Creating Sustainable Mobility

1. Creating Sustainable Mobility Yutaka Matsumoto Project General Manager R&D Management Division Toyota Motor Corporation 15 May 2008

2. Sustainability Challenges & Toyota’s Awareness Innovation for the Environment Major Discussion Topics

3. Environment Emissions, waste, biodiversity Energy Consumption Safety Accidents, injuries Mobility Congestion, Equal Access Quality of life Employees, customers, and communities Sustainability challenges

4. Awareness of Issues Automotive Powertrain Issues Accelerated consumption of fossil fuels 1. Energy Resources Global development of industry & technologyin the 21st century 2. Global Warming(CO2 reduction) Population growth (in USA, Asia, etc.) Increasing number of motor vehicles 3. Air Quality Three issues: Energy Resources, Global Warming, Air Quality

5. Oil Natural gas Coal Biomass Solar, wind, hydro, nuclear Future Automotive Fuels Primary energy Automotive fuels CurrentMainstream Gasoline, diesel Synthetic fuels(FT synthetic diesel, etc.) Fossil Fuel Mobile use Biofuels Gaseous fuels(CNG, LPG) Other Sources Hydrogen Manufacturing Residential Electricity Stationary Use Automotive energy sources will diversify into liquid, gas, and electricity

7. Sustainability Challenges & Toyota’s Awareness Innovation for the Environment Major Discussion Topics

8. Kaizen of Engines & Transmissions Gasoline engine Diesel engine Piezo injector Driving performance Driving performance Common rail （180MPa） VVT-i D-4S Low friction Common rail (135MPa) DPNR Lean burn 3way cat Environmental performance Environmental performance Transmission Driving performance 8AT Vehicle total management CVT 6AT Flex start ECT-i Flex lock-up Environmental performance Improving powertrains with new technologies

9. Key Aspects of Alternative Fuels Energy density Well-to-Wheel CO2 Resources

10. Diesel Gasoline Ethanol Hydrogen absorbing alloy (2wt%) CNG(20Mpa) High-pressure hydrogen (35MPa) Low Density High Density Lithium-ion battery Larger Tank Smaller Tank Energy Density Toyota estimate 10 Batteries Gaseous Liquid Volumetric energy density (Gasoline=10) 5 0

11. Well-to-Wheel CO2 Emissions Well-to-Tank CO2 (WTT) Relative CO2 emissions indexed to gasoline as 1.0 Tank-to-Wheel CO2 (TTW) Japanese 10-15 test cycle Gasoline Diesel Gasoline Hybrid Ethanol: sugar cane Ethanol: corn FT synthetic diesel: biomass FT synthetic diesel: coal Fuel Cell : CNG Electricity: coal Fuel Cell or Electricity: nuclear 1 0 -1 -0.5 0.5 1.5 Source: Mizuho Information & Research Institute report

12. Alternative Fuels - Basic Characteristics Well-to-Wheel CO2 Emissions Energy density (Cruising distance) Resource Availability Bio-fuel better worse better depends on primary energy source better Hydrogen worse depend on primary energy Electricity better worse

13. Usable for all types of powertrain Contributes to high fuel efficiency Hybrid Technology

14. Surplus energy Regenerative braking Hybrid Technology Energy Management Battery Energy Acceleration 0 Time Engine output Deceleration

15. Energy is reused Surplus energy Regenerative braking Hybrid Technology Energy Management Battery Energy Acceleration 0 Time Engine output Deceleration

16. 1st Generation Prius Launched in Japan in 1997 • Completely new concept • Positioned as C-segment • Marketing focuses on environmental appeal

17. Launched in 2003 Demonstrated: Environmental carscan be attractive No performancecompromise Broad customer appeal Keys to success: Style Image Driving dynamics 2nd Generation Prius

18. Ten Years of Hybrid Sales ★ 1000 900 800 Annual Sales (1,000 units) 700 600 500 400 300 200 100 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (year) One million cumulative total sold worldwide. Aiming to reach one million per year early in the 2010s decade

19. Energy diversity CO2 reduction Air quality Gasoline, Diesel Gaseous Fuels Synthetic Fuels Biofuels Hydrogen Electricity Ultimate Eco-Car Hybrid Technology the Right Car the Right Place the Right Time

20. Thank you