Long-Term Business Plan for

the Fiscal Year Ending March 2020

May 1, 2015

© 2013 Stable performance as a result of increased automobile production

37.5

45.7

58.2*

67.5

40.2

27.3

47.1

66.2 67.4

73.0

67.5 70.0

6.88

7.59 8.12

8.69

7.10 7.28 7.34 7.53

8.56 8.95 8.95 9.12

当期純利益（当社計画値含む）

トヨタ年間生産台数（当社推測値含む）

1

（万台）

（億円） 140.0

Historical Overview of Net Income

*Excludes the JPY 19.0 billion tax reduction effect due to the merger. Fiscal years to March 31

2005 2006 2007 2008 2009 2010 2011 2012 (Net income before

amortization of goodwill)

Toyota Motor’s annual car production volume (Million units; includes Toyota Tsusho estimates)

Net income (Billion yen; includes Toyota Tsusho estimates)

2013 2014 2015 2016 2020

Plan Target

© 2013 2

Initiatives to achieve the long-term business plan

Strengthen the earnings

foundation of the automotive

business

・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

Build businesses in which we

have invested and expand

earnings in them

Create a new generation of

businesses

・Rigorously invest in areas that

leverage our strengths and

businesses that are highly

profitable

Issues and Initiatives to Achieve Annual and Long-Term Plans

Issues Initiative Policies

© 2013

140.0

3

70.0

Returns on

new investments

Amortization of

goodwill

completed

(Tomen, Eurus,

etc.)

Amortization of

goodwill

suspended

(CFAO, etc.)

Existing business

growth

Monetize prior

investments

Fiscal Year Ending March 2020: Multistage

Net Income Targets

March 2020 Target

March 2016 Plan

+20.0

+20.0

+20.0

(Net income before

amortization of

goodwill) +10.0

(Billion yen)

© 2013

March 2014

Results

March 2015

Results

March 2016

Plan

March 2020

Target

Net sales 7,743.2 8,663.4 8,400.0 9,500.0

PL Operating income 161.3 169.4 158.0 270.0

Net income 73.0 67.5 70.0 140.0

Total assets 4,072.7 4,533.6 4,900.0 6,500.0

Shareholders’ equity 799.8 844.4 900.0 1,200.0

Comprehensive income 172.9 281.0 – –

Net assets 1,156.0 1,304.4 1,370.0 1,900.0

Net interest-bearing

debt 1,088.9 1,233.6 1,300.0 1,600.0

Net DER 1.1 1.1 1.1 ≥1.5 times

New investments 146.1 208.8 Invest within the scope

of operating cash flow

4

BS

Emphasize sound finances

Quantitative Targets of Long-Term Business Plan (Billion yen)

Fin

an

cia

l

Ben

ch

mark

s

Investments

(Net income before amortization

of goodwill)

© 2013 5

Americas & Europe Asia Pacific & China Emerging Countries

& Africa

Automobile

Production

Automobile

Sales

Implement production and sales strategies for each region

Dep

loy T

oyo

ta G

rou

p C

olle

ctiv

e E

xp

erie

nc

e O

uts

ide

To

yo

ta G

rou

p

・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

・Expand OEM use

・Enhance sales network

・Create individual demand

・Pre-owned cars and sales

finance

Strengthen the Earnings Foundation of the Automotive Business

・Enhance sales network

in main countries

・Scrap and build

・Deal in commercial

components

* Circle size corresponds to the extent of business expansion

・Raise management

efficiency

・Popularize brands

© 2013 6

Division Business Areas Future Initiatives

Metals ・Rare earths

・Lithium

・Increasing productivity from stable operations

・Expand sales channels

Global Parts & Logistics ・Techno-park

・Aftermarket component sales

・Strengthen Tier 1 and Tier 2 relationships

・Sell more materials and form local relationships

Automotive

・Pre-owned cars & sales finance

・Hydrogen & electric vehicle

businesses

・Alliances with new car dealers

・Create framework for popularizing brands

Machinery, Energy &

Project

・Gas business

・Power generation business

・Rigorous control of development schedule

・Strengthen relationships with strong partners

Chemicals & Electronics ・Iodine

・Superabsorbent polymers (SAP) ・Secure sales routes for unique products

Food & Agribusiness ・Wheat & sugar businesses

・Development of businesses from upstream to

downstream

・Expand sales channels

Consumer Products &

Services ・Hospital & nursing services ・Operate in peripheral service businesses

Implement initiatives required for rapid returns

Build Businesses in Which We Have Invested and Expand Earnings in Them – Successfully Monetize the Businesses We Launch

© 2013 7

Division Business Area Future Initiatives

Machinery, Energy &

Project ・Renewable energy

・Portfolio balanced among Japan, Europe

and the USA

・Diversify generation methods (solar,

biomass, geothermal, offshore wind, etc.)

Chemicals &

Electronics

・Electronics

・Pharmaceuticals business

・Exercise Group synergies

・Expand business in which Toyota Tsusho

is strong, incl. automotive

・Increase products handled by building

ties with manufacturers and constructing

networks

Food & Agribusiness ・Grain business

・Beverage business

・Build value chains from upstream to

downstream

・Strengthen relationships and

development with strong partners

Consumer Products &

Services

・Insurance package services

・Textiles

・Operate overseas, and increase insurance

products handled

・Review purchasing and sales routes, and

create brand strategies

Leverage our strengths to generate additional growth

Prior Investment Projects: Growth Areas with Projected Earnings Growth

© 2013 8

Selectively invest in growth areas and

highly profitable businesses by leveraging our strengths

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

Policies for New Investments

© 2013 9

Core Next Core

Challenge

Market Growth Potential

Building the next

core earnings

drivers

Build next core

earnings drivers

with awareness of

business model

lifecycle

Business Model Lifecycle

Scale

of

earn

ing

s

New Investment Areas:

Initiatives to Build Next Core Earnings Drivers

Current core

earnings drivers

Phase 2 core

earnings drivers

Phase 3 core

earnings drivers

Temporal axis

Phase 2 core earnings drivers: businesses with potential for

good results and growth Phase 3 core earnings drivers: businesses that exceed each

division’s parameters from a long-term perspective

Strength: Highly experienced

Growth potential: Sustain and ensure

growth in existing businesses

Strength: Highly experienced

Growth potential: Market share gains, etc.

・Africa (Groupwide)

・Power generation business (Incl. renewable energy)

・Electronics business expansion

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

(Automotive-related businesses)

Ou

r Stre

ng

ths

© 2013

April 2015: Africa designated as our fifth key region

Throughout Africa, develop businesses that demonstrate the Toyota Tsusho Group’s strengths 10

Next Core Earnings Drivers 1: Build Our Presence in Africa

・ Develop retail business through Carrefour

・YAMAHA two-wheeler assembly & sales

・ L'Oréal production & sales

Rely on CFAO to expand

Toyota automobile sales

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

Automobile

CKD production

Automobile production

Rely on CFAO to expand

in the pharmaceuticals business

Toyota

Tsusho

Support &

Cooperation

Create

Synergy

© 2013

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

North America

● Base: TTP (USA)

N. America gas-fired CCGT 3,455MW (gross）

Asia Pacific

● Base: TPS (Singapore)

1,966MW in Asian countries (gross)

・Regional expansion of the renewable energy

business in Japan and overseas

・Transmission business, surplus power storage and

sales (hydrogen, storage batteries, etc.)

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

11

● 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

ENE-VISION: In-house & biomass power generation

Thermal Power Generation Business Renewable Energy

Next Core Earnings Drivers 2: Develop a Unique Power Generation Business

Investigate potential of new business areas

© 2013

12

Grain Strategy Component

Acquired stable upstream procurement and cost competitiveness.

Downstream linkage through value chain (primarily in Asia).

Strengths & Issues in Brazil

● 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

Strengths of NovaAgri & Toyota Tsusho

Earth & Resources Collection/

Transport/

Storage Initial processing Shipment (Export)

Trading Marine transport

Import (Logistics) Initial processing Livestock/

Secondary

processing

Businesses in Supply Regions Businesses in Consumer Regions

Attractive market Attractive market Now a major strategic market

for Toyota Tsusho

Life & Community

Our Grain Strategy

3rd Step: Leverage the resource procurement capabilities we acquired to further

strengthen sales capabilities

Challenge Project: Acquisition of NovaAgri

2nd Step: ensure raw material procurement for this project 1st Step: Participate in downstream businesses

● 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

13

Policies for New Investments

© 2013 14

Selectively invest in growth areas and

highly profitable businesses by leveraging our strengths

Policies for New Investments

• 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)

© 2013 15

Rigorously Manage the Investment Cycle

Senior managers and chief

division officers discuss

strategic significance and

priorities

2. Investment Strategy

Meeting (Monthly)

Set and approve division

policy based on Group policy

Manage the pipeline

1. Policy Committee

(March)

Business monitoring system

Restructuring & exit

decisions

Adds rigor to exit rules

5. Portfolio Meeting

(October)

Discusses investment and

loan proposals

3. Investment and Loan

Meeting (Weekly)

4. Decision

(Monthly)

Go

Go Revamp

Exit

Strengthening governance with

outside directors

Drop

© 2013 16

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

RVA =

Ordinary income x 60% – RA x risk cost

Verifies whether we are generating

sufficient earnings from risks taken

TVA =

(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

We use and rigorously apply quantitative benchmarks

Risk Adjusted Value Added: RVA＞0 Capital Efficiency: TVA＞0

Quantitative Assessment Criteria for New Loans and Investments: Risk Adjusted Value

Added (RVA) and Capital Efficiency Indicator (TVA)

© 2013

Red (Insolvency)

Yellow (Loss exceeds

-50%)

Exit

Annual fixed benchmark (Once annually)

New benchmark

Evaluate after two years

“Under Scrutiny” status (Support)

17

Consolidated Subsidiaries and Major Affiliates

Continue

Clarifying Benchmarks for Supporting or

Exiting Businesses

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

Balance sheet benchmark (Monthly)

18

Key Performance Indicators

© 2013 19

Long-term business plan target

(Year ending March 31, 2020)

ROE：10% to 13%

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

Basic Policy for ROE

© 2013 20

◆ Basic Risk Asset Management Policy

1) Keep total risk within a sustainable range RA≦RB

2) Secure earnings to justify risk taken RVA*＞0

(Ordinary income after tax – RA×10%)

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% ）

※１:RVA（Risk Adjusted Value Added)

Basic Risk Asset Management Policy

We target sound, strong finances that enable future investments by

reviewing existing investments and improving capital efficiency and the

risk profitability of businesses

March 31, 2015 = Preliminary basis =

21

Dividends

© 2013

We will generate stable, sustained shareholder returns with a target

consolidated payout ratio of 25% calculated using net income before

amortization of goodwill

28

42 44

50

◆

◆

◆

◆

◆

21% 22%

23% 24%

29%

◆ 56

31%

62

22

◆

19% 20%

New Divided Policy

Dividend Policy

Cash dividends per share (Yen)

Dividend payout ratio

Payout ratio (using earnings before amortization

of goodwill)

March

2012

March

2013 March

2014

March

2015

March

2016

Planned

March

2011

23

Personnel Development

© 2013 24

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

D&I

Global D&I

Outside

Directors

Personnel Development to Achieve Global 2020 Vision

Specific Initiatives

• Assign to companies throughout the Group to acquire firsthand

competencies

• Give all employees overseas assignments within their first 7 years

• Form Diversity Task Force in each department

• Proposals for issues including work from home, shorter hours,

maternity leave and nursing leave

• Hire and employ elite foreign employees with business creation

and senior management skills

• Actively promote foreign employees

• 3 outside directors, incl. 2 women, to vitalize the Board of Directors

• Introduction of governance code to expand functions of outside

directors

© 2013 25

Inquiries:

Investor Relations Group

E-mail ttc_ir@pp.toyota-tsusho.com

TEL +81-3-4306-8201

FAX +81-3-4306-8818

◆ 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 forward-

looking 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 forward-

looking 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.