Contents

■Developing Employees and ■ Auto Body Profile 2 Creating the Workplace 18 ■Top Message 5

■Corporate Principles 7 ■Social Contributions 28

■Corporate Governance 7

■Friendly to the Global Environment 31

■ Creating Ever-Better Cars 8 ■Product Environment 33

■Creating a Better Coaster 8 ■Production Environment 35

■Assisted Mobility Vehicles and 14 ■Environmental Management 36 Special Purpose Vehicles to Meet a Wide Range of Needs ■Environmentally Friendly Cars 15 (Ultra Compact EV COMS, Fuel Cell Vehicles)

■Creating High Quality Cars 16

■Working Together with Our Suppliers 17

Editorial policy Toyota Auto Body is dedicated to corporate activities that will contribute to a prosperous society by creating ever-better cars. Beginning with creating ever-better cars through the Coaster, which represents the first model change since the launch of the CV Company, this report provides an overview of the CSR activities of Toyota Auto Body and the Toyota Auto Body Group so that they can be more widely known.

Additionally, in order to convey our efforts more easily, our activities are featured in this CSR report. Readers who are interested in finding out more can use the click icons to access detailed information.

All opinions or concerns about this report and our activities are welcome via the questionnaire survey on the last page.

Report scope and time period

Report scope: Toyota Auto Body and consolidated subsidiaries Reporting period: In principle, this report covers from April 2016 through March 2017; however, reporting is extended beyond March 2017 for items where progress after this period occurred.

Cars on the cover

Coaster Estima Hiace rear lift model (New model released Jan. 2017) (New model released June 2016) (Released June 2016)

1 ■Toyota Auto Body Profile

Overview

Company Name Toyota Auto Body Co., Ltd. Volume of sales

Head Office 100,Kanayama Ichiriyama-cho, (Thousands of vehicles ) 1000 Kariya City,Aichi Prefecture, Japan

719 Established August 31, 1945 750

Representative President, Keiji Masui 500 Invested Capital 10.371 billion yen 250 Total Sales 1,844.9 billion yen (FY2016 consolidated) 0 1945 1955 1965 1975 1985 1995 2005 2015 2016 (FY) Manufacturing Head Office/Fujimatsu Plant、 Number of employees ( consolidated ) Inabe Plant、Yoshiwara Plant、 Facilities Kariya Plant、 (Number of employees) 20000 Kotobuki New Development Center 17,300

15000

Company Outline 10000 Related Information Product Lineup 5000

0 1945 1955 1965 1975 1985 1995 2005 2015 2016 (FY) Main Products The year when the first generation of each model was introduced is shown in [ ]. Minivans

Alphard Vellfire Estima Voxy Noah Esquire 〔2002〕 〔2008〕 〔1990〕 〔2001〕 〔2001〕 〔2014〕

Commercial / Commuter vehicles SUV Small EV

Land Cruiser Land Cruiser Hiace Coaster Lexus LX COMS 200 70 van 〔1967〕 〔1969〕 〔1998〕 〔2007〕 〔1984〕 〔2000〕

Special Purpose Assisted mobility vehicles Vehicles

Well Carry Rotating and Wheelchair-accessible Side Lift-up Seat Wheelchair-accessible Freezer and (Special Purpose tilting passenger Vehicle(Rear Lift type) Vehicle Vehicle(Rear Slope type) refrigerator van Friend-Matic Vehicle)seat vehicle 〔1968〕 〔1994〕 〔2001〕 〔2009〕 〔2015〕 〔1979〕 2 ■Toyota Auto Body Profile

Main Business Sites

Production Bases Development Bases Head Office/Fujimatsu Plant Development Center 100, Kanayama Ichiriyama-cho Inside Head office / Fujimatsu Plant Kariya City, Aichi Prefecture Main Products Estima、Voxy、Noah Esquire、Land Cruiser 70

Inabe Plant 10, Ichinohara Inabe-cho Inabe City Production Technology Mie Prefecture Center Main Products Inside Head office / Fujimatsu Plant Alphard、 vellfire Hiace、Regius Ace

Yoshiwara Plant 25, Kamifujiike Yoshiwara-cho Toyota City, Aichi Prefecture Kotobuki Main Products Land Cluiser 200、Lexus LX New Development Center Land Cruiser 70 1-36-1, Kotobuki-cho, Toyota City, Aichi Prefecture Kariya Plant 2-1, Showa-cho, Kariya City, Aichi Prefecture Main Products COMS Assisted mobility vehicles (Welcab)

Domestic and Overseas Consolidated Subsidiary Companies [ ] indicates the year when the company was founded. <> indicates the primary area of business. Domestic Consolidated Subsidiary Companies Gifu Auto Body Co., Ltd. Tokai Utility Motor Co., Ltd. Toyota Body Seiko Co., Ltd. Ace Industry Co., Ltd. (Kakamigahara city, gifu Pref.)〔1940〕 (Anjyo City, Aichi Pref.) 〔1954〕 (Takahama City Aichi Pref.)〔1992〕 (Kariya City, Aichi Pref.) 〔1974〕 <Manufacture and sales of <Manufacture and sales of <Manufacture and sales of seat <Manufacture and sales of parts, automobiles and automotive parts> special purpose vehicles> and other parts> equipment, and other products>

Tokai Parts Industry Co., Ltd. TABMEC Co., Ltd. Toyota Auto Body R&D co., Ltd. Life Service & Security Corporation (Kariya City, Aichi Pref.) 〔1999〕 (Kariya City, Aichi Pref.) 〔1985〕 (Kirishima City, Kagoshima Pref.)〔1990〕 (Kariya City, Aichi Pref.) 〔2000〕 <Manufacture and sales of stamped <General maintenance of buildings <Design and testing of automotive parts> <Management of office and employee and sheet-metal parts> and associated equipment> recreational acilities, security agency work>

3 ■Toyota Auto Body Profile

〔〕indicates the year when the company was founded. Domestic Consolidated Subsidiary Companies <>indicates the primary area of business Inatec Co., Ltd. Life Creation Co., Ltd Life Support Co., Ltd. GI Service Co., Ltd. (Inabe City, Mie Pref.)〔2000〕 (Toyota City, Aichi Pref.) 〔1993〕 (Anjyo City, Aichi Pref.) 〔1999〕 (Kakamigahara City, Gifu Pref.)〔1988〕 <Environmental analysis and <Operation of off-road facilities> <Sales of nursing care supplies, <Employee recreational, plant maintenance, measurement certification> home helper services> insurance and other services>

*A 100% wholly-owned subsidiary company of Gifu Suto Body Co., Ltd., which is a subsi diary company of Toyota Auto Body Overseas Consolidated Subsidiary Companies PT.Sugity Creatives Chun Shyang Shin Yeh Thai Auto Conversion Co., Ltd. PT.Toyota Auto Body-Tokai Industry Co., Ltd. Extrusion (Indonesia) 〔1995〕 (Republic of China (Taiwan))〔1997〕 (Thailand) 〔2004〕 (Indonesia) 〔2005〕 <Manufacture and sales of vehicles <Manufacture and sales of stamped and <Manufacture and sales of special purpose <Manufacture and sales of rubber and resin parts> sheet-metal parts, dies, and other products> vehicles> and resin molded parts>

Toyota Auto Body(Malaysia) Auto Parts Manufacturing Toyota Auto Works Co., Ltd. PT.Resin Plating Technology Sdn. Bhd. Mississippi Inc. (Malaysia) 〔2005〕 (U.S.A.) 〔2007〕 (Thailand) 〔1988〕 (Indonesia) 〔2013〕 <Manufacture and sales of stamped, <Manufacture and sales of stamped, <Manufacture and sales of vehicles> <Manufacture and sales of sheet-metal, and resin parts> welded, and resin parts> resin plated parts and resin parts>

Tab Minth Mobility Equipment Seat Metal Parts Thailand Co., Ltd. Co., Ltd. (China) 〔2011〕 (Thailand) 〔2015〕 <Sales of assistive devices> <Manufacture and sales of seat parts and other products>

*Wholly-owned subsidiary of our subsidiary Toyota Body Seiko Co., Ltd.

Related Information Overseas Subsidiary

4 ■Top Message Contributing to a Prosperous Society by Creating Ever-Better Cars

President Keiji Masui

I would like to express my thanks to everyone for their continuing understanding and support.

Toyota Auto Body was founded as a specialized truck body manufacturer in 1945, and has continued to develop and produce cars that meet the needs of the time, including the all steel cab BX Series trucks and the monocoque body commercial vehicle Hiace van, both of which were the first of their kind in Japan, and the Estima with the world's first midship component layout. In April of this year, we reached the milestone of 30 million total vehicles produced. To thank for this, we have the customers who have come to love our products, and our suppliers and affiliated companies, and I would again like to express my gratitude to all of them.

In April of last year, we launched the "CV Company"* business unit that centers on Toyota Motor products. To benefit people and the world, the mission of the CV Company is "creating ever-better CV" in order to support the lives of customers worldwide. As the core of the CV Company, we have joined together in working to meet customer expectations while deepening our collaboration with Toyota Motor Corporation in areas including personnel exchange and work innovations.

As one part of these efforts, for the new model Coaster that was released in January of this year, all of the CV Company staff responsible for all steps from development to production joined together to create improvements in comfort, safety, and environmental performance for this first model change in 24 years. We were able to give world a vehicle befitting the first-ever model change of the CV Company, and which has become highly popular among the customers.

* CV: Commercial Vehicle

5 ■Top Message

In terms of environmental preservation, since launching the first Toyota Auto Body Environmental Action Plan in 1993, each year we have set targets and carried out programs to achieve them. Last year in March we formulated the sixth Toyota Auto Body Environmental Action Plan (2016 ‒ 2020), and are actively working to incorporate technologies for energy-saving and low-CO2 production at our production plants, develop weight-reducing technologies that contribute to fuel economy performance, and carry out consolidated environmental management.

In cooperation with nearby elementary schools and government agencies, we utilize the Fure-Ai Park located next to the Head Office Plant for rice-farming experiences, environmental workshops, and other activities. In addition, we also carry out forest maintenance activities, tree planting activities with the participation of local residents, and other activities at our Toyota Auto Body Company Forests located primarily on company land at our offices in Aichi, Mie, Kagoshima, Indonesia, and other areas.

In order to provide mobility freedom and happiness to all people, we are carrying out welfare programs that include the development and production of assisted mobility vehicles and units for elderly and disabled persons, development and production of the COMS single-occupant electric vehicle, operating a transport service for wheelchair users using our assisted mobility vehicles, and volunteer activities that include visits to elderly nursing care facilities and volunteer cleaning of wheelchairs. We intend to continue with activities such as these that reflect our company in the future.

I would also like to sincerely apologize for the great concern and inconvenience caused to many persons as a result of the fire that occurred on a painting line at our Inabe Plant on March 20 of this year. The entire company has joined together and is working for recurrence prevention so that such an accident will never occur again.

For this purpose, I would like to ask for everyone's continued support and guidance.

June 2017

6 ■Corporate Principles

Toyota Auto Body conducts business based on the company motto and fundamental principles which carry on the Five Main Principles of Toyoda (formerly known as the Toyoda Precepts), focusing on all stakeholders in order to contribute to the development of a sustainable society.

Toyoda Precepts Company Motto Fundamental Principles (Created in 1935) (Created in 1963) (Created in 1995, revised in 2004)

1. Be contributive to the development and Toyota Auto Body stands with the global view 1. Having harmonization with environment and welfare of the country by working for research and manufacturing while open and fair corporate ethics as our together, regardless of position, in contributing to society with our fine products foundation, our goal is to contribute to building faithfully fulfilling your duties; to have unceasing advancement of business a prosperous society as a trusted company in practices international community. 2. Be at the vanguard of the times through endless creativity, inquisitiveness and Development: 2. Placing customer as our priority first, provide pursuit of improvement; Stay ahead of current trend and respect “quality products” to enrich their life space by research and creations. 3. Be practical and avoid frivolity; ideas and time 3. Invigorate employees and organization to 4. Be kind and generous, strive to create a Amity: develop our company culture with creativity and warm, homelike atmosphere; and Encourage honesty and cooperation with vitality to pursue company prosperity as well as 5. Be reverent, and show gratitude for sincerity and faith happiness our employees. things great and small in thought and Appreciation: 4. By building business relationships based on deed Reflection should be the nourishment for mutual trust, strengthen management practices the enterprising sprit, and live for the joy of with each other, and create long-term growth diligent labor and prosperous coexistence.

「CSR Policy」 ■Corporate Governance

In addition to greater efficiency, at the same time we are also working for mechanisms that ensure highly transparent management.

The Executive Member System was introduced in order Toyota Auto Body Corporate Governance to ensure quick decision-making for our business development strategy and to speed up our operations. Shareholder’s Meeting

The Audit Department for all divisions at Toyota Auto Appointment and Oversight Audit Body performs internal audits centering on the areas of - CSR Committee Auditors Board of compliance and reliable financial reporting. In addition, Coordination Report Report - Corporate Ethics Committee Directors - Product Environment Committee we also carry out audits which include external - Production Environment Accounting Committee auditors, as well as accounting audits by accounting Accounting Audit - Social Contribution auditors. Auditors Corporate Committee Audit Officers - BCM * Committee - Central Safety and Health We have also established the CSR Committee, which is Department Committee - Disaster-prevention comprised of all board directors and auditors, as well as Committee, etc. four committees below the CSR Committee for Internal Audit Guidance Report deliberating and taking action on important issues. Individual divisions

* Business Continuity Management. This activity formulates a business continuity plan (BCP) for recovering the functions of all divisions, and carries out training and other programs to operate a PDCA cycle and carry out review and improvement.

7 ■Creating Ever-Better Cars Imagining the Smiles and Excitement of our Customers By creating ever-better cars, we aim to provide mobility freedom and happiness to everyone. For this purpose, we are working to develop a wide range of products that include minivans, SUV, Our customers’ commercial vehicles, commuter vehicles, assisted smiling faces mobility vehicles for elderly and disabled persons, Development Management Headquarters and the COMS single-occupant EV that delivers even Yuzo Konishi greater environmentally-friendly living convenience. Director, Senior Managing Officer

Creating a Better Coaster A Project to Make a Better Coaster that Involved the Entire Company Here we will introduce the project for the new-model Coaster ‒ the first model change by the CV Company. As the first model change to the Coaster in 24 years, we paid careful attention to opinions from the customers, and worked to improve comfort, safety, and environmental performance in order to create New-model Coaster (Released January 2017) a vehicle that exceeded customer expectations. (Introduced starting on the following page (P9 ‒ P13).)

Close Attention to Extensive Safety Earth-Friendly Environmental Pursuit of Comfort Customer Input Features Performance

Interior height Corners 1,890mm(+60mm) Corners ▲150㎏ (+100mm) (+100mm)

Window height (+50mm)

Previous New model Investigation of Road technologies Larger interior First use of side-slip Efforts to reduce Environments space prevention weight (Papua New Guinea)

Old model New model Bad Noise level

Good

Public buses Improved NV Improved overturning Expanded use of (Hong Kong) performance performance recycled materials P.9 P.9 P.10 P.11

(Before) Manual work (Now) Automated machinery CO2 emissions VOC emissions Creating ever-better 100 ▲50% 100 ▲32% plants

68 50 Friendly to Old New Old New people and the model model model model environment Automated installation of the instrument panel Reduction in CO2 emissions from the new-model module greatly reduces assembly work in the interior. Coaster production line P.12 ~ 13 8 ■Creating Ever-Better Cars Creating a Better Coaster Close Attention to Customer Input The Coaster is used in more than 110 countries and regions around the world. Overseas, it has earned a reputation for high reliability that is able to withstand harsh service environments such as deserts and resource extraction sites. A total of approximately 550,000 Coasters have been sold since its initial release. Investigating roads, environments, and manners of use in countries around the world The developers themselves travel to countries around the world in order to investigate the Coaster used for rental car customer road conditions, environments, and manners of use where the vehicles are actually used, transport in Okinawa (Naha Airport) and to directly receive customer input and apply it to future product development.

Coaster driving on rough, unpaved Coaster used in desert areas Coaster as a public bus roads (Papua New Guinea) (Algeria) (Hong Kong) Paying attention to valuable opinions and unfiltered comments of our customers In response to a variety of opinions received from customers, the developers themselves travel to the markets and observe the way that the vehicles are used in the market, obtain direct input from the customers, and carry out new development.

Comment by a new-model Coaster developer • A roomier interior space Product Planning Center Akihide Usami

• Continued long model life and conventional design At the first full model change in 24 years, in order to • Want storage space around the driver's seat. further improve the reliability that we developed with the • Want improved safety systems. Coaster over its long history, we always kept in mind how • Reliable use without breakdowns the customers actually use the vehicles in the market.

Pursuit of comfort [A roomy interior space] Interior height Corners 1,890mm(+60mm) Corners The interior height was raised by 60 mm and the interior was expanded to the (+100mm) + Approx. (+100mm) sides by an amount sufficient to place elbows on the windows (approximately 40 mm 40 mm). The side window heights were also increased by 50 mm, and other Window steps were taken to provide a comfortable interior space with an open feel. height (+50mm) [Seats with a high-grade feel] The "EX" seats add double stitching to a seat covering made from a combination of synthetic leather and fabric to produce a high-grade feel. :New model Low-rebound urethane is used as the cushion material, improving the fitting :Old model feel when seated. [Comfortable interior space] Improved body rigidity, the addition of sound insulation around the engine, Old model New model an optimized layout, and other improvements have resulted in an improved Bad Idle Mid- and booming high-speed Engine level of quietness performance. Noise level noise booming noise noise [Functional cockpit] For the driver's seat, we expanded the front window opening, enlarged the

field of view, and optimized the layout of function switches and storage Good compartments around the seat in order to minimize movement of the driver's line of sight, creating a cockpit that allows the driver to more easily concentrate on driving. ["Modern and Tough" eye-catching exterior design] A simple yet eye-catching modern design was adopted featuring prominent rounding of the top roof sides. The square body shell expresses the roominess of the interior. The character line which divides the top and bottom of the sides and the reinforced underbody around the tires produce a sturdy body that provides solid support to the cabin. 9 ■Creating Ever-Better Cars Creating a Better Coaster Extensive Safety Features We aim to create vehicles that will transport customers safely and securely to their destinations and back home again. We are continuing with development to produce Conditions of front this kind of vehicle. wheel side-slip 【VSC(Vehicle Stability Control)】 (no VSC) VSC helps to reduce the The new Coaster is the first of its class in Japan to utilize VSC to prevent phenomenon that causes side-slip when cornering and ensure stability while driving. the vehicle to drift to the outside of a turn. Verifying suitability in a wide range of road surfaces and environments Based on the results from on-site investigations and input from the customers, we simulated all kinds of road surfaces, environments, and manners of use around the world, and conducted repeated tests in a laboratory, on a test course, etc. in order to achieve high durability.

Aiming to protect customer safety by mitigating damage in the event of a collision

[Conformance with ECE standard*1 R66*2 (roll-over performance) Hydraulics vibrate an actual vehicle on the ‒ global safety evaluation standard] tester, reproducing road surface conditions The use of a rib bone frame*3 and high-tension steel sheet gives the new Coaster in order to evaluate durability performance. conformance with the "ECE standard R66" global safety evaluation standard for bus body strength, and steps were taken to protect the passenger space in the event that the vehicle rolls over. *1: Economic Commission for Europe regulations *2: Unified regulation for strengthening of bus top structures, prescribed in ECE standards *3: Rib bone frame An integrated structure that connects the roof reinforcement members and side pillars Testing with actual vehicles [Video] in order to increase strength and rigidity

Comment from a collision safety evaluator Vehicle Collision Safety Development Dept. Ryota Shimizu

The Coaster has the largest occupancy of any Toyota vehicle. The desire to ensure the safety and security of these many passengers was a large part of the vehicle development. I am confident that this vehicle can mitigate damage to the occupants even in the event of a roll-over.

[Safety measures in special vehicles for children] Special seatback cushions in the rear seats lessen the impact that occurs if a schoolchild hits the seat. A protector was also installed behind the driver's seat to improve the safety of children Protector (front row sitting in the front row. behind driver's seat)

Seatback cushions Protector (front row Results of a dedication to making safe cars on left side) 10 ■Creating Ever-Better Cars Creating a Better Coaster Earth-Friendly Environmental Performance We understand that the issues of energy and global warming are important environmental problems that may have a major effect on humanity and ecosystems. Based on cooperation among related divisions, we are developing technologies and working from the initial design stage in order to create environmentally friendly vehicles. Development of weight reduction technologies that contribute to top-class fuel economy performance [Main programs for reducing the weight of body and interior/exterior parts] By changing to high-tensile steel sheet, foamed base materials, resins, and thinner sheets, Discussions aimed at reducing we achieved a weight reduction of 151 kg. Based on CAE analysis, we have achieved a Coaster weight involving officers of the development and production high-level balance of body strength, including a rib bone structure, and lighter weight. engineering divisions Upper/underbody Cooler ducts Bumper

Thinner sheets due to the use Solid base material Steel → Resin Total coaster weight reduction of high-tensile steel sheet → Foamed material

▲150㎏ ▲120㎏

High-tensile 100% steel sheet steel 25% Previous New model 75% steel technologies Previous New model Front bumper: technologies Instrument panel 8 kg lighter High-tensile steel sheet 0.5 mm thinner Rear bumper: 590 MPa steel base material 7 kg lighter 440 MPa steel Comment from a new-model Coaster developer Expanding the Use of Recycled Materials Body Design Div. Kenichi Kaneda

[Expanding use of recycled materials recovered from the market] By making active use of The Coaster uses recycled felt, increasing the use of recycled materials. high-tensile steel sheet in the body frame members, Wheel housing mat RH/LH felt we were able to reduce sheet thickness and Roof silencer ensure safety while also reducing weight.

FR floor mat felt

: Recycled felt

Side trim RH/LH felt

Use of the Latest Technologies for Improving the Ease of Vehicle Dismantling So that the used vehicles can be more effectively recycled, the latest improvements were actively incorporated beginning from the design stage to make the structure easy to separate and dismantle. [Door trim that is easier to remove] [Instrument panel that is easier to remove] [Wire harnesses that are easier to remove] A position for starting removal is set, A fracture structure was adopted with V-shaped A harness layout was adopted for easy and a disassembly improvement mark grooves that make the panel thinner at the removal without interference with other parts, is added. fastening points. This allows the structure to be together with yellow tape that improves the easily removed by pulling on it forcefully. visibility of the removal positions. Disassembly improvement mark Addition of V-shaped grooves on nderside of base material

11 ■Creating Ever-Better Cars Creating a Better Coaster Creating Ever-Better Plants The new-model Coaster production line that was launched at Gifu Auto Body Co., Ltd. in January 2017 includes many quality improvements resulting from improvements focused on ease of assembly beginning from the development stage, carried out jointly by Development, Production Engineering, Production, and with the cooperation of the suppliers. [Assembly process: Improved instrument panel installation work] ・Some of the instrument panel components were ・The instrument panel has been modularized*, and is installed by automated installed in advance into the interior, and the machinery from the front window opening, greatly reducing the amount of remaining components were then carried in by assembly work required in the interior. operators and assembled manually.

* Studies were conducted beginning from the design stage so that the instrument panel Because we had to carry in reinforcement, A/C, and other major the parts manually, we had components could be installed in advance. to be very careful not to scratch them while working.

[Assembly process: Shortened line length (body [Automation of difficult work (roof silencer application)] sideways transport line)] Sideways body transport was adopted for the trim line and A silencer (soft non-woven fabric) is applied to the entire underbody line where much interior work occurs, shortening the roof (interior side) during the assembly process as a noise process length and reducing the distance that operators must walk. countermeasure. Previous model line

New model line Work on the previous model line (work with the Sideways transport upper body facing upward) underbody line A portion of the work on the new model line has been Sideways transport trim line automated, and a method of using a robot arm to apply the soft fabric was established.

[People-friendly interior assembly methods Creating an assembly plant that is comfortable to work in (improvement to seat installation workability)] Comment from an engineer The installation of many seats into the interior of a micro bus is a major issue. The Coaster includes 14 seats. Vehicle Planning & Production Engineering Div. Tsuyoshi Kawai The people are the most important part of an (Comment from an (Comment from an operator) operator) The large window opening makes it assembly plant. Through a focus on Space is narrow and possible to install the seats without worrying. people-friendly work and repeated trial and contact is likely. error, we succeeded in finding the ideal approach to processes and equipment.

Assembly Section, Gifu Auto Body Co., Ltd. Toshihiro Fukuta

We carried out preparation for manufacture by focusing on minimizing everything Work on the previous (equipment investment, space, work model line (installation man-hours, etc.)! We will continue to aim of one seat at a time On the new model line, each row of for further product and process from the narrow seats (2 seats: Single seat A and improvements in the future. passenger entrance) double seat B) is installed at once through the large side window openings. 12 ■Creating Ever-Better Cars Creating a Better Coaster Creating Ever-Better Plants Aiming for production with little environmental impact, together with the model change and process renovation, the new-model Coaster line was improved by innovating the method of production and changing the product specifications and structure to create a more environmentally friendly and better plant. Reductions on the Coaster production line (primary units)

CO2 emissions VOC emissions Waste produced Water used

Index 100 ▲50% Index 100 ▲32% Index 100 ▲21% Index 100 ▲50%

68 79 50 50

Previous model New model Previous model New model Previous model New model Previous model New model [Example: Sheet machining process] Change from spot welding to Laser welding was introduced, a method that high-speed laser welding! consumes less energy than conventional spot welding. Welding CO2 emissions The spot welds were changed from pressurized

welding to non-contact welding to improve the finish Index 100 ▲88% quality, allowing the polishing process to be eliminated. 12 Previous model New model Spot welding Laser welding Materials are joined Materials are by heating which is Electrode joined by caused at the heating that is Comment from a technical developer Steel electrode by pressure sheet produced by a and large electrical focused laser Body Assembly Engineering Div. Takatoshi Ito current. beam. (Contact welding (Non-contact welding) We were responsible for all stages of → Spot marks occur.) development from initial development to line installation, and succeeded in creating a Spot mark (Abolished) polishing process new benchmark technology. In the future, we will continue to develop production technologies for creating even-better vehicles that will please the customers, and creating even-better plants. [Example: Painting process]

As a result of developing a method for changing to 3-wet Change from masking + 2nd top coat to tape application! painting and using color tape at painted locations, the Shortening of painting process

painting booth and drying oven processes which produce No. of processes large amounts of CO2 have been shortened by 1/2, also reducing the energy used in production and VOC 8 ▲50% contained in the paint. A large amount of masking was also eliminated. 4 Applying masking Tape application Previous model New model + Top coat

Intermediate coat 3-wet painting Creating a painting plant that is comfortable to work in Baking Intermediate coat Comment from an engineer Top coat Top coat Surface Finishing Engineering Div. Masato Miura

Baking Baking By focusing on ease of working from the Applying masking Change to color tape beginning and utilizing technical innovations, we succeeded in creating a 2nd top coat painting plant that looks much different Drying from previous plants. Removing masking In the future, Development, Production Engineering, and Manufacturing will join together to study and achieve ever-better plants for creating ever-better cars.

13 ■Creating Ever-Better Cars Assisted Mobility Vehicles and Special Purpose Vehicles to Meet a Wide Range of Needs Providing Mobility Freedom and Happiness to Everyone We are developing assisted mobility vehicles that can be enjoyed by disabled persons, as well as by elderly persons, nursing caregivers, and family members, and are also developing and providing a wide range of special purpose vehicles that are built to meet market needs.

Assisted Mobility Vehicles and Units In order to satisfy our customers, we visited nursing care facilities, facilities for the elderly, and dealerships to see how our products are actually used and to acquire user opinions ‒ information which we apply to product development.

Activities for investigating how customers use our products and applying the results to development We have developed and marketed the Hiace wheelchair improves ease of use by the customers.

Input from customers Moved belt anchor ・When the caregiver attaches the seatbelt to a person in a position wheelchair, passing the belt through the wheelchair downward. wheels is difficult and time-consuming. ・When the seatbelt is fastened to a person in a wheelchair, it sometimes contacts the neck of elderly users. Ensured space Increased rigidity between neck of belt front end. and belt.

Seatbelt that is easy to pass Seatbelt aligned Promotion activities in Japan and overseas through the wheelchair with shoulder We are actively carrying out promotion activities in Japan and overseas so that more people know about these vehicles. Comment from a developer of assisted mobility vehicles Conversion & Mobility Vehicle Center Fukutoshi Nokubi

Because these vehicles are used to take persons to and from day care services and welfare facilities every day, we aimed to develop a product that was convenient for both wheelchair users and caregivers, and A Toyota Auto Body Experiencing an assisted could be used with confidence. employee explaining by mobility vehicle We will continue developing products demonstration (China (Beijing) International that ensure high levels of safety and (Barrier-free exhibition in Exhibition of Rehabilitation, reliability in the future. Osaka) Nursing & Healthcare) Lineup of Assisted Mobility Vehicles and Equipment Special Purpose Vehicles Our subsidiary Tokai Utility Motor Co., Ltd. proposes a variety of utility vehicles to meet a wide range of customer applications.

Mobile sales vehicle Airport baggage Patrol vehicle with snowplow transport vehicle

Lineup of Special Purpose Vehicle Equipment Activities of Tokai Utility Motor Co., Ltd. 14 ■Creating Ever-Better Cars Environmentally Friendly Cars (Ultra Compact EV COMS, Fuel Cell Vehicles) Preparing for a New Kind of Automotive Society The ultra compact EV COMS that is environmentally friendly and easy to drive is being used for a variety of purposes. We are also working to develop and produce the core components for Toyota's fuel cell vehicles that are leading the way to a hydrogen society.

Ultra compact EV COMS Used for a wide range of purposes The environmentally friendly, compact, and highly maneuverable COMS is a car suitable for short-range mobility for purposes such as deliveries, sales, or shopping. In Tokyo, a field trial is being conducted by the Ministry of Land, Infrastructure, Transport and Tourism by installing special spaces for car sharing arrivals and departures close to train stations. COMS are being used in a growing number of places, including as a means of tranportation for mechanics at airports and other facilities where space is limited.

Beverage deliveries Sharing vehicle Airport grounds transport (Yakult) (Times Car PLUS × Ha:mo) for mechanics (JAL Engineering) Verification testing We are utilizing the Ultra-Compact Mobility Certification System of the Ministry of Land, Infrastructure, Transport and Tourism and are conducting verification testing of a package delivery COMS with increased cargo capacity, as well as a two-seater COMS for government services and ride-sharing purposes. Nagoya City, Aichi Prefecture Toyota City, Aichi Prefecture Package delivery COMS (Japan Post) Two-seater COMS (sharing) Fuel Cell Components

Development and production of fuel cell components The world's first 3D fine-mesh flow field that was developed by our company is a core component in the fuel cell stack of the Toyota Mirai fuel cell vehicle. Machining of the 3D fine-mesh flow field utilizes the ultra-precise, high-speed stamping technology that was developed by Toyota Auto Body, and is capable of producing extremely fine 3D lattice structures. 3D fine-mesh flow field Fuel cell stack (magnified view)

(Image provided by Toyota Motor Corporation)

15 ■Creating Ever-Better Cars Creating High Quality Cars Delivering High Quality Products by Putting the Customer First We are working to create global No. 1 quality products that our customers can always use in safety and with confidence. We check for customer input regarding actual products in markets around the world, and carry out daily activities for improvements and preventive action, and work to ensure that all employees share the understanding that“quality is the lifeline of a company”.

Putting Customer First into Practice Throughout the Company I would like to sincerely thank everyone in the company for working together in large numbers of new product projects and To set the Customer First, Quality First, and activities to improve quality. Genchi-Genbutsu (going to see the actual site and actual Our mission is "creating ever-better cars that continue to support lives around worldwide, for people and for the object) ideals deeply into the minds of all of our world". Our company is responsible for everything from global employees, we regularly conduct quality lectures and product planning and development to vehicle production. exhibit quality case studies, and provide multi-level quality The key principles on which this mission is founded are Customer First, Quality First, and Genchi Genbutsu. training. This is intended to ensure that employees However in fact we are still causing inconvenience to a large number of our customers. Exhibition of case-studies understand the need to improve the quality of their work in At this exhibition, we look back at problems that occurred in the using actual objects order to satisfy the customers, and apply this past. I ask that everyone renew their understanding of the need to improve the quality of our work in order to satisfy the understanding to their everyday work. customers. Applying Customer Input to Our Products We utilize a genchi-genbutsu approach to obtain input directly from customers around the world and apply it to product development. Continuing from the previous year, during fiscal year 2016, staff from our Quality Assurance Division conducted investigations of how our products are used in the market in order to identify customer and market needs.

○: Fiscal year 2015 ‒ 2016 Careful pre-delivery check The Land Cruiser and LX local investigation countries have gained the most trust in harsh environments... Russia

Japan Bahrain U.A.E. Hong Kong Mexico Oman Thailand The Philippines Angola Singapore Peru

Argentina Sharing market information with agents (Russia) Australia Visit to a dealership’s new-vehicle inspection center (Japan)

Examples of Quality Programs: JiKotei Kanketsu (built-in quality with ownership) activities, EDER activities, customer evaluations

Topics

Australia "2017 4×4 of the Year" award and achievement of Australia ANCAP5☆ rating (top rank)

Award in Australia! As a result of safety and marketability improvements and expanded variations, we were awarded the Australia "2017 4×4 of the Year" award. (Awarded to: Double Cab)

Further improvements to safety The Land Cruiser 70 has been used continually by customers around the world. We developed a "single cab pickup truck" that features further safety improvements. We applied the results from genchi-genbutsu investigations and customer requests to our products. (Collision safety) (Acquired Australia ANCAP5☆ rating in Oct. 2016.) 16 ■Creating Ever-Better Cars Working Together with Our Suppliers Aiming to Create Ever-Better Cars We are engaged in purchasing activities that are based on open and fair transactions, aiming for co-prosperity based on relationships of mutual trust with our suppliers, as we work to create ever-better cars.

Basic Approach to Purchasing Creating We provide open and fair bidding opportunities to all suppliers in Japan Ever-Better Cars Strengthening and overseas that would like to do business with Toyota Auto Body, Expansion planning and Production of overseas regardless of their nationality, size, or lack of previous transactions. development innovations business capabilities For this purpose, we have established a Basic Purchasing Policy and related New product Policy Joint engage in global purchasing activities that aim to achieve the Customer explanation development activities exhibitions First ideal in partnership with our suppliers. meetings and study groups Basic Open Mutual Promoting policy and fair trust localization Aiming to Create Ever-Better Cars Towards creating ever-better cars New ideas for product development and manufacturing in conjunction with all Design members of the supply chain

When the time for a model change approaches, in addition PE Toyota Auto Plants Body to creating a wide range of bidding opportunities, we also hold part workshops so that Suppliers Purchasing suppliers can examine the parts and understand our system of vehicle production, as well as other events such as exhibitions of new technology proposals from suppliers. Creating ever-better cars by In cooperation between Toyota Auto Body and all centralizing the four key areas members of the supply chain, we are carrying out activities (Cross-functional development VA study meeting with the 1st-tier and to develop new ideas for creating ever-better cars. operations) 2nd-tier suppliers

Sharing information with suppliers In order to share changes at our company and our purchasing policy with suppliers, we hold the Purchase Policy Presentation Meeting (March of each year), Management Lecture (twice annually), and CSR Study Meeting (twice annually), and other meetings.

To make clear what we expect from our suppliers, we have created and implemented the Supplier CSR Guidelines and Green Purchasing Guidelines. Supplier exhibition Programs that Support Purchasing Activities Educational activities using study meetings with supplier participation We are conducting education activities with a wide range of study meetings conducted through the Shatai Kyowakai, a cooperative meeting of suppliers. These include research meetings, exhibitions, and the Transport Study Meeting and Safety and Health Liaison Meeting that are intended to eliminate accidents.

Applying the results from supplier questionnaire Exhibition of excellent surveys to our purchasing activities case-studies from the In order to further reinforce our system of open and fair transactions Kyowakai and relationships of mutual trust, we ask approximately 340 suppliers Mutually sharpening our skills at to evaluate our company’s purchasing activities, and obtain opinions the Transport Study Meeting and requests that are applied to future purchasing activities.

17 ■Developing Employees and Creating the Workplace Developing Vibrant Workplaces and Independent Employees with a Strong Spirit of Challenge In order to create ever-better cars satisfying our customers, it is important that every employee is able to work vibrantly in an energetic workplace, and also for our employees to continue to grow and develop. For this purpose, we are constructing a personnel training system that helps our employees create a clear career vision for their future, and that incorporates a training curriculum for developing professionals who can be active globally.

Fundamental Approaches to System for Promoting Individual Growth Human Resource Development and Support for Employees At Toyota Auto Body, we focus on training Career vision Step up Targets Leadership "independent-minded employees" so that every single and goals employee has a career vision for the future, and can Management Personal take the initiative and work with positive spirit. opportunities Providing training Solutions Growth Leader awareness We are promoting individual development with the Language experience learning Personal "Career Support Program (CSP)" which provides effort CSP Rotations Technologies systematic support for individual employees. We also and skills help individual employees to grow by conducting Training posts Company training programs (training, transfers, OJT) management training, solutions training, and other New employee OJT training opportunities as well as experience through training OJT, rotations, and overseas training posts. Experiences through work Training Professional Personnel Technical Development of Professional Personnel Our training of engineers involves development lecture Development Engineer Training System (Step-climbing training table) rooms, educational exhibits, and CAD training rooms Beginner-level engineers Intermediate-level engineers Entry-level employees Manager so that our engineers can learn through experience by (years 1 to 3) (years 4 to 8) genchi-genbutsu (going to see the actual site and Improve sense and sensitivities of managers. Manager training actual object) and can make best use of their skills. 1. Study from group leader handbook Intermediate-level (At time of new posting) Advance from part engineers training 2. Learning through reflecting on past actions First-year new employee training is followed by to vehicle developers. --- others third-year beginner-level training. Beginning from the 1. Vibration & noise Beginner-level 2. Collision safety Become training 3. Human engineering fifth year, intermediate-level training and manager independent --- others after 3 years. New employee 1. Design information system (beginner) training for group leaders is carried out. The use of training 2. Steel sheet and resin material engineering --- others step-up training and workplace OJT also aims to help create development professionals.

New employee basic technical training New employee CAD* training Intermediate-level engineer training Group leader training * CAD:Computer Aided Design (vibration & noise) (management) Production engineering professionals Aiming to create ever-better cars and ever-better plants, we carry out technical training based on the principles of genchi-genbutsu.

During first-year new employee training, trainees learn about vehicle disassembly and other basic technical learning. Beginning from the second year, they learn about work methods and concepts from senior employees. Technical training is conducted on every level in order to improve production technical skills. Vehicle disassembly training Young engineer training for entry-level employees (element devices) 18 ■Developing Employees and Creating the Workplace Training Professional Personnel Production professionals In order to create cars that customers can feel safe in using, we carry out programs for systematic acquisition Production Engineer Trainig System of skills, as well as skill improvement programs and QCC Capable of Upper-level instructing others (skills competition)

activities that also include Japan and overseas Refining skills engineers Capable of

subsidiaries. QC circle activities (management) self-improvement Upper-level training Educating new employees Intermediate-level Understands Before employees are assigned to a workplace, they engineers OK/NG undergo basic knowledge training and basic skills (up to 12 years) Intermediate-level training training that is conducted by full-time trainers. We are Beginner-level Beginner-level also putting effort into basic knowledge training in training engineers Mid-level (up to 5 years) employee training order to instill self-awareness and an understanding of Skills Olympics

safety among employees. New employees New employee training Aiming to develop future leaders, we also select Years 0~142 365871091211 141315 persons with a strong desire to challenge themselves Basic skills training for to participate in the National Skill Olympics. We won a new employees: bronze medal in 2016, and are working to further improve our skills.

Mid-level employee training Skills and knowledge training are carried out in stages according to the employees’ qualifications, and training is conducted so that employees repeatedly acquire the necessary basic principles for practical Training conducted by Bronze medal in the 2016 work. full-time trainers automobile panel category Soichiro Komori Refining skills The company-wide skills competition is an opportunity for refining skills. Employees from subsidiary companies in Japan and overseas also participate in this competition. Participants compete in 10 job categories including body work, painting, molding, assembly, and maintenance and engines as they seek to improve their skill levels. Assembly category Finishing category (Sugity Creatives, Indonesia)

Engineering trainers We also conduct training for local shop floor workers of overseas subsidiaries, as we work to pass on our monozukuri (manufacturing) knowledge. Japanese engineering trainers are sent to conduct local training, and local trainers receive training in Japan.

Training by instructors sent Training in Japan overseas (in Indonesia) (employees from USA) QC circle activities We are conducting activities aimed at creating workplaces where every member has a high level of problem-solving abilities. As one part of a program to improve quality at all affiliated companies in Japan and overseas, the first Global QCC Convention (Indonesia Convention) was held last year, with presentations given by 4 circles from 3 local affiliated companies. The champion circle Presentation at the Indonesia Presentation of a commemorative from Toyota Auto Body also participated and Conference plaque by our Managing Officer presented, for mutual education leading to further (Toyota Auto Body representative: Toyoda improvements. Rainbow Circle) (Indonesia RPT Circle) 19 ■Developing Employees and Creating the Workplace Training Professional Personnel Global Human Resource Development [Persons with overseas post experience by country] We are working on global human overseas operations of the entire Russia (Persons) 4 281 Belgium China Toyota Auto Body Group. 300 9 23 USA 255 Thailand 84 3 51 Bahrain Taiwan 200 185 5 14 130 Singapore India Kenya 1 100 73 1 Indonesia 1 47

Malaysia 0 Australia 34 [Loaning employees for overseas ‘10‘12‘14‘16‘17 (FY) 4 development training and for overseas design training] As one means of rapidly developing personnel who are capable of operating our From January 2017: Comment from a sixth-year trainee in training business overseas, in fiscal year 2011 we Production Control Div. introduced a system of sending younger Hideki Munakata (2nd from left) (Thailand: TDEM) employees on loan to overseas companies. So far, 38 younger employees have been I really experienced the difficulty of communicating sent, and have expanded their areas of my ideas in English. The moment when everyone activity following their return as they make understood what I wanted to communicate and all of use of their training experience in work them took action on the same vector was extremely related to our overseas business. rewarding for me. The Design Division sends trainees to work I would like to make use of this experience in my Reporting on production status work after returning to Japan. at a North America design studio (CALTY) to local staff of Toyota.

Ryosuke Tairadate (Design Div.) Kohei Saito (farther away) from the Miho Yasui (left) from the Fujimatsu studying design in N. America (CALTY) Body Assembly Engineering Div., Administration Div. discussing part training in N. America (TEMA) orders in N. America (APMM) Enhancing overseas communication skills English training is conducted for all personnel who support overseas business, aiming to achieve a level where they can carry out overseas work without an interpreter. Instructors who are native speakers of English teach a technical course centered on English for technical instruction, and a skills course for learning basic English conversation and English Improving English skills through Trainee receiving technical instruction for teaching skills. conversation with instructors in English Training of overseas local personnel who are native speakers of English Toyota Auto Body accepts local leadership candidates for "Global Training" in Japan, aiming to make the overseas companies independent. Through communication, we create the opportunity to understand each other's cultures, and work for active exchange of information.

Trainee explaining the results after Host workplace members learning about returning to his country other cultures through communication [Thailand: Toyota Auto Works] with trainees (Kyoto Study Group) 20 ■Developing Employees and Creating the Workplace

Promoting Diversity and Awareness Education for Being Good Members of Society Toyota Auto Body is carrying out activities to promote diversity, so that a broad range of personnel can work together happily and worry-free. We are also working to build awareness of how to be good members of society.

Activities for diversity Promoting advancement of female employees In order to support a balance of work and child-raising, we have created an environment for continued working, including a maternity leave system and internal daycare center.

We are also working to create an environment for vibrant activity, including expanding the flexible short-hours working system and the system for partially working from home, and conducting seminars for superiors aimed at supporting women Partial working from home Seminar for managers with in making use of their abilities. female subordinates

Support for the working styles of older employees We are carrying out process improvements that allow anyone to work comfortably, so that all employees can continue to work in good health.

Body awareness seminars are held for employees in their 40s Example of work improvement Awareness seminar and 50s, providing opportunities for systematic thinking about for reducing physical burdens (physical strength) ways of working, asset formation, and building physical (use of the "rakuraku seat") strength beginning from an early stage.

Promoting the hiring of disabled persons The number of full-time employees with disabilities in fiscal year 2016 was 190, or 2.39% of the total.

The company is actively working to support active work by disabled persons, including through internships for interested high school students and their families, and through sign language classes for managers in workplaces where hearing-impaired employees are assigned. Experiencing work through Sign language class internships Being Good Members of Society Deepening Awareness of Human Rights Aiming to improve awareness of“Respect for Individuals” we are providing internal training for all employees concerning various human rights issues, including social integration issues and humans rights for women and foreigners. We also actively send employees for outside training and are working to develop specialists in the“buraku” discrimination problem and other human rights issues. In-house training Human rights panel exhibition (new employee training) (plant)

21 ■Developing Employees and Creating the Workplace

Ensuring the Mental and Physical Health of our Employees We recognize that the health of our employees is an important element in our quest to create ever-better cars, and provide fine-tuned health follow-up so that they can enjoy fulfilling company lives in good physical and mental health.

For Fulfilling Company Lives in Good Health We are carrying out a variety of activities aimed at developing employees who are capable of independently maintaining and improving their own health. These are based on the following key activities: maintaining and improving mental health, improving lifestyle habits, stopping smoking, and the prevention and detection of cancer.

Aiming for easily approachable consultation offices We have created a consultation system, with clinical psychologists who are experts in mental health assigned to the Fujimatsu, Inabe, and Yoshiwara plants.

Stress checks are performed for all employees, and informal workplace meetings are held for workplace environment improvements utilizing interviews with high stress individuals and the workplace diagnosis results. Self-care classes are also conducted, aiming to improve individual resistance to stress. For building healthy habits A health promotion floor will be opened on the 3rd floor of the Shin-Seikyou Building in order to give employees the opportunity to reconsider their lifestyle habits. Image of facility

With health-building classes, measurment of physical fitness, and a training facility that employees can use freely before Aerobic exercise equipment and after work, we are working to promote improved employee health. Exercise facility

Creating non-smokers taking mental health leave> prevent smoking ‒ the largest risk factor causing (%) lifestyle-related diseases, and solicited participants in the Decline of 10% or more over 8 years No Smoking Challenge from each workplace. 234 persons participated in fiscal year 2016, and of these 117 successfully quit smoking.

The 22nd of each month is the Toyota Auto Body no smoking day, and continues to create opportunities for FY2009… FY2012… FY2016 employees to quit smoking.

For early detection of cancer Screenings for various types of cancer are conducted Level of stomach within the company at no cost to the employees, and cancer risk Evaluations of stomach cancer employees are referred to external medical institutions for “High” Group Group risk are determined based also C D on the results from upper GI early detection and appropriate treatment of cancer. Group 4% 1% B fluoroscopy. In fiscal year 2016, screening for stomach cancer was 14% Identified high risk individuals are expanded, with stomach cancer risk evaluation introduced recommended to seek treatment in addition to upper GI fluoroscopy. for removal of helicobacter pylori In fiscal year 2017, screenings for breast cancer and Group bacteria or gastroscopic ovarian cancer will be introduced, and additional A 81% examination (100% follow-up is anti-cancer measures carried out. carried out). Level of stomach cancer risk“Low” 22 ■Developing Employees and Creating the Workplace

Putting Safety First and Working to Create Safe People and Workplaces All suppliers and overseas subsidiaries are carrying out activities aimed at eliminating accidents, including strengthening of efforts by top management to create a safety-first environment, and activities to improve safety sensibility among individual employees.

Putting Safety First for All Employees Creating a "safety first" forum for top management At our company-wide Safety Rally, everyone including company executives, department and section managers, and members of affiliated companies together recited a slogan describing the importance of basic safety activities, with the objective of eliminating dangerous incidents.

In September, a workplace safety activity check meeting was established for department and section managers to exercise leadership in accident prevention, and to check the conditions July 2016 company-wide Safety Rally Workplace check by top of equipment risk-reduction activities, creating an opportunity management in September 2016 for top management to put "safety first" into practice. Activities to improve safety sensibility of all employees Five basic actions such as pointing and calling confirmation at intersections, and holding the handrail on stairways were decided, and the "Po-ke-te-na-shi" activities to protect personal safety are being carried out.

At company-wide KY training aimed at increasing safety awareness among all employees, specialist KY trainers are assigned to each plant and conduct experience-based training Activity using flags to promote Experiencing ladder work and awareness identifying potential risk factors for KY (identification of potential dangers), and work on a daily basis to prevent accidents. Putting Safety First at our Suppliers We are working to prevent accidents in logistics, including by holding a yearly study meeting for ensuring safety when driving forklifts with participation by members of shipping agents, and also by coordinating basic operations during forklift work and identifying and correcting problems.

Based on the idea of reducing accidents on company grounds Forklift safety rule study meeting Giving instructions during a to zero, we are carrying out safety activities together with our for all shipping agents patrol by committee members suppliers and contractors. (Technical Training Center) Putting Safety First at Overseas Companies

Development of safe personnel is an important issue overseas as well, and we conduct experience-based training for KY Experiencing the (identification of potential dangers) and operate safety benefits of seatbelts workshops in the same way as in Japan.

For crane work which involves a particularly high level of risk, local trainers undergo training in Japan in order to produce safe crane operators with no variation in ability levels at different companies. Personnel development activity at Crane trainer training in Japan a safety workshop in Indonesia (SC) (APMM)

Safety and Health Policy Labor Accident Status 23 ■Developing Employees and Creating the Workplace

Creating Healthy Workplaces with High Levels of Compliance, Traffic Safety, and Accident Prevention Awareness

Improving Compliance Awareness among All Employees We have established the Corporate Ethics Committee as a subcommittee of the CSR Committee, and hold discussions and set directions for activities aimed at improving legal compliance and building a healthy corporate culture. We are endeavoring to improve compliance awareness throughout the entire Toyota Auto Body Group. Additionally, we are continuing to ensure complete compliance among our employees via education and training related to ”Our Promise” (the Toyota Auto Body Group Action Policy).

Toyota Auto Body Group Action Policy (Issued March 2005) Expanding programs aimed at ensuring compliance As business becomes increasingly globalized, we are working to improve compliance awareness in the Toyota Auto Body Group both in Japan and overseas.

In Japan, we have created tools that allow us to carry out voluntary compliance activities, hold study meetings that include affiliated companies, and conduct regular educational activities throughout the group in order to maintain and improve compliance awareness.

Overseas, we have launched programs aimed at improving Persons in charge from Japan Employees engaged in overseas employee awareness based on the programs used in Japan, subsidiaries receiving compliance operations receiving compliance and conduct training for employees who are assigned instruction from a consulting lawyer instruction for their countries from overseas and for employees engaged in overseas operations. a specialist lawyer Working to Develop Personnel Who Do Not Cause Traffic Accidents As a company engaged in the production of automobiles, we aim to develop personnel who do not cause traffic accidents, and for this purpose we are expanding our company-wide traffic safety activities aimed at improving awareness among all employees. Employee traffic safety training We are carrying out activities aimed at improving the level of driving skills among all employees. Through means such as assessing driving aptitude with driving simulators, and conducting a riders' school for motorcycle users, we are working to improve traffic safety awareness among all employees.

Use of a driving simulator to make Participants receiving motorcycle Educational activities for families and driving skill levels visible riding instruction from motorcycle police community members We operate a traffic safety corner at company events and conduct educational activities for attendees. Our company's original "OOKiNi driving" educational activity is aimed at eliminating traffic accidents, and the company is working together based on these slogans to reduce traffic accidents.

OOKiNi driving O: Yielding to pedestrians at crosswalks ("Oudanhodo" in Japanese) Participation by traffic safety mascots Operating original company O: Protecting the elderly ("Otoshiyori" in Japanese) at events, and other activities aimed educational activities for more Ki: Yellow ("Kiiro" in Japanese) lights are stop signs. at expanding opportunities for traffic practical safe driving education Ni: Happily ("Nikkori" in Japanese) yielding to safety education other drivers 24 ■Developing Employees and Creating the Workplace

Making Use of Lessons from the Inabe Fire, and Aiming to Create Workplaces with High Levels of Fire and Accident Prevention Awareness

The entire company is working together for recurrence prevention using the lessons learned from the fire that occurred at the Inabe Plant in March so that such an accident never happens again.

Thorough analysis of the fire site was performed to identify the true cause, and measures such as making hot air leaks visible and repairing duct cracks are being carried out across the company. Fire and accident prevention training activities are Thorough analysis of the fire site Learning lessons from the record also continuing so that fire awareness does not fade. of first response General disaster preparedness exercise in preparation for a major earthquake General disaster preparedness exercises were held at unannounced times simultaneously at the three plants. More realistic exercises were conducted, including smooth evacuation of buildings, checking for member safety, and first aid for injured persons, as well as an exercise for initial response headquarters at the new Disaster Preparedness Center. Initial response headquarters training and an exercise simulating a sudden disaster were also held to improve practical skills. "Disaster Response Handbooks" were distributed to all employees and their families to ensure understanding of the correct actions to take in the event of an earthquake and methods of checking for safety of coworkers and family members.

Fujimatsu Inabe Yoshiwara

Firefighting training Employee safety Transport training using a company check by block using stairway fire truck headquarters evacuation tools

First-response firefighting training Emergency transport at a first-aid station Transporting an injured person with a wheeled stretcher

Initial response headquarters training Training simulating a sudden earthquake Distributing Disaster at the new Disaster Preparedness Center to improve practical skills Response Handbooks

Company-wide BCM activities We are working to expand and strengthen measures by the BCM* Committee in case of large-scale damage caused by a Nankai Trough earthquake. Disaster mitigation: (1) Humanitarian support BCM Earthquake-resistant measures for buildings and equipment (lives come first, rescue) Committee Initial response: Construction of an initial response system, training for safe (2) Rapid recovery of disaster-affected areas evacuation and safety confirmations, regional coordination (3) Recovery of our company’s operations Recovery: Strengthening of recovery system for company-wide operations and production, strengthening the supply chain

*: Business Continuity Management 25 ■Developing Employees and Creating the Workplace

Communication Activities for“Creating a Vibrant Workplace” In order to create a vibrant workplace culture that supports the happiness of each individual employee and the development of the company, we are attempting to breed a sense of unity through more active communication in both formal and informal settings.

Aiming for Cheerful, Fun, and High-Spirited Workplace We are working to expand communication that transcends Creating Vibrant Workplaces via Communication Activities barriers between workplaces and positions and to create a sense of unity through formal activities such as personal Workplace Human resource Teamwork Management energy development meetings with superiors and small-group activities, and through Reliable Personnel Management by Production Line informal activities such as various events. To foster a feeling of unity at the CV Company, Toyota Motor Workplaces with a positive atmosphere and Toyota Auto Body worked for communication by Communication to Communication to participation in each other's events during fiscal year 2016. guarantee work results improve human relationships Formal Activities (MBO and challenge sheets/C Meetings) Informal Activities

[Company-wide] [All Toyota Group]

The improved Toyota Auto Body Group Big Holiday preliminary tournament to Futsal Tournament that participants can decide the teams which will represent The All-Toyota Big Holiday featuring a wide enjoy even if they have never played before the company range of events including sports matches between the companies

[Individual offices and divisions]

[Toyota CV Company]

Fujimatsu district "Happy Festa"

Development division Yoshiwara Plant sports festival go-cart race Participating for the first time in the Toyota Relay Race Competition as members of the CV Company

26 ■Developing Employees and Creating the Workplace

Creating a Feeling of Employee Unity and Contributing to Society Through Sports Clubs Through support for the handball and volleyball clubs, which are members of the top leagues in Japan, we are working to boost employee motivation, create a feeling of unity, and also vitalize local sports and raise the next generation. Handball and volleyball clubs The sports activities of the "Brave Kings" Toyota Auto Body handball club that is active in the Japan League, and the "Queenseis" volleyball team that competes in the V League, help to boost employee motivation, create a feeling of unity, and actively contribute to society.

Victory at the 6th Prince Takamatsu Memorial Cup all-Japan 5th place at the 2016/2017 V Premier League final 6 handball championship Topics Visiting class by athletes in the disaster-affected Tohoku area

Handball team member Kadoyama

Cheering for the team by the workplace members Visiting class in the "Dream Teacher: Sports Mind Project"

Topics 2017 : 4th Consecutive Victory in the Production Vehicles Class

Said to be the toughest race in the world, the Dakar Rally has proven the Land Cruiser durability, off-road performance, and reliability. In addition, participation by employees as team members and challenging themselves on a global stage helps to develop persons who can create ever-better cars. The knowledge and experience gained from the race are utilized in making the Land Cruiser even better, and help us to deliver smiles and excitement to the lives of customers around the world.

In this race, we use eco-friendly 100% biodiesel fuel that is refined from used cooking oil provided by people living in the areas nearby our company. This year was also our 7th consecutive victory in the class for vehicles using environmentally-friendly alternative energy.

Approximately 500 participants including the TLC company association, employees, heads of nearby districts, local junior high schools, high schools, and others 27 ■Social Contributions Aiming to be a Company That is Needed by Society In order to be a company needed by society, we consider it important to fulfill our social responsibility to earn the trust of everyone in the local communities. We are expanding our activities that contribute to society in areas (the environment, welfare, and raising the next generation) where the characteristics of the Toyota Auto Body Group can be put to good use. Activities in the Environment Field Company forest maintenance activities Toyota Auto Body Group companies are continuing to carry out forest maintenance activities centered on the locations of offices in Aichi, Mie, Kagoshima, Indonesia, and other areas. [Japan] The forest maintenance activities conducted by companies Forest maintenance activity in Habu, Learning safe tree thinning methods in Aichi Prefecture are led by the employees themselves, Toyota City, Aichi Prefecture from employee instructors and are centered on the volunteer circle members. Even new participants can safely experience woodland thinning and forest maintenance. [Overseas] In addition to environmental maintenance through mangrove planting in Indonesia, cultivation of fish, shellfish, and seaweed in regenerated mangrove swamps is helping Mangrove forest grown over Tree-planting at a campsite in the to boost local economies.Beginning from fiscal year 2016, five years in Indonesia outskirts of Jakarta we are also engaged in a forest-planting activity with the participation of local residents that produces a feeling of unity among employees. Activities in the Welfare Field Donations of picture books by the Toyota Auto Body Group In cooperation with our subsidiary in Indonesia, we are donating translated Japanese picture books to local children. Translated picture books donated Children happy to receive the This activity has continued each year since 2009, and more to local Indonesian children picture books than 50,000 picture books had been donated by 2016. Transport services provided in cooperation by a company block and circle Using the assisted mobility vehicles that are Toyota Auto Body products, these employees provide transport services in support of activities outside the home by persons who seldom have such opportunities. In cooperation between members of the Chiryu City Council of Social Welfare and the Toyota Auto Body transport Taking visually impaired persons in Chiryu City to pick melons in Tahara City support circle volunteers, activities are continuing to support using our company's assisted mobility vehicles activities by wheelchair users outside the home. Active participation in activities for understanding and support of disabled persons The Fujimatsu Block and volunteer members of the nursing home visit circle provide shows of hula dancing, magic tricks, and other performances on visits to nursing homes for the elderly, and are working for understanding and support of disabled persons with activities including cleaning of Interacting with elderly persons at a Wheelchair cleaning was started six wheelchairs, nursing care equipment, and assisted mobility hula dance performance at a nursing years ago and is performed six times vehicles. home for elderly in Kariya City a year. 28 ■Social Contributions

Activities in the Field of Raising the Next Generation Accepting junior high school students for workplace experience learning We accepted students for workplace experience learning as extra-curricular learning of living knowledge. The program utilized the character of a manufacturer of entire cars, and incorporated contents from development through production. Approximately 75 students were accepted from all nine schools in Kariya and Chiryu. Thank-you letter Making a clay model with instruction Experience making a dish with wave from a member of the Design Div. design at skills learning at a sheet Dispatching instructors to manufacturing workshop classes We dispatch instructors who possess the manufacturing skills developed by Toyota Auto Body to the "Ultimate Car Manufacturing Project" operated by Aste Toyota. Through this activity, children meet with manufacturing professionals and experience the enjoyment and sense of accomplishment of manufacturing in order to develop the "manufacturing spirit". Students experiencing surface Scene from the presentation event Helping to raise the next generation preparation at the painting course at the end of the activity through sports As part of support for youth sports in Kariya City, we have provided sponsorship and operating support for the Toyota Auto Body Cup youth soccer competition since 1995. The handball club also sponsors the TAB Cup handball competition which invites junior high school teams from within and outside of the prefecture. Our employees operate the competition, meet with the players, and Soccer tournament with 500 Handball tournament for exchange with fourth-grade elementary school junior high school students, with contribute to the promotion of sports. students from Kariya City participating handball team members as the referees Contributing to society through donations and sponsorships The residents association of the dormitory for single employees donates wheelchairs to a nearby nursing home. This activity is conducted by 500 dormitory residents and has continued for 22 years, and has so far contributed 77 wheelchairs. Christmas trees and tanabata decorations produced by individual workplaces are also donated to nearby Donating wheelchairs to Donating a Christmas tree to kindergartens and elementary schools in Kariya City. a nursing home in Kariya City a kindergarten Contributing to Society Through Disaster Relief Activities to support reconstruction in disaster-affected areas in Kumamoto As activities to support recovery from the Kumamoto Earthquake which occurred in April 2016, the company contributed relief supplies and funds, and also held a recovery support charity event sponsored by the Handball Club, and donated money from the sale of team goods to the disaster-affected area. Toyota Auto Body directors, handball Volunteer employees participating in In cooperation with a domestic subsidiary in Kagoshima, team members, and labor union work rebuilding a collapsed home in we also conducted volunteer activities for recovery to chairman visiting the governor of Mashiki Town meet the specific needs of the disaster-affected area. Kumamoto Prefecture to donate funds 29 ■Social Contributions

Kariya Fure-Ai Park ‒ A Relaxing Place for Interacting with Members of the Local Community and Learning about Biodiversity Using park facilities to contribute to and Total area: Approx. 50,000 m2 cooperate with the local community Kariya Fure-Ai Park Biotope and Fure-Ai Area: Approx. 15,000 m2 The Fure-Ai Park Community Liaison Committee was created for environmental workshops, agriculture Biotope experience programs, and other operations that take place Rice paddy field Wooded area in Fure-Ai Park. The committee is composed of local and with a small stream outside experts, members of nearby schools, members of Fruit orchard and the prefectural government and other administrative agricultural field Futsal and tennis court bodies, and local agriculture instructors. Its goal is Fure-Ai Area cooperation that will ensure that these activities do not come to an end, and instead continue to make the park a permanent place for interaction with the local community. Spring Summer The agriculture experience programs which are run in cooperation with the local community are taught by company employees and local agriculture instructors. As part of the social studies and general education classes for fourth year elementary school students, the participating students experience agriculture and rice farming throughout the year including preparing rice seedlings, Rice planting experience for fourth-grade Lively summer festival that attracts planting rice fields, harvesting, threshing, making mochi students from a nearby elementary school many visitors (rice cakes), and weaving ceremonial ropes from the rice straw. Autumn Winter All of the participating children can learn from experiences they never had before, such as entering the muddy fields to plant rice, using a sickle to harvest rice, and weaving ceremonial ropes. They also learn about the functions of rice fields and other environmental knowledge.

A variety of participation-type seasonal events are held at Fure-Ai Park to make it a closer part of the local Children excited by the large sweet Making mochi (rice cake) at potatoes they dug up a harvest festival community. These events are mainly festivals, as well as agriculture experiences such as rice cultivation and sweet potato harvesting.

Environmental workshops based on collaboration by industry, government, universities, and private citizens Environmental workshops are held at Fure-Ai Park based on collaborations by government, universities, local elementary schools, and the local community. The instructors are assistant professors and science faculty students from Aichi University of Education. They direct workshops for Aichi Prefecture elementary school students and their families to learn about aquatic plants, water purification, and other nature themes. In addition, nature learning classes are also held at the same time as Fure-Ai Park events. Investigation of plants and animals in the biotope

Environmental learning class taught by an Holding a class at a nearby elementary school Holding a nature learning class assistant professor (right) and student (left) on the day after camping, from Aichi University of Education used in summer homework 30 ■Friendly to the Global Environment Working to Create Plants that are Harmonized with Nature and Coexist with Local Communities One of the fundamental principles of Toyota Auto Body is harmony with the environment, and we are working to create a sustainable society. In fiscal year 2016, we formulated a "Toyota Auto Body Long-term Environmental Vision" which challenges us to reduce our environmental impact from a long-term perspective in response to global-scale Production Engineering Headquarters environmental problems. Specifically, this is planned in the Toyota Auto Production Environment Committee Chairperson: Akitsugu Ishiguro, Body Environmental Action Plan that is established every five years Executive Vice President (currently the sixth plan, covering fiscal years 2016 ‒ 2020), and the entire Toyota Auto Body Group is working together to achieve it.

Toyota Auto Body Long-term Environmental Vision Sets items to address in six areas as we work towards 2050. -We are working on reducing environmental impacts such as CO2 zero emissons from the plants, using knowledge and capability of monozukuri (manufacturing).

Lifecycle CO2 zero • Reducing overall lifecycle emissions

New vehicle CO2 zero • Developing weight-reducing technologies and next-generation vehicles Minimizing impacts on aquatic environments • Improving wastewater quality and introducing reduction technologies Plant CO2 zero • Developing and introducing

Action level innovative new technologies Constructing recycling-oriented Creating a future social systems where humans and • Pursuing body designs for Sixth Environmental nature are in harmony easy dismantling • Joining with communities • Reducing waste Action Plan for biodiversity preservation activities

Fifth plan Expanded global reduction of environmental impacts

Fourth plan Activities based on construction of a low carbon, recycling orientated society that is harmonized with nature. Third plan

Second plan :Challenge for zero First plan :Challenge for improvement

1993 1996 2001 2006 2011 2016 2050

:Toyota Auto Body logo mark

Basic Environmental Policy Sixth Toyota Auto Body Environmental Action Plan

Results of fiscal year 2016 programs 31 ■Friendly to the Global Environment

Toyota Auto Body Environmental Action Plan

1993 1995 2000 2005 2010 2015 2020

First Plan Second Plan Third Plan Fourth Plan Fifth Plan Sixth Plan

◇Construct a system ◇Improve the level of ◇Achieve zero landfill ◇Work to reduce CO2 ◇Develop ◇Reduce environmental for environmental the programs by waste and expand emissions, and apply super-compact EV. impacts on a global scale. programs. introducing the areas of environmentally ◇Create plants that • Reduce CO2 emissions. ISO14001. environmental friendly designs to coexist with local • Enact programs for activities. our products. communities. biodiversity.

Sixth Toyota Auto Body Environmental Action Plan

Area Building a low-carbon Building a recycling- Building a society that lives Field society oriented society in harmony with nature

Product ・Improve fuel efficiency by ・Improve ease of vehicle dismantling (P.11) ・Improve the management of products environment reducing vehicle weight (P.11) ・Expand use of recycled materials (P.11) containing chemical substances (P.34) (development ・Develop and promote the use of ・COMS recycling business (P.33) ・Introduce products that contain fewer and design) super-compact EV ・Develop materials using plant fibers (P.34) substances that impact the environment

・Develop/introduce production ・Reduce environmental-impact ・Carry out activities to reduce technology that reduces substances (VOC) in painting Production emissions and improve yield environment greenhouse gas emissions, operations (P.13) improve productivity, and ・Create plants that coexist with local intensify energy-saving activities (production) communities and are harmonized with (P.13, P.35) nature (P.30)

Environmental ・Promote and improve consolidated ・Strengthen and carry out plans to prevent management environmental management (P.36) environmental risks. (Environmental ・Enhance and promote environmental ・Promote further environmental activities that are administration) education and training (P.36) coordinated with suppliers (P.36)

Environment Activity Organization and Action Items CSR Committee Chairman: President Masui Improving fuel ・We are developing and commercializing lightweight technologies that contribute to efficiency W/G greater vehicle fuel economy of a vehicle.

・Promoting reductions in dismantling time with designs that facilitate dismantling Recycling and ・We have constructed a recycling system that began operating in April 2015 for Dismantlability W/G recycling of scrapped COMS vehicles.

・Development of and conversion to replacement technologies for restricted chemical Chemical Substance substances Management W/G Chairman: Managing Officer Nakane ・We are promoting checks for presence of regulated environmental burden chemicals Product Environment Committee found (Lead, mercury, and others) in new products and in mass production, as well as auditing of management systems

Production Environment ・Risk assessment and improvements regarding environmental complaints Committee ・Activities for achieving the sixth plan targets (CO2, VOC (volatile organic compounds), waste materials, etc.)

Production Engineering Div. ・Creation of energy-saving production lines in plant renovations, and development of Energy Reduction low CO2 emission production technology Committee ・Introduction of renewable energy and improvement of energy supply efficiency

Toyota Auto Body Group ・Yokoten of environmental activities at Toyota Auto Body group companies

Chairman: Managing Officer Suda Production Environment ・Spreading of CO2 reduction activities in each business activity

Production environment Committee Meeting ・Promoting prevention of environmental risks (At production consolidated subsidiaries in Japan and overseas) Social Contribution Committee

Corporate Ethics Committee 32 ■Friendly to the Global Environment

Recycling Harmony Product Environment Three Priority Themes: Low Carbon Orientation with Nature

Development of Weight-Reducing Technologies that Contribute to Top-Class Fuel Economy Energy and global warming problems are important environmental issues that may have a major effect on humanity and the ecosystem. In cooperation among related divisions, we are developing technologies and working from the initial design stage in order to create environmentally friendly vehicles.

Developing Weight Reduction Technologies for Vehicle Parts Improving the power train and reducing vehicle weight are essential in order to improve fuel economy. We consider reducing the weight of vehicle parts as a core approach of Toyota Auto Body, and the entire company is actively working for this purpose. Main programs for reducing the weight of Alphard and Vellfire body and interior parts [Coaster examples] → Listed on P. 11 "Environmental performance" in the "Creating Ever-better Cars" section.

Recycling Harmony Three Priority Themes: Low Carbon Orientation with Nature

Active Recycling Programs and Promoting Effective Use of Resources Because we understand that all resources are finite, based on the 3 R's (reduce, reuse, recycle), we are working to improve the ease of dismantling, expand the use of recycled materials, and develop and design plant-fiber materials.

Start of a Recycling Business for the COMS Super Compact EV The COMS Recycling System that was launched in April 2015 is an original recycling system constructed by Toyota Auto Body for the COMS ‒ a vehicle which is not subject to the Automobile Recycling results (FY 2016) Recycling Act. In this system, COMS which are no longer needed are suitably recycled. We will continue to work for the 18 COMS that were no longer needed creation of a recycling-oriented society in the future. have been collected from around the country and recycled. (14 of which were old models)

COMS lifecycle

Development Crushed Recycling and design Toyota Auto Body and recycled Manufacture Collection Saitama Pref. Kyoto 2 Pref. Tokyo Recovery of lead-acid Yamaguchi 1 4 Sale Pref. batteries and other parts CHiba Scrapping Fukuoka 1 Pref. Pref. 1 1 Aichi Yamanashi Use Pref. Pref. 7 1

COMS retrieval and transport 33 ■Friendly to the Global Environment Product Environment Development of Materials using Plant Fibers Utilizing the light weight and heat strength of wood Vehicle models and number of parts (total) We have developed the TABWD *1 flame retardant Vehicle models :No. of models using TABWD Parts 5 injection molding material that uses fine wood 8 :No. of parts using TABWD 4 fibers. 6 3 With a growing record of successful use starting 4 8 2 2 from the aftermarket fog lamp bracket, this material 2 7 1 5 Fine wood fiber TABWD 2 is helping reduce the weight of parts. 0 0 2013 2014 2015 2016 *1.TABWD:Toyota Auto Body WooD plastic Examples of TABWD use (wire harness protector)

Black parts are In fiscal year 2016, locations using we began using two TABWD. new wire harness protectors.

Lexus LC Alphard and Vellfire hybrid models

Recycling Harmony Three Priority Themes: Low Carbon Orientation with Nature

Improving Management of the Chemical Substances Used in Products We at Toyota Auto Body are coordinating with our raw material and parts suppliers to identify and assess the risks of the chemical substances that are used in our products, and we are working to protect the environment via actions such as managing chemical substances and changing to the use of substances with lower environmental impacts

Certain Compliance with REACH Regulations and Other International Chemical Substance Regulations Regulations of chemical substances include the Japanese Chemical Comment from a developer responsible Substance Control Act*1, the European ELV Directive*2, and the REACH for environmental impact substances Regulations*3, as well as independent regulations in North America and Materials Engineering Div. Tsukinosuke Fujisaki Asia. This fiscal year, we worked Toyota Auto Body is working together with Toyota Motor Corporation and together with Gifu Auto Body our suppliers to build and administer a system for IMDS *4 registration and which produces primarily the other systems for chemical substance management under these kinds of Coaster, and with our suppliers, international chemical substance regulations. for careful control of chemical In May 2016, we revised the Green Purchasing Guidelines and began substances as we endeavor to produce vehicles that are friendly applying chemical substance management to the supply chain for the to people and the environment. Coaster and other new products.

*1.Chemical Substance Control Act: Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. *2.ELV Directive: End-of-Life Vehicles Directive *3.REACH Regulations : Registration,Evaluation,Authorization and Restriction of Chemicals *4.IMDS : International Material Data System 34 ■Friendly to the Global Environment Recycling Harmony Production Environment Three Priority Themes: Low Carbon Orientation with Nature

Reducing Environmental Impacts in Production Activities We are developing and introducing production technologies that generate little CO2 and VOC (volatile organic compound) emissions, and are carrying out everyday work improvements as we strive for complete energy conservation.

Activities to reduce CO2 emissions from production processes In fiscal year 2016 we achieved our targets for CO2 emissions (consolidated) per vehicle and for CO2 emissions (Toyota Auto Body).

CO2 emissions (consolidated) per vehicle CO2 emissions (Toyota Auto Body)

(kg CO2 per vehicle) (Thousands t CO2) 350 328 300

〜〜 220 213 201 196 Target:-189 300 287 200 282 263 188 Target: -261 250 100

〜 254 〜 〜〜 〜〜 0 0 2001 2013 2014 2015 2016 19902013 2014 2015 2016 Aiming for vehicle production with low environmental impact [Coaster examples] → Printed on P. 13, "Creating Ever-better Plants" in the "Creating Ever-better Cars" section. Everyday work improvements We have accelerated solutions aimed at minimizing energy when in standby mode, and improvements based on new discoveries resulting from energy conservation diagnosis. Creating processes which stop Welding robot power supply system Welding process: Changes in power when equipment is not operating Central In order to reduce the standby control ← Before Reduction in instantaneous Power panel Current installation consumption of electricity by welding supply current robots on holidays, we have installed panel control panels which can turn off Power off After installation multiple power supplies, enabling all (centralized) robot power to be switched off. Operating day Holiday Start Operating day

Previously, there were concerns of robot malfunctions resulting from CO2 reduction* *: Effects currently Welding robot instantaneous current when the 500 t CO2 per year being verified. equipment was started, however in cooperation with the manufacturer, we Comment from developers responsible Welding robot cooling flow for reducing coolant flow created specifications for and installed Body Assembly Engineering Div. Fujimatsu Body Assembly a resistor that reduces the current and Coolant Hideki Sugiura Plant Maintenance Sect. eliminates the risk of malfunction. Heating Toshiaki Kagitani Improvements resulting Spot Steel sheet from energy conservation welding diagnosis tip Cooling Coolant The coolant reduces The amount of heat generation is tower pump heating when Welding robot energized and reduced by the technology which protects the tip to reduces robot welding current, and prevent welding 通水量削減 結果 Changing the operating conditions the production engineering and failures. has a large effect on quality, and ▲26% manufacturing divisions cooperated to 指数 requires clear rationale and trial reduce the amount of coolant flow, verification. We will cooperating and aiming for further improvements in reducing energy consumption by the CO2 reduction 200 t CO2 per year the future. coolant pump and other parts. 改善前 改善後 35 ■Friendly to the Global Environment Environmental Management

Strengthening Consolidated Environmental Management We are working to create close relationships through active environmental programs that bring together Toyota Auto Body, Group companies, suppliers, and communities.

Developing Personnel with High Levels of Environmental Sensitivity and Who are Capable of Action Using Environment Month as an opportunity to think about future environmental programs, lectures were held on the subject of "Toyota Environment Challenge 2050" as we aim for new areas and higher levels of achievement.

A system of providing awards to workplaces that achieve results through environmental protection programs was established in fiscal year 2014. During this fiscal year, outstanding workplace awards were presented by the chairman of the Production Environmental Committee to the workplaces Lecture at which Department Launching of the awards system GM Yamato from Toyota Motor (Fujimatsu stamping and Inabe molding shops) which achieved and presentation of awards to Corporation was invited to speak workplaces that achieve energy large reductions in energy loss when not operating. (August 2016) conservation results (May 2016) Strengthening Management in Cooperation with Japan and Overseas Group Companies and Suppliers We conducted a study meeting for suppliers to discuss the matters and responsibilities that the company will be addressing with regards to environmental problems in the future.

We also held environmental conferences with Japan and Study meeting with suppliers Environmental conference with overseas Group companies and discussed recognition of (March 2017) Japan Group companies environmental preservation issues and measures to address (June 2016) them, and are working for training of local staff.

Resource Investment into and Emissions Produced by Our Business Operations

Environmental Accounting

Active Release of Environmental Information

Topics Receiving the Energy Conservation Center Chairman's Award

In the awareness improvements and results of our past energy [Theme: Energy conservation resulting from management improvements at plants] conservation programs, we were awarded the Energy Conservation Center Chairman's Award in the energy conservation case studies category at the fiscal year 2016 Energy Conservation Awards. Genchi-genbutsu check of Improving operator technical PE Environment Div. (Held by: The Energy energy conservation results abilities with exhibits of Takamitsu Yamamoto (left) Conservation Center, Japan) by top management advanced technologies and Hironao Otake improvement case studies (February 2017 award ceremony)

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Publishing

Head Office Toyota Auto Body Co., Ltd. 100, Kanayama Ichiriyama-cho, Kariya City, Aichi Prefecture 448-8666 TEL: +81-566ー36ー2121 Corporate Planning Division TEL: +81-566ー36ー7510 FAX: +81-566ー36ー9113 Publishing Date June 2017(Next publishing scheduled for June 2018)

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