Working Toward the Mobility Society of the Future

Message from the President The Source of Our Value Creation: What Makes Us Toyota Value Creation Story: Working toward the Mobility Society of the Future Business Foundations for Value Creation Corporate Data > Making Ever-better Cars > Initiatives to Achieve Carbon Neutrality Software and Connected Initiatives > Commercial Sector Initiatives > Woven City One mechanism that will enable this is geofenc- ing technology. A portmanteau of geography and fence, geofencing refers to the combination of navigation and cloud technologies to enable the automatic switching of engine and motor functions in real time to reflect driving locations and driving times based on geographic data. For example, in zero-emission regulation regions that limit vehicle operation to only BEVS during certain time periods, geofencing automatically controls the functions of HEVS and PHEVs to ensure compliance with regulations. Furthermore, geofencing enables anticipatory eco-driving that switches over to BEV driving as appropriate by predicting the driving burden based on the driving environment up to the destination. Utilizing connected technologies makes it possible to further promote energy saving in cars the smart control of HEVS and PHEVS. The new NX features a mechanism that switch- es to HEV control. We expect that in the near future it will be able to use geofencing technology with over-the-air (OTA) update of its software. In October 2021, in advance of introducing geofencing technology under development with an eye toward practical application, we introduced Rate of Engine Being Off During Driving Software download quality management anticipatory eco-driving (anticipatory EV/HEV mode switching control) in the Japanese market. It realizes highly efficient driving by automatically switching between EV and HEV modes depend- ing on the charge left in the battery and the road conditions and characteristics. Continuing to Evolve through Software Updates OTA refers to using wireless connections to continuously update to the latest software (control software and high-precision mapping software). This means that after a car's purchase, new functions continue to be added and perfor- mance enhanced while the latest driving assis- tance technology is installed, thereby continuing the vehicle's evolution into a safer and more secure car. For the Lexus LS and Mirai launched in Japan in April 2021, we have included cars that feature the latest Advanced Drive function of the newest sophisticated driving assistance technologies developed by Toyota Teammate/Lexus Teammate, and they are eligible for related software updates Software quality management Rate of Engine Being Off During Driving Engine + BEV driving BEV during stops BEV driving (%) 100 HEV Connected base 1010 1010 001010 Software download 1001 management Software version 001010 management 01001 75 PHEV on an ongoing basis. The GR Yaris "Morizo Selection" is a new initiative based on GR Yaris that combines the ROOKIE Racing privateer team run by Morizo (President Akio Toyoda's racing driver name) and Toyota's KINTO car subscription. We will continue to evolve each car to best match each customer by reflecting updates (which are based on feedback and data gained in races participated in by Morizo and ROOKIE Racing) and personalization (which is based on customer driving data) in the software in GR Garage shops. Furthermore, we offer better driving methods and support the enhancement of driving skills. Basically, we realize cars that evolve to suit people by updating the latest software in line with each customer. Note: These updates are not OTA. They are done through a wired connection at stores. The Auto Industry Going Forward and the Possibility of Cars Cars have a wide range of applications from passenger cars to MaaS and commercial Energy Conservation vehicles, and we will continue to expand the regions where we operate going forward. Needs are increasingly diversifying, and cars can be used in a myriad of ways to meet them. Our efforts thus encompass people's problems and social issues, smiles and joy, and needed technological development. The auto industry must move people while also achieving coexistence with local communities. For the future and for children, the Toyota Group is working on producing happiness for all through freedom of movement for all and the provision of exciting experiences. We will continue to enhance the excitement that can be experienced by being able to move by combining real cars and the power of software. If we combine innovation with technology, the value of cars will rise higher. We will also contribute to the further development of society by going beyond the borders of cars and contributing to community building and the creation of society- wide platforms. Harmony between Society and Cars Anticipation of driving burden on the environment Asnières-sur-Seine о HEV driving antin Urban area Mountainous area Downloaded software Fee 001010 Car ⚫ Vehicle condition • Software version, etc. 50 83% Region-specific 25 needs 59% 0 TOYOTA MOTOR CORPORATION 28 HEV driving BEV driving HEV driving BEV driving HEV driving for acceleration BEV driving for frequent starts & stops HEV driving for climbing hills Regenerative charging BEV driving for the remaining distance Switch to electric-vehicle mode based on driving environment (Anticipatory eco-driving) INTEGRATED REPORT Cloudi Cham V HEV driving Support for driving in cities that have zero-emission regulations (Geofencing technology)

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