Society Sustainability Report 2014 Customer First …

1 SocietyEnvironment11 Initiatives for Improving Traffic Safety04-01 Respect for Human Rights07-01 Customer First and Quality First Measures05-01 Creating the Future Society06-01 Collaboration with Business Partners08-01 Employees09-01 Stakeholder Engagement10-01 Governance13-15 Social Contribution12 Definition of QualityGlobal Implementation Structure of the Quality Conference (Basic Scheme)Quality function policyResponses to global issuesRegional quality policiesResponses to regional issuesCollaboration (coordination of action items)Collaboration (coordination of action items)Quality Function BoardChairman: Customer First Promotion Group Chief OfficerParticipants: Chief officers and othersRegional quality committeesCollaboration (reciprocal participation, sharing progress information)Collaboration (reciprocal participation, sharing progress information)Chairman: Regional CQOP articipants: Representatives of individual affiliates and functionsProduct qualitySales and service qualitySmiles of customersWork qualityConforming to fundamentals of workCustomer First and Quality First MeasuresBasic Philosophy regarding Customer First and Quality First PrinciplesQuality is the result of collaboration among development, design, procurement, production, sales, after-sales service and other areas.

2 It is necessary to make efforts in all of these areas in order to provide the quality that will satisfy Toyota, quality includes product quality, sales and service quality, and the quality of the work performed by each employee that serves as the foundation supporting the other aspects of quality. We believe that the combination of these three constitutes quality and it is only when all three aspects of quality are secured that we can provide products and services that can gain the trust of customers. The origins of quality lie in the spirit of audit and improvement, and Toyota s unchanging monozukuri (manufacturing) pursues ever higher quality through continuous improvement based on repeated implementation of PDCA. Since the occurrence of quality issues in 2010, Toyota has made February 24 Toyota Restart Day, and employees are making even greater efforts to rebuild Toyota as a quality leader that exceeds Customer Toyota s foundation, each employee has strived to make improvements in his or her own work with a strong and constant awareness of issues and has sought to raise Customer safety, security.

3 And satisfaction through close collaboration with personnel in other fields so that we can put the principles of Customer First and quality First into practice and continuously meet the expectations of customers and and StructureToyota has set its quality function policy to rebuild Toyota as a quality leader that exceeds Customer expectations and addresses various quality related issues with a focus on priority measures according to specific improvements specified in annual policies. The fundamentals of implementation are function management and policy management. Function management refers to setting companywide policy based on a function that assures quality and each division efficiently taking action in collaboration with other management refers to the formulation and implementation of action plans for achieving targets in each division based on the companywide policy.

4 During the implementation phase, progress and results are reported through Quality Function Board and other forums and responses are carried out as has appointed Chief Quality Officers (CQO) in Japan and other regions around the world to address regional issues and promote global addition, the Customer First Promotion Group (CF Promotion Group) was established in 2012 to re-establish Toyota as a quality leader from the Customer s perspective and reinforce internal organizational development with the aim of improving quality. The CF Promotion Group serves as a direct link between customers and the appropriate internal divisions, and encourages the practice of Customer managementPolicy managementSustainabilityReport 201405-01 SocietyEnvironment11 Initiatives for Improving Traffic Safety04-01 Respect for Human Rights07-01 Customer First and Quality First Measures05-01 Creating the Future Society06-01 Collaboration with Business Partners08-01 Employees09-01 Stakeholder Engagement10-01 Governance13-15 Social Contribution12 LogisticsSales and after-sales serviceProduct planningDevelopment and designInspectionProduction preparationsPurchasingProductionAreaDeve lopment and designMain Activities in FY2013 Started establishing systems and rules to enable suppliers to ensure continued production of high-quality partsPurchasingStarted global deployment trials concerning production technology and manufacturing

5 DefectsProductionImplemented measures in further collaboration with technology divisions to bolster troubleshooting functionsSales and after-sales serviceMajor Activities in Each Area for FY2013 Main Initiatives during FY2013 SustainabilityReport 201405-02 Quality AssuranceWe have been holding a Global Chief Quality Officer (CQO) Meeting since 2013 as an opportunity for regional chief quality officers to meet at the same time. The purpose of the meeting is to globally share information concerning Customer status in each region and on examples of quality improvement measures implemented in individual May 2014, the CQO from North America, Europe, China, Asia, the Middle East, East Asia, Oceania, Africa, and Latin America and relevant officers from Toyota Motor Corporation attended a Global CQO Meeting.

6 The meeting was held at the Customer Quality Learning Center, which opened in February of that year, to reinforce awareness of Toyota s Customer First and quality First meeting began with a review of the status of quality in FY2013 and focused on priority issues that need to be addressed in FY2014. The main topics of discussion were raising the quality of global suppliers and raising the quality of vehicles produced overseas. Following active discussions and exchanges of opinions by all participants, information concerning the direction of actions to be taken in FY2014 was shared. The participants confirmed that they will share the details of their discussions at the Global CQO Meeting with their respective regions and implement independent improvement Information on the Current Status of Quality and Quality Measures Globally through the Global CQO MeetingGlobal CQO MeetingAdopted rules for part parts/assembly drawing instructions and process control guidelines relating to Customer safety in collaboration with production engineering and manufacturingSocietyEnvironment11 Initiatives for Improving Traffic Safety04-01 Respect for Human Rights07-01 Customer First and Quality First Measures05-01 Creating the Future Society06-01 Collaboration with Business Partners08-01 Employees09-01 Stakeholder Engagement10-01 Governance13-15 Social Contribution12 Individual regions and

7 Affiliates are undertaking highly original quality education measures created independently such as quality month. CQOs in each region distribute a clear message concerning quality to affiliates within their regions of responsibility and encourage such example, the North America CQO distributed the message that a deep understanding of your Customer s expectation is an essential First step, displayed Customer comments and recovered parts during quality month, expanded quality months to each affiliate within the territory, and implemented other educational programs such as Customer First Confirmation Day. The Latin America CQO s message was Q_ALITY is not Quality without U! The CQO implemented measures such as granting excellent supplier awards and holding a dealer skills contest. In Europe, the CQO s message was quality should be at the heart of everything we do, and various educational programs were conducted including a quality month, quality forums, a restart day.

8 And quality in Various Regions Conduct Quality Education Programs such as Quality Months with the Same IntentA supplier meeting in South AfricaA Genchi Genbutsu Confirmation Conference at a plant in AustraliaA video of quality-related episodes was produced and shown in ThailandSustainabilityReport 201405-03 SocietyEnvironment11 Initiatives for Improving Traffic Safety04-01 Respect for Human Rights07-01 Customer First and Quality First Measures05-01 Creating the Future Society06-01 Collaboration with Business Partners08-01 Employees09-01 Stakeholder Engagement10-01 Governance13-15 Social Contribution12 System for Implementing Customer FeedbackBrochure requests 3%Other (car delivery date etc.)14%Navigation and audio systems related17%Consultations84%Opinions and requests 6%Salesperson support 10%No.

9 Of calls received (360,000)Content of calls receivedCar related(specifications, equipment, etc.)66%Car related(specifications, equipment, etc.)66%Toyota Customer Assistance Center and Lexus Information DeskSustainabilityReport 201405-04 Applying Customer Feedback to the Creation of Better Products and ServicesToyota s principle of Customer First exists for the purpose of providing customers with products and services that earn their smiles. On this basis, Toyota hopes to offer cars with superior features in terms of environmental, safety and quality performance, while also offering the intrinsic appeal of cars, such as driving performance, at an affordable , in order to make better cars, Toyota makes rigorous use of Customer opinions gleaned from dealers and the Customer Assistance Toyota Customer Assistance Center, as well as the Lexus Information Desk dedicated to Lexus brand models, offer toll-free phone consultation 365 days a year and accept brochure requests 24 hours a day in Japan.

10 With this convenient Customer -oriented system, Toyota offers speedy, appropriate and empathetic responses to Customer inquiries, and listens to opinions and requests, based on the principle of Customer First . At the same time, Toyota undertakes initiatives to link this feedback to the creation of better products and , the Salesperson Support Desk was established in order to support dealers in implementing the Customer First also conducts surveys of customers who use the telephone service via an automated response system, in an effort to make further Service DivisionDealerJapan Sales Business GroupDealerDesign and manufacturingQuality Div. and Customer Quality Assistance CenterCustomerNo. and Content of Calls Received by the Center and the Desk in FY2013 SocietyEnvironment11 Initiatives for Improving Traffic Safety04-01 Respect for Human Rights07-01 Customer First and Quality First Measures05-01 Creating the Future Society06-01 Collaboration with Business Partners08-01 Employees09-01 Stakeholder Engagement10-01 Governance13-15 Social Contribution12 Customer Feedback Received by ToyotaSustainabilityReport 201405-05 Customer Feedback from Each Country and RegionIn order to offer products and services based on the Customer First principle, Toyota has established Customer assistance centers not only in Japan, but also in the , Europe, other Asian countries, and at each distributor around the world.