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Activities in Africa & Kenya

Naoki TAKEUCHIExecutive Officer

February 24, 2016

TICADセミナーシリーズ第5回 「ケニアおよび周辺国のインフラ開発とビジネス機会」

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Company Profile

Head Office: Tokyo and Nagoya, Japan Established: July 1, 1948Subsidiaries: 148 Domestic

825 OverseasSales: JPY 8.663 Trillion(USD 72,195 million) (consolidated)

Employees: 53,241 (consolidated)

Main stockholders: Toyota Motor Corporation (21.7%) etc.(FYE March 2015)

General Trading Company of the Toyota Group

■Line of BusinessLines of Business

Consumer Products & Services

Food & Agribusiness

Chemicals & Electronics

Machinery, Energy & ProjectAutomotiveGlobal Parts

& LogisticsMetals

Company Profile

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Nonautomotive

Automotive

Nonautomotive

Automotive

2010 2020

TRY1

Realizing a balanced 1:1:1business portfolio across threeoperating fields

2015Mobility

Life and Community

Earth and Resources

MobilityA Business field that contributes to theevolution of next-generation automobiles

Life and CommunityA Business field that contributes to further improvements in living conditions

Earth and ResourcesA Business field that helps solve global issues

•Increase the number of nations and regions where we are a market leader

•Foster businesses where we can assert market leadership

•Assert leadership as a fulfilling place to work

Global 2020 Vision

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Toyota Tsusho’s Regional StrategyGlobal network spanning more than 90 countries

and more than 900 group companies

AfricaThe “5th Platform”

Europe EastAsia

SE Asia,Australia

North and Central

America

• We have built locally integrated operations in four regions outside Japan: Southeast Asia and Australia; East Asia; North and Central America; and Europe

• We envision Africa as a fifth region for building a large, locally integrated presence• We will continue to coordinate our operations in emerging economies and resource-rich nations in

other regions from headquarters in Japan

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1900 1950

1922 Started dealing in cotton wool in Egypt1933 Opened Alexandria (Egypt) office

1964 Started exporting completely built units of Japanese automobiles1991 First investment in Africa (Angolan automobile distributor)

2000

2000 Established African operations base in South Africa

2001 Acquired automobile distribution operations from Lonrho of United Kingdom

2010

2012 Signed comprehensiveMOU with government of Kenya2012 Purchased CFAO sharesAcceleration of

automobile-related investment in Africa

Expansion andNew Businesses

Toyota Tsusho’s History in Africa

At the dawn(Trading in automobiles)

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Bringing CFAO into Group and Building Alliance

Joint growth through coordinated action

Toward Becoming Leading Corporate Group in Africa

Operations in: 35 countries53 of 54

countries 30 countries

Number ofemployees:

12,000 2,60014,600

Brands carried Promotion of multi-brandstrategy covering more

than 20 brands

Wide-ranging operations, including upstream and downstream, centered

on brands of the Toyota Group

20+

Value ChainExpansion

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Order for Kenya’s largest geothermal power projectActivities in Egypt More than 80 years of experience

Power plants: 31 orders (approx. JPY 200 billion)

Supplying offshore jack-uprigs for natural gas exploration and developing gas fields

Won order with Hyundai Engineering from Kenya Electric Generating Company for geothermal power project in Kenya’s Olkaria region

Construction of two 140,000 kW geothermal power plants Securing a steady source of power for Kenya, which

hitherto has depended on hydropower (which is vulnerable to droughts) for approx. 44% of its power needs, and contributing to environmental preservation through the use of renewable energy

“Signing of Comprehensive MOU with Republic of Kenya” (Aug. 2012 press release)Collaboration in the automobile, power and energy, petroleum and mineral resource, environmental infrastructure, and agricultural industrialization fields,in order to achieve Kenya's national vision

Activities in Africa (Infrastructure Business)

Olkaria IV Geothermal Power Plant (140MW)

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Company Establishment TTC share Employees Business Area

Toyota Tsusho East Africa Ltd.

Toyota TsushoFertilizer Africa

564(Jan, 2015)

10(Jan, 2015)

54(Jan, 2015)

47(Jan 2015)

Apr, 1999Franchise for

Toyota, Hinoand Yamaha

Apr, 2009

Dec, 2010

Jan, 2013

Finance for New &

Used Vehicle

Used Car 3S

Investment, Project& General Trading

100%

100%

97.3%

100%Regional management

10(Dec 2015)

Jun, 2015 Productionof Fertilizer100%*Production from

Jun2016

Toyota Tsusho Group in Kenya

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Tanzania

S. Sudan

Kenya

GEOTHERMAL POWER PLANT

Crude Oil Pipeline

Agriculture Mechanization NPK Fertilizer Plant

Uganda

Ethiopia

DRC

Mombasa Port Development

Desalination Water Supply and Sewage Service

Life & Community

Activities in Kenya①Infrastructure & Agricultural Business

Comprehensive MOU with Republic of Kenya

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New CarsRetailFinance

New-carValue Chain

Body& Paint

GenuineParts

Service

Apply Successes to Western and Southeastern

Africa

Tsusho Capital Kenya (TCAP)

General PartsAccessories

Second-brand Service Network

Body &Paint

RetailFinance

Used-carValue Chain

Kenyan Market

New vehicles10%

Used Vehicles90%

TTC’s Automotive Value ChainCreating Used-car sales and aftersales network

Kisumu

Lodowar

NAIROBI

Nyeri

Nanyuki Meru

NakuruKericho

Eldoret

Kitale

Mombasa

Lamu(2014) (2018)10 ⇒ 50

Service Network in Kenya

Toyotsu Auto Mart Kenya (TAMK)

Activities in Kenya②Automotive Business

1111

Toyota Kenya AcademyIn-house Training & open to Public

Central Parts Depot (CPD)for Toyota, HINO & YAMAHA

HINO 3STruck & Bus Sales, Parts, Service

Toyotsu Auto Mart Kenya(TAMK) Pre-owned Toyota

Sales, Parts and Service YTOYOTSU AUTOMART KENYA

Vehicle Logistic Center (VLC)Vehicle Storage, Accessory fitment

Toyota Kenya AcademyIn-house Training & open to Public

Activities in Kenya③Toyota Kenya Business Park

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①Activities with Hino Trucks/Buses

• Expand aftersales network along the Northern Corridor

• Introduce safety drive trainings to the drivers

• Improve safety by introducing drive recording devices

②New Activities to be considered

• Improve efficiency of public bus transportation by introducing timetable based on operation

• Participate in mass transportation system such as BRT/LRT to ease road congestion

*By JICA Master Plan Data

S. Sudan Ethiopia

SomaliaKenyaUganda

Rwanda

BurundiTanzania

Kampala

Nairobi

MombasaNorthern Corridor

Activities in Kenya④Development along Northern Corridor

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“Toyota Tsusho CSV Africa Pte. Ltd. ”Established in 2014

Social Venture Development Fund

● Investment Project No. 1: Zambia Agricultural Business

● Investment Project No. 2: Leather Goods Sewing Business in Ethiopia

Producing Hiroki Addis leather goods

• In cooperation with Amatheon Agri Zambia Ltd.

• Land clearing and cultivation, farming mechanization, provision of irrigation facilities, post-harvest transportation

Supporting Human Resources Development

Step 2: Establish similar facilitiesin Southern and Western Africa

“Toyota Kenya Academy”

Plantation in Zambia

Social Contribution Activities in Africa

Cultivating automotive-related (motorcycles, cars, trucks) service technicians

Cultivating construction, agricultural and industrial machinery technicians (including technicians from other companies)

Offering management and leadership development Providing training open to the public through

collaboration with JICA and local universities, thus contributing to regional society

• In cooperation with Hiroki Addis Manufacturing S.C.

• Support for acquisition of sewing skills

• Support for organizational management

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