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7/29/2019 Toyota Tsusho 201303 2Q Shacho Eng
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Business Development in Africa
November 1, 2012
Investor Relation Group
E-mail: ttc_ir@pp.toyota-tsusho.com
Tel: +81-3-4306-8201 Fax: +81-3-4306-8818
Inquiries to:
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Toyota Tsusho’s Vision & Overseas
Regional Strategy
Africa follows the four key areas in scale Discovery and expansion planned in the three business areas
North and
Central
America
Asia Pacific
Central Asia
Aimed at strategies and execution within the four key regions of Asia and Oceania, China, Europe, and North and Central AmericaAdditional focus on emerging countries and resource-rich countries in other regions with operations directly managed
by the head office
Achievement of a balanced “1:1:1” business portfolio across the three operating fields of the GLOBAL 2020 VISION
Europe
MobilityMobility
Life &Life &
CommunityCommunityEarth &Earth &
ResourcesResources
China
Africa
*Circle size reflects scale of net sales as of fiscal year ending March 31, 2012
Middle East
South America
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Explosive Population Growth(1 billion people in 2010 2 billion people in 2050)
Marked Economic Growth(10-year forecast: 5.2% growth in Sub Sahara vs.
3.3% globally)
Plentiful Resources(Extensive undeveloped resources and energy)
Accelerated Resource
Development(Crude oil, copper, diamonds, rare metals)
Expanding Middle-IncomeDemographic
(Per capita GDP above $3,000:
65 million people in 2012 100 million people in 2015)
Basic Infrastructure Creation(Basic development of roads, electricity, water, etc.)
Accelerated Motorization(2010: 1.45 million vehicles 2016: 2.0 million vehicles*)
*Toyota Tsusho estimate for car market based on GDP growth prediction by IMF
Potential in Africa
Rising Standards of Living(Income per capita: $800 in 1980 $2,900 in 2016)
The final emerging region after China, Southeast Asia and Central and South AmericaOpportunity for business expansion
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Initiatives in AfricaInitiatives in Africa
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History of Business Development in Africa
1933
1933 Alexandria Branch opened; cotton trading began
Alexandria Branch opened; cotton trading began
1991
1991 Minority investments in automobile distributors in Kenya, Angola, Zambia and Zimbabwe
Minority investments in automobile distributors in Kenya, Angola, Zambia and Zimbabwe
2000
2000 First headquarters for Africa, TOYOTA TSUSHO AFRICA (PTY) LTD., established
in South Africa
First headquarters for Africa, TOYOTA TSUSHO AFRICA (PTY) LTD., established
in South Africa
2001
2001 Transfer of business of U.K. company Lonrho plc. in Kenya, Angola, Zimbabwe, Zambia andMalawi
Transfer of business of U.K. company Lonrho plc. in Kenya, Angola, Zimbabwe, Zambia andMalawi
2008
2008 Investment in drilling of marine gas fields in Egypt
Investment in drilling of marine gas fields in Egypt
2011
2011 Order received for Kenya’s largest geothermal energy project
Order received for Kenya’s largest geothermal energy project
Track record of about 80 years of business development in Africa
2009
2009 Car leasing company established in Kenya and Mauritius
Car leasing company established in Kenya and Mauritius
1964
1964 Exports of completed vehicles from Japan to East Africa began
Exports of completed vehicles from Japan to East Africa began
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9 Automobiles
9 Logistics business
Energy plant-related/ Chemical products
Farm mechanization business
Geothermal energy
Eastern
Africa
Eastern Africa Portfolio
Southern Africa PortfolioCountries with investments in
Toyota distributors (7 countries)
Other Toyota business-
transferred countries (17countries)
9 Automobiles
9Toyota parts SCM business (South Africa)Agriculture (Zambia, Mozambique)
Logistics business
SouthernAfricaCountries with investments in
Subaru distributors (1 country)
Electric power plantEgypt
Northern Africa Portfolio9Automotive business portfolio
○ Non-automotive business portfolio
⑪
Diversified development of the automotive and non-automotive businesses, largely in easternand southern Africa.
Current Business Development in
Africa
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Parent company export domainParent company export domain 16.0 billion16.0 billion
Import, export & wholesale by regional subsidiariesImport, export & wholesale by regional subsidiaries 53.0 billion53.0 billion
Steel sheet processing businessSteel sheet processing business 6.0 billion6.0 billion
Sales of automobiles & parts; after-sales serviceSales of automobiles & parts; after-sales service 55.0 billion55.0 billion
Focus on the automotive business Expand the non-automotive business in the future
JapanJapan
South AfricaSouth Africa
South AfricaSouth Africa
South Africa, Angola, Kenya, etc.South Africa, Angola, Kenya, etc.
130.0 billion130.0 billionTotalTotal
Employees Expatriates 34; National Staffs 2,393; Total 2,427 *as of March 31, 2012
Number of Bases 8 bases
Net Sales in Africa by Business,
Employees and Bases*Net sales for the year ended March 31, 2012Net Sales by Business
*as of March 31, 2012
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New Developments in Africa
Region where former Toyota Tsusho is strong + Strong business of former Tomen Geothermal energy business in Kenya
Region where former Tomen is strong + Strong business of former Toyota Tsusho Automobile production in Egypt
We are promoting business development to extend TRY 1 in Africa, which is a key region
New Businesses
Toyota distributors, etc.
Automotive area is the base
Geothermal energy
businessOlkaria No. 1 and No. 4
(Approx. 280MW – equivalentto 25% of Kenya’s electric
power generation)
Electric power plants, etc.
Non-automotive area is
the base
K e n y a
E g y p t
Small-scale CKDproduction business
Joint venture with
Toyota Motor Corp.
Fortuna assembly (production of 3,000 units annually)
Automotive Area
Automotive Area
Non-Automotive Area
Non-Automotive Area
S yn e r g y ( t r u s t i n gr e l a t i on s h i p s , p e r s on al c onn e c t i on s , e x p e r i e n c e
, e t c . )
Existing Businesses
+
+
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Results in Kenya:
1. Automotive business
Automobile distributors
Used car sales
Car Leasing
2. Non-Automotive BusinessOrder for geothermal power generation PJ
Results in Kenya:
1. Automotive business
Automobile distributors
Used car sales
Car Leasing
2. Non-Automotive Business
Order for geothermal power generation PJ
Comprehensive agreement concluded
with government of Kenya
Comprehensive programs in the areas of automobiles,power generation and energy, oil and minerals,environment and agricultural industrialization.
Comprehensive agreement concluded
with government of Kenya
Comprehensive programs in the areas of automobiles,power generation and energy, oil and minerals,
environment and agricultural industrialization.
Establishment of Eastern Africa regional headquarters(planned for November 2012)
Establishment of Eastern Africa regional headquarters(planned for November 2012)
Kenya
Tanzania
Uganda
Rwanda
Burundi
1. Integrated management of inventory in theautomotive business
2. Promotion of business expansion in the EAC*,centered on Kenya
* EAC (East Africa Community): A community formedby countries in eastern Africa. Current members areKenya, Uganda, Rwanda, Burundi and Tanzania.
1. Integrated management of inventory in theautomotive business
2. Promotion of business expansion in the EAC*,centered on Kenya
* EAC (East Africa Community): A community formedby countries in eastern Africa. Current members areKenya, Uganda, Rwanda, Burundi and Tanzania.
New Developments in Eastern Africa
The branch in Nairobi, Kenya is now a subsidiary. As a result, it is the regional axis forinitiatives in Kenya and EAC.
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Investment in CFAOInvestment in CFAO
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Operations include automobile distributor business, pharmaceutical wholesale business, beverage production, and sales business.
Largest French trading company specialized in Africa
Overview of CFAO
The major strength is a network covering all regions of western Africa.
CFAO
Corporate
Overview
Established: 1887 Countries with operations: 32 countries + 7 French overseas possessions
Employees: 10,100 (as of Dec. 31, 2011) Group companies: 121 (Sales offices: 261)
Net sales: €3,124 mil (as of Dec. 31, 2011) Stock listing: Euronext (listed 12/2009)
Automobile Distributor/Dealer Business
Division (60% of net sales)
Pharmaceutical Division
(28%)
Industries Division
(8%)
IT Division
(4%)
Automotive Business Operations Non-Automotive Business Operations
Toyota
17
countries
GM
7
countries
Nissan
9
countries
Isuzu
7
countries
Suzuki
19
countries
■Distribution rights for more than 20 brands in 32 countries
Management of supply and demand with optimum efficiency at the
centralized inventory yard in Belgium
Does business with 450pharmaceutical companies,handles about 20,000products. Wholesales to5,000 pharmacies in 27countries in western Africa.
OEM production of Heineken and CocaCola in Rep. of Congo, No. 1 share.
OEM production andsales of Yamaha andPeugeot motorcycles.
• IT consultingbusiness
• PC-relatedequipmentsales
• Office designconsultingbusiness (incl.installation of facilities suchas elevators)
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CFAO Net Sales(Share by division)
CFAO Operating Income
(Share by division)
1,487
121
Unit: € Million
1H
1H
Unit: € Million
Changes in CFAO Financial Results
Following the Lehman Shock, steady growth in sales and earnings even amid the financial crisis in Europe
Automobile
56%Pharmaceutical
29%
Industries
11%
IT 4%
Automobile
52%Pharmaceutical24%
Industries
11%
IT 2%
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CFAO is moving forward with three businesses – Equipment (centered on automobiles), Health Care and
Food & Consumer Goods – under its 3 Pillar Strategy.
EQUI PMENT
GROWTH
STRATEGY
HEALTH
CARE
FOOD &
CONSUMER
GOODS
CFAO Business Strategy
Strategy closely matches Toyota Tsusho’s GLOBAL 2020 VISION TRY 1
CFAO focuses on three businesses similar to Toyota Tsusho’s TRY 1 strategy
Life &
Community
Earth &
Resources
Mobility
Use a powerful business
foundation and expand TRY 1
businesses in Africa
・
・
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Business Expansion from Investment in CFAO
MobilityEarth &
Resources
Life &
Community
Rapid development & expansion in the emerging market of
Africa (current 25 countries 48 countries/54 countries) ○ ○ ○
Accelerated development of the distributor/dealer business ○
Multi-brand car distribution and Pharmaceutical distribution
businesses as the result of the acquisition of CFAO (21 brands
car distribution and wholesales to 5,000 pharmacies)○ ○
Medium- to long-term business discovery and foundation
building in non-automotive domains (foundation building inresource and infrastructure development business) ○ ○
C l R l i hi i h
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Key Development Region: Eastern and Southern Africa
(Southern and eastern Africa = Toyota)
Toyota handled (17countries)
Non-Toyota handled (32countries)
32 Countries Handled by CFAO (Automobile Division)25 Countries Handled by Toyota Tsusho(Toyota domain + South Africa/ Subaru)
Key Development Region: Western Africa
(Western Africa = Toyota, etc.; Eastern Africa= non-Toyota)
Internal operations and investments:8 countries
(South Africa: investment in Subarudistributors)
Internal operations andinvestments: 32 countries
(Toyota: 17 countries/Non-Toyota:32 countries)
Vehicles handled for all 21 brands
71,200 units (fiscal 2011)
Vehicles handled for all brands
* Toyota + 1,000 Subaru units = 20,000units
Handling of Toyota vehicles: 17 countries
10,260 units (2010) 12,722 units (2011)
Handling of Toyota vehicles: 24 countries
17,800 units (2010) 19,135 units (2011)
Countries with investments in
Toyota distribution (7 countries)
Other Toyota business-transferred
countries (17 countries)
Complementary Relationship with
CFAO in the Automotive Business
Countries with investments in
Subaru distribution (1 country)
Toyota Tsusho CFAO
The two companies handle approx. 91,000 units in 48 countries (includes Toyota in 40 countries) Area development
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CFAO’s Pharmaceutical Wholesale
BusinessPharmaceutical wholesale & logistics business: No. 1 share of pharmaceutical wholesale business in AfricaManufacturers handled: 450 companies Sales network: 20 countries in Africa and 7 French overseas possessions
Products handled: Approx. 20,000 varieties Shipments: Daily to approx. 5,000 pharmacies/hospitals in 27 countries
Pharmaceutical manufacturer (mainly European manufacturer)
+ OEM production in Algeria
Consolidated inventory for Eurapharma business(EPDIS of France/Continental Pharmaceutique)
Pharmacies/hospitals in each country, etc.
Eurapharma distributors
(20 countries in Africa + 7 French overseas possessions, etc.)
Weekly orders
Daily orders & deliveries
Human Resources
Experts in many areas
Etc.
Financial Strength
Stable finances
Network
Global network of bases
Personnel network
Logistics Know-How
Know-how cultivated inToyota Group
Infrastructure
Logistics warehouses,information systems
Toyota Tsusho will contemplate support and cooperate with CFAO by providing ToyotaTsusho’s resource and know-how
Supportand
cooperation
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Schedule of TOB
July August September October November December January
29.8%purchasingcontractconclusion
29.8% purchasingimplementation
TOB (takeoverbid) applicationto AMF
(France’sFinancialServicesAgency)
Approval of application from
AMF
Announcement
of result
Announcement
of result
European CommissionAnti-CompetitionClearance
TOB planned for completion by end of December if all goes smoothly.
▲Nov. 1, 2012Implemented Planned implementation
Acceptance Period Reopened Acceptance Period
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Risk Management &Risk Management &
Numerical Financial TargetsNumerical Financial Targets
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Basic Policy for Financial StrategyBasic Policy for Financial Strategy
Basic PolicyAim to maintain a sound financial balance and generate stable growth
Sound Financial BalanceBased on the concept of Asset Liability Management:1. Align funding with asset class
1) Employ shareholders’ equity and long-term debt as capital for long-term investments
2) Maintain appropriate balance between shareholders’ equity and long-term debt (net DER ≦ 1.5)
2. Maintain balance between risk asset scale and risk buffer
Risk Asset ≦ Risk Buffer
Growth1. Growth in consolidated net income:
¥66.2 billion (result for fiscal year ended March 31, 2012) ⇒ ¥ 120.0 billion (target for fiscal year
ending March 31, 2017)
2. Increase in ROE
10.7% (result for fiscal year ended March 31, 2012) ⇒ 12%-15% (target for fiscal year ending March 31, 2017)
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Planned Post-TOB Financial Indicators
Performance
Indicators
March 31,
2010
Results
March 31,
2011
Results
March 31,
2012
Results
March 31,
2013
Forecast*
March 31,
2017 Target
Net income ¥27.3billion ¥47.1billion ¥66.2billion ¥70.0billion ¥120.0billion
Net
DER0.96 0.98 1.05 1.30
1.50 or
less
ROE 4.9% 8.0% 10.7% 10.5% 12-15%
RA:RB 0.74 0.73 0.88 1.18 Under 1.0
*Numbers may change depending on the result of the TOB.
• Indicators for March 31, 2013 will worsen temporarily as a result of equityinvestment in CFAO
• However, increased earnings and asset amortization will enable achievementof all indicators for March 31, 2017
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Notice on Forward-Looking Statements
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.
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