Toyota’s Discerning Approach to - making and Challenges for the Future —Software and Connected Initiatives—

Keiji Yamamoto Chief Product Integration Officer Operating Officer, Motor Corporation

August 25, 2021 1 The history of automobile development 1. Toyota’s stance on internalization 2. How Toyota is responding to CASE

2 Toyota’s software and connected initiatives 1. “Human connected” 2. Connected expansion 3. Taking up the challenge of achieving carbon neutrality 3 Possibilities for the auto industry and automobiles 1. Sustainable and practical car-making 2. Software development structure 3. The possibilities for automobiles 1 The history of automobile development 1. Toyota’s stance on internalization evolved while overcoming the social challenges of each era 1 The history of automobile development 1. Toyota’s stance on internalization Improved fuel efficiency, safety, and comfort 1 The history of automobile development 1. Toyota’s stance on internalization 50 ECUs* and as many as 1,000 semiconductors per vehicle *Electronic control unit

Growth in the number of lines of code Navigation system Number Vehicle recognition control of lines Gateway Blind spot monitor 8000 Proximity notification

6000 Gauges Door control

4000 Forward recognition control Vehicle body control 2000

Brake booster assembly control 0 2005 2010 2015 2020 2025 Year Internalization means...

Trying it yourself first to understand the principles Continuously improving at the worksite to improve your competitiveness 1 The history of automobile development 1. Toyota’s stance on internalization

Various kinds of production equipment Fabrication of semiconductor equipment

Body welding

FCEV hydrogen tanks

HEV electric motors 1 The history of automobile development 1. Toyota’s stance on internalization

High-pressure hydrogen tanks/ Fuel cell stacks Electronic components plant Batteries Semiconductors ECUs 1 The history of automobile development 1. Toyota’s stance on internalization 1 The history of automobile development 2. How Toyota is responding to CASE

１G ２G 3G 4G 5G High capacity and ultra-high speed

Web Video Email Voice 1 The history of automobile development 2. How Toyota is responding to CASE 1 The history of automobile development 2. How Toyota is responding to CASE Advancing internalization of software and connected technologies

LQ 1 The history of automobile development 1. Toyota’s stance on internalization 2. How Toyota is responding to CASE

2 Toyota’s software and connected initiatives 1. “Human connected” 2. Connected expansion 3. Taking up the challenge of achieving carbon neutrality 3 Possibilities for the auto industry and automobiles 1. Sustainable and practical car-making 2. Software development structure 3. The possibilities for automobiles 2 Toyota’s software and connected initiatives 1. “Human connected” People-centered approach—“human connected”

Movement of people Movement of goods

Movement of activities 2 Toyota’s software and connected initiatives 1. “Human connected”

Service Providers Gov’t offices Insurance Food & Rideshare Car-sharing Rentals Taxis Logistics Retail Olympics & companies lodging Paralympics

Mobility Services Platform (MSPF)

API (Vehicle management, fleet management, authentication functions, payment functions, etc.)

Telematics Flexible Box/ Vehicle Operational insurance leasing TransLog information information

Toyota Smart Center (TSC) Call center OTA updates of Individual/device services Use of big data Big data onboard authentication (map updates, agents…) (CRM quality control) （TBDC） software Global Communications Platform

Operator-assisted services 2 Toyota’s software and connected initiatives 1. “Human connected” Fleet management system based on the Toyota Production System (TPS) Aiming for the ultimate in “just-in-time mobility”, e-Palettes are dispatched “when needed, where needed, and in the amount needed".

① Waiting customers increase Emergency remote vehicle stop/restart

AMMS (Operation management center)

Immediate deployment of replacement vehicles

Automatically sent to the garage in the event of an abnormality ③ Prevents variation in operation intervals

② Additional unit dispatched in real time 2 Toyota’s software and connected initiatives 1. “Human connected”

Robotaxis Commercial vehicles Logistics

Mobility Services Platform (MSPF) Remote monitoring, vehicle management, fleet management, authentication function, payment function, etc.

Vehicle information Operational information 2 Toyota’s software and connected initiatives 2. Connected expansion16

Collection and utilization of customer and vehicle information Multimedia systems and connected services for the new NX in its first complete redesign in four years 2 Toyota’s software and connected initiatives 2. Connected expansion16

Europe China

North America

Southeast Asia

Australia 2 Toyota’s software and connected initiatives 2. Connected expansion16

Software distribution quality control Software quality control Connected platform

101100 101100 101110 101110 001111 001111 Software 000110 Software version 000110 distribution management management

Billing Distribution software

101100 101110 001111 000110 Regional needs

101100 101110 001111 000110 ・Vehicle condition ・Software version Vehicle etc. 2 Toyota’s software and connected initiatives 3. Taking up the challenge of achieving carbon neutrality16 2 Toyota’s software and connected initiatives 3. Taking up the challenge of achieving carbon neutrality16

Rate of engine being off during driving

HEVs PHEVs 100% Engine + EV driving Engine + EV driving 75% EV during stops

50% EV during stops 83% EV driving 25% 59% EV driving

0% 2 Toyota’s software and connected initiatives 3. Taking up the challenge of achieving carbon neutrality16

Energy conservation Harmony between society and cars

Anticipation of driving burden on the environment HV driving

Urban area Mountainous area

HEV driving BEV driving HEV driving BEV driving BEV driving HEV driving BEV driving HEV driving BEV driving Regenerative for for frequent starts for for the remaining charging acceleration & stops climbing hills distance HV driving Switch to electric-vehicle mode Support for driving in cities based on driving environment that have zero-emission regulations (Anticipatory eco-driving) (Geofencing technology) 2 Toyota’s software and connected initiatives 3. Taking up the challenge of achieving carbon neutrality16

〇〇〇〇〇 〇〇〇〇〇 Recycle Reuse

〇〇〇〇〇 〇〇〇〇〇 Reduce

Longer vehicle life through proper maintenance (Automobile medical records) 1 The history of automobile development 1. Toyota’s stance on internalization 2. How Toyota is responding to CASE

2 Toyota’s software and connected initiatives 1. “Human connected” 2. Connected expansion 3. Taking up the challenge of achieving carbon neutrality 3 Possibilities for the auto industry and automobiles 1. Sustainable and practical car-making 2. Software development structure 3. The possibilities for automobiles Sustainable and practical car-making means delivering new value in cars to all kinds of customers through mass production. 3 Possibilities for the auto industry and automobiles 1. Sustainable and 16practical car-making

Adding the power of connected information and software to real-world car-making ３ Possibilities for the auto industry and automobiles 2. Software development16 structure We Have a Global Software Development Team

Europe China

North America

Japan

Southeast Asia

Software development 3 Possibilities for the auto industry and automobiles 2. Software development16 structure

Real Life Virtual New Features, Services, and Functionality

Autonomy Other Applications Infortainment Applications

Application Programmable Interface (API) Arene Tools (Simulation Environment) Arene Operating System (OS) Hardware Abstraction Layer (HAL) Toyota offers significant value to its customers via the extended capabilities of the Arene software platform being developed at Woven Planet. 3 Possibilities for the auto industry and automobiles 3. The possibilities16 for automobiles

Rough-road driving Logistics

connected Linked to information Support for the Life-saving rescue mobility-challenged 3 Possibilities for the auto industry and automobiles 3. The possibilities16 for automobiles

Technology Innovation Toyota’s goal of “Producing Happiness for All”

Providing freedom of movement for all and inspiring experiences through mobility by combining real cars and the power of software Contributing to the development of society

Going beyond the framework of cars and engaging in community development and the creation of platforms for all of society