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Toyota Logistics ServicesToyota Logistics ServicesFinished Vehicle LogisticsFinished Vehicle Logistics

Automotive News World CongressAutomotive News World CongressJanuary 16, 2007January 16, 2007

The Quickest Route The Quickest Route to Our Customersto Our Customers

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U.S. Logistics OperationsU.S. Logistics Operations

1001

TLS VDCVehicle Processing Affiliate

Transport Delivery Center

TMS Headquarters

Rail Ramp

Portland

Fremont

Long Beach

NewarkPrinceton

Georgetown

TMMC/TMMC-W

Houston (GST)

Jacksonville (SET)

Commerce

Orillia

Phoenix

Albuquerque

Midlothian

Salt Lake

DenverKansas City

St. Paul

W. Chicago

W. Memphis

Doremus

Brookfield

Mira Loma

Westlake (SET)

LouisvilleAnnapolis Junction

San Diego

San Antonio

Benicia

Logistics ParkLafayette

Rail routes: 95

Truck routes: Approx 3000

Ports: 5

Marshaling yards: 5

Dealers: 954 Toyota, 225 Lexus, 384 PD

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Toyota Motor Sales USA Wholesale

2.0

2.2

2.4

2.6

2.8

3.0

2005 2006 2007 2008

+35%

Toyota Lexus Scion Sales Toyota Lexus Scion Sales GrowthGrowth

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14%14%

11%11%

44%44%

CY06CY06

MarineMarine

TruckTruck

RailRail

Delivery Volumes

On-Time Performance

Quality Performance

Performance IndicatorsPerformance Indicators

90%90%

78%78%

98%98%

CY06CY06

0.14%0.14%

0.24%0.24%

0.04%0.04%

CY06CY06

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EnvironmentEnvironment

0 Regulatory Violations0 Regulatory ViolationsAggressive Recycling and Landfill goalsAggressive Recycling and Landfill goals(90% recycle rate)(90% recycle rate)

All VDCs 14001 CertifiedAll VDCs 14001 Certified

Health & SafetyHealth & Safety

All VDCs 18001 Certified All VDCs 18001 Certified

Quality, Environment, SafetyQuality, Environment, Safety

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Facility ReadinessFacility ReadinessTLS San AntonioTLS San Antonio

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Facility ReadinessSubaru-Lafayette

8

Facility ReadinessTMMC WoodstockTMMC Woodstock

9

TLS RoleTLS Role

LINELINE--OFFOFF

ARRIVALARRIVAL

RAILRAIL

TRUCKTRUCK

DEALERDEALER

Bridge Between Manufacturing, Logistics Partners, and DealersBridge Between Manufacturing, Bridge Between Manufacturing, Logistics Partners, and DealersLogistics Partners, and Dealers

TLSTLS

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ManufacturingManufacturing

• Plant Site Coordination• In-line vs Post Production• Soft-Tie Equipment

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CustomersCustomers

• Accessories

• Quality

• Transit Time

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•• Block LoadingBlock Loading

Logistics PartnersLogistics Partners

• New EquipmentNew Equipment

• Delivery HoursDelivery Hours

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•• Trucking Industry WeaknessTrucking Industry Weakness-- Chapter 11 Bankruptcy-- Aging equipment-- Driver shortages

Carrier Readiness – Truck

•• TLS CountermeasuresTLS Countermeasures-- Fair rates / reinvestment

-- New equipment financing

-- Network rationalization

-- In-house trucking

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• Rail Equipment ShortagesRail Equipment Shortages

•• Rail CongestionRail Congestion

• TLS CountermeasuresTLS Countermeasures

-- Network rationalization where options allow

-- Vehicle velocity off ramps

-- Heijunka (even flow) loading

Carrier Readiness – Rail

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