Driving Toward MOBILITY: POWERED BY PEOPLE

2019 D+I Annual Report THE EVOLUTION TOWARD MOBILITY

While our journey is a road with many paths, backgrounds, our direction is clear. We are focused on driving toward perspectives and Mobility for All. Our belief in equality, respect and talents can generate the inclusive treatment of all people guides and empowers momentum we need to us to start our impossible. drive us forward.

By acknowledging the inherent value, importance and Rooted in Continuous business impact of our diversity strategies, we drive Improvement and Respect for inclusiveness. Through diverse and collective thought, People, we are committed to cultivating we drive innovation in an ever-changing marketplace. an ever-better world by creating innovative We drive positive impact for our team members, and sustainable mobility solutions for all — suppliers, dealers, communities and stakeholders we’re going places, together — powered through our commitment to Diversity and Inclusion by our people. (D+I), and we drive influence in education through We are transforming impossible to I’m Possible. investments and partnerships that help open access to opportunity. We recognize that only a broad array of

Diversity and Inclusion lie at the heart of ’s evolution as a mobility company. Now, more than ever, engaged team members with diverse perspectives and experiences help us develop innovative products, solutions and services that delight our customers and enrich our communities.”

SANDRA PHILLIPS ROGERS ) Group Vice President, Chief Diversity Officer and Chief Legal Officer, Toyota Motor North America

2 TOYOTA Bringing everyone to the table so they feel empowered and included — free to contribute their individual perspectives — is what make us so strong.”

STEPHEN LEWIS ) General Manager, Diversity and Inclusion, Toyota North America

Table of Contents 4 How We Drive D+I

Driving Inclusiveness 5 future of mob 5 ) Engineering Women in STEM the ility AD LE 7 ) Campaigning for Care e w r Driving Innovation e 8 ) From Impossible to I’m Possible th 10 e g Powerhouse Partnerships ) 10 o 9 ) Serving Our Nation and Our Customers T Reaching Out Through Development ) 12 Driving Impact Breaking Ground with D+I ) 13 14 ) The Freedom of Mobility 14 15 ) Advancing Mobility Through Science 15 ) Sustainability for Our Future Driving Influence in Education 16 ) Trailblazing Toward Success 22 Inspiring and Influencing Our Future ) 22 17 ) A Lasting Partnership Empowering Communities Through 19 ) The Five Compadres Education — Collaborating for Change ) 23 20 ) Business Partnering Groups — Vayamos Juntos ) 24 Going Places, Together Navigating Careers with NaviGo ) 25 D+I Training at Toyota ) 26 The Road Ahead ) 27

2019 D + I Annual Report 3 LEADERSHIP DIVERSITY HOW WE DRIVE D+I Toyota is committed to fostering an inclusive culture that reflects, empowers and respects diversity in leadership. Moving toward Mobility for All is a collaborative effort. It requires diverse perspectives and guidance from our internal and 30% external stakeholders who uphold the pillars of The Toyota Way: Continuous Improvement and Respect for People. 25%

Diversity Advisory Board (DAB) 20% The DAB are global diversity leaders who advise, advocate and help hold Toyota accountable to its D+I strategic direction. 15%

ALEXIS HERMAN, CHAIR GILBERT CASELLAS 10% Former United States Secretary of Labor Former Chief Diversity Officer for Dell Inc. and and Current Chief Executive Officer of Former President of the Hispanic National Bar 5% New Ventures, LLC Association

HOWARD W. BUFFETT JYOTI CHOPRA Executive Director of the Howard G. Senior Vice President and Global Lead for Women Blacks Latinos Asians Buffett Foundation Diversity and Inclusion for Pearson 2015 2016 2017 2018 PHYLLIS CAMPBELL JAMES LOWRY Former President and Chief Executive Officer Senior Advisor and Global Diversity Director Source: DiversityInc 2018 Benchmarking Report of The Seattle Foundation for the Boston Consulting Group reflecting Toyota’s total management demographics

Executive Diversity + Inclusion Council (EDIC) To meet the needs of Comprised of Toyota’s most senior leaders, the EDIC reinforces D+I strategies as our customers, team imperative business drivers — working with the DAB and our D+I team, EDIC advocates and supports D+I within their functions. members, dealers, suppliers and society, Toyota Financial Services (TFS) Management Committee D+I plays a critical role

The TFS Management Committee serves as the executive D+I council at TFS in everything we do."

and helps drive Toyota’s consumer and dealer finance and insurance business JIM LENTZ ) CEO, Toyota Motor in the United States while supporting D+I strategic efforts across the company. North America

4 TOYOTA RESPE e in CT iev fo el r b a ll e p W e o p l DRIVING e INCLUSIVENESS

Engineering Women in STEM

Toyota understands the importance contributions made by women in STEM, of emphasizing and promoting inclusive Toyota is working to make a difference. opportunities within the STEM workforce — Toyota-supported organizations, like careers in science, technology, engineering the Society of Women Engineers (SWE), and math fields. It is especially important to promote when it comes to young females. In 2018, the National Science Board reported DID YOU KNOW? that women remain underrepresented in STEM Toyota is part of the Society of fields. Toyota is helping to broaden awareness Women Engineers (SWE) Corporate and continues to close the representation Partnership Council — industry gap. By cultivating a talent pipeline rich with leaders who share best practice diversity, supporting organizations that work expertise in retention, advancement to help educate and empower more women and diversity initiatives. in STEM and recognizing the incredible

The world is changing, and so is the future of mobility. I want Sumega to be part of that change, but more importantly, I want to help Mandadi develop the people who make the future possible.”

SUSAN ELKINGTON ) President, Toyota Motor Manufacturing Kentucky

2019 D + I Annual Report 5 are helping to close the gap. Sumega now pays it STEM WORKFORCE REPRESENTATION Sumega Mandadi, a wheel engineer forward by actively in chassis design at one of Toyota’s seeking community Overall U.S. Workforce research and development facilities outreach programs in Michigan, says becoming a part through Toyota to of SWE helped her discover the right help get more women path through the right connections. and people of color involved. She promotes “I was always good at math and STEM through her participation with physics but also knew it was a male- business partnering groups (BPGs) at dominated field — so, I looked for Toyota and focuses on encouraging % % D+I organizations and looked for 50 50 local youth to get involved with STEM, people like me to make connections especially young females of color. and build support to pursue my U.S. STEM Workforce career in STEM.” “Volunteering through Young Professionals and Women Influencing Through her experience with SWE and Impacting Toyota (WIIT) BPGs for in college, Sumega was able to events like National Lab Day helps establish relationships with leaders in kids in our community understand that the industry and network with other engineering is a career possibility.” females on a similar path. This inspired Sumega to open 28% 72% the door for others.

Source: National Science Board

At the 2018 Rosie Revere Engineer STEM event in Michigan, Toyota’s Research & Development (R&D) DIDDID YOU YOU KNOW? KNOW? engineers joined some of the original “Rosies” who built planes during WWII — celebrating pioneering

women in STEM and inspiring young minds.

6 TOYOTA Campaigning for Care We want to build a great relationship with our community and be able to invest in the For LGBTQ geo-targeted ad campaign designed to raise things that are important to our youth, feeling safe, greater awareness of OUT for Safe Schools community and our customers.” accepted and loved outside of the classroom. They focused on JULIA WADA ) Group Vice President, isn’t always a given, high school students in San Diego, San Corporate Strategy, Strategic Innovation, and Toyota is working Francisco, New York and Dallas. Operational Excellence and Enterprise Program to change that through Management, Toyota Financial Services A first-of-its-kind campaign for Toyota, the several community animated ads were viewed 11.2 million initiatives. times, and 80,000 viewers “swiped up” to be In 2018, one of them was “OUT for Safe directed to a landing page where LGBTQ AT TOYOTA Schools,” a partnership between the Los they could learn more Angeles LGBT Center and more than a dozen about the program major school districts to provide training for — engagement faculty and staff on how to help LGBTQ youth levels # of consecutive years when facing issues like bullying, depression indicative of Toyota has been named and alienation. the importance 2 to DIVERSITYINC’S TOP of supporting COMPANIES FOR LGBT As part of OUT for Safe Schools, Toyota Out for Safe EMPLOYEES LIST partnered with Snapchat, a popular social Schools. media platform. Together, they created a

# of consecutive years with A PERFECT SCORE on

12 Human Rights Campaign Corporate Equality Index

Our strength is our team members and # of U.S. PRIDE PARADES their ability to be their whole selves here.” 13 Toyota participated in DEB SCHROEDER ) Vice President, Purchasing, during 2018 Research and Development, Toyota Motor North America

2019 D + I Annual Report 7 From Impossible to I’m Possible

Resiliency and a dynamic spirit Yet, he says Katie has an incredible attitude. She’s describe Katie Eddington, young daughter of in life’s race to win it — in more ways than one. 21-year Toyota Motor Manufacturing Kentucky Katie is currently the junior national record holder (TMMK) veteran Assembly Pilot Team Leader in the Adaptive Track and Field 60, 100, 200 and Russell Eddington and wife Samantha. 400-meter sprints within her T42 classification. In 2013, Katie was involved in a lawnmower So, when TMMK’s ToyotAbility business partnering accident, resulting later in the amputation of group invited U.S. multi-medal winning her right leg above the knee. Paralympian Oksana Masters to talk about her athleticism and perseverance as a double “The hardships she’s endured and amputee, it made sense overcome — a lot of people to invite a local future don’t understand real Paralympian, Katie. challenges and real issues,” says “Toyota is one of Russell. the best things in my life,” says Russell.

18+ million people in the U.S. struggle with or have limited mobility. It affects 1 in 7 adults and an estimated 6 million DIDDID YOU YOU KNOW? KNOW? veterans in the U.S. With age, disability becomes more common, affecting 2 in 5 adults age 65 and older.

8 TOYOTA INVEST in We o ur fu tu Serving Our Nation re and Our Customers

Launched in early 2019 as a pilot program ONE IN FOUR U.S. ADULTS — at Toyota’s North America headquarters in Plano, 61 MILLION AMERICANS — Texas, M-TEN (Military Technician Education Network) HAVE A DISABILITY that Automotive Technician Apprenticeship Program trains impacts major life activities, transitioning service members, veterans and reservists according to a CDC report MARINE CORP to become automotive technicians. M-TEN participants SCHOLARSHIP FOUNDATION take 12 weeks of instructor-led training prior to being deployed to a Toyota or dealership of their Toyota has invested $3.2 MILLION “This event gave us a chance to choice to serve as an apprentice. Eligible service in the Marine Corps Scholarship thank the people of Toyota for members and veterans qualify for GI Benefits and Foundation, the country’s oldest being there for us.” receive a monthly housing allowance in addition to and largest provider of need-based apprenticeship wages. Together Oksana and Katie shared scholarships to military children their journeys and perspectives Five transitioning service members are currently on pushing through life’s participating in the pilot program, with expansion More than 40,000 SCHOLARSHIPS challenges. They shared their planned for later in 2019. Toyota’s long-term goal is have been awarded at a value of appreciation for the support they to generate more than 480 auto technician jobs for nearly $125 million have both received, and they transitioning service members and veterans annually. emphasized the importance of 2018–19 scholarship recipients were starting your own impossible — 63% FEMALE and 38% PEOPLE leaving the audience inspired OF COLOR and motivated.

Russell and his wife, Samantha, could not be prouder of Katie M-TEN is a smart investment and one of many and her accomplishments. She ways that Toyota acknowledges the value of continues driving forward and transitioning service members and veterans.” tackling new challenges in JOHNNIE GARLINGTON ) Senior Manager, Technical Training and her sport. M-TEN, Toyota Motor North America and retired U.S. Marine

2019 D + I Annual Report 9 DRIVING INNOVATION

Powerhouse Partnerships

What could Lexus and Wakanda powerhouses — Marvel’s high-tech utopian kingdom from their were presented 2018 Oscar-nominated cultural zeitgeist, Black the opportunity to Panther — possibly have in common? integrate and establish a co-promotional As it turns out — a lot. partnership. Innovative technology, Together, they started their high-performing luxury vehicles impossible. fit for a king and amazing experiences are a few similarities Black Panther, Hollywood’s first major superhero that sealed the deal when the movie featuring a largely black cast and black

BREAKING RECORDS

% 17.8 56 37 MILLION MILLION

INCREASE IN SITE TRAFFIC on VIDEO VIEWS AND 26 MILLION ENGAGEMENTS SOCIAL MEDIA SHARES and five Lexus.com from the Black Panther for Black Panther content on Lexus’ YouTube channel billion earned media impressions were Super Bowl Ad — the most ever for any piece of Lexus content generated from the overall campaign

10 TOYOTA

In 2017, black buying power hit about $1.2 trillion, according DIDDID YOU YOU KNOW? KNOW? to the Selig Center for Economic Growth at the University of Georgia’s Terry College of Business.

actor in its lead role, featured Lexus LC 500 “We wanted to raise awareness and love of the RIDING LIKE ROYALTY and GS F models. Marvel’s King T’Challa and Lexus brand for future buyers and also build For the Black Panther set, Wakanda’s fierce female warriors navigate the a story around innovation and technological Lexus provided: vehicles through epic chase scenes, drawing advancement for our consumers who are thought- the connection between stature, power and leaders, early adopters of new technology and aspirational technology. Along with a custom automotive enthusiasts,” confirms Lexus marketing

Super Bowl spot featuring the Lexus LS 500 media manager MaryJane Kroll. SIX LC 500 vehicles for flagship sedan and Black Panther star Chadwick A ComScore Brand King T’Challa Boseman, it drove Lexus social community Study estimated growth dramatically — 1.2 million fans in the prominent February 2018 alone. brand integration Multicultural marketing researcher Sonja earned over $28 SIX GS F models for Martin Poole says marketing to culturally million in media Wakanda’s female warriors diverse audiences requires authenticity. Lexus value, garnering has long recognized the value, power and positive reactions

prominence of multicultural consumers, making and building future Toyota provided: this partnership a natural and welcomed generations of progression of its established relationship. consumers with affection for the Lexus brand. “I could see this being an investment in the MaryJane younger market,” said Sonja. “Even though the Kroll A FLEET OF 4RUNNER vehicles 15- and 18-year-olds aren’t going to be able to for the villain and his entourage buy a Lexus, by doing this you are implanting this aspiration.”

2019 D + I Annual Report 11 Reaching Out Through Development

Advanced — a cultural upbringing that The number of participants technology isn’t the shapes who we are and continues to grow, adding only form of innovation at creates a unique talent pool new branches of Reach, Toyota. Billie Jo Johnson, of diversity. I wanted to tap such as “New to Toyota” group manager of into this and help women women. Toyota Financial Services break through their individual Billie Jo has high aspirations (TFS) Enterprise Project journeys,” says Billie Jo. “I for the program, “This year, Management Office, is a wanted to reach women and we’ll see even more positive testament to that through provide an avenue for them to impact of Reach and how her grassroots development reach me through a program the advancement of women program focused on that runs in the vein of D+I.” of color has been set into a growing, recognizing and Since its inception in mid-2018, forward motion.” advocating for women of 60% of Reach participants have color, with an emphasis experienced career movement, on African-American exposure, recognition or Billie Jo women — Reach. connection to support growth RO We G W pe Johnson (right) op le “With color comes different and development. They’re ’s ca p a experiences and dynamics going places, together. b il it i e s

Empowering women of color and giving them the confidence to be bold, as well as providing an advocate through Reach, helps us establish ourselves and understand what it takes to advance.”

ROSLYN BARKER ) Manager, Quality Engineering, Toyota Motor North America

12 TOYOTA Reach has given me a voice to speak Breaking Ground with D+I up for myself and the tools and encouragement to grow.” One of the While and Toyota each have DIONNE SMITH ) Enterprise Compliance first orders of their own rich history and culture, Senior Analyst, Toyota Financial Services business once they share a bond — their pride Mazda Toyota in manufacturing. This mutual Manufacturing dedication to quality serves as one U.S.A. (MTMUS) of many foundational similarities. broke ground Resources like business partnering MENTORING@TOYOTA on their $1.6 groups (BPGs), community outreach billion plant was activities and mentoring opportunities Mentoring@Toyota is the company-wide mentorship to establish an will all contribute to building on that program available to all TFS team members and all salaried expectation of a diverse foundation, cultivating a place where TMNA team members, directly supporting the overall team and inclusive culture. Mark Brazeal, people can learn, grow and give back member experience. Mentoring allows team members to MTMUS administration vice president, to the community. grow their capabilities, an inherent part of The Toyota Way and Janette Hostettler, MTMUS and essential to achieving our vision of Mobility for All. “BPGs are an incredible way to production vice president, are ensuring network, leverage the passion of Since its launch in late October 2018: they’re off to the right start. various backgrounds and also use “One of the decision points in the group as a means of career OVER 2,000 team members and leaders choosing Huntsville, Alabama, was development,” explains Janette. have undergone Mentoring@Toyota training the diversity of the community and “Plus, Mazda Toyota Manufacturing the multicultural makeup of the U.S.A. is big on being part of the workforce,” says Janette. “We were community. We like to move intentional. It was important we people — both physically and in of Toyota’s mentoring population have % reflected our commitment to diversity.” their heart.” 11 SELF-IDENTIFIED IN A BPG Establishing this joint venture, in itself, is MTMUS team members are a demonstration of Toyota’s commitment going places, together. This is to embracing innovative ideas from all just the beginning of many Over 1,000 team members identified perspectives. It also reinforces building opportunities to explore new ways themselves in the system as inclusive environments that value and to collaborate, connect and make “AVAILABLE TO MENTOR” celebrate differences while building a difference in the community and connections. with one another.

2019 D + I Annual Report 13 Everyone wants to be a productive member of society, DRIVING and the ability to move is critical for that to happen. As Tupelo IMPACT Transit grows, we’re looking at how we can assist with continuous improvement — how we can create opportunities for The Freedom of Mobility everybody.” COLLEEN CASEY ) Senior Manager, Mobility, Toyota Motor North America and member of the Tupelo Transit cross-functional team Moving toward action. Through collaborative efforts, mobility goes far research and shared resources, they beyond manufacturing started the impossible and helped vehicles. For many in enable the freedom of mobility through Tupelo, Mississippi, it’s Tupelo’s first-ever public transportation MOVING TUPELO about freedom. service — Tupelo Transit.

A significant number in Tupelo live The one-year pilot runs three fixed- 6,848 RIDES under the federal poverty level. Lack route bus lines and a demand- for Tupelo shopping Tupelo Transit driver, Issac of public transportation isn’t simply response paratransit service for those Edwards an inconvenience. From medical requiring mobility assistance. This visits to education and employment service fosters community connections 3,688 RIDES opportunities, without reliable and and helps those facing mobility for healthcare affordable transportation, at-risk barriers. It also provides better access citizens are left with uncertainty. to healthcare, shopping, education and employment — improving For over a decade, community everyone’s quality of life. 2,532 RIDES advocates have lobbied for a transit for employment system. When a Toyota-funded Toyota continues to conduct mobility study identified Tupelo as an assessments across North America — area that could benefit from a mobility identifying ways to offer local resources solution, a cross-functional team from and expertise, helping communities 9,857 CITIZENS with Toyota partnered with Tupelo leaders move toward Mobility for All. disabilities have been assisted and local government and went into through Tupelo Transit

14 TOYOTA Drought-tolerant indigenous wildflowers Advancing Mobility at HQ Through Science Sustainability for Our Future Dr. Rana Mohtadi, principle scientist at Toyota R&D, has always had an interest in science, discovery and a passion for respecting the environment. Toyota’s Long Beach “Science is the never-ending expansion of knowledge and Los Angeles Port and collaboration,” she says. “And, I want to contribute to facility in California will making people’s quality of life much better through the use a future hydrogen use of renewable energy.” fuel generation station Focused on alternative energy sources, specifically using biogas to generate materials research for batteries, hydrogen storage and 100% RENEWABLE ELECTRICITY fuel cells, Rana works on materials that have potential AND HYDROGEN. This will help improve air quality to store more energy than lithium ion batteries, helping in the port’s surrounding neighborhoods create cleaner mobility solutions.

TOYOTA FACILITIES HOLD THE #1 AND #2 spot for largest privately-owned non-utility systems in Texas

8.79 MW solar power system at Toyota North America headquarters in Plano, Texas

3.1 MW solar power system at Toyota Motor Manufacturing Texas in San Antonio, Texas

When installed, the 400,000-gallon rainwater capture system at Toyota North America headquarters in Plano, Texas was the LARGEST SYSTEM IN NORTH AMERICA

2019 D + I Annual Report 15 alue DI Trailblazing Toward Success We v VER SI TY in a ll a s Ellenae p Ellenae Fairhurst is an expert e c collaborating t in overcoming adversity. From attending s with her team segregated schools in the 1940s and 1950s in Dayton, Ohio, to being refused entry to another automotive titan’s retail dealer development program on the basis of her gender — even after 17 years of experience — she persevered and decided to trailblaze her own path of success.

After the experience at her former company, Ellenae sought more inclusive avenues to pursue her With this move, she became the first and only dreams. In 1992, she opened a African-American female owner of a Lexus or Lexus dealership in Huntsville, Toyota dealership at the time. Now 75, Ellenae Alabama — the first in a market credits Lexus for providing her access to top many industry experts at the time corporate executives who share information, believed could not support a value her input and help find workable luxury automobile line. solutions.

LEXUS ELITE DEALERS The Elite of Lexus award is reserved for those dealers who have achieved the highest levels of customer satisfaction. From sales and service to the overall ownership experience, these dealerships are truly in a class all of their own. Ellenae Fairhurst has been awarded Elite of Lexus for 13 years.

16 TOYOTA SUPPLIER TIERS DEFINED

Companies that SUPPLY A Lasting Partnership TIER AUTOMOTIVE-GRADE PARTS or I systems directly to Original Equipment Manufacturers (OEM)

Throughout a relationship that formed nearly two decades ago, Toyota has been an advocate, mentor and client to Tierra Companies that PRODUCE PARTS that Kavanaugh Wayne, co-founder and CEO of TKTKONNECT, TIER may be used in automotive manufacturing a Louisville, Kentucky-based human services firm. II but also support non-automotive customers and do not sell directly to OEM Early on, Toyota recognized Tierra’s potential and helped prepare her for a future opportunity as a Toyota supplier. Toyota invited her to participate in professional development workshops and attend its Diversity + Inclusion outreach programs, including Opportunity Exchange, an event that brings together Toyota’s Tier I suppliers Toyota helped me understand the with prospective diverse companies to create company culture, and The Toyota business opportunities. Way provided me exposure and helped me see how I could grow professionally and personally.”

TIERRA KAVANAUGH WAYNE ) Co-founder and CEO of TKTKONNECT, a Tier I Toyota supplier

2019 D + I Annual Report 17 MENTORING DIVERSE SUPPLIERS

Tierra’s staffing firm ultimately gained a contract as a Toyota recognizes the hurdles small and diverse businesses Toyota Tier II supplier, and in 2016, TKTKONNECT face when bidding with large corporations. They created became a Tier I supplier, managing a mentoring program to help these businesses focus on Toyota’s contingent and variable strengthening their ability to compete and provide new and workforce population in agile solutions. The program demonstrates how team members North America. represent the Toyota brand in ways that yield measurable business results for the larger community. “I’ve only had one client — Toyota — that acts as an intentional advocate and makes an effort to ensure that I am successful,” she says.

OVER 25 SMALL AND DIVERSE BUSINESSES have been mentored through the program

Tierra leading her team at TKTKONNECT 39%

of the businesses in the program RETURN FOR A REPEAT MENTORSHIP experience My commitment to D+I is continuing to be an advocate for small and diverse businesses through outreach, innovation and networking.”

TIM YAMADA ) Supplier Diversity Manager, Toyota Financial Services In just three years, Toyota has INCREASED ITS DIVERSE SPENDING BY 30% with more competitive incumbent supplier pricing

18 TOYOTA The Five Compadres

When Toyota chose San From left: Frank Herrera, Berto Antonio as the site of a new plant Guerra, Rosa Santana, Fernando Reyes and Max Navarro to build its Tundra and Tacoma Photo courtesy of Hispanic pickup trucks, it was putting down Executive Magazine roots in a predominantly Hispanic city with no presence. Seeking successful Japan to learn the suppliers’ processes. Hispanic leaders as potential Tier They were also trained in The Toyota Way: I suppliers, Toyota decided on a Continuous Improvement and Respect lawyer, two entrepreneurs, a scientific for People — and in turn, they trained researcher and a staffing professional — their employees. Toyota has been the #1 Original Equipment respectfully and affectionately known as Manufacturer (OEM) brand for Hispanic, African- Today, their organizations assemble The Five Compadres. American and Asian buyers for over a decade.* components, wheels and tires; provide To learn the automotive business, four on-site logistics and cross-dock of the Compadres were paired with Tier operations; and supply truck interiors, share of % I Toyota suppliers to form joint ventures, plastic truck parts and carpeting, plus 21.2 ASIAN market and they traveled all over the U.S. and to fully assembled truck beds.

share of % 19.4 HISPANIC market

1,489 — number of Toyota and Lexus DEALERSHIPS share of AFRICAN- DIDDID YOU YOU KNOW? KNOW? 97 — number of MULTICULTURAL Toyota and Lexus dealers % 13.4 AMERICAN market 76 — number of WOMEN Toyota and Lexus dealers

*Source: Toyota Brand and Multicultural Marketing as of November 2018

2019 D + I Annual Report 19 Business Partnering BPGs represent... Groups — Going Cultivating an Inclusive Workforce Places, Together Creating an Engaging Workplace Connecting with Communities

Toyota’s business partnering groups (BPGs) are company-wide employee resource groups that include networks for team members to share or learn more about different engagement and diversity groups. BPGs have a critical role in helping execute our D+I strategy, offering a voice and perspective for To help LGBTQ allies publicly all team members. show their support for their LGBTQ colleagues and communities, Spectrum provides badge-buddies and small rainbow flags for display. 88 BPG CHAPTERS in North America

DIFFERENT AFFINITIES 12 represented

OVER 3,000 TEAM MEMBERS participate in BPGs across North America Toyota Motor Manufacturing Baja California established the 14th Women Influencing 57% 43% and Impacting Toyota (WIIT) male female chapter and the 85th BPG in North America in 2018.

20 TOYOTA TOYOTA BPG AFFINITIES BPGs represent...

The African American Collaborative at TMMWV recruits and sponsors underrepresented female high school students to attend a one-week STEM camp each year, helping provide supplies and transportation.

Toyota Asian Americans in Alliance (TAASiA) at Plano HQ partnered with LEAP, the Leadership Education for Asian Pacifics, to host a workshop to inspire team members to start their impossible and become next-gen leaders at Toyota.

ToyotAbility and Young Professionals BPGs in Plano, Texas, hosted “Understanding Deaf Culture and Creating Inclusion in the Workplace,” a campus talk promoting awareness of the deaf community. YP Young Professionals

2019 D + I Annual Report 21 INVESTING IN THE NEXT GENERATION DRIVING INFLUENCE

IN EDUCATION Toyota’s sponsorship of Junior Achievement’s Financial Literacy program for underserved youth reaches 15,000 STUDENTS in California, Texas, Iowa, Inspiring and Maryland and Arizona Influencing Our Future

Through its partnership with Girl Scouts of the USA, Boys & Girls Clubs of America and Junior Achievement, Toyota Financial Services (TFS) supports youth Toyota- sponsored financial empowerment, workforce readiness and skills and leadership development. Over the past five years, Toyota’s Driving My Financial $28 MILLION in contributions TFS’ support for youth organizations is team member-driven. “Our influence in the Future program reaches to Boys & Girls Clubs of America more than 62,000 Girl community is only possible through the deep involvement of our team members; has helped educate MORE Scouts nationwide their strong spirit of volunteerism and community service is a reflection of the Toyota THAN 500,000 young people Way,” says Karen Ideno, TFS group vice president, National Trustee of Boys & Girls Clubs of America and Executive Sponsor of the Toyota North America Advisory Council for WIIT.

Parisa Urban is an example of that community service spirit. As part of a daylong financial education program for Girl Scouts, Parisa and a group of Toyota women organized a “dress for your day” fashion show Since 2007, Toyota has at Toyota headquarters to teach girls appropriate attire for awarded more than 1,000 different work occasions. A Persian who was born and raised MAKING LIFE EASIER in Iran, then lived in Canada before joining Toyota in the U.S. SCHOLARSHIPS, and/or in 2007, Parisa hopes to inspire a mindset in young, diverse nearly 200 of those students girls to not allow gender, ethnic culture or place of origin to have become Toyota interns or keep them from achieving their impossible. even Toyota team members Parisa Urban (left) 22 TOYOTA Empowering Communities Through Education — Collaborating for Change

As technology advances, opportunities with Southern Methodist University at a new abound. Today, science, technology, engineering Dallas ISD PK-8 school to help prepare and math (STEM) careers continue to significantly students for the jobs of tomorrow. outpace non-STEM jobs in growth and earnings. Toyota is also engaging local BPGs to However, African-Americans, Hispanics and women provide mentorship, and engaging are significantly underrepresented in STEM fields. long-term partners like the Hispanic Together, with our partners, Toyota is working to Scholarship Fund, to provide change that. scholarships.

Toyota’s involvement in West Dallas is a great Inclusive Mobility Solutions: example. Beyond donating dollars, Toyota is Beyond providing passenger safety applying a holistic approach to improve access to programs like Buckle Up For Life, opportunity, engaging internal resources like Toyota Toyota is working to improve access business partnering groups (BPGs) and coordinating to education and job opportunities local and national non-profits to collectively address through new mobility solutions. community needs. The three areas of focus include: Community Sustainability and Workforce Readiness: Toyota is helping to create a Resilience: Access to healthcare and business-aligned, project-based STEM curriculum healthy food is critical to quality of life. That’s why the company is working with hospitals to improve quality of care, as well as working on a mobile food market with University of North Texas to address food deserts.

Dallas From education to mobility to helping address basic needs, we’re ISD students demonstrate their collaborating with our schools, non-profits and local leaders to find robotic skills solutions that create a more inclusive society — and that benefits us all.”

MIKE GOSS ) General Manager, Toyota Social Innovation and President, Toyota USA Foundation

2019 D + I Annual Report 23 Vayamos Juntos

Let’s go together — words that supporting their merit-based scholarships define the long-standing relationship and student support services, as well as the between the Hispanic Scholarship Fund HSF endowment. Over the years, Toyota has (HSF) and Toyota. Together, they have helped been a predominant sponsor of HSF events, to empower, support and educate Latino like the Alumni Hall of Fame Gala and the families, making college education a priority Leaders in Education Awards Luncheon. And for every Hispanic-American student. currently, TMNA vice president and controller

Scholars at the Anthony Salcido serves on HSF’s Board In 1988, Toyota became HSF 2018 STEM of Directors. a partner with HSF Summit HSF AWARDS RANGE FROM $500 and began As the nation’s largest non-profit supporting TO $5,000 AND ARE BASED ON Hispanic-American higher education, HSF has RELATIVE NEED once criteria for awarded over $500 million in scholarships, the scholarship is met more than $5 million from Toyota, and offers broad spectrum of programs for students, HSF Scholars, Alumni and parents.

The HSF Scholarship is a merit award designed to assist eligible students of Hispanic heritage obtain a university DIDDID YOU YOU KNOW?KNOW? degree based on a specific set of academically focused criteria, with an emphasis on STEM majors.

24 TOYOTA Sebastian Ontiveros Navigating Careers with NaviGo

Sebastian Ontiveros, consumer engagement in the future senior manager for TMNA’s Toyota is investing by helping high school students prepare Hispanic Business Strategy for college and career readiness. As the department, says, “One of largest sponsor of NaviGo, a scholarship the things that truly makes this program in partnership with the partnership special is that there are at least 17 recipients Northern Kentucky Education Council, of the HSF scholarship that have gone on to become Toyota is supporting students in Toyota team members.” making informed decisions about their career choice. HISPANIC POPULATION IN THE U.S. Through the one-year program, students Hispanics are predicted to reach 28% of the total U.S. get the opportunity to work alongside the population by 2060 with buying power at approximately business community to identify true interests $1.7 trillion by 2020 alone. Toyota is proud to maintain and passions, mapping a career path for future a strong presence in this key market as the #1 brand success. NaviGo also helps strengthen Toyota’s among Hispanics for over a decade now. workforce pipeline by recruiting and training students, Students receive hands- teaching them about specific opportunities available and on experience exposing them to different aspects of the mobility industry. through NaviGo

111.2M Scholars involved in the program report an increased interest in 105.6M 99.8M

93.8M engineering by end of year and increased confidence about their 87.6M

81.2M future goals. 74.8M 68.5M 62.3M 58.9M

Programs like NaviGo allow students to see if they 2017 2020 2025 2030 2035 2040 2045 2050 2055 2060 really want to be in our industry.” 18% 19% 20% 21% 22% 23% 25% 26% 27% 28% ANGELA LYLE ) Supply Chain Analyst, Product Support Division, Percentage of U.S. Population Service Parts and Accessories Operations, Toyota Motor North America

Source: U.S. Census Bureau

2019 D + I Annual Report 25 D+I Education at Toyota

Toyota is committed to ensuring a culture grounded in SEEING UNDERNEATH diversity and inclusion takes root in every part of the organization. THE TIP OF THE ICEBERG

Across each function, Toyota offers robust D+I educational One memorable visual programs at all levels that are updated to meet exercise during Mick Morman’s changing needs. In 2018, programs included: D+I Champions training in 2018 likened people’s perceptions of Unconscious Executive D+I Education: others to an iceberg. “With an iceberg, Bias Education: A new program that began you only see what’s above the surface,” says This program rolling out to executives in Mick, an assistant manager at combines 2018, this training features an Corp. (TABC) who grew up in a small Indiana town lacking diversity. instructor-led outside thought leader who “The same is true of people. You see a person’s skin color and how they in-person and helps executives develop a dress, but you don’t see what’s under the surface. You can discover virtual trainings mindset and skillset essential to commonality with another person if you take the time to get on how to be building and managing a diverse to know them.” aware of and manage workplace and connecting it to a biases to better drive team culture of innovation. Upon becoming a D+I Champion, Mick set out to foster greater member engagement and a more inclusivity among TABC’s 400 team members. He found that while D+I Champions: D+I Champions productive work environment. TABC does not lack for diversity — 40 nationalities and 29 languages help drive cultural change across are represented — team members tended to socialize only with others Diversity Awareness Education: the organization by working to like them. Designed for team members promote diversity and inclusion to ensure an understanding of at the department level and Mick began interviewing two randomly selected team members each Toyota’s commitment to D+I, ensure they are embedded in all month to learn about their interests, beliefs, inspirations and values, it reinforces how diversity and work practices. The 100 to 125 and he published their profiles on one of Toyota’s internal inclusion are rooted in The Toyota team members who become D+I communication channels for all team members to read. Way. It also identifies actions Champions must meet annual “I have built better relationships with the people I team members can take to honor requirements. have interviewed, and I hope that others will see Respect for People and embrace a commonality and start a relationship with them diverse and inclusive workplace. as well.”

Mick Morman

26 TOYOTA The Road Ahead

Change is a constant. But, evolution is unlocks experiences and resources a choice. that allow everyone to grow, discover and explore a better world. Toyota’s commitment to D+I isn’t just about Through D+I we are able to fulfill our acknowledging and responding to marketplace purpose — by cultivating and investing in changes. It’s even far beyond vehicles. strong connections across industries and We choose to evolve in an ever-changing world communities. For this reason, D+I is because we’re on a mission to create innovative and a critical component to all aspects of universal mobility solutions — for everyone. Our our business. commitment to this mission is rooted in D+I and our Guided by the pillars of The Toyota Way: belief in equality, respect and inclusive treatment of all Continuous Improvement and Respect for people. We demonstrate our commitment through the People, we have started our impossible. actions of our people who are a direct reflection of the Our epic transformation into a mobility communities where we live and work. company progresses — powered by We are called to serve — to open access to opportunity people and driven by D+I — our and meet the needs of our team members, customers, evolutionary journey continues to navigate dealers, suppliers, partners and society as a whole the road ahead. through the power of mobility. Limitless mobility

We have to dream beyond conventional vehicles and create new forms of mobility that overcome the limits of today and solve the problems of tomorrow.”

AKIO TOYODA ) President and Member of the Board of Directors, Toyota Motor Corporation

2019 D + I Annual Report 27 How do you drive D+I? Visit toyotadiversityreport.com and click on “My D+I Commitment”