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Three years management plan from FY 2017 to FY …

Three years management planfrom FY 2017 to FY 2019 May 2, 2017 Toyota Tsusho Review and specific management measuresII. Next Mobility StrategyIII. Africa strategyIV. Three years management plan-Quantitative targets -V. ESG and specific management measures3FY2016 Review and specific management measuresReassessed businesses and booked impairment losses against unprofitable onesIncreasing cash-generative capacity through better working capital managementWe have built a foundation upon which we can advance from FY2017FY2015FY2015FY2016 MetricFY2014FY2015FY2016 Operating cashflow+ + + cash flow( )+ + interest-bearingdebt1, , , debt/equity ( Billion yen)

Three years management plan from FY 2017 to FY 2019 May 2,2017 Toyota Tsusho Corporation.

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1 Three years management planfrom FY 2017 to FY 2019 May 2, 2017 Toyota Tsusho Review and specific management measuresII. Next Mobility StrategyIII. Africa strategyIV. Three years management plan-Quantitative targets -V. ESG and specific management measures3FY2016 Review and specific management measuresReassessed businesses and booked impairment losses against unprofitable onesIncreasing cash-generative capacity through better working capital managementWe have built a foundation upon which we can advance from FY2017FY2015FY2015FY2016 MetricFY2014FY2015FY2016 Operating cashflow+ + + cash flow( )+ + interest-bearingdebt1, , , debt/equity ( Billion yen)

2 Shift from 5 years plan to 3 years management PlanLiving and prospering together with people, society, and the Earth, we aim to be a value-generating corporation that contributes to creation of a prosperous PhilosophyWith the business environment around mobility changing dramatically, we shortened our planning horizon from five years to Three to adapt faster to change. Realization of more-precise plans Plans are reviewed and updated annually so theyalways reflect recent major changes in environmentRealizing growth through ToyotsuCore ValuesMedium-term Business PlanGlobal VisionTaking our ToyotsuCore Values to heart, we will strengthen our earnings foundation and challenge Three business domains.

3 Mobility, Life & Communityand Resources & Environment5 Major management Turning PointWe must be prepared to swiftly adapt to change by establishing specialized organizational units with our sights set on the next generationAnalysis of African environment Economic growth has slowed due to resource price declines Weak economic structure based mainly on primary products Largely young labor forces Industries have high latent growth potentialWe will continuously take the lead from a long-term, pan-African perspective, taking into account the external environmentAnalysis of mobility environment Auto industry undergoing oncein acentury structural transformation Technological innovations like IoTand AI are changing autos value Established Africa Division, our first regional division.

4 And streamlined reportinglines Expediting utilization of local human resources CFAO CEO RichardBielleappointed deputy head of division ToyotsuKenya Chairman Dennis Aworiappointed to CFAO s Board of Directors Established crossfunctional project units (staffed with 150 personnel in total) Established Next Technology Fund toswiftly respond to innovative technological changes* See p25 of supplementary in NEXT Mobility Strategy in Africa6II. Next Mobility Strategy8 MobilityAuto Industry is at Turning PointAuto industry is shifting away from conventional production/sales.

5 Various businesses have started to become linked with autosLife &CommunityMobilityResources & EnvironmentNew urban transportation systems Changing urban mobility/ownership modes Realization of eco-driving through alleviation of traffic congestionSmart cities, smart grids Low-carbon society (CO2 reduction)Proliferation of PHVs, EVs, FCVs Energy conservation through utilization of renewable energy Effective utilization of HEMSs, storage batteriesITSs linking people, vehicles and society Self-driving vehicles Advanced safety Connected carsMaterials revolution Emergence of new materials such as aluminum.

6 Carbon and resinsGrowth in demand for conventional carsLow-cost operations9 Businesses we are TargetingMobility services New services that promote adoption of next-generation autosMaterials Businesses involved with vehicle weight reduction, electrification, new materials, recycling Upstream/midstream battery businessesEV components Supply and storage of electric power from renewable sources Infrastructure development Power semiconductorsSmart factories Improved productivity through visibility & preventive maintenance Intergenerational transmission of skilled workers skills Factory networks & security Involvement in self-driving vehicle/advanced safety technologies Supply of electronic parts/components for EV/PHV/FCVs SalesProductionProduction TechnologySalesx ServiceExpansion

7 Of Next Mobility business domainAutomotive electronics example on next pageAIAIH ardware(semiconductors)SoftwareI TSensorsSensorsNew business domainsGrowth sourcesCamerasCamerasImage recognition & processingImage recognition & processingCommunication & wirelessCommunication & wirelessExisting technological strengths (hardware, software)Domains where we can utilize our ICTs and track recordWe will deepen our strengths and unfailingly capture newly emerging business opportunitiesCar electronics (conventional)Self-drivingSelf-drivingNe xt-generation data centersNext-generation data centersSecurity (ID management , monitoring)Security (ID management , monitoring)OTA (software updated wirelessly) OTA (software updated wirelessly)

8 Automotive Electronics Business Example10 Level Level 3 Quality analysisQuality analysisEmbedded software developmentEmbedded software developmentGlobal sales networkGlobal sales networkModularizationModularizationTechn ology solutions/EMS servicesTechnology solutions/EMS servicesDevelopment & investmentToyota Tsusho s functionsToyota Tsusho s functionsLevel 4 Data centerData centerSecuritySecurityNetwork cloudNetwork cloudLevel 5 Further insourcing of technological capabilities through development & investment (deepening of strengths)Further insourcing of technological capabilities through development & investment (deepening of strengths)

9 ElectrificationElectrificationAdvanced safetyAdvanced safetyConnectedConnectedLevel focused on AfricaEfforts and Future Development in Africa(Automotive Production and Sales <Automobile Productionand Peripheral business> <Automotive Sales and Peripheral business>SUZUKI Businesscountries 4countries TOYOTA Businesscountry 22 countries BothTOYOTA and SUZUKI Business Countries (19 countries CKD Complete Knock-Down All implement the steps other than the parts production SKD Semi Knock Down Relatively simple assembly Expand to other than Toyota, and other than passenger automobile through automobile production s of B to C(Business to Consumer) is anticipated with a wide range of lineup from superior to (VW)CKDB usinessKenia(VW)CKDB usinessNigeria(YAMAHA)Manufacture of MotorcyclesNigeria(YAMAHA)Manufacture of MotorcyclesNigeria(FUSO)SKDB usiness-Plan -Nigeria(FUSO)SKDB usiness-Plan -Nigeria(Mitsubishi)SKD Business-Under consideration-Nigeria(Mitsubishi)SKD Business-Under consideration-Algeria(FUSO)))

10 SKD Business-Plan -Algeria(FUSO)SKD Business-Plan -KenyaCaptive finance & lease / Used vehicles, finance & lease / Used vehicles, capture areaTOYOTA/SUZUKIE xpand capture area12 Egypt(TOYOTA)CKD BusinessSouth Africa(TOYOTA)Automobile production supportSouth Africa(TOYOTA)Automobile production supportEfforts and Future Development in Africa Other than Automotive <Pharmaceutical business >Pharmaceuticals deployment capture regionNorth Africa plan to purchase of a pharmaceuticals manufacture and salescompany development of pharmaceuticals manufacture and salesSouth East Africa Expand of Pharmaceuticals sales channels<Retail / Beverage Business, etc.


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