Toyota Motor Corporation September 24, 2002 0 HiroshiHiroshi OkudaOkuda ChairmanChairman ofof thethe BoardBoard

1 ’sToyota’s PerformancePerformance

2 Toyota’s PerformanceI 10 Years of Dynamic Growth Operating Income

Operating income x5x5

* Assigning fiscal 1993 as factor of 100

FY1993 FY1996 FY1999 FY2002

3 Toyota’s PerformanceI Improved Management Efficiency Operating Income Net Sales, Total Assets, and Number of Employees

Operating income x5x5 Net sales Total assets Number of employees

* Assigning fiscal 1993 as factor of 100

FY1993 FY1996 FY1999 FY2002

4 Toyota’s PerformanceI 2001 Global Sales Sales in Approximately 160 Countries and Regions Around the World

Global Unit Sales in 2001 Proportion of 2001 Unit Sales by Region

* Including and Hino (Millions(Millions ofof units)units) 5.9

Overseas

3.6 Japan North Domestic Global Share （（33%）） America （（36%）） 10% Europe, Asia 2.3 and Others （（31%））

5 Toyota’s PerformanceI Our Vision for the Future

2010 Global Vision 15% Global Market Share

15%

10%

2001 Early in the 2010s

6 BrandBrand StrategyStrategy

ImprovingImproving BrandBrand ValueValue

7 Toyota’s PerformanceI Unshakable Brand Strength in Domestic Market

Japan’s Market Leader (more than 40% market share) Basis of Global Competitiveness : Quality, Cost

2001 Market Share (excluding minivehiclesminivehicles)) 43.3％％ ％ 41.7％％ 42.2％ 42.2％％

39.4％％ Others （（25.8%）） 38.9％％ 25.8% 38.7％％ 37.3％％ 38.1％％ Toyota 36.5％％ 36.5 （（42.2%）） Toyota’s market share Honda (excluding(excluding minivehicles)minivehicles) （（14.0%）） Toyota’s market share Nissan (including(including minivehicles)minivehicles) （（18.0%））

1998 1999 2000 2001 2002/1-8 * Figures for 1998 and thereafter include Daihatsu; Figures for 2001 and thereafter include Hino

8 ImprovingII Brand Value North American Strategy : Growth of Product Line-up Youth-oriented vehicles Crossover vehicles Sales Target 2 million units (2003-2004 Planned) (2003-2004 Planned) Large SUVs bbX

Luxury vehicles Highlander Small passenger vehicles Tundra

Lexus LS430 RX300 Camry

Sequoia Lexus SC430 RankedRanked firstfirst inin 99 ofof 1616 categoriescategories Corolla inin thethe 20022002 IQSIQS survey survey byby J.D.J.D. PowerPower && AssociatesAssociates

9 ImprovingII Brand Value European Strategy : Growth of Product Line-up

NewNew AvensisAvensis Sales Target 800 Sales Target 800 (beginning(beginning ofof 2003)2003) thousandthousand unitsunits +αα (2005(2005 Planned)Planned)

Yaris: Unit sales 2001: 210,000 vehicles First half of 2002: 120,000 vehicles First half of 2002: 120,000 vehicles Corolla

DieselDiesel EnginesEngines

D-CATD-CAT Sales to Other Companies (2003(2003 launch)launch) (from 2003)

10 ImprovingII Brand Value Global

Countries and regions in 2001 production which vehicle is volume marketed (in thousands) (approximate numbers) 2002 Corolla 140 871 1 million Camry 100 527 units Yaris 140 373 (plan) Hilux 140 302

11 ImprovingII Brand Value Motorsports

F1 Competed in races with cars developed completely in-house (from 2002)

CART Current leader in manufacturer’s championship

12 StrategyStrategy forfor OptimalOptimal GlobalGlobal ProductionProduction

Producing Where Demand Exists

13 Producing WhereIII Demand Exists Expansion of Local Production in North America Expansion of Local Production Stable Growth

Production volume (Thousands of units) (yen/dollar)

Exchange rate (yen/dollar)

20032003 productionproduction capacitycapacity 265 FromFrom 1.251.25 millionmillion unitsunits toto 1.481.48 million million unitsunits 205 (First(First halfhalf ofof 2002)2002) 175 164 149 164

65 Operating Income in North America (billions(billions ofof yen)yen) 1990 1992 1994 1996 1998 2000 2002

14 Producing WhereIII Demand Exists Expansion of Local Production in Europe (1) Expansion of Local Production and Procurement Cost Reductions

U.K.U.K. (TMUK):(TMUK): Common-rail diesel assembly (2003) FranceFrance (TMMF):(TMMF): Increased capacity (150,000 vehicles 180,000 vehicles, 2003) Common rail diesel assembly (2003) PolandPoland (TMMP):(TMMP): Manual transmission production commenced (April 2002) TurkeyTurkey (TMMT):(TMMT): Corolla production, exports to Europe (February 2002)

Production volume (Thousands of units) Proportion (%)

Local production volume 20032003 productionproduction capacitycapacity

Proportion of local production* 500,000500,000 unitsunits (including(including Turkey)Turkey)

(First(First halfhalf ofof 2002)2002)

1996 1998 2000 2001 2002 * Proportion of local production = Local production volume / Local unit sales

15 Producing WhereIII Demand Exists Expansion of Local Production in Europe (2) Planned to Introduce Small Entry-Level Passenger Vehicle

JointJoint ProductionProduction ofof NewNew ConceptConcept VehicleVehicle withwith PSAPSA Peugeot-CitroënPeugeot-Citroën

Establishment of plant in Czech Rep. (TPCA) (Production scheduled to begin in 2005) 100,000 Toyota branded vehicles (planned)

Expansion of Polish plant (TMMP) in 2004 Supply engines and transmissions to TPCA

16 Producing WhereIII Demand Exists Expansion of Production Network in Asia

Japan Pakistan China Japan

Taiwan Thailand Vietnam

IndiaIndia

Malaysia

Philippines Singapore

IndonesiaIndonesia

17 Producing WhereIII Demand Exists Major Leap Forward in Toyota’s China Operations

Operations in China at present Tianjin: Production of compact passenger vehicles (October 2002) Sichuan: Production of the Coaster (December 2000) + Expansion by cooperative relationship with FAW Medium/large-class luxury sedans: Production of 50,000 units / year (2005) SUV: Production of 10,000 to 20,000 units / year (2003) Minivehicles:* Production of 100,000 units / year (2003)

*Sold*Sold underunder thethe DaihatsuDaihatsu brandbrand

By around 2010 Total production and sales of 300,000 to 400,000 units / year

18 Producing WhereIII Demand Exists Global Supply Network

Network for vehicles

Network for engine and other components Production Bases in ASEAN Countries -- --Toyota-Astra Motor (Indonesia) --Other production bases

Toyota South Africa Motors Toyota Argentina S.A.

19 TechnologyTechnology StrategyStrategy

Stricter Regulations as a Business Opportunity

20 Stricter Regulations IVas a Business Opportunity Next-Generation Technological Competition as a Business Opportunity The Oil Crisis and Emission Controls Triggered Growth * United States: LEV, ZEV EmissionEmission ControlsControls (NOx)(NOx) andand FuelFuel 3838 timestimes * Europe: 140g/km Consumption Regulations (CO2) Japan: Fuel economy guideline by 2010 Consumption Regulations (CO2)

5.05.0 millionmillion unitsunits Toyota’s Opportunity 4.04.0 millionmillion unitsunits HybridHybrid EmissionEmission ControlsControls FCHVFCHV NewNew Oil Crisis 3.03.0 millionmillion unitsunits Oil Crisis DieselDiesel CatalystCatalyst (D-CAT)(D-CAT) production volume (domestic and overseas) Global production volume 3.33.3 timestimes **

* Assuming a production 19601970 1980 1990 2000 volume of 1 in 1960

21 Stricter Regulations IVas a Business Opportunity Increased Sales of Hybrid Vehicles

300,000 units / year by UnitsUnits 100,000100,000 around 2005 TotalTotal 100,000100,000 vehiclesvehicles

Crown Mild Hybrid

50,00050,000 Estima Hybrid (4WD)

GasGas turbineturbine HVHV (1969)(1969) Prius YearYear20012001

22 Stricter Regulations IVas a Business Opportunity Toyota FCHV-4 (1) Independent In-house Development of Total System Including Fuel Cell Stacks

Maximum speed 150km/h

Cruising range 250km

Fuel cell output 90kw

Fuel Limited Marketing in 2002 Pure hydrogen

23 Stricter Regulations IVas a Business Opportunity Toyota FCHV-4 (2) Independent In-house Development of Total System Including Fuel Cell Stacks

Secondary Air battery compressor High-pressure Motor Motor Power control hydrogen Power control unit control Power control unit unit unit storage tank TOYOTA Air compressor FC Stack

Motor TOYOTA FC Stack

24 Stricter Regulations IVas a Business Opportunity The Overall Fuel Efficiency of FCHVs Overall Efficiency “Well-to-Wheel” (%)

0 10 20 30 40

Gasoline engine 14%

Gasoline HV 26%

High-pressure hydrogen FCV 22% Non-hybrid controlled

FCHV 29% Hybrid controlled Further improvement in efficiency

FCHV 42%

Calculations by Toyota

25 Stricter Regulations IVas a Business Opportunity Toyota’s Environmental Technology Development

TheThe UltimateUltimate Eco-CarEco-Car

THSTHS-M-M (Crown)(Crown) THS-C (Estima)(Estima) THS-C FCHVFCHV THSTHS (Prius)(Prius) Hybrid Technology LeanLean BurnBurn CNGCNG DieselDiesel DIDI VVTVVT-i-i DD-4-4 EVEV

Alternative Diesel Gasoline EV & FCV energy engine engine

26 Stricter Regulations IVas a Business Opportunity Strategy to Encourage Hybrid Popularization and Reduce Costs

Toyota-Nissan Tie Up z Agreement of ten years or longer z Toyota to supply hybrid components (transaxle, battery, inverter) z Nissan to install hybrid system in vehicles for U.S. in 2006 z 100,000 units expected within five year of launch z Ongoing discussions of joint development of components

27 Stricter Regulations IVas a Business Opportunity Global New Body Line

InnovativeInnovative WeldingWelding ProcessesProcesses

HighlyHighly flexibleflexible (1(1 lineline forfor 88 models,models, small-lotsmall-lot toto massmass production)production)

InvestmentInvestment reductionreduction NewNew facilities:facilities: 50%50% lessless ModelModel changes:changes: 70%70% lessless (compared(compared withwith formerformer line)line)

28 InnovationInnovation intointo thethe FutureFuture

29 Innovation Vinto the Future Motorization on a Global Scale

Expansion of U.S. market Rapid expansion in Eastern/Central Europe, Increase in Russia population True growth in the Asian market

30 Innovation Vinto the Future Recycling and a “Zero-Waste” Society

DevelopmentDevelopment ofof NewNew MaterialsMaterials andand ProcessingProcessing TechnologyTechnology

DevelopmentDevelopment ofof environmentally-friendlyenvironmentally-friendly biodegradablebiodegradable plasticplastic fromfrom biomassbiomass (manufacture(manufacture ofof automotiveautomotive partsparts fromfrom high-yieldhigh-yield sweetsweet potatoes)potatoes)

FinalFinal technicaltechnical evaluationevaluation andand commercializationcommercialization slatedslated forfor immediateimmediate futurefuture

(Indonesia)(Indonesia)

Plant-Based Biodegradable Plastic (Bioplastic)

31 Innovation Vinto the Future Expansion of ITS Ubiquitous-Information Society

Car Multimedia G-BOOK (Automobile information network service)

AutomobilesAutomobiles areare equippedequipped withwith informationinformation terminalsterminals andand transmissiontransmission modulesmodules toto enableenable real-timereal-time exchangeexchange ofof informationinformation PlanPlan toto launchlaunch inin OctoberOctober

WiLLWiLL VC VC ConceptConcept

32 Innovation Vinto the Future Moving toward a Mature Global Society (Thousands of Personnel Growth at Overseas Subsidiaries persons)

Establishment of the Toyota Institute

Training and opportunities for overseas personnel

FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002

109 (16%) 246 (27%) Number of personnel on a consolidated basis( ): Percentage of personnel at overseas subsidiaries

33 FinancialFinancial StrategyStrategy forfor Long-termLong-term StableStable GrowthGrowth

34 Financial Strategy forV Long-termI Stable Growth Toyota’s Accounting Policy 1) Disclosure for a better transparency

Disclose financial statements in accordance with both Japan & US GAAP

2) Conservative accounting

Implementation of rigorous standards (for valuation of marketable securities and inventories)

No impaired assets remain on balance sheet

35 Financial Strategy forV Long-termI Stable Growth Changing in Japan’s Accounting Standards Adopted these changes to our accounting system in advance

Principal changes Systemic changes Implemented by Toyota 1) Interim consolidated results 00/9 - 98/9 -

2) Strengthened consolidated accounting 00/3 - 99/9 - (introduction of criteria for actual corporate control*) 3) Tax effect accounting 00/3 - 99/9 - 4) Accounting for retirement benefits 00/9 - 00/9 - 5) Accounting for financial instruments Financial instruments 00/9 - 00/9 - Cross-holding of shares, etc. 01/9 - 00/9 -

*SPE (disqualified): Application of actual control criteria (no 3% rule)

36 Financial Strategy forV Long-termI Stable Growth Overview of Fiscal 2002 Consolidated Business Performance

Operating Income Net Income before taxes (Billions of yen) Net Income （Trillions of yen) 15.1 14.3 13.1 13.4 1,123 1,107 1,093 1,107 Net sales Net sales Income Income 870 790 1,113 972 864 674 615 556 471 Net Sales Net Sales Net Sales Net Sales

（（US-GAAP）） （（Japan-GAAP）） （（Japan-GAAP）） （（US-GAAP）） FY2001 FY2002

37 Financial Strategy forV Long-termI Stable Growth Overview ofof 1Q1Q ofof FiscalFiscal 20032003 Consolidated Business Performance

Operating Income （Trillions of yen) Net Income before taxes Net Income (Billions of yen) Net Income This includes ¥187 4.0 billion gains due to 4.0 return of 3.3 substituted portion Net sales of employee 613 Net sales

Income 613 Income pension fund. 394 297 352 291

162 Net Sales Net Sales Apr.-Jun. 2001 Apr.-Jun. 2002 （（Japan-GAAP）） （（Japan-GAAP）） Note: Based on standard for interim financial statement

38 Financial Strategy forV Long-termI Stable Growth Long-Term Financial Targets

Operating ROE Operating (%) incomeincome ratioratio 9.8%

Unit sales on income ratio consolidated basis Operating 9% 7.4% 6.1% 6% 6.5% Target of operating income ratio (Thousands of units) 6,110 (Projection) 5,785 5,527 5,182 Excluding effect 4,695 12.7% due to return of substituted portion of employee pension fund (%) 8.5% 6.3% 6.8% 5.8% 10% ROE (Target of ROE)

FY1999 FY2000 FY2001 FY2002 FY2003/1Q (Japan GAAP)

39 Financial Strategy forV Long-termI Stable Growth Continuing Efforts to Reduce Costs

(Billions of yen) Eliminate Waste

260

Results of cost reduction efforts

190

150 130 120 110

70 70

1Q

FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003

40 Financial Strategy forV Long-termI Stable Growth Platform Integration

FR 11 platforms Reduce to 6 platforms now in use

FF

(Production(Production platformsplatforms forfor passengerpassenger vehicles)vehicles)

41 Financial Strategy forV Long-termI Stable Growth Financial Business Global Sales Finance Network

Existing bases 22 Future expansion to bases Planned 2002 bases 2 in 30 countries

(Billions of yen) Operating income

FY1998 FY1999 FY2000 FY2001 FY2002 Mid-term Target

42 Financial Strategy forV Long-termI Stable Growth Cash Flow Management

Long-term Stable Growth Efficient Use of Capital & Increasing Shareholders’ Value

Image of Fiscal 2002 Consolidated Cash Flows

(Billions of yen)

Depreciation Capital 699 investmentinvestment 940

Net income 615 374 R&D 592 *Japan GAAP

43 Financial Strategy forV Long-termI Stable Growth Shareholder’s Return Dividends Payout: Increasing Steadily (¥14.5 per share to ¥28 per share) Accumulative Value of Shares Canceled: ¥922 Billion (Billions of yen) 400 120% Annual dividends 100% Shares canceled 300 Return ratio* 80%

200 60% 40% 100 20% 14.5 19 22 23 23 24 25 ¥28/share 0 0% FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 *(Annual*(Annual dividendsdividends ++ SharesShares canceled)canceled) // NetNet incomeincome (On(On non-consolidated,non-consolidated, JapanJapan GAAPGAAP basis)basis) Note: 1. Figures for FY95 only reflect 9-months result to reflect the change in fiscal year-end. Note: 2. Amount of shares canceled decreased inFY2000 due to various legal constraints relating to Toyota’s listing on NYSE and LSE. Note: 3. Figure of shares canceled in FY2002 includes ¥143 billion of shares repurchased during FY2002, and canceled during FY2003.

44 Financial Strategy forV Long-termI Stable Growth Share Repurchase

Authorized Amount of Repurchase

Up to ¥600 billion Up to 170 million shares

(Between Annual General Shareholders’ Meetings 2002 and 2003)

45 Financial Strategy forVI Long-term Stable Growth Update on Current Toyota’s Share Ownership

End of Sept. 1999 End of Mar. 2002

Held in trust accounts 11% 22%

Banks 34% 44% down 19% 55％ 62% Financial institutions 14% Life and non-life 17% insurance companies

19% Corporations, etc. 21%

16% Foreign investors 10% Individual investors 7% 9% 1% treasury stock

46 Financial Strategy forV Long-termI Stable Growth Long-Term Stable Growth in Share Value Total Market Value of Toyota Shares in Tokyo Stock Exchange Market Cap Rose from 1.4% in 1991 to 4.4% in 2002

(4.4%)

Market value of Toyota Shares Toyota shares %= Aggregate market value of TSE Tokyo Stock Exchange

(1.4%)

Changes in aggregate market value

FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002

*Calculated at the end of each fiscal year, assigning fiscal 1991 as factor of 100

47 Financial Strategy forV Long-termI Stable Growth Basic Statement of Toyota Style Governance Toyota Way Shareholders FocusFocus onon Shareholders ShareholdersShareholders Long-term Stable Growth

Community Employees Management Efficient Suppliers HarmoniousHarmonious Growth Operation Growth Creditors Dealers

CSCS No.1No.1 Customers

48 Financial Strategy forV Long-termI Stable Growth Prompt Decision Making and Intensive Risk Management

Higher Transparency Reviewed by “Many People”

NYSE, LSE Listing Shareholders’ Corporate (SEC Disclosure) Meeting Ethics Committee International Advisory Board Decision-making Social Contribution Labor- EVP and above Contribution Committee Management Monitor Monitor Council/Forum Execution Senior managing Stock Option director and below Internal Audit director and below Committee

Toyota Way Internal insider-trading regulations: 24-hour rules, Rules for trading Toyota shares

49 Toyota Motor Corporation September 24, 2002 50