Toyota Tsusho Corporation

Hello, everyone. I am Kashitani, president of Toyota Tsusho Corporation. First, I would like to express my appreciation for your continued support to our businesses. I thank you from the bottom of my heart. Later, Mr. Iwamoto, our CFO, will explain our financial results. But thanks to you, we were able to achieve good results. However, as for the second half of the year, I think we are in an uncertain situation. Against that background, we are determined not to cause any disruption to the supply chains of our customers and continue supporting our customers so that they can continue their production and sales without any concern. Currently, tough situation is continuing around the world. We want to continue making efforts so that we can protect employment all over the world, reward good business results with dividend increase, and make contribution to the society by creating job through making investments. Just like the last time, we decided to livestream this presentation to prevent spread of COVID-19 infection. Although we want to talk to you directly in front of you as soon as possible, please allow us to speak online this time again.

Thank you very much.

Hello everyone, I will explain the outline of consolidated results for the second quarter of FY 2021. Please look at the upper left of the page 3. Regarding the foreign exchange rate, US dollar is 110 yen, 3 yen depreciation from the previous year. Euro is 131 yen, 10 yen depreciation from the previous year. Gross profit was 363.4 billion yen, an increase of 101.2 billion yen. Part of the reason behind this is that the result of the previous year was influenced by the pandemic. But the main reason is the increase of automobile production and sales. Operating profit increased by 77.5 billion yen to 149.4 billion yen. As the gross profit increased, SG&A expenses also increased. However, SG&A expenses was around 20 billion yen, and as a result, gross profit increased by around 77.5 billion yen. Profit attributable to owners of the parent almost tripled from the previous year. It increased by 85.9 billion yen to 127.5 billion yen. Page 4 shows the profit analysis. The waterfall chart explains the overall profit and operating profit. Difference between the profit of the last year on the left side and the profit of this year on the right side is 85.9 billion yen.