05 Management Message. 09 Review of Operations. 02 About Daihatsu. Consolidated Financial Information

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2 1 Contents 2 About Daihatsu 5 Management Message Comprising three divisions domestic business, overseas business and consigned production and OEM business Daihatsu Motor Co., Ltd. is a member of the Toyota Group. It has had the No.1 share of sales in Japan of mini vehicles, its principal product, for seven consecutive years. Daihatsu is committed to creation of products, technology and a brand that live up to its reputation for creative originality. At the same time, we aim to speed up our development, and to partner with the Toyota Group in strategic businesses. Corporate Governance/ 14 Corporate Social Responsibility We are strengthening corporate governance, to ensure openness and integrity in our management. Note: Year ended March 31: from April 1 to March 31 Special Feature 6 Progress and Development of e:s Technology e:s Technology was developed to achieve the optimal combination of fuel efficiency and affordable pricing. After launching it in a string of flagship models in Japan, we are taking it overseas. Consolidated Financial Information 44 Corporate Data During the year under review, Daihatsu booked record high net sales of 1,764.9 billion (up 8% year on year) and operating income of 133. billion (up 15%). Basic data about Daihatsu, including corporate profile, list of executive officers, stock information, our network, and Group companies Review of Operations Sales hit record high levels in unit terms in both domestic and overseas (Indonesia) markets. In the consigned production and OEM business, we posted strong sales to Toyota Motor Corporation and Fuji Heavy Industries Ltd. Disclaimer This annual report contains forward-looking statements regarding future plans, strategies, and operating performance forecasts and estimates for Daihatsu and its subsidiaries and affiliated companies. Statements that are not historical facts are expectations derived from management s assumptions and opinions based on its judgment of information available as of the date of this report. Such statements contain risks and uncertainties that include but are not limited to economic fluctuations, severe competition in automobile markets, market demand, exchange rates, taxation systems and changes in various other systems. Consequently, the reader should understand that actual performance may differ from forecast results.

3 About Daihatsu 2 Move Daihatsu Motor Co., Ltd. was originally established in 197 through a consortium of industry and academia to develop a domestically manufactured internal combustion engine. Over time, its business domains expanded to include overseas businesses and the consigned production and OEM business. Today, Daihatsu is a manufacturer of vehicles with superb environmental and economic performance. Our slogan Innovation for Tomorrow expresses our determination to take the lead globally in innovation. We are committed to production of compact cars with appeal the world over. 3% Consigned Production and OEM As a member of the Toyota Group, we are engaged in consigned production, joint development and OEM supply (supplying products under a customer company s brand). Sales 1,764.9 billion Domestic Business This business chiefly handles development, manufacture and marketing of compact cars, among which mini vehicles are our mainstay product. Definition of Mini Vehicle Up to 66cc, under 3,4mm 5% The definition of mini vehicle is set forth in the Road Transport Vehicle Act enforcement guidelines of the Japanese Ministry of Land, Infrastructure, Transport and Tourism. At present, maximum specifications are a length or 3,4mm, width of 1,48mm, height of 2,mm, and engine displacement of 66cc or less. 2% Overseas Business Major overseas bases for localized production and marketing include Indonesia and Malaysia. We have focused resources on these two countries as part of our policy of selection and concentration. Xenia Features of Mini Vehicles Parking Made Easy A mini vehicle occupies a footprint of 5.3m 2, or only 65% of the space required by a 2,cc passenger car. A mini vehicle needs only around 5m 2 of parking area, and parallel parking is easy. Data from Japan Mini Vehicles Association Short Turning Radius On average, mini vehicles have a minimum turning radius of only 4.4m. Sharp turning capabilities make mini vehicles easier to operate on narrow roads, country lanes and in mountainous regions. Data from Japan Mini Vehicles Association Small but Safe Daihatsu s Total Advanced Function (TAF) body, designed to augment safety in the event of a collision, and Safety-Oriented Friendly Interior (SOFI) have enabled us to easily meet Japanese and European standards for collision safety. Our vehicles are highly rated for meeting overall collision safety and pedestrian safety according to standards that have been set by Japanese government-affiliated organizations.

4 Strengths of Daihatsu 3 Mini Vehicle Sales Share in Japan Seven Consecutive Years (Years ended March 31, ) No.1 Production Share in the Indonesian Market Year ended March 31, 213 No.1 *Daihatsu research Sales Share in Malaysia Seven Consecutive Years (26 212*) No % 41.4% 3.1% In recent years, mini vehicles have come to account for more than 3% of the Japanese automotive market. Their excellent fuel efficiency and economy, and our rich array of mini vehicle models, have given us top share of the Japanese mini vehicle market for seven consecutive years. The Move came tops in sales rankings in April 213 among all mini vehicle models marketed in Japan. Including consigned production, Daihatsu s Indonesian plants produced 457, units, making us the market leader in output terms. In March 213, we became Indonesia s first automaker to achieve total cumulative production of 3 million units. We are accelerating measures to localize production, developing models in response to new market trends, and building auto plants optimized for the local market. Daihatsu produces and sells National Cars via a joint venture, Perodua Manufacturing Sdn. Bhd. This business is growing steadily, and has achieved top marketing share in Malaysia for seven consecutive years. Currently, we are aggressively introducing Japanese-style manufacturing methods and expertise, with the aim of strengthening Perodua s quality, procurement capability and cost competitiveness. *Perodua financial year: January December

5 The Daihatsu Brand: Taking the Lead Globally in Innovation 4 Mini Vehicles Mira series Atrai series Overseas Indonesia Production Models Mira e:s Mira Mira Cocoa Atrai Wagon Xenia Gran Max Move series Terios Luxio Tanto series Move Move Custom Move Conte Move Conte Custom Malaysia Tanto Tanto Custom Tanto Exe Tanto Exe Custom Myvi Alza Mini Commercial Vehicles Viva Mira VAN Hijet Truck Hijet Cargo Passenger Cars Welfare Vehicles Boon Be-go Mebius Altis Move Front Seat Lift Atrai Wagon Rear Seat Lift

6 Management Message 5 Adding New Value in the Creation of Fuel-efficient, Affordable Cars Koichi Ina Chairman Masanori Mitsui President Year in Review and Business Results In the year in review (ended March 31, 213), the automotive market in Japan was boosted by the government s eco-car subsidies and new model launches. Overall, sector performance was better than in the previous year. Following minor but significant changes made to the Move, we further pushed out the boundaries of fuel efficiency and affordable pricing, the core advantages of mini vehicles and areas in which we have built up expertise while developing the Mira e:s. In addition to achieving fuel efficiency of 29.km/L, we were also able to bring the entry price of the Move down to 1.7 million, and strengthened the product through innovations such as introduction of collision avoidance support technology, a first for a mini vehicle. This fueled record-high unit sales for our mini vehicles. In Indonesia, Daihatsu s main overseas market, the automotive sector continues to expand on the back of economic growth. Our consolidated subsidiary in Indonesia, PT Astra Daihatsu Motor (ADM), enjoyed strong sales driven by the Xenia compact passenger car. In Malaysia, our consolidated subsidiary Perodua Manufacturing Sdn. Bhd. (Perodua), continued to lead the market in unit sales for the seventh straight year, supported by robust market conditions. In the consigned production and OEM business as well, we increased unit sales to Toyota Motor Corporation (Toyota) and Fuji Heavy Industries Ltd. (Fuji Heavy), achieving record highs overall. Sales were up year on year in both the Japanese and overseas markets. As a result of the foregoing, the Daihatsu Group booked net sales of 1,764.9 billion (up 8% year on year) and operating income of 133. billion (up 15%), both record-high figures. Outlook and Strategy Faced with difficult market conditions in both Japan and overseas, the key to survival for the Daihatsu Group will remain our commitment to reducing costs through ongoing reengineering measures and to strengthening our product lineup by adopting the e:s Technology for the Mira e:s. To raise the Daihatsu brand profile, we will maintain a steady focus on research and development based on the e:s Technology, and will tailor new product launches to customer needs in specific regions. In addition to improving core performance in our cars, we will propose solutions that guarantee an enjoyable driving experience at a reasonable cost and ensure pleasure in car ownership. We will develop new models with new added value by anticipating potential customer needs. In Indonesia, we will apply new technologies for cutting fuel costs and lowering prices, based on our years of experience in mini-vehicle manufacturing in Japan. At the same time, we will accelerate localization in areas such as development, production and procurement. In Malaysia, we plan to bring a new plant on-stream in the middle of the year ending March 31, 215, to strengthen our competitiveness in terms of product quality and affordability. We will continue our close alliance with the Toyota Group in business strategy at locations all over the world. Looking ahead, we expect even tougher competition in all of our markets. We are determined to respond rapidly to challenges by aggressively investing in and strengthening our operational infrastructure. We would like to thank all of our stakeholders and ask for their continued support and guidance in the future. August 213

7 Special Feature Progress and Development of e:s Technology 6 Optimized Fuel Efficiency and Affordable Pricing Progress and Development of e:s Technology There are numerous ways to lower fuel consumption, hybrid cars being a favored technology in Japan. Daihatsu s independently developed e:s Technology harnesses the essential qualities of the mini vehicle. Its biggest strength is that low fuel consumption is achieved at low cost using the e:s Technology. Adopted in 211 in the Mira e:s mini vehicle, it has been used in many types of vehicle in Japan, and is now moving overseas, while continuing to evolve. 211 The Mira e:s, the first model using e:s Technology ~ Development of e:s Technology Multilayered Fuel Efficiency in a Gasoline-powered Car 3.km/L *1 Evolution of e:s Technology Adoption in the Move, Daihatsu s Mainstay Brand in Japan Further Evolution of e:s Technology Lowest-ever Fuel Consumption for a Gasoline-powered Car 33.4km/L *2 Launch Overseas e:s Technology to Be Applied to Vehicles in Indonesia e:s Technology Enables Low Fuel Consumption at an Affordable Price Improvements Made to the Move in 212 Improvements Made to the Mira e:s in 213 Future Improvements Power Train Evolution Vehicle Evolution Energy Management e:s Technology enables low fuel consumption at an affordable price. The first model incorporating the technology, the Mira e:s, was launched in 211 in Japan, to a rapturous reception. Proprietary technology enabled fuel consumption of 3.km/L, at a price-tag of less than 8,. A wide range of ideas were incorporated to improve fuel efficiency and hold prices down, with each vehicle part undergoing modification, including the power train and the car body. Evolution of energy management > For thermal management, use of a Continuously Variable Transmission (CVT) thermo-controller for first time in a mini vehicle* 3, and improvement of combustion efficiency through combustion control using separate cylinders Evolution by improvements made to the power train and the car body > Fuel economy reaches 29.km/L, the top of its class, up from 27.km/L.* 4 Other Points First mini vehicle to be equipped with the Smart Assist collision avoidance support system* 3 Superior suspension enables stable, quiet driving experience Entry price: 1.7 million Modifications made to the evolution of the power train, car body and energy management systems > As a result of improved combustion efficiency, reduced running resistance and energy efficiency, fuel economy reaches 33.4km/L, a record for a gasoline-powered car* 2 Other Points Entry price reduced to below 8, Improve added value as vehicle characteristics allow, and make e:s Technology standard in mini vehicles *1 JC8 mode 2WD *2 JC8 mode 2WD As of July 213/Daihatsu research *3 As of December 212/Daihatsu research *4 As of December 21

8 Special Feature Progress and Development of e:s Technology ~ Steady Progress in Improving e:s Technology In 212, Daihatsu s vehicle development entered a new stage, with its overhaul of its mainstay mini vehicle, the Move. The first breakthrough was the achievement of still lower fuel consumption and lower price through the development of e:s Technology. We have now achieved fuel consumption of 29.km/L even in cars of total length of at least 1,6mm. Furthermore, we have brought prices down lower than for conventional models. The second breakthrough was advances in core basics such as driving stability and quietness. We have made improvements in every area that helps increase a driver s sense of security and created levels of driving comfort comparable with higher category vehicles. The third breakthrough is our adoption of advanced systems in a mini vehicle for the first time. By tailoring scenario specifications to mini vehicles, we have incorporated collision avoidance support system technology, considered an expensive technology, in the mini vehicle at an affordable price. In April 213, the new Move topped overall sales rankings in Japan. It also came first in mini vehicle rankings in April to June, highlighting the popularity of models featuring our improved e:s Technology. Models Featuring e:s Technology JC8 Mode 29.km/L [Naturally-aspirated Engine, 2WD] The First Installation of Smart Assist Collision Avoidance Support System in a Mini Vehicle* Entry Price: 1.7 Million * As of December 212/Daihatsu research The Move, featuring e:s Technology Mira Cocoa With its idiosyncratic style, the Mira Cocoa is a big hit with female customers. Move Conte The Move Conte combines a boxy style with a spacious interior with high-quality fittings. Tanto The Tanto is a family car with a spacious interior and convenient wide-opening doors.

9 Special Feature Progress and Development of e:s Technology ~ Taking e:s Technology Overseas Indonesia is an important base of operations for Daihatsu. Supported by steady economic growth, demand has grown for fuel-efficient, low-cost vehicles. With the Indonesian government also planning to support motorization through its policies, the automotive market in the country is set for major change. To catch this wave, Daihatsu plans to launch the Ayla, a compact passenger car that offers high fuel efficiency at an affordable price thanks to a localized version of the e:s Technology. With a new production plant coming on-stream in October 212, and also through planned OEM production of the Toyota Agya leveraging the strengths of our component suppliers, we aim to be at the forefront of this new trend. The new plant has a research and development center incorporating design and testing annexes. Looking ahead, we plan to further strengthen production and development fundamentals. The Daihatsu Ayla, the First Daihatsu Model Using e:s Technology in an Overseas Market [Indonesia] Based on the expertise that we have built up in low-price, fuelefficient compact vehicles through our development of the Mira e:s, the Ayla was created in a joint development project with Astra Daihatsu Motor to service all needs of the local market. The Ayla is an Indonesian-made car tailored to the Indonesian market, with fuel consumption and a sales price that increase customer satisfaction. Following Its Successful Adoption in the Ayla, We Are Expanding Application of the e:s Technology to Other Models. Karawang Assembly Plant in Indonesia R&D Center

10 Review of Operations Years ended March 31 9 Production Data Year ended March 31, 213 1,528,937 units (up 6.5% year on year) Global Production Units Domestic Production Units Japan Domestic Japan consigned Domestic production consigned and production OEM vehicles and OEM vehicles Mini vehiclesmini Registered vehicles cars Registered cars Japan Domestic Japan consigned Domestic production consigned and production OEM vehicles and OEM vehicles Mini vehiclesmini Registered vehicles cars Registered cars Overseas Overseas consigned Overseas production consigned and production OEM vehicles and OEM vehicles Consigned production Consigned and production OEM vehicles and OEM vehicles Overseas Overseas consigned Overseas production consigned and production OEM vehicles and OEM vehicles Consigned production Consigned and production OEM vehicles and OEM vehicles (Thousands of (Thousands units) of units) (Thousands of (Thousands units) of units) (Thousands 1,6 of (Thousands units) 1,6 of units) (Thousands 1,2 of (Thousands units) of units) 1,529 1,529 1,2 1,6 1,6 1,529 1,529 1,2 1, ,2 1,2 1,2 1, (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31) Sales Data Global Sales Units Domestic Sales Units and Market Share of Mini Vehicles Year ended March 31, 213 1,43,741 units (up 7.3% year on year) Japan Japan Overseas Japan Overseas Japan Overseas Overseas (Thousands of (Thousands units) of units) (Thousands 1,2 of (Thousands units) 1,2 of units) 1,2 1, ,44 1, ,44 1,44 Mini vehicles Mini (left) vehicles Registered (left) cars Registered (left) cars (left) Mini vehicles Mini (left) vehicles Registered (left) cars Registered (left) cars (left) Share of mini Share vehicle of market mini vehicle (right) market (right) Share of mini Share vehicle of market mini vehicle (right) market (right) (Thousands of (Thousands units) of units) (Thousands 8 of (Thousands units) 8 of units) (%) (%) (%) (%) (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31) (Years ended March (Years 31) ended March 31)

11 Review of Operations 1 Domestic Business No.1 Market Share for Mini Vehicles in Japan for Seventh Consecutive Year Advanced Collision Avoidance Support System Mounted in the Move, a First in Mini Vehicles* Able to detect cars on the road ahead and obstacles (walls and buildings) with a laser radar installed within the front grille, this system helps drivers avoid low-speed collisions after failing to spot dangers, and stops sudden speed surges due to accidental engagement of the accelerator. *As of December 212, Daihatsu research Move Sales Units and Market Share for Mini Vehicles (Year ended March 31, 213) Brand Sales (units) Share (%) Daihatsu 652, Suzuki 586, Honda 362, Nissan 151,6 7.7 Mitsubishi 72, Subaru 53, Mazda 51, Toyota 42, Others 58. Total 1,972,6 1. Data from Japan Mini Vehicle Association Market Environment The government s eco-car subsidies became effective in the first half of the year in review, buoying the mini-vehicle market for the secondhighest record sales Intensified competition due to new-model launches by other automakers Highlights Production (units; consigned production and OEM vehicles excluded) 661,441 (up 5.4% year on year) Sales (units; registered cars included) 655,272 (up 8.2% year on year) Review of the Year ended March 31, 213, and Upcoming Measures In the first half, along with the overall market, sales of Daihatsu mini vehicles increased year on year in response to the government s eco-car subsidy program. In the second half, the market fell back somewhat due to the termination of the program, but Daihatsu posted record sales of 653, units on the back of the strengthened competitiveness of minor but significant changes to the Move. In the year ending March 31, 214, we expect the market to be affected by the incremental reduction in Japan s automobile purchase tax and consumption tax increases, making the overall picture for the minivehicle market hard to forecast. Against this backdrop, Daihatsu plans to beef up its product range, by strengthening several flagship models and expanding installation of the Smart Assist collision avoidance support system from the Move to other cars. At the same time, we continued revamping dealerships to incorporate new Daihatsu New Outlet Standard facilities and the innovative Cafe Project customer hospitality concept, designed to appeal to women customers, who account for 7% of buyers of mini vehicles. This nationwide rollout is now complete. Looking ahead, we plan to add approximately 6 new dealerships, mainly in urban areas. And for customers who to date have had no contact with mini vehicles, we are showcasing the Smart Assist system in model vehicles at dealerships, shopping malls and public spaces. With new-model launches now commonplace, we expect the minivehicle market to become considerably more competitive looking ahead. As leader in market share in Japan, we are determined to strengthen our capabilities in production and marketing, and maintain our position.

12 Review of Operations 11 Sales Units and Market Share in Indonesia Overseas Business Indonesia Continue with Localization of Production, Marketing and All Other Operations to Be Sure of Capturing Growing Demand Indonesian market (Thousands of units) 1,2 9 6 Daihatsu s sales (Indonesia) (Right) Daihatsu s share (Indonesia) (%) 1, % Xenia (Years ended March 31) Daihatsu s Progress in Indonesia 1975 Launch of production on Complete Knock Down basis* * Export model in which the components of a vehicle are exported to an overseas location and then assembled there 1992 Joint venture with Astra International, establishment of the vehicle-manufacturing company PT Astra Daihatsu Motor (at present, Daihatsu holds a 61.75% stake) 27 In line with growing demand, construction of second assembly line, increasing annual production capacity to over 2, units (under two-shift operation; regular working hours) 212 New plant comes on-stream with annual production capacity of over 1, units, increasing overall annual production in Indonesia to over 43, units (under two-shift operation; regular working hours) Market Environment Following the Asian currency crisis, rises in gasoline prices and interest rates, the global financial crisis and other headwinds, the market returned to stability in 29. Major expansion of automotive market on the back of ongoing growth driven by internal demand (early stage of motorization) Highlights Production (units; consigned production and OEM vehicles excluded) 176,338 (up 11.7% year on year) Sales (units) 165,41 (up 14.8% year on year) Review of the Year ended March 31, 213, and Upcoming Measures Buoyed by long-term economic growth, Indonesia has grown into a market of more than 1 million vehicle units a year. However, a marketplace that is over 9% dominated by Japanese automakers models is now being targeted by automakers from Europe, the United States, South Korea and China. For this and other reasons, it is expected to post significant growth, but also to become much more competitive. To meet that demand, Daihatsu brought on-stream its newest plant in October 212. Currently, Astra Daihatsu Motor is preparing to launch the Ayla, a model that dovetails with the Indonesian government s Low Cost Green Car policy and is intended to gain an advantage on rival automakers product launches. The Ayla, based on the know-how Daihatsu has accumulated in compact car manufacture through the Mira e:s project in Japan and produced under a joint development arrangement with Astra Daihatsu Motor, is an Indonesian-made car tailored to the Indonesian market, with a low price tag and high fuel efficiency. Daihatsu is committed to localization of all aspects of the Group s operations. Looking ahead, we will continue to launch attractive new products with low price tags and high fuel efficiency, further deepening localization in Indonesia and stepping up measures to streamline procurement and lower costs, as we build up a leading position in this market. On a plot of land adjacent to the newly launched plant, we also developed a research and development center with a test course, a first for any automaker in Indonesia. Over the longer term, we plan to strengthen our Indonesian businesses through localization and help foster industrial growth in this country.

13 Review of Operations 12 Overseas Business Malaysia Improving Quality and Strengthening Management Fundamentals to Increase International Competitiveness Myvi New Car Sales Rankings Year ended March 31, 213 (January 212 December 212) Brand Sales (units) Share (%) 1 Perodua 189, % 2 A 141, % 3 B 15, % 4 C 36, % 5 D 34,95 5.6% Based on Malaysian Automotive Association data Daihatsu s Progress in Malaysia 1993 Establishment of National Car manufacturer Perodua (with participation of Daihatsu)* Manufacture and marketing of an affordable entry-level car for ordinary people 25 Marketing begins of the Myvi National Car developed jointly by Perodua and Daihatsu 212 Announcement of construction of new plant (single-shift operation, regular working hours) with production capacity of 1, units per year (scheduled to begin operations in mid-214) Market Environment By ASEAN standards, this is a fairly developed automotive market, due to stable economic fundamentals underpinned by export industries with the support of the National Car Concept. What is the National Car? The National Car is the fruit of the National Car Concept, initiated by the government of Malaysia to promote national industrialization based on the automotive industry and to expand mobility options for ordinary people by providing alternatives to public transport. Highlights Production (units) 194,984 (down 1.9% year on year) Review of the Year ended March 31, 213, and Upcoming Measures The Perodua National Car manufacturer, in which the government of Malaysia and Daihatsu have made joint investments, is a well-known brand centered on compact-car development. Today, Perodua has the leading share of the local market of 6, units. Thanks to the launch of models using Japanese best practice and strengthened manufacturing processes, it has contributed to the development of the automotive industry in Malaysia as well as supporting the motorization of its society. As Malaysia is a country earmarked for membership in the TPP expansion now under negotiation, Perodua needs to be even more competitive. While upgrading existing plants, new plants will be coming on-stream in the middle of the year ending March 31, 215, and will enhance competitiveness for the entry into effect of TPP by raising standards across all the benchmarks quality, cost of production and productivity. Additionally, Daihatsu is building up comprehensive competitiveness by encouraging localized development of automatic transmissions, a core component, and establishing joint-venture companies with affiliates and other measures. * Double-holding-company structure comprising a Malaysian government-affiliated investment company and Daihatsu with Japanese trading houses Sales (units) 189,137 (up 5.1% year on year)

14 Review of Operations 13 Consigned Production and OEM Robust Performance in OEM Supplies to Toyota and Fuji Heavy Industries [Structure of Businesses] Consigned Production Production at Daihatsu plants of vehicles and engines designed by customer companies, for their for brands Joint Development OEM Supply Vehicles jointly developed by the customer company and Daihatsu (consigned production is for customer company brands) Production and supply of vehicles developed or manufactured by Daihatsu to be sold under other companies brands Consigned Production and OEM Vehicles/Production (units) (Japan, overseas) Domestic consigned production Overseas consigned production (Thousands of units) Domestic OEM vehicles Overseas OEM vehicles Production in Japan (Years ended March 31) Arrangement Brand Models Consigned Production Toyota Probox/Succeed, Sienta Joint Development/ Consigned Production OEM Supply Toyota Toyota Passo, bb Rush, Pixis Space, Pixis Epoch, Pixis Van/Truck Subaru (Fuji Heavy) Dias Wagon, Pleo, Pleo Plus, Pleo Van, Lucra, Stella, Sambar Van/Truck Highlights Japan Production (units) Overseas Production (units) 219,289 (down 1.4% year on year) 28,85 (up 22.3% year on year) Production Overseas Arrangement Joint Development/ Consigned Production Production Country Brand Production Company Indonesia Toyota ADM Avanza OEM Supply Indonesia Toyota ADM Townace/Liteace (for export to Japan), Rush Consigned Production (Engines) Model Engine Type Displacement Brand Models Equipped KR 1cc gasoline Toyota Vitz, Belta, Passo, iq NR 13cc gasoline Toyota Passo, iq, Corolla, MF Yaris, Ist, Auris, Porte, Spade SZ 13, 15cc gasoline Toyota bb, Rush TR 2, 27cc gasoline Toyota Hiace, Coaster, Land Cruiser Prado KD/KZ 3cc diesel Toyota Land Cruiser Prado, Hiace, Dyna, Toyoace B 37, 41cc diesel Toyota Dyna, Coaster Review of the Year ended March 31, 213, and Upcoming Measures As a supplier of a wide range of vehicles and engines to Toyota and Fuji Heavy, we have increased the number of such units sold in the Japanese and overseas markets to an annual total of some 5,. In recent years, we have launched OEM supplies of mini vehicles in Japan to Fuji Heavy (from 29) and Toyota (from 211). Total consigned and OEM production in Japan is now approximately 22, units per year. In overseas markets, we have increased consigned production of the Toyota Avanza, marketed under a joint development project in Indonesia. Including OEM vehicles we now sell 28, vehicles a year in Indonesia, an increase of 22% year on year. In addition to fine-tuning our production system, in years ahead, we believe we can contribute to the development of the Toyota Group through Group member partnerships, and by leveraging our unique creativity.

15 Corporate Governance/Corporate Social Responsibility 14 Strengthen Corporate Governance to Maintain Fair and Highly Trustworthy Management Daihatsu has established the Daihatsu Group Philosophy and the Daihatsu Group s Basic CSR Principles in order to pursue its mission of making compact cars loved around the world while achieving globalization of the Group. Daihatsu also has distributed Daihatsu Group Action Guidelines. In accordance with our philosophy, principles, and guidelines, we are striving to enhance our corporate governance in a manner that satisfies all stakeholders, including our customers, while maintaining management operations that are fair and highly trustworthy. Daihatsu s Corporate Governance System Daihatsu has adopted the corporate auditor system. We have 11 directors (as of June 27, 213), and the Board of Directors (which meets once a month, in principle) makes decisions on the execution of important operations and supervises the directors in the execution of their duties. We also have the vice president s meeting (which meets once a week, in principle), with the participation of the directors and a full-time corporate auditor, which discusses and reports on management matters of importance. In addition, in order to respond to the globalization of business areas and also to enhance corporate governance and strengthen the management structure, we introduced the executive officer system and the functional business groups system. We are promoting the realization of a clear delineation of responsible parties and an organization that follows through on its missions by strengthening and speeding up the business execution function and having each functional business group complete the process of business execution. We are also striving toward the strategic use of human resources by binding our organization together. Current Status of Internal Control System and Risk Management System Daihatsu s internal control system reflects its adoption of a corporate auditor system as stipulated in the Corporate Law of Japan, which involves the supervision and decision-making on business execution by the Board of Directors as well as auditing by the corporate auditors and the Audit Committee. In addition, Daihatsu carries out auditing through the Internal Auditing Department on a regular basis to examine and evaluate activities and systems according to the Company s management policies from a fair and just position. The Company is also audited by an accounting auditor, and its corporate auditors exchange opinions with them as needed. With the aim of improving the corporate value and assuring the reliability of financial reports and compliance with laws and regulations, we established the Internal Control Committee, chaired by a director whom the president appoints and with chief officers of groups of the Company as committee members. Our Internal Control Committee adjusts internal control systems based on the Financial Instruments and Exchange Act and the U.S. Sarbanes-Oxley Act and seeks to enhance the companywide internal control system by including personal and other classified information. For the Company s subsidiaries and other Group companies, we ensure the enforcement of internal Internal Control Structure Audit Committee Report Instruct Monitor Report Each Division of the Company Audit Division Cooperate Board of Directors Hearing Policy Suggest Corporate Auditors Audit control activities through the affiliated-company management system. For operations that require control, risk management, and compliance in each division, in addition to the control activities carried out regularly, we ensure internal audit activities thorough control by means of supervision by the Export Management Committee, the Daihatsu Environmental Meeting, the Joint Labor-Management Conference, and the Functional Labor-Management Coordinating Committee. For the Company s subsidiaries and other Group companies, we ensure the enforcement of internal control activities through the affiliated-company management system. Daihatsu has published the Employee Action Guidelines summarizing appropriate conduct as a corporation as well as the basic attitude and conduct policies of employees concerning their relationship with society, business partners, and external organizations. Report Instruct Instruct Report Internal Control Committee Chairman: a director whom the president appoints Regular committee meetings are held four times a year. Additional meetings can be held if needed. All matters related to internal control are covered. Employees Voice (Helpline System) Report Control Center (department responsible for control of each affiliated company) Report Affiliated Companies Investigate Hearing Various Committees Export, Environmental, etc. Report Report

16 Corporate Governance/Corporate Social Responsibility 15 On the occasion of establishing the new Group Philosophy, Daihatsu has published the Daihatsu Group Action Guidelines, which summarizes appropriate conduct as a corporation as well as the basic attitude and conduct policies of employees concerning their relationship with society, business partners, and external organizations. Through these efforts, we are thoroughly implementing compliance throughout the Group. In addition, we established the Employees Voice Helpline system, whereby an employee can offer pertinent information in anonymity, in the event that a threat of conduct contrary to the law, social ethics, human rights, or internal company regulations might take place in the workplace or in the case when such conduct has already occurred. The system enables the Company to take measures to prevent such occurrences or to take quick actions in the event of an emergency. Policies and Measures to Encourage the Active Role of Women The Company proactively maintains an environment conducive to both work and raising children in order to encourage the active role of women. To date, the Company has introduced various programs to assist female employees. These include the child-rearing leave system until the age of two (which exceeds legal statutes); the shortened hours and child-care leave system for female employees with children up 1 years old; the maternity leave system for pregnant employees; and the return-to-work system for female employees who must resign due to a spouse s job transfer. In addition, we have implemented measures that promote the role of female employees in manufacturing facilities, including maintaining production lines comprised entirely of women. Environmental Accounting In accordance with the Ministry of the Environment s Environmental Accounting Guidelines, Daihatsu maintains an awareness of environmental-related investments and maintenance costs. In the year ended March 31, 213, environmental conservation costs came to 1.8 billion, or 1.% of nonconsolidated net sales. Information Transmission Route During Crises President Crisis Countermeasures Group Crisis Countermeasures Chief Officer Department in crisis Group Heads or Executive Officers (Factory Heads, Department Heads) In charge of supervision In charge of public relations In charge of mass media support In charge of legal affairs, research, and information collection In charge of government and industrial affairs In charge of victim support In charge of consumer support In 29, the scope of Crisis Countermeasures Group activities was approved by the officers meeting to include the execution of appropriate crisis management in emergency situations, such as fires, accidents or scandals. The resolution defines the role of each department in a crisis situation, allowing appropriate judgment on crisis situations and an integrated response on a working level as well as on a consolidated basis. Environmental Conservation Cost () Year ended March 31, 213 Year ended March 31, 212 Category Investment Cost Investment Cost 1. Business Area Cost 286 2, ,351 (1) Pollution Prevention Cost 135 1, ,418 (2) Global Environmental Conservation Cost (3) Resource Recycling Cost Upstream/Downstream Cost Environmental Conservation Cost, Administrative Environmental Conservation Cost, R&D 784 6,88 1,632 6, Environmental Conservation Cost, Social Activity 6. Environmental Remediation Cost Subtotal 1,82 9,792 1,774 9,893 Total 1,874 11,666

17 Consolidated Financial Information Years ended March () Operating performance Net sales 1,631,395 1,574,727 1,559,412 1,631,32 1,764,976 Operating income 38,191 4,747 13, , ,4 Net income 22,74 21,162 52,555 65,138 81,46 R&D expenses 44,29 43,734 38,227 33,83 35,71 Capital investment* 1 76,7 36,745 4,614 69,336 73,181 Depreciation* 1 83,654 72,945 63,728 61,72 56,244 Net sales 1,764.9 billion (up 8% year on year) Net sales achieved a record high primarily due to a rise in Daihatsu vehicle sales in Japan as well as increases in overseas sales of consigned and OEM vehicles and an improved exchange rate. Cash flow Cash flows from operating activities 76,87 132,11 144,17 25, ,788 Cash flows from investing activities (84,611) (47,234) (42,22) (6,673) (65,125) Cash flows from financing activities 3,157 (37,521) (27,791) (37,831) (38,556) Free cash flow* 2 (8,524) 84,777 12,85 145,142 64,663 Financial position Total assets 1,98,368 1,134,15 1,12,981 1,277,415 1,344,542 Total net assets 365, , ,332 54, ,75 Financial indicators (%) Return on equity Equity ratio Operating income 133. billion (up 15% year on year) In Japan, operating income outperformed results from a year ago, mainly due to the impact of government subsidies for eco-friendly cars in the first half of the year under review and strong sales of the new Move. In addition, operating income reached a historical high largely because of robust performance in Indonesia and an improved exchange rate. Per share information ( ) Net income-basic Cash dividends Other indicators Number of employees 39,19 39,985 39,76 4,76 39,862 *1 Excluding assets for lease. *2 Free cash flow is the sum of cash flows from operating and investing activities.

18 Consolidated Financial Information Years ended March Net sales (left axis) Net income (left axis) R&D expenses Operating income (right axis) Return on equity (right axis) (Billions of yen) 2, Net sales (left axis) Operating income (right axis) 1,5 1, (Billions of yen) (Billions of yen) (%) 1 2 Net income (left axis) 17.5 Return on equity (right axis) (Billions of yen) 5 4 R&D expenses 35.7 (Billions of yen) 2, 1, 1,5 5 1, (Billions of yen) (Billions 6 of yen) (%) (Billions 3 of yen) , (Years ended March 31) (Years ended March 31) (Years ended March 31) (Years ended March 31) (Years ended March 31) (Years ended March 31) Capital investment Total assets Net assets (left axis) Depreciation Equity ratio (right axis) (Billions of yen) 1 8 Capital investment Depreciation 73.1 (Billions of yen) 1,6 1,2 Total assets 1,344.5 (Billions of yen) 6 45 Net assets (left axis) Equity ratio (right axis) (%) 4 3 (Billions 6 of yen) (Billions of yen) 1,6 8 1,2 4 1,344.5 (Billions of yen) (Years ended March 31) (Years ended March 31) (Years ended March 31) (%) (Years ended March 31) (Years ended March 31) (Years ended March 31)

19 Consolidated Balance Sheet March 31, 213 and ASSETS Current assets: Cash on hand and in banks 119,79 14,265 Deposits 25, ,353 Trade notes and accounts receivable 283,55 3,439 Electronically recorded monetary claims-operating 5,272 7,299 Merchandise and finished products 35,69 35,15 Work in process 15,749 14,547 Raw materials and supplies 25,986 23,779 Deferred tax assets 29,42 25,812 Other 75,61 67,469 Less allowance for doubtful accounts (1,468) (1,452) Total current assets 794,13 764,53 Fixed assets: Property, plant and equipment: Buildings and structures, net (2) (4) 141,423 13,316 Machinery, equipment and vehicles, net (2) (4) 121,632 15,919 Land (2) (4) 128, ,34 Construction in progress 11,958 2,893 Other, net (4) 32,738 28,685 Total property, plant and equipment (1) 436,314 41,155 Intangible fixed assets 7,573 7,138 Investments and other assets: Investment securities (2) (3) 84,494 69,67 Long-term loans receivable 1,929 4,252 Deferred tax assets 14,474 16,616 Other 6,36 5,89 Less allowance for doubtful accounts (294) (235) Total investments and other assets 16,64 95,592 Total fixed assets 55, ,885 Total assets 1,344,542 1,277,415

20 Consolidated Balance Sheet March 31, 213 and LIABILITIES Current liabilities: Trade notes and accounts payable 196, ,824 Electronically recorded monetary claims 1,991 Short-term debt (2) 116,22 112,738 Accrued income taxes 24,87 25,44 Accrued expenses 79,466 77,24 Provision for bonuses for directors and corporate auditors Provision for product warranties 12,314 8,811 Other 98,293 9,978 Total current liabilities 628,4 65,847 Long-term liabilities: Long-term debt (2) 49,89 5,92 Deferred tax liabilities 4,153 4,291 Provision for retirement benefits for employees 64,27 6,46 Provision for retirement benefits for directors and corporate auditors 1,54 1,681 Other 5,76 6,125 Total long-term liabilities 124, ,238 Total liabilities 752, ,86 NET ASSETS Shareholders equity: Common stock 28,44 28,44 Additional paid-in capital 1,896 1,896 Retained earnings 454, ,62 Treasury stock, at cost (667) (658) Total shareholders equity 493, ,244 Accumulated other comprehensive income Net unrealized holding gain (loss) on securities 15,39 1,641 Deferred gain (loss) on hedges (71) (7) Foreign currency translation adjustments (8,28) (15,598) Total accumulated other comprehensive income 7,38 (4,964) Minority interests 91,99 74,49 Total net assets 591,75 54,329 Total liabilities and net assets 1,344,542 1,277,415

21 Consolidated Statements of Income March 31, 213 and Net sales 1,764,976 1,631,32 Cost of sales (1) 1,367,91 1,27,34 Gross profit 397,65 361,286 Selling, general and administrative expenses: Sales incentive 25,857 23,898 Packing and transportation expenses 1,719 8,938 Advertising expenses 24,52 22,663 Provision for product warranties 1,1 7,4 Other selling expenses 36,237 37,392 Salaries and bonuses 78,62 74,887 Legal and employee benefits expenses 15,233 14,456 Retirement benefit expenses 3,741 3,289 Depreciation 14,284 14,352 Provision of allowance for doubtful accounts Other 44,435 38,288 Total selling, general and administrative expenses (1) 264,25 245,823 Operating income 133,4 115,462 Other income: Interest income 4,171 3,699 Dividend income Gain on sales of fixed assets Equity in earnings of affiliates 5,812 5,1 Foreign exchange gains 2,887 1,65 Miscellaneous income 6,472 6,696 Total other income 2,473 17,912 Other expenses: Interest expenses 1,514 1,911 Loss on sales and disposals of fixed assets 1,612 1,811 Reversal of foreign currency translation adjustments 798 Miscellaneous expenses 1,414 1,428 Total other income 5,34 5,151 Ordinary income 148, ,223 Extraordinary income: Subsidy for facilities (2) 96 1 Total extraordinary income 96 1

22 Consolidated Statements of Income March 31, 213 and Extraordinary loss: Impairment loss (3) Loss on reduction of fixed assets (4) Loss on disaster 2,25 Loss on sales of investment securities 325 Total extraordinary loss 476 2,89 Income before income taxes and minority interests 147, ,513 Income taxes: Current 5,578 43,19 Deferred (4,26) (216) Total income taxes 46,372 42,974 Income before minority interests 11,421 82,539 Minority interests in net income of consolidated subsidiaries 2,14 17,41 Net income 81,46 65,138

23 Consolidated Statements of Comprehensive Income March 31, 213 and Income before minority interests 11,421 82,539 Other comprehensive income Net unrealized holding gain (loss) on securities 4, Deferred gain (loss) on hedges (69) Foreign currency translation adjustments 13,179 (7,16) Share of other comprehensive income of equity method affiliates 2,49 (88) Total other comprehensive income (1) 19,838 (7,1) Comprehensive income 121,259 75,439 Comprehensive income attributable to Comprehensive income attributable to owners of the parent 93,49 62,47 Comprehensive income attributable to minority interests 27,85 13,31

24 Consolidated Statements of Changes in Net Assets March 31, 213 and Common stock Additional paid-in capital Shareholders equity Retained earnings Treasury stock, at cost Total shareholders equity Accumulated other comprehensive income Net unrealized holding gain (loss) on securities Deferred gain (loss) on hedges Foreign currency translation adjustments Total accumulated other comprehensive income Minority interests Balance at April 1, ,44 1, ,5 (653) 384,147 9,697 (9,864) (166) 64,35 448,332 Total net assets Effect of changes in accounting policies applied to foreign subsidiaries Changes during the year Dividends from retained earnings (14,74) (14,74) (14,74) Change of scope of consolidation Net income 65,138 65,138 65,138 Acquisition of treasury stock (4) (4) (4) Net change in items other than shareholders equity during the year 943 (7) (5,733) (4,797) 9,698 4,9 Total changes during the year 51,11 (4) 51, (7) (5,733) (4,797) 9,698 55,997 Balance at April 1, ,44 1, ,62 (658) 435,244 1,641 (7) (15,598) (4,964) 74,49 54,329 Effect of changes in accounting policies applied to foreign subsidiaries Changes during the year Dividends from retained earnings (23,3) (23,3) (23,3) Change of scope of consolidation Net income 81,46 81,46 81,46 Acquisition of treasury stock (8) (8) (8) Net change in items other than shareholders equity during the year 4,749 (63) 7,317 12,3 17,5 29,53 Total changes during the year 58,375 (8) 58,367 4,749 (63) 7,317 12,3 17,5 87,42 Balance at March 31, ,44 1, ,978 (667) 493,611 15,39 (71) (8,28) 7,38 91,99 591,75