Tomikawa

As it happens, in the past month your motorsport-related activities were called into question.

It happened during the General Shareholders’ Meeting on June 18. This shareholders’ meeting was the first to be chaired by President Koji Sato.

As for yourself, you returned to the respondent role for the first time in 15 years, since 2009.

How did it feel to be sitting beside the chairperson’s seat?

Toyoda

Well, it’s a lot easier. I probably shouldn’t say that, but being the chairperson is hard. It’s not like I’m just sitting around, but compared to being chairperson, I can really relax.

That said, whether you get called on or not is out of your control, so that’s the only concern.

Tomikawa

Now I’m even more certain about one thing. Early on in the meeting, you said, “It’s been 15 years since the chairperson last called on me—I forgot how nerve-wracking it is.”

In that instant, the atmosphere in the room lightened, but I thought, “There’s no way he’s nervous.” And you really weren’t, were you? (laughs)

Toyoda

You know, at Denso, I’m on the respondent side as well. At the Denso shareholders’ meeting, I really meant it when I said I was nervous. This time around, I wasn’t as nervous, but I still tried it out (laughs).

Tomikawa

I thought so (laughs). It worked well, with everyone indeed wondering whether you were feeling nervous.

Toyoda

I think it shifted the mood a little.

Tomikawa

More than anything, your face was so calm, you definitely didn’t seem nervous.

Toyoda

A shareholders’ meeting isn’t the kind of place where you feel calm.

Tomikawa

You alone seemed to be.

Toyoda

I spent the past 14 years turning it into a platform for dialogue. Even with a different chairperson, it was still that kind of space.

The shareholders, staff, and everyone else were wonderful at carrying it forward. More than anything, I think the chairperson did a great job.

Tomikawa

When I asked people for their thoughts after the meeting, some said, “Toyota’s shareholder meetings are unlike any other.” As the former chairperson, what did you think about President Sato…

Toyoda

I think he did great.

He may have wanted to say more, but I think that was good for the first time around.

Tomikawa

I feel like he tried to give many people a chance to respond.

Toyoda

That’s definitely the best way, from my experience.

Chairing a shareholders’ meeting is tough. But you’re not up there alone. We’re all representing the company. It’s also an opportunity to confirm that the shareholders are behind us.

You learn that, even if we say we’re doing things right, it doesn’t always appear that way from the other side, from the shareholders’ perspective.

Once a year, it is our chance to look at ourselves in the mirror.

In that sense, I think the best way to deepen understanding is to get answers from the people closest to the facts.

Like an orchestra conductor, I think the chairperson did a great job coordinating all the responses and leading the shareholders’ meeting.

Tomikawa

The team-based management also showed through. One thing we must mention from this year’s general meeting is your re-election to the board, which was supported by 71.93% of votes.

Toyoda

No director has ever had such a low approval rate at Toyota Motor.

Tomikawa

How did you take this result?

Toyoda

With mixed feelings, I guess. At this rate, I won’t be able to remain on the board next year.

Tomikawa

Do you mean the rate of decline?

Toyoda

Looking at the details, we have individual shareholders and institutional investors, and I enjoy little support among the latter.

Tomikawa

To give specific numbers, you received 33.6% approval from overseas institutional investors and 55.3% from domestic institutional investors. Meanwhile, 98.8% of individuals were in favor.

Toyoda

It means that, at this general meeting, the overseas contingent said “No” to me being a director.

Support from domestic institutional investors also slipped to 50%, from more than 70% in previous years.

Based on my conduct over the past year, half of them are telling me I should quit. On the other hand, nearly 99% of individuals said yes.

Tomikawa

That's up more than 2% from last year.

Toyoda

Although individuals have the numbers, that doesn’t change the fact that I’m rather poorly regarded by institutional investors.

Tomikawa

But we feel the same way as the individual investors, and there are many Akio fans out there. What you’re doing is coming through in the cars, so I can completely understand why approval would increase moving forward. I wonder what it is…

Toyoda

At the same time, even though I was no longer chair, a huge number of people left me personal messages on their voting forms.

Tomikawa

Not that you asked for them (laughs).

Toyoda

That’s not usually where you write things (laughs). However, just like the times it moved me to tears during my term as chairman, it made me feel that I am being supported.

Still, seeing the numbers makes me feel that is the reality.

Tomikawa

As one shareholder asked, perhaps institutional investors see you as ruling from behind the scenes while indulging in your hobbies?

Toyoda

I’m not sure about that. People often point to things like the low proportion of women, but I think the rise in opposing votes was extremely sudden.

Tomikawa

At the general meeting, you responded to two questions from shareholders. One was about Woven City, while the other suggested you might be spending too much time on motorsports.

With regard to Woven City, you spoke about your hopes for the young people building the future. As for being a cloistered ruler overindulging in his hobbies, you explained how the original Japanese term insei (rule by a cloistered emperor) didn’t have a negative nuance, while doraku means to “enjoy” the “road.” On both occasions, the audience erupted in applause.

To me, that was indicative of how everyone felt.

Toyoda

I agree, but those who attended the general meeting accounted for just a small portion of our total shareholders. In the eyes of those speaking out against me, the people who attended in person are a minority.

That said, not all the individual investors were there, and nearly 99% of them support me. What’s more, the number is growing… I’m not sure what to make of all that.

Tomikawa

No matter what, I’m sure you will keep doing what you can, visiting the genba and making people smile, expressing your gratitude. Your response to the question about overindulging in hobbies could also be taken as a message of support for the executive team. Did you intend that nuance?

Toyoda

From my experience as chair, it was almost time to wrap things up, and the chairperson invited two final questions. After receiving applause, I was called on to answer the second, and I realized that was the end.

So, for a closing message, seeing as I had handed over the baton, I wanted to encourage people to support the leadership team.

Although some people have described me as insei, in its original sense the word is extremely positive, meaning “to blaze a new trail.”

I have never second-guessed or meddled to overturn leadership decisions. My approach is to be open for consultation upfront.

I myself have many failures to draw on. My comment was, “If this upfront approach is what you call insei, then I will gladly do it,” and I think this was actually a message to our leadership team.

Tomikawa

Today has reminded me that you really answer any question that comes your way.

Toyoda

I do. Despite that, I'm sure there are people who think this conversation was scripted in some way.

Tomikawa

We didn’t discuss any of this beforehand.

Toyoda

We didn't, but I’ll answer any of your questions.

Tomikawa

The fact that you do means I can ask anything, so thank you for that. I hope we can continue to have this opportunity every month.