Toyota Motor Corporation

Toyota Motor Corporation (TMC) is one of the world’s leading auto manufacturers, offering a full range of models, established in August 28, 1937 by Kiichiro Toyoda . The company manufactures automobiles and motorcycles. The year 2007 marks the 50th year of Toyota’s international participation in motorsports. Products: Toyota, Lexus, Scion. Industry: Automotive, Robotics, Financial services, Biotechnology. Toyota is publicly traded on the Tokyo Stock Exchange under number 7203 (first section). Also on NYSE under: TM.

Toyota announced in March 2007 that its motorsports activities will focus on competing in the FiA Formula One World Championship (F1), NASCAR, Super GT and Formula Nippon, and on training upcoming and promising drivers. For its sixth year in F1, Toyota is employing the new TF107 racecar, with improved aerodynamics and weight distribution and equipped with a newly developed RVX-07 V8 engine. Ralf Schumacher and Jarno Trulli are continuing as the main drivers.

Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 8.81 million units from January 1, 2006 to December 31, 2006. Besides its own 12 plants and a number of manufacturing subsidiaries and affiliates in Japan, Toyota has 52 manufacturing companies in 26 countries and regions, which produce Lexus-and Toyota-brand vehicles and components. As of March 2007, Toyota employs approximately 299,400 people worldwide (on a consolidated basis), and markets vehicles in more than 170 countries. Toyota’s automotive business, including sales finance, accounts for more than 90% of the company’s total sales, which came to a consolidated ¥23.94 trillion in the fiscal year to March 2007. Its diversified operations include telecommunications and prefabricated housing.

Since its foundation, Toyota has continuously strived to contribute to the sustainable development of society through the manufacturing and provision of products and services that lead the times. The foundations of these endeavors are the Guiding Principles at Toyota and an explanation paper entitled Contribution towards Sustainable Development that interprets the Guiding Principles at Toyota. In 2002, Toyota adopted the Global Vision 2010 which proposes the ideal stance to be adopted for the benefit of people, society, and the global environment. Toyota will continue its efforts to contribute to the realization of a sustainable society through "making things".

Toyota Activities:

Guiding Principles at Toyota

- Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world;
- Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities;
- Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities;
- Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide;
- Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust and respect between labor and management;
- Pursue growth in harmony with the global community through innovative management;
- Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

Investor Information

Major Shareholders (Top 10)

- Japan Trustee Services Bank, Ltd.
- The Master Trust Bank of Japan, Ltd.
- Toyota Industries Corporation
- Hero and Company
- State Street Bank and Trust Company
- Trust & Custody Services Bank, Ltd.
- Tokio Marine & Nichido Fire Insurance Co., Ltd.
- Mitsui Sumitomo Insurance Co., Ltd.
- Denso Corporation

Board of Directors

Fujio Cho - Chairman and Representative Director
Katsuhiro Nakagawa — Vice Chairman and Representative Director.
Katsuaki Watanabe — President and Representative Director
Tokuichi Uranishi, Kazuo Okamoto, Kyoji Sasazu, Mitsuo Kinoshita, Takeshi Uchiyamada, Masatami Takimoto, Akio Toyoda — Executive Vice Presidents and Representative Directors
Yukitoshi Funo, Takeshi Suzuki, Atsushi Niimi, Hiroshi Takada, Teiji Tachibana, Shinichi Sasaki, Akira Okabe, Yoichiro Ichimaru, Shoji Ikawa, Koichi Ina, Takeshi Yoshida, Shinzo Kobuki, Akira Sasaki, Hiroshi Kawakami, Tadashi Arashima, Mamoru Furuhashi, Satoshi Ozawa — Seniors Managing Directors
Shoichiro Toyoda — Honorary Chairman
Hiroshi Okuda — Senior Advisor

Toyota and Lexus Brands

Basic Policy on the Distribution of Profits and the Distribution of Profits for FY2008

Toyota Motor Corporation ("TMC") deems the benefit of its shareholders as one of its priority management policies and continuously strives to increase per-share earnings, through aggressively promoting its business while improving and strengthening its corporate foundations. With respect to the payment of dividends, TMC seeks to enhance the distribution of profits by striving to raise the consolidated dividend payout ratio, with the aim of gradually increasing it to 30%, and TMC is endeavoring towards the early attainment of this goal, while giving due consideration to factors such as annual operating results and new investment plans. Furthermore, TMC repurchases its own shares to improve capital efficiency and to respond appropriately to changes in the business environment.

TMC pays dividends twice per year — an interim dividend and a year-end dividend —, and in order to secure an opportunity to directly seek shareholders' opinions, TMC treats payments of year-end dividends as a matter to be resolved at TMC's ordinary general shareholders' meeting, even though TMC’s articles of incorporation stipulate that retained earnings can be distributed as dividends pursuant to the resolution of the board of directors.

As TMC anticipates the continued growth of worldwide automotive markets, TMC will utilize its internal funds to invest in improvement of product performance and development of next-generation technologies to achieve future growth, to develop production and sales networks in both domestic and overseas markets for further expansion of its global business and to expand into new business areas while securing a solid management foundation.

TMC will increase interim dividends for FY2008 by 15 yen per share to 65 yen per share from the interim dividends for FY2007 declared in November 2006. As a result, the consolidated interim dividend payout ratio for FY2008 will be 22.0%.

Also, in accordance with the policy mentioned above, TMC repurchased 13 million of its treasury shares during FY2008 semi-annual at an aggregate cost of 99.4 billion yen (excluding fractional shares repurchased in accordance with shareholders’ requests to purchase).

Symbols of Corporation on Stock Exchanges

Forecast of Financial Results for FY2008

Although TMC expect overall growth of the world economy to continue, we face a variety of unstable elements in the future business environment, including concerns about the future of the American economy, movement in oil prices and changes in the pace of growth of the Chinese economy. The Japanese economy is experiencing a moderate expansion, but there are concerns that rapid fluctuations in exchange rates and continuing high prices for raw materials may have an adverse impact on corporate revenue, which is the driving force of the current economy. Also, in the automotive industry, emerging markets which are expected to continue to grow, competition among leading global and regional auto makers is becoming increasingly fierce. In addition, environmental regulations are being strengthened throughout the world and environmental awareness is on the rise, leading to intense global competition in the development of technologies and the introduction of new products.

Under these circumstances, current forecast of consolidated financial results for the fiscal year ending March 2008 is set forth below. This forecast assumes average exchange rates through the fiscal year of 115 yen per US$1 and 159 yen per 1 euro.

Forecast of consolidated results for FY2008:

- Net revenues 25,500.0 billion yen (an increase of 6.5% compared with FY2007)
- Operating income 2,300.0 billion yen (an increase of 2.7% compared with FY2007)
- Income before income taxes, minority interest and equity in earnings of affiliated companies 2,450.0 billion yen (an increase of 2.8% compared with FY2007)
- Net income 1,700.0 billion yen (an increase of 3.4% compared with FY2007)