Automotive News Europe Congress

22nd May 2019

Matt HarrisonExecutive Vice President

Toyota Motor Europe

Toyota Electrification Strategy in Europe

Today and Tomorrow

New vehicle zero emissions

Life cycle zero emissions (raw materials, parts & manufacturing, use, recycling)

Plant zero emissions

Minimizing and optimizing water usage

Establishing a re-cycling based society

Establishing a future society in harmony with nature

2050

New Vehicle Emissions

By 2050, reduce new vehicle CO₂ emissions by 90% vs 2010

Toyota DNA: Environmental Leadership

"First the customer, then the dealers, then the manufacturer. This attitude is the best approach in winning the trust of customers and dealers and ultimately brings growth to the manufacturer.”

Shotaro Kamiya (1898-1980) President and Honorary Chairman

Toyota Motor Sales

Toyota DNA: Customer First

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CURRENT MIX (Q1 2019):

55%

Yaris

81%

Corolla H/B

71%

RAV4

89%

Toyota C-HR

71%

Lexus

(99% Western Europe)

Consistent Hybrid Growth in Europe

* includes RU, KZ and TRK (under TME responsibility)

>60% Mix* in Western

Europe

480K Sales

46% Mix*

0

100000

200000

300000

400000

500000

600000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

RAV4

Corolla

Camry

Corolla

Yaris

RAV4

C-HR

Hybrid expansion driven by model introductions…

Prius Prius III

…linked to clear long-term Sales & Marketing Plans

2015-2019

Hybrid key Toyota differentiator to drive

performance

TOYOTA 15 PlanBecome undisputed Hybrid Leader

150K Hybrid Sales/year50% Hybrid Mix

In B&C Segments

TOYOTA 21 PlanCustomer-Centric Strategy

1M Sales5% Market Share50% Hybrid Mix

2013-20152010-20122009

360°Approach in close collaboration with our Network

ATL/BTL

Transparent Test Drives

Manage

Customer

Concerns

Steering Mechanisms

Value Chain& Service

Salesmen training

Showroom experience

Web experience

Fuel consumption

Low emissions

TCO(Total Cost of Ownership)

Highlight tangible benefits

* = Toyota Customer Test Drives across Europe and Independent Studies in Rome, Paris, Darmstadt, Dublin & Madrid

>50% zero emissions driving*

TANGIBLES

Transparent Test Drives

Fuel consumption

Low emissions

TCO(Total Cost of Ownership)

Hybrids also provide many intangible benefits

TANGIBLES

Responsive

Intuitive

Quiet

Source: AMCI Research

Feelgood Driving

INTANGIBLES

We wanted to share that “Feelgood Driving”…

«Try my hybrid»

Toyota Norway 2015

«TRY-BRID»

Toyota UK Network 2016 «New Yaris Hybrid.

Silence the City»

Toyota Europe 2012

…and shift to more emotional communication

ATL/BTL

Ensure a great Showroom experience…

Visible Hybrid Area

Best-looking Car

Unique Value Proposition

Dedicated Sales Process

Annual Health Check

Showroom experience

TCM: Great value proposition for customers & network

Customer centric: Pay per use

Leverage high residual values

High quality used cars for network

TCM: Trade Cycle Management Affordability for customers

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Q1

'17

Q2

'17

Q3

'17

Q4

'17

Q1

'18

Q2

'18

Q3

'18

Q4

'18

DIFFERENT

Brand Premium

Q4'

14

Q1'

15

Q2'

15

Q3'

15

Q4'

15

Q1'

16

Q2'

16

Q3'

16

Q4'

16

Q1'

17

Q2'

17

Q3'

17

Q4'

17

Q1'

18

Q2'

18

Q3'

18

Q4'

18

Source: Toyota Brand Scan Rolling 12-month

BRAND PREMIUM

Hybrid differentiation strengthens Brand Premium

Hybrid Electric Vehicles support CO2 objectives

95

100

105

110

115

120

125

2014 2015 2016 2017 2018

EU CO2 Evolution

Toyota Industry

Future CO2 regulation to become stricter

81g CO2 / km 59g CO2 / km95g CO2 / km

2020 2025 2030

- 15% vs 2020

- 37.5% vs 2020

There is not “one” electrification solution…

“There is no perfect technology”

Takeshi UchiyamadaToyota Chairman

CO2 Regulation

Taxation

Infrastructure

Access restrictions

Provide different solutions for different customer needs

Need to offer variety of powertrains across our

line-up

Product is determined by customers x market

CO2

Customers will define the electrification they need

Convenient (Range & Infrastructure)

Affordable (net of incentives)

Access to city centers

Social responsibility

€

Different technologies for different parts of the market

Hybrid remains optimal balance of customer needs

ACCESS TO

INFRASTRUCTURE VEHICLE COSTCHARGE TIMECITY CENTRE

ACCESS

HE

V S

YST

EM

CO

ST

Hybrid Cost & CO2 reduction to continue

1st Gen Prius

(1997, EU 2000)

4th Gen Prius

(2015)

2nd Gen Prius

(2003)

3rd Gen Prius

(2009)

-75%Toyota HEVs

affordable &

convenient

Sharing Hybrid technology with others

FCEVs are free from range anxiety and charging time issues

VEHICLE RANGE ACCESS TO

INFRASTRUCTURE VEHICLE COSTCHARGE TIME

CITY CENTRE

ACCESS

FC system: huge potential for cost reduction

Limited Sales Market Entry Widespread use

FC S

YST

EM

CO

ST

2008 PrototypeMODEL

Generation 3

Generation 2

Fuel cell system costs have been

reduced significantly

Further cost reduction efforts

are ongoing

1st Generation Mirai

-95%

Expanding FCEVs via commercial applications

BEVs will grow, especially in high income areas

VEHICLE RANGE ACCESS TO

INFRASTRUCTURE VEHICLE COSTCHARGE TIMECITY CENTRE

ACCESS

Toyota BEV Cooperation for affordability

SCALE-UP PRODUCTION CAPACITY

PRISMATIC LI+

SOLID STATE

MOVING TO MASS PRODUCTION AND SALES

New joint venture with Panasonic

FURTHER REDUCE COSTS

FURTHER INCREASE ENERGY DENSITY

Toyota BEV Cooperation for affordability

2020 20502010

HEV

ICEPHEV

FCEV

BEV

20302025

From next year

BEV ROLLOUT IN EARNEST

Note: Scale is indicative

2020 20502010

HEV

ICEPHEV

FCEV

BEV

20302025

From 2025

ELECTRIFIED VERSION FOREACH VEHICLE MODEL

BEV ROLLOUT IN EARNEST

Note: Scale is indicative

2020 20502010

HEV

ICEPHEV

FCEV

BEV

20302025

In 20305.5M ELECTRIFIED VEHICLES SALES

(INCL. 1M BEV & FCEV)

ELECTRIFIED VERSION FOR EACH VEHICLE

MODEL

BEV ROLLOUT IN EARNEST

Note: Scale is indicative

The right car, in the right place, at the right time

Environmental

Leadership

Customer

First

Technology

Neutral