Toyota Tsusho : 2nd Quarter of Fiscal year ending March 31, 2024

(Percentage figures represent year-on-yearchanges)

Toyota Tsusho Corporation

Financial Highlights for the Six Months Ended September 30, 2023

[IFRS basis] (Consolidated)

		October 31, 2023
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 10, 2023
Dividend payout		November 27, 2023
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, 2023

(April 1, 2023 to September 30, 2023)

(1) Operating Results

										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, 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
September 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
		Basic earnings per share		Diluted earnings per share
Six Months ended						yen						yen
September 30, 2023					505.18							－
September 30, 2022					429.95							－
Note: "Basic earnings per share" is calculated based on "Profit attributable to owners of the parent."
(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, 2023					7,027,651			2,414,052					2,258,491			32.1
March 31, 2023					6,377,064			2,068,529					1,914,327			30.0
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, 2023				－			96.00					－		106.00		202.00
Year ending March 31, 2024				－			125.00
Year ending March 31, 2024														－		125.00		250.00
(forecast)

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

For more details on the revision to dividend forecasts, please refer to "Notice concerning Revision of Consolidated Earnings Forecast, Interim Dividend, and Revision of Year-end Dividend for the fiscal year ending March 31, 2024" released today (October 31, 2023).

3. Forecast of Consolidated Earnings for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentage figures represent year-on-year changes)

	Profit attributable to owners of the parent	Basic earnings per share
	million yen	%	yen
Full year	320,000	12.6	909.43

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

For more details on the revision to consolidated earnings forecasts, please refer to "Notice concerning Revision of Consolidated Earnings Forecast, Interim Dividend, and Revision of Year-end Dividend for the fiscal year ending March 31, 2024" released today (October 31, 2023).

*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: Yes
   2. Changes other than the above 1): None
   3. Changes in accounting estimates: None

Note: For details, please refer to "2. (5) (Changes in Accounting Policy) on page 12.

(3) Number of issued shares (common stock)

1) Number of issued shares at end of period (Treasury shares included):

September 30, 2023:	354,056,516 shares
March 31, 2023:	354,056,516 shares

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

September 30, 2023:	2,178,227 shares
March 31, 2023:	2,192,845 shares

• 1. Average number of shares outstanding during the period:
     Six Months ended September 30, 2023: 351,869,619 shares
     Six Months ended September 30, 2022: 351,854,642 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 Thursday, November 2, 2023. 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, 2023 - September 30, 2023), inflation began to decline worldwide. However, prices are still climbing at a rapid pace due to strong consumer spending, in part due to the use of savings for expenditures, and another increase in the cost of crude oil as Saudi Arabia and other OPEC+ members reduced output. Furthermore, many countries are having difficulty repaying debt due to an increase in interest payments because of high interest rates and in China the real estate market is worsening. Due to these events, there are concerns about a possible slowdown of the global economy.

In the U.S, the labor market has settled down but unemployment is still low and consumer spending is firm. As a result, inflation and interest rates remain high. Capital expenditures are relatively strong but the outlook is uncertain partly because of signs that banks are tightening terms for new loans. In Europe, consumer spending slowed down somewhat due to inflation fueled by many demands for higher wages and to consistently high interest rates. Signs of an improvement in the economy are appearing, notably a decline in the increase in prices of food and other products. In China, worries about the economic outlook are increasing. To support the economy, the Bank of China has cut interest rates twice and the government is taking actions to stimulate internal demand. However, consumer sentiment is declining because of worries about an economic downturn caused by the real estate market. In addition, sales of residences continue to be slow. In emerging market economies, economic growth rates are decreasing because of persistent inflation and weak external demand.

In Japan, the economy has been growing slowly with the support of the return of foreign tourists and a recovery of exports as restrictions on the output of manufacturers caused by shortages of semiconductors and other parts eased. Real wages in Japan have been decreasing, even after the spring labor offensive, as consumer prices remain high. In addition, China's actions in response to the Fukushima waste water release are impacting the Japanese economy. Consequently, there are still concerns about whether or not a broad-based economic recovery is possible.

2) Business Activities by Segment

Automotive division was renamed Mobility division on April 1, 2023.

(I) Metals

In June 2023, we purchased stock of LIGHTz Inc. through a third-party allocation for the purpose of using this company as part of measures to solve issues at manufacturers through the digital transformation of production processes. Our goals are to assist with passing on traditional Japanese manufacturing skills and contributing to the future of manufacturing by speeding up reforms of client manufacturers' business processes and enabling them to create even more added value.

(II) Global Parts & Logistics

In India, Toyota Tsusho, Musashi Seimitsu Industry Co., Ltd. and Delta Electronics, Inc. reached an agreement in September 2023 to jointly established a company for the production and sale e-Axle for two-wheeled vehicles. The new company is expected to be a global leader in this market as the number of electric two-wheeled vehicles increases in order to play a role in achieving carbon neutrality.

(III) Mobility

In June 2023, we made an investment of about US$3 million in MOOVA Inc., which operates a digital platform service for last-mile delivery. The objective is to help solve social issues involving the logistics industry in Central and South America. Utilizing digital technologies in the last-mile delivery sector is expected to improve the efficiency of the entire logistics industry and contribute to achieving carbon neutrality.

(IV) Machinery, Energy & Projects

In April 2023, North Hokkaido Wind Energy Transmission Corporation started commercial operation of a power transmission and substation system. Located in northern Hokkaido, where the power transmission network was inadequate, the system consists of about 78 kilometers of transmission lines and the largest lithium-ion storage battery in Japan. This wind energy company was established and is owned by Eurus Energy Holdings Corporation and other companies. In nearby areas, three companies including one affiliated with Eurus Energy are constructing a wind power facility scheduled for completion in 2025 that will have an output of about 540MW, making it one of the largest in Japan.

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(V) Chemicals & Electronics

In June 2023, Toyota Tsusho and Toyota Motor North America, Inc. jointly announced an additional investment of US$210 million in Toyota Battery Manufacturing, North Carolina. This cutting-edge automotive battery production facility is currently under construction. Its primary objective is to manufacture and supply lithium-ion batteries essential for electric vehicles, meeting the surging demand while actively contributing to the pursuit of carbon neutrality.

(VI) Food & Consumer Services

Trial operations started in July 2023 for the collection of used fishing nets with the cooperation of fishing organizations in the Sotobo region of Chiba prefecture. Used fishing nets that are left in the sea are one of the primary sources of plastic waste in the ocean. In Japan, discarded fishing nets are usually processed as industrial waste. We are using the expertise of Bureo Inc., a U.S.-based company where we have an equity interest, to use a nylon-to-nylon fiber recycling scheme for the expansion of activities for collecting used fishing nets. We plan to use this recycling scheme to establish an infrastructure for supplying nylon produced entirely from used fishing nets.

(VII) Africa

There is an urgent need for reliable and inexpensive electricity in the Republic of Benin. In August 2023, we received an order for the construction of a 25MW solar power plant from Beninese Electricity Production Company, which is operated under the Ministry of Energy and Water. This is the first large renewable energy generation construction project order received by a Japanese company in western Africa. The project is to be completed in 2025. Once operational, the solar power plant is expected to help maintain a sufficient supply of electricity in Benin and enable consistent economic growth.

3) Operating Results

The Toyota Tsusho Group's consolidated revenue for the six months ended September 30, 2023 increased 227.5 billion yen (4.6%) year on year to 5,135.2 billion yen, mainly due to growth in automotive sales volume and an increase in trading volume of automobile production-related products, despite a decline in metal market prices and falling electricity prices in Europe.

Consolidated operating profit increased 25.2 billion yen (12.1%) year on year to 233.1 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 26.5 billion yen (17.5%) year on year to 177.7 billion yen, largely due to an increase in operating profit, despite a decrease in the share of profit (loss) of investments accounted for using the equity method due to falling electricity prices in Europe and deterioration in interest expenses.

Segment Information

(I) Metals

Profit for the period (attributable to owners of the parent) decreased 8.7 billion yen (19.2%) year on year to 36.6 billion yen, largely due to falling market prices, despite an increase in trading volume of automobile production- related products.

(II) Global Parts & Logistics

Profit for the period (attributable to owners of the parent) increased 6.6 billion yen (40.3%) year on year to 22.9 billion yen, largely due to an increase in trading volume of automotive parts mainly in Japan and North America.

(III) Mobility

Profit for the period (attributable to owners of the parent) increased 6.7 billion yen (28.9%) year on year to 29.8 billion yen, largely due to an increase in sales volume handled by overseas automotive dealerships mainly in Europe.

(IV) Machinery, Energy & Projects

Profit for the period (attributable to owners of the parent) decreased 6.6 billion yen (33.9%) year on year to 12.8 billion yen, largely due to falling electricity prices in Europe.

(V) Chemicals & Electronics

Profit for the period (attributable to owners of the parent) increased 3.6 billion yen (14.1%) year on year to 28.9 billion yen, largely due to an increase in trading volume of automobile production-related products in the electronics

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business and automotive materials business.

(VI) Food & Consumer Services

Profit for the period (attributable to owners of the parent) increased 3.9 billion yen (139.2%) year on year to 6.7 billion yen, largely due to the falling transportation costs in the South American food business.

(VII) Africa

Profit for the period (attributable to owners of the parent) increased 16.7 billion yen (81.4%) year on year to 37.0 billion yen, largely due to an increase in sales volume handled by automotive dealerships, especially in the West African region.

(2) Consolidated Financial Condition

As of September 30, 2023, consolidated assets totaled 7,027.6 billion yen, a 650.6 billion yen increase from March 31, 2023. The increase is attributable in part to increases in other investments of 151.4 billion yen and trade and other receivables of 121.4 billion yen. Consolidated equity as of September 30, 2023 totaled 2,414.0 billion yen, a

345.5 billion yen increase from March 31, 2023. The increase is attributable in part to an increase of 141.5 billion yen in retained earnings accruing from consolidated profit for the period (attributable to owners of the parent), and increases in exchange differences on translation of foreign operations of 102.3 billion yen and financial assets measured at FVTOCI of 93.6 billion yen.

(3) Outlook for Fiscal Year Ending March 31, 2024

The consolidated earnings forecast issued on July 28, 2023 has been revised in light of performance in the first six months of the fiscal year (April 1, 2023 - September 30, 2023) and the future outlook. The forecast figure for profit attributable to owners of the parent (300 billion yen) has been revised upward by 20 billion yen (6.7%) to 320 billion yen.

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2. Consolidated Financial Statements

1. Consolidated Statements of Financial Position

		(Unit: Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and cash equivalents	771,613	786,480
Trade and other receivables	1,730,426	1,851,880
Other financial assets	125,913	119,767
Inventories	1,227,393	1,299,404
Other current assets	213,408	222,493
Total current assets	4,068,756	4,280,026
Non-current assets
Investments accounted for using the	299,378	359,543
equity method
Other investments	623,951	775,316
Trade and other receivables	42,598	51,186
Other financial assets	49,625	70,697
Property, plant and equipment	1,004,064	1,102,835
Intangible assets	184,001	268,391
Investment property	17,303	17,109
Deferred tax assets	36,835	45,481
Other non-current assets	50,549	57,064
Total non-current assets	2,308,308	2,747,625
Total assets	6,377,064	7,027,651

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		(Unit: Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables	1,636,877	1,737,675
Bonds and borrowings	746,668	781,369
Other financial liabilities	24,146	29,059
Income taxes payable	49,129	50,261
Provisions	8,080	8,152
Other current liabilities	211,873	218,938
Total current liabilities	2,676,775	2,825,456
Non-current liabilities:
Bonds and borrowings	1,275,032	1,350,912
Trade and other payables	97,642	113,563
Other financial liabilities	8,214	8,443
Retirement benefits liabilities	46,152	47,662
Provisions	57,586	66,024
Deferred tax liabilities	121,068	173,249
Other non-current liabilities	26,061	28,286
Total non-current liabilities	1,631,759	1,788,142
Total liabilities	4,308,535	4,613,598
Equity
Share capital	64,936	64,936
Capital surplus	43,812	43,109
Treasury shares	(3,750)	(3,745)
Other components of equity	282,714	485,992
Retained earnings	1,526,615	1,668,198
Total equity attributable to owners of
1,914,327	2,258,491
the parent
Non-controlling interests	154,201	155,561
Total equity	2,068,529	2,414,052
Total liabilities and equity	6,377,064	7,027,651

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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, 2022	September 30, 2023
Revenue
Sales of goods	4,812,830	5,028,150
Sales of services and others	94,917	107,084
Total revenue	4,907,747	5,135,235
Cost of sales	(4,424,312)	(4,614,655)
Gross profit	483,434	520,579
Selling, general and administrative expenses	(253,758)	(280,747)
Other income (expenses)
Gain (loss) on sale and disposals of non-current	391	841
assets, net
Impairment losses on non-current assets	(4)	－
Other, net	(22,079)	(7,525)
Total other income (expenses)	(21,692)	(6,684)
Operating profit	207,983	233,147
Finance income (costs)
Interest income	8,391	15,765
Interest expenses	(19,341)	(29,579)
Dividend income	14,450	17,656
Other, net	900	542
Total finance income (costs)	4,400	4,385
Share of profit (loss) of investments accounted for	19,652	16,577
using the equity method
Profit before income taxes	232,035	254,110
Income tax expense	(61,204)	(68,518)
Profit for the period	170,830	185,592
Profit for the period attributable to:
Owners of the parent	151,280	177,757
Non-controlling interests	19,550	7,834
Earnings per share attributable to owners of the parent
Basic earnings per share (yen)	429.95	505.18
Diluted earnings per share (yen)	－	－

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Consolidated Statements of Comprehensive Income

		(Unit: Millions of yen)
	Six Months ended	Six Months ended
	September 30, 2022	September 30, 2023
Profit for the period	170,830	185,592
Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans	1,044	77
Financial assets measured at fair value through	(5,389)	94,561
other comprehensive income
Share of other comprehensive income of
investments accounted for using the equity	(723)	333
method
Items that may be reclassified to profit or loss:
Cash flow hedges	10,988	7,957
Exchange differences on translation of foreign	114,777	102,362
operations
Share of other comprehensive income of	14,566	9,344
investments accounted for using the equity method
Other comprehensive income for the period, net of
135,263	214,637
tax
Total comprehensive income for the period	306,094	400,229
Total comprehensive income for the period
attributable to:
Owners of the parent	268,049	382,509
Non-controlling interests	38,044	17,719

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(3) Consolidated Statements of Changes in Equity

Six Months ended September 30, 2022 (April 1, 2022 to September 30, 2022)

															(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		156,047		(3,769)			－		280,549	2,084	(65,190)	217,444
period
Profit for the period
Other comprehensive income
Remeasurements of defined									1,009						1,009
benefit pension plans
Financial assets measured at												(5,670)			(5,670)
FVTOCI*
Cash flow hedges														9,220		9,220
Exchange differences on															112,210	112,210
translation of foreign operations
Total comprehensive income for	－			－			－		1,009		(5,670)	9,220	112,210	116,769
the period
Dividends
Acquisition (disposal) of treasury			55		29
shares
Acquisition (disposal) of non-			(112,832)
controlling interests
Reclassification to retained									(1,009)		223			(785)
earnings
Other
Total transactions with owners	－		(112,777)		29		(1,009)		223	－	－	(785)
Balance at the end of the period	64,936		43,270		(3,740)			－		275,102	11,305	47,020	333,427
	Total equity attributable to
	owners of the parent		Non-controlling
								Total equity
	Retained						interests
		Total
	earnings
Balance at the beginning of the	1,300,352		1,735,011		207,848			1,942,860
period
Profit for the period	151,280		151,280		19,550			170,830
Other comprehensive income
Remeasurements of defined				1,009		(4)			1,004
benefit pension plans
Financial assets measured at				(5,670)		(403)			(6,073)
FVTOCI*
Cash flow hedges				9,220		3,519			12,740
Exchange differences on				112,210		15,382			127,592
translation of foreign operations
Total comprehensive income for	151,280		268,049		38,044			306,094
the period
Dividends	(31,685)		(31,685)		(15,151)			(46,836)
Acquisition (disposal) of treasury						84						84
shares
Acquisition (disposal) of non-				(112,832)		(71,755)			(184,587)
controlling interests
Reclassification to retained	785				－						－
earnings
Other								(315)			(315)
Total transactions with owners	(30,900)		(144,433)		(87,221)			(231,655)
Balance at the end of the period	1,420,732		1,858,627		158,671			2,017,298

• "Financial assets measured at FVTOCI" represents "Financial assets measured at fair value through other comprehensive income."
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