ANNUAL REPORT 2012

page 32

R&D and Intellectual Property

Toyota R&D is dedicated to the development of and product development. With respect to such plan to continue making substantial investments R&D Organization attractive, affordable, high-quality products basic research issues as energy, the environment, in R&D involving forward-looking, leading-edge for customers worldwide. The intellectual information technology, telecommunications, technologies and the development of products Toyota operates a global R&D organization with property that R&D generates is a vital and materials, projects are regularly reviewed associated with the environment, energy, and the primary goal of building automobiles that management resource that Toyota utilizes and evaluated in consultation with outside safety. These investments are essential to precisely meet the needs of customers in every and protects to maximize its corporate value. experts to achieve efficient R&D cost control. preserving our competitive edge in terms of region of the world. And with respect to forward-looking, leading- technologies and products. In , R&D operations are led by Toyota edge technology and product development, we Central Research & Development Laboratories, R&D Guiding Principles establish cost-performance benchmarks on ■ R&D Expenses Inc., which works closely with Motor ● Providing clean and safe products a project-by-project basis to ensure efficient (¥ Billion) Co., Ltd., , Ltd., 1,000 and enhancing the quality of life of development investment. Co., Ltd., , Inc., and people everywhere through all our 800 many other companies. Overseas, activities. Basic research 600 we have a worldwide network of technical ● Pursuing advanced technological Development theme discovery centers as well as design and motorsports R&D development in a wide range of fields, Research on basic vehicle-related technology 400 we pledge to provide attractive Forward-looking and leading-edge technology centers. development products and services that respond to 200 the needs of customers worldwide. Technological breakthroughs related to 0 components and systems FY ‘08 ‘09 ‘10 ‘11 ‘12 Development of leading-edge components and systems ahead of competitors R&D Activities Domestic and Overseas R&D Bases Product development Facility Name Activities Location The overriding goal of Toyota’s technology and Primary responsibility for new model development Development of all-new models and existing-model Japan product development activities is to minimize Product Planning, Design, upgrades Head Office Toyota Technical Center Toyota City, Vehicle Engineering and Evaluation the negative aspects of driving, such as traffic Higashi-Fuji Technical Center Advanced Engineering Mishuku, Susono City, Shizuoka Prefecture accidents and the burden that automobiles have Design Research & Laboratory Research of Advanced Styling Designs Hachioji City, Tokyo on the environment, and maximize the positive R&D Expenditures Shibetsu Proving Ground Vehicle Testing and Evaluation Onnebetsu, Shibetsu City, Hokkaido aspects, such as driving pleasure, comfort, and Toyota Central Research & Development Basic Research Nagakute City, Aichi Prefecture convenience. By achieving these sometimes In fiscal 2012, R&D expenses totaled ¥779.8 billion, Laboratories, Inc. conflicting goals to a high degree, we want to open up 6.8% from the previous fiscal year, representing the door to the automobile society of the future. 4.2% of consolidated net revenues. We worked To ensure efficient progress in R&D activities, closely with suppliers to develop components and we coordinate and integrate all phases, from products more efficiently and took steps to reduce basic research to forward-looking technology our own R&D expenses. At the same time, we Head Office Toyota Technical Higashi-Fuji Technical Center Tokyo Design Research & Shibetsu Proving Ground Toyota Central Research & Center Laboratory Development Laboratories, Inc. TOYOTA ANNUAL REPORT 2012

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R&D and Intellectual Property

Facility Name Activities Location Intellectual Property Strategies USA Intellectual Property Guiding Principle Toyota Motor Engineering & Manufacturing Product Planning, Vehicle Engineering and Ann Arbor, Michigan Torrance, California North America, Inc. Evaluation, Basic Research Wittman, Arizona ● Securing greater corporate flexibility Toyota carefully analyzes patents and the need Newport Beach, California , Inc. Design Ann Arbor, Michigan and maximizing corporate value for patents in each area of research to formulate through the appropriate acquisition more effective R&D strategies. We identify R&D and utilization of intellectual projects in which Toyota should acquire patents, property. and file relevant applications as necessary to help build a strong global patent portfolio. In addition, we want to contribute to sustainable mobility Toyota Motor Engineering & Manufacturing Calty Design Research, Inc. by promoting the spread of technologies with North America, Inc. Intellectual Property Activities environmental and safety benefits. This is why Toyota’s competitiveness springs from the we take an open stance to patent licensing, and NV/SA Vehicle Engineering and Evaluation , Belgium Derby, U.K forward-looking R&D stance that is instrumental grant licenses when appropriate terms are met. Toyota Europe Design Development Design Nice, France to core strengths associated with products and A good example of this policy is the licensing to Toyota Motorsport GmbH (TMG) Development for Motorsport Vehicles, Germany Advanced Engineering technologies. Underlying each new product that other companies of patents in the area of hybrid emerges from R&D, there are always intellectual technology, which is one of our core technologies properties such as inventions and expertise that involving environmental energy. we value as important management resources.

Toyota Motor Europe NV/SA Toyota Europe Design Development Toyota Motorsport GmbH (TMG) Intellectual Property Systems

Asia Pacific R&D and intellectual property activities are Toyota Motor Asia Pacific Engineering and Vehicle Engineering and Evaluation Samutprakarn Province, Thailand Manufacturing Co., Ltd. organizationally linked to enable us to focus on Toyota Technical Center Vehicle Engineering and Evaluation Melbourne, Australia selected development themes and build a strong Asia Pacific Australia Pty., Ltd. Toyota Motor Engineering and Manufacturing Basic Research, Technical Research and patent portfolio. We have established an Intellectual China (China) Co., Ltd. Vehicle Evaluation Property Committee made up of individuals （Image Figure） involved with management, R&D, and intellectual property. This committee acquires and utilizes important intellectual property that contributes to business operations and helps determine policies

Toyota Motor Asia Pacific Engineering and Toyota Technical Center Toyota Motor Engineering and Manufacturing for management risks associated with intell ectual Manufacturing Co., Ltd. Asia Pacific Australia Pty., Ltd. (China) Co., Ltd. property.

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