employees, including buyers, through  
seminars and training.  
(
Statement on Modern Slavery Acts)  
*
The process of identifying, preventing, and mitigating negative human  
rights impacts  
Responsible Sourcing of Cobalt  
Cobalt, used in batteries and other products  
necessary for automobile electrification, is an  
important mineral resource for Toyota. Toyota  
recognizes that there are concerns associated  
with the mining of cobalt regarding child labor and  
other human rights violations and abuses.  
Toyota has formulated its Policies and  
Approaches to Responsible Mineral Sourcing  
based on the OECD Due Diligence Guidance for  
Responsible Supply Chains of Minerals from  
Conflict-affected and High-risk Areas, and pro-  
motes responsible mineral procurement by such  
means as conducting surveys aimed at enhancing  
the transparency of its supply chain.  
Meanwhile, by participating in the activities of  
the RMI Cobalt Working Group, Toyota Motor  
North America (U.S.) is encouraging smelters and  
refiners to acquire related certifications.  
Toyota has been advancing activities to clarify  
its supply chain and identify smelters using the  
Cobalt Reporting Template, or CRT, provided by  
RMI. As of March 2020, the supply chain related  
to batteries, the primary component in which  
cobalt is used, has largely been clarified, with  
several smelters identified.  
Measures to Protect the Human Rights of  
Foreign Workers: Participation in the Japan  
Platform for Migrant Workers towards  
Responsible and Inclusive Society  
Toyota participates in the Japan Platform for  
Migrant Workers towards Responsible and  
Inclusive Society established by the Japan  
International Cooperation Agency (JICA). This  
platform is aimed at the protection of the human  
rights of foreign workers and the improvement of  
their working and living environments.  
In accordance with the platform’s code of  
conduct, Toyota recognizes that it has an obliga-  
tion to protect the human rights of foreign workers  
and to support the development of appropriate  
working and living conditions throughout the  
Human Rights Due Diligence*  
To address human rights-related issues throughout  
the supply chain, Toyota applies the Toyota  
Supplier Sustainability Guidelines, which specifi-  
cally state its expectation that its suppliers respect  
human rights. Working together with suppliers on  
risk monitoring, countermeasure development,  
tracking, and remediation, Toyota provides guidance  
and support to potentially affected stakeholders.  
Furthermore, we work with NGOs and other  
external stakeholders to both understand societal  
expectations and assess our prioritized activities  
from a third-party perspective. By doing so, we  
hope to increase transparency and ensure that  
corporate activities are fair and appropriate.  
Foreign trainees with one-year  
internship (Global Skill-up  
Training) completion certificates  
Toyota Supplier Guidelines  
Conflict Minerals Report  
3
9
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Diversity and Inclusion  
Fundamental Approach  
Women’s Participation in the Workplace  
holiday system that can be used by employees  
when going to hospital or other clinics. To ensure  
that people with disabilities are given fair opportu-  
nities, we send with them sign language interpreters,  
provide a variety of support tools and make  
workplace improvements as needed.  
(Our employment rate of people with disabilities,  
including those serving at a special subsidiary, is  
2.46% as of June 2021.)  
Toyota Loops employees participate in the devel-  
opment of assisted mobility vehicles. For example,  
they have participated in evaluations (evaluating  
ease of getting in and out with a wheelchair) for  
vehicle development and provided opinions on  
aspects of the development of automated  
driving vehicles.  
Toyota’s strength lies in our capacity to respect our  
employees’ abilities to think and promote transfor-  
mation involving every member. Toward the  
transformation from an automotive company into  
a mobility company to leverage recent technical  
innovations centered on CASE, this capacity is  
growing increasingly important as we continue to  
create innovations steadily in existing areas while  
taking on challenges in new areas. Amid such an  
environment, Toyota considers diversity and  
inclusion to be one of the key elements of our  
business infrastructure, and we are working to  
create an attractive workplace where employees  
with wide-ranging skills and values, irrespective of  
gender, age, nationality, race, ethnicity, creed,  
religion, sexual orientation, gender identity, disability,  
marital status or the presence of children, can  
demonstrate their abilities to the fullest and achieve  
self-realization. In order to become a company  
that is needed and chosen by society, we are  
promoting collaboration with a wide variety of  
partners both inside and outside the company  
while putting into practice the values Toyota has  
embraced since our founding, such as the attitude  
of humbly learning and taking on challenges from  
the customer’s viewpoint.  
Although we have constantly striven to nurture  
a corporate culture where all employees including  
women can demonstrate their full potential across  
our operation around the world, we recognize that  
gender diversity has been an issue, particularly at  
Toyota Motor Corporation in Japan.  
In 2002, we started initiatives at Toyota Motor  
Corporation centered on expanding and estab-  
lishing measures to support women who are  
trying to balance work and childcare. Then, in  
2012, we began focusing on initiatives for creating  
a work environment that would help women gain  
motivation and supporting their participation  
(especially the development of female managers).  
LGBT-related Initiatives  
Creating a Work Environment “Toyota Loops”  
Toyota Loops Corporation began operation in April  
2009 with 28 people with disabilities and received  
certification from the Minister of Health, Labour  
and Welfare as a special subsidiary of Toyota  
Motor Corporation in October of that year.  
Toyota Loops primarily handles work that is  
outsourced from Toyota such as internal printing,  
mail services, enclosing catalogues and document  
digitization, performing a variety of office support  
tasks. As of June 2021, Toyota Loops employed  
340 persons with disabilities. The number of  
support staff has also been increased to eliminate  
or reduce any anxieties that employees may have  
regarding their health or work.  
Toyota has launched initiatives with the aim of  
creating workplaces with a good understanding,  
awareness and inclusion of LGBT people.  
At Toyota Motor Corporation, prohibition on  
discrimination or harassment of LGBT people has  
been incorporated into the employee behavioral  
guidelines, and we no longer require new graduates  
to fill in their sex on their job application sheets.  
We have been introducing measures related to  
facilities, such as establishing an internal harassment  
consultation hotline and allocating dedicated  
toilets for LGBT people at Head Office and the  
Nagoya office. Starting from July 2020, we have  
introduced revised internal systems to allow  
employees in same-sex marriages or common-law  
marriages to use the same internal benefit  
systems as those in legal marriages (holidays,  
employee benefits, etc.).  
Initiatives to Empower Persons  
with Disabilities  
We provide various work opportunities to those  
with disabilities based on the concept of a harmo-  
nious society in which all persons with or without  
disabilities work and live together in harmony. We  
offer a variety of support to enable people with  
disabilities to work energetically, utilizing their  
abilities to the full.  
For example, we have assigned a job consul-  
tant to each office, created a consultation hotline  
that ensures privacy, and introduced a special  
Toyota Loops Employees Participating  
in Development  
As a form of work and contribution uniquely  
available to people with disabilities, some of the  
Promotion of Female Employee Participation: Our Challenge and Course of Action (Toyota Motor Corporation)  
Social Recognition  
Our Challenge  
Target  
The ratio of females in managerial positions is low  
In May 2021, Toyota Motor  
North America was ranked  
seventh in the comprehen-  
sive category of the “Top 50  
Companies For Diversity  
The number of females in managerial positions in 2014 to be increased fourfold by 2025, and fivefold by 2030  
To maintain certain hiring rates for female graduates (40% or above for administrative positions and 10% or  
above for engineering positions) and the active hiring of women throughout the year  
Hiring  
System Development  
The creation of a system that reports on the progress of female training in each department to our board members  
Our Course  
of Action  
2021,” a diversity ranking  
Employee Development The development and implementation of a plan for individual employee development action plan as well as  
Action Plan  
Networking  
the utilization of a mentoring system  
sponsored by U.S.-based  
Diversity Inc.  
Host a global women’s conference and symposium that the managerial class and female promotion  
candidates can participate in  
4
0
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Promotion of Female Employee Participation: Initiatives at Major Global Operations  
Toyota Motor Europe NV/SA (TME) (Belgium)  
Toyota Motor (China)  
Investment Co., Ltd.  
TMCI) (China)  
Toyota Motor North America (TMNA) (The United States)  
(
Held company-wide events during the week of International  
Women’s Day (Video message by top management,  
workshops, etc.)  
• Networking to promote  
gender diversity  
• Annual North American Women’s Conference, to which all executive level  
• Unconscious bias awareness  
training for all managers  
women and many high-potential women in middle management positions, as  
well as male directors and executives are invited to attend for networking and  
encouraging women’s participation and advancement in the workplace  
Active hiring of promising candidates to  
career positions  
Breastfeeding break of up to one  
hour each day for lactating  
female employees  
Working couple support: Home-working system, part-time  
working regimes, support in finding employment for spouses  
of employees temporary transferred to TME  
Executive D&I scorecards have KPIs on managers making improvements in their  
areas to promote initiatives  
• Conducted unconscious bias awareness training for  
all managers  
Established the Outside Advisory Committee Focusing on Diversity, which is  
responsible for monitoring and reporting on the progress of diversity, including  
career development for women  
Female career development: Mentorship system,  
sponsorship system  
• Set targets in employment and management positions  
Toyota South Africa Motors (Pty) Ltd. (TSAM)  
South Africa)  
• Set up childcare facilities at multiple operation sites to allow flexible workstyles  
for employees taking care of their children  
(
Leadership workshops for  
Events sponsored by the Business Partnering Group (which provides  
networking and educational opportunities to employees as an organization  
representing the interests of minority groups)  
management to ensure acceptance  
of women and promote their  
participation and advancement  
in the workplace  
Toyota do Brasil Ltda. (TDB) (Brazil)  
Toyota Argentina S.A. (TASA) (Argentina)  
Set employment targets  
+
Toyota Daihatsu  
Engineering &  
Manufacturing Co., Ltd.  
Toyota Motor Corporation  
Australia Ltd. (TMCA)  
(Australia)  
(TDEM) (Thailand)  
KPIs Related to the Promotion of Women’s Participation in the Workplace  
We are continuing initiatives that promote women’s participation and  
advancement in the workplace so that the percentage of positions held by  
women, from initial hiring to executive positions, will consistently increase  
across our operation.  
Designated Women’s Day, which  
promotes an open conversation  
about the challenges women face in  
balancing their professional and  
personal lives  
• Healthy pregnancy program for  
pregnant employees: Guidance and  
advice related to health conditions,  
as well as orientation on  
Percentage of Women Hired at our Entities in Each Country/Region (FY2021)  
Percentage of women [%]  
• Held Annual Toyota Women’s  
Conference Australia  
breastfeeding and baby care  
Average period  
of employment  
• Set up nursing rooms  
• Conducted unconscious bias  
awareness training for all managers  
People Full-time Managerial Director  
hired employees positions positions  
(years)  
Set employment targets  
Global  
28.7  
16.6  
15.1  
11.8  
Male:16 Female:12  
Held dialogue between human  
resources division and management  
to promote diversity within  
the company  
Toyota Motor Corporation (Japan)  
TMNA (U.S.)  
2
6.6  
8.2  
12.7  
23.7  
34.1  
46.3  
33.1  
28.2  
7.5  
2.7  
25.2  
18.8  
39.7  
16.0  
20.1  
7.2  
13.3  
35.0  
0
Male:18 Female:14  
Male:12 Female:11  
Male:12 Female:11  
Male: 7 Female: 9  
Male:13 Female:11  
Male:12 Female: 8  
Male:10 Female: 9  
Male:18 Female:13  
2
Introduced the mentor system to  
support female leaders  
TME (Belgium)  
31.4  
30.0  
50.0  
36.0  
38.4  
50.0  
• Allowed working from home  
Introduced Soft-Landing Program in  
support of employees returning to  
work after childbirth  
TMCI (China)  
5.9  
0
• Female prayer room  
• Assigned a special day when employees are  
allowed to bring their children to work  
Reserved parking area for  
pregnant employees  
TDEM (Thailand)  
Introduced female voices in the Executive Management Committee  
• Support for nursing care costs for  
employees who return to work early  
TMCA (Australia)  
TDB (Brazil) + TASA (Argentina)  
TSAM (South Africa)  
0
• Sponsorship program for female executive candidates  
Provide all employees with children  
with equipment necessary for school  
Set employment targets and management position targets,  
conducted strategic recruitment activities  
0
Offered reskilling programs for career development  
18.2  
11.3  
14.3  
(
specialized knowledge on IT, etc.)  
4
1
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
A Case Study: Response to the COVID-19 Pandemic  
How it happened: Toyota Production System Leads to  
100-fold Increase in Protective Gown Production  
Employees, Safety and Health, and Social Contribution Activities  
Employees  
work at Toyota, regardless of their school or  
academic background.  
Global Employee Development  
properly to the occurrence of infection as an  
urgent issue and is working to address this issue  
in view of the impact not only on its own business  
activities but also on society.  
Our measures to prevent the spread of COVID-19  
therefore place the highest priority on the safety and  
security of our employees and their families, customers,  
suppliers, and all other stakeholders.  
Fundamental Approach  
• Promote the recruitment of diverse people from  
universities from which no graduates have  
previously been hired by Toyota, technical  
colleges, vocational schools and high schools.  
4 Course-specific recruitment of new graduates  
• To accelerate the development of professional  
human resources, hire students who have  
a concrete vision of what they want to do at  
Toyota and determine the course they will be  
assigned to at the time of recruitment, thereby  
ensuring the recruitment of diverse human  
resources suited to the characteristics of specific  
workplaces, such as with IT-related personnel.  
To develop employees capable of implementing the  
Toyota Philosophy globally, Toyota is providing  
training through global executive development,  
along with human resource development undertaken  
by Toyota Motor Corporation in Japan and human  
resource development undertaken by affiliates in  
other regions.  
Toward achieving transformation into a mobility  
company, Toyota is committed to both “realizing  
advanced monozukuri (manufacturing) with higher  
quality and efficiency based on Toyota Production  
System (TPS)” and “taking on challenges in new  
areas.” To this end, Toyota encourages its  
employees to reexamine their workstyles and  
hone their individual abilities, thereby enhancing  
the workplace structures.  
Toyota also seeks employees equipped with both  
the ability to act and empathy,* and promotes the  
recruitment, training, and evaluation of employees  
based on these abilities. In this process, Toyota  
identifies the roles and abilities of each individual,  
ensuring the placement of the right person in the  
right position regardless of their nationality,  
gender, year of joining Toyota, form of recruitment,  
academic background, job type, and other factors,  
with the aim of enhancing the competitiveness of the  
company and its organizations.  
Workplace Vaccination  
Global Executive Human Resource Development  
The Global 21 Program is to provide skilled  
employees around the world with knowledge  
suitable for global Toyota executives and to  
exercise their strengths to the best of their ability  
in their respective areas of responsibility.  
The program comprises the following three pillars.  
1 Indication of management philosophy and  
expectations of executives  
In June 2021, to help as many local people as  
possible get vaccinated as soon as possible,  
Toyota launched its workplace vaccination program  
for approximately 80,000 persons, including its  
employees, suppliers, and in-plant contractors.  
Evaluation of and Feedback to Employees  
Social Contribution Activities  
The work roles of Toyota employees and the main  
focus of their work are to be fulfilled in accordance  
with policies. Evaluation and feedback are based  
on close communications between subordinates  
and superiors.  
Specifically, roles and main focus are deter-  
mined at the beginning of each fiscal year and  
employees consult with their supervisors periodi-  
cally. Through these consultations, supervisors  
assess the employees’ self-evaluations and  
provide feedback. Repeating this cycle leads to  
employees’ capacity development. In addition, we  
carry out 360-degree feedback for the purpose of  
employee growth. By giving employees feedback  
on their strengths and weaknesses from people  
working with them, we help them reflect on their  
own actions and make improvements.  
The revision of our personnel system in 2019  
brought a shift in the system, allowing hard  
workers to be rewarded regardless of age or  
qualifications. Furthermore, in 2020, we introduced  
a system capable of centrally managing employees’  
individual information, including employee  
evaluations, the results of consultations with their  
supervisors and questionnaire results regarding  
workplace management. This system has made it  
possible to refer to each employee’s previous  
evaluations, personnel information and stated  
intent, thereby enhancing the development and  
allocation of employees with consistency through  
job assignment based on a better understanding  
of employee aptitude and intent. Results for each  
half year are reflected in bonuses and performance  
abilities demonstrated over the past year are  
reflected in salary raises for the following year.  
Toyota has a long history of social contribution  
that traces back to the desire of Sakichi Toyoda—  
the father of Toyota Motor Corporation’s founder,  
Kiichiro Toyoda—to support inventions that would  
enrich people’s lives.  
Disseminating Toyota Philosophy and incorporating  
it into global personnel system and training.  
2 Human resource management  
Applying appropriate personnel evaluation stan-  
dards and processes in each region based on  
Toyota’s common values  
Kiichiro and his team, who together built  
*
Empathy: The ability to make efforts for others, such as customers  
and teammates, and the ability to learn respectfully from others and  
keep improving  
Toyota’s automotive business, kept this spirit of  
social contribution alive after Sakichi’s death,  
espousing the concepts of contributing to the  
development and welfare of the country and  
remembering to always be grateful. These con-  
cepts were eventually woven into the Five Main  
Principles of Toyoda. In various forms, this spirit of  
social contribution has been handed down to today.  
We have identified the areas that we will focus  
on: a “harmonious society”; “human asset devel-  
opment” and “community co-creation” aimed at  
achieving the SDGs; and “Mobility for All,” which  
Toyota is working to promote through our main  
business. In these areas, we will contribute to  
establishing a global society in which everyone  
can live a rich and dynamic life.  
3
Assignment deployment and training programs  
Global assignments and executive training are  
carried out.  
Recruitment  
Safety and Health  
To hire an ideal candidate profile, Toyota has  
revised its conventional recruitment course  
as follows:  
Fundamental Approach  
1
Recruitment criteria  
Toyota’s mission, as defined by the Toyota  
To accelerate the introduction of workstyles  
based on teamwork and alliances in preparation  
for the launch of mobility services, recruit more  
people who are attractive for other employees to  
work with.  
Philosophy, is “Producing Happiness for All.” To  
this end, we conduct corporate activities based  
on the concept that all people working for Toyota,  
including our employees, suppliers, and in-plant  
contractors, can stay physically and mentally healthy  
and continue to play an active role in a safe work  
environment. While health and safety policies and  
KPIs are being formulated by the company safety  
and health supervising manager, efforts are made at  
all workplaces in all regions to improve their safety  
and health activities in line with these policies. The  
results of these efforts, including the status of the  
occurrence of diseases and accidents, are reported  
at the Management Meeting.  
Place greater emphasis in recruitment on empathy  
and the passion to realize their dream at Toyota.  
Enhancing mid-career recruitment  
For the issues in each area, we all have a sense  
of ownership and take action on a genchi genbutsu  
(onsite, hands-on experience) basis. We will work  
together with our partners who share the same  
aspirations for the future in addressing issues that  
are difficult to solve solely by ourselves.  
2
To introduce external knowledge and promote  
the reexamination of work processes and  
workstyles, increase mid-career hires from 10%  
to 34% (FY2021 result). The medium-term  
target is to increase mid-career hires to 50%.  
Details of our social contribution activities  
(
Administrative and engineering positions)  
Introduce referrals (introduction by Toyota  
employees) and other new means of recruitment.  
Hiring new graduates with  
Response to Infectious Diseases  
3
diverse backgrounds  
To ensure diversity in our employees, hire  
persons with empathy who passionately want to  
Toyota positions preventing the spread of  
COVID-19 novel coronavirus and responding  
Response to the COVID-19  
pandemic: Supporting the  
manufacture of protective gowns  
4
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Messages from the Outside Directors  
Quality, Information Security, and Privacy  
Employees, Safety and Health, and Social Contribution Activities  
Corporate Governance  
Capital Strategy  
Diversity and Inclusion  
Risk Management and Compliance  
The Environment  
Safety  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Human Rights and Supply Chains  
Risk Management and Compliance  
Through this process of BCP formulation and  
review, we aim to develop risk-resilient  
organizations, workplaces, and individuals.  
officials, the Guidelines include stipulations that  
prohibit bribery and corrupt practices involving  
others who are not public officials and require the  
preparation and retention of accurate accounting  
records, the reporting of any improprieties discov-  
ered, and cooperation with investigations.  
Through these and other measures, we strive to  
prevent bribery and corruption.  
have. We promote awareness of the hotline using  
the Company intranet and various other media.  
Consultations can be submitted through a law  
firm, the Company website, email, telephone, or  
other means. For topics related to employees or  
workplaces, the hotline is also open to third  
parties, including employees’ family members and  
business partners, in addition to employees.  
The content of a consultation is passed to the  
division responsible either anonymously or openly,  
as requested by the hotline user, and is investigated  
carefully to ensure that hotline users who wish to  
remain anonymous cannot be identified. If the  
results of the investigation indicate an issue,  
a response is implemented immediately.  
Risk Management  
Fundamental Approach  
Amid a period of tremendous change in the  
conditions and priorities of the automotive industry,  
including the push toward carbon neutrality and  
CASE, Toyota is always taking on new challenges  
and has been working to reinforce its risk man-  
agement structure to handle the corresponding  
increase in uncertainty. Toyota has appointed  
a Chief Risk Officer (CRO) and Deputy Chief Risk  
Officer (DCRO) charged with global risk manage-  
ment. Under the supervision of the Board of  
Directors, the CRO and DCRO are working to  
prevent and mitigate the impact of risks that could  
arise in Toyota’s global business activities.  
Beneath the CRO and DCRO are Regional  
CROs appointed to manage risk management in  
specific regions. At head office departments (such  
as Accounting and Purchasing), risk management  
by function is assigned to chief officers and risk  
managers of individual divisions, while at in-house  
companies, risk management by product is  
assigned to the company presidents and risk  
managers of individual divisions. This structure  
enables coordination and cooperation between  
the regional head offices and sections.  
Building a Disaster-resilient Supply Chain  
Toyota provides disaster recovery support in the  
following order of priority: (1) Humanitarian aid; (2)  
Early recovery of the affected area; (3) Restoration  
of Toyota’s operations and production. Since the  
Great East Japan Earthquake, we have worked  
with suppliers in each country and region to build  
a disaster-resilient supply chain by sharing supply  
chain information and setting up measures for  
prompt initial action and early recovery.  
Anti-bribery Guidelines  
Taxation-related Initiatives  
Since its founding, Toyota has aspired to enrich  
peoples’ lives through car making and to enrich  
local economies by creating employment and  
paying taxes as a corporate presence firmly  
rooted in local communities.  
Toyota seeks to achieve sustainable financial  
performance through the Toyota Production  
System (TPS) and cost reduction and commits to  
its responsibility to making appropriate tax pay-  
ments as the most basic form of social contribu-  
tion in the communities in which it operates.  
(Hotline consultations handled in fiscal 2021: 624)  
Compliance  
Checks to Enhance Compliance  
Fundamental Approach  
Every year, we implement checks including global  
subsidiaries, to enhance compliance. Fields to be  
checked are selected by assessing risk levels and  
importance to Toyota. In fiscal 2021, checks were  
carried out to examine compliance with the  
Antimonopoly Law, bribery/corruption prevention,  
compliance with the Act on the Protection of  
Personal Information, and other topics. Issues or  
matters requiring improvement identified through  
checks are incorporated into the next fiscal year’s  
action plans to ensure ongoing improvement and  
engagement after the checks conclude.  
The Guiding Principles at Toyota state that Toyota  
shall “honor the language and spirit of the law of  
every country and region, and undertake open and  
fair business activities to be a strong corporate citizen  
of the world.” Toyota believes that by adhering to this  
principle in its actions, it can fulfill its corporate social  
responsibility and ensure compliance.  
The Toyota Code of Conduct outlines the basic  
frame of mind that all Toyota personnel should  
adopt. It sets forth concrete guidelines to assist  
them in upholding the Guiding Principles at Toyota  
and doing their part to ensure that Toyota carries  
out its corporate social responsibility. A booklet  
containing the Toyota Code of Conduct is  
distributed to all employees as part of efforts to  
ensure compliance.  
Tax Policy  
“Speak Up” Hotline  
Toyota’s “Speak Up” Hotline enables quick and  
appropriate responses to workplace- and  
work-related concerns, complaints, or questions  
that employees and other relevant parties may  
Business Continuity Management at Toyota  
Following the Great East Japan Earthquake and  
other major disasters, Toyota has in the past been  
unable to continue production for long stretches of  
time, causing difficulties for customers. Based on  
these experiences, to prepare for such emergencies,  
we formulate business continuity plans (BCPs) for  
quickly restoring business operations using limited  
resources. Toyota works to constantly improve the  
practical effectiveness of its BCPs through the  
implementation of a PDCA cycle, including training.  
These activities constitute our business continuity  
management (BCM), promoted through coordination  
among employees and their families, Toyota Group  
companies and suppliers, and Toyota.  
Key Compliance Enforcement Initiatives  
To ensure that awareness of compliance extends from top management  
to each employee, Toyota provides compliance training at career  
milestones, such as upon hiring, promotion, and foreign assignment.  
Compliance training  
Toyota Code of Conduct  
Personnel from related specialist divisions hold the Business  
Compliance Seminar every year, providing lectures on laws and regula-  
tions that employees must understand when carrying out their work.  
Business Compliance Seminar  
Bribery and Corruption  
Prevention Measures  
The Legal Handbook for Corporate Officers is posted on the  
Company intranet, and relevant explanations are provided for newly  
appointed officers.  
Legal Handbook for  
Corporate Officers  
Toyota adopted the Anti-bribery Guidelines for  
internal divisions and business partners in 2012 to  
promote the eradication of bribery and corruption.  
In addition to prohibiting the bribery of public  
Individual training is carried out in the form of e-learning and lectures  
provided in response to individual divisions’ needs and requests.  
Individual training  
4
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Message from the President  
Corporate Data  
Global Perspective/Data by Region  
History  
Financial Summary Corporate Information and Stock Information  
Board of Directors and Audit & Supervisory Board Members  
Brief career summary  
Brief career summary  
Apr. 1969 Joined Toyota Motor Corporation  
Jan. 1996 Chief Engineer of Vehicle Development Center 2 of  
Toyota Motor Corporation  
Jun. 1998 Member of the Board of Directors of Toyota Motor Corporation  
Jun. 2001 Managing Director of Toyota Motor Corporation  
Jun. 2003 Senior Managing Director of Toyota Motor Corporation  
Jun. 2005 Executive Vice President of Toyota Motor Corporation  
Apr. 1977 Joined Toyota Motor Sales Co., Ltd.  
Jun. 2005 Division General Manager of Public Affairs Division of  
Takeshi  
Shigeru  
Toyota Motor Corporation  
Uchiyamada  
Hayakawa  
Jun. 2007 Managing Officer of Toyota Motor Corporation  
Sep. 2007 President of Toyota Motor North America, Inc.  
Jun. 2009 Retired as President of Toyota Motor North America, Inc.  
Apr. 2012 Senior Managing Officer of Toyota Motor Corporation  
Jun. 2015 Member of the Board of Directors and Senior Managing Officer  
of Toyota Motor Corporation  
Apr. 2017 Vice Chairman of Toyota Motor Corporation (to present)  
Male  
August 17, 1946  
Male  
September 15, 1953  
Chairman of the  
Vice Chairman of  
the Board of  
Directors  
Jun. 2012 Vice Chairman of Toyota Motor Corporation  
Board of Directors  
Jun. 2013 Chairman of Toyota Motor Corporation (to present)  
Position and areas of responsibility  
Chairman of the Board  
of Directors  
Chairman of the Executive  
Appointment Meeting  
Chairman of the Executive  
Compensation Meeting  
Position and areas of responsibility  
Chief Privacy Officer  
Brief career summary  
Brief career summary  
Apr. 1984 Joined Toyota Motor Corporation  
May 2000 Project General Manager of GAZOO Business Division and  
Domestic Marketing Division’s Operational Improvement  
Support Office of Toyota Motor Corporation  
Jun. 2000 Member of the Board of Directors of Toyota Motor Corporation  
Jun. 2002 Managing Director of Toyota Motor Corporation  
Jun. 2003 Senior Managing Director of Toyota Motor Corporation  
Jun. 2005 Executive Vice President of Toyota Motor Corporation  
Jun. 2009 President of Toyota Motor Corporation (to present)  
Apr. 1972 Joined Toyota Motor Corporation  
Jun. 2004 Executive Director of DENSO CORPORATION  
Jun. 2007 Senior Executive Director, Member of the Board of Directors of  
Akio  
Koji  
Toyoda  
Kobayashi  
DENSO CORPORATION  
Male  
May 3, 1956  
Male  
October 23, 1948  
Jun. 2010 Executive Vice President of DENSO CORPORATION  
Jun. 2015 Vice Chairman of DENSO CORPORATION  
Feb. 2016 Advisor to Toyota Motor Corporation  
Apr. 2017 Senior Advisor to Toyota Motor Corporation  
Jan. 2018 Operating Officer (Executive Vice President) of Toyota Motor  
President, Member  
of the Board of  
Directors  
Member of the  
Board of Directors  
Corporation  
Jan. 2018 Member of the Board of Directors of DENSO CORPORATION  
Jun. 2018 Retired as member of the Board of Directors of DENSO  
Position and areas of responsibility  
Chief Risk Officer  
CORPORATION  
Member of the Executive  
Appointment Meeting  
Member of the Executive  
Compensation Meeting  
Jun. 2018 Member of the Board of Directors of Toyota Motor Corporation  
Apr. 2020 Member of the Board of Directors and Operating Officer of  
Position and areas of responsibility  
Chief Executive Officer  
(Note) Akio Toyoda, who is President, Member of the Board of Directors,  
concurrently serves as an Operating Officer (President).  
Toyota Motor Corporation (to present)  
Brief career summary  
Brief career summary  
Aug. 1999 Japan Society for the Promotion of Science (JSPS)  
Apr. 1991 Joined Toyota Motor Corporation  
Jan. 2017 Division General Manager of Accounting Division of  
Toyota Motor Corporation  
Jun. 2018 Managing Officer of Toyota Motor Corporation  
Jul. 2019 Operating Officer of Toyota Motor Corporation  
James  
Kenta  
Kon  
Postdoctoral Research Fellow  
Kuffner  
Jan. 2002 Research Scientist of Carnegie Mellon University  
Jan. 2005 Assistant Professor of Carnegie Mellon University  
Jan. 2008 Associate Professor of Carnegie Mellon University  
Sep. 2009 Adjunct Associate Professor of Carnegie Mellon University  
Sep. 2009 Research Scientist of Google Inc.  
Jul. 2013 Engineering Director of Google Inc.  
Jan. 2016 Retired as Engineering Director of Google Inc.  
Jan. 2016 Chief Technology Officer of Toyota Research Institute, Inc.  
Male  
January 18, 1971  
Male  
August 2, 1968  
Jun. 2021 Member of the Board of Directors and Operating Officer of  
Toyota Motor Corporation (to present)  
Member of the  
Board of Directors  
Member of the  
Board of Directors  
Mar. 2018 Retired as Adjunct Associate Professor of Carnegie  
Mellon University  
Mar. 2018 Chief Executive Officer of Toyota Research Institute -  
Advanced Development, Inc.  
Position and areas of responsibility  
Chief Digital Officer  
Mar. 2018 Executive Advisor to Toyota Research Institute  
Jan. 2020 Senior Fellow of Toyota Motor Corporation  
Jun. 2020 Member of the Board of Directors and Operating Officer of  
Position and areas of responsibility  
Chief Financial Officer  
Toyota Motor Corporation (to present)  
Jan. 2021 Toyota Research Institute—Advanced Development, Inc.  
changed its corporate name to Woven Core, Inc. and was  
reorganized into the Woven Planet Group.  
Jan. 2021 Chief Executive Officer and Representative Director of Woven  
Planet Holdings, Inc. (to present)  
4
4
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Corporate Information and Stock Information  
Message from the President  
Corporate Data  
Global Perspective/Data by Region History Financial Summary  
Brief career summary  
Brief career summary  
Apr. 1981 Joined Ministry of International Trade and Industry  
Jul. 1989 Founding President of the International Wheelchair  
Basketball Federation  
Dec. 2001 President of the International Paralympic Committee  
Jul. 2002 Retired as President of the International Wheelchair  
Basketball Federation  
Sep. 2017 Retired as President of the International Paralympic Committee  
Ikuro  
Sir Philip  
Craven  
Jul. 2010 Director-General of the Industrial Science and Technology  
Policy and Environment Bureau, Ministry of Economy,  
Trade and Industry  
Sugawara  
Male  
March 6, 1957  
Male  
Sep. 2012 Director-General of the Manufacturing Industries Bureau,  
July 4, 1950  
Ministry of Economy, Trade and Industry  
Jun. 2013 Director-General of the Economic and Industrial Policy Bureau,  
Jun. 2018 Member of the Board of Directors of Toyota Motor Corporation  
Member of the  
Board of Directors  
Member of the  
Board of Directors  
Ministry of Economy, Trade and Industry  
(to present)  
Jul. 2015 Vice-Minister of Ministry of Economy, Trade and Industry  
Jul. 2017 Retired from the Ministry of Economy, Trade and Industry  
Aug. 2017 Special Advisor to the Cabinet  
Outside  
Independent  
Jun. 2018 Retired as Special Advisor to the Cabinet  
Outside  
Independent  
Jun. 2018 Member of the Board of Directors of Toyota Motor Corporation  
(to present)  
Position and areas of responsibility  
Position and areas of responsibility  
Member of the Executive Appointment Meeting  
Member of the Executive Compensation Meeting  
Member of the Executive Appointment Meeting  
Member of the Executive Compensation Meeting  
Brief career summary  
Apr. 1987 Joined Sumitomo Bank, Limited  
Apr. 2014 Executive Officer of Sumitomo Mitsui Banking Corporation  
Apr. 2017 Managing Executive Officer of Sumitomo Mitsui Banking  
Teiko  
Kudo  
Corporation  
Female  
Jun. 2018 Member of the Board of Directors of Toyota Motor Corporation  
May 22, 1964  
(to present)  
Apr. 2020 Senior Managing Executive Officer of Sumitomo Mitsui  
Banking Corporation  
Apr. 2020 Senior Managing Executive Officer of Sumitomo Mitsui  
Member of the  
Board of Directors  
Financial Group, Inc.  
Mar. 2021 Director and Senior Managing Executive Officer of Sumitomo  
Mitsui Banking Corporation (to present)  
Apr. 2021 Senior Managing Corporate Executive Officer of Sumitomo  
Outside  
Independent  
Mitsui Financial Group, Inc.  
Jun. 2021 Director and Senior Managing Executive Officer of Sumitomo  
Mitsui Financial Group, Inc. (to present)  
Position and areas of responsibility  
Member of the Executive Appointment Meeting  
Member of the Executive Compensation Meeting  
4
5
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Corporate Information and Stock Information  
Message from the President  
Corporate Data  
Global Perspective/Data by Region History Financial Summary  
Brief career summary  
Apr. 1975 Joined Ministry of Finance  
Jul. 2007 Director-General of the Tax Bureau, Ministry of Finance  
Jul. 2009 Commissioner of the National Tax Agency  
Jul. 2010 Retired as Commissioner of the National Tax Agency  
Jan. 2011 Senior Managing Director of Japan Securities Depository Center, Inc.  
Jun. 2011 President and Chief Executive Officer of Japan Securities  
Depository Center, Inc.  
Jun. 2013 Member of the Board of Directors of Toyota Motor Corporation  
Jul. 2015 Director, Representative Executive Officer and President of  
Brief career summary  
Oct. 1972 Joined Toyota Motor Corporation  
Jun. 2007 President of Toyota Motor Corporation Australia Ltd.  
May 2014 Chairman of Toyota Motor Corporation Australia Ltd.  
Dec. 2017 Retired as Chairman of Toyota Motor Corporation  
Haruhiko  
Kato  
Masahide  
Yasuda  
Male  
Male  
Australia Ltd.  
July 21, 1952  
April 1, 1949  
Jun. 2018 Audit & Supervisory Board Member of Toyota Motor  
Corporation (to present)  
Full-time Audit &  
Supervisory Board  
Member  
Full-time Audit &  
Supervisory Board  
Member  
Japan Securities Depository Center, Inc.  
Jun. 2018 Retired as member of the Board of Directors of  
Toyota Motor Corporation  
Mar. 2019 Retired as Representative Executive Officer, President and  
CEO of Japan Securities Depository Center, Inc.  
Jun. 2019 Audit & Supervisory Board Member of Toyota Motor Corporation (to present)  
Jun. 2019 Retired as Director of Japan Securities Depository Center, Inc.  
Brief career summary  
Brief career summary  
Apr. 1985 Joined Toyota Motor Corporation  
Jan. 2018 General Manager of Audit & Supervisory Board Office of  
Toyota Motor Corporation  
Jun. 2019 Audit & Supervisory Board Member of Toyota Motor  
Apr. 1993 Professor of Faculty of Business and Commerce of  
Katsuyuki  
Ogura  
Yoko  
Keio University  
Jun. 2011 Audit & Supervisory Board Member of Toyota Motor  
Corporation (to present)  
Apr. 2013 Professor Emeritus of Keio University (to present)  
Wake  
Male  
Female  
November 18, 1947  
Corporation (to present)  
January 25, 1963  
Full-time Audit &  
Supervisory Board  
Member  
Audit &  
Supervisory Board  
Member  
Outside  
Independent  
Brief career summary  
Brief career summary  
Jul. 2012 Prosecutor-General  
Jul. 2014 Retired as Prosecutor-General  
Sep. 2014 Registered as Attorney  
Apr. 1974 Joined The Mitsubishi Bank, Ltd.  
Jun. 2001 Executive Officer of The Bank of Tokyo-Mitsubishi, Ltd.  
Oct. 2005 Member of the Board of Directors of Mitsubishi UFJ Financial  
Hiroshi  
Ozu  
Nobuyuki  
Hirano  
Jun. 2015 Audit & Supervisory Board Member of Toyota Motor Corporation  
Group, Inc.  
Male  
Male  
(to present)  
Jan. 2006 Member of the Board of Directors, Managing Executive Officer  
July 21, 1949  
October 23, 1951  
of The Bank of Tokyo-Mitsubishi UFJ, Ltd.  
Oct. 2008 Member of the Board of Directors, Senior Managing Executive  
Audit &  
Supervisory Board  
Member  
Audit & Supervisory  
Board Member  
Officer of The Bank of Tokyo-Mitsubishi UFJ, Ltd.  
Jun. 2009 Deputy President of The Bank of Tokyo-Mitsubishi UFJ, Ltd.  
Jun. 2009 Managing Executive Officer of Mitsubishi UFJ Financial Group, Inc.  
Oct. 2010 Member of the Board of Directors, Deputy President of  
Outside  
Independent  
Mitsubishi UFJ Financial Group, Inc.  
Outside  
Independent  
Apr. 2012 President & CEO of The Bank of Tokyo-Mitsubishi UFJ, Ltd.  
Apr. 2012 Member of the Board of Directors of Mitsubishi UFJ Financial  
Group, Inc.  
Apr. 2013 President & CEO of Mitsubishi UFJ Financial Group, Inc.  
Jun. 2015 Member of the Board of Directors, President & Group CEO of  
Mitsubishi UFJ Financial Group, Inc.  
Apr. 2016 Chairman of the Board of Directors of Bank of Tokyo-Mitsubishi  
UFJ, Ltd.  
Jun. 2018 Audit & Supervisory Board Member of Toyota Motor  
Corporation (to present)  
Apr. 2019 Member of the Board of Directors, Chairman of Mitsubishi UFJ  
Financial Group, Inc.  
Apr. 2019 Member of the Board of Directors of MUFG Bank, Ltd.  
Apr. 2020 Retired as member of the Board of Directors of MUFG Bank, Ltd.  
Apr. 2021 Member of the Board of Directors of Mitsubishi UFJ Financial  
Group, Inc.  
Jun. 2021 Retired as member of the Board of Directors of Mitsubishi UFJ  
4
6
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
Financial Group, Inc.  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Message from the President  
Corporate Data  
Global Perspective/Data by Region  
History  
Financial Summary  
Corporate Information and Stock Information  
Operating Officers and  
Organizational Structure  
(
As of December 2021)  
Akio Toyoda  
President, Chief Executive Officer  
Operating Officers  
Koji Kobayashi  
Chief Risk Officer  
Keiji Yamamoto  
Chief Information & Security Officer  
Chief Product Integration Officer  
Masamichi Okada  
Chief Production Officer  
Jun Nagata  
Chief Communication Officer  
Kenta Kon  
Chief Financial Officer  
Yumi Otsuka  
Chief Sustainability Officer  
Masahiko Maeda  
Chief Technology Officer  
Koji Sato  
Chief Branding Officer  
Masanori Kuwata  
Chief Planning Officer  
James Kuffner  
Chief Digital Officer  
Chief Human Resources Officer  
Audit & Supervisory Board Office / Internal Audit Dept.  
Head Office  
Business Unit  
Fellow  
CEO Office / Sustainability Management Dept.  
Toyota System Supply / Digital Transformation Promotion Dept.  
Mitsuru Kawai  
Executive Fellow  
Region  
Product  
CV Company  
Toyota ZEV Factory  
Frontier Research Center  
TPS Group  
Information Systems Group  
Accounting Group  
North America Region  
Europe Region  
East Asia, Oceania &  
Middle East Region  
Advanced R&D and  
Engineering Company  
Shigeki Terashi  
Executive Fellow  
Lexus International Co.  
Powertrain Company  
Latin America &  
Caribbean Region  
Carbon Neutral  
Advanced Engineering  
Development Center  
Sales Financial Business  
Group  
Japan Sales Business Group  
China Region  
Shigeki Tomoyama  
Executive Fellow  
Business Development  
Group  
Production Engineering  
Development Center  
Purchasing Group  
Asia Region  
Africa Support Div.  
Business Planning Div. /  
Sales & Operation Planning Div.  
KD Business Planning Div. /  
Sales & Marketing Support Div.  
Vehicle Development Center  
Toyota Compact Car Company  
Mid-size Vehicle Company  
Gill A. Pratt  
Chief Scientist and  
Executive Fellow for  
Research  
External & Public  
Affairs Group  
Customer First Promotion  
Group  
Connected Company  
GAZOO Racing Company  
General Administration &  
Human Resources Group  
Production Group  
Emerging-market Compact  
Car Company  
4
7
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Message from the President  
Corporate Data  
Global Perspective/Data by Region  
History  
Financial Summary Corporate Information and Stock Information  
Global Perspective/Data by Region  
Number of Plants  
and Manufacturing  
Companies  
R&D Sites  
(As of March 31, 2021)  
(
As of March 31, 2021)  
Number of Employees  
366,283  
Consolidated, as of March 31, 2021)  
(
North America  
Europe  
1
3
7
3
Asia, excluding  
Japan  
Japan  
5
Total Vehicle Production  
2
6
1
6
8
7
,552,896  
Other  
(Consolidated, fiscal 2021)  
4
7
0
Total Vehicle Sales  
Financial Highlights Fiscal 2021 (Consolidated) The second of each pair of figures is the year-on-year change.  
7
,646,105  
(
Consolidated, fiscal 2021)  
Total Vehicle Sales  
Sales Revenues  
Operating Income  
Net Income Attributable to  
Toyota Motor Corporation  
7
,646 thousand  
¥27,214.5 billion  
¥2,197.7 billion  
¥
2,245.2 billion  
-
1,309 thousand  
-8.9  
%
-8.4%  
+10.3%  
Total Liquid Assets  
Total Shareholder Return (Max)  
R&D Expenses  
Capital Expenditures  
Japan  
North America  
Europe  
Other  
¥
11,579.4 billion  
¥921.0 billion  
¥1,090.4 billion  
-¥19.9 billion  
¥1,293.2 billion  
-¥79.1 billion  
Asia, excluding Japan  
+
¥2,976.8 billion  
+¥110.2 billion  
4
8
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members Operating Officers and Organizational Structure  
Global Perspective/Data by Region History Financial Summary  
Message from the President  
Corporate Data  
Corporate Information and Stock Information  
History  
Founding and entry into  
the automobile industry  
Toward the mobility society of  
the future  
Establishing the Toyota identity  
Leaping forward as a global corporation  
Domestic/Overseas Vehicle Production (Thousands of units)  
(
Including Daihatsu and Hino brands since 2002)  
Domestic Overseas  
0,000  
1
8
6
4
2
,000  
Toyoda Model AA passenger  
car launched (1936)  
Toyopet Crown launched  
(1955)  
Corolla launched  
(1966)  
Celica launched  
(1970)  
Soarer launched  
(1981)  
Lexus LS400 launched  
(1989)  
Prius launched  
(1997)  
Mirai launched  
(2014)  
,00
,000  
,000  
0
History of Toyota  
Labor disputes (1950)  
Toyota Motor and Toyota Motor  
Sales merged with TMC (1982)  
Recall issues (2009–2010)  
Losses (FY 2009)  
TRI established  
(2016)  
Construction  
of the “Woven  
City” launched  
(2021)  
Toyota Motor Co., Ltd. established (1937)  
Total Quality Control (TQC) introduced (1961)  
Kanban method adopted (1963)  
Prius launched (1997)  
Toyoda Model AA passenger  
car launched (1936)  
Mirai launched (2014)  
NUMMI, a joint corporation  
with GM, established in  
the U.S. (1984)  
Toyota Environmental Challenge 2050  
established (2015)  
The Toyota Way 2001 adopted (2001)  
Five Main Principles  
of Toyoda  
established (1935)  
The Toyota  
Production System  
established  
Guiding Principles at Toyota  
adopted (1992)  
Toyota Global Vision adopted (2011)  
Toyota Philosophy  
and Toyota Way 2020  
established (2020)  
1935 1940  
1950  
1960  
1970  
1980  
1990  
2000  
2010  
2020  
Rapid economic growth period in Japan  
Berlin Wall comes down (1989)  
The Great East Japan Earthquake,  
Thailand floods (2011)  
The COVID-19  
pandemic  
emerged (2019)  
(1960s-1970s)  
World War II (1939-1945)  
U.S.-Japan trade friction (1980s)  
Oil crisis (1973 & 1979)  
Kyoto Protocol  
adopted (1997)  
The 2008 financial crisis (2008)  
Rio Earth Summit (1992)  
UN SDGs adopted (2015)  
Tighter control on exhaust  
emissions (1970s)  
Trade friction  
surrounding  
cars (1990s)  
Paris Agreement  
adopted (2015)  
Major World Events  
7
5 Years of Toyota  
4
9
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Message from the President  
Corporate Data  
Global Perspective/Data by Region  
History  
Financial Summary  
Corporate Information and Stock Information  
Financial Summary (Consolidated)  
U.S. GAAP  
IFRS  
Fiscal years ended March 31  
2012  
2013  
2014  
2015  
2016  
2017  
2018  
2019  
2020  
2020  
2021  
U.S. GAAP  
IFRS  
(
thousands  
of units)  
Consolidated Vehicle Sales  
7,352  
79  
8,871  
9,116  
100  
8,972  
8,681  
8,971  
8,964  
8,977  
8,958  
8,955  
7,646  
Yen to U.S. Dollar Rate  
83  
107  
110  
139  
120  
133  
108  
119  
111  
130  
111  
128  
109  
121  
109  
121  
106  
124  
Foreign  
Exchange Rates  
(
Average)  
Net Revenues  
Operating Income (Loss) Operating Income (Loss)  
Yen to Euro Rate  
Sales Revenues  
109  
134  
(billions of yen) 18,583.6  
22,064.1  
1,320.8  
1,403.6  
962.1  
285.0  
90  
25,691.9  
2,292.1  
2,441.0  
1,823.1  
522.9  
27,234.5  
2,750.5  
2,892.8  
2,173.3  
631.3  
28,403.1  
2,853.9  
2,983.3  
2,312.6  
645.5  
27,597.1  
1,994.3  
2,193.8  
1,831.1  
627.5  
29,379.5  
2,399.8  
2,620.4  
2,493.9  
642.6  
30,225.6  
2,467.5  
2,285.4  
1,882.8  
626.8  
29,929.9  
2,442.8  
2,554.6  
2,076.1  
610.8  
29,866.5  
2,399.2  
2,792.9  
2,036.1  
610.8  
27,214.5  
2,197.7  
2,932.3  
2,245.2  
671.0  
(billions of yen)  
billions of yen)  
355.6  
432.8  
283.5  
157.7  
50  
Income (Loss) before  
Income Taxes  
Income (Loss) before  
Income Taxes  
(
Net Income (Loss) Attributable  
to Toyota Motor Corporation  
Net Income (Loss)*1  
(billions of yen)  
(billions of yen)  
(yen)  
Cash Dividends  
Cash Dividends per Share  
Payout Ratio  
Common  
Shares  
165  
200  
210  
210  
220  
220  
220  
220  
240  
(%)  
55.6  
29.6  
28.7  
29.0  
28.3  
34.6  
26.1  
33.8  
29.9  
30.2  
29.8  
Value of Shares Repurchased [shareholder return] *2  
R&D Expenses  
(billions of yen)  
(billions of yen)  
(billions of yen)  
(billions of yen)  
(billions of yen)  
180.0  
293.3  
639.3  
449.9  
549.9  
549.9  
199.9  
199.9  
249.9  
779.8  
732.9  
706.7  
4,968.1  
807.4  
727.3  
852.7  
5,883.1  
35,483.3  
12,148.0  
8.5  
910.5  
1,004.5  
806.2  
1,055.6  
885.1  
1,037.5  
893.2  
1,064.2  
964.4  
1,048.8  
984.8  
1,110.3  
812.8  
1,110.3  
803.3*5  
1,372.3  
8,602.6  
53,972.3  
20,618.8  
10.0  
1,090.4  
876.9  
Depreciation Expenses*3  
Capital Expenditures*3  
775.9  
1,000.7  
7,661.9  
41,437.4  
14,469.1  
13.7  
1,177.4  
8,508.2  
47,729.8  
16,788.1  
13.9  
1,292.5  
9,229.9  
47,427.5  
16,746.9  
13.8  
1,211.8  
9,199.5  
48,750.1  
17,514.8  
10.6  
1,302.7  
9,372.1  
50,308.2  
18,735.9  
13.7  
1,465.8  
9,454.4  
51,936.9  
19,348.1  
9.8  
1,393.0  
8,685.1  
52,680.4  
20,060.6  
10.4  
1,293.2  
11,579.4  
62,267.1  
23,404.5  
10.2  
Total Liquid Assets*4  
Total Assets  
(billions of yen) 30,650.9  
billions of yen) 10,550.2  
Toyota Motor Corporation Toyota Motor Corporation  
(
Shareholders’ Equity  
Shareholders’ Equity  
Return on Equity  
Return on Equity (ROE)  
(%)  
(%)  
2.7  
0.9  
Return on Assets  
Return on Assets (ROA)  
2.9  
4.7  
4.9  
4.9  
3.8  
5.0  
3.7  
4.0  
3.8  
3.9  
*
*
*
*
*
1 Shows “Net income (loss) attributable to Toyota Motor Corporation”  
2 Value of common shares repurchased (shareholder return on net income for the period, excluding shares constituting less than one unit that were purchased upon request and repurchases made to avoid the dilution of shares)  
3 Figures for depreciation expenses and capital expenditures do not include vehicles under operating leases and right of use assets  
4 Represents cash and cash equivalents, time deposits, and investments in public and corporate bonds and trust funds, excluding those deriving from the financial services business  
5 Depreciation methods were revised at the beginning of the fiscal year ended March 31, 2020  
SEC Filing  
5
0
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Message from the President  
Corporate Data  
Global Perspective/Data by Region  
History  
Financial Summary Corporate Information and Stock Information  
2
017-2020 (U.S. GAAP) /2021 (IFRS)  
Consolidated Vehicle Sales  
Sales Revenues  
Operating Income  
Operating income  
Operating income ratio (Right scale)  
(
Thousands of units)  
(Trillions of yen)  
35  
(Billions of yen)  
(%)  
12.0  
10,000  
3,000  
2,500  
8,971  
8,964  
8,977  
8,958  
30  
25  
20  
15  
10  
5
0
30.2  
29.9  
29.3  
10.0  
8.0  
6.0  
4.0  
2.0  
0
2
,467.5  
2,442.8  
8.2  
8
6
4
2
,000  
,000  
,000  
,000  
0
2,399.8  
27.5  
27.2  
7,646  
2
,197.7  
2
1
1
,000  
,500  
,000  
1,994.3  
8.2  
8.2  
8.1  
7.2  
500  
0
FY  
2017  
2018  
2019  
2020  
2021  
FY  
2017  
2018  
2019  
2020  
2021  
FY  
2017  
2018  
2019  
2020  
2021  
Net Income Attributable to Toyota Motor Corporation  
R&D Expenses*1  
Capital Expenditures  
Net income attributable to Toyota Motor Corporation  
Net income ratio (Right scale)  
R&D expenses  
Ratio to net revenues (Right scale)  
Capital expenditures  
Depreciation expenses  
(
Billions of yen)  
(%)  
10.0  
(Billions of yen)  
1,200  
(%)  
6.0  
(Billions of yen)  
1,500  
2
2
1
1
,500  
,000  
,500  
,000  
2,493.9  
1,465.8  
1
,110.3  
1,393.0  
1
,090.4  
2
,245.2  
1
,064.2  
1
,037.5  
1,048.8  
1,302.7  
1,293.2  
2
,076.1  
1,000  
5.0  
4.0  
3.0  
2.0  
1.0  
0
1,250  
1,000  
750  
500  
250  
0
8.0  
6.0  
4.0  
2.0  
0
1,211.8  
893.2  
8.5  
1
,882.8  
8.3  
1
,831.1  
8
6
4
2
00  
00  
00  
00  
0
6.9  
6.6  
4.0  
984.8  
876.9*2  
3.8  
964.4  
6.2  
3.7  
3.6  
3.5  
812.8  
500  
0
FY  
2017  
2018  
2019  
2020  
2021  
FY  
2017  
2018  
2019  
2020  
2021  
FY  
2017  
2018  
2019  
2020  
2021  
*1 Expenses incurred in connection with R&D activities during the reporting period  
*2 Depreciation methods were revised  
5
1
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Board of Directors and Audit & Supervisory Board Members  
Operating Officers and Organizational Structure  
Corporate Information and Stock Information  
Message from the President  
Corporate Data  
Global Perspective/Data by Region History Financial Summary  
Corporate Information and Stock Information (As of September 30, 2021)  
Corporate Data  
Major Shareholders (Top 10)  
Company Name  
Established  
Toyota Motor Corporation  
August 28, 1937  
¥635,402 million  
March 31  
Number of Affiliates  
Percentage of  
Common shares Shareholding  
Consolidated subsidiaries:  
550  
Name  
(1,000 shares)  
(%)  
Common Stock  
Fiscal Year-End  
Affiliates accounted for by  
the equity method:  
The Master Trust Bank of Japan, Ltd.  
Custody Bank of Japan, Ltd.  
Toyota Industries Corporation  
Nippon Life Insurance Company  
JP Morgan Chase Bank, N.A.  
324,364  
11.71  
170  
249,314  
238,466  
126,775  
9.00  
8.61  
4.58  
Accounting Auditor PricewaterhouseCoopers  
Number of Employees  
372,286  
(Parent company: 71,206)  
Aarata LLC  
Corporate Website  
1
07,607  
3.88  
3.25  
2.66  
2.05  
2.04  
1.84  
Corporate information: https://global.toyota/en/  
IR information: https://global.toyota/en/ir/  
Toyota Times: https://toyotatimes.jp/en/  
(
Standing Proxy: Settlement & Clearing Services Division, Mizuho Bank, Ltd.)  
DENSO Corporation  
89,915  
State Street Bank and Trust Company  
Standing Proxy: Settlement & Clearing Services Division, Mizuho Bank, Ltd.)  
7
3,812  
56,814  
6,465  
51,064  
(
Stock Data  
Mitsui Sumitomo Insurance Company, Limited  
The Bank of New York Mellon as Depositary Bank for Depositary Receipt Holders  
Standing Proxy: Sumitomo Mitsui Banking Corporation)  
5
(
Number of Shares Authorized  
Number of Shares Issued  
Number of Shareholders  
Stock Listings  
10,000,000,000 shares  
Common shares: 3,262,997,492 shares  
Tokio Marine & Nichido Fire Insurance Co., Ltd.  
(
Note) Percentage of shareholding is calculated after deducting treasury stock (492,842 thousand shares) from the total number of shares issued.  
534,315  
Japan: Tokyo, Nagoya  
Overseas: New York, London Securities  
Japan: 7203  
Code  
Ownership Breakdown  
American Depositary Receipts (ADRs)  
Transfer Agent in Japan  
Ratio: 1 ADR=2 common shares Symbol: TM  
Mitsubishi UFJ Trust and Banking Corporation  
1
-1, Nikko-cho, Fuchu City, Tokyo 183-0044, Japan  
Japan toll-free: (0120) 232-711  
Depository and Transfer Agent for ADRs The Bank of New York Mellon  
Individuals, etc.:  
3
31,370 thousand shares  
11.96%  
2
40 Greenwich Street, New York, NY 10286, U.S.A.  
Financial institutions, brokerages:  
(
Note) Toyota implemented a five-for-one stock split, with September 30 and October 1, 2021 defined as the record date and the effective  
Other corporate entities:  
97,396 thousand shares  
1,079,803 thousand shares  
date, respectively.  
6
38.98%  
25.18%  
Contact Points  
Toyota City Head Office: 1, Toyota-cho, Toyota City, Aichi Prefecture 471-8571, Japan  
Tel: (0565) 28-2121  
Foreign corporate entities and others:  
61,584 thousand shares  
Tokyo Head Office:  
1-4-18, Koraku, Bunkyo-ku, Tokyo 112-8701, Japan  
Tel: (03) 3817-7111  
6
23.88%  
(
Note) The above percentages indicate the ratios of shareholdings to the total number  
of shares issued after deducting treasury stock (492,842 thousand shares)  
5
2
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  
The Source of  
Our Value Creation:  
What Makes Us Toyota  
Value Creation Story:  
Working toward the Mobility  
Society of the Future  
Business Foundations  
for Value Creation  
Message from the President  
Corporate Data  
Cautionary Statement with Respect to Forward-Looking Statements, and Other Information  
This report 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.  
environmental protection, vehicle emissions, and  
vehicle fuel economy, as well as changes in laws,  
regulations, and government policies that affect  
Toyota’s other operations, including the outcome  
of current and future litigation and other legal  
proceedings, government proceedings,  
and investigations  
(vii) Political and economic instability in the markets in  
which Toyota operates  
(viii) Toyota’s ability to timely develop and achieve  
market acceptance of new products that meet  
customer demand  
These factors include, but are not limited to:  
(
i) Changes in economic conditions, market demand,  
and the competitive environment affecting the  
automotive markets in Japan, North America,  
Europe, Asia, and other markets in which  
Toyota operates  
ii) Fluctuations in currency exchange rates, particu-  
larly with respect to the value of the Japanese yen,  
the U.S. dollar, the euro, the Australian dollar, the  
Russian ruble, the Canadian dollar, and the British  
pound, fluctuations in stock prices, and interest  
rate fluctuations  
(ix) Any damage to Toyota’s brand image  
(x) Toyota’s reliance on various suppliers for the  
provision of supplies  
(xi) Increases in prices of raw materials  
(xii) Toyota’s reliance on various digital and  
information technologies  
(xiii) Fuel shortages or interruptions in electricity,  
transportation systems, labor strikes, work stoppag-  
es, 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  
(xiv) The impact of natural calamities as well as the  
outbreak and spread of epidemics, including the  
negative effect on Toyota’s vehicle production  
and sales  
(
(
iii) Changes in funding environment in financial  
markets and increased competition in the financial  
services industry  
(
(
iv) Toyota’s ability to market and distribute effectively  
v) Toyota’s ability to realize production efficiencies  
and to implement capital expenditures at the  
levels and times planned by management  
vi) Changes in the laws, regulations, and government  
policies in the markets in which Toyota operates  
that affect Toyota’s automotive operations,  
particularly laws, regulations, and government  
policies relating to vehicle safety including  
remedial measures such as recalls, trade,  
(
A discussion of these and other factors which may  
affect Toyota’s actual results, performance, achieve-  
ments, or financial position is contained in Toyota’s  
annual report on Form 20-F, which is on file with the  
United States Securities and Exchange Commission.  
Toyota is a Worldwide Olympic/Paralympic Partner in the category of vehicles,  
mobility support robots and mobility services.  
5
3
TOYOTA MOTOR CORPORATION INTEGRATED REPORT  


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