#1Cycle of Growing Together Shareholder return Growing Together with Our Stakeholders Optimal mobility Shareholders Business foundation Asia & emerging markets, HEVS, TPS & cost improvements, value chain Suppliers Purchasing Customers TOYOTA Investing in the future Carbon neutrality & electrification, software, mobility Employees ΤΟΥΟΤΑ Local Communities Stable and continuous wage increases Paying taxes Regarding our financial results, our profit structure is steadily improving. We believe that the foundation for such sustainable growth has been laid thanks to our customers around the world who chose us as well as our shareholders, dealers and suppliers, and all other stakeholders who support us. Once again, I would like to express my deepest gratitude. We intend to further strengthen this foundation with our many stakeholders who support and sustain us from a medium- to long-term perspective, from the past, present, and into the future. Today, I would like to talk about the kind of growth we aim to achieve. 1 1#2Characteristics of Toyota's Business Foundation Full lineup of vehicles worldwide ΤΟΥΟΤΑ FY2023 retail vehicle sales volume Matching investment decisions to actual demand Japan North America Europe Asia China Others 11.2 (Trillion yen) By region 14% 25% 11% 15% 20% 15% Volume of net liquid assets*1 9.0 8.3 8.1 6.9 Strength of 100 million units owned by our customers Profit structure (FY2020-FY2023 cumulative operating income) HEV business supporting multi-pathway ICES Retail vehicle sales by powertrain in FY2023 HEVS 2.8 2.5 2.5 2.4 70% 28% Lower investment capacity had early shift to BEVS been made R&D expenses*2 and capital expenditures*3 Investments for new business domains"4 BEVs, batteries, software, etc. PHEVS/FCEVS/BEVS Value chain New vehicles Operating income by powertrain in FY2023 ICES HEVS FY2020 FY2021 FY2022 FY2023 2023.9 2 1. Net liquid assets = cash and cash equivalents, time deposits, public and corporate bonds and its investment in monetary trust funds, excluding in each case those relating to financial services, less interest-bearing debt (not including lease liabilities), excluding those relating to financial services. 2. R&D activity related expenses incurred during the reporting period. 3. Excluding vehicles in operating leases and right of use assets. 4. R&D expenditures and capital expenditures related to battery electric vehicles, batteries, hydrogen business, software business, etc. First, let me talk about the characteristics of our business foundation. Our business has three characteristics. First, we have a full lineup of vehicles worldwide and a balanced regional representation. Second, we have a global customer base of more than 100 million units. And third, we offer hybrids, which provide both CO2 emissions reduction and profitability. These characteristics lead to the stabilization of earning power, which is less susceptible to the effects of fluctuations in the economic and market environment in each country. Another major point is the careful timing of our investment decisions. Our comprehensive assessment of investments in BEVS and batteries while considering the energy situation and infrastructure in each country, the evolution of technology, and changes in actual customer demand, has enabled us to achieve a strong financial foundation upon which we can promote investments for the future. 2#3Efforts in Delivering Cars to Customers (1) Efforts in Product Development Develop and launch products that match customer needs ΤΟΥΟΤΑ (4) Efforts in Sales Visualize supply and demand by using DX (2) Efforts in Production (incl. suppliers) Maintain a high level of production by continuous efforts (3) Efforts in Logistics Improve logistics efficiency by working together with partner companies Global Production Vol. Best Production Vol. '23 Apr. May Jun Jul. Aug. Sep. This financial foundation has been made even more successful by the steady continuous improvement activities of our suppliers and those on the front lines of manufacturing and logistics, as well as our dealers.#4Examples of Manufacturing Efforts ΤΟΥΟΤΑ Utilized the period of operational downtime caused by the COVID-19 pandemic to work on accumulating second-by-second improvements such as improvement in quality and productivity by digitalization Automation of defect detection by utilizing Al Visualization of skills through VR Before: After: Reduction of burden on trainers for the sealer application process (difficult skills) Visual inspection Al camera inspection Cannot overlook any defects Burden on workers' physical and mental state Reduction of burden on workers Trainee (practice) Highly skilled trainer (sample) Halve the basic training time On the front lines of manufacturing, we are working to improve quality and productivity by accumulating second-by- second improvements, reducing the burden on workers through digitalization, and visualizing the skills of our skilled craftspeople.#5Examples of Logistics Efforts Managing volume increase amid a shortages of truck drivers and ships <Parts and vehicle logistics> CARS Supplier Looo Plant Milk run (total optimization) Before Complicated route / low loading rate EM A Hub EM B EM C BB Hub Domestic dealers Joint transportation Mutual use of transportation networks with other companies Outward journey CARS of other company After Simplification of route / higher loading rate Dealer of other company After unloading -0-0-0 EM B A B C Hub Toyota plant Export port ΤΟΥΟΤΑ CARS Overseas dealers Vehicle discharge at the West Coast Higher rotation rate of ocean vessels by shifting to inland transport within the U.S. Inland transport Plant of other company One month Two months Inward journey of other company CARS Main reasons for severe shortage of ocean vessels Exports of finished vehicles from China increased Shipbuilding decreased due to COVID-19 Demand Toyota dealer Supply On the front lines of logistics amid a shortage of truck drivers and ships, we have been making improvements by drawing on the wisdom of related companies. As a result, in parts distribution, we have simplified routes and increased loading capacity, and in finished car logistics, we have reduced vacant space rates by jointly transporting vehicles with other companies.#6Examples of Sales Efforts TOYOTA Improving customer convenience by implementing digitalization and visualizing the entire process, from order intake to delivery Introducing online tool SmartPath Introducing sales and logistics management system (J-SLIM) Visualization of information by introducing a Customers Seamless online and in-shop experience unified system <Toyota> J-SLIM <Dealers> CARS Order intake, production, transportation, and delivery The delivery date is **/**120**! • Accurate delivery-date information Reducing production restriction Parts & Supplies Easier to make production plans Customer Receive the car on the desired delivery date In transit: Estimated arrival date is **/**120** • Understanding inventory and transportation schedules Shorten business negotiation time Toyota Tracking vehicle status e 39 12172021 Prod. Confirm 2252822 Build 2050822 Processing 2/212022 2000822 Truck Depart Truck Arrive 322822 Rail Depart 32022 Rail Arrive Additional Details RANT BULDOMATION Plant GEORGETOWN Build Date: 12/25/2022 Hold Status: Not on Hold 回 1100022 On Truck for Delivery 192822-3440003 Arrival at Dealership On the front lines of sales, we are utilizing digital transformation to build a system that links production, transport, and sales to provide customers with accurate delivery-date information and to deliver vehicles quickly and without waste. 6#7A Strengthening Earning Power Strengthening business foundation based on making ever-better cars Expanding business domains to become a mobility company New peripheral businesses BEV, hydrogen businesses . TOYOTA Expanding of business domains Competitive BEV and hydrogen businesses • Creation of businesses based on software and energy Strengthening of business foundation Value chain expansion • Making ever-better cars . Maximization TPS Cost Expanding sales of HEVS and PHEVs in emerging markets of sales efforts improvements • Continuously strengthening structure through TPS and cost reductions Making ever-better cars • Maintaining and expanding customer touchpoints worldwide We intend to continuously evolve our cycle of growth together with stakeholders through the business foundation we have built up based on "making ever-better cars" initiatives and through front-line efforts that maximize the effectiveness of such, including the efforts of related parties. We will continue striving to deliver ever-better cars that meet the needs of customers in each region, develop new customers in emerging markets, and further strengthen our unique and solid business foundation. We also plan to expand and strengthen our investment in the future, including in BEVs, hydrogen, software, and energy, and broaden touchpoints with our customers and alliance partners beyond the automotive industry with a total package, which we hope to link to the expansion of our business domain toward becoming a mobility company and the transformation of our corporate group's business structure. 7 7#8ΤΟΥΟΤΑ B Investment Technological prowess (Shifting of resources to advanced fields) TOYOTA TECHNICAL WORKSHOP 2023 Manufacturing techniques (Fusion of TPS/onsite capabilities & digital/innovative technologies) TOYO Digital TOYOTA MONOZUKURI WORKSHOP 2023 All-solid-state battery (Stack: prototype) Future of mobility overflowing with diversity arene On-site improvement Next is investment in the future. We have shown you the technology and skills that have been accumulated over the years through technical and manufacturing workshops. The future does not come suddenly but is made up of the steady accumulation of day-to-day activities. To leave many options for the future, we believe technology will drive investment in various areas, and we plan to actively sow the seeds for the future by combining manufacturing techniques with digital and innovative technologies. And for key investments in mass production, we plan to determine and execute investment timing based on the technologies and skills we have honed from a long-term perspective, while closely watching market trends. 8#9C Shareholder Return ■Policy of implementing stable and continuous dividend increases Shifting focus to dividends to reward long-term shareholders (100 million yen) 6,367 8,169 7,182 6,710 6,108 5,499 2,499 1,999 FY2019 FY2020 Total dividends"¹ Repurchases of common stock FY2021 1.Including dividends on First Series Model AA Class Shares (However, dividends are not included on such shares from FY2020 onward due to application of IFRS.) 2.For illustrative purposes only; not a forecast 4,356 2,999 (Upper limit) TOYOTA FY2022 FY2023 Future"² When it comes to shareholder return, we aim to continue to increase dividends to reward long-term shareholders. 9#10Sale D Capital Strategy ΤΟΥΟΤΑ ■Building an optimal formation for a mobility company to maintain and improve competitiveness ■Reducing strategic shares, reviewing group cross-shareholdings, and utilizing treasury stock and cash on hand Investment 500 billion yen Legend OEM CASE FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 500 billion yen 1.Total amounts of stock acquisitions and sales during the respective periods. • • Building alliances "Home & Away" • In addition to asset replacements, we will use treasury stock and cash on hand. Future Replacement of assets Reducing strategic shares Reviewing cross-shareholdings in our corporate group Finally, there is our capital strategy. Our transformation into a mobility company requires a muscular balance sheet. While selling strategic stocks that have declined in significance to our holdings and conducting “Home & Away" activities within our corporate group, we have been building alliances to accelerate our transformation. By continuing to reduce our number of strategic shares, reviewing group cross-shareholdings, and utilizing treasury stock and cash on hand, we aim to build the optimal formation for a mobility company and maintain and improve our competitiveness. 10 10#11ΤΟΥΟΤΑ Toward Realization of Cycle of Growing Together ■Further strengthening earning power and accelerating investment for sustainable growth ■Leveraging accumulated assets to gain a competitive edge Earning power Total: Approx. 16.6 trillion yen A Average: Approx. 4.2 trillion yen Earning power Earning power FY2020-FY2023*1 FY2024-FY2027*3 Investment & shareholder return Total: Approx. 14.2 trillion yen Average: Approx. 3.5 trillion yen Shareholder return B Shareholder return Investments for new business domains's Investments for new business domains's Investments for existing business domains 4 Investments for existing business domains4 FY2020-FY2023*2 FY2024-FY2027*3 Note: Excluding financial business Financial base D Treasury stock Treasury stock Capital strategy M&As Strategic shares, etc. Strategic shares, etc. Building alliances "Home & Away" Net liquid assets Net liquid assets Ensuring business FY2023 FY2027*3 continuity Use*3 1. Earning power Automobile business operating cash flow + R&D expenses (R&D activity related expenditures incurred during the reporting period) 2. Investment & shareholder return = R&D expenses (R&D activity related expenditures incurred during the reporting period) + capital expenditures + dividends + share repurchases 3. For illustrative purposes only. These are not forecasts of the amounts in question for or as of the relevant periods or dates, or breakdowns thereof. 4. R&D expenses and capital expenditures for businesses related to internal combustion engine vehicles, etc. 5. R&D expenses and capital expenditures for battery electric vehicles, batteries, hydrogen business, software business, etc. In summary, to realize a cycle of growth with our stakeholders, we will continue striving to strengthen our earning power, accelerate investment for the future, utilize our accumulated assets, and create a new formation for a mobility company to gain a competitive edge. 11 11#12Cycle of Growing Together Growing Together with Our Stakeholders From Now on Optimal mobility Shareholder return Shareholders Business foundation Asia & emerging markets, HEVS, TPS & cost improvements, value chain Suppliers Purchasing Customers TOYOTA Investing in the future Carbon neutrality & electrification, software, mobility Employees ΤΟΥΟΤΑ Local Communities Stable and continuous wage increases Paying taxes Precisely because this is an age in which it is hard to predict the future, we hope to work together, with your support and encouragement, to create the future of mobility. To this end, we would like to use the results we have been able to generate thanks to our many stakeholders as a source of growth together with our customers, shareholders, suppliers, employees, and local communities. If we do not act, we will not be able to carve out a future for ourselves. We hope that you will certainly continue to look forward to what Toyota will achieve and support us in the future. Thank you very much for your attention today. 12 12