Toyota Tsusho : 2nd Quarter of Fiscal year ending March 31, 2023

Toyota Tsusho Corporation

Financial Highlights

for the Six Months Ended September 30, 2022

[IFRS basis] (Consolidated)

		October 28, 2022
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]
Scheduled dates:
Submission of quarterly securities report	November 11, 2022
Dividend payout		November 25, 2022
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, 2022 (April 1, 2022 to September 30, 2022)

(1) Operating Results												(Percentage figures represent year-on-year changes)
									Profit before				Profit attributable to	Total
			Revenue		Operating profit	Profit		comprehensive
				income taxes		owners of the parent
												income
Six Months ended	million yen	%		million yen	%	million yen	%	million yen		%		million yen		%	million yen		%
Sept. 30, 2022	4,907,747	31.1		207,983	39.2	232,035	31.3	170,830		21.6		151,280		18.6	306,094		111.6
Sept. 30, 2021	3,744,666	37.0		149,417	107.5	176,755	138.0	140,521		184.0		127,573		206.0	144,654		60.5
		Basic earnings per share	Diluted earnings per share
Six Months ended						yen						yen
Sept. 30, 2022						429.95
Sept. 30, 2021						362.59						－
Note: "Basic earnings per share" is calculated based on "Profit attributable to owners of the parent."
(2) Financial Position
				Total assets		Total equity			Equity attributable to	Ratio of equity attributable to
							owners of the parent	owners of the parent to total assets
As of				million yen			million yen		million yen						%
September 30, 2022				6,694,263				2,017,298			1,858,627				27.8
March 31, 2022				6,143,125				1,942,860			1,735,011						28.2
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								70.00										90.00		160.00
March 31, 2022
Year ending								96.00						－
March 31, 2023
			－
Year ending
March 31, 2023								－		－				－				96.00		192.00
(forecast)

Note: Dividend forecasts have been revised since the last release.

For more details on the revision to dividend forecasts, please refer to the "Notice concerning Revision of Consolidated Earnings Forecast, Interim Dividend, and Revision of Year-End Dividend for the fiscal year ending March 31, 2023" released

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today (October 28, 2022).

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)

	(Percentage figures represent year-on-year changes)
	Profit attributable to owners of	Basic earnings per share
	the parent
	million yen		%	yen
Full year	270,000		21.5	767.36

Note: Earnings forecasts have been revised since the last release.

For more details on the revision to consolidated earnings forecasts, please refer to the "Notice concerning Revision of Consolidated Earnings Forecast, Interim Dividend, and Revision of Year-End Dividend for the fiscal year ending March 31, 2023" released today (October 28, 2022).

*Notes

1. Changes affecting the consolidation status of significant subsidiaries (changes in specified subsidiary resulting in change 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, 2022:	354,056,516 shares
March 31, 2022:	354,056,516 shares

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

September 30, 2022:	2,190,751 shares
March 31, 2022:	2,210,755 shares

3) Average Number of shares outstanding during the period:

Six Months ended September 30, 2022:	351,854,642 shares
Six Months ended September 30, 2021:	351,842,029 shares

*Quarterly review status

This report is exempt from the quarterly review by certified public accountant or 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 Tuesday, November 1, 2022. 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.

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1. Consolidated Results of Operations

1. Overview of Operating Performance 1) Business Environment

In the first six months of the fiscal year (April 1, 2022 - September 30, 2022), due to the prolongation of the war in Ukraine, commodity prices surged higher, global inflation ran rampant, and the recovery of the global economy was hobbled. In addition, concerns of slowing economic growth were heightened by the impacts of China upholding its zero-COVID-19 policy and global monetary tightening, among other factors.

In the U.S. economy, business sentiment improved on the back of favorable employment and income conditions, as well as firm consumer spending, mainly as a result of wage hikes designed to boost employee retention. On the other hand, the impacts of rising inflation and the continuation of aggressive policy interest rate hikes cast an increasingly darker shadow over the outlook for the future. Meanwhile, the European economy was impacted by the war in Ukraine and skyrocketing energy costs drove commodity prices higher, stoking fears of an economic recession. The recovery of the Chinese economy was weighed down primarily by lockdowns in some cities and sluggish property sales caused by a resurgence in COVID-19 infections, even though consumer spending and industrial production picked up again after Shanghai's city-wide lockdown was lifted. In emerging market economies, business sentiment improved on the resumption of economic activity and the easing of supply constraints, which were the main factors behind a rebound in manufacturing and consumer spending.

In this environment, even though manufacturing sector activity improved and consumer spending started recovering by virtue of economic normalization and the easing of supply constraints, the pace of recovery in the Japanese economy slowed because of the downward pressure exerted by the yen's sharp depreciation and rising commodity prices. Furthermore, the prolonged war in Ukraine and fears of an economic recession overseas, among other factors, meant the future outlook grew increasingly uncertain.

1. Business Activities by Segment
   (I) Metals

Toyota Tsusho Material Incorporated concluded a partnership agreement with Fukuoka Toyota Corporation, Toyota Motor Kyushu, Inc., and Aioi Nissay Dowa Insurance Co., Ltd. for the purpose of enhancing disaster response capabilities in regional areas with the use of Re-Q, a power supply kit for hybrid vehicles. The partnership is supported by the Fukuoka prefectural cities of Miyawaka, Kurume, and Miyama, along with the town of Hirokawa. A network will be established so that each municipality can offer assistance to each other with the use of vehicles equipped with Re-Q. The partnership will aim to further expand this network in the future.

(II) Global Parts & Logistics

With the aim of achieving a car-to-car circular economy, in April 2023 we plan to launch a business in Vietnam for the recycling of nylon scraps produced during the manufacturing of airbags. We will look to collaborate with Toyota Group companies in Vietnam and develop a business that lowers CO2 emissions and contributes to low-carbon airbag manufacturing by establishing recycling processes.

(III) Automotive

With the objective of increasing vaccination rates in developing countries by improving vaccine transportation, in August 2022, ahead of the 8th Tokyo International Conference on African Development (TICAD 8), we donated a refrigerated vaccine transportation vehicle to the Ministry of Health in the Republic of Tunisia. The vehicle has been accredited with the World Health Organization's medical equipment PQS (Performance, Quality and Safety) certification. In this way, we hope to contribute to improving global health by supplying refrigerated vaccine transportation vehicles.

(IV) Machinery, Energy & Projects

In order to further expand our renewable energy business, in August 2022 we acquired the remaining 40% of the shares of Eurus Energy Holdings Corporation from Tokyo Electric Power Company Holdings, Inc., thereby making it a wholly owned subsidiary. By pushing ahead with carbon neutrality initiatives, we seek to contribute to the transition to a carbon-free society.

(V) Chemicals & Electronics

In order to create businesses in, and expand markets for, conversational AI products, we decided to jointly develop a conversational AI system with emotivE Inc., a one-stop provider of communication AI planning, development, and services. Through this joint development initiative, we will aim to create businesses and expand markets, and we will also seek to help bring about Society 5.0 mainly by solving social issues facing the senior generation, and developing the smart home market and mobility technologies.

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(VI) Food & Consumer Services

With the aim of providing high-quality medical treatment-related services, such as linen supply, to hospitals in India, we started making preparations to establish Valabhi Hospital Services Private Limited, a joint venture with Tokai Corporation. By establishing a new linen supply business model and providing high-quality medical treatment-related services to India's hospital market, we hope to provide safer medical care that offers greater peace of mind and to contribute to the advancement of regional healthcare.

(VII) Africa

At the 8th Tokyo International Conference on African Development (TICAD 8), we further strengthened our relationships with governments and partner companies by meeting with the leaders and cabinet ministers of the major African nations, and signed a total of 25 memoranda of understanding (MOU). With the Republic of Tunisia, the host nation of TICAD 8, we concluded a comprehensive MOU on strategic collaboration to conduct studies on desalination with the use of renewable energy. Going forward, we intend to do more than just solve social issues in Africa by pursuing future-oriented businesses that create value.

3) Operating Results

The Toyota Tsusho Group's consolidated revenue for the six months ended September 30, 2022 increased 1,163.1 billion yen (31.1%) year on year to 4,907.7 billion yen due to growth in automotive sales volume, increases in metal market prices, and rising electricity prices in Europe.

Consolidated operating profit increased 58.5 billion yen (39.2%) year on year to 207.9 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 23.7 billion yen (18.6%) year on year to 151.2 billion yen, largely due to an increase in operating profit as well as increases in the share of profit (loss) of investments accounted for using the equity method, despite the impact of a year-earlierone-time gain.

Segment Information

(I) Metals

Profit for the period (attributable to owners of the parent) increased 0.9 billion yen (2.0%) year on year to 45.3 billion yen, largely due to higher market prices and an increase in trading volume of automobile production-related products in Asia/Oceania, despite the impact of a year-earlierone-time gain.

(II) Global Parts & Logistics

Profit for the period (attributable to owners of the parent) increased 3.6 billion yen (28.3%) year on year to 16.3 billion yen, largely due to an increase in trading volume of automotive parts in North America and Asia/Oceania.

(III) Automotive

Profit for the period (attributable to owners of the parent) increased 10.6 billion yen (84.7%) year on year to 23.1 billion yen, largely due to an increase in sales volume handled by overseas automotive dealerships mainly in Asia/Oceania.

(IV) Machinery, Energy & Projects

Profit for the period (attributable to owners of the parent) increased 1.4 billion yen (7.7%) year on year to 19.4 billion yen, largely due to rising electricity prices in Europe, despite the impact of a year-earlierone-time gain.

(V) Chemicals & Electronics

Profit for the period (attributable to owners of the parent) increased 3.2 billion yen (14.5%) year on year to 25.3 billion yen, largely due to an increase in trading volume in the electronics business and higher market prices in the chemical business.

(VI) Food & Consumer Services

Profit for the period (attributable to owners of the parent) decreased 2.1 billion yen (42.9%) year on year to 2.8 billion yen, largely due to higher transportation costs in the South American food business.

(VII) Africa

Profit for the period (attributable to owners of the parent) increased 6.4 billion yen (46.2%) year on year to 20.3 billion yen, largely due to an increase in sales volume handled by automotive dealerships.

(2) Consolidated Financial Condition

At September 30, 2022, consolidated assets totaled 6,694.2 billion yen, a 551.1 billion yen increase from March 31, 2022. The increase is attributable in part to a 200.7 billion yen increase in inventories, a 90.4 billion yen increase in

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property, plant and equipment, a 72.2 billion yen increase in cash and cash equivalents, and a 71.3 billion yen increase in trade and other receivables. Consolidated equity at September 30, 2022 totaled 2,017.2 billion yen, a 74.4 billion yen increase from March 31, 2022. The increase is attributable in part to a 120.4 billion yen increase in retained earnings accruing from consolidated profit for the period (attributable to owners of the parent).

(3) Outlook for Fiscal Year Ending March 31, 2023

The consolidated earnings forecast issued on April 28, 2022 has been revised in light of performance in the first six months of the fiscal year (April 1, 2022 - September 30, 2022) and the future outlook. The forecast figure for profit attributable to owners of the parent (210 billion yen) has been revised upward by 60 billion yen (28.6%) to 270 billion yen.

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