1. HARMONIOUS GROWTH OF AUTOMOTIVE INDUSTRY IN MALAYSIA AND ASEAN YBhg Datuk Takashi Hibi Advisor To Executive Committee, UMW Toyota Motor Sdn Bhd Counselor, Japanese Chamber of Trade & Industry, Malaysia ASEAN Business and Investment Summit 2015 November 21, 2015 Kuala Lumpur 1

2. Toyota is committed towards the Global Environment by 1-1 New vehicle zero carbon dioxide emissions 1-2 Life cycle zero carbon dioxide emissions 1-3 Plant zero carbon dioxide emissions 1-4 Minimising and optimising water usage 1-5 Establishing a recycling based society 1-6 Establishing a future society in harmony with nature from Toyota Motor Corporation Sustainability Report, 2015 1. Toyota Environmental Challenge Towards 2050 2

3. 3 1: New Vehicles Zero CO2 Emissions Challenge Reducing global average new- vehicle CO2 emissions by 90 percent by 2050 (compared to Toyota’s 2010 global average) 3: Plant Zero CO2 Emissions Challenge Zero CO2 emissions at all plants by 2050 [from Toyota Motor Corporation Portal site] 1. Toyota Environmental Challenge Towards 2050

4. 4 2.1 Deliver best product to meet ASEAN customer’s demands 2. Toyota Operation in ASEAN 4

5. TMT STM TMMIN ASSB TMP TAP TMV 2.2 Contribute to industrial development in each country (Toyota production network in ASEAN) (Toyota production network in ASEAN) Vietnam 35k Philippines 42k Indonesia 209k Malaysia 80k Thailand 725k Vehicle Mfg Plant Main Components Mfg Plant Vehicle Production in 2014 x1,000units 2. Toyota Operation in ASEAN 5

6. TMT STM TMMIN ASSB TMP TAP TMV 2.2 Contribute to industrial development in each country (Toyota Group production network in ASEAN) (Toyota Group production network in ASEAN) Vietnam 35k Philippines 42k Indonesia 209k Malaysia 80k Thailand 725k ( Perodua ) Vehicle Mfg Plant Main Components Mfg Plant Vehicle Production in 2014 x1,000units Daihatsu Hino 2. Toyota Operation in ASEAN 6

7. 2.3 Reserve natural resources (social contribution activity – “Eco Youth”) (social contribution activity – “Eco Youth”) 2. Toyota Operation in ASEAN 7

8. 2.3 Reserve natural resources (social contribution activity – “Mangrove Planting”) (social contribution activity – “Mangrove Planting”) 2. Toyota Operation in ASEAN 8

9. 3.1 Toyota HV production / sales in 2014 3. HV Production in Malaysia 9

10. 200920102011201220132014201520162017 Gov’t incentive EV / HV Total Sales (‘000) 0.3 8.415.415.05.1 5.0 (est.) CBU/CKD Excise Duty : 50% Import Duty : 0% CBU/CKD Excise Duty : 0% Import Duty : 0% HV CKD Only Excise Duty: 0% Import Duty: 0% EV CKD only Excise Duty: 0% Import Duty: 0% 3.2 EEV (Energy Efficient Vehicle) incentive by Malaysian Government 3. HV Production in Malaysia 10

11. 11 3.3 HV Camry production started in April 2015 3. HV Production in Malaysia 11

12. Monthly Average Sales (units/month) 3.4 Camry price and sales xRM 1,000 Units 3. HV Production in Malaysia 12

13. Toyota 1.8 Prius 1.8 HV Altis 1.8 Gas E/G CO289 g/km167 g/km Fuel consumption3.9 L/100km6.6 L/100km Camry 2.5 2.5 HV2.5V Gas E/G CO2119 g/km183 g/km Fuel consumption 5.1 L/100km7.8 L/100km Source: Toyota Motor Europe https://www.toyota- europe.com/new- cars/camry/index.json#/ publish/compare_engine s/selection=2AR-FE- 25P--180 https://www.toyota- europe.com/new- cars/camry/index.json#/ publish/compare_engine s/selection=2AR-FE- 25P--180 Source: Based on Singapore Corolla Brochure for CO2 (2012 model) and Australia Corolla Brochure; and Australia Prius Brochure 3.5 HV and conventional gas engine performance 3. HV Production in Malaysia 13

14. 200920102011201220132014201520162017 Gov’t incentive EV / HV Total Sales (‘000) 0.3 8.415.415.05.1 5.0 (est.) 4.1 Extend EV / HV incentive CBU/CKD Excise Duty : 50% Import Duty : 0% CBU/CKD Excise Duty : 0% Import Duty : 0% HV CKD Only Excise Duty: 0% Import Duty: 0% EV CKD only Excise Duty: 0% Import Duty: 0% 4. Challenges for Malaysian Automotive Industry 14

15. CountryCurrentFuture Fuel availability Exhaust Emission Implementation Fuel availability Exhaust Emission Implementation PetrolDieselPetrolDieselPetrolDieselPetrolDiesel MalaysiaEuro 2 Euro1 Euro 4 (Oct 2018) Euro 5 (Sep 2020) Euro 4 (Oct 2018) Euro 4 (Sep 2020) Thailand Euro 4 Euro 5 Under Planning Euro 5/Euro 6 Under Planning IndonesiaEuro2 Euro 4 (Under Planning) Euro 4 PhilippinesEuro2 Euro 4 (January 2016) Euro 4 (January 2016) Euro 4 (January 2016) Euro 4 (January 2016) VietnamEuro2 Euro 4 (January 2016) Euro 4 (January 2016) Euro 4 (January 2017) Euro 4 (January 2017) 4.2 Level up emission control 4. Challenges for Malaysian Automotive Industry 15

16. 16 On the possibility of introducing the “Cash for Clunkers” rebate system, Aminar said that Perodua is still negotiating with the government on the matter. “We were approached by the government last year and the discussion is ongoing. There are issues that need to be addressed first such as who will bear the cost, the age limit of vehicles and the methods of scrapping,” he said. 4.3 Implement scrap incentive 4. Challenges for Malaysian Automotive Industry 16

17. 4.4 Control black smoke by big bus and truck 4. Challenges for Malaysian Automotive Industry 17

18. These challenges in Malaysia are common with the other ASEAN countries ASEAN countries are to commonise regulations in emission, safety etc, and hopefully for eco-car incentives Japanese automakers and parts manufacturers will easily introduce environment-friendly technology and products 5. Challenges faced by ASEAN 18

19. Thank you very much for your kind attention ! 19