Toyota Strategies
Toyota Strategies
Toyota Strategies
Toyota’s
— Moving toward Global Motorization
—Moving —
Motorization—
This presentation contains forward-looking statements that reflect Toyota’s plans and expectations.
These forward-looking statements are not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors that may cause Toyota’s actual results, performance, achievements or
financial position to be materially different from any future results, performance, achievements or financial
position expressed or implied by these forward-looking statements. These factors include: (i) changes in
economic conditions affecting, and the competitive environment in, the automotive markets in Japan, North
America, Europe and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates,
particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro and the British pound; (iii)
Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times
planned by management; (iv) changes in the laws, regulations and government policies affecting Toyota’s
automotive operations, particularly laws, regulations and policies relating to environmental protection, vehicle
emissions, vehicle fuel economy and vehicle safety, as well as changes in laws, regulations and government
policies affecting Toyota’s other operations, including the outcome of future litigation and other legal
proceedings; (v) political instability in the markets in which Toyota operates; (vi) Toyota’s ability to timely
develop and achieve market acceptance of new products; and (vii) fuel shortages or interruptions in
transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the
employment of labor in the major markets where Toyota purchases materials, components and supplies for
the production of its products or where its products are produced, distributed or sold. A discussion of these
and other factors which may affect Toyota’s actual results, performance, achievements or financial position is
contained in the “Operating and Financial Review and Prospects” and “Information on the Company” sections
and elsewhere in Toyota’s annual report on Form 20-F, which is on file with the United States Securities and
Exchange Commission.
2
Fujio Cho
President
Toyota Motor Corporation
3
I. Global Manufacturing & Marketing in 2002
Growth in Production Volume
Global output Overseas output
(Millions of units) (Millions of units)
33 years
years
6.0 2002
2002 Global
Global
(million
(million units)
units)
Output :: 6.31
Output 6.31**
Sales :: 6.17
Sales 6.17**
13 years
5.0
* includes Toyota/Lexus,
Daihatsu and Hino brands.
2.17 2.0
0.45
3.0 0
1986 1999 2002 Corolla
Overseas output Global output
4
II. 2010 Global Vision
Major change in the global
economic environment <Expected society>
Taking
Taking on
on
the
the challenges
challenges
for
for change
change Global
motorization
Achieve
global Market & population growth
production & in the US
sales of
* Regional strategies –
6 million units North America, Europe, Rise of markets in Eastern & Central
Europe and in Russia
Asia, China and Japan
* Technological innovation Strong growth of Asian markets
2002 2010s
5
III. Regional Strategy
North American Market (1):
Creating market through new product launches
2002 sales:
(Millions
of units) 1.91
million units Luxury SUVs Full-sized trucks
15
#4 Indiana #2 Kentucky
#1 NUMMI
#5 Mexico
#6 Texas
1.65
⇒“Made-in-Texas” trucks
Texas plant
<Manufacturing capacity (Tundra)
expansion plan> 1.48 1.50
(Millions of units) Mexico plant
1.40
Canada plant (Tacoma)
Indiana plant expansion (Sienna) expansion
(RX330)
2002 sales:
760,000 Marketing
Marketing
units organization
organization
restructuring
restructuring
starting
starting
April
April 2003
2003 Action in
United the wider
Kingdom EU market
France Czech
Republic
Japan
South Africa & Argentina:
Intra-regional India
manufacturing bases To Europe & Africa
Thailand
Others
To South America Philippines
Indonesia
South Africa
Argentina
: Pickups & multipurpose vehicles
: Engines & main components 9
III. Regional Strategy
Chinese Market: Manufacturing & marketing
to be strengthened in response to market growth
Luxury Large &
Luxury sedan Crown
Product lineup
SUV
Land Cruiser/Prado Establish full
product lineup
Compact
Compact Vios
Establish
Daihatsu Toyota brand image
(Compact) Corolla
50,000
capacity
10
III. Regional Strategy
Japanese Market: Introduction of Lexus &
Reorganization of Sales Channel
⇒Preparations for future changes (in market structure & customer values)
After reorganization
Lexus Development of new Lexus dealership
(new) network in 2005 (150 dealers)
Toyota brand
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III. Regional Strategy
Japanese Market: Introduction of Lexus &
Reorganization of Sales Channel
⇒Preparations for future changes (in market structure & customer values)
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IV. Technology Strategy (1)
Development of a wide range of technologies and
products with focus on market creation
<Technology development> <Marketing>
Nanotechnology Material technology
Leading-edge
technologies
Assessing
Biotechnology
Energy customer needs
technology
technologies
Next-generation
Existing
technologies
Environment Safety IT
Harmonizing
Harmonizing “Ecology”
“Ecology” with
with “Emotion”
“Emotion”
Ecology
Ecology Emotion
Emotion
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V. Conclusion
Global-scale motorization
Rise of markets
Market & in Eastern &
population Strong growth of
Central Europe
growth in the US Asian markets
and in Russia
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Toyota ’s Global Strategy
Toyota’s
— Moving toward Global Motorization
—Moving —
Motorization—
2
I. Business Performance
Operating income by market segment
(Billions of yen)
Europe -2 -12 5
9 (%)
9.1% 9%
income ratio
7.4%
Operating
6.1% 6% 6.5%
(Billions
6 of yen)
~
~ ● 11.3% 1,000
(%)
10
8.5% ●10%
6.8% ●
ROE
500
6.3% ●
5.8% ●
●
5 0
FY1999 FY2000 FY2001 FY2002 April-Dec.,2002 Target (Japan GAAP)
Operating income Operating income ratio ROE
4
III. Dividend Payments & Share Buyback
Cash flow allocated to dividend payments
(Billions of yen)
1,000 and share buyback
500
~
400 ~
0
FY1999 FY2000 FY2001 FY2002
Cash flow Dividend & share buyback (Japan GAAP)
6
V. Toyota’s Actions on Corporate Governance
and Information Disclosure
Internal Mechanisms ⇒Reinforcement of internal controls
General
General shareholders’
shareholders’
<Internal/external meeting
meeting <Monitoring>
auditing>
International
International Advisory
Advisory
Monitoring
Accounting
Accounting audits
audits Board Board
Board
based
Board of
of directors
directors
based on US &
on US &
Japan auditing
Japan auditing
Monitoring
Monitoring
standards
standards
Monitoring
Labor-Management
Labor-Management
Council
Council &
& Forum
Forum
President
Board
Board of
of statutory
statutory
Monitoring
auditors
auditors Social
Social Contribution
Contribution
Program
Program Committee
Committee
Half
Half are
are external
external Managing Officers
auditors
auditors
Monitoring
Monitoring Corporate
Corporate Ethics
Ethics
Committee
Committee
2
3
Prius: The World’s First Production
Hybrid Vehicle
Power train
Design Packaging
4
Development Goals of First-Generation Prius
Fuel economy
◆ Innovative advances in
fuel economy, surpassing 1.5 times
conventional gasoline-fuel 2.0 times
engine
5
Toyota Hybrid System (THS)
Generator Battery
Gasoline engine
6
HV Technology Matrix
Strong
THSII NG-Prius
*EV
Drive
European
THS Prius
Toyota Coaster Concept Vehicle
Plug-in/Switching
Estima HV
Japanese
Vehicle A
Mild
non Japanese
EV Vehicle B
Drive
Crown Mild HV
Series/Parallel HV
Series HV Parallel HV
( HV of Hybrids)
Diesel-
engine 91 20
vehicle
Prius
(THS) 88 30
Estimated by Toyota
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Low Environmental Impacts (Emissions)
ppmc
50
Gasoline Engine approaching
Ambient Air level
Hybrids help catalyst warm up hence
Concentration
Gas Concentration
Conventional
reach very low emission level
level
Cold start emission
Hot start emission
5
Gas
Prius
City Air
0
96 98 00 02 04 Year
9
Internal Development of Toyota Hybrid System
Engine
Generator
Secondary
battery
Power
control
unit
Hybrid
Motor
ECU
Internally developed
components
10
Increased Sales of Hybrid Vehicles
Units
Units 100,000
100,000
Total
Total vehicles
vehicles
50,000
50,000
Estima Hybrid (4WD)
Gas
Gas turbine
turbine HV
HV (1969)
(1969) Prius Year
Year 2001
2001
11
Hybrid Synergy Drive
Fun to Drive
12
Next-Generation Hybrid System (THS II)
Secondary
battery
Generator Inverter
Engine
Motor
(150% increase in
output)
Power split device
Driving wheel
((SU-HV)
SU-HV)
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Fuel Cell Vehicle
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Development of Toyota FCHV
FCHV: Fuel Cell Hybrid Vehicles
1992
Start of FCHV development
1996
Announcement of the hydrogen FCHV at the EVS-13 (Osaka)
1997 1996
The world’s first FCHV with Methanol Reformer
2001
Announcement of the FCHV-3, FCHV-4, FCHV-BUS1,
and FCHV-5
2002
Announcement of FCHV-BUS2 & limited marketing with 1997
the delivery of Toyota FCHV
Secondary Air
battery compressor
High-pressure
Power
Motor control hydrogen
Power control unit unit
storage tank
TOYOTA Air compressor
HV EUC FC Stack
Internally developed
components
Motor
TOYOTA FC Stack
17
Application of Hybrid Technology
PRIUS TOYOTA FCHV
Power Power
Control Unit Control Unit
Secondary Secondary
Battery Motor Battery Motor
18
Overall Efficiency <Well-to-Wheel>
Well to Tank to Overall efficiency (%)
tank( %) Wheel(%) 0 10 20 30 40
Gasoline-
engine 88 16
vehicle
FCV
(High-pressure 38
hydrogen)
58
FCHV
(High-pressure 50
hydrogen)
1
Internal combustion
engine vehicles
Internal
combustion
Internal combustion engine engine HV
fuel cost + Internal
combustion engine cost
0 Fuel cell vehicle
2000 20X0 Year
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Toyota’s Environmental Technology
Development
The Ultimate ECO-Car
FCHV
THS
Hybrid Technology
DPNR D-4
CNG Diesel DI Lean Burn EV
VVT-i
Alternative Diesel-engine Gasoline-engine
fuel vehicle vehicle EV & FCV
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Toyota ’s Technology Strategy
Toyota’s