Toyota Motor Corporation (7203) Earnings Call Transcript & Summary

Good morning, everyone. Now when it comes to luxury mobility, Lexus was born a disruptor. And over the past 30 years, we've broken a lot of rules. We showed that the automotive luxury could be decoupled from legacy and convention. And we showed that highly personalized service could be a game changer for the industry. And we showed that electrification could enhance the premium experience, truly efficient, yet exciting every day. Quite simply, Lexus has endeavored to push the boundaries at every available opportunity and in every era. And this philosophy of pushing boundaries has never been more relevant. People's lives the world over are changing. In all aspects of life, people are expecting more personal choice and flexibility than ever before. Empowered to embrace their own unique values, they expect ecological solutions, but they still want the exhilaration of movement. They expect their digital lives to be seamlessly integrated, and they expect diverse solutions to match their ever-changing lifestyles. Now in 2021, we made a commitment to become 100% electric by 2035. We believe that BEVs, through their unique attributes, will allow us to expand the scope of possibilities to elevate the customer experience. This is a future where everything that Lexus represents will come together in synergy. Ladies and gentlemen, a car that forms the catalyst for a monumental shift, pushing the boundaries of the electrified experience. [Presentation]

Okay. So how do you like it? Glad to see somebody did. The LF-ZC is a commitment to the future that we will bring to the road in 2026. A fusion of digital and physical technology will lead to new and fresh solutions, allowing us to push the boundaries in 3 key areas. Firstly, we want to achieve the most efficient engineering without losing one ounce of emotion, no compromises. In all respects, we're aiming for more from less, more emotional design, more space and flexibility, more driver engagement, all from a smaller, lighter and more aerodynamic structure. Now by radically redefining the packaging and layout, the passenger sit forward and low, the vehicle proportions are dramatically altered, creating not only incredible space efficiency and visibility but also a beautiful sleek silhouette and together with precise driving dynamics. Now Japan is famed for ingenuity and engineering. And the key to achieving these breakthroughs is parts minimalization and reduction across the board, including smaller, more efficient batteries with more power and more range. Secondly, Lexus' future is a seamlessly connected one. The synergy of hardware, with the all-new Arene operating system, acts as a catalyst for new experiences and solutions. For example, the content and services of the digital era are crucial to creating unique choice. And we want everyone, including the driver, to partake in these new experiences, both enjoyably and safely. In a fundamentally new approach, content will be displayed depending on the situation, creating a simpler, more intuitive user interface, one that anticipates your needs. And programmable hardware will open up endless opportunities. The car is literally a moving sensor. It can see. It can touch. It can hear. It can even smell. A sensor that will enable unprecedented personalized driving possibilities, possibilities that will allow application makers to create new breakthrough content, all based on the unique situation and the location of every car and every user. Defining the car as a sensor allows us to create content from motion itself. And thirdly, people are always looking for new ways to enjoy and express themselves. The BEV age has only just begun, and it won't be long before the need for new lifestyle solutions comes to the forefront. Now our next-generation architecture is so flexible that it will allow us to push the boundaries in every segment going forward, whether that means a beautiful sports car or a flagship proposition for the future of mobility, like the LF-ZL, a future where the ownership experience is not limited to a single vehicle, where it learns and anticipates your needs, adapting to provide total personalization of motion. A portfolio of mobility solutions linked to the customer's lifestyle, that's the way to go. And whatever the form, there will be no luxury future without innate sustainability, a future where the better the car is for the planet, the better it is for the customer, whether it's new carbon-neutral materials that contribute to sustainable communities or a system where, one day, mobility will play an active part in societal level, energy and data management. Ladies and gentlemen, Lexus will continue to deliver unexpected products and services that push the boundaries for discerning individuals. And as you've seen today, we will change the paradigm not only for the battery electric car but for what the automotive experience can be. The future of Lexus is electrifying. Thank you very much.