2nd Quarter of Fiscal year ending March 31, 2025[PDF:104.0KB]

	Toyota Tsusho Corporation
	Financial Highlights for the Six Months Ended September 30, 2024
	[IFRS basis] (Consolidated)
	October 31, 2024
Listings	Tokyo Stock Exchange (Prime), Nagoya Stock Exchange (Premier)
Security code	8015
URL	https://www.toyota-tsusho.com/english/
Representative	Ichiro Kashitani, President & CEO
Contact	Tsutomu Sato, General Manager, Accounting Department
Telephone	[phone]

Submission of semi-annual securities report	November 13, 2024
Scheduled date of dividend payout	November 26, 2024
Supplementary materials to the quarterly results	Yes
Quarterly financial results briefings	Yes (targeted at institutional investors and analysts)
	(Amounts rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2024 (April 1, 2024 to September 30, 2024)

(1) Operating Results									(Percentage figures represent year-on-year changes)
								Profit before				Profit attributable	Total
	Revenue		Operating profit		Profit		to owners of the	comprehensive
		income taxes
											parent		income
Six months ended	million yen		%	million yen	%	million yen	%	million yen	%	million yen		%	million yen		%
September 30, 2024	5,065,920	(1.3)	247,918	6.3	268,109	5.5	196,093	5.7	181,547		2.1	85,374		(78.7)
September 30, 2023	5,135,235		4.6	233,147	12.1	254,110	9.5	185,592	8.6	177,757		17.5	400,229		30.8
	Basic earnings per share		Diluted earnings per share
Six months ended				yen					yen
September 30, 2024				171.98						－
September 30, 2023				168.39						－
Notes: 1. "Basic earnings per share" is calculated	based on "Profit attributable to owners of the pare nt."

1. 2. The Company conducted a 3-for-1 common stock split on July 1, 2024. Basic earnings per share and diluted earnings per share have been calculated as if this stock split had taken place at the beginning of the fiscal year ended March 31, 2024.

2. Financial Position

			Equity attributable to	Ratio of equity attributable
	Total assets	Total equity	to owners of the parent to
	owners of the parent
			total assets
As of	million yen	million yen	million yen	%
September 30, 2024	6,930,950	2,625,983	2,485,151	35.9
March 31, 2024	7,059,994	2,620,110	2,467,130	34.9

2. Dividends

			Dividend per share
Record date or period	End-first quarter	End-second quarter	End-third quarter	Fiscal year-end	Annual total
	yen	yen	yen	yen	yen
Year ended March 31, 2024	－	125.00	－	155.00	280.00
Year ending March 31, 2025	－	50.00
Year ending March 31, 2025			－	50.00	100.00
(forecast)
Notes: 1. No changes were made to the latest release of dividend forecasts.

2. The forecasts for the end-second quarter and fiscal year-end for the fiscal year ending March 31, 2025 are each 50.00 yen, which reflects the 3-for-1 stock split on July 1, 2024. This is equivalent to an annual dividend of 300.00 yen prior to the adjustment for this stock split.

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)

(Percentage figures represent year-on-year changes)

	Profit attributable to owners of the parent	Basic earnings per share
	million yen	%	yen
Full year	350,000	5.6	331.56

Notes: 1. No changes were made to the latest release of earnings forecasts.

2. The Company conducted a 3-for-1 common stock split on July 1, 2024. The basic earnings per share forecast for the fiscal year ending March 31, 2025 is adjusted to reflect the stock split.

*Notes

1. Significant changes in scope of consolidations during the period: None
2. Changes in accounting policy and changes in accounting estimates
3. 1. Changes in accounting policy required by IFRS: None
   2. Changes other than the above 1): None
   3. Changes in accounting estimates: None
4. Number of issued shares (common stock)
5. 1. Number of issued shares at end of period (Treasury shares included):

September 30, 2024:	1,062,169,548 shares
March 31, 2024:	1,062,169,548 shares

2) Number of shares held in treasury at end of period:

September 30, 2024:	6,503,914 shares
March 31, 2024:	6,544,647 shares

3) Average number of shares outstanding during the period:

Six months ended September 30, 2024: 1,055,640,888 shares

Six months ended September 30, 2023: 1,055,608,857 shares

Note: The Company conducted a 3-for-1 common stock split on July 1, 2024. The number of issued shares at end of period, the number of shares held in treasury at end of period and the average number of shares outstanding during the period have been calculated as if this stock split had taken place at the beginning of the fiscal year ended March 31, 2024.

* Quarterly review status

This report is exempt from the review by a certified public accountant or an audit firm.

* Appropriate use of earnings forecasts and other important information

1. The above forecasts, which constitute forward-looking statements, are based on information available to the Company as of the date of the release of this document. Actual results may differ materially from the above forecasts due to a range of factors.
2. The Company is scheduled to hold a quarterly earnings briefing for institutional investors and analysts on Friday, November 1, 2024. The presentation materials for the earnings briefing will be posted on its website promptly following the earnings announcement.

*This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this and the original, the original Japanese document prevails.

1. Consolidated Results of Operations

1. Overview of Operating Performance 1) Business Environment

In the first six months of the fiscal year (April 1, 2024 - September 30, 2024), economies worldwide c ontinued to grow as inflation declined. The result is a shift in monetary policy that included interest rate cuts in Europe and the U.S. Concerns about slower growth caused by geopolitical risk are increasing due to the growing tension in the Middle East, higher tariffs on imports from China because of surplus output capacity in China, and other reasons.

In the U.S., the economy is growing mainly with the support of consumer spending. There was a shift in monetary policy in response to a slowdown in the labor market and decline in inflation as the FRB cut its benchmark interest rate in September for the first time in four and a half years. In Europe, although there were signs of weakness in some sectors as lower external demand impacted manufacturing, the economy is showing signs of recovery as inflation decreases along with falling energy prices and as service sector exports increase. In China, economic growth is slowing mainly because of soft domestic demand. However, signs of an economic upturn are emerging as the government takes actions to stimulate domestic demand and as interest rates begin to decline. In emerging economies, recoveries have started mainly in Asia as strong internal demand and solid worldwide demand in the IT sector offset the negative effects of slow economic growth in China.

In Japan, the yen began to strengthen as the difference between U.S. and Japanese interest rates narrowed. As the yen appreciated to the highest level since July 2023, the economy continued to recover at a moderate pace. Consumer spending was generally flat as high prices held down purchases but real wages rose for the first time in 27 months.

2) Business Activities by Segment

Effective April 1, 2024, to increase the speed of growth strategy progress, the Toyota Tsusho Group has revised its organizational structure. In addition, the names of business divisions have been changed to more clearly express how they provide value to society and customers based on the missions of these divisions.

(I) Metal+(Plus)

To make the automotive steel sheet business in Japan more competitive, part of the Metals Business was divested and transferred to Toyota Steel Center Co., Ltd. and some other operations of this business were transferred to Prosteel Co., Ltd. in April 2024. Transfer and concentration of the automotive steel sheet business in Japan to subsidiaries are expected to raise efficiency and lead to more growth of this business in Japan.

(II) Circular Economy

Toyotsu Sorting Technology Corporation is building a factory in the city of Ako in Hyogo prefecture for the purpose of expanding the horizontal recycling of aluminum window sashes. Production at the factory is expected to begin in August 2025. The new factory will crush and sort discarded aluminum window sashes collected in the city for the removal of screws and other unwanted items. The sashes are then processed into aluminum that can be reused. Contributing to the recycling of aluminum will enable Toyotsu Sorting Technology Corporation to play an even greater role in helping achieve a circular economy and carbon neutrality.

(III) Supply Chain

Toyota Tsusho established a capital and business alliance with A1A Inc. for providing support to companies with global manufacturing operations and to companies that want to use even more advanced procurement methods. The alliance will be used by Toyota Tsusho to assist with the sale of UPCYCLE, a procurement cost optimization service for the automobile industry developed by A1A Inc. Using this capability is expected to enable Toyota Tsusho to provide fully integrated support to customers extending to the selection and consolidation of suppliers for procurement optimization on a global scale. Toyota Tsusho plans to use this support to play a role in raising the sophistication of the worldwide procurement and other purchasing activities of manufacturers.

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(IV) Mobility

Toyota Tsusho Manufacturing (Cambodia) Co., Ltd., which assembles motor vehicles, started in May 2024 the semi knock down production of the Hilux pickup truck and Fortuner SUV of Toyota Motor Corporation at its new factory in the Phnom Penh Special Economic Zone. This new activity is expected to make a contribution to progress of the mobility industry in Cambodia. Production of these vehicles will strengthen the mobility value chain, create jobs and give people opportunities to learn new skills. This company looks forward to continuing to use the growth of the mobility industry to support economic and social progress in Cambodia.

(V) Green Infrastructure

In July 2024, New Chitose Airport started using service vehicles that are powered throughout the year by biodiesel for the reduction of CO2 emissions. This is a joint business of Toyota Tsusho, Japan Airlines Co.,Ltd., Secoma Company Limited and Chitose Airport Motor Service Co., Ltd. The fuel is produced by refining used cooking oil received from HOT CHEF fast food facilities of Seicomart convenience stores in Hokkaido. Using locally produced fuel derived by recycling a waste material will reduce CO2 emissions.

(VI) Digital Solutions

Toyota Tsusho signed a strategic partnership agreement with Keyfactor, Inc., a U.S. cybersecurity company, in September 2024 for the growth of the cybersecurity business. One goal is to further strengthen automotive cybersecurity by using a public key infrastructure (PKI). Providing cybersecurity services that are needed by many industries worldwide is another objective of this partnership. Toyota Tsusho will promote the social implementation of cryptographic technology centered on PKI and contribute to the construction of digital infrastructure that will realize a safe, secure, and friendly future.

(VII) Lifestyle

As part of its PATCHWORKS® project to promote a cir cular economy in the textile and fashion field, Toyota Tsusho participated in the Experience from the Ocean in Shibuya Project in August 2024. This event was organized by the SWiTCH Association of Sustainability to raise awareness of the need to deal with marine and other environmental issues. By using nylon-to-nylon textile recycling and other PATCHWORKS® initiatives, the goal is to cr eate a circular economy system towards the goal providing opportunities and futures for all discarded clothing to be revived as new clothing again.

(VIII) Africa

Toyota Tsusho Group member AEOLUS SAS was established to support green economic progress in Africa by operating a renewable energy business. In August 2024, this company and Scatec ASA, which is based in Norway, announced their participation in independent power producer (IPP) projects to construct, own, operate 100MW solar power plants and sell electricity in Tunisia. This is Toyota Tsusho's first renewable energy business in Tunisia. The completion of construction and start of power sales are scheduled for the second half of 2025. Toyota Tsusho plans to use AEOLUS SAS for increasing the supply of renewable energy in Africa by developing projects that match the conditions and requirements of individual countries.

3) Operating Results

The Toyota Tsusho Group's consolidated revenue for the first six months of the fiscal year decreased 69.3 billion yen (1.3%) year on year to 5,065.9 billion yen, mainly due to the lower trading volume in the food business, despite the depreciation of the yen.

Consolidated operating profit increased 14.8 billion yen (6.3%) year on year to 247.9 billion yen due to an increase in gross profit, which offset higher selling, general and administrative expenses. Profit for the period (attributable to owners of the parent) increased 3.8 billion yen (2.1%) year on year to 181.5 billion yen, largely due to an increase in operating profit, despite a decrease in the share of profit (loss) from investments accounted for using the equity method caused by the worsening resource market conditions.

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Segment Information

(I) Metal+(Plus)

Profit for the period (attributable to owners of the parent) increased 4.7 billion yen (25.2%) year on year to 23.4 billion yen, largely due to an increase in trading volume of automobile production-related products mainly in North America.

(II) Circular Economy

Profit for the period (attributable to owners of the parent) decreased 7.3 billion yen (22.1%) year on year to 25.6 billion yen, largely due to the worsening resource market conditions.

(III) Supply Chain

Profit for the period (attributable to owners of the parent) increased 1.0 billion yen (4.2%) year on year to 23.9 billion yen, largely due to an increase in trading volume of automotive parts mainly in North America.

(IV) Mobility

Profit for the period (attributable to owners of the parent) decreased 0.8 billion yen (2.8%) year on year to 29.0 billion yen, largely due to a decrease in overseas automotive sales volume mainly in Europe and Asia/Oceania.

(V) Green Infrastructure

Profit for the period (attributable to owners of the parent) decreased 0.7 billion yen (5.2%) year on year to 12.1 billion yen. This decrease was largely due to the falling electricity prices in Europe and a valuation loss in the North American power generation business.

(VI) Digital Solutions

Profit for the period (attributable to owners of the parent) increased 1.3 billion yen (9.8%) year on year to 15.3 billion yen, largely due to the impact of a year-earlierone-time loss, despite a decrease in trading volume in the electronics business.

(VII) Lifestyle

Profit for the period (attributable to owners of the parent) increased 2.2 billion yen (32.6%) year on year to 8.9 billion yen, largely due to the impact of a one-time gain in the domestic food business, despite the falling market prices in the South American food business.

(VIII) Africa

Profit for the period (attributable to owners of the parent) increased 2.6 billion yen (7.1%) year on year to 39.6 billion yen, largely due to changes in the model mix, despite a decrease in automotive sales volume.

(2) Consolidated Financial Condition

As of September 30, 2024, consolidated assets totaled 6,930.9 billion yen, a 129.0 billion yen decrease from March 31, 2024. The decrease is attributable in part to a 128.9 billion yen decrease in other assets, a 72.2 billion yen decrease in trade and other receivables and a 27.5 billion yen decrease in cash and cash equivalents, despite an 88.4 billion yen increase in inventories and a 19.3 billion yen increase in investments accounted for using the equity method. Consolidated equity as of September 30, 2024 totaled 2,625.9 billion yen, a 5.8 billion yen increase from March 31, 2024. The increase is attributable in part to a 126.8 billion yen increase in retained earnings accruing from consolidated profit for the period (attributable to owners of the parent), despite a 91.7 billion yen decrease in financial assets measured at FVTOCI and a 19.1 billion yen decrease in exchange differences on translation of foreign operations.

(3) Outlook for Fiscal Year Ending March 31, 2025

The consolidated earnings forecast issued on April 26, 2024 remains unchanged.

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2. Consolidated Financial Statements

1. Consolidated Statements of Financial Position

		(Unit: Millions of yen)
	As of March 31, 2024	As of September 30, 2024
Assets
Current assets
Cash and cash equivalents	878,705	851,223
Trade and other receivables	1,797,818	1,725,640
Other financial assets	108,391	55,700
Inventories	1,203,659	1,292,023
Other current assets	207,998	232,477
Subtotal	4,196,573	4,157,065
Assets held for sale	－	22,215
Total current assets	4,196,573	4,179,280
Non-current assets
Investments accounted for using the	353,080	372,307
equity method
Other investments	835,601	706,752
Trade and other receivables	51,554	56,784
Other financial assets	68,398	60,212
Property, plant and equipment	1,139,178	1,141,749
Intangible assets	275,042	274,963
Investment property	17,007	16,196
Deferred tax assets	49,823	50,045
Other non-current assets	73,733	72,658
Total non-current assets	2,863,420	2,751,669
Total assets	7,059,994	6,930,950

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		(Unit: Millions of yen)
	As of March 31, 2024	As of September 30, 2024
Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables	1,643,777	1,620,409
Bonds and borrowings	626,510	621,632
Other financial liabilities	26,928	28,223
Income taxes payable	57,108	51,552
Provisions	8,271	8,060
Other current liabilities	233,012	227,403
Subtotal	2,595,607	2,557,281
Liabilities directly associated with	－	4,673
assets held for sale
Total current liabilities	2,595,607	2,561,954
Non-current liabilities:
Bonds and borrowings	1,361,558	1,301,466
Trade and other payables	111,982	112,751
Other financial liabilities	9,255	8,442
Retirement benefits liabilities	42,052	40,734
Provisions	75,804	77,470
Deferred tax liabilities	202,353	169,580
Other non-current liabilities	41,270	32,567
Total non-current liabilities	1,844,276	1,743,012
Total liabilities	4,439,884	4,304,967
Equity
Share capital	64,936	64,936
Capital surplus	43,119	42,309
Treasury shares	(3,774)	(3,764)
Other components of equity	542,830	434,832
Retained earnings	1,820,019	1,946,837
Total equity attributable to owners of
2,467,130	2,485,151
the parent
Non-controlling interests	152,979	140,832
Total equity	2,620,110	2,625,983
Total liabilities and equity	7,059,994	6,930,950

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1. Consolidated Statements of Profit or Loss and Comprehensive Income Consolidated Statements of Profit or Loss

		(Unit: Millions of yen)
	Six Months Ended	Six Months Ended
	September 30, 2023	September 30, 2024
Revenue
Sales of goods	5,028,150	4,919,469
Sales of services and others	107,084	146,450
Total revenue	5,135,235	5,065,920
Cost of sales	(4,614,655)	(4,523,384)
Gross profit	520,579	542,536
Selling, general and administrative expenses	(280,747)	(297,496)
Other income (expenses)
Gain (loss) on sale and disposals of non-current	841	278
assets, net
Impairment losses on non-current assets	－	(433)
Other, net	(7,525)	3,034
Total other income (expenses)	(6,684)	2,878
Operating profit	233,147	247,918
Finance income (costs)
Interest income	15,765	16,831
Interest expenses	(29,579)	(30,312)
Dividend income	17,656	20,209
Other, net	542	1,547
Total finance income (costs)	4,385	8,275
Share of profit (loss) of investments accounted for	16,577	11,915
using the equity method
Profit before income taxes	254,110	268,109
Income tax expense	(68,518)	(72,016)
Profit for the period	185,592	196,093
Profit for the period attributable to:
Owners of the parent	177,757	181,547
Non-controlling interests	7,834	14,545
Earnings per share attributable to owners of the parent
Basic earnings per share (yen)	168.39	171.98
Diluted earnings per share (yen)	－	－

Note: The Company conducted a 3-for-1 common stock split on July 1, 2024. Basic earnings per share and diluted earnings per share have been calculated as if this stock split had taken place at the beginning of the fiscal year ended March 31, 2024.

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Consolidated Statements of Comprehensive Income

		(Unit: Millions of yen)
	Six Months Ended	Six Months Ended
	September 30, 2023	September 30, 2024
Profit for the period	185,592	196,093
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans	77	159
Financial assets measured at fair value through	94,561	(93,227)
other comprehensive income
Share of other comprehensive income of
investments accounted for using the equity	333	1,514
method
Items that may be reclassified to profit or loss:
Cash flow hedges	7,957	2,501
Exchange differences on translation of foreign	102,362	(29,000)
operations
Share of other comprehensive income of	9,344	7,332
investments accounted for using the equity method
Other comprehensive income for the period, net of
214,637	(110,718)
tax
Total comprehensive income for the period	400,229	85,374
Total comprehensive income for the period
attributable to:
Owners of the parent	382,509	73,824
Non-controlling interests	17,719	11,549

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(3) Consolidated Statements of Changes in Equity

Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)

												(Unit: Millions of yen)
								Total equity attributable to owners of the parent
										Other components of equity
	Share		Capital		Treasury	Remeasurements		Financial		Exchange
	capital		surplus		shares	of defined		assets	Cash flow	differences on	Total
								benefit pension		measured at	hedges	translation of
								plans		FVTOCI*		foreign operations
Balance at the beginning of the	64,936		43,812		(3,750)	－	276,191	17,135	(10,613)	282,714
period
Profit for the period
Other comprehensive income
Remeasurements of defined								159					159
benefit pension plans
Financial assets measured at									94,910			94,910
FVTOCI*
Cash flow hedges											7,287		7,287
Exchange differences on												102,393	102,393
translation of foreign operations
Total comprehensive income for	－			－		－	159	94,910	7,287	102,393	204,752
the period
Dividends
Acquisition (disposal) of treasury			96		5
shares
Acquisition (disposal) of non-			(795)
controlling interests
Reclassification to retained earnings								(159)	(1,313)			(1,473)
Other			(4)
Total transactions with owners	－		(703)		5	(159)	(1,313)	－	－	(1,473)
Balance at the end of the period	64,936		43,109		(3,745)	－	369,788	24,423	91,780	485,992
	Total equity attributable to
	owners of the parent		Non-controlling
									Total equity
	Retained						interests
			Total
	earnings
Balance at the beginning of the	1,526,615		1,914,327		154,201		2,068,529
period
Profit for the period	177,757		177,757		7,834		185,592
Other comprehensive income
Remeasurements of defined					159		(24)		135
benefit pension plans
Financial assets measured at					94,910		(73)		94,837
FVTOCI*
Cash flow hedges					7,287		139		7,426
Exchange differences on					102,393		9,843		112,237
translation of foreign operations
Total comprehensive income for	177,757		382,509		17,719		400,229
the period
Dividends	(37,320)		(37,320)		(13,521)		(50,841)
Acquisition (disposal) of treasury					101				101
shares
Acquisition (disposal) of non-					(795)		(1,201)		(1,996)
controlling interests
Reclassification to retained earnings	1,473			－				－
Other	(327)		(331)		(1,637)		(1,968)
Total transactions with owners	(36,173)		(38,345)		(16,360)		(54,705)
Balance at the end of the period	1,668,198		2,258,491		155,561		2,414,052
* "Financial assets measured at FVTOCI" represents	"Financial assets measured at fair value through ot her comprehensive income."

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