Long-Term Business Plan for the Fiscal Year Ending March 2020

[Pages:26]Long-Term Business Plan for the Fiscal Year Ending March 2020

May 1, 2015

Historical Overview of Net Income

Net income(Billion yen;includes Toyota Tsusho estimates) ToyotaMotor'sannualcar productionvolume(Million units; includes Toyota Tsusho estimates)

140.0

6.88

7.59

8.12 58.2*

8.69 67.5

7.10

7.28

7.34

7.53 66.2

8.56 67.4

8.95 73.0

8.95 67.5

9.12 70.0

45.7 37.5

47.1 40.2

Plan Target

27.3

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Fiscal years to March 31

*Excludes the JPY 19.0 billion tax reduction effect due to the merger.

2016

2020

(Net income before amortization of goodwill)

Stable performance as a result of increased automobile production

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Issues and Initiatives to Achieve Annual and Long-Term Plans

Initiatives to achieve the long-term business plan

Issues

Strengthen the earnings foundation of the automotive business

Build businesses in which we have invested and expand earnings in them

Create a new generation of businesses

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Initiative Policies

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

Rigorously invest in areas that leverage our strengths and businesses that are highly profitable

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Fiscal Year Ending March 2020: Multistage Net Income Targets

(Billion yen)

+20.0

+20.0

(Net income before

+10.0

amortization of goodwill)

Returns on new investments

Existing business growth

Monetize prior investments

+20.0

Amortization of goodwill completed

(Tomen, Eurus, etc.)

Amortization of goodwill suspended

(CFAO, etc.)

140.0

70.0

March 2016 Plan

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March 2020 Target

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

(Net income before amortization of goodwill)

March 2014 March 2015 March 2016 March 2020

Results

Results

Plan

Target

Net sales

PL Operating income

Net income

Total assets

Shareholders' equity

BS

Comprehensive income

Net assets Net interest-bearing debt

7,743.2 161.3 73.0

4,072.7 799.8 172.9

1,156.0

1,088.9

8,663.4 169.4 67.5

4,533.6 844.4 281.0

1,304.4

1,233.6

8,400.0 158.0 70.0

4,900.0 900.0 ?

1,370.0

1,300.0

9,500.0 270.0 140.0

6,500.0 1,200.0

? 1,900.0

1,600.0

Financial Benchmarks

Net DER

1.1

1.1

1.1 1.5 times

Investments New investments

146.1

208.8

Invest within the scope of operating cash flow

Emphasize sound finances

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Deploy Toyota Group Collective Experience Outside Toyota Group

Strengthen the Earnings Foundation of the Automotive Business

Americas & Europe

Asia Pacific & China

Emerging Countries & Africa

Automobile Production

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

Automobile Sales

Raise management

efficiency Popularize brands

Enhance sales network

in main countries Scrap and build Deal in commercial

components

Expand OEM use Enhance sales network Create individual demand Pre-owned cars and sales

finance

*

Circle size corresponds to the extent of business expansion

Implement production and sales strategies for each region

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

Division

Business Areas

Future Initiatives

Metals

Global Parts & Logistics

Automotive Machinery, Energy & Project Chemicals & Electronics

Rare earths Lithium

Techno-park Aftermarket component sales

Pre-owned cars & sales finance Hydrogen & electric vehicle

businesses

Gas business Power generation business

Iodine Superabsorbent polymers (SAP)

Food & Agribusiness

Wheat & sugar businesses

Consumer Products & Services

Hospital & nursing services

Increasing productivity from stable operations Expand sales channels

Strengthen Tier 1 and Tier 2 relationships Sell more materials and form local relationships

Alliances with new car dealers Create framework for popularizing brands

Rigorous control of development schedule Strengthen relationships with strong partners

Secure sales routes for unique products

Development of businesses from upstream to downstream

Expand sales channels

Operate in peripheral service businesses

Implement initiatives required for rapid returns

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Prior Investment Projects: Growth Areas with Projected Earnings Growth

Division

Business Area

Machinery, Energy & Project

Renewable energy

Chemicals & Electronics

Electronics Pharmaceuticals business

Food & Agribusiness

Grain business Beverage business

Consumer Products & Insurance package services

Services

Textiles

Future Initiatives

Portfolio balanced among Japan, Europe and the USA Diversify generation methods (solar, biomass, geothermal, offshore wind, etc.)

Exercise Group synergies Expand business in which Toyota Tsusho

is strong, incl. automotive Increase products handled by building

ties with manufacturers and constructing networks

Build value chains from upstream to downstream Strengthen relationships and development with strong partners

Operate overseas, and increase insurance products handled Review purchasing and sales routes, and create brand strategies

Leverage our strengths to generate additional growth

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