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62 Sustainability Report 2006 Social Aspects Global Society/Local Communities Initiatives toward Improving Traffic Safety Striving toward the Complete Elimination of Traffic Deaths and Injuries In order for automobiles to develop as a means of transportation that continue to provide the convenience of mobility in the future, it is important to minimize the negative effects of environmental impact, traffic accidents and traffic congestion. With the aim of achieving an affluent mobile society, Toyota has for some time positioned this social task as an extremely important issue, on par with measures to improve vehicle performance and initiatives to reduce environmental impact, and has been actively involved in addressing it. In terms of safety, Toyota is aiming for the complete elimination of traffic deaths and injuries and is advancing initiatives for traffic safety by viewing people, vehicles and the traffic environment as an integrated whole. In addition to making safe vehicles, Toyota is taking a comprehensive approach with initiatives such as educating people, including drivers and pedestrians, and making proposals toward the creation of a safe traffic environment. Initiatives for Enhancing Vehicle Safety Toyota divides the development of safety-related technologies and measures into the following three areas: 1) Preventive safety technologies that help prevent accidents, 2) Pre-crash safety technologies that anticipate and prepare the vehicle for an unavoidable collision in order to help minimize damage and 3) Collision safety technologies that help reduce injury to people during an accident. By staying abreast of the latest technological trends worldwide and by carrying out vehicle development that is based on surveying and analyzing various types of actual traffic accidents, Toyota is striving to achieve solid safety performance. Initiatives for Improving Preventive Safety Further Development of VDIM Preventing accidents from occurring in the first place is the key to ensuring driver safety, and this is the goal of the preventive safety concept. The basic principle of preventive safety is to assure that a vehicle will always perform its basic functions of “moving, turning and stopping.” Toyota endeavors to improve these basic functions by consistently incorporating state-of-the- art technologies. Toyota’s Vehicle Dynamics Integrated Management (VDIM) system, which was developed based on this concept, integrates management of the engine, brakes, steering and other control systems. For example, VDIM integrally controls the driving torque, braking force, and wheel turning angle to prevent the car from skidding sideways, ensuring safe operation even on a curved road on a rainy day. Toyota incorporated VDIM into the GS430 launched in August 2005 and the IS350 launched in September 2005. Initiatives for Improving Pre-crash Safety World’s first Pre-crash Safety System (PCSS) with Driver-monitoring Function Aiming to lessen collision injuries, Toyota expanded the use of the Pre-crash Safety System using millimeter-wave radar and installed it in the GS430 and GS350 launched in August 2005, the IS350 and IS250 launched in September 2005, and the Estima launched in January 2006. Toyota also developed the world’s first Pre-crash Safety System with a driver monitoring system that takes into consideration, for the first time, the state of the driver. The system uses millimeter-wave radar and a camera to detect other vehicles and obstacles on the road ahead and a camera mounted on the steering column and an image-processing computer to detect the orientation of the driver’s face. If the system reads that the driver is not facing forward when it determines that the probability of a collision is high, it will warn the driver sooner than when the driver is facing forward, aiming to significantly lessen collision injuries. This new system was incorporated into the GS450h launched in March 2006. PCSS camera with driver monitoring system Image-capturing range of the camera People Vehicles Traffic environment Pursuing a higher level of traffic safety Participating in the creation of a safe traffic environment Initiatives designed to educate people in traffic safety Comprehensive Measures Toward the Creation of a Safe Traffic Environment Frozen road surface Dry road surface Braking Maintains safe vehicle orientation by optimally controlling the front wheel turning angle that will stabilize the vehicle Vehicle orientation is unstable because the braking force generated on the dry surface is greater than that on the frozen surface Frozen road surface Dry road surface Vehicle equipped with VDIM Car not equipped with VDIM Vehicle Control by VDIM

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62 Sustainability Report 2006

Social Aspects Global Society/Local Communities

Initiatives toward Improving Traffi c Safety

Striving toward the Complete Elimination of Traffi c Deaths and Injuries

In order for automobiles to develop as a means of transportation that continue to provide the convenience of mobility in the future, it is important to minimize the negative effects of environmental impact, traffi c accidents and traffi c congestion. With the aim of achieving an affl uent mobile society, Toyota has for some time positioned this social task as an extremely important issue, on par with measures to improve vehicle performance and initiatives to reduce environmental impact, and has been actively involved in addressing it.

In terms of safety, Toyota is aiming for the complete elimination of traffi c deaths and injuries and is advancing initiatives for traffi c safety by viewing people, vehicles and the traffi c environment as an integrated whole. In addition to making safe vehicles, Toyota is taking a comprehensive approach with initiatives such as educating people, including drivers and pedestrians, and making proposals toward the creation of a safe traffi c environment.

Initiatives for Enhancing Vehicle Safety

Toyota divides the development of safety-related technologies and measures into the following three areas: 1) Preventive safety technologies that help prevent accidents, 2) Pre-crash safety technologies that anticipate and prepare the vehicle for an unavoidable collision in order to help minimize damage and 3) Collision safety technologies that help reduce injury to people during an accident. By staying abreast of the latest technological trends worldwide and by carrying out vehicle development that is based on surveying and analyzing various types of actual traffi c accidents, Toyota is striving to achieve solid safety performance.

Initiatives for Improving Preventive SafetyFurther Development of VDIM

Preventing accidents from occurring in the fi rst place is the key to ensuring driver safety, and this is the goal of the preventive safety concept. The basic principle of preventive safety is to assure that a vehicle will always perform its basic functions of

“moving, turning and stopping.” Toyota endeavors to improve these basic functions by consistently incorporating state-of-the-art technologies.

Toyota’s Vehicle Dynamics Integrated Management (VDIM) system, which was developed based on this concept, integrates management of the engine, brakes, steering and other control systems. For example, VDIM integrally controls the driving torque, braking force, and wheel turning angle to prevent the car from skidding sideways, ensuring safe operation even on a curved road on a rainy day. Toyota incorporated VDIM into the GS430 launched in August 2005 and the IS350 launched in September 2005.

Initiatives for Improving Pre-crash SafetyWorld’s fi rst Pre-crash Safety System (PCSS) with Driver-monitoring Function

Aiming to lessen collision injuries, Toyota expanded the use of the Pre-crash Safety System using millimeter-wave radar and installed it in the GS430 and GS350 launched in August 2005, the IS350 and IS250 launched in September 2005, and the Estima launched in January 2006.

Toyota also developed the world’s fi rst Pre-crash Safety System with a driver monitoring system that takes into consideration, for the fi rst time, the state of the driver. The system uses millimeter-wave radar and a camera to detect other vehicles and obstacles on the road ahead and a camera mounted on the steering column and an image-processing computer to detect the orientation of the driver’s face. If the system reads that the driver is not facing forward when it determines that the probability of a collision is high, it will warn the driver sooner than when the driver is facing forward, aiming to signifi cantly lessen collision injuries.

This new system was incorporated into the GS450h launched in March 2006.

PCSS camera with driver monitoring system Image-capturing range of the camera

People

Vehicles Trafficenvironment

Pursuing a higher level oftraffic safety

Participating in the creation ofa safe traffic environment

Initiatives designed to educatepeople in traffic safety

Comprehensive Measures Toward the Creation of a Safe Traffi c Environment

Frozen road surface

Dry road surface

BrakingMaintains safe vehicle orientation by optimally controlling the front wheel turning angle that will stabilize the vehicle

Vehicle orientation is unstable because the braking force generated on the dry surface is greater than that on the frozen surface

Frozen road surface

Dry road surface

Vehicle equipped with VDIM

Car not equipped with VDIM

Vehicle Control by VDIM

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Initiatives for Improving Collision SafetyOmni-directional Compatibility

Based on the concept of omni-directional compatibility, which attempts to promote crash safety for both vehicles in a two-vehicle collision of different weights and heights, Toyota is working to increase the safety of its cars during collision with two-ton vehicles.

In 2005, Toyota began conducting 50% offset frontal collision tests, offset rear-end collision tests and side collision tests at 55km/h. Omni-directional collision tests are being conducted on passenger vehicle models that are new or undergo complete redesign, beginning with the Vitz launched in February 2005.

SRS Twin-chamber AirbagIn its relentless pursuit of superior occupant protection

performance, Toyota developed a two-chamber airbag to help make front-seat passengers safer. The new airbag’s two chambers create a depression in the center of the airbag upon deployment. This deployment is met by multiple surfaces, to disperse the physical impact of the airbag on the passenger. As a result, the new airbag can be expected to lessen the localized force applied to the human body immediately following deployment. The SRS Twin-chamber Airbag has been installed in the Lexus IS350 and IS250 which were launched in September 2005.

Seat with the WIL Concept

This seat structure is effective in protecting the occupant during a rear-end collision. Since the introduction of the Prius in 1997, Toyota has been using a seat structure that is based on the WIL (Whiplash Injury Lessening) concept, in which both the seatback and headrest simultaneously

cushion the torso and the head, preventing relative movement between the two. These seats prevent an abrupt change in the angle between the torso and the head, thereby reducing whiplash injury. WIL concept seats, which have passed the standards set for an increased rear-end collision speed of 50km/h, have been incorporated into all passenger vehicle models that are new or have undergone complete redesign, beginning with the new Vitz launched in 2005.

“HELPNET” Emergency Communication ServiceIn the event of a traffi c accident or medical emergency, this

service automatically, or with the touch of a button, communicates the information necessary for emergency response actions, such as the vehicle’s location and condition, to police and fi re departments via the HELPNET Center. By shortening the time between the occurrence of an emergency situation (such as a traffi c accident or sudden illness) and notifi cation, this service is designed to contribute to reducing the number of traffi c fatalities, lessening injuries, and easing traffi c congestion. HELPNET, an automatic notifi cation system linked to the airbag, was installed as a standard feature on the next-generation telematic service* “G-LINK” installed in the GS430 and GS350 launched in August 2005, the IS350 and IS250 launched in September 2005, and the GS450h launched in March 2006.

*Telematic service: Information-providing service mainly targeted at automobiles

http://www.helpnet.co.jp/ (Japanese only)

Pedestrian Injury Lessening BodyToyota uses this type of car body in order to reduce the

injury to a pedestrian during an accident. Impact-absorbing structures in the hood, the fender, and the areas around hinges and windshield wipers are used to help reduce the impact to the head of the pedestrian, while impact-absorbing bumpers help reduce the impact to the legs.

SRS twin-chamber airbag

Test vehicleTwo-ton vehicle

Two-ton vehicle

Two-ton vehicle

Frontal collision

Side-on collision

Rear-end collision

Omni-directional Compatibility

Enhanced WIL concept seat

HELPNET Service Flow

45 3

HELPNET Center

Emergency1

Airbag-linked type One-touch type

One-touch advisory issuance

HELPNET button

Advisory2

When an airbag is deployed, an advisory is automatically sent out.The occupant can also simply press the HELPNET button to issue an advisory.

Rescue vehicle dispatchedto the accident site

Advisory relayed toa rescue vehicle

HELPNETHELPNET

64 Sustainability Report 2006

Social Aspects Global Society/Local Communities

Initiatives Designed to Educate People in Traffi c Safety

Since the 1960s, Toyota has been actively engaged in wide ranging activities designed to educate both drivers and non-drivers in traffi c safety, including safe-driving courses and traffi c safety education for children.

Toyota Traffi c Safety CampaignToyota conducts the Toyota Traffi c Safety Campaign together

with dealers every spring and autumn, coinciding with Japan’s Nationwide Traffi c Safety Campaigns. In FY2005, the spring campaign focused on preventing accidents that could occur if children suddenly run out into the street and the promotion of the proper use of child restraint systems. The autumn campaign centered on the theme of promoting the use of rear-seat seatbelts. Toyota has been involved in these activities since 1969 and in FY2005 donated 2.67 million traffi c safety picture books and 44,000 traffi c safety storytelling cards to children entering kindergartens and nursery schools nationwide. To raise awareness related to the use of seatbelts and child restraint systems Toyota designed and distributed approximately 1.50 million special educational leafl ets.

Toyota Safety SchoolEvery year Toyota has been inviting children from kindergartens

and nursery schools in and around Toyota City, Japan to safety classes held at Toyota Kaikan Exhibition Hall. In FY2005, approximately 5,100 children from 119 kindergartens and nursery schools participated in safety classes held at Toyota Kaikan. The class was also held at the TOYOTA Safety Education Center “mobilitas” located in Shizuoka Prefecture, with an attendance of 30 children. The cumulative total attendance of children since 1975 is approximately 200,000 from 2,308 kindergartens and nursery schools.

Toyota Child Safety CommunicationBeginning in 2000, Toyota has been conducting the Toyota

Child Safety Communication course in cooperation with organizations such as the NPO Safe Kids Network Japan.* This hands-on course is designed to teach caregivers and expectant mothers throughout Japan the need for and proper use of child restraint systems. By the end of March 2006, a cumulative total of approximately 1,600 people had attended the course.

*Safe Kids Network Japan:A nationwide organization of obstetricians and pediatricians that promotes educational activities for preventing accidents involving children

Storytelling cards and picture books distributed in FY2005

Safety class held at Toyota Kaikan (Jan. ’06)

Toyota Driver Communication at “mobilitas” In Focus

Toyota has been conducting unique nationwide safe-driving courses called Toyota Driver Communication, which were begun in 1987 with the goal of reducing the number of accidents involving young drivers. In April 2005, Toyota completed the construction of the TOYOTA Safety Education Center “mobilitas,” where Toyota Driver Communication courses are offered on a regular basis.

The largest facility of its kind in Japan, “mobilitas” encompasses a total area of 130,000m2 and is located inside Fuji Speedway in Shizuoka Prefecture. It is complete with a large fl at course, a circuit with a 35-degree bank, a straight low-resistance course,* and a winding low-resistance course. With highly skilled Toyota test drivers as instructors,

students can safely experience the performance of vehicles at their limits through such exercises as blind-spot checking, high-speed full braking, and driving and braking on a low-resistance road surface. In FY2005, 5,000 drivers attended classes at “mobilitas.”

“The class was very useful because we learned a lot of things we had never learned at regular driving schools, such as driving priority, that is, safety fi rst and then smooth and speedy operation, and quick actions to take during emergencies. I hope to attend a class here again,” says Ms. Michiru Tsuneoka who took a class at “mobilitas.”

*Low-resistance course:A road purposely designed with a low coeffi cient of friction to create a slippery surface

High-speed, full braking exercise

Michiru Tsuneoka displaying her certifi cate of completion

http://www.toyota.co.jp/mobilitas/ (Japanese only)

Child Safety Communication course

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Policy Suggestions toward Improving the Traffi c Environment

Reducing the number of traffi c accidents and building safer traffi c environments requires the joint efforts of governments and industries. Toyota has been actively making policy suggestions to various governmental agencies through the activities of the Japan Automobile Manufacturers Association (JAMA).

In FY2005, Toyota made suggestions through JAMA related to the creation by the Japanese government of the Eighth Basic Traffi c Safety Plan (FY2006 - FY2010). These suggestions focused on strengthening various areas to cope with the aging population, and called for the following measures:1) Traffi c environment: Further improvements in traffi c safety-

related infrastructures, and incorporation of community residents’ opinions

2) People: Enhancements to traffi c safety education of senior citizens and high school students

3) Vehicles: Support of widespread use of safety equipment, and further enhancements in accident analysisToyota will also continue distributing the teaching materials

created by JAMA for high school teachers (Safety Action 21).

Intelligent Transport Systems (ITS)ITS is a new system which views people, roads and vehicles

holistically and attempts to construct a transportation system that is safe, convenient, and effi cient using cutting-edge communication technologies. Toyota is developing ITS from a wide range of perspectives, including “Increasing vehicle functionality,” which involves improving both the attractiveness of vehicles and the joy of using them; and “Enhancing transport systems,” which involves achieving the smooth and effi cient movement of people and goods while creating a safe traffi c environment.

Developing ITS requires the fusion of a wide range of technologies that go beyond the traditional framework of car making, including sensing technologies, telecommunication technologies, and information processing technologies. Therefore, Toyota is participating in R&D efforts and verifi cation projects in cooperation with governments, private organizations, and academic institutions. Toyota has been a participant in the World Congress on ITS* since its inauguration, and has been leading the efforts to promote ITS, by presenting papers and exhibiting state-of-the-art ITS research results and cutting-edge technologies at the Congress sessions.

*World Congress on ITS: An international congress comprising businesses, government bodies, and academic institutions related to ITS for the purpose of discussing the commercialization of ITS technologies. The congress is held every year, rotating among Europe, Asia-Pacifi c and the Americas.

World Congress on ITS (U.S.A.) (Nov. ’05)

WBCSD Sustainable Mobility Project In Focus

The World Business Council for Sustainable Development (WBCSD) is a coalition of 180 international companies from more than 30 countries, united by a shared commitment to sustainable development via the three pillars of economic growth, ecological balance and social progress. The organization is involved in policy development and contributes to a sustainable future. The Sustainable Mobility Project (SMP) was launched by twelve automotive and energy companies. With Shoichiro Toyoda, Vice Chairman of WBCSD, as its co-chair, SMP issued “Mobility 2030: Meeting the Challenges to Sustainability” in July 2004.

Toyota (together with six other member companies of the SMP) started the Global Road Safety Initiative (GRSI) in cooperation with the Global Road Safety Partnership (GRSP), an international organization working on achieving greater road safety, and in FY2005 began developing governing structures for implementing GRSI in China, ASEAN nations, and Brazil.

In conjunction with EXPO 2005 Aichi, Japan, WBCSD held its annual council meeting in June 2005, and discussed WBCSD strategies, Asia and a Sustainable Future, and Eco Systems and Business.

Improvements in Traffi c Flows In Focus

Toyota has long sought to address the issue of rush hour traffi c congestion in the Toyota Head Offi ce area.

For example, in order to encourage employees commuting by cars to switch to alternative transportation means, in February 2003 Toyota began implementing Transportation Demand Management (TDM) measures, including the operation of commuter shuttle buses and the creation of bicycle parking lots. At present, the shuttle buses run on six routes with some 200 service runs a day and approximately 4,000 round-trip passengers. Toyota has also continued to increase bicycle parking spaces, adding about 500 since last year for a total of approximately 2,500 spaces.

In FY2004 and FY2005, Toyota participated in the Toyota City TDM Field Test, conducted by the Toyota City TDM Study Society, to improve the traffi c environment and promote changes in employees’ traffi c behaviors. As a result, the number of vehicles on the road decreased and the average speed of vehicles increased, reducing CO2 emissions by approximately 14% in FY2004 on the route from the Tomei Expressway Toyota Exit to the Toyota Head Offi ce (covering a distance of 4.2km) during morning commute hours.

Taking the commuter shuttle bus to work

66 Sustainability Report 2006Sustainability Report 2006 Sustainability Report 2006

Social Aspects Global Society/Local Communities

Social Contribution Activities

Seeking to contribute toward a prosperous society and its sustainable development, Toyota has been engaged in various social contribution activities with the goal of becoming “a good corporate citizen of the world.”

The Corporate Citizenship Division was organized in January 2006 as a specialized division to focus on corporate social contribution activities. The 80-some employees of the Division, in collaboration with in-house and external organizations, are charged with the following objectives: 1) Integrate corporate social contribution functions across the

company; oversee corporate social contribution activities both within Japan and overseas.

2) Plan and carry out proactive programs; promote volunteer activities.

3) Operate facilities such as the Toyota Automobile Museum.The Corporate Citizenship Activity Committee, chaired by

the company president and comprised of relevant directors acts as the highest level decision-making body in this area. The Committee works to actively promote corporate social contribution activities using Toyota technology and expertise in response to societal needs in a variety of fields, with a particular focus on environmental issues, traffic safety and education.

Basic Policy on Social Contribution Activities

Objectives

Toyota Motor Corporation and its consolidated subsidiaries (referred to collectively as “Toyota”) vigorously promote social contribution activities in order to contribute to the development of a prosperous society and to promote its continuous development.

Stance

Toyota will promote the development of human resources, who will lead the next generation, and will engage in social contribution activities that will lead to fundamental solutions to a variety of social issues, cooperating with a broad segment of society and using its resources effectively to engage in social contribution activities.

Employee involvement

Toyota supports volunteer social contribution activities by its employees as members of society.

Information disclosure

Toyota discloses the results of social contribution activities in an effort to disseminate information broadly throughout society and to contribute to social development.

Global development

Toyota has a shared global Basic Policy on Social Contribution Activities and conducts those activities according to local conditions in each country and region.

Corporate Social Contribution Activities in FY2005

Corporate social contribution activities by Toyota affiliates worldwide in FY2005 are as shown below.1

Education Toyota supports the implementation of educational programs

on a global scale that will develop future leaders. In China, Toyota holds Japanese language classes at Jilin

University and Tianjin University and special classes such as internships at Toyota affiliates. It has also set up scholarship programs at 13 universities, including Tsinghua University and Peking University to support education in China.

In Japan, Toyota has been running a program called “Scientific Jack-in-the-Box! The Why/What Lecture” every year since 1996, which helps students appreciate the mysteries of science and the joy of making things. Toyota sends employee volunteer lecturers to hold programs such as making hovercrafts and automated toy cars. In FY2005, 23 such programs were held in 11 prefectures.

Also, in April 2006, Toyota established the Kaiyo Academy in collaboration with the Central Japan Railway Company, Chubu Electric Power Co., lnc, and other companies. The new school aims to “Create confident personnel with strong ideals, who can lead Japan in the future.”

Traffic SafetyToyota is promoting comprehensive measures geared towards

the total elimination of traffic casualties by viewing people, vehicles, and the traffic environment as an integrated whole.

Currently, of the 280,000 Brazilians living in Japan about 60,000 are of school age, many of whom face language barriers. In 1999, Toyota established the Auto Technician Course for Brazilian Residents of Japan, within the Toyota Technical College Nagoya.

The course is taught in Portuguese and is designed to help Brazilians find employment once they return home to Brazil. So far, 122 students have graduated from the course and 19 are currently enrolled (as of the end of March 2006).

Fourth semester student Carlos Teruo Nakatsugi won the Brazil Toyota Workmanship Contest and returned to Japan in April 2005 for an international gathering of regional winners. The students enrolled in the program during his visit were inspired by his success. “I’d like to work to become like Carlos, refine my skills in Japan, then return to work in Brazil.” (Program student Adriana Kaetsu)

Please see pp.62 - 65 for further details on Initiatives toward Improving Traffic Safety

President Cho (current Chairman) and Carlos Nakatsugi (Apr. ’05)

Program student Adriana Kaetsu (in front)

Training Brazilians Residing in Japan to Become Technicians In Focus

1. On a consolidated basis, including Toyota Auto Body Co., Ltd. and major subsidiaries.Results for overseas affiliates have been calculated in Japanese yen based on the average exchange rate for FY2005

2. Facilities whose operations and objectives cover more than one area have been included in “Other”

Other 2

Social welfare Local communities

Educatioin

EnvironmentTraffic safety

Arts and culture

16.8billion yen

Activities by Field of Contribution in FY2005

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Social Contribution Activities

The EnvironmentToyota is committed to making social contributions in the

area of the environment as a step towards realizing sustainable development of society and the planet.

Creating Sustainable Mechanisms to Achieve Harmony between Humans and Nature

The Fengning Man Autonomous County of China’s Hebei Province is located about 180 kilometers north of Beijing. It is a region where excessive grazing and deforestation have created pronounced desertification. Toyota has been working with the Chinese Academy of Sciences, the Hebei Province Forestry Bureau and the NPO Green Earth Center to support a wide variety of desertification prevention projects.

The projects have focused on measures to stop excessive grazing and deforestation, the most significant causes of desertification. Fruit trees and medicinal plants are being planted to create a reforestation model aimed at achieving economic independence for the local communities.

By FY2005, 2,174ha of forest had been planted, and plans call for forestation of the entire area of 2,500ha to be completed during FY2006. The program has resulted in environmental improvements such as revegetation and sand stabilization. A farmer who is using the grass pastures planted around the reforested areas to raise dairy cattle explains “I’m happy that we’re now able to produce milk every day. I’m hoping to increase the number of dairy cattle I have in place of goats, which are the cause of excessive grazing.” Also, local citizens are looking forward to the fruit and herbs that will be harvested in the area.

Toyota hopes that this model will continue to be used in this region as well as in other regions.

Toyota Environmental Activities Grant ProgramThe Toyota Environmental Activities Grant Program approved

a total of approximately 170 million yen for 25 projects in FY2005 centered on the theme “Environmental Technology and Human Resource Development Contributing to Environment Revitalization and Conservation.” This year, in addition to the original category of “general grants,” a new grant category, “small-scale grants,” was established for activities solely within Japan to support an even larger number of organizations and groups. The program’s selection committee, consisting of a group of experts from Japan and elsewhere around the world, judged the 556 entries on criteria such as appropriateness of the projects and continuity and future development. Twelve projects were selected for the “general grants” category and thirteen for the “small-scale grants” category. Also, site visits were conducted for past projects that were awarded grants to follow-up on their progress.

The Toyota Environmental Activities Grant Program was launched in commemoration of TMC’s receipt of the Global 500 Award,* in 1999, from the United Nations Environment Programme (UNEP). Since it began in FY2000, 89 projects in 33 countries have received a total of about 1.08 billion yen worth of funding.

*Global 500 Award: Established by UNEP to recognize individuals or organizations that contribute to greater environmental protection or improvement in terms of sustainable development (1987 - 2003)

Revegetated pastureland dotted with poplar trees

A project in Indonesia that received a grant in FY2004

In April 2005, Toyota opened the TOYOTA Shirakawa-Go Eco-Institute on land it owned in the village of Shirakawa in Gifu Prefecture. This village of houses with thatched roofs built in the style of traditional Japanese gassho architecture is registered as a World Heritage site. The school, which can accommodate up to 100 overnight guests, offers an ideal location in Shirakawa-Go, which boasts a rich cultural heritage, and among abundant natural environment at the foot of Mt. Hakusan for both children and adults to experience symbiosis with nature. The Eco-Institute programs are based on hands-on learning with regard to experiencing nature, environmental technologies, and traditional culture to promote the restoration and preservation of the environment.

Since the school opened one year ago, it has welcomed 14,000 students. A junior high school student from Gifu Prefecture who

Some of the FY2005 Awardees of the Toyota Environmental Activities Grant Program (“General grants” Category)

Project title Implementation site

Building Local Capacities for Community Based Watershed Management in Apolobamba Protected Area, Bolivia Bolivia

Sustainable Energy from Rural Landscape in the White Carpathians, Czech Republic Czech Republic

Environmental Orientation to School Education and Development of Community Based Environmental Technologies India

Sustainable Environmental Action through Participatory Learning in Chilika Lagoon, Orissa, India India

Asia ESD Promotion Projects — Establishing a website for the exchange of information on exemplary ESD promotion project implementation cases and the development of a handbook for project implementation practices

Japan/otherAsian countries

Environment Conservation and Cooperation with Residents in the Surrounding Areas of the Natural Reserves Madagascar

Establishing the Fisherfolk School towards Community Based Coastal Resource Management in the Tañon Straits, Philippines Philippines

Agriculture and Housing in an Environmentally Friendly Design of Settlement Slovak Republic

participated in a program at the school in August 2005 said, “It was fun to experience nature first-hand by making lots of things out of wood and leaves.” The school has divided the year into the 24 almanac-based seasons to create their “Programs for 24 seasons.” In spring, students experience a swamp walk in the small rivers formed from melting snow, while the summer program includes Gifu Butterfly watching. The school plans to continue to develop and expand these kinds of programs to experience the seasons and learn from nature. Junior high school students experiencing

a nature education program

The TOYOTA Shirakawa-Go Eco-Institute In Focus

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Social Aspects Global Society/Local Communities

Culture and the ArtsPassing down the Culture of Making Automobiles and Monozukuri

The Toyota Automobile Museum (opened in 1989), which introduces visitors to the history of automobiles, and the Toyota Commemorative Museum of Industry and Technology (opened in 1994 in collaboration with the 13 Toyota Group companies) have permanent exhibits that allow the public to learn about the culture of making automobiles and monozukuri (making things). They also hold a variety of special exhibits and manufacturing events. During EXPO 2005 Aichi, Japan, a total of 570,000 people visited these two facilities.

The ArtsIn FY2005, the Toyota Commemorative Museum of Industry

and Technology held the “Toyota Collection — Foundations of Monozukuri. Innovation in Japan.” The exhibits included science and technology materials from the Edo and Meiji periods, such as “Yumihiki Doji,” an automated arrow shooting windup doll and an “Elekitel” (battery powered electricity generator). It was successful in sparking an interest in manufacturing

among many visitors. In an effort to assist amateur music events, Toyota began

sponsoring the Toyota Community Concerts in 1981. The concert, which turned 25 this year, has been held over 1,100 times in 128 municipalities in 44 prefectures. More than 900,000 people have attended the concerts to date. In FY2005, 34,000 guests attended 37 concerts in 19 prefectures.

A separate program called “Toyota Children Meet Artists,” started in January 2004, sponsored a workshop for children in Okinawa in collaboration with the NPO Artist’s Studio in a School (ASIAS) in which three artists worked with the children.

Volunteer ActivitiesThe Toyota Volunteer Center was established in 1993 to

support the many volunteer activities conducted by Toyota employees. Today, the Center still continues to provide information to volunteers with over 24,000 participants active in FY2005. The “Toyota Group Disaster V (Volunteer) Net” was established by the Center in 2003 for the purpose of aiding the recovery of disaster victims and areas stricken by natural disasters. About 300 people participated in the hands-on experience events held by the Center in FY2005.

EXPO 2005 Volunteer ActivitiesThe Toyota Volunteer Center was able to gather together

853 employees, family members and former employees to volunteer at EXPO 2005 Aichi, Japan. Volunteers provided information, conducted patrols and cleaning, and offered assistance at the lost children center. Over 70% of the participants were volunteering for the first time. One volunteer commented, “I was able to teach a lot of foreign visitors about Japanese culture. It was a fun experience.”

Children and Other Victims of the Chuetsu Earthquake Invited to EXPO 2005

The Toyota Group Disaster V Net collaborated with the Aichi Chuetsu Support Network, composed of a variety of NPOs, to invite about 90 children, parents and teachers from the Chuetsu earthquake disaster region to EXPO 2005 during August 28 - 30. It was a well-needed break for the victims and an opportunity to provide them with dreams and hope for the future.

Volunteers helping with baby stroller rentals (Aug. ’05)

Victims of the Chuetsu Earthquake who were invited to EXPO 2005 (Aug. ’05)

Concert held at a hospital (Apr. ’05)

Since 2002, the Tokyo Head Office gymnasium has been made available free of charge to young performers of contemporary dance who have difficulties finding a place to practice. This and the Toyota Choreography Award (established in 2001 to discover and foster choreographers who will be the driving force behind the next generation of dance) are two examples of how Toyota supports the arts and culture.

Gymnasium Made Available forDance Practice In Focus

Professional dancers rehearse at the gymnasium

Toyota Automobile Museum Toyota Commemorative Museum of Industry and Technology

Please see p. 76 for further details on Toyota Information Centers

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Environmental and Social Contribution Activities Conducted on the National and Regional LevelsTMT, ThailandEnvironmental initiatives and social contribution activities such as a national campaign to help prevent global warming and projects to protect mangrove forests are being carried out. With participation from employees, the scope of these activities is expanding.

Toyota Motor Thailand Co., Ltd. (TMT) engages in environmental and social contribution activities on both the national and regional levels in its pursuit of becoming the most respected company in Thailand. On the national level, TMT is conducting the Stop Global Warming Campaign. Thailand is not subject to greenhouse gas reduction targets under the Kyoto Protocol, but it has ratified the protocol and is undertaking voluntary reduction measures. TMT seeks to be an environmentally advanced company and is implementing the Stop Global Warming Campaign in cooperation with the Thailand Environment Institute, an NGO that addresses environmental issues. A kick-off ceremony was held in August 2005. In October 2005, teachers and students from 25 schools around the country were invited to attend a camp where they learned about global warming and explored solutions. One camp participant had this impression: “At the camp we not only learned about methods of preventing global warming, we did a lot of fun activities.”

In response to the camp, 25 cities in five regions conducted a competition regarding global warming prevention activities. An awards ceremony was held with all 2,000 participants and HRH Princess Ubol Rattana in attendance. TMT will also create a website on measures to help prevent global warming.

The Environment

As part of its regional activities, TMT contributed to the establishment of the Bang Pu Nature Education Center on the Bang Pu coast about 20 minutes’ drive from TMT. This project was conducted in cooperation with the Royal Thai Army in commemoration of Her Majesty Queen Sirikit’s 72nd birthday. The project is intended to protect mangrove forests, which are declining as a result of shrimp cultivation and other factors.

The Center, which opened in 2004, is operated by WWF Thailand. TMT cooperates with the preparation of displays that focus on birds as well as the construction of wooden causeways and waterways. Thitivuth Koachasarnseen, Head of the Bang Pu Nature Education Center and a member of WWF Thailand, says with enthusiasm, “This project would not have been able to move forward if it were not for the support of Toyota. In addition to funding, Toyota has provided information on waterway designs for supporting water cycles, and its employees have participated in tree planting activities. This is just a small regional project, but we hope to turn this cooperative project with Toyota into a model for future WWF Thailand activities.”

In addition to this, mangrove forests have proven water-cleansing effects, and as a part of its contributions to the local community, TMT employees are also involved in transplanting seedlings to help restore mangrove forests. In October 2004 and in February 2006, some 600 people, comprising of employees and their families, planted some 20,000 mangrove seedlings. The experience of planting the seedlings was a good opportunity for the employees and their families to appreciate the importance mangrove forests.

Examples of Overseas Initiatives

TMT employees plant mangrove seedlings

Thitivuth Koachasarnseen, Head of the Bang Pu Nature Education Center (left) and Dr. Sitanon Jesdapipat, Country Director, WWF Thailand

Children participating in theStop Global Warming Campaign

Awards ceremony for the competition regarding global warming prevention activities(Center: HRH Princess Ubol Rattana)

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Examples of Overseas Initiatives

Greening of 715 School Grounds NationwideTCI, Canada

Since 2000, Toyota Canada Inc. (TCI) and its dealers have worked with the environmental NGO Evergreen and established the “Toyota Evergreen Learning Grounds Program.” Canadian school grounds are too often covered solely by asphalt or turf, and surrounded by chain-link fencing. TCI’s greening program is an effort to transform these barren school grounds into healthy, natural and creative outdoor classrooms. Schools that have applied for participation in the program are provided with educational materials, tools, funding and hands-on expert assistance. The children themselves are involved in plant selection and garden design, planting a range of vegetables, berries, and flowers. Schools are encouraged to use Evergreen’s online Native Plant Database to search for species adapted to local conditions.

Dealers are also directly involved in the project by making vehicles available and through other activities. In 2005, 92 dealers were matched with 57 schools of the 126 schools funded. After school ground greening has been completed, children can sit in the soothing shade of tall maples, jump between the sturdy rocks of an outdoor classroom, and observe the progress of a ladybug along a

dogwood branch. To date, 715 schools and some 521,900 people have participated in the program.

Supporting Exhibits Highlighting the Importance of WaterTMMK, U.S.A.

Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) recreated a stream, the Toyota Living Stream, as an exhibit at the Salato Wildlife Education Center, operated by the Kentucky Department of Fish and Wildlife Resources, in 2003. In the man-made stream stocked with native fish and surrounded with native vegetation is a glass-walled section under a waterfall where visitors can observe fish in a pseudo natural habitat. The exhibit overall is an opportunity to witness biological interdependence in and around the stream. Also on display are explanations of water-quality indicators and suggestions for ways that consumers can help maintain sound water resources. The Toyota Living Stream has become a chief attraction at the Salato Wildlife Education Center.

As one of the largest Toyota plants in the world, TMMK uses a large amount of water in its production processes. Protection of water resources has always

been a core theme at TMMK and the company has been conducting activities with the goal of reducing consumption by 16% by 2009. This also led the company to sponsor the Living Stream. Company employees and their families continue to support the Salato Wildlife Education Center in diverse ways by doing maintenance and cleanup work and also building hiking trails. “We hope that the Center will be able to function in the future without outside financial assistance,” explains Kim Menke, the manager of community relations at TMMK. The Toyota support has attracted the attention of other prospective corporate sponsors.

The Environment

The Environment

The man-made Toyota Living Stream TMMK employees volunteer

their time and energy

Children themselves are involved in the greening process

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TME Conducts the Road Safety Tour Through Europe 2005 with European Red CrossTME, Europe

Toyota Motor Europe (TME) has been supporting the European Red Cross Road Safety Campaign since 2003. The campaign aims to contribute to a reduction in the number of people injured and killed in road traffic accidents by raising awareness of road safety and promoting first aid skills. In March 2005, TME provided four Corolla Verso vehicles with special specifications for use in the Red Cross Road Safety Tour throughout Europe 2005 under the slogan “One Life. Keep It.” The four campaign cars started their tours simultaneously on June 13 from Greece, Malta, Poland, and Portugal with 24-hour support from a coordination team. Four teams of drivers covered a total of 55,000km on four different routes through 24 nations and ended the tour with the four vehicles converging in Brussels. Throughout the tour, Toyota affiliate companies from more than 10 countries participated in the campaign by holding events for children and local residents, giving demonstrations on initial first aid techniques, and emphasizing to participants the importance of initial responses following a traffic accident. One tour driver commented, “We were welcomed in every

country we visited and children understood clearly the messages of the campaign.” One 13-year-old participant said, “If a friend were hurt in a traffic accident, I’m sure I’d be able to help.

Environmental Protection Awards for Youth CreatedTMCI, China

Toyota Motor (China) Investment Co., Ltd. (TMCI), in cooperation with TMC and the All-China Youth Federation created the Toyota Environmental Protection Aid Program for China’s Youth in 2005. The program is intended to support environmental preservation activities and to encourage such activities by widely disseminating information concerning the work of the award recipients. Thirty different projects were granted awards in 2005, including activities designed to encourage the use of improved technology for methane gas tanks and

preservation of the Poyang Lake wetlands in Jiangxi Province by youth volunteers.

Recipients receive a grant and are also invited to travel to Japan to observe Toyota’s environmental activities and enhance communication with Japanese environmental NGOs. One recipient commented, “Chinese youth are very passionate about environmental protection and have ideas and dreams, but in many instances they are unable to implement them because of a lack of funding. With this grant, I feel that I can make my dreams come true.” A voluntary network has also been created among award recipient groups, leading to further promotion of environmental preservation activities in China. The program will be conducted through 2007.

The Environment

Traffic Safety

Examples of Overseas Initiatives

Corolla Verso vehicles with special specifications sport the slogan “One Life. Keep It”

The awards ceremony of the Toyota Environmental Protection Aid Program for China’s Youth

Award recipients observe environmental activities at a Toyota dealer

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Examples of Overseas Initiatives

Traffic Safety Education Program Aimed at First-year Elementary School StudentsTMV, Vietnam

Vietnam has a population of 80 million people with ownership of 700,000 automobiles and more than 17 million motorcycles. Underdeveloped road infrastructure, however, means traffic-related injuries and fatalities have increased to more than 30,000 people annually. This makes traffic safety a pressing issue. In the past, some companies conducted traffic safety campaigns on a piecemeal basis, but there were no national activities. Toyota Motor Vietnam Co., Ltd. (TMV) used the establishment of the Toyota Vietnam Foundation (TVF) to launch a Traffic Safety Education Program in October 2005 for all 1.6 million first-year elementary school students nationwide. TMV has created a special booklet on road safety starring the popular cartoon character Pikachu to help get across the importance of the basics of road safety such as observing signals and looking both

ways carefully before crossing streets. As of May 2006, 1.6 million booklets, more than 14,000 VCDs, and 14,000 teacher’s manuals had been distributed nationwide. School visits by Pikachu himself and other grass roots activities are also carried out all over the country. More than 166,000 students at 153 schools have participated in the program to date. Traffic safety is also being implemented for teachers from elementary schools in 64 cities and provinces through national and local level seminars. “This is an excellent program that I wish could be used not just for the first-year students, but for older students as well,” comments one teacher. The program will run until 2008.

Working together with an NGO to Implement Driver Skills Program Targeted at High School StudentsTNZ, New Zealand

New Zealand has a high road accident and death toll compared to its small population, and accidents among teenagers are a particular issue. Given this situation, Toyota New Zealand (TNZ) has been working with the NGO Prodrive Driver Education Trust since 1994, implementing the free ‘Prodrive’ driver skills program targeted at high school students. The program improves driver awareness, enhances driver skills and car control, as well as anticipation of and reaction to road hazards. Volunteers are recruited from local car clubs who are approached by Prodrive as it conducts its courses around the country. These volunteers are trained by the Prodrive coordinators to assist students with the practical driving component of the course. Prodrive coordinators visit 95% of New Zealand high schools where they conduct a 50 minute classroom theory session followed by two hours of in-car practical modules. The practical sessions cover driving techniques to enhance vehicle control in emergencies or other situations when the driver may experience panic.

TNZ has provided program funding and a fleet of 12 ‘Signature Class’ vehicles, and also covers the cost of servicing the cars. TNZ also provides a dedicated staff

member to liaise between the partners and ensure the program operates smoothly, and is helping to modernize the classroom presentations with video and PowerPoint slides. Since the program’s inception, some 40,000 high school students have undergone training. One such student, Sam Howell, wrote in a thank you email, “I am definitely going to encourage all of my friends to participate if they get a chance, because not only was it helpful but it was quite a bit of fun!”

Traffic Safety

Traffic Safety

Traffic Safety Education Program for children

A group of Prodrive participants with their instructor

Special booklet on road safety distributed to children Children enthusiastically answering questions

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Providing Periodic Healthcare Service in Poverty-stricken AreasTMP, The Philippines With cooperation from local governments and pharmaceutical companies, TMP has been implementing an annual healthcare service in poverty-stricken areas since 1992. The program has helped raise awareness regarding healthcare and is the first step towards ensuring proper health management.

Toyota Motor Philippines Corporation (TMP), through its charitable foundation Toyota Motor Philippines Foundation, provides a periodic healthcare service that includes health management guidance known as the Medical and Dental Outreach program. The program is implemented twice a year—once near the company’s plant in Santa Rosa and once in Paranaque City, with cooperation from the municipal government, local hospitals and pharmaceutical companies. Approximately 1,500 to 2,000 children and adults from poverty-stricken areas meet with physicians for diagnosis and treatment. Between 1992, when the Medical and Dental Outreach program was launched, and 2006 about 78,600 people have received treatment.

More than 100 volunteers, including TMP employees, physicians, nurses, dentists and employees of pharmaceutical companies, participated in the 35th outreach event held in July 2005. Toyota Motor Philippines Foundation allocates the funds for the program. Meanwhile, the two cooperating pharmaceutical companies supply medicine free of charge. TMP also furnishes two vans outfitted as mobile medical centers for taking X-rays and conducting blood tests.

Municipal officials determine the degree of need of patients and distribute “participation cards.” Patients use transportation provided by the cities to travel to the local elementary schools and other sites where the program is carried out. Most of the patients might otherwise never receive care from healthcare professionals. The patients include numerous children who have colds, most of whom

display alarming symptoms of malnutrition. Parents bring many children for treatment of parasitic diseases. Physicians also perform simple surgery as necessary at the outreach sites. Patients diagnosed with serious health problems receive referrals to hospitals.

Hon. Arlene Arcillas-Nazareno, City Vice-Mayor of Santa Rosa, says that when the poor go to see a doctor, they lose an entire day’s income. As a result, they neglect health management and fall into a vicious cycle. This program is the first step in generating higher levels of awareness regarding health management.

Inadequate healthcare for the economically disadvantaged is an especially serious social issue in the Philippines. The Medical and Dental Outreach program was begun with an emphasis on social contribution empowerment. Dr. David Go, President of the Toyota Motor Philippines Foundation explains, “We’d rather help people help themselves than simply give money. All of this depends, however, on people being healthy enough to take advantages of opportunities.” The program is thus an important contribution to medical care in the communities that TMP serves.

Examples of Overseas Initiatives Development of Human Resources

Healthcare service for children

Hon. Arlene Arcillas-Nazareno (left), City Vice-Mayor of Santa Rosa and Dr. David Go, President of The Toyota Motor Philippines Foundation

Eye tests are also conducted

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Development of Human Resources

Supporting “Hitozukuri” through “Monozukuri” Courses and Robot ContestsTMV, VietnamBased on its commitment to contribute to the development of Vietnam, TMV has created the Monozukuri course and sponsored Robocon competitions. TMV supports the development of human resources who are engaged in monozukuri and development of manufacturing technology.

To mark the 10th anniversary in 2005 of its founding, Toyota Motor Vietnam Co., Ltd. (TMV) established the Toyota Vietnam Foundation (TVF) in January 2006, based on its commitment to education, society and industry in its drive to help create a better future for Vietnam. In particular TMV aims to help improve education and training quality for the development of human resources. Among TMV’s activities are the creation of the Monozukuri course at the Hanoi University of Technology (HUT) in September 2005.

Over a period of one year, the course covers all processes of manufacturing, from the fundamentals to costs, quality, design, production management, production preparations, sales, and after-sales service, and includes class lectures and on-site observations at the TMV plant. TMC Vice Chairman Fujio Cho (currently Chairman) gave the first lecture of the course.

TMV provided lecturers and full financial resources in the first year, with the course recipients being primarily corporate leaders and HUT professors. Plans call for the HUT professors who took the course in the first year to take on the role of lecturers in the second year. In the long run, it is intended that the course will be run independently without the financial involvement of Toyota, and TMV’s plants will be made open to the faculty. TMV will continue to participate in the development of teaching materials. Dr. Le Hieu Hoc of the HUT Faculty of Economics and Management, who attended the course to learn about the Toyota Production System (TPS), commented after the course, “I felt that the TPS is a part of the corporate culture itself. Toyota is committed to educating and training its employees, and employees learn many things. Mr. Cho’s lecture was extremely practical and easy to understand,

and my doubts about the TPS have been eliminated. I will do my best to spread the spirit of the TPS in Vietnam.”

As an example of TMV’s commitment to what could be described as the origins of monozukuri, the company has also sponsored the Robocon competition in Vietnam, an event whereby students compete against each other with homemade robots, since the competition’s inaugural year in 2002. The objective is to link the creativity of youth with monozukuri. In the first year 17 teams participated; now more than 300 teams participate with tremendous enthusiasm. The competition generates considerable interest, and has become a national event.

The 2002 winner, a team from Ho Chi Minh City University of Technology, participated in the Asia-Pacific international final held in Japan, and in fact won the overall competition, quite an achievement considering this was the first time for the team to participate in the event. The Vietnamese team placed third in 2003 and took the trophy for a second time in 2004. One of the participants said excitedly during the competition, “I am participating to preserve the honor of my university.” TMV intends to continue its role as a sponsor of the Robocon competition in Vietnam in an effort to help the competition take firm root in the country, and in doing so promote the foundations of monozukuri in Vietnam.

Examples of Overseas Initiatives

TMC Vice Chairman Fujio Cho (currently Chairman) giving a lecture at HUT

Learning about the TPS

Robocon 2005

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Examples of Overseas Initiatives Development of Human Resources

Supporting Financial Independence of Women and Impoverished People The Abdul Latif Jameel (ALJ) Group, Saudi Arabia

The Abdul Latif Jameel (ALJ) Group is a Saudi Arabian corporate group that manages Toyota distributors in Saudi Arabia, Algeria, Morocco and other countries. To help eliminate poverty in the region the ALJ Group is using microfinance to extend small loans without collateral to the poor to start or expand “micro-businesses” in an effort to help them gain financial independence and improve their lives. The Group uses microfinance techniques pioneered by the Grameen Bank of Bangladesh, which has helped 2.7 million Bangladeshi families escape poverty.

The ALJ Group launched the Grameen-Abdul Latif Jameel Pan-Arab Initiative in 2003. It has collaborated with other microfinance enterprises in Egypt, Morocco and Tunisia, and serves more than 52,000 borrowers, mainly women. The Abdul Latif Jameel

Program for Productive Families was launched in 2004. It has set up six branches across Saudi Arabia and serves more than 3,000 women borrowers.

As a form of indirect microfinance support, the initiative provides training and tools to expand “micro-businesses,” and together with the Consultative Group to Assist the Poor (an arm of the World Bank) launched an Internet portal, the Arabic Microfinance Gateway, to make microfinance industry information available online.

Development of Human Resources

Toyota Production System Support Center Assists North American Manufacturing IndustriesTSSC, North America

When Toyota was established in Japan, it received extensive technology support and know-how from American manufacturers, through plant tours and the like. Interest in the Toyota Production System (TPS) grew in North America during the 1980s, and in order to make contributions as a good corporate citizen by making TPS know-how available, Toyota established the Toyota Supplier Support Center (TSSC) in Lexington, Kentucky in 1992 (the Center subsequently moved to Erlanger). TPS know-how is disclosed not only to Toyota suppliers but also to manufacturers throughout North America and improvement activities are conducted jointly. In addition, as a part of its contributions to local communities, support was provided for the improvement activities of a company that publishes Braille books and for measures to improve the productivity of a check clearinghouse. In 2002, TSSC was spun off and began providing some services on a paid basis. The objective is to train personnel in the TPS so that more companies can benefit from putting the TPS into practice.

The specific activities of TSSC are individual process improvement activities and workshop activities. Process improvement activities are carried out at the client

company’s site with the actual plant workers to conduct model and human resource development. Workshop activities use Lego simulations and case studies of workers’ actual practices to explain the TPS in easily approachable ways. A promise is extracted from companies prior to their undertaking the training: That upon implementing what they have learned, if they manage to reduce muda (wastage) and improve productivity, resulting in excess staff, that they won’t under any circumstances lay-off any employees.

Since TSSC was established, approximately 130 companies have undergone individual process improvement act iv i t ies and 2,200 persons have participated in workshops (as of end of March 2006). One recent par ticipant commented after the training, “I learned that systems should focus on people, and I am now confident that I can change work practices.”

Prince Saoud bin Abdul Mohsen (left) handing over a check to a loan borrower

and Mr. Mohammad Jameel (center), who heads the ALJ Group

The Arabic Microfinance Gateway Internet portal

A TSSC employee (right) assists in improvement activities

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Communication

Interaction with the PublicShortly after its inception and the start of operations at the

Koromo Plant (now the Honsha Plant), in November 1938 Toyota opened the plant to the public. Toyota founder Kiichiro Toyoda explained, “I plan to open the plant to the public and create access ways inside the plant for tour groups since automobiles are commonplace and having people see what we are doing will help expand knowledge about industry.”

Not only does Toyota provide plant tours but it also makes efforts to interact with customers and the community through facilities to disseminate information to the public and reflect customer opinion in the corporate stance.

In 2005, partly due to EXPO 2005, which was held in Aichi, Japan, a record 200,000 people visited Toyota plants. In addition, some 8.31 million people visited Toyota information centers.

Cumulative Number of Visitors to Amlux Reach 30-Million Mark

The Toyota Auto Salon Amlux Tokyo opened in September 1990 in Ikebukuro, Tokyo, as the largest auto showroom in Japan — the first of its kind to be built by a Japanese auto manufacturer. In January 2006, the showroom welcomed its 30 millionth visitor. The facility presents a wide variety of Toyota’s corporate activities, including display of approximately 70 vehicle models, covering all current Toyota passenger cars, as well as the Toyota F1 racing car, the i-unit, and new environmental and safety technologies.

Toyota Stakeholder DialogueToyota Stakeholder Dialogues have been held each fiscal year

since 2001 to enable discussion that transcends the borders of companies and organizations.

The Fifth Dialogue, held in January 2006, adopted “Corporate Social Responsibility (CSR) — Focusing on Environmental Issues” as its theme. About 40 participants, including 30 stakeholders representing NGOs/NPOs, academia, government and industry, along with Toyota employees and executives attended a 2-day conference. Environmental CSR topics were discussed both at the plenary session and during group discussions with several points of contention such as compatibility with societal needs, balancing CSR with corporate profit, and the importance of international standardization. Based on a clarification of different goals and purposes and an awareness of common issues, communication and cooperation were identified as further issues. Respective roles of the various sectors in promoting future CSR were also suggested.

Par ticipants expressed opinions such as, “Discussions on a common theme but involving people from different fields provided a great learning experience” and “I was able to objectively examine CSR activities that are currently being implemented.” Toyota will continue to hold such dialogues in the future.

Even after EXPO 2005 Aichi, Japan, came to an end, Toyota continued to display the future personal mobility vehicle “i-unit” and “Toyota Partner Robot,” which assists human activities, at various locations throughout the country to communicate the message of the expo. Since October last year, the i-unit was showcased at 58 sales promotion events in front of about 1.27 million people. The Toyota Partner Robot has been shown to about 30,000 people in 12 locations across Japan since 2006. Event participants have been fascinated by the technology, making comments such as “How amazing to see this up close. I feel like I’m touching the future!”

Permanent Display Locations

i-uni

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• MEGA WEB• Amlux Tokyo• Toyota Commemorative Museum

of Industry and Technology• Toyota Automobile Museum• TOYOTA Shirakawa-Go

Eco-Institute• Toyota Motor Hokkaido Inc.• Toyota Motor Kyushu Inc.• Central Japan International Airport

(Centrair)

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• MEGA WEB• Amlux Tokyo• Toyota Commemorative Museum

of Industry and Technology• Laguna Gamagori• Central Japan International Airport

(Centrair)

http://www.toyota.co.jp/en/about_toyota/facility/toyota_kaikan/exhibits/

http://www.toyota.co.jp/en/about_toyota/facility/toyota_kaikan/ plant_tour/

Toyota Information Centers

Name Details Number of visitors (2005) Location

MEGA WEB

Car theme park that allows visitors to “see, ride and enjoy vehicles.” Features about 130 Toyota models on display, a test drive course and a new Lexus Gallery.

5.61 million Odaiba, Tokyo

http://www.megaweb.gr.jp/English/

Amlux Tokyo

Showroom to spotlight Toyota’s vehicles, new technologies and environmental and safety initiatives.

1.63 million Ikebukuro, Tokyo

http://www.amlux.jp/english/floor/f1_f.shtml

Toyota KaikanPresents Toyota’s approach and activities with a focus on environment and safety-related issues. 440,000 Toyota,

Aichi

http://www.toyota.co.jp/en/about_toyota/facility/toyota_kaikan/

Toyota Commemorative

Museum of Industry and Technology

Presents the history of the Toyota Group through displays that highlight the transition in textile, automobile and production technologies.

310,000 Sako, Nagoya

http://www.tcmit.org/english/

Toyota Automobile

Museum

Focuses on the evolution of gasoline-powered vehicles from the end of the 19th century through a display of about 120 Japanese, European and American automobiles.

260,000 Nagakute, Aichi

http://www.toyota.co.jp/Museum/

Toyota Kuragaike Commemorative

Hall

Presents the keen spirit of Toyota at the time of its establishment and the heart of the Toyota Group for “making things.”

60,000 Toyota,Aichi

http://www.toyota.co.jp/en/about_toyota/facility/kuragaike/

Total 8.31 million

i-units on display at an event in front of Nagoya Station (Apr. ’06)

The EXPO 2005 Message as Communicated by i-unit and the Toyota Partner Robot

In Focus

TMC President Watanabe with the 30 millionth visitor and family (Jan. ’06)

Discussion by stakeholders (Jan. ’06)

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Examples of Overseas Initiatives

Two-way Communication with Tomorrow’s Decision MakersTMT, Thailand

Toyota Motor Thailand Co., Ltd. (TMT) opened the Style by Toyota complex in the Bangkok Siam Square in January 2006. The objective of the complex is to foster communication between the youth of today, who will be tomorrow’s decision makers, and current opinion leaders and make a contribution to Thai society by encouraging the development of young people. The complex is intended to function as a forum for discussion and debate on various issues, including the environment.

The building was constructed on the Chulalongkorn University campus in collaboration with the university, which hopes to create a “site that will enhance creativity outside the regular learning environment.” University President Khunying Suchada Kiranandana commented on the opening, “I believed that we needed a forum outside the usual university boundaries for students to study on weekends and enhance their creativity, and consequently, I am very grateful for this initiative. I recognize TMT’s tremendous commitment to human resource development, and I hope that the development of human resources will lead to the further development of Thailand as a nation.”

Style by Toyota features areas for exhibitions and events and holds events such as exhibits of design projects, based on the Yaris, created by students from four different universities. It also serves as a site to foster the creativity of students. Visitors number 900 to 1,000 each day, double the initial projections. One student says, “A cutaway model was used to show the structure of a hybrid vehicle, which helped me get a good understanding of it.”

Communication

Communication

Environmental Programs Held within TMMF Site in Cooperation with an Environmental NGOTMMF, France

Toyota Motor Manufacturing France S.A.S. (TMMF) was established in 1998 in Valenciennes, France, near the border with Belgium, as Toyota’s second European manufacturing base. Production began in January 2001, and since then TMMF has used “Green, Clean, and Lean” as its slogan to reduce environmental impact based on the Toyota Production System, which seeks to eliminate muda, mura and muri (elimination of wasteful practices, inconsistencies and unreasonable requirements).

In December 2005, TMMF concluded a three-year partnership contract with the Centres Permanents d’Initiatives pour l’Environment (CPIE Bocage de l’Avesnois), a non-governmental organization, to protect wildlife and biodiversity within the TMMF site and to create wildlife observation trails for children. The activities include surveys of wildlife within the site, development of paths for strolling through the site, and tree planting to increase bird watching opportunities. In June 2006, a Green Visit Program was begun for children. Tours of TMMF’s water treatment facilities, environmental education programs, and observation of eco-systems are also planned for ten groups of local children between the ages of 9 and 14. In

conjunction with these programs, pamphlets concerning eco-systems and bird watching games were prepared in cooperation with the CPIE, local educators, and the Ministry of Education.

Cutaway model of a Prius

The first group of local children who visited the site during Environment Week in June 2006