San Antonio:

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San Antonio

• Continuing the Toyota Momentum

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San Antonios Long-Term Commitment to Japan and
Toyota

• Community decision to target Japanese investment
  in mid-80s
• EDF hired Tokyo-based consultant in 1985
• Selected key companies with growing U.S. market
• Sony, Toyota, others

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February 2003Toyota Selects San Antonio
Toyotas Fujio Cho
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State-of-the-art Tundra Plant

• 800 million investment by 2006
• Employing 2,000
• Boosting citys national and international status
  as manufacturing site

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October 2003Toyota Tundra Truck Plant
Groundbreaking

• Groundbreaking brings new realm of economic
  development opportunity

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EDF Maintains Momentum

• Toyota needs on-site suppliers
• Efficiency
• Quality control
• EDF needs on-site suppliers
• Fully capitalize on economic development
  opportunity
• Continue development of Southside SA

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Developing A Supplier List

• EDF identified 500 potential Toyota Tundra parts
  makers 30,000 Tundra parts
• Helped Toyota identify local opportunities with
  qualified businesses and service providers
• Implemented strategic marketing campaign
  targeting potential suppliers, telling the San
  Antonio/Toyota story

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Intense Competition

• Suppliers could locate up to 1 ½ hours away
• Numerous surrounding communities wanted supplier
  jobs

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Strategic Marketing Initiatives

• National Advertising Campaign
• 2003 96,000 2004 102,000 2005
  86,000
• 2003 19 ads 2004 21 ads 2005
  18 ads
• Direct mail pieces 2 pieces to more than 700
  auto parts manufacturers
• Follow-up phone calls
• Visits to suppliers U.S. headquarters

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Workforce Issues

• Locating next to Toyota brought concerns
• Wage pressures
• Losing experienced employees to Toyota and other
  suppliers
• EDF counters concerns
• Providing data on the areas large, available
  workforce
• Emphasizing low cost of doing business
• Creating sense of excitement and community for
  on-site suppliers

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Complex Package of Incentives

• EDF negotiated incentives with state and local
  governmental taxing bodies
• 100 tax abatement from City and County on real
  and personal property
• Franchise Tax credit
• Sales Tax exemption
• Financing programs

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Incentive Package

• Funding for workforce training assistance
• Federal Empowerment Zone wage credit
• State Enterprise Project Designation

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Utilities

• EDF assisted with negotiation of special utility
  agreements
• With energy utility City Public Service
• On-site suppliers to buy energy via secondary
  meters
• With San Antonio Water System
• Secondary water metering to eliminate local
  impact fees

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Toyotetsu, supplier of stamped parts

• The San Antonio Economic Development
  Foundation took on many complex tasks involving
  multiple partners in establishing the on-site
  supplier park where we decided to locate. The
  arrangement for secondary utility metering,
  allowing Toyotestu to benefit from Toyotas
  high-use rate, made a big difference in our
  decision, and made clear the benefits of locating
  at the plant site.

Herb Krase
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Joint Venture Partners Another Layer

• Helping suppliers locate local joint-venture
  partners
• Toyota committed to the community to reflect San
  Antonios diversity
• EDF committed to Toyota to assist with
  identifying minority partners

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On-Site Supplier Park

• December 16, 2004 EDF joins Toyota, government
  officials to announce names of on-site suppliers.
• Largest concentration at any other North American
  automotive plant
• 50 more local jobs and investment than
  originally estimated

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Supplier Partners

• Range from industry giants
• Johnson Controls, Inc., Lear, Tenneco, AGC
• Regional manufacturers, such as Reyes Automotive
  and Avanzar Interior Technologies

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On-site suppliers

• AGC Automotive Americas
• ARK, Inc.
• Avanzar Interior Technologies
• Curtis-Maruyasi America, Inc.
• Futaba Industrial Texas Corp.
• Green Metals, Inc.
• HERO Assemblers, LLP
• HERO Logistics, LLP
• Metalsa
• Millennium Steel Service Texas, LLC
• PPG Industries, Inc.
• Reyes-Amtex
• Reyes Automotive Group
• Takumi Stamping Texas, Inc.
• Tenneco Automotive
• Toyoda-Gosei Texas, LLC
• Toyotetsu Texas
• Vutex, Inc.

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Moving Forward

• Continue recruitment of Tier One
• Targeting Tier Two suppliers
• Focus ads at broader automotive market
• Capitalize on manufacturing expertise developing
  in the San Antonio area

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Toyota Motor ManufacturingNorth America, Inc.

• "Our Texas facility, with its concentration
  of on-site suppliers, represents a new approach
  to automotive manufacturing. The San Antonio
  Economic Development Foundation's role in
  marketing the city to our suppliers was a major
  contributor to Toyota attaining our vision of
  'Team Texas.' Toyota realized the benefits of San
  Antonio several years ago, thanks in large part
  to a lot of hard work from the Foundation. Now
  our suppliers feel the same way. The Foundation
  has simply been a great partner for us and our
  suppliers."

Jim Wiseman, Vice President of Corporate Affairs