Full Year 2021 Toyota Motor Corp Earnings Press Conference - Part 1

Included a special dividend of for like in the annual dividend for the fiscal year will be 240 in the of common share an increase of 21 per common share compared to the previous fiscal years of women and the dividend payout ratio for the fiscal year will be $29 eight per cent.

We will continue to aim for.

The sustainable dividends, while maintaining and improving upon our consolidated dividend payout range.

The Mark of 30 per cent.

For share repurchases, we postponed them for the interim period of the fiscal year ended March of 2020 one due to the.

Spread of COVID-19, with regard to the year and shareholder return and we plan to buy back up the 200 billion yen.

We'll continue to implement share repurchases in the flexible matter taking into account for various factors, including investment income growth dividend levels of liquidity of breath of labor and other.

Doctors.

We will split of our common shares of the ratio of shares for each share.

With the record date of September 30th for 2021 the.

Purpose of the study.

<unk> reduced the minimum investment.

Thereby creating an environment, where it is easier to investing in our shares.

No.

The move on to discuss the forecast for the fiscal year ending March 2022.

Consolidated vehicle sales for the fiscal year ended March 2022, and I expect it to be $8 7 million units, which is the hunt.

The $13 eight per cent of soft sales of the previous fiscal year vehicle sales are expected to increase the new vision across Toyota and Lexus vehicles.

The $9 6 million units, which is the $105 six per cent of such sales.

Yeah.

When I looked at what vehicles will continue to further enhance our product lineup.

The region and expect yourself 2 million of 800000 units, which is 129, 9% compared to the previous fiscal year, we anticipate that the ratio of electrified vehicles will increase.

The 2%.

Towards carbon neutrality.

The develop a full line of products that meet the needs of each region and that can be chosen by customers in those regions.

Next let me explain the full year consolidated financial performance.

The foreign exchange.

For us to be 100 of five yen per U S dollar and the 120 for example.

Based on this are for cash.

The actual performance our net really 30 trillion operating income of two the truly of 500 billion pretax income of three trillion of 110 billion and net income of two children 300 billion.

Yeah.

I would like to explain the factors, which will impact the operating costs year on year.

Firstly, we anticipate the cost reduction efforts of a decrease operating income of 135 billion in launch day.

Due to the significant negative impact.

Average prices of materials.

Right the kind of improvement of around 300 billion yen on our book.

Great.

Secondly, we anticipate the marketing efforts.

Operating income by 850 billion yen, mainly due to an injury.

Volume.

Do you anticipate for an increase in expenses.

Operating income by 350 billion.

This is all of course, we are investing more resources than ever in carbon neutrality and digitalization.

Okay.

Foreign exchange rate.

The same.

The other factors.

The rating income.

300.

For the.

The earnings structure.

Okay.

Information of the way.

The.

Future.

Accelerator of efforts to transform the Oregon.

That's on the horizon.

So the presentation. Thank you for your attention.

Yeah.

But they may already so the old oak I see no alleged gentleman, who were reluctant sorry for the Q&A session.

Click of the race.

Hi.

And the on the screen and the real call. Your name. Please turn on both of the microphone and the P. J O. Some of them before you start speaking and please ask no more than two questions per person the law.

Now, ladies and gentlemen, Mr Obrien of NHK.

I will take the screen.

Sales from the screenplay.

Please start your question.

Okay.

Yeah.

But I don't know if I'm not no. Mr. O F. T is particularly at the start your question.

Of an educated thank you for this opportunity my question relates to the actual performance of the financial results for the first of all for the period ending in March towards the 22 months in the early part of the Middle ring.

Adjusted the production, but anyways.

Sales and actually the profit is an income of the higher than the previous fiscal year, how do you assess and evaluate this and what are the most important factors that support the book.

Also the outlook for the period ending in March of 'twenty, two they're very I guess factors, but you're going to expect from us.

Rather high level and could you explain to us the background of such a positive of high figures of all thank you very much.

The CFO of cotton will respond to that question I think.

Thank you.

Thank you Ms <unk> for your question.

My name is Khan and I'd like the respond to your question.

Bob.

Last year in the same house.

For them the way, we announced the financial results are present Toyota.

<unk> talked about the sales.

For the fiscal year, ending and that ended in March talked about gradient of the sales.

The operating income.

Thank you for 500 billion yen.

At that time the situations.

On the certain and we were not able to come up with the clear out it looks like if we wanted to present at the time of concrete for tenders of too.

Stakeholders, because we do have the largest operating industries for automotive industry, and therefore, considering the importance of of getting some bigger.

Those are the figures and announced the cigarettes that initiated the various for everything internally and there are many factors behind those numbers, we have announced for one thing.

The.

Global financial results, we made continued isn't your cost efforts.

The efforts.

We'll do better cars and also of the overall cost reduction efforts, especially the including the doctors don't know about fixed expenses going through those we were able to reduce the breakeven union.

And also we work on the supply chain as well of 10 years ago, when we had the great.

Ben.

Together with the suppliers, we made the effort for mitigating disaster.

Also the adjusted inventory levels Yoga and also.

Net.

Okay.

The of evaluating alternatives for the most of them.

And as of the efforts continued since the great.

Financial crisis, most of those would all of produced results.

For the current fiscal year.

As already mentioned in the early spring time, or you're not able to sell and the.

And at that time.

Yeah.

Okay.

Realized losses of new the importance of having a single cartridge.

Right.

The customers.

The equal represents of great importance from Iraq and encourage the suppliers.

Having supply.

All of the Hearts and the simpler continue to do that.

Very demanding effort then we really had the firsthand.

All of them together.

It did not come of out altogether, we have $5 5 billion apart from Baird.

And as well and everybody was focused on growth.

In making their efforts and that resulted from the financial results.

Good day.

Most of them.

Notes of three months ago, I, just mentioned that for Ya.

Continuing to do like the should be doing in the natural course of action without I think the things twice.

I think I've mentioned that the NAFTA that we had the earthquake in the.

North Eastern Japan and suppliers.

It did have because of the wire instead of anymore.

It was worth it.

Okay.

And each one of those.

That'll come with events could have developed and got very true.

Disasters.

Those are true measure of animals, but they could have.

Substantial impact on the financial result.

But we kind of don't want that.

And able to create the financial results I have just mentioned and that flow.

Let's turn of the efforts made by all of those people during the past year pick up of steel.

And those don't see Christian and all of life in the result of that I have just mentioned.

That's the decision.

James of the actual.

Performance from that.

But I can say in front of the Alex.

The five trillion yes.

The operating income is the number that I noted earlier.

Public.

It's Sean.

But for the most part.

Yeah.

Is expected to recover significantly for the fiscal year.

And that is indeed, a very major factor supporting the sort of direction.

The air basis.

And for the parent debt.

And of the here yet.

We did in terms of the continuous improvement or change of way the snap.

Work.

So the only change all the banks.

Performance of that we had been working along the during the past year of how can we sustain debt and how it can be maintained.

I would be very crucial in the current tier it's critical.

Of our nation and that's true.

And we would like the two but as mentioned the here and in the future.

I would like to reduce the breakeven.

And the further to create additional debt we can make for English.

So to make sure that of what we had been doing over the years of really.

Douglas and continue the very important that briefly is my response to the question. Thank you for them.

Thank you very much thank.

Thank you very much meso it.

So I don't think in the what's the amount of my own it let's take the next question.

So did about who come from here.

Some of them when they really need.

Nick Oncologist shields of any kind of most of them on the blue gene neither one of them in doing just that.

With the screen. So when you see your cell phone the screen. Please ask your question.

But I'm not going anywhere.

The switching the screen. So please wait a while.

So today on my thoughts of the stomach.

So much for someplace in the phone calls all day.

My name is most of the same from all Concordia of Shimbun.

For the one of them up on the one of my second of the more it was referred to in the previous question, but in all of last year at the beginning of the muscle for noble.

The amount of breakeven unit.

We're set to be reduced by 2 million musical chairs of the Lehman shock titles, but from now like you would see more next generation related in English for investment.

The world.

So the question is about the breakeven point of the breakeven your units.

Yeah, My forecast I supposed to know that value.

The second to the new.

Next generation investment I think the major topic will be carbon neutral.

Globally.

The region.

The regulations or the other.

The energy source of it makes the may differ.

And so what what are what are the actions be that total will take.

Most of the some of them. Thank you very much to me from my sense of XI.

The answer if I can do you want us so all of that sales are the carbon neutral question first and then move on to the investment question.

For the first question will be the first part will be answered by myself.

Carbon neutral.

The total carbon neutral thinking what's the first part of your question.

For some of them is that two of them.

Oh, the president Mr. Toyota.

It has mentioned.

Some of it.

The statements I've made a statement of including the same as part of the two of them.

The electrification of radius.

Alright.

Okay.

Or do you realize the carbon neutral that is kind of target in channel on Oh shoot to dig into the UK.

You can see true.

The point you don't move lifecycle of his mental illness.

Transports.

No.

<unk> got all the POC overall of cycle.

With us will have to do the name that.

Of that would be the point.

So at this point to this day.

Good for you.

Six of them.

Millions of them do they use it.

The order to realize more of the neutrality, so dangerous stages for various.

The first thing the only thing you'll have to be addressed and I think that would be the most important point and that is where the rest of the pudding.

And most of them perfectly must of the walk on the.

For the Toyota.

The P. A T G battery evs or B E or F. C E D.

Although we don't the Arnold in the line.

So we have of food.

Electrified vehicle line up and the other finished the third at all on the end.

And you sort of Brazil. He was the most.

With the capital.

J O N E.

The president.

The President we announced the hundreds of them.

Okay, so including that we have a variety of all of them.

So you sort of you have someone that kind of guy.

You shouldn't be working on moving carbon neutral you will have to be realized the by addressing the existing vehicles as well including easier of course.

So the field is what we have.

To check all of the challenge.

The problem comprehensively.

You take care of the challenge of the world of neutral.

For the Pakistan, but what is important here most of them isn't.

Not just the technology further of a cheeky just somebody took the tour of the customers of the situation in the world the sustainability.

The practical really team will have to be realized on the will come from your seat.

You got to take a really cool or affordability.

So the sustainability of it looks like being there.

Necessary sort of technology in vehicles that are sold.

We will have to be provided one of supply for us and that isn't always the possibility.

And one of the 1997.

And it's already more than kind of weird.

The same lots of vehicle since the launch of free of some sooner.

Oh to reduction of our interest.

Your line is what we said part of it.

We take pride in the new line that's.

That's the our top runner.

In that area over the past 20 years of we have contributed to a reduction of sales to 20 per cent under the credit so towards the end of 30 carbon neutral and you thought you could get that for you.

The.

Ooh Ooh Tango two continue to be a top runner and kill commentary it maybe an aggressive growth, but we will continue to work towards that goal.

I hope people understand the go to the cure of the film.

Today.

And you've got the well that's not true.

Those are the two or 2032 countries.

What is the targeted more electrified vehicles.

To explain them with the root cause.

Clinical costs for.

Each division has the southern regulation.

And the renewable energy for the most situations.

The ultimate choices for the customer so he doesn't understand that this is all of the target. So can I have the slides.

The code of godmother of an already some of as most of them at the top cut from home or not.

You see the major regions in order to do the.

The world.

The ratio of electrified vehicles and are out of work.

Per cent.

E N E G I do see Japan, North America, Europe to accuse you of.

Both of them.

For the reasons for Japan, and 95 per cent electrified vehicles.

North America 70 per cent of Euro.

Close to 100 per cent get into the China.

In 2035 or so.

So it is of the whole.

Okay.

They are aiming at 100 per cent.

Okay for the.

Vehicles and as you see on the right hand side are the batteries and S. T E N.

Japan, North America, Europe with the Orlando true.

In China all of the following.

The 10% shipment of the central.

40% debt 50 per cent, respectively the globally.

And those of the insight to.

Electrified vehicles, including hybrid polluted cities.

If the battery E T E G in total.

What accounts for about 2 million units.

All right.

And of course, the ultimate choice of up to the question.

But at the moment. This is what we are forecasting.

23 day.

A couple of quick putting out some of them off.

Oh.

We have no debt.

The batteries to kill the tumor that hang off more than adequate.

The supply he must be measurable.

The food and eat smart.

So it is under the law.

First of all of them with all of them.

So we sort of stay at the mall in terms of the gigawatt all enjoying the appeal at the moment.

Toyota is.

On the two of your day.

Would you go about similar line of power.

Sure.

So on the hours without any of the only to realize the summary, there wasn't doing the Ada He don't want join the necessary in other words 30 times, what kind of number two and I must say.

For the emphasis on the <unk>.

For example.

Some of them if you translate that into production lines. What about currently we have you been the line, but that was all of that.

The more of them.

The line that is more than 30 times per week. So we will make aggressive investments so that we can realize funding.

It's true that you soon again.

For a bedroom.

Or are they saying, let's see the basic unit within the gloomy.

And part of it out the market.

With the alliance.

The procurement so that we can procure some of the series tunnel saviano courtyard.

The same to that kind of things.

You must of the more battery EV development.

Compared to the current situation.

As you talk with the per cent reduction development lead time.

Net.

Under the old one.

Th believing.

Towards the on all three of them.

Yeah.

Great.

Sharing the same platform as the way to me.

Yeah.

Any kind of improvement in some light at the endocrine ex political so as you see it.

The aim to have the full line on some of that as well.

From a William just mentioned that the other kind of thing.

People in the whole cutoff for the processes, we would like to add some comments from Mr. Calling about the investment.

No.

For example for any different.

All of a breakeven.

To me of the English the golf.

And you'll see the forecasts are akitas NAV.

Sure.

The other day here that the most just kick.

And I'm sort of any.

On a year on year basis.

For.

A reduction of breakeven in Europe by hundreds of handle for golf.

The phones of units sort of picking of skill.

So it depends on kind of environment.

And for all of the market.

So that's sort of in the short term.

The go up or down for.

Oh, we will continue to work on the walls.

And real quick one for work on sales and marketing channel.

Okay. So many countries around the auto.

And of course.

The vehicles.

Bob.

I know for sure.

So we are supply parts accessories, the sick and tired of it for.

The car business and software updates.

Okay.

These are the norm.

For the winter.

We intend to get more profit for the value chain.

Oh, perfect ILUVIEN and parents can fill the most.

Sure.

For it.

The enrichment study.

Electrification case realizations.

Roughly speaking.

We are currently making an investment of just one share in.

Yeah.

But even more confirmatory of the past levels, you'll see we intend to increase the investment by 20 per cent.

And of course, you will recall.

So we will continue to.

The secure.

The many of the necessary for the investment and we'll continue to work on reducing the breakeven unit numbers got better. So thank you very much the type of summer.

Thank you very much business what sort.

So let's move on to the next question.

From the Chunichi newspaper should I see something somebody else would be kind of nothing new.

The way we're going.

This momentum.

Screening if you see yourself on the screen. Please start your question.

We are now switching the screen. So please allow us a little more time please.

Yeah.

But it does seem like some of them.

Now she's done please start your question.

I missed the CIT I see you are still on the original cause you did mute the microphone.

Cause you the mute the microphone.

Okay, So share I N G.

Your voice is not being transmitted could you. Please turn on the microphone, meaning could you place. It did mute the microphone of course.

Can you hear me, yes, we can we can hear you knows myself.

<unk> share of Junior's day newspaper of thank you for the opportunity I have two questions first question relates to the following.

For the press conference of for are a result of that.

The absence of the President I think is quite unprecedented for this financial result Press conference.

Mr. Toyota at present is absent the could you explain the reason behind that.

The relates to the Tokyo Olympic games, and it's going to be the old but the scheduled opening is the two months of Sun and the.

COVID-19.

Quite ramping.

And the cases of the serious symptoms are increasing even though you didn't do the conditions I think the government the nursing assuming the muscle on the.

Opening and holding all of the audit.

The games, but giving the medical and health care of titration.

That's where the other games can be.

The total non sponsor of the Olympics.

Games than you had been supporting the athletes and you were deeply involved in the game.

For the game.

And despite COVID-19 being out of control the <unk>.

Olympic games are going to day, well scheduled to be opened and what is your view on debt.

Like the.

Thank you.

For your question.

Two questions for me.

And the vertical.

Okay.

A bunch of supply the absolute I'll go to the prison.

The for the full year, because the financials your dog.

The conference and also at the top of your sponsor of the Olympic games from Oklahoma.

The position along with the day.

The current situations of all that stuff I would say.

With that but it's true.

Yeah.

For a really got in the special non for social.

And you already know the horse.

Toyota for them.

Two quick ones.

Thank God that book.

And we all day.

And that's a separate sort.

Most of them.

And Oh Laurie.

Engage in theory.

So.

You talked about the shape.

One of them.

Yes.

Much of it looks like.

Okay.

As the chairman of the.

Most of them holding on all of the suffering.

Kind of.

And his statement in my opinion.

There is of interest.

The food on what the one of her she put those are sort.

And the school.

Type of communicating.

Great.

The in home.

The other day.

The Magellan situations, so sick for D C.

The press conference.

Okay.

Okay.

Net debt.

So the Toyota.

For the value of overall, where the presidents of being absent.

That's it for not respond to the first question and secondly, it makes the.

Explain to you our position as the Tulsa.

All of the pick of games as you already know.

For the Toyota.

So kind of decided at the sponsor of the Olympic and Paralympic games of the class B share this with the other creating true.

Sports the Pitbull and good day.

Without the screen nation.

One can participate and so echoing those values, we have decided to participate as the top line.

And the state of Olympic games in Berlin the game.

We're gonna for renewal for the Olympic and Paralympic games. The spirits are they fully realize the mud. The first engine share the same is true.

The mines.

All the patents.

For the full of events and everyone in the country, where the game day for Blake.

Yeah, and maybe digressing, a little of that year.

That is why the ear enrich and Toyota I had the.

The major recalls and tend to be a period of theory.

For the convenience.

Right and we also got all kinds of things.

The other myself.

And the important learning from being made on the implications.

The product itself.

Very safe from turns of God.

But it is also important to ensure the other.

All of US peace of mind, how customers have told us that the feeling of peace of mind, when using our product, but more importantly, the standard.

Talking about Victoza.

But there'll be less indicative of something like.

I mean, none of the sports and we have been supporting the absolutely true devote their lives the than what had been deeply concerned.

That's absolutely true.

One of them.

Of the targets of some people get reservations about the kind of medical loss ratio.

And then of course.

We have been working to identify what we can do is the sponsor.

Thank you.

Help the situation because we are really close to one of the situation of the top sponsor.

The city of hope critical innovation of mine.

And for all of that.

People of this country I cant be sure and that's.

That's the of Frank and on the feeling that we have at this moment.

Thank you. Thank you for every day.

The share issue.

You know what's the money.

Now, let us take the next question from Yomiuri.

What are the sons. Please somebody else is the same we will see the screen. The please start asking the question when you see yourself on the screen.

Yeah.

Okay.

I told you some please.

And this is katori familiarity.

Good day.

A bunch of financial results for.

How about the impact of semiconductors.

In your case, it seems to like for like.

You don't have any major problems at the moment of it but.

The $9 3 million is the production plan.

But does that include any impact of semiconductor the supply you know.

And.

You take your book.

Or how do you see the supply demand forecast for semiconductors.

The next question is.

All of them.

The capital investment.

Well you see the question of kept the investment of about the R&D investment of $1. Six trillion you have for lunch I think this is the highest ever number of them.

Can you give us details of the $4 six trillion carbon neutral Chase I think there are other projects as well.

So what will be the focal project.

The accounting for the $1 six trillion.

The other two questions. Thank you very much.

Okay.

With the move outs here from the home.

Sorry, I missed the Kwanza CFO, who will answer your questions.

The world.

Thank you very much Mr country for your question for coming on your first question was about the impact of semiconductors Nordic cinema at all at all.

Sure.

In our forecast for Dino.

No.

The current demand the type of demand and supply situation is.

Is incorporated or the content for other risks of rather than a reduction in production actually.

From the.

The plan at the beginning of the day a year without the mistaken.

For this man.

The plan.

The two was to increase on the stone.

Production, but the numbers of one.

The most of our.

Conservative.

We are cautious.

In the short term.

Okay.

Do we foresee any major.

No, but that's the.

Richard.

In the second half of the year, we don't think of ways we can.

For the rest of them be relaxed the sort of the risks are incorporated in the numbers.

The supply and demand for.

Okay.

Yeah.

The situation, though you're the first.

Still can fluctuate and.

Oh, Okay, not sit back in the next year, but.

We talked at the close enough.

We are not forecasting a major impact sorry semicon.

Semiconductors.

The one of our suppliers, so I shouldn't say fire and Mr. Toyota of of precedent for visited them.

And so the power steadily they are making efforts to recover.

And for two of the winter and supported them.

They're trying to do.

The man hours and the people are working.

For the.

Long hours and other.

That has contributed to us of enjoying the situation where there is no interest of the semiconductor suppliers.

I hope you understand by the.

As people even after the Lehman shock.

For me just took off.

Oh.

Effort to reduce the impact of disasters.

Taking the end semiconductor inventory has been reviewed.

And the assessment of alternative products and we can oh.

Oh no.

Okay.

Got it done every day.

Two of no change of Florida, So when somebody goes down.

All of its made more efficient in the past with the members processes was very fond of.

But after the great East, Japan earthquake and the after effects to be just the.

The mitigating the impact of silver line.

The disasters, we're now able to kind of a setback make.

The make assessments of all of alternative for IDEXX in a speedy manner.

I know you wouldn't.

And that is one of the whatever the.

The factors behind us being able to go for.

Of the impact of semiconductor supplier.

This is not something where they can save yourself.

Immediately but or the study if that's being taken.

Our non producing.

To your R&D investment.

As you mentioned the one six trillion in the forecast number that we have announced.

And all of.

To look at the breakdown in <unk>.

Moving to vehicles from development interest.

Also in other does sort of mentioned.

Initiatives for a carbon neutral in particular electrified vehicles of all of reducing C. O two from the factory.

And also software development for software first.

And the connected.

Initiatives so the.

These are the area of filling of extreme make investments.

We're not just blindly, adding interest from project.

Cool.

Minor changes.

On the 24 months.

Okay.

And the other changes.

A little cautious.

Whether they are really necessary, if they are not necessary the eliminate them.

So some of them.

For other investments.

Just sort of like Oh.

We review our existing projects for finishing for example.

And of that that just have the resources for investments in other areas and that allows us to make improvements that is all for from my side. Thank you very much.

What day myself. Thank you Mr. Cotter you for your question.

There seems to be the other questions about the since the scheduled and James time is approaching so the next person of it'll be the final person from.

The city of questions I'm going to come outside of newspaper of Mr.

Nothing really major.

The other green so if you see yourself on the screen. Please start your question.

But it all comes out of China.

The other countries start your question given the kind of the other theater some of ours.

So of all of US I can say for I have that took away the jobs isn't the most of them as high as the as shown on page seven of the materials.

For one of your thinking.

The the performance of Florida of crowd here could you talk about the legal provision the titration of the simplicity from a conversion of the divisions items.

Japan nature of among other interest so could you share with us how good the trading.

And then all of that you'll see Sanofi.

One of them.

The alpha blocker.

No.

Part of doing yourself and you talked about because they got on the dam.

The plan with the anchors Hibernia.

And so from could you share with US the reason of why you believe customers choosing the vehicles.

So that the person.

No, but the standard.

The first one question on the regional breakdown and got out of the recovery for fiscal 'twenty to 'twenty, one corn share for real.

Thank you for it.

And about the page seven shows.

Operating income of by region and also to the sales units.

For the fiscal 'twenty, one or the like.

For the engine.

Two of.

The line.

In terms of of the automotive market.

In North America, and also Europe, and Asia, and Asia interest, China Africa, and about donation of food.

The day recovery is coming on more quickly than we had anticipated that our current oh well the.

Generally speaking it doesn't the general context.

We are facing customers and focusing a lot of the merits of it.

Yeah.

And the way of trying to launch of the vehicles that scared me.

And also that can enhance the convenience for customers and we are planning for that with respect of assay.

In the Asia.

The overall share on relative terms of the market recovery seems to be somewhat slower than other regions, we believe Toronto and about those areas.

Relating to the occurrence of infection graduation, and especially in the country like India.

It's still going on that caused the stoppage of the corridor.

The non leather beautiful so compared with other regions of the impact of the COVID-19 seems to be most of the areas and bigger flow.

So at the slower pace, but the recovery.

That's how we are assessing at the moment of burgers in turn.

So the sales here.

For the current fiscal year.

For each region.

Second in.

Compared with the previous book here, we are planning to increase the sales volume.

So that's my response to your first question.

It's got the memo.

With respect of the second question.

And the majority of the plan and I won't get too one of them most of the H D D and the P. J.

J D and I'd like to respond to that question of my name is of the Nevada and Florida.

Okay.

For one thing as the.

Mr. Mitchell I mentioned in his book.

The question the battery EV with this book.

Got it.

And the availability of interest.

Most of junk innovation on the.

Not the likelihood.

For the progress significantly.

The settlement in respect of hybrid for them.

And I'm talking to you could talk on EBITDA.

I mean those are.

The thought of them easier for customers.

Most of the timing.

But I would like to add further to the question about the journey the data.

We are focused on connect.

Connector and the.

Our next debt we.

We obtain information of data.

And even to the range of Hydra disease, all the plug in hybrid Tvs, especially in urban areas yesterday one of them.

But this does travel by electric Motors.

I don't know what type of most of them with the army.

And probably we can share with you later on in the urban areas generally speaking.

Toshiba took over just considering the other was some difference between the urban area and the suburban areas without any of the urban areas. Even in the case of hybrid electric vehicles about 60% of the time is running on the electric.

Okay.

Of course are there differences in conditions of about 17.

All the time so it is.

Driven on.

For electric mobility.

So the hybrid Tvs or the lack of hybrid EV.

Just yet for four months and also.

And all of it.

The data that we can obtain for connectivity and also we use the information from.

The obligations and using debt.

Depending upon where the vehicle is located.

Mod ratio can be increase or decrease the total adjusted and those can be doable in the.

For the hybrid.

Of course, that's really what's driving it.

So we would like to make a contribution to the environment.

Number of manner as well as the practical manner and when we net that I think the hybrid evs and plug in hybrid.

They can continue to be a very important for weapons for us to achieve that in total for BBB kind of explain the details.

The second part of the press.

Press conference.

It's gone from that in the second kind of desktops also.

Thank you very much.

What are the best for do you think even in the months you missed the economies.

All of US with this we conclude acquiring one of the financial results for meeting even after a 10 minute range from 225.

She loves the meeting thank you very much for listening.

[music].

Okay.

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Yeah.

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Yeah.

[music].

Although you may already know, ladies and gentlemen for I'd like to start the pardon me to close of the sources of news flow, but did you want the one financial performance Press conference by doing some of the Corporation's first of all of the same traditional use the participant so for the for now do you have to.

Member of the board on the Chief Digital Officer, James Koffler.

She stood up to production officer Masamichi of Ocado.

It keeps going the you gave some of them communication at the start.

Now that the.

Do you find that I said, the chief financial officer that they just kind of stuck on.

Keeps taking notice.

I don't the Earth, whatever masahiko lie at the.

So did of out because if somebody else no 90 day member of the board.

I'm, Scott Murray is going to click of presentation. Good afternoon.

Today I'm excited to share with you a glimpse of Toyota is technology and strategy with regards to carbon neutrality.

Before I begin I would like to express deep gratitude to the millions of Toyota customers, who continue to choose our products and services and police their trust in us.

The COVID-19, global pandemic has been difficult for everyone.

These strong financial results that we have shared today, we're only possible due to the hard work and dedication of total the group employees suppliers dealers shareholders and partners worldwide.

Thanks to these amazing people total can continue to create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers all over the world.

The Toyota Philosophy was developed to guide our company.

At its foundation is mobility and happiness for all.

For over 80 years two of the has been executing on its vision and mission to per.

<unk> happiness and deliver safe sustainable mobility technology to customers globally.

As part of that mission Toyota has been working hard to help all countries and regions around the world achieve carbon neutrality through its products.

In addition, Toyota is 100% committed as a company to achieving carbon neutrality by 2050 or earlier.

What does carbon neutrality actually mean for the automotive industry.

Carbon neutrality for the automotive industry means achieving zero C O two emissions in all processes throughout the lifecycle of manufacturing transporting operating fueling <unk> charging and recycling and disposing of vehicles.

Toyota has been innovating and investing in technology to reduce emissions and achieve carbon neutrality for over 30 years.

In the early 19 nineties Toyota committed to achieving the ambitious goal of building of practical mass market vehicle that would have twice the fuel efficiency of of corolla class vehicle with the same high reliability and low cost that Toyota customers expect.

There were many skeptics at the time.

In 1996 total developed and launched its first battery electric vehicle the RAF for EV.

The RAF for EV faced significant challenges related to limited range long charging times and lack of available charging infrastructure.

But two of the engineers use customer feedback and valuable knowledge from the RAF for EV development to improve both battery technology and power electronics.

In 1997 total launch the best selling Prius the world's first mass produced hybrid electric vehicle.

Bringing practical H E vs to market was not easy.

It involved many innovations in motors inverters engines batteries and electronics.

Some of Toyota innovations in battery technology included materials manufacturing processes improve safety and crash worthiness.

High power output performance and better Recyclability for sustainable manufacturing.

Building upon that experience over the past 25 years to the has remained committed to developing an array of new technologies and products to help reduce carbon emissions.

We have successfully developed and launched a wide variety of innovative products, including hybrid electric vehicles battery electric vehicles plug in hybrid electric vehicles and hydrogen fuel cell electric vehicles.

The success of the Prius demonstrated that our commitment to carbon neutrality had also created a once in a generation opportunity for innovation and market leadership and today total of offers the worlds largest lineup of 55 practical reliable and affordable electrified vehicles all over the <unk>.

World with many more to come.

Our combined sales volume of electrified vehicles, including H E vs. The Evs ph Evs in F. C. V's is now more than 2 million vehicles per year.

The Atkinson cycle engines in our a T v's and ph Evs are extraordinarily efficient up around 40%.

These efficiency improvements have helped to reduce emissions in many parts of the world.

Particularly those with less green power infrastructure.

The net positive impact of Toyota is innovations enabled an estimated reduction in total cumulative carbon emissions of approximately 140 million tons in over 20 years.

This is equivalent to removing 1.5 million typical passenger vehicles from our world's roads every year over that time period.

We are proud of these achievements, but we know we can and we must do better.

That is why we are rapidly introducing 15 battery electric vehicle models globally by 2025, including seven recently announced Toyota of BZ models.

We are also expanding and improving our product lineup of Hev's ph Evs and FTE vs.

To support all of these new products total will continue to make global investments in exciting new battery technology, such as solid state batteries.

Along with more efficient electric motors. These new batteries will help make evs more practical safer and more sustainable.

Total believes the world can achieve carbon neutrality, but there are still many challenges to realizing our dream.

Even with perfect battery technology of B E V will still generate tons of cotwo over its lifetime. If it is charged by electricity produced by coal or other non renewable energy sources.

Another challenge is that not everyone has convenient access to charging infrastructure.

I am one of them.

I live in an apartment building in Tokyo and have no ability to plug in the vehicle.

Fortunately Toyota can offer me additional choices.

For example, ph evs offer flexibility and can be built with smaller batteries using fewer materials.

T V's can be driven and zero emissions electric mode optimized for the short trips that make up most of the world's driving.

As well as providing a hybrid mode for longer trips.

In addition to the continues to aggressively invest in complementary new Green energy technologies aimed at achieving carbon neutrality.

Toyota is the world leader in hydrogen fuel cell technology.

Hydrogen is the most abundant element in the universe.

It can be produced locally at the point of views with nothing but renewable energy and water.

Hydrogen can also provide long term storage of renewable energy for use during peak times.

After more than 20 years of research and development in 2014, Toyota launched the me Ray our first mass produced hydrogen fuel cell electric vehicle, which one of the world Green car of the year Award in 2016.

Fuel cell technology is truly magical.

As the vehicle moves are from the outside combines with hydrogen in the fuel cell to produce electricity and water.

A pure and simple zero emissions vehicle that can be refueled in three minutes.

Our second generation of me Ray was announced last December.

We improved performance comfort and efficiency, increasing EPA range to 647 kilometers or 402 miles.

Despite these improvements hydrogen energy still faces many challenges related to available infrastructure overall efficiency and enabling low cost clean hydrogen production.

Toyota will continue to invest in technology to overcome these challenges.

Moreover, passenger cars are only a small part of hydrogens future potential.

Toyota is hydrogen fuel cell technology could help to clean up of large percentage of the world's entire transportation ecosystem.

That means of achieving carbon neutrality in trucks and heavy transport trains buses taxis aviation shipping forklifts in industrial processes, all of whose combined C. O two emissions exceed those of passenger cars.

Toyota has also developed modular fuel cells and a standalone fuel cell generator that can be repositioned to produce electricity anywhere on demand.

For example, you can use Toyota standalone fuel cell generator to quickly deploy a charging station for a b V or ph EV.

But cleaning up new vehicle sales is just the beginning.

There are more than 1.4 billion vehicles in the world today, and most of them have internal combustion engines.

Toyota is exploring possible ways to clean up the world's legacy fleet of IC E vehicles that will still be in operation. During the next 10 to 15 years.

Hydrogen fuel can also be burned as of cleaner fuel.

Just last month Toyota demonstrated a new hydrogen engine prototype that could expand the options for achieving carbon neutrality faster.

In the World of Motorsports, where the development speed of new technology as rapid President Toyota who is the master driver of himself takes the wheel and repeatedly evaluates these vehicles and technology progress.

Toyota is work on making ever better cars. Now also has the potential to enable more environmentally friendly motor sports.

In everything we do Toyota is and has always been firmly committed to carbon neutrality.

Toyota has the world's largest and rapidly expanding lineup of electrified vehicles, consisting of the Evs Hev's ph Evs and F C Evs.

Because of our unique history of working with electrification for nearly 25 years.

Toyota is technology is world class and strongly position to help different countries around the world reduce emissions and achieve carbon neutrality faster.

This was all done before mandated rules by governments or the recent global movement and growing awareness of the need for carbon neutrality.

Giving back to the world and having a clean future is in our Toyota DNA.

We are very excited about the future of electrified mobility and the tremendous new products and business opportunities that the green economy will create as we make progress towards achieving our goal of carbon neutrality.

However, no single company, including Toyota can.

Can accomplish this go alone.

All industries must work together to develop new technology and infrastructure.

In cooperation with scientists and academia as well as local and national governments.

This is the challenge that we're excited about facing because it will not only lead to better products, but also help protect our precious plant at the same time.

We would like to be a trusted partner to build the best products suitable for people in every part of the world to achieve carbon neutrality faster with Toyota is brand representing quality reliability low cost and long lasting value.

Toyota is 100% committed to the global goal of achieving carbon neutrality by 2050.

And as a result of brighter happier future for us all.

Thank you very much.

Today in Iot.

Ladies and gentlemen, I would like to start the Q&A session. If you have that.

Click on the radar.

The screen and when your name is college sales will talk about all of that.

And I'd like to the question to ask no more of them to close the Nevada and the.

Even the value.

Well the main simultaneously translated.

For English questions and answers at the old Bay consecutively translated that therefore, the way for high density of translation, but some of them.

Some of them per se.

Instead of the Marine So you can see on the sales on the screen. Please start your question sorry.

Goodbye for now.

So I mean, it's the liver please.

Hello can you hear me okay.

Yes again.

Thank you so much for the opportunity today and I have one question for Mr. James cautionary about electrification of vehicles. It seems that theres kind of two camps. One is evaluating tireless pursuit of electric vehicles, one that looks at Toyota of kind of behind the pack in developing battery electric vehicles and another that looked at.

The recent announcement of the BZ electric vehicle plan as Toyota finally announcing the.

Plans that had been building for quite a long time, so not necessarily behind the pack I wanted to ask James where do you see Toyota standing compared to rivals in regard to the development of specifically battery electric vehicles, I know Toyota had the quite of strength in hybrid vehicles.

Yes.

Okay.

Yeah.

Okay.

Yes.

Yeah.

Okay.

Hello.

Yes.

Yeah.

So some of it.

Many of them.

Okay.

Sure.

Okay.

Right.

Yes.

Our goal.

Thank you very much for your question I'll make a brief comment and then I'd like to invite our CTO Mr Mehta to follow up.

One of the reasons that I spent some time to explain the history of electrification is that a lot of people don't actually realize that Toyota developed electric vehicles over 20 years ago, and we've learned a lot.

It requires a lot of innovation and development in engines and motors and power electronics. All of these things that are needed in order to build a practical electric vehicle and electrify.

The transportation and mobility and Toyota is always listening to customers always trying to develop products that are suitable for every part of the world and we have to remember that the goal is not electric vehicles for the goal is carbon neutrality and even if we have the best technology, if its not chose.

And by customers it will not have the impact of reducing admissions and that's the reason why we've chosen to have a full lineup and we've.

<unk> and all of these technologies, but make no mistake Toyota is really excited and I believe were strongly positioned to lead the world and the best reliable low cost battery electric vehicles. As you know producing batteries has a lot of challenges and we're trying to overcome them as well as the rest of the industry related to infrastructure, but.

We should also not forget that.

Mining some of the rare elements that are needed to produce today's batteries, whether it's lithium or cobalt of nickel. These things are also producing admissions. So we have to find the good balance and that's what Toyota is committed to we've reduced the size, we've increased power output and we've made incredible.

Innovations in performance and safety of battery technology, and we were doing that with 25 years of experience of building cars that are electrified and like I said, we are now selling over 2 million electrified vehicles per year. So I feel very confident that we can continue to lead the industry and changing in producing products that are chosen.

By customers all over the world that will deliver clean energy and clean transportation.

I'd like to ask maybe CTO might assign to follow up.

It's finishing line.

So the up because I know how the message that I saw so much but I thought that three months of it waits for the interpretation to for them.

Okay.

Yes.

No.

Okay.

Okay.

Yeah.

That's all true.

Uh huh.

The service.

There's a whole bunch of.

Okay.

Many of them get when you have to do it.

The nobody does but it's not easy to keep the peso.

So the old days it was in line.

What kind of food.

Good.

The other what do you foresee.

Just out of it and it isn't there something of that.

One of its kind of it neither of the snow.

Hold on it so I don't know.

So all of that and that type.

Thanks for putting that doesn't I don't know if it is.

No I don't know it sounds to me was the lights that are out of it.

For the basketball.

One of them.

Oh gosh.

And at what amount of non digital outside of the shop.

Because almost every facet of the many of them or not.

He was the really.

The conditional.

If that's the way they always do in the Atlantic.

So, yes, I do and Denver.

Sure.

I don't know what does from the whole kind of the snake goes from how can I say from my side, Let me add some comment on all coming out of them. Most of the most value stuff. The question of luncheon did even anymore for carbon neutrality.

Battery will do something for you got is.

One of you outweigh.

To realize the carbon neutral.

The cause of one way or the.

Realizing a carbon neutral is one the purpose of electrification debt.

Hum.

How can we achieve carbon neutral.

Toyota.

We've seen for environmental technology. So the money is not worth it if it isn't.

The used widely.

Carbon neutral by 2050 or in China by 2016 of the numbers that we are hearing but waiting for that.

Oh, we werent developing the first previous of and even at that time, we think that the technology is the only good away and it is widely spread.

Question is of how can we make technology widespread.

Okay.

None of them walk I thought you don't have to stop there because of your trust being translated simultaneously.

So the work the Arnold.

Yeah.

How can you make technology, usually why the value model.

Right.

For the customer is important as we mentioned it was one.

That's the reality of vehicles of that we prepare for will have to be practical for the customers. You don't know give some of the worldwide. There are many types of customers of course on a day to day basis.

People, who simply used vehicles on the passenger cars for the commentary.

It may sound like an excessive but the demand for example, the United States.

Oh, one pound trailer or sort of.

For some of them all.

Maybe told by here.

And one of the angry.

In the southern Hemisphere, there are people who go into the value.

The drive on routes, where you can't you're watching vehicles the main driven.

The Oracle Toyota even before the days of electrification.

That's always true.

The launch of the customer responding to customers' needs.

The result, we created the current flow of lineup of products that we have there.

Carbon neutral the when we prepare.

Just like all of them. It's the same I'm, probably the where people could total studio you always sort of.

Trailers, what kind of vehicles.

The hybrid.

Currently.

Almost sort of at all.

A lot of things hydro for the most convenient and if that is representative of anything in there for them.

Can you answer in the future for me.

Okay.

So I think we'll get some of the.

And patients that had the higher battery performance.

Okay.

So not true.

The only of batteries.

Depending on the reason customer of ours.

The vehicles in their order book.

Swings in the continuing any learnings of Texas.

Okay.

Uh huh.

Provided by Toyota both of them.

Toyota we think that is important and of course.

For electrified vehicles out of resource we have a full line.

The HEB.

D C D C E D.

The full line.

And that is causing all of the convenience of of the customers and the violent.

The mono.

Most importantly, and as we consider this very sawyer for any of it.

The lineup.

The future for some had expected.

Oh, he would like to continue to make efforts. So that we can realize the carbon neutral with the electrification. Thank you.

Maybe some of them added up all the time I saw that can be the day before your questions very much.

And it does all the stuff. So did you I'm thinking of of course for now let's move on to the next question.

The good on all of the summer Mr. Now sort of catch up fees coming out of them.

We're gonna be grants or if you didnt hear yourself on this graph is the startup question.

But I'm a guy named keto craze of of the muscle over here now.

Okay.

Got it.

I'm out of amortization Mustang Simona sure as good of that could you start the player.

All of it.

Now do you get a free Lance a journalist thank you for the opportunity.

So one of them.

You talked about electrification moving toward that he said that we would require the search.

Times more badly.

Or are there things currently.

K E book.

Of procuring the battery, especially at the moment.

For the battery protection.

They say of a cobalt and nickel included that was mentioned earlier.

It looks like your whole true.

Good day, those raw materials are procured for the most part of in China, and probably you wouldn't normally sneak the start thinking about brokering in Japan or from Japan for the alone wouldn't be able to choose the it would require cooperation with the government and one of the current status of the discussions with the government about the book.

The amount of those real raw materials for the battery.

One other question, which also relates to the bathroom city won't be linear for that.

Many of US looking at those Metro is good.

Hum.

Italy.

Yeah.

If you.

Leave unaddressed of it could take fire and probably it'll become costly if you tried to control of the characteristics.

Characteristics of the batteries are taken by yourself what is the balance of that in terms of cost of competition amongst the rivals how are you.

Moving to maintain your cost competitiveness trying to control. The combustor is most of those batteries.

Thank you Mr. You get off of your question, but the fact the first question.

With respect of the protection of battery.

Okay.

Okay. The other C P O.

The answer the first part the other question and that kind of.

The question relates to the safety of battery and most of the balance of where the cost and Mr. Meyer. The CTO will respond to the question for Mr of calibrated.

Thank you for your question Mr cause I wish the money.

And I make the answers.

The first of all of them.

In terms of the procurement of raw materials for battery protection.

Naturally as you pointed out in your question, we do have those concerns.

Just those concerns.

In relation to the batteries, we do have various partners.

We do have of several partners, who work with us for battery and the creation and restarted and making the effort.

Sure the broker of messed up out there anything of note you mentioned the collaboration of cooperation where the government is required for the procurement of purpose and the requirement of blah blah blah blah batteries and that is the very important aspect of itself for working with partner is one thing we are doing and also we have oh the partner.

Working with us in all of a subsidiary of the battery manufacturers. So we work with Panasonic for sure.

Good day.

I'll go from government.

Oh, the materials of for batteries.

And so we have more I'm sure the procurement of raw materials for in terms of the procurement of vote as Mr. Non dimension, though the production volume.

True.

Operating currently annually.

I think of it.

The write down in 'twenty.

Thank you.

A couple of dollars and coverage.

Coverage of nearly six day of production line for those of the battery to ensure that the volume for the past 20 years or so for hybrid it needs.

We produced 17 million hybrid vehicles.

And the bad for is required for the hybrid electric vehicles I think about the deal that was kind of probably 30 times the debt would have to be produced in the next day.

The 10 years or so so most of the most as mentioned earlier.

In addition to ensuring the procurement of raw materials the remainder.

Sure.

Appropriate production all of the batteries as well, we must ensure the supply of stable and stay for supply of value for us. This is a cure of Adobe.

Volume relative to the phones.

The batteries are we are working closely with simple multiple number of passengers in the family.

So that is very important to know.

That's subsidiaries of Alfa produced in batteries, we have PPS and all sorts of habit.

There's the per definitely there is close to in house production and then the small kit that starting with the small capacity.

And starting with the Crazy so the more basic unit, if you're talking about we are establishing a new production lines for gearing that towards the other.

Time, and the repeating at that.

The very quickly.

That's what we are trying and if those of the ability for manufacturing is necessary, we are going to produce and manufacture of those production for the services of films.

To share with you some slides as I mentioned earlier back in 1997.

The introduced hybrid vehicles and several of them 90 97 the.

The production facilities of the hybrid motors and the always on.

The professional.

Professional lines for the batteries and so F Ter.

We are producing.

The hydrogen tank manufacturing Hickman.

Of course, those important he wasn't the protection of agreements starting with the smaller less secure.

The minimizing the required investment.

We have been introducing those are the protection of line introduced in the short term.

So those are there for exactly has made over the years of normal.

And there's a lot of technology and scale that we have accumulated over the years.

It will be in line for the production for the ex.

You've got to defend the sort of them off.

Yeah.

Cash from overall, so we Didnt group of we have the businesses of course, you're thinking for next day switch neck and mobilizing the capability of the close.

It wasn't that the manufacturers are really interest tend.

And to have the fold it in.

Robust the structure for battery supply and procurement.

On the.

Okay.

Yeah.

Speaking of.

The safety of February and the costs are the best balance between the true.

For the supernova.

Let me start by speaking from a broader perspective.

From the Arnold from.

The internal soon or when you say battery performance.

There's little too.

Talking about the.

The batteries are seeing from the customers point of view of what the performance of each of the customer who was actually as you mentioned sort of got a cruising range.

Probably considering all of this.

Generation performance, but you'll have an impact on the used car prices. So some of the major factors for you'll need.

And according to volume.

And the profit of using the product the home.

The pace cannot be the.

For the worst case of batteries cash burn on a whole bunch of stuff.

Making sure that that doesn't happen.

We have to strike a balance of just thinking of it isn't it.

Technically astute.

For example, if you wanted to know like again the cruiser.

For the volume how much of.

The small power can you accumulate.

Energy density in all of the casino.

The performance and the deterioration of performance.

T D.

Sometimes the country.

On the and should go to Congress.

Your line is always important to Toyota and so.

The energy density is not always sort of deal.

The priority for us.

That will be our approach that was taken off.

How do we need for cruising.

For example.

Good day.

And for efficiency.

<unk> kind of engineers.

All of it.

Of course, our engraving battery performance is one of probably the most of them.

You can look at the overall.

Cool.

The power efficiency through the month.

Reducing the debt some resistance.

Or something of that reduced the energy and this is why it's going to kind of inside the vehicle can be reduced to of course.

It's really the hydrogen vehicles for them.

Oh development, because we have accumulated last line of technology over the years.

Got it any day.

As a result of improving power efficiency will lead to reduction.

For the letters to the us.

Infusion safety.

Moving up all the efficiency and reducing the burden of illness.

Isn't it.

So I.

I believe.

Okay.

The license that came together.

So that is for two of the Huston looks almost standard over the years.

And we will continue to look at things from the perspective of the customer most of the school.

Now, let me go into a little bit more of a detail.

If I can have the slide 14.

Hey, Josh.

Got it got it.

The deterioration.

Total will come upon us.

With that I will be going into the detailed technical explanation allowed them to do that.

For example.

For <unk>.

So think of a battery of you know how to deal with if you want to Squirrelly right of way of energy goes in and out of frequently at the C. On the left hand side.

The electrolyte of concentration.

Concentration will vary for oxy.

That accelerates a deterioration of the batteries.

So still took you out of this.

The only thing the hybrid vehicles he's been waiting models.

This day.

The volume in the.

Current.

For the temperature when these are always changing how do they deteriorate we did a lot of.

The basic experiment.

This is what we call the model based on development.

So we created a control system by multiple of monitoring.

Battery.

Total do anyway.

Since the introduction of hybrids using this model of mono.

So you'll get a total of.

Oh, he interest amongst yourselves.

Taking all of this what we must of the COVID-19 two components, the accuracy and reliability of drilling or a hybrid of currently.

17 of hybrid.

So the Toyota.

My other question.

Okay.

Because of our knowledge there were no cases, where there were no serious impact on the customer.

I think we are being used to safely and reliably by the customer of ours at the moment.

So historically, we have accumulated this kind of technology.

This is useful of hybrid vehicles and so this will be used in the future for the battery E D.

That is all of them approach to the technology and come up on us.

We went into a bit of details, but that day. So from my side. Thank you very much.

Okay.

Thank you very much Mr Uchida.

Let us take the next question.

Yeah.

Yeah.

How do you do it for them all the different uses of how some of them.

Automotive news from the handset.

What do you see maybe they wouldn't be the screen. So when you see yourself on the screen. Please ask for.

For the hydrogen.

The indications of any of those questions over here of the Japanese translation after of the question.

Some of it one of the Guy Smith Who's the husk. Please.

Hi, Ed.

Thank you for taking my question today.

Speaking of English please.

My question is a little bit about the battery ramp up that you have you have need this massive ramp up in terms of battery supply by 2030 can you tell us a little bit about your plans for building and sourcing are electric vehicles and electric vehicle batteries.

In North America, specifically.

And one other thing about the the carbon neutral of policy Toyota has been talking a lot lately about this hydrogen burning engines that youll demonstrate later this this of.

This month at Fuji Speedway and also about E fuels, how seriously are you investing in these kind of technologies right. Now is that of real pathway forward to carbon neutrality or is that just kind of a buzzword or some kind of distraction right now from the from the main show and finally, maybe just if I could.

I ask for an update on the.

The woven city.

When can we expect some new developments on that when will you announce who is living there.

Other kinds of updates you might have thank you.

Right.

Okay.

Yeah.

Yeah.

Okay.

Yeah.

Okay.

Many of them.

Yeah.

Yeah.

Okay.

Okay.

Okay.

For now.

Yeah.

Yeah.

Okay.

Okay.

Okay.

Got it.

Okay.

Yeah.

Yeah.

Yeah.

Yeah.

Okay.

Yeah.

Sure.

Yeah.

Good day.

Thank you.

None of them.

The problem.

Okay.

Okay.

Yeah.

Yeah.

For the.

Uh huh.

The wrong.

Angel for me.

E N C diff.

For the rest of it for Oems.

She just kind of see day range.

Well you have to do the item for clarity the regular she digital growth and myself and one of the senior with Influencers.

I don't know the level. Thank you very much for the first question with some on debt.

So for me don't get it on the B you know then the.

The E G on the other battery sourcing plan growth from there will.

We'll be asking for.

As a matter of be answered by Mr cut off the deal for a issue of an H engine from the semi.

And for the mood in the city right Doctor cut from the will be asking the question.

Some of them.

Thank you very much for your question for Daniel.

The first question of us about a better sourcing in North America each of them hold them off.

In part one we briefly touched upon this but any growth.

In each region.

The indoor so it could be a holiday electrified vehicles will be produced.

Yes towards the end up with one of them.

Sort of that plan is developed and of course, the batteries will be necessary in each region pretty MA the Ma.

Oh My God.

And in each region, which vehicle or with the powertrain will be necessary.

That will have to be identified through dialog with our customers always diffusion of beach and.

The batteries for necessary for that.

It has to be produced within that region that will be an important point you towards the future for because even though you mentioned North America and the same approach will be applied to North America for.

North America. He's asked for an issue they have asked for that end to end the depending on what where you only gave out of the states. The customer's preference will differ between the east coast to West coast and central part of them, so customer preference of infrastructure of different depending on the regions. So taking that into consideration if we will be supplying vehicles for.

And likewise for batteries.

The bridge E G.

For these vehicles, so we will be sourcing.

The appropriate batteries and in order to do that sort of we will work through partners and we may do.

Produce enough. So we haven't determined which approach will be taken but two of them.

We will consider that so that we can provide supply in a timely matter that is all from my side.

Cool.

That's the minimum.

So for the second question, let me answer.

On the problem.

That's always the carbon neutral the hydrogen engine if you will.

Sure.

Oh of serious RV in investing in this area of the starting with the hydrogen engine.

Our suite of Donald.

Two months ago.

The appraisal well of dry.

Okay.

In the endurance races. So of course, we are serious we believe there's no way we are not serious.

The amount of.

Most of them.

As we mentioned before.

The customer convenience of is important and the cost of it seems as if it would go from there.

It's going away.

And so the options for the consumer.

Neutral shouldn't be limited.

All of our thinking and that is why we are developing of various types of cars of.

Of course, the precedent is participating in a race the joy.

Driving the capacity.

The enjoyed by the middle customers and enjoy the.

Carbon neutral.

The recent hydrogen engine.

Maybe one for vision and ask me.

I think that way.

But on the serious about this.

This is all of the team will be applied to a large commercial vehicles right of anymore.

The possible and as Mr. Huntsville.

In the light.

The Brazil.

Oh, no no base of carbon.

The carbon neutral for fuel is already commercialized.

But this is based on existing technology, the multiple and in the future.

Good day.

Combine that with hybrid.

Hey, Michael.

We will be able to contribute quite a bit more true in saving energy.

That's the garages that we have developed so far and the technology that we are developing some of that alone can be combined.

On the call.

So the carbon neutral it does not limit the bonus for the anymore. You don't know me say for Linux.

You mean, the attending the preferences and the way of using the vehicles.

He wanted to provide.

All.

All right array of options one of the customer.

So for any technology.

We are very serious about it.

That is all.

Thank you Hans for your question I'll take the question about woven city.

It's been 16 months.

Since the present to you to announce the woven city project at computer consumer Electronics show in Las Vegas, and since then the team has been really hard at work.

Okay.

Uh huh.

Yes.

Okay.

Your line.

Yeah.

The numbers.

Hum.

Some of them.

Yeah.

And despite the COVID-19, we were able to complete.

Complete the phase one designs and start the groundbreaking officially this year February 23rd.

And we are making continuous progress.

And we have launched also our website, where we've had several thousand inquiries are from companies and partners all over the world.

Yeah.

Okay.

Okay.

The movie.

The market.

Okay.

Mhm.

Yeah.

Okay.

Okay.

Okay.

Right.

Your line.

Yeah.

Interesting.

Okay.

And we just announced a partnership with any of those.

To develop what we believe will be the most advanced city and hydrogen.

And we believe that that is going to.

Accelerate our initiatives in order to understand how hydrogen and renewable energy can play a big part in smart cities of the future woven cities goal is to become a living laboratory of mobility for people goods and information.

And.

We are continually making updates.

David.

Okay.

Okay.

Right.

Some of them.

Sure.

Hello.

Right.

Yeah.

Okay.

Uh huh.

Okay.

Okay.

Okay.

Yeah.

So.

Yeah.

Yeah.

The board.

Okay.

Good day.

Okay.

At this point we have a.

Plans to start inviting.

The company's to start working with US and we've also launched our website, where you can find continuous updates. So please stay tuned.

Oh.

Yeah.

Okay.

Okay.

Yeah.

Right.

Woven city is.

It's going to be I think of very important part of accelerating our efforts as a company to become a mobility company powered by software and digitalization and really be a true world leader in this area.

There's so many issues were around urban.

Then development, whether its traffic or pollution sustainability.

And all of these efforts are connected whether it's carbon neutrality safe mobility, we would like to accelerate the development of all of that and transform our company to a mobility company of the future through.

Through the woven city project.

Yeah.

Okay.

Yeah.

Right.

Yeah.

Yeah.

Yeah.

And this is just part of the larger transformation that we are embarking upon related to software first I didn't have time to talk about that today, but software first is a dramatic transformation in different way of designing products, where we design the software architectures before assembling the.

The product and designing of the hardware.

And this is going to dramatically.

Improve our reusability of software across many many different forms of mobility.

Reduce the development costs and accelerate the features that we can offer to our customers over time and this is not just for traditional passenger cars, but for all kinds of new connected mobility personal mobility.

The flying mobility and that is going to be something that I hope woven city can be a flagship project and help lead the world in accelerating that development.

Thank you.

Thank you.

Yeah.

Yeah.

Okay.

Yeah.

Okay.

Yeah.

Okay.

Yes.

Yeah.

Okay.

Yes.

For the Middle East.

Good day.

This book of business.

So kind of approach.

Great.

Yes.

The digitalization.

Of the software first that's happening.

<unk> in our company on our traditional engineering is all connected to the advanced digital technologies that we will deploy and develop in woven city. So I believe that they're all part of the strategy of leveraging advanced digital technology.

<unk> connecting those two real products and getting real feedback in a real situation like woven city and that's always been our philosophy tried to test and listen to what customers are experiencing and build products that.

Produce human health and happiness.

Yeah.

Okay.

Okay.

Okay.

Okay.

Okay.

Okay.

Some of it.

Yeah.

Exactly.

Okay.

Okay.

Thank you.

Right.

Kind of some of them how do you have of what they must stop.

The most of them a lot of your the student you have the there may be a further questions, but since the schedule for clothing time has approached so I would like to ask the next person to be the final person asking questions [laughter] American book.

I missed what did you need rather than the other thing of newspaper real quick the screen. So if you see yourself on the screen. Please starts for the Oracle.

And then I guess another chip of some please start your question what is true.

Sure.

For Microsoft to kind of hear me G box speaking, yes, we can hear you plenty of what's going on is most of them. Thank.

Thank you for the opportunity to.

So it sounds like with the Bill.

Most of them.

Of carbon your station.

You talked about the the next generation battery.

And the Mr. Now that the in part of the one you talked about.

The importance of enhancing the place.

So the matter of technology development could you elaborate.

Of that in detail for smoking, Georgia off most of this.

No net new.

Nothing okay.

How are you going to enhance the performance of battery for.

The mobile channel and how are you going to bring that forward.

And the produce those batteries is there any kind of crazy numbers that you kind of a science.

And the can you also talk about the old solid state battery as well do have any of them.

Okay.

The timing of prospect of realizing that the limits that kind.

The question.

Related to the carbon neutrality and Mr.

Oh I see.

For more being made of thinner and you may be using existing engine of bonds.

Talking about our carbon neutrality, we tend to focus more on electrification.

With respect to the development of engine technology of the gasoline, including the improvement of Gander Mountain.

See the reasoning.

Mr. Jay, but it's very difficult for us to hear your question that the sound is for that.

Not really coming through so could you repeat your question once again.

Until it really sort of can you hear me all right can you hear me of right.

Most of you don't want anybody could you repeat your question once again.

We have so much noise, there's sort of the home of theaters.

If you could speak louder, probably that will help drive cash.

Can you hear me.

Well, we can't hear you I'm terribly sorry, Mr chip of suits.

With respect of the battery technology earlier, it was mentioned that you're going to increase the pace of development that was mentioned in part one.

And I would appreciate your elaborating on the fat more concretely on the right.

How much are you going to bring that forward the development of battery of it doesn't allergy and supposed to play in the whole lot. So does it hasn't got the somebody it's been very difficult for us to receive your voice very difficult to hear discern your voice.

The only thing I took the squeeze the most of that got them I think we cannot hear you.

Can you hear me interest you buses.

Could you sort of it's Mike again kind of just giving me all right most of the right now we can share yes.

I'm terribly sorry.

For all.

Yeah.

And part one of Mr. Now got that talks about the development of battery technology and he said one of the.

So that's going to enhance or accelerate the pace of battery of technology development.

And I would like to hear.

Here are the details of that JV of that go into it.

What did he get smartphone won't show up there.

Target.

You have sort of battery technology, and how much are you going to bring debt.

In the months before.

Before long.

If there's no.

And he could talk about that in the more comfort in specific terms I would appreciate the.

And then the second question also relates to carbon neutrality in Russia.

And you talked about the making our internal combustion engine.

You talked about and talking.

Talking about decarbonization.

The focus more on the electrification technology, but with respect of the development of engine range.

Based upon the consistent gasoline and Jim you might be able to enhance the fair amount of fitness yoga and the recruiting that aspect of it.

How much investment first of all you're expecting for engine development or investing.

All of the resources.

The engine technology, and you're not intending to reduce some of that.

I would like you to talk about your approach and concept of the engine development. So these are the two questions.

Thank you Mr Chip for your questions.

So let me talk about the first question that is the day of shortening the development time lead times for the battery technology and the Mr. We've got a bunch of about that.

And the second question that is let's say the.

And hesitant of Ah I see it we're making any cleaner Mr. Mehta will talk about that okay. The speaking.

Mr Chip I. Thank you for your question.

These duties.

Starting with the part one we haven't talked about battery in part two of smell and ending of moving towards 2030.

We are trying to accelerate the pace of as quickly as possible and we are going to secure the necessary value.

Does that hybrid vehicles and ph UV.

From a production of our customers and do support the technology significantly.

And therefore in terms of supply.

Yeah.

Either of those vehicles that had been doing that.

We will continue the duo of batteries of for.

And also if you can do so we are.

Working on debt and re acceleration of further so probably in the middle of the.

Scared between 'twenty to 2020 of surgery.

On the docket it anyway.

That's the timeframe, we intend to just further or not.

Have a sort of capabilities for batteries for the study.

The supply of that type of phenomenon and ensure the supply of those factories that we've developed the saw that we'll be able to achieve the goals that we set for ourselves for 'twenty, one and so that's what we're working on in earnest at.

This momentum of Inspector.

For the all sort of stayed with batteries.

Just kind of fill in the process of adult for many articles and Mr. Michael will talk about that sort of pattern.

The supplement later on.

Well I can day.

In the process of doing that we're trying to accelerate with the patents.

The Gulf.

Well.

And the mother of all supplement that further.

Right.

The speaking.

And including additional remarks of the sector is my first question I would like to kind of model.

The batteries solid state batteries.

Developing raw materials for that.

But the logical it speaking we still have the high hurdle to what she's the one of them go over I won't be able to go into.

Great details.

In terms of the other raw materials that are being developed.

And the durability of our nuts.

And you know the small.

Net revenue specializing on the development effort dedicating of interest.

The development of raw materials.

And durability of the climate.

Mr. Not the mentioned earlier paid.

The other battery development interest.

Now that the east of the shortening of the league.

We have plenty of them.

Hello.

Okay.

The move towards the achievement of Congress.

We talked about the importance of offering great.

The technology.

But the differently.

Right.

Got it.

American of L. Three.

For choosing channel.

Vehicle nothing graduate convenience.

Good day.

So given the uncertainty and your customers may change the regular.

It just might change.

And that's where we find ourselves from the world.

For those changes.

Why don't we work on the field.

For shorten the length of time for development.

I think the department of the battery.

Let me ease of doing those.

The screen.

Compared with the existing Toyota vehicles easy for indications of a seafood.

We have shortened the lead time for development whereby the IRA.

So I get the channel.

So kind of things more on the batteries.

We are now working hard for that cause the weekend.

Most of them.

Okay.

That means as a result.

Uh huh.

Hey.

All of them.

Yes of course.

The increase of them.

Please go ahead, sorry total debt.

The realized that this is the next day.

So the idea of zero I think there are two of the important center.

You talked about earlier.

The digitalization of the importance of it.

Well the tip of my.

The plane the safety of batteries for bad debt.

Good day.

We use of computer simulation.

The development.

And that's the kind of engaged in the Gulf that using the computer simulations the.

None of the development environment itself is going to be digital line, so working with governors team.

Do you need to have.

The robot.

What do you want the T before you sort of.

Nation for them.

The first of all for.

Net.

The cheese.

Of the evaluation dengue and that's really good that the cheap at the Toyota the Hudson accumulating over the years ago, the become very important in the car.

The other digital channel.

Okay.

Since many of different engineers built working together.

The drill sort of can be made by a single person, but the index.

For the digital at the Goldman Lockdown.

The will be.

Good day.

So.

How does it flow.

The things that take the line.

And that's the area where the concept of.

Yes.

Can be applied and if that all the time.

The credit streamlined picked up yes.

The efficiency and further leveraging of our own stress.

And the digitalization of debt.

The book globally to the.

One of your planning of the East that was mentioned in your second question in the latest without line three.

Yeah.

First of all I talking about the need.

Allocation of resources for enhancing.

The same thing.

No.

Some of the efficiency of existing engines and already aware of I know you weren't necessarily.

We're working all of that but as Mr issue, but if you're concerned about.

Okay.

When a large amount of resources on the debt.

We have engaged them from a guy.

The electrification.

Yeah.

One of the amount of resources, we can dedicate their limited the bill for it even if in the case of the development of engines in the distillate.

Jason becomes important.

The S concept in those two becomes very important so let me take both of those of course.

The ratio using digitalization and keep the yes.

We will reduce the minimized the basic unit of developing all of that.

Okay.

Overall efficiency of can be enhanced.

The important now why the.

The cleaning of I D is important because you show us the slide number 15 for that purpose the CDR.

Yeah.

And part of spun out of school Mr.

Mr. None of that Tom mentioned about debt.

He is doing more of it.

In the case of that.

H E b when the peso.

From using it.

It's not.

It's showing here starting with that for a hybrid version of starting from.

On the left.

Yeah.

The truth is definitely.

Got it.

Clothing, the vehicles for the hero.

The people of inflationary items.

Between 60 per cent of 19% for engine.

It's not running which means for the rest of the time of the engineers.

Yeah.

The law operations.

The enhanced for in Florida.

So all of those.

But.

The percentage of.

Occasionally some of it.

The other thing.

The engine.

And of course.

Efficiency and so the only.

In terms of.

Speaking of hands.

For the efficiency of engine sales.

Using digitalization in TPS, even with the smaller amount of resources.

We'll try to keep the similar result of the.

For development and taking advantage of that and the uniquely Toyota way of doing that so we would like to use those of development to achieve the call. When you draw they took all the cohorts.

That's all thank you Mr Chew bags.

We'd like to complete the financial results Press conference I. Thank you very much for taking time off the.

Schedule and the be a part of this program for long. Thank you very much of a participation.

Okay.

[music].