Outline of Consolidated Results for the First Half of FY2014 (Year ending March 31, 2015) November 4, 2014

Transcription

1 Outline of Consolidated Results for the First Half of FY2014 (Year ending March 31, 2015) November 4, 2014

2 Contents 1. Outline of Consolidated Results for FY2014 1H P Earnings Forecast for the Fiscal Year Ending March 2015 P Status of Investment and Financing Projects P Resource Projects P Investment and Financing Management System P Supplementary Materials P. 27 1

3 1. Outline of Consolidated Results for FY2014 1H

4 Consolidated Results for First Half of FY2014 (April September) (Billion yen) Year-on-year increase in sales, decrease in income Net sales: Increase mainly in the Machinery, Energy & Project Division due to factors including higher petroleum product sales volume and the unification of accounting period of some consolidated subsidiaries. Net income: decreased despite improvement in extraordinary income because ordinary income decreased FY2013 1H results 2Q 1Q FY2014 1H results +17% , , , % % % , Net sales Operating income Ordinary income Net income 3

5 Positive and Negative Factors behind YoY Change in Operating Income (Billion yen) Toyota Motor s car production volume FY2013 1H 4.42 million units Positive factor Negative factor Demand/ sales volume +2.5 Accounting period unification +1.1 Forex effect from yen depreciation +0.9 Newly consolidated subsidiaries +0.2 Nonrecurring items -0.9 Car production volume -1.6 CFAO (PPA) -5.5 Unit car sales Toyota Motor s car production volume -1.9 FY2014 1H 4.49 million units Other 74.3 FY2013 1H Results FY2014 1H Results 4

6 Balance Sheets (Billion yen) Assets March 31, 2014 Sept. 30, 2014 (Total: 4,072.7) (Total: 4,344.9) Current assets 2, ,747.1 Increase in total assets: Increase in notes and accounts receivable trade: Inventories: Investment securities: PPE/Intangibles Increase in total liabilities: Liabilities Investments/Other (Total: 2,916.6) (Total: 3,165.2) Interest-bearing debt: Notes and accounts payable trade: Current liabilities 1, ,086.5 Increase in net assets: Net Assets Long-term liabilities Net assets 1, , ,179.6 Increase in net worth: Retained earnings: Net unrealized gains on available- for-sale securities, net of taxes: Other reductions: -7.2 Minority interests: -6.9 (Net worth: 972.7) (Net worth: 1,003.4) 5

7 Progress in Executing Investment (Billion yen) Investment in FY2014 1H Main Projects Amount Investment Funded Enhancement of automotive-related facilities Existing dealer capital investment 1Q Q 15.0 Automotive Total 31.9 Plan (Two years) Approved but not yet funded Establishment of new metal processing base Dealership expansions Solar & wind power generation business in Total 19.2 Investment Nonautomotive Funded Japan (Eurus) Gas development projects in Australia and Canada 1Q Q 32.4 Total 65.3 Approved but not yet funded TOMEN ELECTRONICS (TOB) U.S. gas-fired power generation Total Total Funded 97.1 Unfunded Total

8 2. Earnings Forecast for the Fiscal Year Ending March 2015

9 Assumptions of Forecast for FY2014 (Year Ending March 2015) Benchmark Exchange Rate Toyota Motor's automobile production Forecast for Full Fiscal Year USD 1 = JPY 104 EUR 1 = JPY million units 8

10 Variance with Initial Forecast for FY2014 (Billion yen) 2H forecast YoY change Variance +11% , , , , % % % % FY2013 results +4% +3.0 FY2014 initial forecast -5% H result FY2014 2H forecast + 1H results 4, Net sales Operating income Ordinary income Net income 9

11 FY2014 Operating Income Forecast by Division (vs. Initial Forecast) (Billion yen) Metals Division Global Parts & Logistics Division Automotive Division YoY change Variance +5% % % -10% % % Decrease in car production in Thailand Decrease in car production in Thailand Decrease in sales volume at dealers in Africa and Oceania Decrease in parent company sales volume 10

12 FY2014 Operating Income Forecast by Division (vs. Initial Forecast) (Billion yen) Machinery, Energy & Project Division Chemicals & Electronics Division Food & Agribusiness Division Consumer Products & Services Division YoY change Variance +1% % % % % % % In line with initial forecast Increase in electronics sales volume, etc. Decrease in grain sales volume Decrease in prices Decrease in trading volume of textilerelated products 11

13 Dividends (Unit: yen/share) Dividend Policy Aiming to achieve a consolidated dividend payout ratio of 20% 25% <Cash dividends per share> (Unit: yen/share) Payout ratio 21% 21% 22% 23% 24% 25% 26% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 (Previous forecast) (New forecast) 12

14 3. Status of Investment and Financing Projects

15 Achieving Our Long-term Business Plan Further deepen our business strengths -Proactive investment - Life & Community Earth & Resources Expand business fields Mobility Business innovation Further expand automotive value chain 14

16 Progress in Expanding Business Domains Expanding our automotive supply chain in both production and the aftermarket Markets in major ASEAN countries will grow to JPY billion May 2014 Acquisition Acquisition of Borneo Technical (Malaysia/Thailand), which are aftermarket auto-parts and industrial supplies distributors (Malaysia: 19 sales offices; Thailand: 11 sales offices) 28,000 customer stores Enables access to the vehicles of all manufacturers as well as Toyota Motor Acquired an official dealer for Japanese companies such as DENSO and Yuasa Over two years, targeting a 30% increase in current sales of about 20 billion by expanding sales channels for our C-Works private brand Further expansion of our automotive value chain from production to sales 15

17 Progress in Business Innovation (New Business Creation) Participation in project for developing lithium resources Begin production from December 2014 (planned) Demand for stable supply of lithium resources is expected to grow Contribute to spread of next-generation automobiles and mobile devices Target upstream supply chain structure for lithium Material supply chains Materials (lithium carbonate) Energy supply Materials (batteries, motors, etc.) Energy management Charging stations ITS (transport infrastructure projects) Car sharing (apartment complexes, tourist areas, etc.) EV/PHV mobility Reuse (Details on next page) Investment in Scholz Smart cities Recycle Participation in commercial hydrogen station business for fuel cell vehicles Steadily targeting next-generation automobiles First for a general trading company Plan to establish two locations in Japan in January 2015 New business that addresses shift from gasoline to new hydrogen fuel 16 16

18 Recycling Business Development 1. Status of alliance with Scholz AG (investment) Scholz s existing lenders have agreed to provide continued support The European Commission has given its approval FY2014 Acquired 39.9% stake at end of June 2014 Strengthen governance + Execute restructuring plan Acquired European recycling technology and systems, expansion into other Asian countries 2. Expansion of automotive recycling business in China Currently one location in Beijing build dismantling plants in key regions of China over the coming 3-5 years Steady initiatives to develop our integrated recycling yard business globally 17

19 Tender Offer for Shares of TOMEN ELECTRONICS CORPORATION Tender offer results (August 22, 2014) Before tender offer: 40.16% After tender offer: 62.97% *Percentage of voting rights We decided to make TOMEN ELECTRONICS CORPORATION a wholly owned subsidiary to become a global player in the rapidly expanding market for electronic components. Our objectives are to accelerate management to strengthen the foundation of the TTC Group while enhancing our competitive advantages and expanding sales. The matter will be considered at the Extraordinary General Meeting of Shareholders and Shareholder Class Meetings in November 18

20 Power Generation and Renewable Energy Business Development Toyokoro (Hokkaido) 22 Akita Port 18 Yabuki Nakashima (Fukushima) 8 Kihoku (Kagoshima) 6 Tenmei (Miyagi Fukushima) 14 Uruguay 42 Italy 31 No impact for projects under construction/pre-construction in Japan because the transmission is fixed (Unit: MW) Total generation capacity is a gross figure End of March 2014 FY2014 operation Operation starting from FY2015 Our share in total generation capacity Renewable energy 2, ,633 Gas, coal, other 3, ,545 4,788 Total generation capacity 5, ,793 7,421 Wind power will remain a key renewable energy source and we will consider future development possibilities 19

21 CFAO S.A. and Business Development in Africa Automotive, Equipment & Services Mid- and long-term goals Strengthen relationship with Toyota in West Africa Represent the Volkswagen brand in new business areas (brand restructuring) Expand business domains by handling used cars, repair parts and sales financing Review prospective countries for sales, determine new core countries and strengthen sales there Europharma Mid- and long-term goals Expand countries of operation and customers, including with M&A Develop new business partners including major Japanese companies FMCG Industries & Distribution Mid- and long-term goals Expand in retail through alliance with Carrefour S.A. Develop new business partners including major Japanese companies * Concerning the Ebola hemorrhagic fever, the three countries of Guinea, Liberia and Sierra Leone made up 0.7% of total sales in fiscal Therefore, the impact on results is limited. Develop business in each region of Africa with a long-term perspective 20

22 4. Resource Projects

23 Gas Projects Project participation timing Wheatland (CBM) <Participation> <Current> Bass Gas ATP651P (CBM) Otway Exploration phase Development phase Production phase Key points in project participation *Exploration phase projects are approved up to only exploratory drilling. The feasibility study is reexamined and assessed when moving to the development phase. Reliability of concession reserves and production Reliability of commercialization Appropriate risk-reward ratio Prudent approach to exploration projects and emphasis on development and production projects 22

24 (Reference) Energy Resource Interests Class Project name Location Our share Status Operator Comments Wheatland CBM(*)Project Canada (Alberta) 32.5% Production Encana (67.5%) Production began in 2001 We began participating in 2012 ATP651P CBM Project Australia (Queensland) 15% Development BG Group (62.6%) Plan to sell all gas produced to the BG Group LNG project via pipeline Production planning in progress during FY2014 Gas Bass Gas Project Australia (Victoria) 11.25% Production Origin (42.5%) Sales from 2006, mainly in Victoria This gas field meets 5% of gas demand in Southeastern Australia Otway Gas Project Australia (Victoria) 5% Production Origin (67.2%) Sales from 2007, mainly in Victoria This gas field meets 10% of gas demand in Southeastern Australia Coal Integra Oakbridge Australia (NSW) 15% On hold Vale (61.2%) Profitability is under inspection Australia (NSW) 5% Production Glencore (78%) Production began in 1994 *Coal bed methane gas (CBM): methane gas generated during the coal creation process and trapped in the coal bed, with the same applications as conventional natural gas 23

25 Status of Other Resource Interests Resource Location Our share Status Partner Comments Iodine Chile (Santiago) 25.5% Production ACF Minera S.A. (74.5%) We have been participating since 2010 Production began in 2012 Lithium Argentina (Jujuy) 25% Development Orocobre (66.5%) We have been participating since 2012 Production began in 2014 Targeting annual production of 16,400 tons Rare earths India (Orissa) - Preparing to conclude contract Indian Rare Earths Limited Not a concession, but the right to extract a mix of rare earth chlorides Plan mainly to produce light rare earths (cerium, lanthanum, neodymium) Focusing where we can make the most of our strengths 24

26 5. Investment and Financing Management System

27 Our Investment Process PLAN DO Product divisions formulate growth strategies Investment plans formulated Investment projects proposed Product divisions discuss priorities Reinvest profits Restructure or withdraw Implement review of past investments P Product divisions D Administrative Division Strategic compatibility of investment project confirmed Senior management prioritizes resource allocation Investment project portfolio determined Investment Strategy Meeting Projects checked, FS determined ACTION Investment & monitoring Restructuring/withdrawal decision for realization of optimum portfolio Monitoring system A C CHECK Qualitative & quantitative presentation by product divisions Individual projects discussed in light of investment and financing standards Investment and Loan Meeting Investment and Loan Committee Board of Directors A system that supports, checks, and balances the business cycle and new investment 26

28 6. Supplementary Materials

29 Supplementary Materials 1-1: Net Sales and Operating Income by Division (Year-on-Year Comparison) (Billion yen) Net Sales Operating Income +9% % % % % Forex factors FY2013 1H results FY2014 1H results +14% % % % % % % +3.7 Forex factors FY2013 1H results +19% +0.4 FY2014 1H results -33% -0.9 Metals Global Parts & Logistics Division Automotive Machinery, Energy & Project Chemicals & Electronics Food & Agribusiness Consumer Products & Services Metals Global Parts & Logistics Division Automotive Machinery, Energy & Project Chemicals & Electronics Food & Agribusiness Consumer Products & Services *Percentage change calculations above do not include the effect of foreign currency translation. *Effective April 1, 2014, the name of the Global Production Parts & Logistics Division was changed to the Global Parts & Logistics Division. 28

30 Supplementary Materials 1-2: Net Sales and Operating Income by Division (Year-on-Year Comparison) (Billion yen) Metals Division Global Parts & Logistics Division +9% % +3% -20% 13.7 Forex factors FY2013 1H results Net sales FY2014 2Q FY2014 1Q Operating income Net sales Operating income -2.5 Net sales & Operating income Accounting period unification and increase in car production in North America, etc. Net sales Accounting period unification (ca ) Operating income Impact from offsetting prior year foreign exchange losses included in non-operating category Decrease in car production in Thailand 29

31 Supplementary Materials 1-3: Net Sales and Operating Income by Division (Year-on-Year Comparison) (Billion yen) +1% Automotive Division +3.8 Machinery, Energy & Project Division +46% -26% 1, % Net sales Operating income Net sales Operating income -0.5 Net sales Accounting period unification (ca ) Operating income Decrease in sales volume at dealers in Africa and Oceania Net sales Increase in petroleum product sales volume (ca ) Increase in machinery-related (ca. +9.0) Operating income Decrease in earnings at automotive-related facilities, etc. 30

32 Supplementary Materials 1-4: Net Sales and Operating Income by Division (Year-on-Year Comparison) (Billion yen) Chemicals & Electronics Division Food & Agribusiness Division % Net sales % Operating income % +19% Net sales Operating income +0.4 Net sales & Operating income Increase due to accounting period unification and newly consolidated subsidiaries Net sales Increase in grain trading overseas, etc. Operating income Increase in beverage business sales in Africa, etc. 31

33 Supplementary Materials 1-5: Net Sales and Operating Income by Division (Year-on-Year Comparison) (Billion yen) Consumer Products & Services Division -10% -33% Net sales Operating income 0.5 Net sales & Operating income Decrease in housing material and textilerelated trading volume, etc. 32

34 Inquiries: Investor Relation Group Tokyo TEL FAX 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-looking statements are subject to a number of risks and uncertainties that could cause the Group s actual or implied operating environment, performance, results, financial position, etc. to differ materially from the information presented here, which is based on assumptions and beliefs in light of information currently available to the management at the time of publication. The Group assumes no obligation to update or correct these forward-looking statements. This presentation is not intended to solicit, offer, sell or market securities, and should not be the sole basis for making investment and other decisions. 33