CSR REPORT 2015

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Contents

■Toyota Auto Body Profile

■Top Message

■Corporate Governance

■Friendly to the Global Environment

■Production Environment

■ Creating Ever-Better Cars

■Meeting Customer Expectat ions

■Creating High Qual i ty Cars

■Corporate Principles

■Environmental Management

■Product Environment

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5

7

30

33

35

9

15

8

7

■Developing Employees and Creating the Workplace

■Social Contributions 26

17

29

Editorial policyThis fiscal year marked the 70th anniversary of our founding, and based on the gratitude which we owe to our

customers and the history of our company, we endeavored to express our thanks to our predecessors and business

partners, and to broadly publicize our corporate activities over the year.

Additionally, in order to convey our efforts more easily, our activities are featured in this CSR report. Readers who

are interested in finding out more can use the click icons to access detailed information.

All opinions or concerns about this report and our activities are welcome via the questionnaire survey on the last page.

Report scope and time period

Report scope: Toyota Auto Body and consolidated subsidiaries

Reporting period: In principle, this report covers from April 2014 through March 2015; however, reporting is extended beyond March 2015 for items where progress after this period occurred.

Cars on the cover

(Re-designed model avai lable for sale January 2015）

(Re-designed model avai lable for sale January 2015） (Re-designed model avai lable

for sale October 2014）

Alphard Vellfire EsquireWheelchair-accessible specifications

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Overview

Company Name

Head Office

Established

Representative

Invested Capital

Total Sales

ManufacturingFacilities

Toyota Auto Body Co., Ltd.

100,Kanayama Ichiriyama-cho,Kariya City,Aichi Prefecture, Japan

August 31, 1945

President, Takahiro Iwase

10.371 billion yen

1,714.7 billion yen(FY2014 consolidated)

Head Office ／ Fujimatsu Plant、Inabe Plant、Yoshiwara Plant、Kariya Plant、Kotobuki New Development Center

Main Products

Vellfire Estima Voxy NoahAlphard Esquire

〔2008〕〔1990〕〔2002〕〔2001〕〔2014〕〔2001〕

Coaster Land Cruiser 200

Land Cruiser70 van

Land Cruiser70 pickupHiace Prius

〔1969〕〔1998〕〔1967〕〔1984〕〔2004〕〔1984〕

Side Lift-up SeatVehicle

Wheelchair-accessibleVehicle(Rear Lift type)

Well Carry（Special Purpose Friend-Matic Vehicle）

Freezer & RefrigeratorVehicle

Wheelchair-accessibleVehicle(Rear Lift type)

COMS

〔1994〕〔2001〕〔1968〕〔1971〕〔2000〕〔2009〕

The year when the first generation of each model was introduced is shown in [ ].

Minivans

Commercial / Commuter vehicles SUV Sedan

Special PurposeVehiclesAssisted mobility vehicles Small EV

Company Outline

Product Lineup

Related Information

Volume of sales

1945 1955 1965 1975 1985

250

0

500

750

1000

1995 2005 2014

1 9

120

434

621 617

719 711

（Thousands of vehicles ）

(FY)

Number of employees ( consolidated )

1945 1955 1965 1975 1985

5000

0

10000

15000

20000

1995 2005 2014

1000 900

4100

6900

9100

1160013400

17500

(Number of employees)

(FY)

http://www.toyota-body.co.jp/english/corporate/profile.html

http://www.toyota-body.co.jp/english/products/index.html

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Main Business Sites

Production Bases Development BasesHead Office/Fujimatsu Plant100, Kanayama Ichiriyama-cho Kariya City, Aichi Prefecture

Main ProductsEstima、Voxy、NoahEsquire、PriusLand Cruiser 70

Kariya Plant2-1, Showa-cho, Kariya City,Aichi Prefecture

Main ProductsCOMSAssisted mobility vehicles (Welcab)

Inabe Plant10, Ichinohara Inabe-cho Inabe CityMie Prefecture

Main ProductsAlphard、 vellfireHiace、Regius Ace

Yoshiwara Plant25, Kamifujiike Yoshiwara-choToyota City, Aichi Prefecture

Main ProductsLand Cluiser 200Lexus LX570（Export model）Land Cruiser 70Coaster

Development Center

Production Technology Center

KotobukiNew Development Center1-36-1, Kotobuki-cho, Toyota City, Aichi Prefecture

Inside Head office / Fujimatsu Plant

Inside Head office / Fujimatsu Plant

Domestic and Overseas Consolidated Subsidiary Companies

Domestic Consolidated Subsidiary Companies

Gifu Auto Body Co., Ltd. Tokai Utility Motor Co., Ltd.

Ace Industry Co., Ltd. Tokai Parts Industry Co., Ltd.

Toyota Body Seiko Co., Ltd.（Kakamigahara city, gifu Pref.）（Anjyo City, Aichi Pref.）（Takahama City Aichi Pref.）

（Kariya City, Aichi Pref.）（Kariya City, Aichi Pref.）TABMEC Co., Ltd.（Kariya City, Aichi Pref.）

[ ] indicates the year when the company was founded.＜＞ indicates the primary area of business.

〔1940〕

＜Manufacture and sales of automobiles and automotive parts＞

〔1954〕

＜Manufacture and sales of special purpose vehicles＞

〔1992〕

＜Manufacture and sales of seat and other parts＞

〔1974〕＜Manufacture and sales of parts, equipment, and other products＞

〔1999〕＜Manufacture and sales of stamped and sheet-metal parts＞

〔1985〕＜General maintenance of buildings and associated equipment＞

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Domestic Consolidated Subsidiary Companies Toyota Auto Body R&D co., Ltd. Life Service & Security Corporation Inatec Co., Ltd.

Life Creation Co., Ltd Life Support Co., Ltd.

（Inabe City, Mie Pref.）（Kirishima City, Kagoshima Pref.）

（Toyota City, Aichi Pref.）

（Kariya City, Aichi Pref.）

（Anjyo City, Aichi Pref.）GI Service Co., Ltd.（Kakamigahara City, Gifu Pref.）

＊A 100% wholly-owned subsidiary company of Gifu Suto Body Co., Ltd., which is a subsidiary company of Toyota Auto Body

〔1990〕＜Design and testing of automotive parts＞

〔2000〕＜Management of office and employee recreational acilities, security agency work＞

〔2000〕＜Environmental analysis and measurement certification＞

〔〕indicates the year when the company was founded.＜＞indicates the primary area of business

〔1993〕＜Operation of off-road facilities＞

〔1999〕＜Sales of nursing care supplies, home helper services＞

＜Employee recreational, plant maintenance, insurance and other services＞

〔1988〕

Overseas Consolidated Subsidiary CompaniesPT.Sugity Creatives Chun Shyang Shin Yeh

Industry Co., Ltd.

PT.Toyota Auto Body-TokaiExtrusion

Toyota Auto Body(Malaysia)Sdn. Bhd.

Thai Auto Conversion Co., Ltd.

Auto Parts ManufacturingMississippi Inc.

（Indonesia）（Republic of China (Taiwan)）（Thailand）

（Indonesia）（Malaysia）（U.S.A.）

Toyota Auto Works Co., Ltd. PT.Resin Plating Technology

（Thailand）（Indonesia）

〔1995〕〔1997〕〔2004〕＜Manufacture and sales of special purpose vehicles＞

〔2005〕＜Manufacture and sales of rubber and resin molded parts＞

〔2005〕＜Manufacture and sales of stamped, sheet-metal, and resin parts＞

〔2007〕＜Manufacture and sales of stamped, welded, and resin parts＞

＜Manufacture and sales of vehicles＞＜Manufacture and sales of resin plated parts and resin parts＞

＜Sales of assistive devices＞〔1988〕〔2013〕〔2011〕

＜Manufacture and sales of vehicles and resin parts＞

＜Manufacture and sales of stamped and sheet-metal parts, dies, and other products＞

Tab Minth Mobility EquipmentCo., Ltd.（China）

Overseas SubsidiaryRelated Information

http://www.toyota-body.co.jp/english/corporate/overseas.html

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■Top Message

Contributing to a Prosperous Society by Creating Ever-Better CarsI would like to express my thanks to everyone for their continuing understanding and support.

Toyota Auto Body was founded as a specialized truck manufacturer in 1945, and since that time we have taken an integrated approach from development to production in order to create vehicles that are always ahead of their times. Examples include the Toyoace trucks that have been described as Japan’s national vehicle, Toyota’s first global vehicle the Land Cruiser, the Hiace van that was the first “one-box” commercial minivan in Japan, and the Estima which triggered the minivan boom.

The environment surrounding our business is undergoing large changes including energy and resource problems, an aging society, and diversifying values as globalization progresses. Toyota Auto Body intends to face these issues directly and contribute to a prosperous society by creating ever-better cars.

As a manufacturer of complete commercial vehicles, minivans, and SUVs, we aim to produce vehic les that exceed customers’ expectations. For this purpose, we are dedicated to vehicle production that incorporates market needs, such as the ways our products are used around the world, the level of quality demanded by the customers, customer requests, and other market information.

The re-designed Alphard and Vellfire that were released in January 2015 were developed and produced based on our efforts to directly listen to user opinions, and have been highly popular as a true crystallization of customer needs. In order to provide mobility freedom and happiness to all people, we are now working on development and production of assisted mobility vehicles for elderly and disabled persons, and also of the COMS single-occupant electric vehicle.

Towards Creating Ever-Better Cars

(1) Meeting customer expectations

Demonstrating the features of the Voxy wheelchair-accessible vehicle (assisted mobility vehicles)

The foundation of creating ever-better cars is our people. Through personnel training programs and teamwork-building activities, we are working to create healthy and vibrant workplaces so that all of our employees can be active on the global stage as car-manufacturing professionals.

8,000 employees participated in the all-company sports day, which was held last September for the first time in 15 years. We intend to continue holding this sports day as an event where all employees work together to develop an active workplace spirit and feeling of unity.

(2) Creating ever-better cars begins with the development of human resources

All-company sports day with 8,000 employees

President

Takahiro Iwase

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■Top Message

We believe that in order to be a company which is needed by society, earning the trust of local communities is important.

At Fure-Ai Park (Fureai: interaction, Fureru: Touch and feel, Ai: love) located adjacent to the Head Office Plant that opened in May of last year, we host a rice-farming experience in which local elementary school students participate, as well as environmental workshops and other activities to improve communication with the community. We intend to continue utilizing this park as an opportunity for community interaction in the future.

Towards Creating an Ever-Better Society

(1) Social contributions

Weaving cer-emonial ropes u s i n g r i c e straw from the rice field

Preservation of the Earth’s environment is an important issue for the creation of a sustainable society. We have formulated the Toyota Auto Body Environmental Action Plan, and have set targets for each process from design to production.

Specifically, in product development we are working to develop weight-reducing technologies that will contribute to improved fuel economy, and for product designs that maximize recycling. At our plants, we are working to reduce CO2 emissions, including the installation of the latest cogeneration systems.

(2) Environmental preservationStudents experiencing rice farming at Fure-Ai Park

Building a low-carbon society

Building a recycling-oriented society

Environmental preservation and building a society that is in harmony with nature

Environmental management

Fifth Toyota Auto Body Environmental Action Plan

This year in August, Toyota Auto Body will celebrate the 70th anniversary of our founding. We are profoundly grateful to the customers who have bought and used our products and made this success possible. We would also like to sincerely thank the members of the local communities, everyone at our suppliers and affiliated companies, and our predecessors who built our company’s history.

In this milestone year, everyone in the Toyota Auto Body Group will work together to make us a business group that is even more needed by people in our society. For this purpose, I would like to ask for everyone’s continued support and guidance.

Gratitude for 70 Years of Progress

June 2015

＜70 years of progress＞

【Founded in 1945】

Toyoace（1954）

Hiace（1967）

Land Cruiser（BJ Series）（1953）

Estima（1990）

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■Corporate Principles

■Corporate Governance

Toyoda Precepts(Created in 1935)

Company Motto Fundamental Principles

1. Having harmonization with environment and open and f a i r co rpo ra te e th i cs as ou r foundation, our goal is to contribute to building a prosperous society as a trusted company in international community.

2. Placing customer as our priority first, provide “quality products” to enrich their life space by research and creations.

3. Invigorate employees and organization to develop our company culture with creativity and vitality to pursue company prosperity as well as happiness our employees.

4. By building business relationships based on mutual trust, strengthen management practices with each other, and create long-term growth and prosperous coexistence.

(Created in 1995, revised in 2004)

1. Be contributive to the development and welfare of the country by working together, regardless of position, in faithfully fulfilling your duties;

2. Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of improvement;

3. Be practical and avoid frivolity;

4. Be kind and generous, strive to create a warm, homelike atmosphere; and

5. Be reverent, and show gratitude for things great and small in thought and deed

「CSR Policy」

（Created in 1963）

Reflection should be the nourishment for the enterprising sprit, and live for the joy of diligent labor

Appreciation:

Encourage honesty and cooperation with sincerity and faith

Amity:

Stay ahead of current trend and respect ideas and time

Development:

Toyota Auto Body stands with the global view fo r research and manufactur ing wh i le contributing to society with our fine products to have unceasing advancement of business practices

The Executive Member System was introduced to define the roles of our board of directors and corporate officers. The board of directors is responsible for executive decisions and supervisory functions, and the corporate officers are responsible for business and corporate affairs. Our intention is to ensure quick decision-making for our business development strategy and to speed up our operations by reducing the number of directors.

We have also created a system for cross-divisional committee deliberations related to business and corporate affairs.

Additionally, the Audit Department for all divisions at Toyota Auto Body performs internal audits centering on the areas of compliance and reliable financial reporting. In addition, we also carry out audits which include external auditors, as well as accounting audits by accounting auditors.

In order to improve our activities related to corporate ethics, compliance, risk management, social contributions, and the environment, we established the CSR Committee, which is comprised of all board directors and auditors. We also established four committees below the CSR Committee in May of 2009 for deliberating and taking action on important issues.

Audit

Coordination

Accounting Audit

Shareholder’s Meeting

Appointment and Oversight

Audit Department

Individual divisions

Internal Audit

Corporate Officers

Board of Directors

Guidance

Report- CSR Committee- Corporate Ethics Committee- Product Environment Committee- Production Environment Committee- Social Contribution Committee

- BCM Committee- Central Safety and Health Committee- Disaster-prevention Committee, etc.

Toyota Auto Body Corporate Governance

Accounting Auditors

Auditors Report

Report

Toyota Auto Body conducts business based on the company motto and fundamental principles which carry on the Five Main Principles of Toyoda (formerly known as the Toyoda Precepts), focusing on all stakeholders in order to contribute to the development of a sustainable society.

In addition to greater efficiency, at the same time we are also working for mechanisms that ensure highly transparent management.

http://www.toyota-body.co.jp/english/csr/pdf/2015/csr_hoshin_english.pdf

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■Creating Ever-Better Cars

As we develop products at Toyota Auto Body, we imagine the smiling faces of our customers as we look to exceed expectations and deliver happiness and excitement.In order to do so, our technical development engineers travel not only in Japan but around the world to see with their own eyes and listen to the customers, and to determine how our vehicles are actually used in the markets as they carry out development.

Providing smiles to our customers through “Creating Ever-Better Cars”

Development Management HeadquartersHiroshi Ohashi,

Executive Vice President

Fundamental Thinking for Our Efforts1. Sincerely listen to the voice of our customer, and deliver products that surpass their expectations and requests from customer’s point of view.

2. Prov ide balanced products wi th des ign, marketability, performance, quality and safety.

Toyo t a Au to Body i s a comp l e t e v eh i c l e manufacturer that is involved in the overall process from design to development, and our development headquarters has unified ourselves to work on “Creating Ever-Better Cars.”

Our customers’ smiling faces

Placement Product DevelopmentMarketability

Styling Safety

Environmental performance

Quality Usability

Durability

Creating high-quality cars that provide safety and security

Safety QualityDevelopment (planning, image design, technical design)

Meeting the expectations of our customers

Creating Ever-Better Cars

From development to quality assurance

Product planning Image design Technical design Testing and evaluation Quality assurance

I n v e s t i g a t i n g h o w c u s t om e r s u s e o u r products and customer requests

Creating plans based on market investigations

Imaginative designs

Making models that exp ress the des ign image

High-quality designs

Using CAE to achieve bo th s t y l i shness and performance

Actual vehicles are produced to confirm safety performance(E.g: Collision testing)

Per formance ver ificat ion using actual vehicles based on pred ic ted usage and environmental conditions(E.g.: Snow road testing)

De l i ve r ing h igh qua l i t y to c u s t o m e r s b y m a k i n g processes easier to perform(E.g . : Mo lded head l i n ing installation)

Customer evaluations:Positively evaluated at IQS ( I n i t i a l Qua l i t y Su r veys ) conducted in the US and Japan by J.D. Power.

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We place great value on our customers’ opinions, and we carry out product development aiming to create ever-better cars that exceed the customers’ expectations. (The re-designed Alphard and Vellfire were launched in January 2015.)

Aiming to Create Cars that Exceed Customer Expectations

Meeting Customer Expectations

Working to Satisfy Every CustomerWhen developing the re-designed Alphard and Vellfire, we aimed to create better cars that exceed expectations by focusing on families with children, and by listening not only to the needs of drivers, but also of the children, elderly persons, and others who occupy the back seats.

Making best use of our customers’ valuable opinions and feedback

In response to the many different

o p i n i o n s t h a t w e r e c e i v e f r om

customers, our development engineers

travel to the markets themselves to

observe how the cars are actually used

and listen directly to the customers.

Checking customer preferences and trends regarding the feeling of front seat visibility

・Nice, large interior・The wide range of rear seat arrangements makes for improved comfort.

・Good stylish design・Visibility and field of view from the driver’s seat are excellent.・More comfortable・More storage space would be nice.・A higher-grade interior would be better.・It should be easier to get into and out of the car.・A wider front passenger seat would be a good idea.

＜Feedback from customers:＞

From the opinions we receive, we strive to identify what the customers truly want, and incorporate the results into our ideas. The ideas born from customer opinions are reproduced in the interior models. With the cooperation of company staff users and others, repeated verification is carried out as the product is created.

To exceed customer expectations

Product Planning Center

Teruji Kuroyanagi

Comment by an Alphard and Vellfire developer

There was a lot that we g a i n ed f r om c u s t ome r opinions and observing how the cars were actually used i n the ma rke t . I cou ld clearly feel the importance of the customer's perspective.

Verifying the user-friendliness of the front passenger long sliding seat

Verifying the ease of getting into and out of the car after lowering the step height

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Meeting Customer ExpectationsResponding to the request for minivan comfort on the same level as a luxury car

A new double-wishbone rear suspension was developed together with Toyota, achieved without harming the balance of a low floor and optimal seat layout. Increasing the number of spot welds and using the same structural adhesive that is used in luxury cars helped to increase body rigidity and improve riding comfort.

Increased number of spot welds

Use of adhesive

Improved riding comfort resulting from higher body rigidityNew rear double-wishbone suspension together with a low floor and optimal seat layout

Aiming to further improve on the popular design of the previous models, we adopted a package that provides a stately shape and curvy surface configuration.

Responding to requests for further style improvements

Higher hood height

Lower door bottom edge

A-pillar moved forward

Larger door panel

Larger total width and tread

Larger total length and wheel base

Old model

New model

Reduced overall height

The seat rails were connected from front to

rear, increasing the front passenger seat

movement range. This produces a seat

arrangement where the front passenger seat

can also be comfortably used in a wide

range of configurations.

Responding to requests for a wide and comfortable front seat as well as rear seats

Front passenger super long sliding seat Sample arrangement

Seat sliding distanceMax. 1160 mm

A lower and wider step Long assist grip A wider door opening

So that people can more easily get into

and out of the car, a lower and wider

step was installed. A long assist grip

was also adopted so that it can be

gripped easily by small children. In

add i t i on , the doo r open ing was

widened for even easier entry and exit.

Responding to requests for easier entry and exit

Grip length485mm

Door opening width:+70 mm compared with previous model

Step height:-50 mm compared with previous model

Step width:+30 mm compared with previous model

Even greater appeal of the re-designed Alphard and Vellfire

http://www.toyota-body.co.jp/english/csr/pdf/2015/miryoku_english.pdf

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We are pursuing safety from the two directions of helping to prevent accidents with active safety technology and reducing damage in the event of a collision with passive safety technology in order to continue providing safe and dependable cars to the customers.

For the Safety of Our Customers


Strengthening Safety Functions for Helping to Prevent Accidents (Active Safety)The re-designed Alphard and Vellfire support the driver and help ensure safety with vehicle periphery sensors and automatic brake control.

When the car is stopped in a parking lot or elsewhere, objects that are difficult for the driver to see are displayed on a monitor.

The panoramic view monitor allows the driver to check the conditions all around the vehicle from the driver’s seat.The see-through view function displays the view with a transparent vehicle body.

View from outside the car

During expressway driving, a system tracks the car ahead and smoothly brings the car to a stop

The radar cruise control (with all-speed tracking function) can maintain a suitable following distance behind the car ahead in a wide speed range from 0 to 100 km/h.When the car ahead stops, the system brings the car to a stop while keeping a suitable distance from the car ahead.

Not visible from the driver’s seat Can be seen on the monitor.

Drives at the set speed

Car ahead:No car ahead:

Tracks the car ahead in the range from theset speed to stopped Stopped

Improving Safety in Various Situations (Passive Safety)Achieving both collision safety and lighter weightA high-strength cabin is used to protect the passenger space in the event of a collision, and at the same time expanded use of high-tension steel sheet reduces the vehicle weight.In particular, 980 MPa grade and higher high-tension steel sheet is positioned optimally as the structural members

Reducing injuries to pedestrians

An impact-absorbing structure is used on the hood, bumper, and other parts in order to mitigate the impact on the pedestrian in the event of a collision.

1500MPa grade

980MPa grade590MPa grade

440MPa grade

Mitigating impact to the head

Mitigating impact to pedestrian legs

The moment when a head dummy strikes the hood

The slits on the inside of the hood deform to absorb the impact

Collision Safety Test Dept.Shinichi Yamaguchi

Comment from a collision safety evaluation team member

We completed development o f a l i g h t w e i g h t a n d high-strength body.We are confident that we can de l i ve r sa fe ty and security to customers.

Results of Programs for Creating Safe Vehicles

http://www.toyota-body.co.jp/english/csr/pdf/2015/anzen_english.pdf

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We are working on developing the most suitable products by monitoring and analyzing how our vehicles are used in countries and regions around the world using the genchi-genbutsu (going to see the actual site and actual object) approach in consideration of the customers’ tastes and conditions of usage.

Developing more Customer-Friendly Commercial Vehicles and SUVs


Incorporating the Ways Customers Use our Products around the World to Product Development

Responding to requests for Hiace improvements

The Hiace is broadly popular both in Japan and overseas. In order to meet the expectations of customers, we investigated actual vehicles in the local markets, strengthened our means of rapidly acquiring customer information, and took other steps to identify the ways the vehicles are used and requests for improvements in great detail so that we could apply them to product development.

Australia investigation: In response to numerous comments that the front passenger seat does not have enough leg room, we adopted a sliding passenger seat.

Changing to a sliding front passenger seat

Responding to requests from many Land Cruiser 70 fans

In active service around the world, the Land Cruiser 70 also has a large fan base in Japan. In response to their requests, we resumed sales of the Land Cruiser 70 for a limited one-year period. (Vehicles will be produced up to the end of June 2015.)To meet the needs of users worldwide, in addition to compliance with the latest laws and regulations, we have also carried out development aimed at improving safety.

To commemorate its 30th anniversary, we have re-introduced the Land Cruiser 70 in Japan for the first time in 10 years.

120 mm slide

（From Dec. 2014）

Semi-long van Double-cab pickup

Responding to requests for Coaster improvements

In response to customer requests obtained from local investigations in Australia, we developed large-size seats with an extra margin of space.We will continue to carry out product development that is tailored to satisfy customers’ intended requirements.

Development of new Coaster rear seats

Seat back height:+273 mm compared with previous model

Rear seat for Australia(Figure shows 2-person seat) From Jan. 2015

Investigation in Papua New Guinea: Many Coasters transporting passengers at a bus terminal

TOPICSDakar Rally 2015 We finished first and second in the Cross-Country Series Production Vehicles class with the same vehicle that our worldwide customers are driving! (2nd consecutive victory)

The Dakar Rally is another opportunity to prove the reliability and off-road performance of the Land Cruiser.

Finished first and second in the Cross-Country Series Production Vehicles class!

In this race, we use eco-friendly 100% biodiesel fuel that is refined from used cooking oil provided by people in areas nearby our company.

Product Planning CenterHisashi Takemoto

Comment from a local investigator

Our products a re used as means of transportation by customers around the world. We w i l l c on t i n ue mak i ng advances to meet customer expec ta t i ons no t on l y by increasing durability, but also by further improving safety systems and comfort.

Dakar Rally HP

http://www.toyota-body.co.jp/dakar/pc/index.html

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We are developing assisted mobility vehicles that can be enjoyed by disabled persons, as well as by elderly persons, nursing caregivers, and family members, and are also developing and providing a wide range of special purpose vehicles that are built to meet market needs.

Producing Cars to Meet the Needs of a Diverse Range of Customers Around the World


In order to satisfy our customers, we visited nursing care facilities and facilities for the elderly to see how our products are actually used and to acquire user opinions ‒ information which we apply to product development.

We are also actively carrying out activities in Japan and overseas so that more people know about these vehicles.

Assistance by nursing caregivers and facility staff

Elderly persons and caregivers on the same platform

Assisted mobility vehicles:　Providing Freedom of Mobility and Joy to Everyone

Investigating how our products are used at nursing care facilities and facilities for the elderly

Using a real vehicle to explain the characteristics of assisted mobility products to customers(Barrier-free exhibition in Japan)

Japanese and overseas promotion activities

Introducing assisted mobility vehicles to customers in China (China International Exhibition of Rehabilitation, Nursing & Healthcare)

Our subsidiary Tokai Utility Motor Co., Ltd. develops and manufactures utility vehicles to meet a broad range of needs.

Among the diverse lineup of products, the mobile sales vehicles helped to support the lives of persons affected by the Great East Japan Earthquake.

Special Purpose Vehicles:　Supporting Everyday Living Mobile sales vehicles that played an important role at

temporary housing facilities following the Great East Japan Earthquake

Visiting a temporary housing facility on high ground in Ofunato City

Full product shelves inside the vehicle

We want people to enjoy happiness and excitement during their everyday lives, and propose ideas for vehicles that can be used for multiple purposes from commuting to leisure.(Tokai Utility Motor Co., Ltd.)

For Full and Happy LivingExhibiting and introducing actual vehicles in different areas

Noah Tokimeki (excitement)(Friendly Festa)

Esquire Tokimeki (excitement)(Nagoya Camping Car Fair)

Conversion & Mobility Vehicle Center

Comment from a team member in charge of marketing for China

It is expected that the number of elderly people in China will exceed 500 million in 2020. In cooperation with Toyota, we are carrying out activities aimed at expanding the use of assisted mobility vehicles, and are working to contribute to this field in China based on the freedom of mobility concept.

Hirotsugu Okuya

Lineup of Assisted Mobility Vehicles and Equipment

Activities in China (TAMI)

Lineup of Special Purpose Vehicle Equipment

Activities of Tokai Utility Motor Co., Ltd.

http://www.toyota-body.co.jp/english/products/welfare.html

http://www.toyota-body.co.jp/english/csr/pdf/2015/TAMI_english.pdf

http://www.toyota-body.co.jp/english/products/special.html

http://www.toyota-body.co.jp/english/csr/pdf/2015/TUM_english.pdf

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We are working to develop and produce the core components for Toyota’s fuel cell vehicles that are leading the way to a hydrogen society. Aiming to achieve a low-carbon society utilizing COMS, we have begun verification testing both in Japan and overseas.

Preparing for a New Kind of Automotive Society


The world’s first 3D fine-mesh flow field that was developed by our company is a core component in the fuel cell stack of the Mirai fuel cell vehicle that was marketed by Toyota.This flow field structure simultaneously improves both drainage performance and air diffusibility, and achieves even power generation across the cell surfaces. This yields a more compact size and higher performance, with 2.2 times the output of previous products. We are a lso producing components developed us ing the or ig ina l ultra-precise stamping technology that was developed by Toyota Auto Body.

Shinkansen(Shin-Yamaguchi Station)

Shuttle bus

Home

Toyota Mirai fuel cell vehicle Fuel cell stack

Creating the Ultimate Eco-CarDevelopment and production of the core components for fuel cells

3D fine-mesh flow field (magnified view)

(Image provided by Toyota Motor Corporation)

Hanamoyu promotion specifications Rental COMS

Hanamoyu Taiga Drama HallUse of COMS for movement to historical sites and sightseeing spots around Hagi City

Grenoble, France (verification testing using i-Road and 35 COMS vehicles)

C OMS a r e b e i n g u s e d i n ve r i fica t ion tes t ing in many regions with the goal of creating a low-carbon society.

The use of COMS is also being s t u d i e d a s a m e a n s o f transportat ion to sightseeing spots located around Hagi City.

Creating a New Society that Uses COMS

Shoin Shrine

Taiga Drama Hall

Hagi Castle Ruins

Roadside Station (Hagi Seaside Market)

Kasayama view platform

Former Taro Katsura Residence/Former Yukawa Clan Residence

Birthplace and Grave of Shoin Yoshida

Tokoji Temple

★ ★

★

★

★ ★

★

★

★

Verification testing in Japan

In Grenoble, France the Cité lib by Ha:mo* verification testing program for car sharing using an ultra compact Toyota Motor EV was started in early October 2014 using 35 COMS.

Verification testing overseas

※ Joint project by Cité lib which operates the sharing business, Électricité de France (EDF) which constructs the charging infrastructure, Grenoble City, and Toyota Motor

New Business Development Div.　Naoki Yoshioka

Comment from a developer of fuel cell core components

By fur ther improving the power generation efficiency and productivity of our 3D fine-mesh flow field, we are working to improve the performance of next-generation fuel cell vehicles and contribute to their wider use.

The Path of COMS

http://www.toyota-body.co.jp/english/csr/pdf/2015/coms_ayumi_english.pdf

15


Quality is created by coordination among development, production engineering, production, and our suppliers. All Toyota Auto Body employees share and practice the Customer First and Quality First ideals with a high level of kaizen spirit. In the future, we will continue to coordinate among all areas as we work to further improve customer security and satisfaction.

Delivering High Quality Products by Putting the Customer First

Creating High Quality Cars

To set the Customer First and Quality First ideals deeply into the minds of all of our employees, we regularly conduct quality lectures and exhibit quality case studies, and provide multi-level quality training. In FY 2014, in addition to the above, we also collected letters of thanks from the customers regarding high quality car production, and sent them to all employees each month so that each employee could understand the importance of the Customer First ideal and apply it in his or her everyday work.

Putting Customer First into Practice Throughout the Company

Participants earnestly studying the case studies

Message from the president Exhibit of quality case studies

With the re-designed Alphard and Vellfire, coordination covers al l stages from the development phase to production engineering, production, and our suppliers, as we worked for improvements focused on simplifying production.

Delivering High Quality to Our CustomersHigh quality car production that extends to the development phase

On the production floor and in our offices as well, we have introduced JiKotei-Kanketsu (JKK) activities (to take full responsibility for your work and processes to prevent problems being passed on to the next process) to achieve quality improvements by striving to never inconvenience the customer (i.e., the downstream process), and being able to judge the results of your own work.Specifically, this means continuing kaizen improvements by organizing and carrying out each task from the viewpoints shown below.

Deciding procedures and creating high-quality standards for work

①First, identify the target and objective of the task.②Identify the detailed procedure for the task.③Identify the ryohin jyoken (quality points).④Carry out the task. Immediately contact your supervisor if a problem and/or delay may occur (pull the andon cord) and carry out repeated kaizen improvements.

Delivering high quality to our customers (re-designed Alphard)

Previously: Now

Molded headlining

The curtain shield airbag was installed in the ceiling by a worker facing upwards.⇒The work posture was bad, and there was the risk of installation errors.

The curtain shield airbag is integrated with the interior molded headlining, and is inserted automatically.

Work is now possible from outside t he veh i c l e , mak i ng i t mo re comfortable and ensuring quality.

Group discussion of JiKotei-Kanketsu themes

Division internal JiKotei-Kanketsu presentations

Studying improvements to work methods in small groups

Examples of department activities are exhibited, and good ideas are shared and put into practice.

「 Examples of Quality Programs: (Activities for simplifying vehicle mass production, EDER activities, customer evaluations)

http://www.toyota-body.co.jp/english/csr/pdf/2015/hinshitsu_english.pdf

16


We are engaged in purchasing activities that are based on open and fair transactions, aiming for co-prosperity based on relationships of mutual trust with our suppliers, as we work to create ever-better cars.

Working for Ever-Better Cars Production Together with our Suppliers

Creating High Quality Cars

Basic Approach to PurchasingWe provide open and fair bidding opportunities to all suppliers in Japan and overseas that would like to do business with Toyota Auto Body, regardless of their nationality, size, or lack of previous transactions.

For this purpose, we have established a Basic Purchasing Policy and engage in global purchasing activities that aim to achieve the Customer First ideal in partnership with our suppliers.

Towards creating ever-better cars

Toyota Auto Body

relatedactivities

Basic policy

New product exhibitions

Policy explanation meetings

Joint development and study groups

Open and fair

Mutual trust

Promoting localization

Strengthening planning and development capabilities

Production innovations

Expansion of overseas business

CreatingEver-Better Cars

Suppliers

When the time for a model change approaches, in addition to creating a wide range of bidding opportunities, we also hold part workshops so that suppl iers can examine the parts and understand our work on creating cars. In cooperation between Toyota Auto Body and all members of the supply chain, we are carrying out activities to develop new ideas for creating ever-better cars.

Aiming to Create Ever-Better CarsNew ideas for product development and manufacturing in conjunction with all members of the supply chain

Toyota AutoBody

Design

PE Plants

SuppliersPurchasing

Creating ever-better cars by centralizing the four key areas(Cross-functional development operations)

Part workshops for both 1st-tier and 2nd-tier suppliers

We hold the Purchasing Policy Presentation Meeting in March of each year in order to share our company’s annual purchasing activities policy with the suppliers.To make clear what we expect from our suppliers, we have created and implemented the Supplier CSR Guidelines and Green Purchasing Guidelines.

Sharing information with suppliers

Supplier exhibition

We are conducting education activities with a wide range of study meetings conducted through the Shatai Kyowakai, a cooperative meeting of suppliers. These include research meetings, exhibitions, and the Transport Study Meeting and Safety and Health Liaison Meeting that are intended to eliminate accidents.

Programs that Support Purchasing ActivitiesEducational activities using study meetings with supplier participation

Mutually sharpening our skills at the Transport Study Meeting

In order to further reinforce our system of open and fair t ransact ions and re lat ionships of mutual t rust, we ask approximately 370 suppliers to evaluate our company’s purchasing activities, and obtain opinions and requests that are applied to future purchasing activities.

Applying the results from supplier questionnaire surveys to our purchasing activities

17


In order for Toyota Auto Body to provide ever-better cars that will deliver happiness and satisfaction to our customers, we consider it important for each and every employee to grow continuously, doing spirited work in a vibrant, easy-to-work environment.In “Our Priorities”, we have collected those qualities which we have inherited from our predecessors and which we believe must be carefully preserved in our work. By understanding the spirit of these qualities and putting them into practice, we are working to develop an awareness of them through our work.

Developing Employees and Creating a Workplace for Creating Ever-Better Cars

Corporate Management Headquarters

Shinobu Ichikawa, Executive Vice President

Workplace Culture and Mindset InnovationActivities for Absorption and Establishment of “Our Priorities”In order to deepen our spiritual understanding of what is important to us, we use a daily action declaration and e-learning, and are carrying out activities to make this understanding a permanent part of our work. Similar activities are carried out at our subsidiary companies in Japan and overseas.

３３５

(D)(A)

１

Customer First

２

４

Challenge

Genchi Genbutsu

(P)

(C)

８

A Safe and Healthy Workplace

６７

PersonnelDevelopment

Teamwork

【Ｂasic MAP：Our Priorities 】

Customer FirstWe provide products and services that deliver happiness and satisfaction through monozukuri (manufacturing) to our customers, who we consider first in taking action.

Work ProcessesWe always set our targets one rank higher and challenge new issues by ourselves without feeling satisfied with current conditions.

The work process PDCA Cycle (Plan-Do-Check-Action) is essential for achieving our targets.

An Energetic WorkplaceWe create a safe and healthy workplace in which all employees are happy.

Personnel development and teamwork, the base of the individual and the organization, are made solid.

ExecuteKaizen

1.Customer First■Everything Serves Customer satisfaction■Completing Your Own Process Role

2.Challenge(P)■Benchmarks　 ■Challenges

3.Execute(D)■Being Aware of Your Own Role■Achieve Your Duty Speedily

4.Genchi Genbutsu(C)■Monitoring by Genchi Genbutsu (On-site, hands-on experience)■Repeating “Why?” Five Times

5.Kaizen(A)■Continuous Efforts for Kaizen■Learning From Mistakes

6.Personnel Development■Personnel Training ■Self-development

7.Teamwork■Cooperation and Awareness of Roles■Honesty and BAD NEWS First■Willingness to Listen

8.A Safe and Healthy Workplace■Safety Consciousness■Follow the Rules■Moral Consciousness

An or iginal poster has been created and posted by Auto Parts Manufacturing Mississippi (USA).

Overseas activities:To y o t a A u t o B od y Malaysia conducting a managerial class study s e s s i o n u s i n g t h e English version of these materials (Malaysia)

Click “Our Priorities”(Revision issued December, 2012)

http://www.toyota-body.co.jp/english/csr/pdf/2015/BasicMap_english.pdf

18


We at Toyota Auto Body are making continuous efforts toward “self-sustaining employees” , who are capable of thinking and acting independently. We have constructed a human resource education system from perspectives of the mid-to long-term. In addition, in looking toward new growth, we are making efforts to enhance on the education of professional personnel capable of being active globally.

Developing Self-Sustaining Employees with Positive Sprit to Challenge in Their Global Enfeavors

Fundamental Approaches to Human Resource DevelopmentAt Toyota Auto Body, we focus on educating

“self-sustaining employees” that allows every

single employee to have the vision and goal for

the future, and sufficiently work with positive

spirit. We are promoting individual development

with “Career Support Program” which is

designed to support employee development

accordingly to their plans.

A system to support education for individuals by unified efforts of our company, the supervisor(s), and se l f . We are p lann ing to our education from the perspectives of shor t - , m id- , and long- te rm comprising educational planning, standards, and measures.

〔Career Support Program〕

System for Promoting Individual Growth and Support for Employees

self-sustainingemployees

Skill development

MBO

CSP

(Off-JT)

OJT

Specialized training

Stratified education

Rotation

Work experienceEmployed and entering company Growth

through one’s work

Provide the opportunity to study

Our training of engineers involves lecture rooms, educational exhibits, and CAD training rooms so that our engineers can learn through experience by genchi genbutsu (going to see the actual site and actual object) and can make best use of their skills.

First-year new employee training is followed by workplace OJT and third-year beginner-level training. Beginning from the fifth year, intermediate-level training and manager training for group leaders is carried out. The use of this step-up training aims to further strengthen development abilities.

Technical Development of Professional Personnel

Vehicle disassembly training for entry-level employees

New employee CAD* training* CAD：Computer Aided Design

Learning special skills in intermediate-level training

Training involving use of on-site work for entry-level employees

Presentations given in employees’ second year

Training Professional Personnel

Engineering training was started in 2008, aiming to create the world’s top level of minivans, commercial vehicles, and SUVs.

During the first year, trainees undergo basic engineering training through vehicle disassembly training and genchi genbutsu training. In the second and later years, they undergo OJT with their mentors. The mid-level employees learn high-level production engineering at the Engineer School.

Training, presentations, and other programs are also carried out at key milestones, as we work to strengthen production engineering abilities on a daily basis.

Production engineering professionals

Improve sense and sensitivities of managers.

Advance from part engineers to vehicle developers.

Become independent after 3 years. New employee

training

Beginner-level training

Intermediate-level training

Manager training

1. Design information system (beginner)2. Steel sheet and resin material engineering--- others

1. Vibration & noise2. Collision safety3. Human engineering--- others

1. Study from group leader handbook(At time of new posting)

2. Learning through reflecting on past actions--- others

Entry-level employees Beginner-level engineers(years 1 to 3)

Intermediate-level engineers(years 4 to 8) Manager

Development Engineer Training System (Step-climbing training table)

Training of new group leaders

19


We conduct education and training for engineering

staff in order to gain the confidence and trust of the

customers. We also actively carry out programs for

refining and transferring skills, aiming to further

improve our abilities.

Production professionals

Training conducted by full-time trainers Fighting-Spirit Award Winner(Automotive Sheet-Metal Working Compettion)Jin Tanaka


Before employees are assigned to a workplace, they undergo basic knowledge training and basic skills training that are conducted by full-time trainers.

We are also challenging ourselves to enter the National Skill Olympics as a way to rapidly train the personnel who will become the future workplace leaders.

Educating new employees

Practical training and knowledge-based training are carried out according to the employees’ qualifications in each job type: stamping, body work, painting, molding, assembly, logistics, and maintenance.

Mid-level employee training

The company-wide skills competition is a large opportunity for refining skills. Employees from subsidiary companies in Japan and overseas also participate in this competition, with the members of the Toyota Auto Body Group competing with one another as they aim for skill improvements.

Refining skills

We are also working to train local engineering staff of overseas subsidiaries. Japanese engineering trainers are sent to conduct local training, and local trainers receive training in Japan.

Training professionals for overseas production

―

: Require skill levels (guidelines)

→Years of experience

―

Legend

Production engineer training system (step-up training diagram)

Grade 3

Grade 1

Grade 2

Grade 1

Grade 2

Entry-level engineers

Intermediate-level Grade 2

Intermediate-level Grade 1

Upper-level Grade 3

Working + thinking

Working + thinking + evaluating

Working + thinking + evaluating + improving

Working + thinking + evaluating + improving + instructing

Upper-level engineers

Intermediate-level engineers

Entry-level engineers

Company-w

ide skills competition

QC circle activities

Basic skills training for new employees:

National Skill Olympics:

Company-wide skills competition:

Overseas personnel training:

Body work Painting

Training in Japan Training by instructors sent overseas

We are work ing on st rengthening our workp lace

capabilities to create workplaces where employees are

able to resolve issues through strong teamwork.

Improving Local Capabilities and Teamwork

526 circles including those from subsidiaries in Japan and overseas participate in these activities as an opportunity to learn and grow together. At the Toyota Auto Body Group QC Circle Competition, selected circles deliver presentations that are intended to further raise the level of these activities.

QC circle activities

At the All Japan QC Circle Conference, which is attended by the top circles in Japan, the Inabe Plant won the Director’s Award First Prize for 4 consecutive years (a first for Japan).

External QC circle competition (All Japan QC Circle Conference)

All Japan QC Circle Conference:

Scene of presentations (at Tokyo Big Sight)

The Eight Samurai Circle receiving the Gold Medal

(Inabe Plant Assembly Sect. No. 1)

20


We are working on global human resource development to

expand the overseas operations of the entire Toyota Auto

Body Group.

Global Human Resource Development


Belgium: 2

Bahrain: 1

Australia: 1

USA: 25China: 9

Taiwan: 3

India: 1

Malaysia: 9

Indonesia: 16

Thailand: 18

Numbers of Toyota Auto Body employees assigned overseas:

As one means of rapidly developing personnel who are capable of operating our business overseas, in fiscal year 2011 we introduced a system of sending younger employees on loan to overseas companies. So far, 26 younger employees have been sent, and have expanded their areas of activity following their return as they make use of their training experience in work related to our overseas business.

Loaning employees for overseas development training

Initially, it was a continual struggle as I was not able to p r o p e r l y e x p r e s s m y thoughts. As I worked, I was able to feel the differences in th ink ing that resul t f rom d i ff e r e n t c u l t u r a l backgrounds. I intend to learn and absorb as much as I can while I am here.

Nobuaki Nishioka, Legal & Property Control Dept., General Administration Div. (Thailand: TAW)

Comments from trainees:

Studying a response to a revision of the law (Mr. Nishioka is 3rd from right.)

Discussing new plant specifications (Mr. Wakabayashi is 2nd from right.)

I am gaining extremely valuable experience in the des ign o f a new plant. I wi l l take the e x p e r i e n c e a n d knowledge that I gain back with me and apply it in my future work.

Jun Wakabayashi, Vehicle Planning & Production Engineering Div. (N. America: TEMA)

The Design Division sends trainees to work at a North America design studio (CALTY) of Toyota.

Loaning employees for design trainingToyota Auto Body has established a system of ICT (intra-company transfers) for accelerating the independence of overseas affiliates.

ICT system

In o rder to hand le the global projects that are growing in number year by year, trainees gain practical e x p e r i e n c e a i m e d a t d e v e l o p i n g t h e idea-development ability, exp ress ion sk i l l s , and presentation skills needed to compete globally.

The Inabe Plant has accepted 5 TAW emp l o y e e s f r om Thai land, and conducted t r a i n i n g f o r t h em o v e r approx imate ly 6 months. Through practical experience, t h e t r a i n e e s a c q u i r e d knowledge and skills related to manufacturing in Japan, aiming for self-reliance of the next p lant/manufactur ing preparat ion project in the local areas.

Trainee (at right) discussing design ideas with local staff

Thai ICT trainee (2nd from right) reporting the results of training at the Inabe Plant

English training is conducted for all personnel who support overseas business, aiming to achieve a level where they can carry out overseas work without an interpreter.

Instructors who are native speakers of English teach a technical course centered on English for technical instruction, and a skills course for learning basic English conversation and English for teaching skills.

Enhancing overseas communication skills

Improving English skills through conversation with instructors who are native speakers of English (Kariya Training Center)

English training for engineers (Technical Training Center)

21


Creating Strong Workplaces with a High Awareness of Compliance and Disaster ReadinessImproving Compliance Awareness among All EmployeesWe have established the Corporate Ethics Committee as a subcommittee of the CSR Committee, and hold discussions and set directions for activities aimed at improving legal compliance and building a healthy corporate culture. We are endeavoring to improve compliance awareness throughout the entire Toyota Auto Body Group. Additionally, we are continuing to ensure complete compliance among our employees via education and training related to ”Our Promise” (the Toyota Auto Body Group Action Policy).

As business becomes increasingly globalized, we are working to improve compliance awareness in the Toyota Auto Body Group both in Japan and overseas.

In Japan, tools for promoting independent compliance activities have been created, regular monitoring is carried out, and other steps are taken to maintain and improve the level of these activities.

Overseas, programs based on the Japan programs are carried out to improve employee awareness.

Expanding programs aimed at ensuring compliance

To provide a system for proper handling of labor problems and other topics that are difficult to discuss with supervisors and/or colleagues, we have established the Honto COM Net direct email consulting service as well as the external legal consulting service Corporate Ethics Hotline provided by lawyers.

Aiming for more precise responses, in January of 2013 we established the Toyota Consolidated Helpline, which allows direct consultation with Toyota Motor Corporation for matters too difficult to present to the internal consulting services.

Further enhancement of corporate ethics consulting services

Examples of programs for raising awareness among overseas employees

A meeting regarding compliance activities (overseas)

Activity for preventing bribery through posters

3 patterns of corporate ethics advisory services leading to an internal investigation

Consulting person desires anonymity

Internal investigation

Pattern 1:

Pattern 2:

Consulting person’s name required

Pattern 3:

　　

Important matters are investigated by Toyota.

In-company advisory service

Honto COM Net

Person consulting

External consultation service provided by lawyers

Corporate Ethics Hotline

Toyota direct advisory service

Toyota Consolidated Helpline

Person consulting

Person consulting

Consultation

Consultation

Consultation

Consulting person desires anonymity

Investigation of facts

Deciding and im

plementing

a response

In recent years as we make the training increasingly realistic, we have incorporated training with no advance notice, simulations of cases when some parts of an escape route cannot be used, and small group outdoor evacuation that facilitates rapid action. Training to centralize safety confirmations for all employees in each workplace and to notify the all-company disaster countermeasures headquarters is conducted at each business location and subsidiary company. We have also concluded a disaster-readiness agreement with Kariya City for the provision of accommodations, food, and water in the event of a disaster.

Comprehensive disaster drills vital in case of a large-scale earthquake

Outdoor evacuation (overall scene)All employees evacuating to the outdoor evacuation site in small groups

Improving Disaster-Readiness Awareness through Practical Training

Comprehensive disaster drills (at Toyota Auto Body):Initial firefighting training (fire extinguishers, fire hydrants)

Aiming to minimize increasingly diversifying risks, we in the Toyota Auto Body Group are working to expand and strengthen risk management as one part of our internal controls. We assess and identify any risks that could impact company operations, and establish preventive measures and initial response measures to address them. The disaster-readiness training for initial response measures is being made increasingly realistic year by year.

Transporting injured persons Training for installing rescue chutes

Toyota Auto Body Group Action Policy (Issued March 2005)

http://www.toyota-body.co.jp/english/csr/pdf/2015/TYG_houshin_english.pdf

22


All suppliers and overseas subsidiaries are carrying out activities aimed at eliminating accidents, including strengthening of efforts by top management to create a safety-first environment, and activities to improve safety sensibility among individual employees.

Putting Safety First and Working to Create Safe People and Workplaces

Achieving Safety First for All Employees

At our company-wide Safety Rally, Toyota Auto Body executives, department and section managers, and top management of our affiliated companies together recited a slogan describing the importance of basic safety activities, with the objective of eliminating dangerous incidents.

We are also taking the lead with Safety Month, and with personal checks of workplace problems by the company president that are linked to improvements.

Efforts by top management to create a safety-first environment

Company-wide Safety Rally in July 2014 A check of safety activities by the company president (Safety month, July)

We are making efforts aiming to create a company culture in which employees warn colleagues who are unaware of safety risks around them. We call these activit ies Po-ke-te-na-shi*1, and each of these five parts corresponds to a set of basic safety activities.

Activities to improve safety sensibility

Banners for an awareness and action campaign

KY training where employees consider danger based on actual experience (example of crowbar handling and transporting large workpieces)

Po : Do not put your hands in your pockets while walkingke : No use of keitai (cellular phone) while walkingte : Hold the tesuri (railing) while climbing and/or descending stairsna : No naname (at an angle) crossing of a street or roadshi: Be certain to shisakoshou (point to the left and right and call out when one intends to cross a street or road)

Activities aimed at increasing the safety sensibility of all employees include having employees consider safe procedures for the use of tools and training for finding irregularities in the workplace. We have also launched a system for level-based KY (kiken-yochi: danger prediction) training in which individuals assess their own KY levels, and are working to improve individual skill levels.

*1:

Special morning safety meeting for work during the winter holidays

Putting Safety First for our Business PartnersBased on our own objective of zero shipping-related

accidents at our facil it ies, we are coordinating safety

programs with suppliers, externally contracted construction

companies and shipping agents. For construction safety

during extended shutdowns (when accidents are especially

likely to occur), we carry out safety checks (rallies) and other

activities to improve safety management.

Forklift safety rules study meeting for all shipping agents (Technical Training Center)

Safety inspection by top management in Indonesia (RPT)

Putting Safety First in Overseas OperationsInternal company activities are also carried out overseas.

Under the direct leadership of top management, activities

including safety inspections by the company president,

recitation of safety slogans at morning meetings, 4S, and

Po-ke-te-na-shi are used to help create a culture of watching

out for one another in which all employees participate.Reciting safety slogans at a morning meeting

4S activities

Safety and Health Policy Labor Accident Status

http://www.toyota-body.co.jp/english/csr/pdf/2015/anzen_eiseikihon_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2015/rousai_2010-2014_english.pdf

23


We recognize that the health of our employees is an important element in our quest to create ever-better cars, and we have enacted a variety of programs aimed at making us a healthy company as we work to ensure the health of all employees and their families.

Ensuring the Mental and Physical Health of our Employees

For the Health of our Employees and their FamiliesWe are carrying out a variety of activities aimed at developing employees who are capable of independently maintaining and improving their own health. These are based on three key activities: maintaining and improving mental health, improving lifestyle habits (preventing metabolic syndrome), and stopping smoking.

We also hold instructional meetings regarding ways of preventing the back pain that occurs often in the manufacturing industry, walking events sponsored by the Health Insurance Association, and health-promoting events where family members can also participate in connection with the all-company sports day.

Instruction meeting for prevention of back pain, conducted by an exercise instructor

We have created a consultation system, with clinical psychologists who are experts in mental health assigned to the Fujimatsu, Inabe, and Yoshiwara plants.

So that employees wi l l come for menta l hea l th consultations, the clinical psychologists introduce the consultation offices at health events, in lectures by psychologists to key personnel, during workplace training, and at other opportunities, aiming to create an atmosphere for easily accessible consultations.

Aiming for easily approachable consultation offices

Stress check (stress evaluation by measurement of saliva components)Conducting stress check!

Mental health lecture for key personnel

In connection with the all-company sports day, we also hold health measurement events that family members can also participate in as opportunities to reconsider lifestyle habits.

We are also actively carrying out activities to promote employee health awareness, including AED training in the workplaces, and health workshops for smoking, metabolic syndrome, and dental health.

Promoting health awareness through family participation events and outside health workshops

Health measurement at the all-company sports day

Workplace AED training

To help create new non-smokers, the 22nd of each month has been designated as a company-wide no-smoking day, providing opportunities for employees to quit smoking. Anti-smoking examinations are also performed at the company clinics in order to provide support for employees who want to quit smoking.

The company is a lso d iv ided into smoking and non-smoking areas in order to prevent passive smoking by non-smokers.

Support for quitting smoking and creation of separate smoking and no-smoking environments

Company-wide no-smoking day posterThe shape of the number “22” resembles two swans. The word “swan” sounds like the word “suwan” (I don’t smoke) in Japanese.

Examinations for employees who want to quit smoking: measuring breath CO concentrations(Measured to check the effects of quitting smoking.)

The 22nd of each month is the Toyota Auto Body non-smoking day.

The 22nd of each month has been designated as the “Toyota Auto Body non-smoking day”.On this day, please refrain from smoking anywhere on company grounds.FY 2015 designated non-smoking days

24


In order to create a vibrant workplace culture that supports the happiness of each individual employee and the development of the company, we are attempting to breed a sense of unity by creating various opportunities for invigorating communication that exceeds the framework of the workplace and rank.

Communication Activities for “Creating a Vibrant Workplace”

Targeting a Workplace with Open Communication

We are enhancing communication through things such as daily workplace meetings, interviews with superiors, and small group activities.

(Formal activities)

Aiming for Cheerful, Fun, and High-Spirited Workplace

We are enhancing communication and breeding a sense of unity through company-wide, office-wide, and intra-division events held away from work.

(Informal activities)

Company-wide:All Toyota Group:

Toyota Auto Body Group sports competitions: Toyota Auto Body Group Futsal Tournament

Sports club supporters

The all-company sport day (Fure-Ai Sports Day), held for the first time in 15 years

All Toyota Big Holiday

Business site events: Division events:Events that highlight the unique characteristics of each office

Yoshiwara Plant Festival

Fujimatsu Plant tricycle race

Development division marathon

<System and Tools>

<Vibrant Workplaces>

Workplace Workplace energyenergy ManagementManagementTeamworkTeamworkHuman resource Human resource

developmentdevelopment

Workplaces with a positive atmosphere

Reliable Personnel Management by Production Line

Communication to guarantee work results

Communication to improve human relationships

Formal Activities(MBO and challenge sheets/C Meetings) Informal Activities

Creating Vibrant Workplaces via Communication Activities

TOPICSProviding information in the cafeterias

Activity for producing original seasonal decorations in the production engineering divisions

The launch of programs for the 70th Anniversary Year of Thanks (2015)

TAB channel for this week(1) Joint report meeting by handball and volleyball teams(2) Queenseis and Kurowashiki All Japan Tournament(3) Information on HAPPY FESTA(4) Real estate information from Toyota home (5) Introduction of the 70the Anniversary goods(6) Information on recreational facilities

Informal activity information is p rov i ded by v i deo i n a l l t he cafeterias, creating opportunities for communication.

Company events and division events are held to express t h a n k s t o o u r r o o t s (predecessors) and thanks to our coworkers, and to connect these feelings of gratitude to our future dreams.

25


We are striving to create awareness for being good members of society by doing things such as deepening awareness of human rights and enhancing awareness of traffic safety.In addition, we are making efforts to enrich various measures for creating easy-to-work environments for our employees.

Creating Awareness and Easy-to-Work Environments to be “Good Members of Society”

Being Good Members of Society

Aiming to improve awareness of “Respect for Individuals” we are providing internal training for all employees concerning various human rights issues, including social integration issues and humans rights for women and foreigners.

Deepening Awareness of Human Rights

Aiming to improve traffic safety awareness, in addition to our traffic safety activity, we have held lectures by persons who have lost family members in traffic accidents and who describe their sadness and pain in their own words, as part of educational activities to eliminate traffic accidents.

Ensuring traffic safety awarenessHuman rights education (new position training)

Discussion at a C meeting

Employee traffic safety activity Lecture by persons who lost family members

Creating Environments to Support Diverse Working Styles

Creating processes that are easier to perform:So that all employees can continue working in good health, we are carrying out process improvements that lessen work burdens, for example by improving work that is performed in difficult positions.

Creating workplace awareness for preventing loss of physical strength:Awareness seminars are held for employees in their 40s and 50s, teaching ways of working and building strength so that they can continue to do the same work when they are 60 and older. So that employees can achieve the second life that they want, we provide opportunities for them to learn about the necessity of self-help efforts and to begin putting them into practice.

Support for the working styles of older employees

We are promoting improvement of the environment to support our employees to keep working while raising children by creating systems that go beyond established laws, such as establishing the internal Tacchi-chi House, a short working shift system, a maternity leave system, and others.

Especially in this fiscal year, we are providing the childcare environment that meets various needs by extending the available hours of daycare facility according to the shiftwork, offering temporary childcare on a public holiday, and other services.

Expanding support for child raising

Lifted up

Lifted to a height where work is easier (tire installation process)

Guidance for building body strength at a body awareness seminar

Joint daycare facility Tacchi-chi House Fujimatsu

Process improvements:The vehicle body is raised and lowered for each work position (height), reducing the burden on the worker’s body.

Support for Pregnancy, Childbirth and Child Raising

http://www.toyota-body.co.jp/english/csr/pdf/2015/ikuji_support_english.pdf

26

■Social Contributions

In order to be a company needed by society, we consider it important to fulfill our social responsibility to earn the trust of everyone in the local communities.In order to achieve a mutually beneficial relationship with local communities through activities that contribute to society, we are developing people, creating opportunities, and creating systems for further strengthening these activities.

Aiming to be a Company and People That are Needed by Society

Developing People

We hold 60 courses a year to support participation in volunteer activities. These courses include basic courses,

skill-improvement courses in specialized areas, and leader training courses. Through these courses and experience activities,

we are building empathy and developing personnel who can participate in activities for the benefit of society.

Expanding courses that support activity participation

Knowledge:Learning about the necessity of forest maintenance

Practice:Understanding the health of a forest based on leader instruction

Forest maintenance courseFor the forest maintenance activities conducted by employees of companies in Aichi Prefecture, this course develops leaders who can conduct safe woodland thinning activities and creates a system (knowledge, practice, continuation) so that employees participating for the first time can experience woodland thinning under the guidance of the leaders.

Introductory courses for each generationA vo lunteer act i v i ty exper ience program is conduc ted as pa r t o f the t ra in ing fo r new employees. Employees select from a list of 28 activities including NPO support and operation of sports competitions for disabled persons, and themselves create and carry out a participation plan.

No. 11: NPO support (pastry sales)

Date: 11/8 (Sat) 9:00 – 16:00

Place: Ohkagakuen Nagoya Two-year College

Activity: Sales of NPO Pandora products

Transport, venue operation, cleanup

Selecting from 28 activities and creating a participation plan

Creating Opportunities for Activities

Both in Japan and overseas, we are engaged in forest maintenance, environmental preservation activities, and the “Fure-Ai Day” volunteer day for the entire group, and are conducting activities that involve employees, their families, and members of the local communities.

Toyota Auto Body Group programs

Toyota Auto Body R&DKinko Bay cleanup activity

Indonesia mangrove planting conducted by 3 overseas subsidiary companies

Production Control Div.Shinichi Ohmura

Comment from a new employee participating in a volunteer activity

Participating in this activity has changed the way I think about volunteering and how I spend my days off. In the future, I would like to make use of my own interests and participate actively.

PR support for NPO activities at a university festival

27

■Social ContributionsCreating Opportunities for Activities

Centered on business sites and workplaces, we are carrying out activities together with members of the local communities.

Creating opportunities centered on the workplaces (blocks)

Environmental beautificationEmployees and their families carry out cleaning

and greening activities in the areas around the

plants together with members of the local

communities.

The Inabe “cleanup along the Hokusei Line”

activity was awarded the 5th Make a CHANGE

Day award of excellence for its coordination

and cooperation with local communities and

government.

Activities for community and raising the next generationAs an important activity for interacting with

youth in communities, Toyota Auto Body

supports youth soccer tournaments, and our

handball and volleyball club members conduct

sports classes. In addition, the Toyota Auto

Body Group jointly presents concerts with the

Nagoya Philharmonic Orchestra, which persons

with physical and mental disabilities are invited

to attend.

Inabe:Cleanup along the Hokusei Line

Yoshiwara:Making a green corridor along the Aizumaogawa River

Winning team at the Kariya City Toyota Auto Body Cup youth soccer competition

Community concerts

Creating Systems for Revitalization and Continuation

At Kariya Fure-Ai Park, we conduct agriculture

experience programs and environmental workshops

for employees and their families, members of local

communities, and students of nearby elementary

and junior high schools throughout the year.

Participants learn about the blessings of nature and

rice cultivation from local agriculture instructors.

In addi t ion, we have completed the Forest

Classroom at the Inabe Plant, and are using it to

hold environmental workshops and woodworking

craft classes.

Programs using our facilities carried out in cooperation with local communities, and programs to improve environmental awareness

Woodworking craft class using the completed Forest Classroom (Inabe Plant)

28

■Social Contributions

We are all a part of nature, sharing it with the many creatures that live in it. In order to protect the environment of our communities so that people and nature can coexist, we at Toyota Auto Body are coordinating with local communities to create factories that exist harmoniously with nature.

Creating Factories that are Harmonized with Nature and Coexist with Local Communities

Kariya: Operation of the Kariya Fure-Ai Park for learning and relaxation

The Kariya Fure-Ai Park opened in May 2014.

Based on a concept of harmony between people and

nature, it is used as a place for agriculture experience

programs, environmental workshops, and community

interaction events.

The biotope was also created to contribute to the

creation of a network that connects the green areas of

the factory and surrounding green areas. Such

networks are one part of the Aichi Prefecture

biodiversity strategy.

The park provides a place for elementary school

students to learn about rice cultivation throughout

the year, including planting, harvesting, threshing,

and hulling, and also about traditional Japanese New

Year customs such as making mochi (rice cakes) and

weaving ceremonial ropes as part of their social

studies classes.

Using the biotope and other resources of the park,

environmental workshops are also held for members

of local communities, students of nearby elementary

schools, kindergartens, and employees.

In cooperation with the Aichi University of Education,

the park is also used as a place for instruction in

environmental preservation techniques and for

research presentations. At the end of the academic

year, an event where graduates present their theses

is held, improving everyone’s understanding of

biodiversity.

Community contributions and collaborations using our facilities

Year-long agriculture experience: Rice planting (June) September: Harvesting

BiotopeWooded area

with a small stream

Rice paddy field

Fruit orchard and agricultural field

Futsal and tennis courts

Fure-Ai Area

Total area: Approx. 50,000 m2

Biotope and Fure-Ai Area: Approx. 15,000 m2

Students making mochi from the rice that they planted themselves

Weaving ceremonial ropes using rice straw from the rice field

Nature observation program taught by students from Aichi University of Education

Research thesis presentation on the subject of biotopes

Kariya Municipal Fujimatsu Higashi Elementary School Principle Nomura

Comment from a Fure-Ai Park user

The children gained valuable experiences with nature and agriculture through outdoor learn ing that cannot be done in a classroom.

29


One of the fundamental principles of Toyota Auto Body is harmony with the environment, and in keeping with the ideals of our predecessors we began carrying out the Fifth Toyota Auto Body Environmental Action Plan beginning from fiscal year 2011. Aiming for the sustainable development of society and the world, we are introducing new technologies at times when new products are produced or equipment is replaced, and we are working to preserve the global environment through activities which involve all employees. In the future, we will continue to work together with members of local communities and continue building a prosperous society.

Maintaining a Society of Prosperous and Convenient Living into the Future

Production Engineering HeadquartersProduction Environment Committee Chairperson:Akitsugu Ishiguro,Executive Vice President

(1) Contributing to a prosperous 21st centuryTo cont r ibute to a prosperous 21st century, we a im for growth in ha rmony w i th the env i ronment , and a re cha l leng ing ourse lves to achieve zero emissions in al l areas of our business act iv i t ies.

Toyota Auto Body Basic Environmental Policy (Established in 1993, Revised in 2004)

(2) Pursuing environmental technologT o y o t a A u t o B o d y i s p u r s u i n g a l l p o t e n t i a l e n v i r o nm e n t a l techno log ies and we are mak ing effor ts to deve lop and estab l i sh new technologies that rea l ize a balance between the envi ronment and economic concerns.

(3) Self-initiated effortsSta r t i ng w i t h ou r effo r t s f o r t ho rough p reempt i ve p reven t i on and compl iance wi th legal s tandards, we have establ ished se l f- in i t ia ted ka izen p lans based on g loba l -sca le env i ronmenta l i ssues, and we continue to promote such self- ini t iated efforts.

(4) Coordinating and cooperating with societyB e g i n n i n g f r o m c o o p e r a t i o n w i t h a ffi l i a t e d c om p a n i e s a n d indus t r i es , we a re bu i ld ing coopera t ion and coord ina t ion w i th a large sector of society involved in environmental conservat ion that includes the government and prefectural governments.

Toyota Auto Body Environmental Action PlanAs we aim for the sustainable development of society and the world through environmentally friendly manufacturing, we have established action items in each field (development, production and logistics, and procurement), and are continually carrying out comprehensive environmental management.

First Plan Second Plan Third Plan Fourth Plan Fifth Plan Sixth Plan

◇Construct a system for environmental programs.

◇Improve the level of the p rograms by i n t r o d u c i n g ISO14001.

◇Achieve zero landfill waste and expand the areas of environmental activities.

◇Work to reduce CO2 emissions on a global b a s i s , a n d a p p l y environmentally friendly designs to our products.

(Now being formulated)

1993 1995 2000 2005 2010 2015 2020

◇Promote to develop a compact EV◇Build a prosperous society t h r o u g h a c t i v i t i e s conducted together with local communities.

Product environment(development and design)

Production environment(production and logistics)

・Improve fuel efficiency by reducing vehicle weight

・Participate in projects for promoting the introduction of super-compact mobility

・Improve ease of vehicle dismantling・Expand use of recycled materials・Develop materials using plant fibers

・Improve the management of products containing chemical substances

・Introduce products that contain fewer substances that impact the environment

Environmental management(Environmental administration)

・Promote and improve consolidated environmental management

・Enhance and promote environmental education and training

・Create factories that coexist with local communities and are harmonized with nature

・Promote further environmental activities that are coordinated with suppliers

Building a low-carbon society

Building a recycling-oriented society

Building a society that lives in harmony with nature

・Develop/introduce production technology that reduces greenhouse gas emissions, improve productivity, and intensify energy-saving activities

・Improve transport efficiency in our logistics operations and switch to electric vehicles for on-site logistics

・Carry out activities to reduce emissions and improve yield

・Reduce the amounts of packaging materials used

・Reduce environmental-impact substances (VOC) in painting operations

Fifth Toyota Auto Body Environmental Action Plan

Fiscal Year 2014 Action ResultsProduct and Production Environmental Action System and Items

http://www.toyota-body.co.jp/english/csr/pdf/2015/kankyou_5th_plan_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2015/kankyou_taisei_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2015/5th_jisseki_2014_english.pdf

30

■Friendly to the Global EnvironmentThree Priority Themes: Low Carbon Recycling

OrientationHarmony with Nature

Energy and global warming problems are important environmental issues that may have a major effect on humanity and the ecosystem. In cooperation among related divisions, we are developing technologies and working from the initial design stage in order to create environmentally friendly vehicles.

Development of Weight-Reducing Technologies that Contribute to Top-Class Fuel Economy Performance

Product Environment

Developing Weight Reduction Technologies for Vehicle PartsImproving the power train and reducing vehicle weight are essential in order to improve fuel economy. We consider reducing the weight of vehicle parts as a core approach of Toyota Auto Body, and the entire company is actively working for this purpose.

Main programs for reducing the weight of re-designed Alphard and Vellfire body and interior partsBy using high-strength steel sheets for approximately 62% of the underbody (by weight), and by improving the structure and reducing the thickness of interior parts, we achieved a weight reduction of 32 kg.The use of high-strength steel sheets also efficiently increases rigidity, creating a lightweight and strong body while also ensuring collision safety performance.

Discussion of the re-designed Alphard and Vellfire weight reduct ions involv ing officers of the development and production engineering divisions

*1 .Hot stamping: A part forming method where steel softened by heating to a high temperature is press formed and, at the same time, hardened by cooling when it comes into contact with the die.

Previous technologies

Re-designed Alphard and Vellfire

32kgreduction

1500MPa（hot stamping *1）

980MPa

590MPa

440MPa

High-strength steel sheets

Body: Upper body

Doors

Under body

Interior:Thinner trim base material (0.2 reduction）

Deck boardUses lightweight PP bead foam.

Lower density by joining the floor carpets together

Thinner, one-piece instrument panel

Thinner, scuff plate

Upper instrument panel

Old model: Separate upper/lower structure

New model: One-piece upper/lower forming

Lower instrument panel

Increasing the strength of the unit part allows thinner material, reducing the weight by approximately 3 kg.

Body Design Div. Makoto Murakami

Comment by a the re-designed Alphard and Vellfire developer

We were able to achieve a la rge reduct ion in weight by coordinating with related divisions beginning from the initial deve lopment s tage, us ing h igh-s t rength s t e e l s h e e t s , a n d optimizing part layout.

31


Because we understand that all resources are finite, based on the 3 R’ s (reduce, reuse, recycle), we are working to improve the ease of dismantling, expand the use of recycled materials, and develop and design plant-fiber materials.

Expanded Use of Recycling-Friendly Designs for Efficient Use of Resources

Product Environment Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

Improving the Ease of Vehicle DismantlingAs heavy machinery for vehicle dismantling has become widely used in the markets, we are working in cooperation with Toyota to develop vehicle structures that can be dismantled more easily.

Improving the ease of wiring harness dismantling with heavy machineryGreen tape is used at key positions to show where wiring harnesses can be removed efficiently when scraping the re-designed Alphard and Vellfire, improving the ease of dismantling.

Instrument panel wiring harness Green tape is added at the wiring harness positions to shown the starting points for easy removal

Expanding the Use of Recycled MaterialsExpanding the use of recycled materials made from waste plastics and felt from the market

The re-designed Alphard and Vellfire use recycled

polypropylene and recycled felt, increasing the use

of recycled materials.

3. Rear floor under-cover RH/LH

5. Felt

1. Floor under-cover RH/LH

2. Fender protector RH/LH

4. Dashboard silencer

Parts 1 to 3: Polypropylene (bumper, other recycled materials)Parts 4, 5: Recycled felt

Development of Materials using Plant FibersUse of cedar from woodland thinningWe have developed the new flame retardant injection molding material TABWD *1. This material uses cedar from woodland thinning as a reinforced fiber in combination with polypropylene. It is used in the wiring harness protectors in the re-designed Alphard and Vellfire hybrids, as we continue to work for more effective use of resources.

Fine cedar fiber TABWD Wiring harness protector (Black parts are where the developed material is used.)

*1.TABWD：Toyota Auto Body WooD plastic

New Business Development Div.

Takuya Nishimura

Comment from a TABWD developer

I n the fu tu re , we intend to expand the range of products w h i c h u s e t h i s in ject ion mold ing material made with cedar from woodland th inn ing, and wi l l propose new ways of using it that will lead to more effective use of resources.

Video Showing the Use of Heavy Machinery for Vehicle Dismantling

http://www.toyota-body.co.jp/english/csr/pdf/2015/kaitai.wmv

32


We at Toyota Auto Body are coordinating with our raw material and parts suppliers to identify and assess the risks of the chemical substances that are used in our products, and we are working to protect the environment via actions such as managing chemical substances and changing to the use of substances with lower environmental impacts

Improving Management of the Chemical Substances Used in Products

Product Environment Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

Three Priority Themes: Low Carbon Harmony with Nature

Recycling Orientation

Start of a Recycling Business for the COMS Super Compact EVThe COMS Recycling System that was launched in April 2015 is an original recycling system constructed by Toyota Auto Body for the COMS ‒ a vehicle which is not subject to the Automobile Recycling Act. We will continue to work for the creation of a recycling-oriented society in the future.

Recycling rate 80% or higher

Developmentand design

Scrapping

Manufacture

Sale

Use

Collection

Recycling Toyota Auto Body

Customer

Processing facility

コ

ルセン

タ

COMS Recycling System

CallCenter

Intended COMS lifecycle Process of COMS recycling

We have acquired a national permit from the Ministry of the Environment and constructed a recycl ing system which customers in all parts of Japan can use.

ToyotaAutoBody

Customer

Processing and

recycling facility

Recycled materials

Waste

materials

Suitable

disposal

iron, aluminum, others

Certain Compliance with REACH Regulations and Other International Chemical Substance RegulationsRegulations of chemical substances include the Japanese Chemical Substance Control Act*1, the European ELV Directive*2, and the REACH Regulations*3, as well as independent regulations in North America and Asia.

Toyota Auto Body is working together with Toyota Motor Corporation and our suppliers to build and administer a system for chemical substance management under these kinds of international chemical substance regulations.

In fiscal year 2014, we standardized our compliance with chemical substance control regulations, and established firm practices for IMDS*4 registration by suppliers as we collect information about the chemical substances that are used in our products.

Based on green purchasing guidel ines for environmental preservation, we are supporting the in t roduc t ion o f chemica l subs tance management systems at subsidiary companies.

*1.Chemical Substance Control Act: Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.

*2.ELV Directive: End-of-Life Vehicles Directive

*3.REACH Regulations ： Registration,Evaluation,Authorization and Restriction of Chemicals

*4.IMDS ： International Material Data System

COMS Recycling System web site

http://coms.toyotabody.jp/support/recycle.html

33


We are developing and introducing technologies for low-CO2 production, improving production line productivity, fully eliminating waste in everyday activities, and promoting optimal equipment operation.

Extensive energy-saving and CO2 emissions reductions in production activities

Production Environment

CO2 reduction activities launched with the start of production for the re-designed Alphard and Vellfire・Introduction of new machining methods at the start of production of new vehicles (Examples (1) (2))・CO2 emissions reduction and increase in the self power-generation rate with a new cogeneration system at the Inabe Plant (Example (3))・Extensive reduction in power and air leakage loss between shifts and on holidays (Example (4))

201 213200219208 219

0

100

200

300

'90 '14'10 '11 '12 '13

(Thousands tons CO2)

〜〜〜(Target)'15

191

CO2 emissions (Toyota Auto Body)

317

289295

269280 283

0

250

300

350

'01 '14'10 '11 '12 '13

(CO2 kg/vehicle)

〜〜(Target)'15

(285)

〜〜

〜〜

Before SOP (Feb. 2014)

258

295

37reduction

13%energy savings

After SOP (Feb. 2015)

(CO2 kg/vehicle)

CO2 emissions per vehicle (Toyota Auto Body) CO2 emissions per vehicle (Inabe Plant)（Comparison of CO2 emissions before and after start of production (SOP) of the re-designed Alphard/Vellfire）

Example (1): Energy savings resulting from integrated forming of the instrument panel upper and lower parts:

Forming machine Lower partLower part forming

Integrated forming of upper/lower parts

Upper part

Lower part

Integrated forming part

Forming machine

Improved resin flow performance makes forming of a large-size instrument panel possible.

Previous

4.8

6.61.8 reduction

27%weight

reduction

Now

3.9Upper

2.7Lower

Integration, reduction

in thickness

(kg)

Previous

143

18542 reduction

23%energy savings

Now

Number of forming processes reduced by 50%

(CO2 t/Year)

Instrument panel weight reduction CO2 reduction

＜Previous＞＜Now＞

CO2 reduction

Forming machine Upper part

Upper part forming

Example (2): Energy savings resulting from improved method for heating of vacuum forming base material:

Far-infrared heating

15 seconds to reach target heating temp. (65 ℃)

Slides

Far-infrared heater

Instrument panel

Use of a far-infrared heater capable of rapid heating

Instrument panel

Heating oven

Hot air heating

270 seconds to reach target heating temp. (65 ℃)

Previous (overall heating) Now (local heating)

Previous

7

3225reduction

78%energy savings

Now

(CO2 t/Year)

Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

34


Production Environment

CO2 reduction activities launched at the start of production for the re-designed Alphard and Vellfire

A new gas engine cogeneration system has started operating at the Inabe Plant (from Jan. 2015).It will contribute to further reducing CO2 emissions in the future.

Example (3): CO2 emissions reduction and increase in the self power generation rate with a new cogeneration system at the Inabe Plant:

System characteristics:・Overall efficiency is 80% of the maximum for the gas engine class. The expected annual reduction in CO2 emissions is 11,000 tons.

・A model with a large generating output is used, increasing the self power-generation rate to 32%.・A system capable of supplying power during blackouts in the event of a major earthquake or other disaster was adopted.

The latest gas engine system with a generation efficiency of 49%

City gas

7.5 MW generation

Steam recovery from waste heat

Gas engine

Waste heat boiler

exhaust gas

300℃

Electricity

Steam

90℃ hot water（Engine coolant）

60℃ hot water（Lubricating oil coolant）

Overall efficiency 80%

49%

14%

13%

4%

Plant A/C

Plant A/C

Plant A/C

Painting booths

Plant

Winter

SummerHot water driven absorption chiller

Winter

Example (4): Extensive reduction in power and air leakage loss between shifts and on holidays:

In fiscal year 2014, benchmark targets were set for each shop at the Fujimatsu, Inabe, and Yoshiwara Plants, and

as a result of the efforts below we succeeded in achieving a 500-ton annual reduction in CO2 emissions.

・Voluntary inspections for early repairs of air leakage・Providing weekly and monthly results data to make the effects of activities visible

・Genchi-genbutsu energy-saving inspections by officers at each plant to create awareness and motivation for energy-saving activities

Genchi-genbutsu energy-saving inspections by officers (March 2015)

Example: Amount of air leakage per hour in stamping and body processes at Inabe Plant (indicator)

Previous (Dec. 2013)

81100 19% decrease

Now (March 2015)

Results of determined energy-saving activities

Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

35


We have created a management system that coordinates our subsidiaries in Japan and overseas, and suppliers, and are actively carrying out activities including (1) educational activities aimed at raising the level of environmental action, and (2) activities to prevent environmental risk.

Strengthening Consolidated Environmental Management

Environmental Management

Introduction of an awards system to raise the activity level

Beginning from fiscal year 2014, we set up a system of awards for workplaces that contribute to environmental preservation programs, aiming to raise the level of these activities.

Awards were presented to workplaces that achieved large reductions in energy loss when equipment was not operating (Yoshiwara Plant’s Final Assembly Div. and Inabe Plant’s Stamping Shop).

In-company

Japan subsidiaries

Overseas subsidiaries

Awards ceremony (Feb. 2015) Activities at the award-winning workplace: Air leakage inspection (Yoshiwara Plant’s Final Assembly Div., Sep. 2014)

In-company

Japan subsidiaries


In-company

Japan subsidiaries


In-company

Japan subsidiaries


Environmental education activities

In fiscal year 2014, lectures on the subject of The Present and Future of Global Warming were held, presenting an excellent opportunity for employees to understand the facts about global warming and renew their recognition of the need for energy-saving.

WWF Japan: Lecture by Ms. Konishi (Aug. 2014)

A variety of educational activities are carried out to correspond with Environment Month.

Activities to prevent outflow of chemicals, production wastewater, and other contaminantsAiming to prevent outflow from production processes, chemical storage areas, and other places, in addition to carrying out daily management, we have also decided procedures in case of spills to ensure that contaminants do not leak from the company grounds, and are conducting systematic emergency training for rapid action. In fiscal year 2014, these activities were also carried out at overseas subsidiaries.

Training to prevent wider contamination in the event of a spill

Kariya Plant (Aug. 2014) TAW (Oct. 2014)

Strengthening management including at subsidiary companies in Japan and overseasWe continued to acquire ISO14001 certification at our production sites. In fiscal year 2014, the certification was newly acquired by three overseas subsidiaries, and certification has now been acquired by all production sites.

Through liaison meetings and on-site audits, the contents of programs at consolidated companies in Japan and overseas are checked regularly. Environmental improvement case studies and other information are also shared, and environmental training is conducted.

ISO14001 certification acquired by APMM (Feb. 2015)

On-site audit　 T-TEC（Sept. 2014）

Other Environmental Data

Resource Investment into and Emissions Produced by Our Business Operations

Environmental Accounting

Active Release of Environmental Information

http://www.toyota-body.co.jp/english/csr/pdf/2015/kankyou_shigen_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2015/kankyou_information_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2015/kankyou_kaikei_english.pdf

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reflect information more accurately for these CSR activities and this report

of Toyota Auto Body for the future, please enter information in the survey.

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Publishing

Head Office

Publishing Date

Toyota Auto Body Co., Ltd.100, Kanayama Ichiriyama-cho, Kariya City, Aichi Prefecture 448-8666TEL: +81-566ｰ36ｰ2121

Corporate Planning DivisionTEL: +81-566ｰ36ｰ7510　FAX: +81-566ｰ36ｰ9113

June 2015（Next publishing scheduled for June 2016）

http://www.toyota-body.co.jp/english/

https://www.toyota-body.co.jp/english/csr/contacts/enquete2015.html

http://www.toyota-body.co.jp/english/

Documents

CSR REPORT 2015