Outline of Consolidated Results for the First Half of FY2015 (Year ending March 31, 2016) November 4, 2015

Transcription

1 Outline of Consolidated for the First Half of FY2015 (Year ending March 31, 2016) November 4, 2015

2 Contents 1. Outline of Consolidated for FY2015 1H P Revision of Full-Year Consolidated Forecast for FY2015 P Achieving Long-Term Business Plan Targets P Supplementary Materials P. 26 1

3 1. Outline of Consolidated for FY2015 1H

4 Consolidated for First Half of FY2015-2% , , , % 金属 Metals グローバル部品 ロジスティクス Global Parts & Logistics 自動車 Automotive 機械 エネルギー プラントプロジェクト Machinery, Energy & Project 化学品 エレクトロニクス Chemicals & Electronics 食料 Food & Agribusiness 生活 Consumer Products & Services Net sales: Sales decreased mainly in the Machinery, Energy & Project Division and the Metals Division due to lower market value and the effect of fiscal period alignment in the previous fiscal year Operating income: -7.9 Operating income would have increased slightly absent the effect of fiscal period alignment in the previous fiscal year, foreign exchange translation effect and the non-recurring loss on valuation of inventories FY /3 1H 上期実績 Net sales FY2015 1H 2016/3 上期実績 FY /3 1H 上期実績 FY2015 1H 2016/3 上期実績 Operating income 3

5 Positive and Negative Factors behind YoY Change in Operating Income YoY Reaction Non-recurring Factors Forex Translation Effect +3.6 Demand/ Trading Volume, Other YoY Reaction Fiscal period alignment -2.5 Non-recurring Factors Loss on valuation of inventories -6.2 Allowance for doubtful receivables in Venezuela -2.1 Aluminum premium -1.8 Forex Translation Effect Forex effect +5.6 Offsetting forex losses -2.0 Demand/Trading Volume, Other Demand/trading volume +5.0 Automobile sales -1.6 Automobile production -0.4 FY2014 1H FY2015 1H 4

6 Status of Automotive Business (Production) Toyota s Car Production Volume (Thousand units) FY2014 1H FY2015 1H Change Japan 1,599 1, Overseas 2,893 2, Total 4,492 4, Metals Division Global Parts & Logistics Division FY2014 1H FY2015 1H Operating income Forex translation effect FY2014 1H FY2015 1H Operating income Forex translation effect Adjust -ments Fiscal period alignment -0.7 Aluminum premium 1.8 Adjustments Fiscal period alignment -0.3 Allowance for doubtful receivables in Venezuela Other 0.1 Other -0.4 Adjusted operating income Adjusted operating income Automobile production-related businesses have stable earnings fundamentals absent non-recurring factors 5

7 Status of Automotive Business (Sales) Toyota Tsusho Retail Unit Sales (Excluding CFAO) (Units) FY2014 1H FY2015 1H Change Asia & Oceania 10,876 11, China, Taiwan & Hong Kong 25,000 25, Central & South America 13,314 11,025-2,289 Middle East & Southwest Asia 2,414 3, Europe & Africa 13,400 11,091-2,309* 1 Russia & Eastern Europe 21,898 15,330-6,568* 2 Total 86,902 77,834-9,068 *1. Includes dealer consolidation in Europe (-1,411) *2. Before effect of alignment of fiscal period in FY2014 (5,477) Automotive Division FY2014 1H FY2015 1H Operating income Forex translation effect Adjust -ments Fiscal period alignment -0.6 Allowance for doubtful receivables in Venezuela Other -0.9 Adjusted operating income We are expanding the automotive value chain in regions in which we can make the most of our strengths 6

8 Consolidated for First Half of FY2015 Ordinary income: Decreased due to lower operating income and other factors including lower investment income recognized using the equity method, primarily in the Metals Division Net income attributable to owners of the parent: Decreased JPY 16.5 billion year on year due to loss on cancellation of contract, loss on valuation of securities and investments, and provision for doubtful receivables % % Q 1Q /3 上期実績 FY2014 1H FY /31H 上期実績 Ordinary income 2015/3 上期実績 FY2014 1H FY /31H 上期実績 Net income (Attributable to owners of the parent) 7

9 Balance Sheets Mar. 31, 2015 Sept. 30, 2015 Current assets 2,769.2 Current liabilities 2,061.7 Long-term liabilities 1,167.4 PPE/Intangibles 1,764.4 Net assets 1,304.4 Current assets 2,702.6 PPE/Intangibles 1,715.9 Current liabilities 1,985.6 Long-term liabilities 1,197.3 Net assets 1,235.5 Mar. 31, 2015 Sept. 30, 2015 Change Total assets 4, , Net worth 1, , Net worth ratio 25% 24% -1% Net interest-bearing debt 1, , Net DER 1.1 times 1.2 times 0.1 times Current ratio 134% 136% 2% 8

10 Cash Flows FY2014 1H FY2015 1H Net cash provided by (used in) operating activities Net cash used in investing activities Net cash used In operating activities -8.7 Income before income taxes and minority interests 87.3 Depreciation 53.2 Working capital Free cash flow Net cash provided by operating activities 73.0 Income before income taxes and minority interests 51.3 Depreciation 55.9 Working capital Net cash used in investing activities Net cash used in investing activities Automotive related Electric power business Resource business -5.0 Africa business -5.0 Automotive related NovaAgri Electric power business Africa business

11 2. Revision of Full-Year Consolidated Forecast for FY2015

12 Assumptions of Forecast for the Fiscal Year Ending March 2016 Benchmark FY2014 FY2015 Initial Forecast FY2015 Revised Forecast Exchange rate 1 USD JPY 110 JPY 115 JPY EUR JPY 139 JPY 125 JPY 133 Toyota Motor's automobile production 8.95 million units 9.12 million units 9.12 million units 11

13 Variance with Initial Forecast by Division (Net Sales) - - Factors in Revised Sales Forecast Metals Lower automobile production in Japan 8, , ,400.0 Global Parts & Logistics Automotive In line with initial forecast In line with initial forecast 1, , , , , , , ,300.0 Machinery, Energy & Project 500 Chemicals & Electronics Food & Agribusiness 210 Consumer Products & Services Increased petrochemical product trading volume Lower demand in Australasia and China Lower grain prices In line with initial forecast 1, , , , /3 FY /3 FY2015 通期実績 通期予想 Initial Forecast 1, , /3 FY2015 通期修正 Revised Forecast Metals Global Parts & Logistics Automotive Machinery, Energy & Project Chemicals & Electronics Food & Agribusiness Consumer Products & Services 金属 グローバル部品 ロジスティクス 自動車 機械 エネルギー プラントプロジェクト 化学品 エレクトロニクス 食料 生活 12

14 Variance with Initial Forecast by Division (Operating Income) -3% -4.0 Factors in Revised Operating Income Forecast Metals Lower non-ferrous metal premium pricing Global Parts & Logistics Automotive Machinery, Energy & Project Chemicals & Electronics In line with initial forecast (positive forex effect) Slowdown in African markets Increase in machinery trading volume Loss on valuation of inventories, increase in electronics trading volume Food & Agribusiness Consumer Products & Services Lower grain trading profitability In line with initial forecast /3 FY2014 通期実績 /3 FY2015 通期予想 Initial Forecast /3 FY2015 通期修正 Revised Forecast Metals Global Parts & Logistics Automotive Machinery, Energy & Project Chemicals & Electronics Food & Agribusiness Consumer Products & Services 金属 グローバル部品 ロジスティクス 自動車 機械 エネルギー プラントプロジェクト 化学品 エレクトロニクス 食料 生活 13

15 Variance with Initial Forecast (Ordinary Income & Net Income) -12% % 下期 2H 上期 1H /3 FY2014 通期実績 2016/3 FY2015 当初予想 Initial Forecast 2016/3 FY2015 通期修正 Ordinary income Revised Forecast 2015/3 FY2014 上期実績 2016/3 FY2015 当初予想 Initial Forecast 2016/3 FY2015 通期修正 Revised Forecast Net income (Attributable to owners of the parent)

16 Non-Recurring Factors Included in Revised Forecast Net Income (Attributable to Owners of the Parent) Category Project 1H 2H Forecast Resource projects Non-resource projects Tax effect Canada gas -6.2 Australia gas -8.0 India rare earths -4.0 Subtotal Europe scrap Valuation losses on overseas listed equities -6.4 Approx Write-downs at affiliates, etc Subtotal Approx Subtotal Approx Full-year total Approx

17 Shareholder Returns Policy 70.0 Non-recurring factors included in revised full-year forecast /3 FY2015 Initial Plan 当初計画 2016/3 FY2015 Revised 修正予想 Forecast 2016/3 FY2015 Net Income absent 特殊要因を除く当期純利益 Non-recurring Factors Cash dividends per share Interim (2Q) Year-end (Forecast) Annual (Forecast) JPY 31 JPY 31 JPY 62 We still plan to pay annual dividends of JPY 62 for the fiscal year ending March 2016 as we announced at the beginning of the fiscal year 16

18 3. Achieving Long-Term Business Plan Targets

19 Background for Revised Revised Reflects stagnant resource prices Realizing scrap and build Toyota Tsusho Action Plan Quickly monetize and assess past investments Reconfirm fundamentals in core businesses Background for Revised Assessing businesses by rigorously managing the investment cycle Continue investing (selectively invest in businesses in which Toyota Tsusho is competitive within the scope of operating cash flow) Prioritize improved financial condition and increased earnings 18

20 Major Past Investments (Past 5 years) Investment Category & Main Projects Objectives Investment (Incl. Capex) CFAO Drive Africa Strategy Approx. 230 Automotive Increase overseas production, expand dealer network, used vehicle and after-market businesses, and rare metals (lithium, etc.) Approx. 210 Electric Power Renewable energy, development of various electric power generation businesses including gas-fired electric power generation in North America Non- Automotive Electronics Grain Generate synergy among four main electronics subsidiaries Restructure value chains centered on NovaAgri Approx. 470 Resources (Gas & Coal) Eliminate additional development expenses and minimize risk exposure Chemicals Invest to leverage strength in areas including iodine and superabsorbent polymers, etc. Total Approx. 910 Bring major projects of concern to an end during the current fiscal year and move to quickly monetize these projects 19

21 Automotive Business Forecast (Due to Lower Oil Prices) Positive Factors Automobile market growth Linkage with higher production Build more facilities (Mexico, China, etc.) Captured demand for other makes Economic growth and recovery in U.S. and India, etc. Use of new materials & technologies Expanding demand for large automobiles (especially in North America) Sales and Market Forecast Flat market expected over next 1-2 years Million units Forecast 2016 Forecast 2021 Forecast Global market *Certain data from Global Automotive Industry Yearbook 2015; FOURIN, Inc. Sluggish economies in resourceproducing countries Currency risk in emerging countries Lower demand for eco cars Negative Factors Appropriately respond to accelerating production reforms Preparing peripheral businesses for shift to sales growth in the future 20

22 Automotive Business: Markets and Factors Driving Earnings Growth Mobility Domain Use of New Materials & Technologies (Metals, Automotive and Chemicals & Electronics Divisions) Lithium development for next-generation automobiles Create infrastructure for hydrogen automobiles Operations That Complement Automobile Sales (Global Parts & Logistics and Automotive Divisions) Expand transaction volume for genuine parts and parts retail Used vehicles and sales finance Move to Increase Overseas Production (Metals, Global Parts & Logistics, Machinery, Energy & Project, and Chemicals & Electronics Divisions) New facilities at Mexico Plant, Guangzhou expansion, etc. Respond to modularization Expand Regions Served and Brands Handled (Automotive Division) Africa Strategy (West: Toyota; East: VW) Hino Trucks, Yamaha Motors 21

23 Life & Community Domain: Markets and Factors Driving Earnings Growth Life & Community Domain Grain Value Chain (Food & Agribusiness Division) Stable upstream procurement Stable overseas supply to Southeast Asia, etc. centered on four silos Africa Business Development (All Divisions) CFAO s network and connections multiplied by the Toyota Tsusho Group s strengths, experience and distribution expertise Pharmaceuticals, consumer products, and durable goods Challenge Electronics Business (Chemicals & Electronics Division) Strengthen sales and procurement capabilities in Japan and overseas through collaboration among four Group companies Aim to become a global player in the growing electronics component market 22

24 Earth & Resources Domain: Markets and Factors Driving Earnings Growth Earth & Resources Domain Exercise the Group s capabilities in diverse types of electric power generation Renewable Energy (Machinery, Energy & Project Division) Investigate the electric power transmission business Surplus power storage and sales (hydrogen, storage batteries, etc.) Electric Power Generation Business (Machinery, Energy & Project Division) Construct electric power generation business value chains Further diversify types of power generation, including, solar, water and geothermal 23

25 Investment Stance and Operating Cash Flow Operating Cash Flow FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1H Investment in FY2015 1H Automotive Non-Automotive Investment Capex (CFAO) Automobile production facilities in North America Solar and wind power generation business (Eurus) NovaAgri acquisition Capex (CFAO) Amount Total Cash provided by investing activities 14.6 Net cash used in investing activities 94.1 We are investing within the scope of operating cash flow, and are building an excellent asset portfolio 24

26 Stronger Investment and Loan Process Exhaustive Strategic Discussion at the Monthly Investment Strategy Meeting Stronger Investment and Loan Process Rigorously apply quantitative standards Establish priorities at corporate and divisional level Project replacement (prioritize allocation of management resources) Allocate corporate personnel to investment projects over JPY 10 billion 25

27 4. Supplementary Materials

28 FY2015 1H: Reasons for Changes in Operating Income Metals Division Forex Translation Effect Forex Translation Effect Forex effect +2.3 Offsetting forex losses Demand/Trading Volume -1.4 Fiscal Period Alignment Other Aluminum premium -1.8 Demand/Trading Volume Automobile production Other -1.4 Fiscal Period Alignment Effect of fiscal period alignment in previous fiscal year FY2014 1H FY2015 1H 27

29 FY2015 1H: Reasons for Changes in Operating Income Global Parts & Logistics Division Forex Translation Effect Forex effect +1.3 Offsetting forex losses Forex Translation Effect +1.8 Demand/ Trading Volume +0.7 Fiscal Period Alignment Fiscal Period Alignment -0.3 Effect of fiscal period alignment in previous fiscal year -0.3 Other Allowance for Doubtful Receivables -0.3 Newly consolidated subsidiaries -0.5 Allowance for Doubtful Receivables Venezuela receivables -0.4 Other FY2014 1H FY2015 1H 28

30 FY2015 1H: Reasons for Changes in Operating Income Automotive Division Forex Translation Effect Demand/ Trading Volume Demand/Trading Volume Retail -2.4 Exports Fiscal Period Alignment -0.6 Allowance for Doubtful Receivables Other Newly consolidated subsidiaries +0.2 Forex Translation Effect Forex effect +1.2 Offsetting forex losses +0.5 Other 15.7 Fiscal Period Alignment Effect of fiscal period alignment in previous fiscal year -0.6 Allowance for Doubtful Receivables Venezuela receivables -1.7 FY2014 1H FY2015 1H 29

31 FY2015 1H: Reasons for Changes in Operating Income Machinery, Energy & Project Division Forex Translation Effect Forex effect +0.4 Offsetting forex losses Forex Translation Effect +1.4 Demand/ Trading Volume +2.2 Demand/Trading Volume Automotive machinery +2.2 Fiscal Period Alignment -0.1 Other Fiscal Period Alignment Effect of fiscal period alignment in previous fiscal year Lower resource prices Other 10.1 FY2014 1H FY2015 1H 30

32 FY2015 1H: Reasons for Changes in Operating Income Chemicals & Electronics Division Demand/ Forex Translation Effect Trading Volume Forex effect +0.8 Offsetting forex losses -0.5 Fiscal Period Alignment -0.5 Fiscal Period Alignment Effect of fiscal period alignment in previous fiscal year -0.8 Alignment of Elematec s fiscal period +0.3 Other 15.8 Forex Translation Effect Demand/ Trading Volume Electronics related Other Loss on valuation of inventories FY2014 1H FY2015 1H 31

33 FY2015 1H: Reasons for Changes in Operating Income Food & Agribusiness Division Forex Translation Effect Forex effect -0.1 Offsetting forex losses -0.5 Other M&A related expenses, etc. 2.9 Forex Translation Effect Demand/ Trading Volume Markets/Prices Other FY2014 1H FY2015 1H 32

34 FY2015 1H: Reasons for Changes in Operating Income Consumer Products & Services Division Markets Textile Related +0.2 Other FY2014 1H FY2015 1H 33

35 Type Gas Coal Toyota Tsusho s Resource Interests Project Name Location Our Share Status Operator Comments Wheatland CBM Project Canada (Alberta) 32.5% Production (since 2012) Encana (67.5%) ATP651P CBM Project Australia (Queensland) 15% Production (since 2015) BG Group (62.6%) Bass Gas Project Australia (Victoria) 11.25% Production (since 2006) Origin (42.5%) Otway Gas Project Australia (Victoria) 5% Production (since 2007) Origin (67.2%) Integra Australia (New South Wales) 15% - - Oakbridge Australia (New South Wales) 5% Production (since 1994) Glencore (78%) Resource Location Our Share Status Partner Comments Iodine Chile (Santiago) 25.5% Production (since 2012) ACF Minera S.A. (74.5%) 180,000 mt (Gross iodine shipment capacity) Lithium Argentina (Jujuy) 25% Production (since 2014) Orocobre (66.5%) Lithium carbonate 17,500 t/year 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 34

36 Inquiries: Investor Relations 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