Toyota Tsusho Corp. · TSE:8015
Toyota Tsusho — Investor Presentation (May 2022)
47 slides from Toyota Tsusho's investor presentation, May 2, 2022
Slide 1: Three Years Management Plan (FY2022 to FY2024)
Three Years Management Plan （FY2022 to FY2024） May 2, 2022 Toyota Tsusho Corporation ０
Slide 2: Contents
Contents 1. Review of previous three years management Plan P.2 (FY2019 through FY2021) 2. New three years management plan P.5 (FY2022 through FY2024) 3. Governance Structure P.22 4. Initiatives of Carbon neutrality P.24 5. Reference Materials P.26 1
Slide 3: 1. Review of previous three years management plan (FY2019-FY2021)
1. Review of previous three years management Plan (FY2019 through FY2021) 2
Slide 4: Mid-term business plan: FY2021 review
Mid-term business plan: FY2021 review [Published May 2019] FY2021 targets Results Profit for the year ¥170 billion ¥222.2 billion Achieved ROE 10% or higher 13.9% Achieved Net D/E ratio Within 1.0 times 0.71x Achieved Risk assets to risk buffer ratio (RA/RB) Less than 1.0 0.7 Achieved Maintained div
Slide 5: Cash flow and investment review
Cash flow and investment review (Unit: billion yen) Previous mid-term plan [Publ. May 2019］ Results［published May 2022］ FY2019–FY2021 targets FY2019–FY2021 Cash flow from Cash flow from Dividends Free cash flow Cash flow from Cash flow from Dividends Free cash flow operating activities investing aft
Slide 6: 2. New three years management plan (FY2022 through FY2024)
2. New three years management Plan (FY2022 through FY2024) 5
Slide 7: Qualitative aspects of mid-term business plan: Our management strategy
Qualitative aspects of mid-term business plan: Our management strategy Carbon neutrality “Be the Right One” initiatives Aiming to become a one-of-a-kind ally to our customers and partners Five working groups Priority areas Next Mobility Renewable African Circular Strategy Energy Growth Economy Appro
Slide 8: Continuous evolution towards the next new stage
Continuous evolution towards the next new stage ＜Toyota Tsusho’s growth process＞ 2000s 2010s 2020s and beyond Committed to Expanded globally with Africa with CFAO Toyota Group acquisition Business grew by merging Step into the With Tomen next new stage FY2000→FY2021 Market cap. 15.2x Profit for the
Slide 9: Qualitative aspects of mid-term business plan: Achieving our vision
Qualitative aspects of mid-term business plan: Achieving our vision Changes to operating environment Our vision & initiatives to achieve it ●Heightened awareness of circular 1) Hone organic business and economy and carbon neutrality; accelerate growth sustainably with digital transformation progress
Slide 10: Material issues and carbon neutrality/circular economy initiatives
1) Material issues (organic business/priority areas) and carbon neutrality/circular economy initiatives Business areas carbon neutrality/circular economy Priority areas in materiality Five working groups Next Mobility Renewable Energy Strategy Strategy Renewable Battery Energy/Energy Working Group M
Slide 11: Evolve supply chain in order to fully secure it
2) Evolve supply chain in order to fully secure it Current approach Approach from now on Multi-sourcing Evolution of Business continuity planning Global supply chain that prioritizes efficiency Local production for local consumption Retain competitive advantage by building resilient supply chain tha
Slide 12: Glocalization of personnel
3) “Glocalization” personnel Approach from now on ＜ Glocalization of personnel＞ Identify global posts* outside 113 Japan positions From these posts select those that can be filled by local 74 personnel positions Select candidates and train them to increase proportion of ●Autonomous regional manageme
Slide 13: Examples of organic business initiatives
Examples of organic business initiatives Logistics, assembly Raw materials/production Procurement and processing Sales and services Smart factories EC Platform （Manufacturing） （spare materials for machinery） Improving competitiveness Global optimized procurement Strengthen logistics with digitalizat
Slide 14: Next Mobility Strategy: Battery supply chain
Next Mobility Strategy: Battery supply chain Areas of strength Areas to grow Resources (raw materials) Raw materials and Battery Recycle parts processing manufacture Lithium carbonate Aluminum Production support (production capacity) foil functions Recycle・3R Salar de Olaroz, Argentina Introduce sol
Slide 15: Renewable Energy Strategy: Regional strategy map
Renewable Energy Strategy: Regional strategy map 10GW～ Capacity of power generation facilities Electric power value chain Total power generation capacity 3,610MW Wind Generate Store Adjust Deliver power 2,971MW 5GW Solar power 344MW Hydro power 270MW Europe: 1,196MW FY2021 FY2024 FY2029 Biomass 25MW
Slide 16: Renewable Energy Strategy: Profile of our business
Renewable Energy Strategy: Profile of Our business Research Generate Store Adjust Deliver ●Wind Research ●Strengthen core development ●Expand electric power venture capital functions Assessment capabilities Japan: Hokkaido(power generation/storage/transmission FY2021 ●Secure absolute volume for the
Slide 17: African Growth Strategy
Made In Africa African Growth Strategy Mobility Healthcare Consumer goods Electric power & infrastructure market leader market leader Tackling expansion Business growth Sub-Sahara Morocco, of the consumer strategies for energy goods and Develop retail (B2B and B2C) Sub-Sahara, and French overseas be
Slide 18: African Growth Strategy: Mobility & healthcare
African Growth Strategy: Mobility & healthcare Mobility 94,000 Healthcare Contribute to global health Group utomobile unit sales in Africa 68,000 6x Other 48,000 OEM Expand share 2.5 x in French-speaking countries First delivery FY2017 and establish sales ceremony (Ghana) channels in English- vs. sp
Slide 19: African Growth Strategy: Supporting mobility startups
African Growth Strategy: Supporting mobility startups Fund No. 1 11件/ Fund No. 2 40M EUR 2019 through Dec 2021 approx.21M EUR (from Jan 2022) Fields No. of Projects/value Sendy logistics platform Couriers Customer benefits Customer firms 2 / approx. 10M EUR ■Improved traceability Logistics services
Slide 20: Circular Economy Strategy: Recycling end-of-life vehicles and batteries
Circular Economy Strategy: Recycling end-of-life vehicles and batteries Recycling of Proper vehicle Reuse resources and Production scrapping proper disposal Reused parts business Collecting and Materials recycling Production services business properly disposing of business end-of-life vehicles Estab
Slide 21: Mid-term plan: Quantitative targets (profit for the year)
Mid-term plan : Quantitative targets (profit for the year) 180 178～ 250 Profit (attributable to owners of the parent) (Billion yen) (25.0%) 160 162 Dividend per share(Yen) (Dividend payout ratio) (27.1%) 160 200 Covid-19 250.0 140 (25.3%) effect 210.0 (Forecast) Turn around from 134.6 222.2 (Forecas
Slide 22: Financial Policy: Advancing Cash Flow Management
Financial Policy ～Advancing Cash Flow Management～ （Unit:￥bn)） Investment Policy ②Carbon neutrality-related investment as upfront investments in future growth ①Investments within the capacity of operating cash flow as a general rule Operating Investment 900.0 Dividends 750.0 cash flow cash flow Carbo
Slide 23: 3. Governance Structure
a ¥ a Bethe Right ONE 3: Governance Structure ay TOYOTA TSUSHO CORPORATION
Slide 24: Corporate governance reforms
Corporate governance reforms From FY2014 From FY2018 FY2022 Anticipated composition after Ordinary General Meeting of Shareholders in June Outside directors 19% 【3 of 16】 36% 【4 of 11】 50% 【4 of 8】 Female directors 13% 【2 of 16】 18% 【2 of 11】 25% 【2 of 8】 2006 2014 2017 2019 2020 2022 Adoption of ex
Slide 25: 4. Initiatives of Carbon neutrality
4. Initiatives of Carbon neutrality 24
Slide 26: Initiatives for climate change (internal)
Initiatives for climate change（internal） Carbon neutrality declaration (July 2021) 【Launch of in-house carbon pricing】 2019 2020 2030 2050 1.Reflect greenhouse gas reduction contributions in earnings results Base year 50% reduction Carbon neutrality ・Establishing a plan of Greenhouse Gas（Visualizati
Slide 27: 5. Reference Materials
a ¥ a Bethe Right ONE 2: Reference Materials ay TOYOTA TSUSHO CORPORATION
Slide 28: The Toyota Tsusho Group's Key Sustainability Issues
The Toyota Tsusho Group’s Key Sustainability Issues (Materiality) contribute to the creation Contribute to the transition to of a safe and comfortable mobility a carbon neutral society society Renewable Energy Next Mobility Strategy Strategy Grow with developing countries Contribute to the developme
Slide 29: Carbon Neutrality Roadmap
Carbon Neutrality Roadmap Going up five roads to help our customers, business partners, and society become carbon-free. 28
Slide 30: Passing on a better global environment to the children of the future
Passing on a better global environment to the Mission children of the future Our Corporate Philosophy We will aim to achieve our mission in accordance with our principle of “Living and prospering together with people, society, and the planet, we aim to be a value-generating corporation that contribu
Slide 31: Leading circular economy provider
Vision（Ideal Image） Leading circular economy* provider *An economy that maximizes added value through efficient and recycling-oriented use of resources at all stages. Toward achieving carbon neutrality, we will break through the center as the top runner and expand our frontline to span the entirety
Slide 32: Toyota Tsusho Group carbon neutrality declaration
Toyota Tsusho Group Carbon Neutrality carbon neutrality declaration We aim to be carbon neutral 2019 2030 2050 by 2050. Base year Reduction 50% Carbon neutrality We aim for a 50% reduction in Actual value GHG* by 2030 compared to 2019. ▲50％ *Greenhouse gases Neutral ●Parent company, domestic and ove
Slide 33: What we should do as the Toyota Tsusho Group
Our 2 Tasks What we should do as the Toyota Tsusho Group While focusing on reducing the GHG emissions of our corporate group, customers, and business partners, we aim to achieve further growth by expanding our business domains with ideas and proposals that contribute to the reduction of GHGs. ① MUST
Slide 34: Domains of strength and 5 WGs
Domains of strength and 5 WG*s *Working group As part of our efforts to contribute to the transition to a carbon-free society, our corporate group is engaged in businesses that support a circular economy at each stage of the industrial life cycle, which consists of producing energy, gathering and pr
Slide 35: Renewable Energy & Energy Management WG
Renewable Energy & Energy Management WG Road Renewable Energy: Experience-based,Practical Approach to Carbon Neutrality We will contribute to the achievement of carbon neutrality by applying the knowledge that we have cultivated in developing renewable energy. ▶Approach overview Produce Manage Deliv
Slide 36: Renewable Energy & Energy Management WG: Roadmap 2030
Renewable Energy & Energy Management WG ▶Carbon Neutrality Roadmap 2030 ① Must Do On-site solar power generation Support implementation of TTC Group projects for ① Off-site power plants ② Green tariffs ③ Renewable energy certificates achieving renewable energy usage rate of 50% Contribution to major
Slide 37: Battery WG
Battery WG Road Batteries: Carbon Neutrality Innovation Cycle We will take on a wide range of challenges from battery resource development to rebuilding, reusing, and recycling. ▶ Approach overview Contributing to the achievement of carbon neutrality by solving issues in the field of batteries, whic
Slide 38: Battery WG: Carbon Neutrality Roadmap 2030
Battery WG ▶Carbon Neutrality Roadmap 2030 Period of battery electric vehicle introduction Period of battery electric vehicle popularization Increase in Lithium production and refining capacity Resources Securement of resources (Lithium, Nickel, etc.) in anticipation of further demand growth Entranc
Slide 39: Hydrogen & Carbon Neutral Fuel WG
Hydrogen & Carbon Neutral Fuel WG Road Hydrogen: Path Toward Future Energy We will accelerate our efforts related to hydrogen and carbon neutral fuels, which are key for achieving carbon neutrality. ▶Approach overview Hydrogen and fuel cell utilization Corporate group logistics Carbon-neutral fuel C
Slide 40: Hydrogen & Carbon Neutral Fuel WG: Roadmap 2030
Hydrogen & Carbon Neutral Fuel WG ▶Carbon Neutrality Roadmap 2030 Model creation Implementation Creation of Expansion Toward becoming Feasibility Ports in U.S., U.K. a major global Fuel cell utilization study verification models Rollout to Japan, etc. player Public Global rollout Creation of models
Slide 41: Resource Circulation & 3R WG
Resource Circulation & 3R WG Road Circular Economy: Toyota Tsusho as a leading venous business expert We will deepen our resource circulation efforts under the banner of “reduce CO2, eliminate CO2, and create from CO2”. ▶Approach overview Conduct resource circulation from Capture and utilize CO2 a d
Slide 42: Resource Circulation & 3R WG: Roadmap 2030
Resource Circulation & 3R WG ▶Carbon Neutrality Roadmap 2030 ① Circular Economy Establishment ● Establish Expand scope going forward ➡ Commercialize in each domain preparation Innovation Center Expansion of factory waste Expansion of end-of-life battery recycling business Battery material recycling
Slide 43: Economy of Life WG
Economy of Life WG Road Economy of Life (EoL): For Smiles on the Faces of the Children of the Future We will work to reduce, absorb, and utilize GHG emissions in domains related to medicine, textiles, food, and housing. ▶Approach overview Food business renewal by Build a circular economy CCUS* throu
Slide 44: Economy of Life WG: Roadmap 2030
Economy of Life WG ▶Carbon Neutrality Roadmap 2030 Accumulation and sale of carbon credits Next-generation biomass business (Brazil) ① CCUS through Verification of agribusiness utilization of Proliferation of VEGi-Dream Kurihara-style exhaust CO2 Blue carbon* farming businesses combined with solar p
Slide 45: Promotion System
Promotion System President & CEO Executive Vice President Chief Officer Responsible for Chief Digital & Technology Officer Chief Digital & Technology Officer Next Mobility DX Acceleration Development Cooperation Department Department Task Force for Promoting Carbon External Stakeholders Neutrality G
Slide 46: Scopes for Knowing CO2 Emissions
3 Scopes for Knowing CO2 Emissions It is necessary to reduce CO2 emissions from all company Supply chain emissions volume = Scope 1 emissions volume activities, not only direct emissions from business activities, + Scope 2 emissions volume + Scope 3 emissions volume but also indirect emissions durin
Slide 47: Inquiries, Investor Relations Group
Inquiries Investor Relations Group E-mail [email protected] Tokyo Head Office TEL +81-3-4306-8201 ◆ This presentation contains “forward-looking statements” about the strategies and plans of Toyota Tsusho Corporation and its Group companies that are not historical facts. These forward-looki