Automotive : A long term perspective Dr. Johan Van Zyl President & CEO Toyota Motor Europe President & CEO, Toyota South Africa Motors CEO, Europe and Africa Regions Managing Officer, Toyota Motor Corporation December 10th, 2015 TOYOTA MOTOR EUROPE Today TOYOTA MOTOR EUROPE Smart efficiency dominates the top trends over the last years 2012 2013 Smart Efficiency/ E-Mobility 2014 Smart Efficiency/ E-Mobility Connected Mobility 1 Connected Mobility Smart Efficiency/ E-Mobility Design 2 2015 Smart Efficiency/ E-Mobility 1 Design Design Design Connected Mobility Connected Mobility Budget Cars Budget Cars Quality Quality Safety Quality Safety Safety Quality Safety Budget Cars Budget Cars Shared Mobility Shared Mobility Shared Mobility Shared Mobility 0% 10% 20% 30% 0% 10% 20% 30% Source: Prime Research: Most important trends in the automotive industry TOYOTA MOTOR EUROPE 0% 10% 20% 30% 0% 1 10% 20% 30% Prius concept @ 1995 Tokyo Motorshow TOYOTA MOTOR EUROPE Hybrid technology evolution Fuel efficiency l/100 km 5.1 4.3 First-generation Prius Second-generation Prius (3) 3.9 HV system cost Current Prius New-generation Prius Hybrid Vehicles technology significantly evolved in fuel efficiency with reduced cost TOYOTA MOTOR EUROPE Hybrid global sales 8 million Cumulative 8 1.6 Million Per year Million 6 1.2 Sales (per year) 5M Sales (cumulative) 4 0.8 3M 2 0 0.4 1M 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 0 January to July More than 8 million HVs in world wide cumulative sales in 2015 TOYOTA MOTOR EUROPE 1 millionth Hybrid in Europe TOYOTA MOTOR EUROPE Hybrid: Impact on CO2 8 million 8 1.6 6 1.2 Cumulative Per year Million 5M Sales (per year) 0.8 4 Sales (cumulative) 0 3M 0.4 1M 2 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 20 Cumulative Million 0 2015 January to July 0 4 CO2 reduction amount (per year) 40 8 CO2 reduction amount (cumulative) Million Te 60 Million Te/year 58 million t 12 58 million tonnes of cumulative CO2 reduction compared to same class gasoline vehicles TOYOTA MOTOR EUROPE Hybrid: Mid term target Million 15 2020 TARGET Cumulative 15 million HVs 8 1 0 1997 2000 2005 2010 2015 2020 2050 HV target cumulative 15 millions in 2020, to lead next generation vehicles TOYOTA MOTOR EUROPE Developing Hydrogen FCV for 20 years FCEV Fuel H2 Stored in adsorbing alloy 1996 1999 FCHV-4 Fuel FCHV FCV-R Fuel Hydrogen stored in high-pressure tanks Toyota-made tanks, 1st FCV homologated Mirai precursor 2001 2002 2005 2009 2011 2015 FCHV-3 Fuel FCHV-5 Fuel FCHV-adv Fuel Mirai Hydrogen (adsorbing alloy) Hydrogen generated on-board by reforming on gasoline New stack, stainless steel cells Revolutionary Titanium stack, 3.1 kW/L world record TOYOTA MOTOR EUROPE H2 helps addressing some key problems CLIMATE CHANGE TOYOTA MOTOR EUROPE AIR QUALITY ENERGY SECURITY CARRIER (FUEL) VEHICLE • Oil • Gas • Coal • Gasoline • Diesel • Gas ICE Vehicle HV Nuclear Conventional PRIMARY ENERGY PHV Bio Solar Hydro Wind Electricity EV Hydrogen FCV Geothermal WHY HYDROGEN? TOYOTA MOTOR EUROPE Electric RENEWABLE FOSSIL FUELS Hydrogen: a broad range of sources Sales: Mirai sales plan @ 2020 and after GLOBAL: More than 30,000/year around 2020 and after TOYOTA MOTOR EUROPE About 5,680 FCV related Toyota patent ITEM FC stack High-pressure hydrogen tanks FC system control Hydrogen station NUMBER OF PATENTS TO BE FREE FREE USE PERIOD Approx. 1,970 Approx. 290 Until the end of 2020 Approx. 3,350 Approx. 70 No expiration Announcement at CES on January 6 by TMS SVP Bob Carter Toyota share all patents for free to accelerate the spread of FCV TOYOTA MOTOR EUROPE Looking forward TOYOTA MOTOR EUROPE Annual greenhouse gas emissions Baseline scenario (+3.7~4.8℃) (RPC8.5) 1,000 Tg CO2 140 Eq./year 120 100 80 60 Below 2℃ scenario (RPC2.6) 40 20 0 20 2000 2020 2040 2060 Full-scale initiatives to reduce CO2 emissions 2080 2100 Zero or less Regarding GHG emissions, there is no time to lose Source: From the IPCC Working Group III 5th Assessment Report (2014) TOYOTA MOTOR EUROPE New Vehicle Zero CO2 Emissions Challenge Challenge of Minimizing and Optimizing Water Usage Challenge of Establishing a Recycling-based Society and Systems Life Cycle Zero CO2 Emissions Challenge Plant Zero CO2 Emissions Challenge Challenge of Establishing a Future Society in Harmony with Nature TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE CO2 reduction initiatives Energy saving Reduced use of fossil fuels Energy diversity Renewable energy CO2 - free hydrogen TOYOTA MOTOR EUROPE ENGINE HV PHV EV FCV CO2 reduction Hybrid is central Sustainable Mobility Energy diversity CO2 reduction Air quality HYBRID TECHNOLOGY Gasoline, diesel TOYOTA MOTOR EUROPE Gaseous fuels Biofuels Synthetic fuels Electricity Hydrogen Sustainable mobility roadmap FCV HV/PHV Vehicle size Route bus Passenger car EV Delivery vehicle Full-size truck HV Short-distance commuter vehicle FCV (BUS) Home delivery truck EV FCV Personal mobility PHV Travel distance EV: Short-distance TOYOTA MOTOR EUROPE HV & PHV: Wide- use FCV: Medium-to-long distance A smart energy grid with H2 Smart grid concept extended to smart energy grid (Power + HyGrid) Renewable power is highly intermittent (wind, solar…) H2 is an effective storage mean for renewable electricity TOYOTA MOTOR EUROPE Long term trends by engine types Sales volume HV Conventional PHV PHV FCV FCV 2010 2020 Accelerate next generation vehicle development toward 90% CO2 reduction TOYOTA MOTOR EUROPE EV EV 2050 TOYOTA MOTOR EUROPE Life cycle Zero CO2 Disposal/recycling Maintenance Specific parts for next generation vehicles increase CO2 Driving Fuel production Parts/vehicle production Material production Gasoline vehicles HV MIRAI New generation Vehicles Zero In the future Next generation vehicle approaches zero CO2 during driving however, steps back in material, parts/vehicle production TOYOTA MOTOR EUROPE Life cycle Zero CO2 CURRENT LIFE CYCLE CO2 2050 LIFE CYCLE CO2 Maintenance Parts/ Vehicle production Material production FUTURE LIFE CYCLE CO2 TO BE ZERO Disposal Parts/ Vehicle production Driving/ Fuel production Material production Driving/ Fuel production Continuous challenge toward the future Zero life cycle CO2 TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Focus on 2 pillars Reduced by low CO2-emitting production technologies and daily Kaizen activities CO2 emissions under BAU Plant CO2 emissions ➡ Aiming for zero in the long run 2001 TOYOTA MOTOR EUROPE Reduced by using renewable energy and hydrogen 2030 2050 Initiatives for reduction by low CO2 production technologies and daily Kaizen activities Index 100 Reduction of CO2 emissions per vehicle at a new plant 50 Approx. 1/3 0 2001 Present 2015 2020 2030 Aiming for reduction to approx. 1/2 by 2020, and to approx. 1/3 by 2030 TOYOTA MOTOR EUROPE Global water resource risk 9.1 billion people 1.5x 40% The world’s population is forecast to be approx. 9.1 billion by 2050 The world demand for water is forecast to increase by 55% by 2050 40% of the world's population will be water-stressed, or facing water shortages The risk of water resource shortage is increasing globally TOYOTA MOTOR EUROPE TOYOTA MOTOR EUROPE Specific initiatives @ Toyota Motor Manufacturing France REDUCE WATER INTAKE Reduce the amount of industrial water use through rainwater storage EFFICIENT USE (RECYCLING) Improve water recycling efficiency with filtration equipment DRAINAGE RECYCLING Reuse water by recycling drainage Recycle Drainage Reuse Filtration equipment Reduce water consumption in all processes and introduce recycling technology TOYOTA MOTOR EUROPE Use of water at plants TOYOTA MOTOR EUROPE Recycling initiatives a. Promotion of iron, resin and aluminum recycle b. Use of bio resin in vehicles c. From disposal batteries, to stationary secondary batteries d. Cutting-edge recycling technology for rare metals TOYOTA MOTOR EUROPE M a Toyota GreenWave Toyota Today For Tomorrow Education For Sustainable Development TOYOTA MOTOR EUROPE Importance of Cooperation of all stakeholders Governments Energy suppliers Carbon free Mobility & Society Customers Industry Zero CO2 Challenge in cooperation with stakeholders TOYOTA MOTOR EUROPE Thank you TOYOTA MOTOR EUROPE