The new Toyota Tsusho aims to maximize integration synergies of its merger partners. Toyota Tsusho achieved steady growth primarily in the automotive field, while Tomen Corporation has a broad customer base in a diverse array of operations in non-automotive fields.

The two merged companies achieved a measure of success under their 2000 equity-based alliance in terms of sharing infrastructure, implementing joint business initiatives such as cross-selling, and integrating individual businesses. These measures were facilitated by very little overlap between the two companies’ respective customer bases. While building on these and other successes, the new Toyota Tsusho will optimally allocate resources across the company and expand into the strategic BRICs region, among other priorities. Through these and other initiatives, Toyota Tsusho is targeting net income of ¥100.0 billion before amortization of goodwill in the fiscal year ending March 31, 2011 under its current long-term management plan.

VISION 2015—LEAD THE NEXT was formulated in conjunction with the inception of the new Toyota Tsusho as a management vision that clearly articulates the company’s strategic intentions. It defines our strategies for core business domains and the approaches that will be vital to their accomplishment. We aim to advance to the next stage of growth by having each of our six product divisions create nextgeneration businesses in their six respective business domains.

Automotive Field In light of ongoing advancement and growth in overseas production by the Toyota Group, Toyota Tsusho will continue to position the automotive field as its core business. While steadily capturing growth opportunities, we will work to create new functions based on the policies of the Toyota Production System (TPS), which we have cultivated as a member of the Toyota Group. In the automotive field, Toyota Tsusho aims to establish itself as a leading Toyota Group company by thoroughly reinforcing strengths that cannot be matched by other trading companies. Meanwhile, Toyota Tsusho aims to drive further growth by actively developing business activities targeting the automotive operations and businesses of corporate groups other than Toyota.

Non-automotive Fields In non-automotive fields, Toyota Tsusho aims to foster and establish second and third core businesses alongside the automotive field. This will be accomplished by capturing synergies through the horizontal application of functions and expertise developed in the automotive field to non-automotive fields. Toyota Tsusho will actively invest in projects that meet investment criteria based on thorough risk management assessments. Investments will be concentrated on businesses with new growth potential. Toyota Tsusho also plans to actively provide products and services for non-automotive businesses within the Toyota Group.

* While each product division is engaged in both automotive and non-automotive fields, Toyota Tsusho classifies the Metals, Machinery & Electronics, and Automotive divisions in the automotive field, and the Energy & Chemicals, Produce & Foodstuffs, and Consumer Products, Services & Materials divisions in non-automotive fields with the goal of promoting management of divisions on a group basis.

The highest priority of VISION 2015—LEAD THE NEXT for the new Toyota Tsusho Group is to generate an equal share of earnings from automotive and non-automotive fields by 2015. In fiscal 2006, the ratio was approximately 70:30 (or 73% vs. 27%) in favor of the automotive field, on the basis of a simple sum of the merged companies’ earnings. Even so, Toyota Tsusho is already reaping tangible merger benefits in businesses targeting both Toyota and other groups. This has been accomplished by stimulating new demand using the company’s expanded customer base and value chain and by setting itself apart from other companies by improving proposal-based marketing capabilities. Going forward, Toyota Tsusho will do its utmost to deliver further merger benefits, with the aim of creating new value.

Business Strategies for the Automotive Field
In the automotive field, Toyota Tsusho aims to accelerate growth by steadily allocating resources to augment new functions, in response to planned increases in overseas business and production by the Toyota Group. Under a new framework, Toyota Tsusho plans to capture more business opportunities that leverage its unique strengths by forming stronger ties with automakers outside the Toyota Group in fields such as electronic parts procurement.

Business Strategies for Non-automotive Fields
In responding to moves by Toyota to expand production overseas, Toyota Tsusho is making slower progress in chemical products than in the metals and machinery fields. Therefore, the first priority is to reinforce operating infrastructure for chemical products in the automotive field by employing the new company’s larger overseas network.

In the energy field, Toyota Tsusho aims to reinforce existing businesses such as coal operations based on its project development expertise, while rapidly establishing new businesses, including power and LNG operations. In this context, the company is setting its sights on new opportunities such as onsite power generation for the Toyota Group and alliances with new partners.

In the foodstuffs and consumer product fields, Toyota Tsusho will focus on operations where it can reliably add value to the flow of goods, as well as highly profitable fields in its business portfolio.