CSR REPORT 2016 - toyota-body.co.jp · Toyota Auto Body Proﬁle Top Message ... All opinions or...

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Contents

■Friendly to the Global Environment

■Production Environment

■Environmental Management

■Product Environment

■Toyota Auto Body Profile

■Top Message

■Corporate Governance

■Corporate Principles

■ Creating Ever-Better Cars

■Meeting Customer Expectat ions

■Creating High Qual i ty Cars

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5

7

31

34

37

9

16

8

7 ■Social Contributions 27

18

30

■Developing Employees and Creating the Workplace

Editorial policyToyota Auto Body is dedicated to corporate activities that will contribute to a prosperous society by creating

ever-better cars.

This report introduces the CSR activities of Toyota Auto Body and the Toyota Auto Body Group so that they can be

more widely known.

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 2015 through March 2016; 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 in August 2015)

(Re-designed model avai lable for sale in September 2015) (Re-designed model avai lable

for sale in December 2015)

Land Cruiser 200 Lexus LX Prius rotating and tilting passenger seat vehicle

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Overview

Company Name

Head Office

Established

Representative

Invested Capital

Total Sales

Manufacturing

Facilities

Toyota Auto Body Co., Ltd.

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

August 31, 1945

President, Keiji Masui

10.371 billion yen

1,831.9 billion yen(FY2015 consolidated)

Head Office／Fujimatsu Plant、Inabe Plant、Yoshiwara Plant、Kariya Plant、

Kotobuki New Development Center

Main Products

〔2008〕〔1990〕〔2002〕〔2001〕〔2014〕〔2001〕

〔1969〕〔1998〕〔1967〕〔1984〕〔2000〕〔2007〕

Rotating and tilting passenger seat vehicle

Freezer and refrigerator van

〔1994〕〔2001〕〔1968〕〔2015〕〔1979〕〔2009〕

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

Vellfire Estima Voxy NoahAlphard Esquire

Coaster Land Cruiser 200

Land Cruiser70 vanHiace Lexus LX COMS

Side Lift-up SeatVehicle

Wheelchair-accessibleVehicle(Rear Slope type)

Well Carry（Special Purpose Friend-Matic Vehicle）

Wheelchair-accessibleVehicle(Rear Lift type)

Minivans

SUV Small EV

Assisted mobility vehicles

Commercial / Commuter vehicles

Special PurposeVehicles

Company Outline

Product Lineup

Related Information

1945 1955 1965 1975 1985

250

0

500

750

1000

1995 2005 2015

722

(FY)

Volume of sales(Thousands of vehicles )

1945 1955 1965 1975 1985

5000

0

10000

15000

20000

1995 2005 2015

17500

(FY)

Number of employees ( consolidated )

(Number of employees)

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 BasesDevelopment 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

Head Office/Fujimatsu Plant100, Kanayama Ichiriyama-cho Kariya City, Aichi Prefecture

Main ProductsEstima、Voxy、NoahEsquire、Land 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 200、Lexus LXLand Cruiser 70、Coaster

Domestic and Overseas Consolidated Subsidiary Companies

Domestic Consolidated Subsidiary Companies

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

〔1940〕Gifu Auto Body Co., Ltd.（Kakamigahara city, gifu Pref.）＜Manufacture and sales of automobiles and automotive parts＞

Tokai Utility Motor Co., Ltd. （Anjyo City, Aichi Pref.）〔1954〕

＜Manufacture and sales of special purpose vehicles＞

Toyota Body Seiko Co., Ltd.（Takahama City Aichi Pref.）〔1992〕

＜Manufacture and sales of seat and other parts＞

Ace Industry Co., Ltd.（Kariya City, Aichi Pref.）〔1974〕＜Manufacture and sales of parts, equipment, and other products＞

Tokai Parts Industry Co., Ltd.（Kariya City, Aichi Pref.）〔1999〕＜Manufacture and sales of stamped and sheet-metal parts＞

TABMEC Co., Ltd.（Kariya City, Aichi Pref.）〔1985〕＜General maintenance of buildings and associated equipment＞

Toyota Auto Body R&D co., Ltd.（Kirishima City, Kagoshima Pref.）〔1990〕＜Design and testing of automotive parts＞

Life Service & Security Corporation（Kariya City, Aichi Pref.）〔2000〕＜Management of office and employee recreational acilities, security agency work＞

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

Inatec Co., Ltd.（Inabe City, Mie Pref.）〔2000〕＜Environmental analysis and measurement certification＞

Life Creation Co., Ltd（Toyota City, Aichi Pref.）〔1993〕

＜Operation of off-road facilities＞

Life Support Co., Ltd.（Anjyo City, Aichi Pref.）〔1999〕

＜Sales of nursing care supplies, home helper services＞

GI Service Co., Ltd.（Kakamigahara City, Gifu Pref.）＜Employee recreational, plant maintenance, insurance and other services＞

〔1988〕

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

Overseas Consolidated Subsidiary CompaniesThai Auto Conversion Co., Ltd.

（Thailand）〔2004〕＜Manufacture and sales of special purpose vehicles＞

PT.Toyota Auto Body-TokaiExtrusion（Indonesia）〔2005〕＜Manufacture and sales of rubber and resin molded parts＞

PT.Sugity Creatives

（Indonesia）〔1995〕＜Manufacture and sales of vehicles and resin parts＞

Chun Shyang Shin Yeh Industry Co., Ltd. （Republic of China (Taiwan)）〔1997〕＜Manufacture and sales of stamped and sheet-metal parts, dies, and other products＞

Toyota Auto Body(Malaysia)Sdn. Bhd.（Malaysia）〔2005〕＜Manufacture and sales of stamped, sheet-metal, and resin parts＞

Auto Parts ManufacturingMississippi Inc.（U.S.A.）〔2007〕＜Manufacture and sales of stamped, welded, and resin parts＞

Toyota Auto Works Co., Ltd.

（Thailand）＜Manufacture and sales of vehicles＞

〔1988〕

PT.Resin Plating Technology

（Indonesia）＜Manufacture and sales of resin plated parts and resin parts＞

〔2013〕

＜Sales of assistive devices＞〔2011〕

Tab Minth Mobility EquipmentCo., Ltd.（China）

＜Manufacture and sales of seat parts and other products＞

〔2015〕

Seat Metal Parts Thailand Co., Ltd.（Thailand）

＊Wholly-owned subsidiary of our subsidiary Toyota Body Seiko Co., Ltd.

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 Cars

I 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

remained dedicated to producing cars that transport cargo and carry people, providing essential support to

people in their everyday lives. This spirit has driven us to develop and produce cars that meet the needs of

our customers, including the all steel body BX Series trucks and the monocoque body commercial vehicle

Hiace van, both of which were the first of their kind in Japan, and the Estima with the world's first midship

component layout.

The environment surrounding our business is undergoing large changes including energy and resource

problems, an aging society, and the progress of globalization that is bringing diversifying values. Toyota

Auto Body intends to face these issues directly and provide environmentally-friendly mobility freedom and

happiness to all people. We will contribute to a prosperous society by creating cars that are safe,

dependable, and fun to drive.

The re-designed model Land Cruiser 200 that was released in August of last year, and the Lexus LX that is

being sold in Japan for the first time, have both been highly popular. With further advances in safety systems

and other equipment, while also maintaining the high durability needed in harsh environments around the

world, these are cars that people can feel safe riding in.

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 that provides a boost to environmentally friendly living convenience and will

contribute to the creation of prosperous cities.

In terms of creating vehicles that are exciting and fun to drive, at the Tokyo Motor Show in October of last

year, we exhibited a concept car that manifests our ideas for “New Lifestyles Together with Cars” that drew

the interest of many visitors.

Aiming to create ever-better cars that exceed customer expectations

President

Keiji Masui

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■Top Message

We understand that preservation of the Earth's environment is an important issue for the creation of a

prosperous society, and believe that earning the trust and love of local communities is important in order to

be a company which is needed by society. For these reasons, we carry out a number of activities that

contribute to society, centering on the environment, welfare, and raising the next generation.

For the environment, in product development we are working to develop weight-reducing technologies that

will contribute to higher fuel economies, and for product designs that maximize recycling. In order to

reduce energy use and CO2 emissions at our plants, we are working to shorten the painting process, utilize

energy-recycling air conditioning, and incorporate other energy-saving and low-CO2 production

technologies. This year in March, we formulated the sixth Toyota Auto Body Environmental Plan, and have

set target values for each process from design to production. We are now launching new programs to

achieve these targets.

We are also working for environmental preservation, including the company forest activities in Aichi, Mie,

and Kagoshima prefectures, and the mangrove planting activity conducted in cooperation with subsidiary

companies in Indonesia. We also hold a rice-farming experience in which local elementary school students

participate, as well as environmental workshops and other activities using our Fure-Ai Park (Fureai:

interaction, Fureru: touch and feel, Ai: love) located next to Head Office Plant in collaboration with

governments, and were awarded the Silver Prize at the Aichi Environmental Awards in February 2016. We

intend to deepen our relationships with members of the local communities, and hope that this park will be

an enduring forum for interaction and communication.

In local communities, we operate a transport service for wheelchair users using the assisted mobility

vehicles that we produce, make visits to elderly nursing care facilities, and engage in volunteer cleaning

services of wheelchairs and the like. We also utilize the expertise that we have developed internally for

exhibits at local manufacturing exhibitions, and accept plant tours primarily by nearby elementary schools to

learn about automobile manufacturing. In addition, we are carrying out activities to support the raising of

future generations, including sports support provided by our company’s sports clubs.

Contributing to a prosperous society

In August of last year, Toyota Auto Body celebrated the 70th anniversary of our founding. We are

profoundly grateful for the support we received from our customers and the many people involved with us

who made this success possible. In April of this year, the “CV Company”* business unit that centers on

Toyota products was launched, and our company plays a key role in its operations. This has offered us the

opportunity for great advances by linking our philosophy of “contributing to a prosperous society by

creating ever-better cars” and our passion (DNA) to future achievements. We are renewing our dedication

to a global supply of assisted mobility vehicles and compact EV in addition to minivans, commercial

vehicles, and SUV, in order to continue providing support for everyday living around the world and create

ever-better cars.

For this purpose, I would like to ask for everyone's continued support and guidance.

For the future

June 2016

* CV Company: CV is an acronym for “commercial vehicles”, a category which includes minivans for passenger use. This business unit is responsible for creating cars to provide many kinds of support for everyday living around the world, meeting a range of needs ranging from commercial needs to passenger needs.

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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 in order to ensure quick decision-making for our business development strategy and to speed up our operations.

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.

We have also established the CSR Committee, which is comprised of all board directors and auditors, as well as four commit tees below the CSR Commit tee for deliberating and taking action on important issues.

* Business Continuity Management. This activity formulates a business continuity plan (BCP) for recovering the functions of all divisions, and carries out training and other programs to operate a PDCA cycle and carry out review and improvement.

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/2016/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.

Placement Product DevelopmentToyo 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 we have unified ourselves to work on “Creating Ever-Better Cars.”

Our customers’ smiling faces

MarketabilityStyling

Safety

Environmental performance

Quality UsabilityDurability Off-road

performanceReliability

Creating high-quality cars that provide safety and security

Safety and Security QualityDevelopment (planning, image design, technical design)

Meeting the expectations of our customers

Creating Ever-Better Cars

Invest igat ing how customers use our products

Act iv i t ies to ins t i l l the “customer first” mentality in all employees (example: exhibits of quality case studies)

From development to quality assurance

Creating plans based on market investigations

Imaginative designs

Making models that express the design image

High-quality designs

Using CAE to achieve both stylishness and performance

A c t u a l v e h i c l e s a r e produced to confirm safety performance(E.g.: Collision testing)

Performance verification using actual vehicles based on predicted usage and environmental conditions

Product planning Image design Technical design Testing and evaluation Quality assurance

Customer evaluations:Positively evaluated at IQS (Init ial Quality Surveys) conducted in the US and Japan by J.D. Power.

(E.g.:Poor road condition testing)

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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 model Land Cruiser was released in August 2015, and re-designed model LX in September 2015.)

Aiming to Create Cars that Exceed Customer Expectations

Meeting Customer Expectations

Working to Satisfy Customers around the worldThe re-designed model Land Cruiser and LX are used in

harsh environments around the world.

The Land Cruiser features new advances while also

inheriting the DNA of earlier models.

The Lexus LX is an evolved model suitable to be our

flagship SUV, and is making its first appearance in the

Japan market.

Making best use of our customers’ valuable opinions and feedback

In response to the many different opinions that we

receive from customers, our development engineers

travel to the markets themselves to observe how the cars

are actually used and listen directly to the customers.

Interviews with local (Kazakhstan) customers about the conditions of product use, and check of interior conditions

• Nice, large interior• Good stylish design• Visibil ity and field of view from the driver’s seat are excellent.• A higher-grade interior would be better.

...others

＜Feedback from customers:＞

The re-designed model Land Cruiser features a

horizontally-styled plated gri l le together with LED

headlights and daytime running lights.

The re-designed model LX features the characteristic

Lexus design for the front mask, and the iconic large

spindle grille gives it a higher-grade feel.

In the interior, a 4.2-inch multi-information display is

used, together with a large rear seat entertainment

system and switch layout that groups functions together,

delivering improved convenience and a further feeling of

quality.

Responding to customer demands for a higher-grade feel and improved ease of use

Product Planning Center　Tadanobu Ide

Comment by a Land Cruiser and LX developer

I clearly felt that there is much that we can learn from how our products are used in the market, and understood the importance of the customer perspect ive, in order to carry out product development which does not interfere with the reliability that we have developed over many years.

Land Cruiser LX

Rear seat entertainment system

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Meeting Customer ExpectationsResponding to customer demands for even higher safety performance

Creation of the Toyota Safety Sense P package for active safety performance

When the second-row and third-row seats are stored

[Preventing accidents and reducing

damage in the event of a collision]

Detection of vehicles and pedestrians provides

support for avoiding accidents and reducing

damage.

[Tracking driving that maintains a

suitable following distance]

Millimeter-wave radar identifies the car ahead,

allowing this car to follow behind it at a suitable

distance by matching the speed of the vehicle

ahead within the set speed range.

[Lane departure alert]

A buzzer and screen display warn the driver

when there is the possibility that the vehicle will

depart the lane.

[Contributing to early detection of pedestrians at night]

Automatic switching between high beams and

low beams helps support the early detection of

pedestrians and other obstacles at night.

Seats can be rearranged to expand the luggage compartment.

The third-row seats can be split between left and right sides and folded

up, while tumble-up storage moves the second-row seats out of the way.

This creates an expansive space that can be used to carry large amounts

of baggage or other cargo.

1100mm

990mm

1685mm

(Automatic high beams)

Detection of car ahead or pedestrian

Possibility of collision

Large possibility of collision

Collision is unavoidable Collision Millimeter-wave radar

Monocular camera

Warning buzzer and screen display to notify driver of danger

A: Powerful assistance to brake depressing force is provided.

B: Car decelerates even if the brake pedal is not depressed.

Ａ

Ｂ

Elapsed time

[Constant-speed driving]

100km/h(set speed) No car ahead 100→80km/h 80km/h

Car ahead detected

[Deceleration control]

Begins constant-speed driving when the desired speed is set.

When a car ahead travelling at a slower speed than this car is detected, it tracks that car and maintains a suitable following distance.

Topics

Victory in the Production Vehicles Class at Dakar Rally 2016

Said to be the toughest race in the world, the

Dakar Rally has proven the Land Cruiser durability,

off-road performance, and reliability.

3 consecutive victories in 2014 ‒ 2016!

In th is race, we use eco-f r iendly 100%

biodiesel fuel that is refined from used cooking

oil provided by people in areas nearby our

company.

Dakar Rally HP

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

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We are continuing to develop cars that can take our customers around the world safely and securely to their destinations and back.

For the Safety and Security of Our Customers


Aiming to Create Cars that Customers Can Feel Secure in Driving on All Kinds of Roads and in All Kinds of Environments around the WorldInvestigating the roads, environments, and how our products are used in countries around the worldThe developers themselves travel to countries around the world to investigate the local road conditions, environments, and ways in which our products are used. They gain input directly from the customers and utilize it in product development.

<Investigating roads, environments, and how products are used>

A muddy road where tires disappear Transporting large loads on unpaved roadsChecking suitability with a wide range of roads and environmentsBased on the results of on-site investigations and input from the customers, the developers create models for all kinds of worldwide roads, environments, and ways of use, and check product suitability in laboratories, on test courses, and by other means. <Checking performance in a laboratory>

For Customer Safety, Working to Prevent Accidents and Reduce Damage in the Event of a CollisionActive safety

The re-designed model Land Cruiser includes the “Toyota Safety Sense P” accident avoidance support package, and as a result it gained a perfect score at the JNCAP* active safety performance evaluation and obtained the highest rank of ASV+.

[We obtained the highest rank of ASV+ at the JNCAP* active safety performance evaluation.]

*JNCAP: Japan New Car Assessment Program

Collision safetyIn order to protect the passenger space in the event of a collision, we have increased the cabin strength and used a structure that absorbs a collision by allowing the front of the cabin to fold when crushed.

In the development CAE analysis is used extensively to study a variety of structural proposals, which are verified in collision tests using actual vehicles.

Collision test CAE analysis

Reliability Laboratory 　Koji Sakamoto

Comment by a strength and durability evaluator

I have travelled to the Middle East and Africa to observe how the Land Cruiser is used in these regions. In one country, I saw people transporting essential living supplies in an environment that was beyond imagining, and clearly understood the importance of products that do not fail no matter how harsh the environment. I will continue working in the future to improve performance to meet customer needs.

Results of Programs for Creating Safe Vehicles

Reproducing road conditions and checking for vehicle damage [Video]

http://www.toyota-body.co.jp/english/csr/pdf/2016/reproduction_test.wmv

http://www.toyota-body.co.jp/english/csr/pdf/2016/anzen_seika_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 Commercial Vehicles that are Designed for the Ways the Customers Use Them


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

Responding to requests for Hiace improvements

The Hiace is widely used not only in Japan but around the world. To meet customer expectations, we conduct on-site investigations of the actual products and obtain customer input at an early stage, and apply the results to product development. Based on investigations of the customer markets, for shuttle and tourism

use, we installed 4 captain’s seats and a long sliding mechanism to create a comfortable interior space that matches customer preferences. [Models for SE Asia and the Middle East (from Jan. 2015)]

[Creating a luxury wagon with the ultimate in comfort and roominess]

466mm slide 766mm slide

Responding to requests for Coaster improvements

The Coaster is a popular model in Japan and around the world. In order to apply customer requests and detailed information about how the vehicle is used to product development, we are strengthening programs such as on-site investigations of the actual products, and obtaining customer input at an early stage.

[Larger luggage space]

830mm

In response to demands to carry more luggage, we created a luggage space in the rear and ensured that luggage could be easily loaded and unloaded through the double doors.[25-passenger models in Japan, 26-passenger models overseas (from Jan. 2015)]TOPICS

Hiace was awarded the Long Life Design Award at the Good Design Award (2015*).

For nearly a half-century since it was born in 1967, the Hiace has been transporting people and cargo around the world.

It is used by large numbers of customers in more than 150 countries, including Japan, Asia, Africa, and Central and Latin America.

It is also contributing to society as ambulances and assisted mobility vehicles, and has been customized in many ways by car enthusiasts.

* This was the first time in 6 years that a vehicle received this award.[Wagon R (2009), Crown Comfort / Jimny (2008)]

Tough and strong, simple yet refined ‒ designed for functional beauty

A wide range of specifications and designs to meet all kinds of customer needs

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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, facilities for the elderly, and dealerships 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.

Verifying rainy day operability

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

<Investigating how customers use our products and applying the results to development>

<Japanese and overseas promotion activities>

Explaining the characteristics using an actual vehicle(Barrier-free exhibition in Japan)

Introducing an assisted mobil i ty vehicle to a customer in Beij ing (China International Exhibition of Rehabilitation, Nursing & Healthcare)

- Want to be able to operate quickly on rainy days.

- Standing up and sitting down puts a large strain on the legs.

Customer input

2

1

TiltingRotating

11

21

3

Universal Design Awards (Germany)

1 Tilting keeps the position of the buttocks high.

2 Because the feet touch the ground, standing up is easy.

3 Allows boarding and exiting while also saving space.

<Support for standing up and sitting down (rotating and tilting seats)>

Manual operation allows the seats to be operated quickly.

Space-saving

Our subsidiary Tokai Utility Motor Co.,

Ltd. proposes ut i l i ty vehic les and

mul t ipurpose vehic les sui table for

commuting and recreation to meet a

broad range of customer needs.

[Special purpose vehicles]　Supporting everyday living for more fulfilling lives

Mobile sales vehicles Airport utility vehicle Overseas vehicle for patient transport

Conversion & Mobility Vehicle Center Yukio Inaguma

Comment from a developer of assisted mobility vehicles

The addition of a tilting mechanism makes it easier to get into and out of the vehicle, and also reduces the space required for boarding. This makes it easier to board and exit the vehicle in ordinary parking areas. Another key concept for development was “ordinary vehicle”, meaning that riding comfort must be as good as the base vehicle.In the future, we will continue to develop assisted mobility vehicle that truly please the customers.

Lineup of Assisted Mobility Vehicles and Equipment

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/products/special.html

http://www.toyota-body.co.jp/english/csr/pdf/2016/TUM_english.pdf

14



TOPICS

Exhibiting at the Tokyo Motor Show as we aim to create cars that deliver happiness and excitement!

The entire company worked together and exhibited five cars based on the exhibit concept of “Active Life Vehicle: Vehicles with distinctive individuality that offer new lifestyles ” . The focus of the exhibit was on how the originality of a car can open up new life scenes for the customer.

Exhibit of concept cars focused on the future of product development

Open cruiser with high-grade interior filled with a sense of openness and freedom＜ALPHARD Hercule Concept＞

Night exclusive wagon for a taste of luxury in a top-class space＜HIACE PLATINUM LOUNGE＞

Cross-over that brings advanced styling to the Land Cruiser 70 Series＜LAND CRUISER XJ700＞

Seven-seater cross-over for urban and active lifestyles＜NOAH ACTIVE CROSS＞

Multipurpose compact mobility connecting people, cars, and society＜Coms CONNECT＞

Design Division Kenichi Onoue

Comment from the person in charge of the Tokyo Motor Show exhibit

The exhibit was a success. It was highly popular and generated a lot of comments from the visitors. We will continue to come up with new ideas that will delight the customers as we work to create ever-better cars.

2015 Tokyo Motor Show HP

http://www.toyota-body.co.jp/tms2015/

15


We have begun a range of verification testing using COMS as we travel on the road to a low-carbon society. 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.

Preparing for a New Kind of Automotive Society


The environmentally-friendly COMS is a new means of transportation for deliveries and sales.

New societies and lifestyles using COMS are expanding in locations across Japan.

Used for home delivery of shop merchandise (Seven-Eleven)

Used for regular package delivery (Yakult)

Used as transportation for sales staff (Bank of Nagoya)

Aiming to expand the ways in which COMS a re used, we a re us ing the Ultra-Compact Mobi l i ty Cert ificat ion S y s t em o f t h e M i n i s t r y o f L a n d , Infrastructure, Transport and Tourism and conduct ing ver ificat ion test ing of a package delivery COMS with increased cargo capacity, as well as a two-seater COMS for government serv ices and ride-sharing purposes.

Two-seater COMS (ride-sharing)

Use for mail collection and delivery (Japan Post)

Ise City, Mie Prefecture

Tottori Prefecture

Tsuyama City, Okayama Prefecture

Hagi City, Yamaguchi Prefecture

Satsumasendai City (isolated island), Kagoshima Prefecture

Satsumasendai City (city center), Kagoshima prefecture

Minami-Alps City, Yamanashi Prefecture

Tsukuba City, Ibaraki Prefecture

Toyota City and others, Aichi Prefecture

Anjo City, Aichi Prefecture

Nagoya City, Aichi Prefecture

Verification testing using the Ultra-Compact Mobility Certification System of the Ministry of Land, Infrastructure, Transport and Tourism

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.We are also producing components developed using the original ultra-precise stamping technology that was developed by Toyota Auto Body.

Production of the core components is gradually being increased so that i t can benefit a greater number of customers.

Creating the Ultimate Eco-Car

3D fine-mesh flow field (magnified view) Fuel cell stack

Development and production of the core components for fuel cells

<Toyota Mirai fuel cell vehicle>

(Image provided by Toyota Motor Corporation)

16


We are working to create global No. 1 quality products that our customers can always use in safety and with confidence. We check for customer input regarding actual products in markets around the world, and carry out daily activities for improvements and preventive action, and work to ensure that all employees share the understanding that “quality is the lifeline of a company”.

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.

To mark the 70th year since Toyota Auto Body was founded, the fiscal year 2015 Quality Lecture was conducted by the director in charge of the Quality Assurance Division based on the theme of “For Customer Smiles”. The lecture looked back on past quality programs of the company and established a shared direction for future efforts.

Putting Customer First into Practice Throughout the Company<Quality Lecture> <Exhibit of quality case studies>

Participants at the lecture Exhibit of quality case studies using actual parts

The Toyota Auto Body divisions responsible for development, production engineering, and production, and our suppliers, work together beginning from the development phase so that production work can be performed easily.

Creating High Quality Cars at the Development Phase

<Example of re-designed LX improvements made during the design phase>

<Improving workability for new-design parts>

Instrument panel assembly processThe outlet port duct shape was elongated, allowing the long part to be temporarily set down.

<Improvement>• Actual parts were checked by the divis ions responsible for development, production engineering, and production, and an improvement was made.

Shape which allows the part to be temporarily set down

New-design part

<Comment from an operator>

Because the part is long, if I hold i t in one hand whi le I connect the wi r ing on the reverse side, there is the risk of scratch ing the inst rument panel.

In cooperation with Toyota Motor Corporation, we obtain input from customers around the world and apply it to product development. During fiscal year 2015, staff from our Quality Assurance Division investigated commercial vehicle markets in 5 major regions (11 countries) worldwide in order to directly determine customer and market needs on-site and hands-on.

Applying Customer Input to Our Products

<Examples of local on-site, hands-on investigations of customer input by the Quality Assurance Division>

OmanOman

AustraliaAustralia

The PhilippinesThe PhilippinesMexicoMexico

PeruPeruAngolaAngola

ArgentinaArgentina

SingaporeSingapore

BahrainBahrainU.A.E.

ThailandThailand

Sharing market information with an agent (Angola)

Interview with customers (Argentina)

There is absolute trust in the Hiace and Land Cruiser...

Customers are sensitive to visible corrosion...

Quality Assurance Division

Yoshinori Sakai

Comment from a staff responsible for local investigations

I conducted interviews and co l lec ted in fo rmat ion in countries I had never been to before, and was able to obtain valuable customer opinions regarding quality.I wi l l continue to put the customer first and work to improve quality in the future.

Examples of Quality Programs: JiKotei Kanketsu activities, EDER activities, customer evaluations

http://www.toyota-body.co.jp/english/csr/pdf/2016/hinshitsu_english.pdf

17


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 Purchasing

Towards creating ever-better cars

We 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.

CreatingEver-Better Cars

Strengthening planning and development capabilities

Production innovations

Expansion of overseas business

relatedactivities

Basic policy

New product exhibitions

Policy explanation meetings

Joint development and study groups

Open and fair

Mutual trust

Promoting localization

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 suppliers can examine the parts and understand our work on creat ing cars. In cooperat ion 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

In order to share changes at our company and our purchasing policy with suppliers, we hold the Purchase Policy Presentation Meeting (March of each year), Management Lecture (twice annually), and CSR Study Meeting (twice annually), and other meetings.

To make clear what we expect from our suppliers, we have created and implemented the Supplier CSR Guidel ines 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 suppl iers. 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 Safety Study Meeting

In order to further reinforce our system of open and fai r transactions and relationships of mutual trust, we ask approximately 340 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

18


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

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.

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

Action declarations of individual work priorities are made prior to report meetings and other meetings to improve understanding and ensure broad awareness.

Activities for Absorption and Establishment of “Our Priorities”

Action declaration at the start of a company explanation meeting for plant visitors

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

http://www.toyota-body.co.jp/english/csr/pdf/2016/BasicMap_english.pdf

19


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 Endeavors

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 (CSP)” 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 t r a i n i ng . Beg i nn i ng f r om t he fi f t h y ea r , intermediate-level training and manager training for group leaders is carried out. The use of this step-up tra in ing aims to further strengthen development abilities.

Technical Development of Professional Personnel

Vehicle disassembly training for entry-level employees

* CAD：Computer Aided Design

Mid-level employee training (electrical control)

Training Professional Personnel

Aiming to create minivans, SUVs, and commercial vehicles that are on the world's top level, we conduct technical training through genchi genbutsu (going to see the actual site and actual object).

During first-year new employee training, trainees learn about vehicle disassembly and other basic technical learning. Beginning from the second year, they learn about work methods and concepts from senior employees. Technical training is conducted on every level in order to improve production technical skills.

Production engineering professionals

Intermediate-level training (collision safety)

Manager training (group leader training)

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

Beginner-level training (CAD*)

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)

20


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 National Skill Olympics: Automotive sheet-metal working(2015 Chiba competition)


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 putting effort into basic knowledge training in order to instill an awareness of responsibilities and safety among employees.Aiming to develop future leaders, we also select persons with a strong desire to challenge themselves to participate in the National Skill Olympics.

Educating new employees

Skills and knowledge training are carried out in stages according to the employees’ qualifications, and training is conducted so that employees repeatedly acquire the necessary basic principles for practical work.

Mid-level employee training

The company-wide skills competition is an opportunity for refining skills. Employees from subsidiary companies in Japan and overseas also participate in this competition. Participants compete in 10 job categories including body work, painting, molding, assembly, and maintenance and engines as they seek to improve their skill levels.

Refining skills

We also conduct training for local shop floor workers of overseas subsidiaries, as we work to pass on our monozukuri (manufacturing) knowledge.

Japanese engineering trainers are sent to conduct local training, and local trainers receive training in Japan.

Training professionals for overseas production

Basic skills training for new employees:

National Skill Olympics:

Company-wide skills competition:

Overseas personnel training:

Molding category Maintenance and engines category

Training in Japan (Malaysia) Training by instructors sent overseas (USA)

Grade 1CL/CX

Grade 3TL/EX

Grade 1

Grade 2

Grade 1

Grade 2

Years of experience

New employees

Grade 2GL/SX

21 43 65 87 109 1211 1413 150

Upper-level engineers

Intermediate-level engineers

Entry-level engineers

Production engineer training system (step-up training diagram)

New employee training

Mid-level employee training

Entry-level engineers

Intermediate-level Grade 2

Intermediate-level Grade 1

Upper-level Grade 3

Refining skills(Company-w

ide skills com

petition)

QC circle activities

Working + thinking

Working + thinking + evaluating

Working + thinking + evaluating + improving

Working + thinking + evaluating + improving + instructing

We are working to reinforce the strength of our workplaces, and to create bright, enjoyable, and energetic workplaces that are the base for our company’s activities.

Improving Local Capabilities and Teamwork

To mark the 50th anniversary of our QC circle activities, last year we worked for quality improvements at all affiliated companies in Japan and overseas, and are linking them to further advances.

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 5 consecutive years (a first for Japan).

External QC circle competition (All Japan QC Circle Conference)

＜All Japan QC Circle Conference＞

Presentation by overseas affiliated company (APMM: USA)

Gold prize-winning Rainbow Circle (Paint Section, Inabe Plant)

<Toyota Auto Body Group QC Circle Conference>

21


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: 4

Bahrain: 1

Australia: 1

USA: 27China: 4

Taiwan: 3

India: 1

Malaysia: 10

Indonesia: 17

Thailand: 13

Numbers of Toyota Auto Body employees assigned overseas:

‘00‘10‘12‘14‘160

50

100(Number of employees)

(FY)

14

4871 75 81

Numbers of 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, 32 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

Through work overseas, I have learned not only about the difficulties of communication, but also about product ion i s s u e s r e s u l t i n g f r o m differences in cul ture and environments.I hope that I can use the knowledge and understanding of issues that I have gained from this valuable experience in my work after I return to Japan.

Production Planning & Management Dept., Production Control Div. Shohei Nakano (Thailand: TMAP-EM)

<From January 2016: Fifth-year trainees in training>

Mr. Nakano (second from right) explaining the production conditions to local staff

Engineering Service Dept., Final Assembly Div.Tomoaki Shimizu(N. America: APMM)

Mr. Shimizu (front) checking with local staff about process control

Mr. Takayanagi (second from right) discussing the handling of salary negotiations in cooperation with local staff

Personnel Dept., Human Resources Div. Kentaro Takayanagi(Indonesia: TMMIN)

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

Loaning employees for design trainingIn order to promote the independence of overseas affiliates, Toyota Auto Body conducts “Global Training” in Japan for local leadership candidates.

Receiving overseas trainees

In order to handle the global projects that are growing in number year by year, trainees ga in pract ica l exper ience a imed a t deve l op i ng t he idea-deve lopment ab i l i ty , e x p r e s s i o n s k i l l s , a n d presentation skills needed to compete globally.

Beginning from this fiscal year, we have launched a “Sk i l l s Cou r se” f o r trainees to experience the dedication to safety and quality, and the benefits of mutual help and good order, through production line training.

Trainee (at right) discussing design ideas with local staff

Trainees and members of the Inabe Plant workplace which received them (ceremony at the start of Global Training)

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 skil ls 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)

22


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 through more active communication in both formal and informal settings.

Communication Activities for “Creating a Vibrant Workplace”

Aiming for Cheerful, Fun, and High-Spirited WorkplaceWe are working to expand communication that transcends barriers between workplaces and positions and to create a sense of unity through formal activities such as personal meetings with superiors and small-group activities, and through informal activities such as various events.

In particular, because fiscal year 2015 was a year of thanks commemorating our 70th anniversary, there were frequent activities for expressing gratitude to our roots and coworkers, and connecting these feelings of gratitude to future dreams.

Company-wide:All Toyota Group:

Toyota Auto Body Group Futsal Tournament, with affiliates also participating

Sports club supporters

The all-company sports day (Fure-Ai Sports Day) with more than 10,000 participants

The All Toyota Big Holiday with sports competitions between companies and a wide variety of events

Business site events:

Fujimatsu District “Happy Festa” ‒ an original event utilizing the unique characteristics of the office

Yoshiwara Plant ‒ Family plant tourInabe Plant ‒ Single characters representing gratitude

Division events:

Development division relay marathon Production division mochi (rice cake) making event

<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

Various events to commemorate our 70th anniversary

TOPICSThe men’s handball club won their second national championship victory, and their first in four years.

Tossed in the air in celebration of victory

23


Toyota Auto Body is carrying out activities to promote diversity, so that a broad range of personnel can work together happily and worry-free. We are also working to build awareness of how to be good members of society.

Promoting Diversity and Awareness Education for Being Good Members of Society

Activities for diversity

Creating processes that are easier to perform:We are carrying out process improvements that allow anyone to work comfortably, so that all employees can continue to work in good health.

Creating workplace awareness for preventing loss of physical strength:Body awareness seminars are held for employees in thei r 40s and 50s, provid ing opportuni t ies for systematic thinking about ways of working, asset formation, and building physical strength beginning from an early stage.

Support for the working styles of older employees

Example of work improvement for reducing physical burdens

Awareness seminar (physical strength)

The number of full-time employees with disabilities in fiscal year 2015 was 180, or 2.24% of the total.

The company is actively working to support active work by disabled persons, including through internships for interested high school students and through sign language classes for managers in workplaces where hearing-impaired employees are assigned.

Promoting the hiring of disabled persons

Based on the Act Concerning Promotion of Women’s Career Activit ies that took effect in Apri l 2016, discussion meetings for female employees were established as opportunities for female employees to exchange information about ways of working and career development, and we are providing support for mutual skills improvement.

We are carrying out working environment improvements to support employees who keep working while raising children by creating systems such as the internal Tacchi-chi House daycare center, a short working shift system, and a maternity leave system.

Promoting advancement of female employeesExperiencing work through internships Sign language class

Discussion meeting for female employees

Tacchi-chi House

Introduction of improved work seats

In-house training (new employee training)

Being Good Members of Society

Outside training

A iming to improve awareness o f “Respect fo r 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.We also actively send employees for outside training and are working to develop specialists in the “buraku” discrimination problem and other human rights issues.

Deepening Awareness of Human Rights

Support for Pregnancy, Childbirth and Child Raising

http://www.toyota-body.co.jp/english/csr/pdf/2016/ikuji_support_english.pdf

24


Creating Strong Workplaces with a High Awareness of Compliance and Disaster Readiness

Improving 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, we have created tools that allow us to carry out voluntary compliance activities, and also carry out educational activit ies and regular monitoring activities, and take other steps to maintain and improve compliance activities.

Overseas, we have launched programs aimed at improving employee awareness based on the programs used in Japan, and conduct training for employees who are assigned overseas.

Expanding programs aimed at ensuring compliance

<Domestic compliance activities>

Compliance educational activity using the in-house newsletter

Compliance training conducted by outside instructors (lawyers) for employees who will be assigned overseas

<Programs to improve compliance overseas>

In order to make training more realistic, in 2015 we incorporated first-aid for injured persons and transport using hand-drawn trailers, simulations of cases when some parts of an escape route cannot be used, and smal l-group bui ld ing evacuat ions that facilitate 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.

Initial response and comprehensive disaster drills (Toyota Auto Body)

Initial firefighting training

Comprehensive Disaster Drills Vital in Case of a Large-scale EarthquakeAs one part of our risk management activities, we in the Toyota Auto Body Group are working to expand and strengthen measures in preparation for a large-scale disaster resulting from a Nankai Trough Earthquake. In 2014, we advanced the position of the Disaster-Prevention Committee to form the BCM* Committee, and are preparing disaster mitigation, initial response, and production recovery plans.

Training for transporting injured persons by hand-drawn trailer

Training for first-aid using triangular bandages

Evacuating all employees to outdoor evacuation site→ Training for centralizing safety confirmations and reporting to the disaster response team leaders

*： Business Continuity Management

<Basic policy for BCM activities> <BCM system and main activities>

(1) Humanitarian support (lives come first, rescue)

(2) Rapid recovery of disaster-affected areas

(3) Recovery of our company’s operations

BCM Committee

Disaster mitigation: Earthquake-resistant measures for buildings and equipment

Initial response: Construction of an initial response system, training for safe evacuation and safety confirmations, regional coordination

Recovery: Strengthening of recovery system for company-wide operations and production, strengthening the supply chain

Toyota Auto Body Group Action Policy (Issued March 2005)

http://www.toyota-body.co.jp/english/csr/pdf/2016/TYG_houshin_english.pdf

25


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

Safety for All Employees

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

We have also invited instructors from Du Pont, a company well known for safety, to conduct lectures in order to further increase the level of safety awareness.

Safety first principle communicated at top management training

Company-wide Safety Rally in July 2015 Safety lecture in December 2015

We a re ca r r y i ng ou t ac t i v i t i e s unde r t he name “Po-ke-te-na-shi”*1 to help each employee protect him or herself with five basic actions such as pointing and calling to indicate intentions, and holding the handrail on stairs.

In 2015, on the occasion of the 70th anniversary of our founding, we distributed safety brochures to all employees in order to share and confirm our company’s safety activities and the difficulties that our predecessors faced.

Steps are also being carried out to improve the sensibility of our workers, such as by having supervisors check whether the workers are able to instantly identify the possible risks at their own process and the measures necessary to avoid them.

Activities to improve safety sensibility of all employees

“Hold the handrail when using stairs” ‒ Po-ke-te-na-shi activities

Checking whether an operator can recite the risks of his own process

Safety brochure

*1 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)

Reciting safety slogans at a safety conference

Safety for business partnersIn order to eliminate dangerous incidents on company grounds, we operate safety conferences in cooperation with suppliers, forklift study meetings for transport agents, and are promoting steps to prevent accidents.

Forklift study meeting

Meeting prior to equipment installation in Malaysia (TABM)

Safety for overseas affiliatesFor safety during equipment installation work, meetings which involve the end workers are held prior to the work, and steps are taken to prevent accidents by reliably predicting hazards in advance.

At morning meetings before the start of work, employees form a circle and recite safety slogans, pledging to avoid accidents during work.

Reciting safety slogans at a morning meeting in Indonesia (RPT)

4S activities

Safety and Health Policy Labor Accident Status

http://www.toyota-body.co.jp/english/csr/pdf/2016/anzen_kihon_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/rousai_2011-2015_english.pdf

26


We recognize that the health of our employees is an important element in our quest to create ever-better cars, and provide fine-tuned health follow-up so that they can enjoy fulfilling company lives in good physical and mental health.

Ensuring the Mental and Physical Health of our Employees

For Fulfilling Company Lives in Good HealthWe are carrying out a var iety of act iv i t ies aimed at developing employees who are capable of independently maintaining and improving their own health. These are based on the following key activities: maintaining and improving mental health, improving l i festy le habits (preventing metabolic syndrome), stopping smoking, and the prevention and detection of cancer.

We also hold instructional meetings regarding ways of prevent ing the back pain that occurs of ten 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 tha t emp loyees w i l l come fo r 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 oppor tun i t ies, a iming to create an atmosphere for easily accessible consultations.

Aiming for easily approachable consultation offices

Mental health training conducted in each workplace to improve understanding of workplace scenarios

Health walk (family participation event)

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.

For employees who want to quit smoking, the company and the Health Insurance Association subsidize the cost of treatment, and provide other support that has seen a steadily declining smoking rate among employees.

For building healthy habits

Guidance for stopping smoking using images of smokers’ lungs at a smoking cessation clinic

Colon cancer screenings (fecal occult blood tests) are conducted for employees aged 35 or older, and stomach cancer screenings (upper GI fluoroscopy) are conducted for employees aged 40 or older at no cost to the employees themselves. Tests for early detection of cancer are carried out annually, and outside medical institutions are introduced so employees can receive appropriate treatment.

When employees return to work after treatment, the conditions are checked together with an industrial physician in the workplace to ensure a smooth return to work.

For early detection and treatment of cancer

Fluoroscopy examination using the latest stomach fluoroscopy system

（People）

‘09 ‘13 ‘14 ‘15 (FY)

Reduced by more than 50% in 7 years.

RecurrenceNew

…

Changes in numbers of employees taking mental health leave

（%）

‘09 ‘12 ‘15

Reduced by more than 10% in 7 years.

… … (FY)

Changes in the percentage of employees who smoke

‘13 ‘14 ‘15

Early-stage cancer is detected every year

(FY)

Number of cancer cases detected by company screening

（People）

27

■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.We are expanding our activities that contribute to society in areas (the environment, welfare, and raising the next generation) where the characteristics of the Toyota Auto Body Group can be put to good use.

Aiming to be a Company That is Needed by Society

Activities in the Environment Field

Toyota Auto Body Group companies are continuing to

carry out forest maintenance activities centered on the

locat ions of offices in Aichi , Mie, Kagoshima,

Indonesia, and other areas.

Company forest maintenance activities

Learning about forest maintenance from an employee instructor

Safe woodland thinning and use of tools

[Japan]The forest maintenance activities conducted by

companies in Aichi Prefecture are led by the

employees themselves, and are centered on the

volunteer circle members. Even new participants

can safely experience woodland thinning and forest

maintenance.

[Overseas]In addition to environmental maintenance through

mangrove planting in Indonesia, cultivation of fish,

shellfish, and seaweed in regenerated mangrove

swamps is helping to boost local economies.

Year 2

Year 5

The aquatic environment has recovered to the point where shrimp, crabs, and seaweed can be cultivated.

Activities in the Welfare Field

At our wholly-owned subsidiary Sugity Creatives,

Japanese picture books are translated and donated to

local children.

This activity has continued each year since 2009, and

more than 40,000 picture books had been donated by

2015.

Donations of picture books by the Toyota Auto Body Group

Donation of picture books at a tree-planting event ceremony

Children reading the translated and donated picture books

Using the assisted mobility vehicles that are Toyota

Auto Body products, these employees provide transport

services in support of activities outside the home by

persons who seldom have such opportunities.

In cooperation between the Inabe City Council of Social

Welfare, members of the Toyota Auto Body “Social

Contribution Inabe Block ”, and transport support circle

volunteers, activities are continuing to support activities

outside the home by wheelchair users.

Transport service provided by employee volunteers

Wheelchair users in Inabe City were taken by our company’s assisted mobility vehicles to the Mie Prefectural Museum in Tsu City.

28

■Social ContributionsCreating Opportunities for Activities

The Fujimatsu Block and volunteer members of the nursing home visit circle provide shows of hula dancing, magic tricks, and other performances on visits to nursing homes for the elderly, and are providing support for disabled persons with activit ies including cleaning of wheelchairs, nursing care equipment, and assisted mobility vehicles.

Active participation in activities to support disabled persons

Interacting with elderly persons at a hula dance performance

Wheelchair cleaning was started five years ago and is performed six times a year.

Exhibit at “Karakuri Daishugo ” in Toyota City (basic mechanisms)

Exhibit of improvement examples at “Karakuri Exhibition in Kariya ”

Careful attention to safety during plant tours Many questions from students after the tour

Competition with 500 participating fourth-year students from Kariya City

Club members serving as referees and interacting with participants

Activities in the Field of Raising the Next Generation

As one activity for raising the next generation, we provide opportunities for youth to learn about the interesting and fun nature of manufacturing. Utilizing the expertise that we have developed within our company, we have exhibited at the Karakuri Kaizen Exhibition in Kariya City, Chiryu City, and Toyota City.

Education about manufacturing for elementary and junior high school students

As an automobile manufacturer, Toyota Auto Body

provides plant tours for elementary schools within

and outside the prefecture as part of their fifth-year

social studies classes (“Industrial production and

us: Learning about automobile manufacturing”).

The three plants in total receive 6,000 elementary

school students from 90 schools each year.

Automobile plant tours for fifth-year elementary school social studies classes

As part of support for youth sports in Kariya City, we

have provided sponsorship and operating support

for the Toyota Auto Body Cup youth soccer

competition for the past 21 years. The handball

c lub a l so sponsors the TAB Cup handba l l

competition which invites junior high school teams

from within and outside of the prefecture. Our

employees operate the competition, meet with the

players, and contribute to the promotion of sports.

Helping to raise the next generation through sports

Contributing to society through donations and sponsorships

In thanks for the 70th anniversary of the Toyota Auto

Body Group, we donated four of our company’s

assisted mobility vehicles to municipal governments

in or near the places where our offices are located.

Cities receiving donations: Kariya City, Inabe City,

Toyota City, Chiryu City

Presentation ceremony in Inabe City Presentation ceremony in Kariya City

29

■Social ContributionsKariya Fure-Ai Park ‒ A Relaxing Place for Interacting with Members of the Local Community and Learning about Biodiversity

The Fure-Ai Park Community Liaison Committee was created for environmental workshops, agr icul ture experience programs, and other operations that take place in Fure-Ai Park. The committee is composed of local and outside experts, members of nearby schools, members of the prefectural government and other administrative bodies, and local agriculture instructors. Its goal is cooperation that will ensure that these activities do not come to an end, and instead continue to make the park a permanent place for interaction with the local community.

Using park facilities to contribute to and cooperate with the local community

Outdoor rice farming class conducted by employees

Rice planting experience

Kariya Fure-Ai Park

Rice paddy field

BiotopeWooded area with a small stream

Fruit orchard and agricultural field

Fure-Ai Area

The agriculture experience programs which are run in cooperation with the local community are taught by company employees and local agriculture instructors. As part of the social studies and general education classes for fourth year elementary school students, the participating students experience agriculture and rice farming throughout the year including preparing rice seedlings, planting rice fields, harvesting, threshing, making mochi (rice cakes), and weaving ceremonial ropes from the rice straw.

All of the participating children can learn from experiences they never had before, such as entering the muddy fields to plant rice, using a sickle to harvest rice, and weaving ceremonial ropes. They also learn about the functions of rice fields and other environmental knowledge.

Rice harvesting experience

Assistant professor (right ) and student from Aichi University of Education (left) instructing the class

Observing plant leaves

Environmental workshops are held at Fure-Ai Park based on collaborations by government, universities, local elementary schools, and the local community.

The instructors are assistant professors and science faculty students from Aichi University of Education. They direct workshops for Aichi Prefecture elementary school students and their families to learn about aquatic plants, water purification, and other nature themes.

Environmental workshops based on collaboration by industry, government, universities, and private citizens

Total area: Approx. 50,000 m2

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

Fujimatsu Higashi Elementary SchoolPrincipal Nomura

Comment from a member of the Community Liaison Committee

This outdoor class was a valuable experience, and the children enjoyed it very much. I am grateful that the L ia i son Commi t tee has incorporated comments from the school communities.

Topics

Awarded the Silver Prize at the 2016 Aichi Environmental Awards!

To commemorate this award, a ceremony was held and was attended by the vice-governor of Aichi prefecture, officials and employees of our company, local community representatives, and employee family members. Trees and flowers were planted at the ceremony to share our happiness.

[Tree-planting ceremony to commemorate receiving the 2016 Aichi Environmental Award]

Tree-planting ceremony with the people who cooperated for the project

Employee families also planted flowers at the tree-planting event.

Fure-Ai Park Project for Our Children’s Future • The award was given in recognit ion of act iv i t ies to promote environmental learning that are conducted in cooperation with and closely connected to the local community. (Awarded February 2016.)

30


One of the fundamental principles of Toyota Auto Body is harmony with the environment, and we successfully completed the Fifth Toyota Auto Body Environmental Action Plan (fiscal years 2011 ‒ 2015).Beginning from fiscal year 2016, and aiming for the sustainable development of society and the world, we have formulated the Sixth Toyota Auto Body Environmental Action Plan (fiscal years 2016 ‒ 2020), and have started new activities that will introduce new technologies from a long-term perspective, and will challenge all employees to carry out global activities.

Working to Create Plants that are Harmonized with Nature and Coexist with Local Communities

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

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

Pursuing environmental technology

Toyota Auto Body i s pursu ing a l l po ten t ia l e n v i r o nmen t a l t e c h n o l o g i e s a n d w e a r e making efforts to develop and establ ish new technologies that real ize a balance between the environment and economic concerns.

Coordinating and cooperating with society

Beg inn ing f r om coope ra t i on w i t h affi l i a t ed compan ies and indus t r ies , we a re bu i ld ing coopera t ion and coord ina t ion w i th a l a rge sector o f soc iety invo lved in env i ronmenta l conservat ion that inc ludes the government and prefectural governments.

Contributing to a prosperous 21st century

To contr ibute to a prosperous 21st century, w e a i m f o r g r o w t h i n h a r m o n y w i t h t h e env i ronment , and are cha l leng ing ourse lves to achieve zero emiss ions in a l l areas of our business act iv i t ies.

Self-initiated efforts

S t a r t i n g w i t h o u r e ff o r t s f o r t h o r o u g h p r eemp t i v e p r e ven t i on and comp l i ance w i t h l e g a l s t a n d a r d s , w e h a v e e s t a b l i s h e d s e l f - i n i t i a t e d k a i z e n p l a n s b a s e d o n g l o ba l - s c a l e en v i r o nmen t a l i s s ue s , a nd we continue to promote such self- ini t iated efforts.

Toyota Auto Body Environmental Action Plan

◇Develop super-compact EV.◇Create plants that coexist with local communities.

1993 1995 2000 2005 2010 2015 2020

◇Reduce environmental impacts on a global scale.

First Plan Second Plan Third Plan Fourth Plan

◇Construct a system for environmental programs.

◇Improve the level of the programs by introducing ISO14001.

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

◇Work to reduce CO2 emissions, and apply environmentally friendly designs to our products.

Fifth Plan Sixth Plan

• Reduce CO2 emissions.• Enact programs for biodiversity.

・Improve fuel efficiency by reducing vehicle weight

・Develop and promote the use of super-compact EV

・Promote and improve consolidated environmental management

・Enhance and promote environmental education and training

・Strengthen and carry out plans to prevent environmental risks.

・Promote further environmental activities that are coordinated with suppliers

AreaField

Product environment(development and design)

Production environment(production and logistics)

Environmental management(Environmental administration)

Building a low-carbon society

Building a recycling-oriented society

Building a society that lives in harmony with nature

・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

・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

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

Sixth Toyota Auto Body Environmental Action Plan

Fiscal Year 2015 Action ResultsAction System and Items

Fifth Toyota Auto Body Environmental Action Plan

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_5th_plan_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_taisei_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_6th_plan_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_5th_jisseki_2015_english.pdf

31


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 Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

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 Alphard and Vellfire body and interior parts

By 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 Alphard and Vellfire weight reductions involving officers of the development and production engineering divisions

*1 .Hot stamping: A part forming method where steel is softened by heating it to a high temperature and is then press formed.

Previous technologies

Alphard and Vellfire

32kgreduction

＜Example:Insturument panel＞

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 Current 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.

[Alphard and Vellfire]

Body:

Upper body

Doors

Under body

1500MPa（hot stamping *1）

980MPa

590MPa

440MPa

High-strength steel sheets

Safety CAE Dept., CAE Div. Junji Watanabe

Comment from a weight-reduction CAE analysis engineer

W e e n s u r e d s a f e t y performance and achieved weight reduction by optimal positioning of 1,500 MPa hot stamped steel for the B pillar ‒ a pa r t wh i ch r equ i r e s strength in the event of a side collision.

32


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


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 machinery

Green tape is used at key positions to show where wiring harnesses can be removed efficiently when scraping the Alphard and Vellfire, improving the ease of dismantling.

Instrument panel wiring harness Green tape is added at the wiring harness posit ions 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 marketThe Alphard and Vellfire use recycled polypropylene

and recycled felt, increasing the use of recycled

materials.

Rear floor under-cover RH/LH

Felt

Floor under-cover RH/LH

Fender protector RH/LH

Dashboard silencer

：Recycled polypropylene (bumper, other recycled materials)

：Recycled felt

Development of Materials using Plant FibersUse of cedar from woodland thinning

*1.TABWD：Toyota Auto Body WooD plastic

Fine cedar fiber TABWD

We have developed the TABWD *1 flame retardant injection molding material that uses cedar from woodland thinning as a reinforcement fiber.Starting from the aftermarket fog lamp bracket, we are increasing the number of production products using this material as we work for more effective use of resources.

Fog lamp bracket(Estima hybrid vehicles)

Wiring harness protector(Alphard and Vellfire hybrid vehicles)

Black parts are where the developed material is used

5616

300

19× increase in production products

Amount of material from woodland thinning used (kg/year)

FY2014 FY2015

Video Showing the Use of Heavy Machinery for Vehicle Dismantling

http://www.toyota-body.co.jp/english/csr/pdf/2016/kaitai.wmv

33


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


Harmony with Nature

Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

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. In this system, COMS which are no longer needed are suitably recycled. We will continue to work for the creation of a recycling-oriented society in the future.

Ensuring suitable recycling

Hiroshima Prefecture: 1

Kyoto Prefecture: 3

Aichi Prefecture: 13

KanagawaPrefecture: 2

SaitamaPrefecture: 2

Tokyo: 2

OkinawaPrefecture: 2

COMS collection and transport

Lead battery recovery Recycling after crushing

23 COMS that were no longer needed have been collected from around the country and recycled.

Recycling results

Development and design

Scrapping

Manufacture

Sale

Use

Collection

Recycling Toyota Auto Body

Customer

COMS lifecycle

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 IMDS *4 registration and other systems for chemical substance management under these kinds of international chemical substance regulations.

In fiscal year 2015, in order to further comply with regulations on a global scale, we constructed and implemented a system for IMDS registration in the same way as in Japan.

We conduct v ideo conferences with overseas subsidiaries and provide support for management of chemical substances. (Indonesia)

*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

Technical Administration Div. Hiroki Tanaka

Comment from a person in the COMS super-compact electric vehicle recycling business

We are not only working to deliver better products, but are also helping customers who are concerned about disposal, and making effective use of resources and preserving the environment for the children of the future.

34


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 Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

Activities to reduce CO2 emissions in production processesWe achieved our emissions per vehicle unit and total emissions volume targets.

201 196209 220221 213

0

100

200

300

'90 '15'11 '12 '13 '14〜〜〜

(Reference year)

Company target: 197

CO2 emissions (Toyota Auto Body)

(Thousands tons CO2)

317

264281 285274

289

0

200

300

400

'01 '15'11 '12 '13 '14〜〜

Target: 285

〜〜

(CO2 kg/vehicle)

CO2 emissions per vehicle (Toyota Auto Body)

(Reference year)

Reduction activities for downtime energy use at the Inabe PlantOur company is focusing on efforts to reduce downtime energy use. In particular at the Inabe Plant, the Plant Director’s Energy Conservation Report Meeting is held each month, and efforts are being made to accelerate the pace of activities.

Scene from the Plant Director’s Energy Conservation Meeting

Scene from on-site inspections

<Example of making corridor lighting switches easier to operate (after improvement)>

Central control panel for Inabe body process corridor lighting

Touch panel switches that also show the on/off status

Inabe Plant: Percentage of power used between shifts

46

29

0

304050

April 2015 March 2016

(%)

1020

17% decrease

Inabe Plant: Percentage of compressed air used between shifts

3831

0

30

40

April 2015 March 2016

(%)

10

20

7% decrease

Inabe Paint Div. Junpei Wakao

Comment from a person working on Inabe Plant energy-saving activities

G l o b a l w a r m i n g i s a n impo r t an t i s sue f o r ou r business activities. We will proceed steadily ahead with wha t e ve r we can do t o prevent global warming.

35


Production Environment Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

Activities to reduce CO2 emissions in production processes

Challenging ourselves to achieve a 50% cut in CO2 emissions through technical innovations during renovation of Yoshiwara Plant painting booths

<Flow of work at top coat painting booth>Air supply

Booth A/C unit

Intermediate coat drying oven Airflow

Cooling

Heating

Top coat drying oven

Base process (water-based paint)

Preheating process

Clear coat process (solvent-based paint)

Airflow Airflow100

54

0

100

Past Today

(Index)46% decrease

<Effects>Booth CO2 per vehicle

・Reducing A/C airflow at robot processes (smaller booth sizes): [Example (1)]

・Utilizing heat pumps that provide both hot and cold water at the same time: [Example (2)]

・Change to steamless A/C heat sources

・Recycling A/C exhaust

<Primary energy-saving technologies>

[Example (1)] Reducing A/C airflow at robot processes (smaller booth sizes)We reduced the A/C airflow by placing the painting robot supports outside the booth and reducing the size of the air-conditioned space.

<Past>

<Today>

[Booth cross-section image]Width 100 (index)

Airflow

Body

Robot

Airflow

Robot supports are inside the booth.

Robot supports are installed outside the booth.

80Airflow

Airflow

Smaller booth width⇒20% reduction in airflow

[Example (2)] Energy saving by utilizing heat pumps that provide both hot and cold water at the same time We have adopted heat pumps that provide hot and cold water at the same time and can make effective use of the waste heat generated from cold-water manufacturing.

<Past> [Cold/hot water manufacturing and supply flow diagram]

Airflow

Air supplyChiller

Boiler

Waste heat

Airflow

Air supply

Heat pump that provides both hot and cold water at the same time

Wasteheat

<Today> (positioned as close as possible)

8℃

45℃

Heat exchanger

30% decrease by making effective use of waste heat for heating water

Booth A/C unit

Booth A/C unit

Cooling

Heating

Cooling

Heating

Comments from engineers working on the Yoshiwara CO2 50% cut challenge

Energy consumed at the painting process accounts for approximately 50% of total energy use, and saving energy at this process is important. We will continue challenging ourselves to achieve a 50% cut in CO2 emissions at future updates and modifications.

(Left) Yoshiwara Paint Div.Kazuhiko Inagaki

(Right) Paint PE Div. Takahiro Oyama

36


We are actively carrying out activities such as taking steps at the source to reduce the amounts of waste generated during production and making efficient use of resources.

Production Activities with Low Environmental ImpactsProduction Environment Three Priority Themes: Low Carbon Recycling

OrientationHarmony with Nature

Three Priority Themes: Low Carbon Recycling Orientation

Harmony with Nature

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 plants that exist harmoniously with nature.

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

Activities to reduce production process wasteInabe Plant: Reducing wastewater from paint machine washingWe established a method for in-house treatment of wastewater from the washing of water-based painting machines that occurs at the painting process, and succeeded in reducing wastewater emissions.

Receiving tank

Wastewater treatment facility*

Sludge

<Today>

190 t/year reduction

Discharged

The water is cleaned at a wastewater treatment facility, and the volume of the residue is reduced before it is sent as sludge for contracted treatment outside the company.

Treatment by waste treatment agent: 1 t

* Treatment involves using bacteria to break down organic substances in the wastewater at the wastewater treatment facility.

Recovery (wastewater)

Washing wastewater

Painting machine

Wastewater from washing of paint guns was recovered and contracted treatment was performed outside the company.

Bottom tank

<Past><Painting booth>

Treated by waste treatment agent: 191 t

Washing wastewater

Programs to improve environmental awareness in cooperation with local communitiesThe Kariya Fure-Ai Park is located adjacent to the Fujimatsu Plant. This park is a habitat for living creatures, and we are utilizing it for environmental workshops that are held in cooperation with the local community.

We have also opened Yamaboshi Park adjacent to the Yoshiwara Plant, and are using it as a place for interacting with the local community, and are providing monozukuri (manufacturing) experiences in the Forest Classroom at the Inabe Plant.

Nature observation program for learning about plant growth (Fure-Ai Park)

Sketching competition for students of a nearby elementary school (Yamaboshi Park)

Results in total company waste emissions

0

15

9.6

'08

8.2

'15

9.4

'13

8.3

'14

(1000t)

〜〜〜

(Reference year)

(kg/vehicle)16

〜〜15.4

12.8

14.313.1

Original unit

Emissions

Target 14.7Emissio

ns

Original unit

PE Environment Div.　Ryoko Nishiyama

Comment from a person in charge of waste reduction

We are constantly striving f o r l ow env i r onmen ta l impact production activities, and are working in close cooperat ion w i th other related parties.

37


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

Strengthening Consolidated Environmental ManagementEnvironmental Management

Strengthening management that includes subsidiaries in Japan and overseasWe have launched the Consolidated Subsidiary Production Environmental Committee . It is organized within the Production Environmental Committee and is composed of the presidents of each company.

We also regularly conduct genchi-genbutsu (actual site and actual objects) environmental audits, and are carrying out environmental improvements, as well as training of local staff.

Consolidated Subsidiary Production Environment Committee(Overseas: 8 companies, Japan: 5 companies)

Overseas on-site audit (USA)

Improving and carrying out employee trainingEnvironmental training is carried out for each level and each area of specialization, aiming to develop awareness and instill knowledge.

The operation of environmental preservation measures including the above activities has been positively evaluated, and we have been certified as a Kariya City eco Office .

In-house noise prevention meeting Ceremony for certification as a Kariya City eco Office (November 2015)Environmental education activities

We have created a permanent environmental exhibit based on the concept of “creating a plant that is friendly to the community, the global environment, and people”, and are using it as a means of communicating information to persons inside and outside the company, and as a place for learning.

Lectures are also held during Environment Month to improve employee environmental awareness.

In-house environmental exhibitionA place for learning from displays of actual parts and materials

Environment lecture by Ms. Kanamaru from AEON Co., Ltd.Activities to prevent environmental risks

We are carrying out measures to prevent leakage from facilities which handle production wastewater, chemicals, and similar substances.

Beginning from fiscal year 2015, we have been gradual ly conducting inspections of the insides of underground pipes.

Road surface

Underground

Pipe

Manhole

Self-propelled camera

Cable

Inspecting the insides of pipes with a self-propelled camera

Image of the inside of a pipe

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/2016/kankyou_shigen_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_kaikei_english.pdf

http://www.toyota-body.co.jp/english/csr/pdf/2016/kankyou_information_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 2016（Next publishing scheduled for June 2017）

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

https://www.toyota-body.co.jp/english/csr/contacts/enquete2016.html

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

CSR REPORT 2016 - toyota-body.co.jp · Toyota Auto Body Proﬁle Top Message ... All opinions or...

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