Johan van Zyl President & CEO Toyota Motor Europe Many challenges facing our industry
TOYOTA MOTOR EUROPE 4 challenges
1. Building a sustainable business in Europe
2. Coping with 10 million sales globally
3. Embracing new technologies
4. Reducing our environmental impact
TOYOTA MOTOR EUROPE Challenge 1 EUROPE GROWTH
TOYOTA MOTOR EUROPE Different Challenges in East and West
TOYOTA MOTOR EUROPE European mid-term focus
Sustainable business with small cars
Product 5% & Brand Profitably share Power
TOYOTA MOTOR EUROPE Toyota: Sustainable Growth in Europe
900k Sales in 2016
4.7% share ‘10 ’11 ’12 ’13 ‘14 ‘15 ’16
TOYOTA MOTOR EUROPE Mid-term objectives
#1 #1 1 Million Sales Customer Value Chain Recommendation Revenue
TOYOTA MOTOR EUROPE Better cars for Europe
Invest in More local Local European R&D production design responsibility
TOYOTA C-HR “ An innovative and sophisticated car that returns to change the parameters of the SUV”
“ Is a revolution running at Toyota?”
TOYOTA MOTOR EUROPE Local production increasing
2008 2009 2010 2011 2012 2013 2014 2015 2016 *concept Toyota C-HR +20% RAV4 • To start production in late in next • To start production in Russia 2016 in Turkey for Europe and 2 years in August 2016 export (Russia, Belarus, Kazakhstan)
TOYOTA MOTOR EUROPE Clear hybrid strategy 50%
31%
13%
2012 2016 2020
TOYOTA MOTOR EUROPE Europe Hybrid leader outside Japan
10% 31% North America Europe
TOYOTA MOTOR EUROPE Challenge 2 GLOBAL GROWTH
TOYOTA MOTOR EUROPE 10M* Challenges the Way We Work
10.2 M 10.1 M 10.1 M
2014 2015 2016 Plan
* 10M units including Toyota, Daihatsu & Hino
TOYOTA MOTOR EUROPE Source: TMC Two initiatives
TNGA NEW ORGANISATION
Ever Better Cars “Smaller Toyota” Agility and Speed
TOYOTA MOTOR EUROPE TNGA: Making Ever Better Cars TNGA
Create products with Enhance product emotional appeal marketability
Re- At the same time invest
Commonize parts & powertrain by group- Reduce cost based development
TOYOTATOYOTA MOTOR MOTOR EUROPE EUROPE TNGA: Making Ever Better Cars TNGA
Styling parts Optimised for each market
Commonised
% of vehicle cost Functional parts scope
TOYOTA MOTOR EUROPE TNGA: Making Ever Better Cars TNGA
TOYOTA MOTOR EUROPE TNGA: Making Ever Better Cars TNGA
80% of global production by 2020
2015 2020
TOYOTA MOTOR EUROPE From a function-based organisation... Small Toyota
TMC
Toyota Toyota Unit . R&D LEXUS #1 #2 Centre Jpn, Emerging . Production markets US, EU Engineering . Production
Product Business units Functions for all vehicles centric
TOYOTA MOTOR EUROPE … To a product-based organisation Small Toyota
Head Office Functions
Toyota Toyota Internal companies #1 #2 (each with a CEO) Jpn, Emerging markets US, EU
Business units Product centric companies
TOYOTA MOTOR EUROPE Smaller Toyota companies Small Toyota
TMC Frontier Research Center HEAD OFFICE Corporate Strategy
Toyota Toyota Toyota Innovative Mid-size Commercial Toyota Lexus Compact Powertrain #1 #2 R&D vehicles vehicles Connected Car
Business units Product centric companies
TOYOTA MOTOR EUROPE Challenge 3 EMERGING TECHNOLOGIES
TOYOTA MOTOR EUROPE Automotive key trends driving our future
Hybrid electric vehicles Battery electric mobility Fuel Cell vehicles 1917 2015
Woods Dual Power Mirai
TOYOTA MOTOR EUROPE Automotive key trends driving our future
Combustion era goes up in smoke May 11 2016
TOYOTA MOTOR EUROPE Automotive key trends driving our future
Connectivity Customer data & digitisation
TOYOTA MOTOR EUROPE Automotive key trends driving our future
Automated and self driving cars
TOYOTA MOTOR EUROPE “Automakers, not Silicon Valley, lead in driverless car patents.”
Reuters Jan 5 2016
TOYOTATOYOTA MOTOR MOTOR EUROPE EUROPE The Next Frontier
TOYOTATOYOTA MOTOR MOTOR EUROPE EUROPE Moving fast, globally
TOYOTA MOTOR EUROPE CARMAKERS: A NEW DIRECTION OF TRAVEL: The industry contemplates a future of driverless and shared vehicles Jan 2016
TOYOTATOYOTA MOTOR MOTOR EUROPE EUROPE Data drives mobility change Automated driving
TOYOTATOYOTA MOTOR MOTOR EUROPE EUROPE Challenge 4 OUR ENVIRONMENTAL IMPACT
TOYOTA MOTOR EUROPE Prius concept @ 1995 Tokyo Motorshow
TOYOTA MOTOR EUROPE Hybrid technology evolution
Fuel efficiency l/100 km 5.1 4.3 3.9 3.0
HV system cost
First-generation Prius Second-generation Prius Third-generation Prius New Prius
Hybrid Vehicles technology significantly evolved in fuel efficiency with reduced cost
TOYOTA MOTOR EUROPE Hybrid global sales
9 million Cumulative 9 (million) 9 months! 8 8 7 million 6 5 5 M 4 3 M 3 2 1 M 1 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
More than 9 million HVs in world wide cumulative sales to date
TOYOTA MOTOR EUROPE Hybrid: Impact on CO2
Cumulative (million vehicles)
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 0
Cumulative 20 Million Tons 67 million 40 tons 60
67 million tonnes of cumulative CO2 reduction compared to same class gasoline vehicles
TOYOTA MOTOR EUROPE Hybrid: Mid term target
Million 15 2020 TARGET Cumulative 15 million HVs
9
1 0 1997 2000 2005 2010 2015 2020 2050
HV target cumulative 15 millions in 2020, to lead next generation vehicles
TOYOTA MOTOR EUROPE Developing Hydrogen FCV for 20 years
FCV-R Fuel FCEV Fuel FCHV-4 Fuel FCHV Hydrogen stored in Toyota-made tanks, Mirai precursor H Stored in adsorbing alloy 2 high-pressure tanks 1st FCV homologated
1996 1999 2001 2002 2005 2009 2011 2015
FCHV-3 Fuel FCHV-5 Fuel FCHV-adv Fuel Mirai Hydrogen Hydrogen generated on-board New stack, Revolutionary Titanium stack, (adsorbing alloy) by reforming on gasoline stainless steel cells 3.1 kW/L world record
TOYOTA MOTOR EUROPE H2 helps addressing some key problems
CLIMATE AIR ENERGY CHANGE QUALITY SECURITY
TOYOTA MOTOR EUROPE Sales: Mirai sales plan in 2020 and after
GLOBAL: More than 30,000/year around 2020 and after
TOYOTA MOTOR EUROPE About 5,680 FCV related Toyota patents
NUMBER OF PATENTS ITEM FREE USE PERIOD TO BE FREE
FC stack Approx. 1,970
High-pressure hydrogen tanks Approx. 290 Until the end of 2020
FC system control Approx. 3,350
Hydrogen station Approx. 70 No expiration Announcement at CES on January 6 by TMS SVP Bob Carter
Toyota share all patents for free to accelerate the spread of FCV
TOYOTA MOTOR EUROPE Fuel cell research: Partnership with BMW
DEVELOPING NEXT GENERATION FCV SYSTEM TOGETHER
TOYOTA MOTOR EUROPE Looking forward
TOYOTA MOTOR EUROPE Annual greenhouse gas emissions Baseline scenario 1,000 Tg CO2 140 (+3.7~4.8℃) Eq./year 120 (RPC8.5) 100 80 60 40 Below 2℃ scenario 20 (RPC2.6) 0 20 2000 2020 2040 2060 2080 2100
Full-scale initiatives to reduce CO2 emissions Zero or less
Regarding GHG emissions, there is no time to lose
Source: From the IPCC Working Group III 5th Assessment Report (2014)
TOYOTA MOTOR EUROPE
New Vehicle
Zero CO2 Emissions Challenge
Challenge of Challenge of Minimizing and Establishing a Optimizing Recycling-based Water Usage Society and Systems
Life Cycle Plant Zero CO 2 Zero CO Emissions Challenge 2 Emissions Challenge
Challenge of Establishing a Future Society in Harmony with Nature
TOYOTA MOTOR EUROPE “We must complete the Toyota Environmental Challenge 2050 at all costs for our vehicles to always be beloved by our customers.”
Akio Toyoda
TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Long term trends by engine types
Sales volume
HV Conventional PHVPHV
FCV EVEV
2010 2020 2050 Accelerate next generation vehicle
development toward 90% CO2 reduction
TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Life cycle Zero CO2 Disposal/recycling Maintenance
Driving
Fuel production Parts/vehicle production Material production Gasoline HV MIRAI Zero vehicles New generation In the future Vehicles
Next generation vehicle emits zero CO2 during driving however, material, parts/vehicle production still do
TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Focus on 2 pillars
Reduced by low CO -emitting production CO emissions under “Business As Usual” 2 2 technologies and daily Kaizen activities
Plant CO2 emissions ➡ Aiming for zero in the long run Reduced by using renewable energy and hydrogen
2001 2030 2050
TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Importance of cooperation by all stakeholders
Customers
Energy Carbon free Governments suppliers Mobility & Society
Industry
Zero CO2 Challenge in cooperation with stakeholders
TOYOTA MOTOR EUROPE Thank you
TOYOTA MOTOR EUROPE