Business Reports of FY2021[PDF:1.6MB]

The following is an unofficial translation of the Japanese-language original version, and is provided for your convenience only, without any warranty as to its accuracy or as to the completeness of the information. The Japanese original version of the notice is the sole official version. If there are any discrepancies between the Japanese original version and the English translation, the Japanese original version prevails and the company disclaims all responsibility for and results of the discrepancies.

To Our Cherished Shareholders

Toyota Tsusho is deeply indebted to all of its shareholders for their continued kindness and encouragement.

Our company plans to convene its 101st Ordinary General Meeting of Shareholders as described on the following page. Please accept this letter as a notice of convocation.

Although approximately two years have passed since COVID-19 began sweeping the globe, the pandemic has yet to show signs of retreat. Once again, starting with medical personnel, I would like to express my most profound respect to all those who are endeavoring on the front lines to protect lives and livelihoods.

Amid major changes in the world, the business environment surrounding us is changing drastically in terms of both speed and scale. Those changes include the profound transformation-the likes of which are said to come only once every 100 years-that the automotive industry is now undergoing, the Fourth Industrial Revolution, the software revolution, digital transformation, the need to achieve carbon neutrality, and the rise of infectious diseases and geopolitical risks. At the same time, the current situation presents us with an opportunity to ascend to a new stage, and we are now standing at a starting point for new growth.

Looking back on our history, our company has continuously evolved and grown, such as by expanding its existing automotive industry-centered businesses, merging with Tomen, and gaining a subsidiary in the form of CFAO.

Toward our next new stage, we have embarked on a journey to become a one-and-only presence that leads and stays ahead of the times by building on the foundation of our distinctive traits as Toyota Tsusho and repeatedly evolving.

With "Be the Right ONE" as our global vision, we will strive to be an irreplaceable and indispensable presence for our customers, suppliers, partners, shareholders, local communities, and future society around the world.

I would like to express our company's sincere gratitude to all of our shareholders for their understanding and backing of the Toyota Tsusho Group, and I humbly request your continued support.

Sincerely yours,

Ichiro Kashitani

President & CEO

June 2022

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We in the Toyota Tsusho Group deliver to nations around the world a diverse range of products and services essential for building prosperous and comfortable societies.

We are guided by a four-tier philosophy that enables us to successfully meet the challenges of each new age.

Unchanging ideals that should be passed on to the future

The Toyota Tsusho Group Way (Toyotsu Group Way)

The bedrock principles that all Toyota Tsusho Group employees should share and the values that should be embodied in their actions to realize our fundamental philosophy and achieve our vision

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-Global Vision -established in 2016-

Our Global Vision sets the direction of the Toyota Tsusho Group's continued evolution as a true global company .It sets forth guidelines to which our entire global workforce should aspire.

Global Vision - Ideal Image

The TTC Group will evoke our ideal as

The Right ONE for you

The best assurance of safety, quality, and reliability

- based on your needs (Genba)

The Right ONE for us

Maximization of individual capabilities, global networks and diversity to create synergistic strengths

The Right ONE for future

Unique insights and capabilities to explore

new possibilities for future and sustainable society

Global Vision - Toyotsu Core Values

Under our Global Vision, we have made a more explicit commitment to emphasize the importance of an environmental consciousness, and our contributions to a convenient, comfortable, healthy and sustainable society.

Mobility

A focused field that contributes to future convenient society

Toyotsu

Core

Values

Toyotsu

Group

Way

Life & Community

A focused field that contributes to comfortable & healthy society

Resources & Environment

A focused field that contributes to sustainable society.

• Genba-focus
• Collective force
• Innovator spirit
• Genchi, Genbutsu, Genjitsu (On site, Hands on, In touch)
• Team Power (Team work)
• Shokon (A passion for business)

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Toward Sustainable Growth

Key Sustainability Initiatives for the Toyota Tsusho Group

The Toyota Tsusho Group has identified six Key Sustainability Issues (Materiality) that it needs to be aware of as it pursues the realization of its corporate philosophy and Global Vision to clarify those social issues that it needs to focus on based on its management strategies.

Materiality is incorporated into the strategy of the divisions, and each division reports on their progress to the Sustainability Management Committee, and conducts a review as appropriate, taking into account changing trends in international society, environmental changes for the Toyota Tsusho Group, and so on.

To facilitate visualization of the impact of the Company's business activities on sustainable development themes, we have formulated medium-term KPIs for each materiality issue, and will apply the plan-do-check-act (PDCA) cycle.

Both the company and employees are achieving sustainable growth and contributing to solutions to social issues and the realization of the Sustainable Development Goals (SDGs) by each employee engaging in business activities with an awareness of these Materialities.

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Setting our sights on carbon neutrality

～The Toyota Tsusho Group's carbon neutral declaration～

Decarbonization is one of the Toyota Tsusho Group's material sustainability issues, and the Group as a whole is currently working towards the goal of carbon neutrality. As a concrete policy geared towards contributing to the transition to a decarbonized society, in July 2021 we formulated a 2050 carbon neutrality target with an initial goal of achieving a 50% reduction in the volume of greenhouse gas emissions (Scopes 1* and 2*) generated through the business activities of the Group (Toyota Tsusho Corporation and its consolidated subsidiaries in Japan and overseas) by the year 2030 compared to 2019 levels.

The Group aims to achieve this goal by making an all-out effort to promote energy saving and the use of renewable energy by, for example, switching to LED lighting at offices and plants and installing solar power generation equipment on the rooftops of the buildings we own. In addition, the Group will work to reduce greenhouse gas emissions by changing the types of fuel used in production processes and logistics operations, consuming fuel more efficiently, and minimizing emissions through technological innovation.

A strength of Toyota Tsusho Group is that we are able to accelerate and drive forward, on a Group-wide basis, businesses that contribute to reducing greenhouse gas emissions throughout industrial life cycles. All Group employees will make a concerted and committed effort to help address societal issues.

*Scope 1: Greenhouse gases emitted directly through the Group's own fuel consumption (coal, gas, etc.).

*Scope 2: Greenhouse gases emitted indirectly through the use of purchased electricity and heat.

Reduction target

・We aim to be carbon neutral by 2050

・We aim for a 50% reduction in GHG by 2030 compared to 2019

Included：Parent company, domestic and overseas consolidated subsidiaries (Scope 1、Scope 2)

*Scope 3 promotes specific initiatives with suppliers and customers to reduce GHG emissions throughout the value chain.

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