Toyota Motor Corporation (Toyota) received a correction order from Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which urges to make drastic reforms to ensure appropriate certification operations. Company have also received suggestions and guidance on additional matters. It is with deep regret that the company were not able to properly conduct the company's certification operations, and Company apologize to stakeholders for any concern or inconvenience this may have caused them.

Through a series of suggestions and internal investigations, the company believe that these incidents were caused by both on-site and management factors. 1. On-site factors - Unclear internal operational rules for preparing documents required for certification application - Insufficient clarification and management of resources required for the certification process - Insufficient awareness of the importance of certification work 2. Managerial factors Lack of understanding and involvement of management/executives in the overall certification process. Based on the above understanding, Company will review the structure and system to implement correct certification operations, clarify the responsibility and authority of the certification process once again, and continue to improve the company's infrastructure, including accurate data management.

Company will promptly compile these measures to prevent recurrence and report them to the MLIT. Through the TPS Jishuken (Joint Kaizen Activities) for certification work, Company will also strive to create a medium- to long-term structure and culture. In addition to the cases reported on June 3, the MLIT indicated eight new cases involving seven vehicles through their on-site investigations, which were not certified in accordance with the prescribed procedures.

Company will continue to take appropriate measures for all cases under the guidance of the MLIT. The newly discovered cases have been reported to the relevant authorities, including the MLIT, and they are in the process of confirming compliance with the standards. Customers do not need to stop using the vehicles immediately.

The Corolla Fielder, Corolla Axio, and Yaris Cross for the domestic market, which have been suspended since June 3, are scheduled to resume production from the beginning of September after the MLIT confirms that they are in compliance with the standards. Furthermore, shipments of Noah/Voxy, which have been suspended since July 29 due to additional incidents, will resume as soon as they are ready.