Toyota Tsusho Corp. · TSE:8015
Toyota Tsusho — Investor Presentation (May 2019)
31 slides from Toyota Tsusho's investor presentation, May 8, 2019
Slide 1: Three Years Management Plan (FY2019 to FY2021)
Three Years Management Plan （FY2019 to FY2021） ） May 8, 2019 Toyota Tsusho Corporation 0
Slide 2: Contents
Contents 1. Priority Areas P. 3 (1) African Growth Strategy P. 4 (2) Next Mobility Strategy P. 12 (3) Renewable Energy Strategy P. 15 2. Globalization and Digitalization P. 18 3. Financial Policies & Quantitative Targets of FY2021 P. 23 4. Supplemental Materials P. 27
Slide 3: 1. Priority Areas
1. Priority Areas (1) African Growth Strategy (2) Next Mobility Strategy (3) Renewable Energy Strategy
Slide 4: African Growth Strategy: Six Pillars
(1) African Growth Strategy ~Strengthening TOYOTA Business through Six Pillars~ Strengthen TOYOTA business in Africa based on six pillars ① ② ③ Strengthen Product Build KD (Knock-Down) Optimize Supply Network Lineup Business ④ ⑤ ⑥ Strengthen Total Fleet Strengthen TOYOTA Expand Value Chain Managemen
Slide 5: Strengthen Product Lineup
(1) African Growth Strategy ~Six Pillars~ ①Strengthen Product Lineup Vastly strengthen compact car lineup, capitalizing on alliances with TOYOTA and SUZUKI ・ SUZUKI models supplied in India on OEM basis - Baleno - Vitara Brezza - Ciaz × Make in - Ertiga India Strengthen Pickup/SUV ・ Hilux, Land Crui
Slide 6: Build KD (Knock-Down) Business
(1) African Growth Strategy ~Six Pillars~ ②Build KD (Knock-Down) Business Expand small-scale assembly operations across Africa Flexibly determine assembly format, scale of production, and investment criteria in market size and government support in each country Assembly plant in Kenya 6
Slide 7: Optimize Supply Network
(1) African Growth Strategy ~Six Pillars~ ③Optimize Supply Network APF Europe Base Increase vehicle supply efficiency ・ Concentrate inventories in three locations PPF (Europe, Dubai, South Africa) ・ Shorten delivery times, strengthen body Dubai Base mounting and conversion APF Increase parts/compone
Slide 8: Strengthen Total Fleet Management (B2B)
(1) African Growth Strategy ~Six Pillars~ ④Strengthen Total Fleet Management (B2B) Roll out detailed services for fleet customers based on customer to maximize retention and capture new fleets TOYOTA fleet event (South Africa) Customized pickup for fleet customers Maintenance package for fleet custo
Slide 9: Strengthen TOYOTA Operations (B2C)
(1) African Growth Strategy ~Six Pillars~ ⑤Strengthen TOYOTA Operations (B2C) Provide suitable quality service to customers at every stage of vehicle ownership cycle ・Improve showrooms and Purchase facilities ・Improve websites ・New car ・Shorten vehicle delivery ・Used car lead times, etc. Operation I
Slide 10: Expand Value Chain
(1) African Growth Strategy ~Six Pillars~ ⑥Expand Value Chain Conduct branding activities to capture future new vehicle buyers through value chain expansion AUTOMARK dealership General-purpose parts/consumables stocked （Certified Toyota used vehicle sales） (Mainly manufactured by TOYOTA Group) AutoF
Slide 11: Reference: TICAD7
Reference: TICAD7 TICAD7 (The Seventh Tokyo International Conference on African Development) < Summary of discussion （Plan ）> ・ Economic transformation and improvements in business environment and institution through private investment and innovation ・ Promotion of resilient and sustainable society
Slide 12: Next Mobility Strategy: Action Plan
(2) Next Mobility Strategy ~Action Plan ~ Replacement 1 Respond to of materials accelerated migration Development to EVs Reuse /Production Vehicle lifecycle Next-generation services Use/Service 2 Create new business opportunities Energy management Build new business models that enable sustained grow
Slide 13: Respond to Accelerated Migration to EVs
(2) Next Mobility Strategy ①Respond to Accelerated Migration to EVs ~Replacement of Materials~ Replacement Growing demand for electric vehicles of materials In-house production of new technologies World’s biggest market In-house production of new CY2019 demand: 28 million vehicles (flat YoY) tec
Slide 14: Create New Business Opportunities
(2) Next Mobility Strategy ② Create New Business Opportunities ~Next-Generation Services & Energy Management~ Next-generation Expand mobility services domain services Build out infrastructure that will form foundation Over The Air of future mobility services e.g.) wireless delivery of software upda
Slide 15: Renewable Energy Strategy
(3) Renewable Energy Strategy Accelerate Global Expansion, Challenge into New Business Domains （Region） ① Accelerate global O expansion Expansion of New marketss v ・Accelerate initiatives in scale in the future e countries where use of r renewable energy is s undeveloped Existing markets e ・Accumula
Slide 16: Accelerate Global Expansion
(3) Renewable Energy Strategy ①Accelerate Global Expansion Wind Power Solar Power Under construction, Generating Promoting Development North and South Asia America ・Promoting ・Promoting Development ・Search for Development ・Search for opportunities opportunities Africa Accumulating knowledge on renew
Slide 17: Challenge into New Business Domains
(3) Renewable Energy Strategy ②Challenge into New Business Domains Establishment of new offshore Securing "stable and wind power law and inexpensive" power sources environmental improvement ・Create (power generation) Micro hydro power Offshore wind power generation business business Create new busin
Slide 18: 2. Globalization and Digitalization
2. Globalization and Digitalization
Slide 19: Promoting the Three Globalization
＜Globalization＞Promoting the Three Globalization Businesses Incorporate region-based market needs in business creation Especially strengthen activities in Africa, China, and India People, Organizations, Capability Systems Promotion of global Diversity & Inclusion Promotion of delegation of autho
Slide 20: Creating Framework for Digital Transformation
< ＜Digitalization＞ ＞ Creating Framework for Digital Transformation Customer value Internal reforms enhancement ① ③ Digitalize value chain Create new (increase operational added-value) businesses/innovations Digital transformation ② ④ Automate internal business Reform existing business models process
Slide 21: Company Vision: Be the Right ONE
Positioning Digitalization and Globalization in Our Management Strategy What it means to “Be the Right ONE”: Becoming a company in which each person in his or her own job, while cherishing one’s own values, Company Vision 「Be the Right ONE」 aims to be “(I am) the one and only (who can do it)”, and t
Slide 22: CSR Materiality for the Toyota Tsusho Group
CSR Materiality for the Toyota Tsusho Group (Material Issues) & Our Related Business Contribute to the transition to a low-carbon society by reducing Strive for the elimination of traffic casualties automotive, manufacturing, and energy plant construction CO2 and contribute to the creation of a safe
Slide 23: 3. Financial Policies & Quantitative Targets of FY2021
3. Financial Policies & Quantitative Targets of FY2021
Slide 24: Financial Policies: Cash Flow Management
Financial Polices ~Cash Flow Management~ (Unit: Billion yen) Cash flows over past three years (FY2016-18) Financial soundness Operating CF Investing Dividends FCF after Net D/E ratio: ≤ 1.0 CF dividends Risk assets/Risk buffer: < 1.0 ＋585.6 ＋52.7 ＋135.5 Investment policies -92.6 -410.2 Keep in
Slide 25: Profit Forecast, ROE, Dividends per Share
Profit Forecast, ROE, Cash dividends for the year per share 120 Profit attributable to 100 10％ owners of the 94 parents or more (Billion yen) 70 11.7 11.5 11.2 ROE 10.8 （％） 170.0 150.0 130.2 132.6 Dividend per share （Yen） ） 107.9 FY2016 FY2017 FY2018 FY2019 FY2021 （Plan） （Target） Along with the expe
Slide 26: Amount of Investment in Three Domains
Amount of Investment in Three Domains （Unit: Billion yen） Target Period︓FY2019〜FY2021 for three years Resources & Life & Mobility Environment Community 170〜 210〜 70〜 Amount of Amount of Amount of Investment Investment Investment Focus Areas Focus Areas Focus Areas ・ Automotive Sales & Services ・ Ren
Slide 27: 4. Supplementary Material
Be the Right ONE 4. Supplementary Material 27“ TOYOTA TSUSHO CORPORATION
Slide 28: Member of the Board
Member of the board After June, 2019 Ordinary General Meeting of Shareholders 7 Inside Directors Jun Karube Ichiro Kashitani Minoru Murata Hideki Yanase Yasuhiro Nagai Hiroshi Tominaga Hideyuki Iwamoto Chairman President & CEO Vice President Vice President CCO/CAO CSO/CIO CFO CTO Assistant to CTO 4
Slide 29: Change of Member of the Board
Change of Member of The Board FY2016 FY2017 FY2018 FY2019 Inside Director Outside Director 16 12 12 11 Number of Directors 社外取締役割合 18.8％ 25.0％ 33.3％ 36.4％ Ratio of Outside Directors 29
Slide 30: Basic Risk Management Policy
Basic Risk Management Policy ◆ Basic risk management policy 1) Keep total risk within risk-bearing capacity Risk Assets (RA) ≦ Risk Buffer (RB*1) 2) Earn returns commensurate with risk RVA*2＞0（after-tax ordinary income - RA×10%) *1 :RB＝Shareholders' equity＋Other components of capital ＋ Reserve for d
Slide 31: Inquiries: Investor Relations Group
Inquiries: Investor Relations Group E-mail ttc_ir@pp.toyota-tsusho.com Tokyo Head Office TEL +81-3-4306-8201 FAX +81-3-4306-8818 ◆ This presentation contains “forward-looking statements” about the strategies and plans of Toyota Tsusho Corporation and its Group companies that are not historical facts