May 1, 2015

Historical Overview of Net Income
（億円）
（万台）
140.0
6.88
7.59
8.12
8.69
7.10
7.28 7.34
7.53
8.56
8.95 8.95
73.0
67.5
66.2
67.4
67.5
58.2*
45.7
47.1
37.5
40.2
27.3
9.12
70.0
Plan Target
2005 2006
Fiscal years to March 31
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020
*Excludes the JPY 19.0 billion tax reduction effect due to the merger.
(Net income before amortization of goodwill)
© 2013
Stable performance as a result of increased automobile production
1

Issues and Initiatives to Achieve Annual and Long-Term
Plans
Initiatives to achieve the long-term business plan
Issues
Strengthen the earnings foundation of the automotive business
Build businesses in which we have invested and expand earnings in them
Create a new generation of businesses
© 2013
Initiative Policies
・ Propose businesses that meet customer needs in each region
・ Develop peripheral businesses that leverage strengths
・ Successfully monetize the businesses we launch
・ Restructure for more growth businesses
・ Rigorously invest in areas that leverage our strengths and businesses that are highly profitable
2

Fiscal Year Ending March 2020: Multistage
Net Income Targets
(Billion yen)
70.0
© 2013
March 2016
Plan
+20.0
+20.0
+20.0
Amortization of goodwill completed
(Tomen, Eurus, etc.)
Amortization of goodwill suspended
(CFAO, etc.)
Existing business growth
Monetize prior investments
+10.0
(Net income before amortization of goodwill)
Returns on new investments
140.0
March 2020
Target
3

Quantitative Targets of Long-Term Business Plan
(Billion yen)
(Net income before amortization of goodwill)
PL Operating income
Net income
BS
Net sales
Total assets
Shareholders’ equity
Comprehensive income
March 2014
Results
7,743.2
161.3
73.0
4,072.7
799.8
172.9
1,156.0
March 2015
Results
8,663.4
169.4
67.5
4,533.6
844.4
281.0
1,304.4
March 2016
Plan
8,400.0
158.0
70.0
4,900.0
900.0
–
1,370.0
March 2020
Target
9,500.0
270.0
140.0
6,500.0
1,200.0
–
1,900.0
Net assets
Net interest-bearing debt
1,088.9
1,233.6
1,300.0
1,600.0
© 2013
Net DER
Investments
New investments
1.1
146.1
1.1
208.8
No more than
1.1
1.5 times
Invest within the scope of operating cash flow
Emphasize sound finances
4

Strengthen the Earnings Foundation of the Automotive Business
Americas & Europe Asia Pacific & China
Emerging Countries
& Africa
Automobile
Production
・ Start in Mexico
・ Deal with changing car models
・ Improve processing technology
・ Use new materials
・ Improve capabilities in China
・ Implement IMV
・ Establish Mekong distribution
・ Techno-park
・ Implement IMV
・ Lower costs
Automobile
Sales
・ Raise management efficiency
・ Popularize brands
・ Enhance sales network in main countries
・ Scrap and build
・ Deal in commercial components
・ Expand OEM use
・ Enhance sales network
・ Create individual demand
・ Pre-owned cars and sales finance
*
Circle size corresponds to the extent of business expansion
Implement production and sales strategies for each region
© 2013
5

Build Businesses in Which We Have Invested and Expand Earnings in Them –
Successfully Monetize the Businesses We Launch
Division Business Areas Future Initiatives
Metals
Global Parts & Logistics
Automotive
Machinery, Energy &
Project
・ Rare earths
・ Lithium
・ Techno-park
・ Aftermarket component sales
・ Pre-owned cars & sales finance
・ Hydrogen & electric vehicle businesses
・ Gas business
・ Power generation business
・ Iodine
・ Superabsorbent polymers (SAP)
・ Increasing productivity from stable operations
・ Expand sales channels
・ Strengthen Tier 1 and Tier 2 relationships
・ Sell more materials and form local relationships
・ Alliances with new car dealers
・ Create framework for popularizing brands
・ Rigorous control of development schedule
・ Strengthen relationships with strong partners
Chemicals & Electronics
Food & Agribusiness ・ Wheat & sugar businesses
・ Secure sales routes for unique products
・ Development of businesses from upstream to downstream
・ Expand sales channels
・ Operate in peripheral service businesses
Consumer Products &
Services
・ Hospital & nursing services
Implement initiatives required for rapid returns
© 2013
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Prior Investment Projects: Growth Areas with Projected Earnings Growth
Division Business Area
Machinery, Energy &
Project
・ Renewable energy
Chemicals &
Electronics
・ Electronics
・ Pharmaceuticals business
Food & Agribusiness
・ Grain business
・ Beverage business
Consumer Products &
Services
・ Insurance package services
・ Textiles
Future Initiatives
・ Portfolio balanced among Japan, Europe and the USA
・ Diversify generation methods (solar, biomass, geothermal, offshore wind, etc.)
・ Exercise Group synergies
・ Expand business in which Toyota Tsusho is strong, incl. automotive
・ Increase products handled by building ties with manufacturers and constructing networks
・ Build value chains from upstream to downstream
・ Strengthen relationships and development with strong partners
・ Operate overseas, and increase insurance products handled
・ Review purchasing and sales routes, and create brand strategies
© 2013
Leverage our strengths to generate additional growth
7

Policies for New Investments
Target implementation of TRY-1 by generating additional growth in core businesses based on long-term strategy and continuing to invest to develop next core businesses
© 2013
Selectively invest in growth areas and highly profitable businesses by leveraging our strengths
8

New Investment Areas:
Initiatives to Build Next Core Earnings Drivers
Core
Strength: Highly experienced
Growth potential: Sustain and ensure growth in existing businesses
(Automotive-related businesses)
Next Core
Strength: Highly experienced
Growth potential: Market share gains, etc.
・ Africa (Groupwide)
・ Power generation business (Incl. renewable energy)
・ Electronics business expansion
Business Model Lifecycle
Current core earnings drivers
Challenge
Strength: Partners complement our strengths when we are less experienced
Growth potential: market scale and product lineup expansion
・ Upstream grain strategy
・ Environment, recycling, medical, agribusiness
Market Growth Potential
Phase 2 core earnings drivers
© 2013
Phase 2 core earnings drivers: businesses with potential for good results and growth
Phase 3 core earnings drivers
Building the next core earnings drivers
Build next core earnings drivers with awareness of business model lifecycle
Temporal axis
Phase 3 core earnings drivers: businesses that exceed each division’s parameters from a long-term perspective 9

Next Core Earnings Drivers 1: Build Our Presence in Africa
April 2015: Africa designated as our fifth key region
Automobile
CKD production
Rely on CFAO to expand
Toyota automobile sales
Toyota
Tsusho
Support &
Cooperation
・ Develop retail business through Carrefour
・ YAMAHA two-wheeler assembly & sales
・ L'Oréal production & sales
Rely on CFAO to expand in the pharmaceuticals business
Cross development from Kenya in the infrastructure business
(geothermal power, harbors, etc.)
Toyota Tsusho (Toyota models) and CFAO (VW models, etc.) will expand sales of automobiles
Create
Synergy
Automobile production
Throughout Africa, develop businesses that demonstrate the Toyota Tsusho Group’s strengths
© 2013
10

Next Core Earnings Drivers 2: Develop a Unique Power Generation Business
Thermal Power Generation Business
North America
● Base: TTP (USA)
N. America gas-fired CCGT 3,455MW (gross ）
Asia Pacific
● Base: TPS (Singapore)
1,966MW in Asian countries (gross)
Renewable Energy
Eurus Energy
・ Wind + solar power: 2,600MW (gross)
 Largest wind power station in Japan (over 20% share)
・ Ability to structure non-recourse financing and achieve internalizing development and maintenance in Japan
ENE-VISION: In-house & biomass power generation
● Geothermal & solar power generation businesses
● Creation of power generation infrastructure in Africa & the Middle East
● Link the power generation resources & network of
Group companies to expand initiatives to enter new business areas
・ Regional expansion of the renewable energy business in Japan and overseas
・ Transmission business, surplus power storage and sales (hydrogen, storage batteries, etc.)
 Investigate potential of new business areas
© 2013
Demonstrate the various power sources we offer and grow by synergistically creating unique clean energy businesses that can provide stable power generation in various countries and business areas
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Challenge Project: Acquisition of NovaAgri
Grain Strategy Component
Acquired stable upstream procurement and cost competitiveness.
Downstream linkage through value chain (primarily in Asia).
Strengths & Issues in Brazil Strengths of NovaAgri & Toyota Tsusho
● Grain global export share (Fiscal 2013/14)
Soybeans: 41%; Corn: 16.5% (both No. 2 globally)
● Storage capacity for about 90% of domestic production volume (chronic capacity shortage)
 Room for new entrants, unlike N. America, which is controlled by an oligopoly of grain majors
● High growth in grain production forecast for Brazil
Grain infrastructure integrated from inland warehouses to ports in northern Brazil
● Long term access rights for key ports, access to railroads and truck routes linked with major producing states in Northern Brazil
 Have four grain silos in Japan, where there is demand
 Stable supply to customers in Southeast Asia and
China
Our Grain Strategy
Businesses in Supply Regions
Earth & Resources
Collection/
Transport/
Storage
Shipment (Export) Initial processing
Attractive market
Trading
Marine transport
Businesses in Consumer Regions
Life & Community
Import (Logistics) Initial processing
Livestock/
Secondary processing
Now a major strategic market for Toyota Tsusho
Attractive market
2nd Step: ensure raw material procurement for this project 1st Step: Participate in downstream businesses
3rd Step: Leverage the resource procurement capabilities we acquired to further
12

13

Policies for New Investments
Selectively invest in growth areas and highly profitable businesses by leveraging our strengths
© 2013
• Invest within the scope of operating cash flow
• Rigorously employ quantitative standards (RVA & TVA) and emphasize investment returns
• For investment projects, determine Groupwide and Division priorities and replace existing projects and businesses
(strategic allocation of managerial resources)
14

Rigorously Manage the Investment Cycle
1. Policy Committee
(March)
Set and approve division policy based on Group policy
 Manage the pipeline
2. Investment Strategy
Meeting (Monthly)
Senior managers and chief division officers discuss strategic significance and priorities
Go
Exit
5. Portfolio Meeting
(October )
Business monitoring system
 Restructuring & exit decisions
 Adds rigor to exit rules
Revamp
© 2013
3. Investment and Loan
Meeting (Weekly)
Discusses investment and loan proposals
Drop
4. Decision
(Monthly) Go
Strengthening governance with outside directors 15

Quantitative Assessment Criteria for New Loans and Investments: Risk Adjusted Value
Added (RVA) and Capital Efficiency Indicator (TVA)
Risk Adjusted Value Added: RVA ＞ 0
RVA =
Ordinary income x 60% – RA x risk cost
 Verifies whether we are generating sufficient earnings from risks taken
TVA =
Capital Efficiency: TVA ＞ 0
(Ordinary income – net interest expense)
× (1 – country tax rate ） – capital employed
× country capital cost rate
 Verifies whether we are generating expected earnings and capital employed
Background for Risk and Capital Cost Rates
1. Target: RA ≒ RB ≒ Net worth
2. Target return for RA ≒ Return on equity = ROE
3. Cost rate is set at 10% to 13% to increase ROE
© 2013
We use and rigorously apply quantitative benchmarks
16

© 2013
Clarifying Benchmarks for Supporting or
Exiting Businesses
Consolidated Subsidiaries and Major Affiliates
First 5 years
After 5 years
FS deviation over 50% (After-tax profit)
Business profit below ¥100 million (3 consecutive years) or after-tax loss for fiscal year
Negative RVA
Yellow
(Loss exceeds
-50%)
“Under Scrutiny” status (Support)
Evaluate after two years
Continue Exit
17

18

Basic Policy for ROE
Long-term business plan target
(Year ending March 31, 2020)
ROE ： 10% to 13%
© 2013
Improve benchmark ROE of 10% to 13% in light of factors including various changes in the operating environment and the application of quantitative benchmarks for assessing businesses
19

Basic Risk Asset Management Policy
◆ Basic Risk Asset Management Policy
1) Keep total risk within a sustainable range
2) Secure earnings to justify risk taken
RA ≦ RB
RVA * ＞ 0
(Ordinary income after tax – RA × 10%)
※ １ :RVA （ Risk Adjusted Value Added)
March 31, 2015 = Preliminary basis =
RA
(Risk assets)
Approx.
JPY 980 billion
RB
(Risk buffer; mainly net worth)
Approx.
JPY 990 billion
RA ： RB ratio  0.99 : 1
(Reference) 1.13 : 1 as of March 31, 2014
RVA ＞ 0
(Risk cost 10% ）
We target sound, strong finances that enable future investments by reviewing existing investments and improving capital efficiency and the risk profitability of businesses
© 2013
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21

Dividend Policy
New Divided Policy
We will generate stable, sustained shareholder returns with a target consolidated payout ratio of 25% calculated using net income before amortization of goodwill
Cash dividends per share (Yen)
62
56
◆
Dividend payout ratio
Payout ratio (using earnings before amortization of goodwill)
42
44
50
◆
29%
◆
31%
◆
28
◆
◆
23%
24%
20%
◆
21% 22% 19%
© 2013
March
2011
March
2012
March
2013
March
2014
March
2015
March
2016
Planned
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23

Personnel Development to Achieve Global 2020 Vision
We need to develop people who can manage diverse employees, create businesses and build businesses with overseas partners in order to achieve our
2020 Vision and become a truly global corporation
Young
Employees
Specific Initiatives
• Assign to companies throughout the Group to acquire firsthand competencies
• Give all employees overseas assignments within their first 7 years
Outside
Directors
• 3 outside directors, incl. 2 women, to vitalize the Board of Directors
• Introduction of governance code to expand functions of outside directors
D&I
• Form Diversity Task Force in each department
• Proposals for issues including work from home, shorter hours, maternity leave and nursing leave
Global D&I
• Hire and employ elite foreign employees with business creation and senior management skills
• Actively promote foreign employees
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© 2013

Inquiries:
Investor Relations Group
E-mail ttc_ir@pp.toyota-tsusho.com
TEL +81-3-4306-8201
FAX +81-3-4306-8818
© 2013
◆ The presentation material includes “forward-looking statements” such as those pertaining to the strategy and management plan of Toyota Tsusho Corporation and its group companies, which are not historical facts. The forwardlooking statements are based on expectations, estimates, and forecasts available at the current moment, and necessarily include risks and uncertainties. Accordingly, the information on the business environment, future performances, business results, and financial standings of the Company explicitly or implicitly expressed in the forwardlooking statements could differ materially from the actual results. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
◆ The presentation material is not intended to be the basis for an offer or solicitation to buy or sell any security. In making a decision on investment, etc., prospective investors may not rely on the information in this presentation.
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