Happy New Year, everyone!
At the start of the year, I would like to extend my best wishes for a wonderful new year to all Toyota Tsusho Group employees and their families around the world.
As we welcome this new year of 2024, I would like to reflect on last year and talk about what I would like everyone to engage in this year.
Before that, I would like to say a few words.
I wish to offer my sincere prayers for the repose of souls of all those who lost their precious lives in the earthquake that occurred on January 1st in the Noto Peninsula in Japan. Additionally, I express my heartfelt condolences to all those who have been affected.
First, let us look back at last year.
The global economy moderately trended toward recovery as a result of increased demand due to the resumption of economic activities, as the COVID-19 pandemic began to wane, and as a recovery in semiconductor supply removed constraints on production, particularly in the automobile industry. However, continued global inflation, high interest rates due to monetary policies designed to curb inflation, and an uncertain future due to the world-fragmenting protracted war in Ukraine and the worsening situation in the Middle East are among the factors that are causing concerns about an economic slowdown.
The business environment surrounding our company also continued to undergo many changes during the year. In the automobile industry, which is closely related to our business, China greatly expanded its electric vehicle exports and overtook Japan to become the world’s largest automobile exporter in the first half of the year. Awareness of the need to protect the global environment has further heightened, as evidenced by stricter environmental regulations, particularly in Europe, and an accompanying increased need for resource recycling initiatives, as well as a global agreement at COP28 to triple the power generation capacity of renewable energy by 2030. Also, when it comes to technological evolution, generative AI has become more prevalent, leading to the potential for major changes in corporate activities and industrial structures, as well as in how we do business and work.
In such an environment, in our second-quarter earnings announcement, we revised our forecast for full-year profit attributable to owners of the parent upward to 320 billion yen, which would mark three consecutive years of record profit. However, as the business environment continues to be uncertain, let us refocus our efforts as we enter a new year and work together to achieve continued growth.
Next, I would like to discuss initiatives for this year.
In my Management Mission Statement issued internally in November, I outlined that, in our new growth strategy of seven priority domains, along with accelerating future-oriented growth, we have reexamined the value that we should provide to our customers and redefined the mission of each division. Those missions are determined by why and for whom we exist and what we should do. Under each division’s new mission, let us engage in taking on new challenges beyond extensions of the past to achieve sustainable growth. I hope to fulfill together with all of you our new responsibilities and new roles in society in line with our expanded scale of business.
As such, there are three efforts in which I would like all of you to engage this year.
The first is the pursuit of businesses that are “Be the Right ONE”.
・Is it a business that is unique to our company?
・Does it provide one-and-only value to our customers?
I would like you to pursue “Be the Right ONE” by assessing your businesses in light of your new missions and strategically focusing your management resources. While remaining close to our customers as in the past, I would like us to aim to be a presence that pioneers and leads a new world by establishing “Be the Right ONE” businesses. To this end, strategic collaboration with our partners in terms of business, geography, new technologies, and new services will become even more important. I would like you to once again be aware of building “Be the Right ONE” relationships with our partners to increase the quality, quantity, and speed of strategy implementation.
The second is to further refine strong individuals, aiming to become a strong organization.
From early on, our corporate group has cherished the value of people as capital and has promoted human capital management. To transform from being an escort runner into a pioneer and then into a leader, each of you must hone your expertise and strengths, which are your “tags”, and become professionals who are recognized by our customers and partners. The company, itself, will also engage in human resource and organizational development based on diversity, equity, and inclusion so that all of our members–each of you–will be able to maximize one’s potential. Strong individuals who are further-polished professionals will evolve into a stronger organization by demonstrating teamwork.
The third is to continue dialogue that transcends regions, divisions, and generations.
We currently have 67,000 employees worldwide. Let us squarely face each other, transcending regions, divisions, and generations, while leaving no one behind, and revitalize vertical, horizontal, and diagonal communication at all levels. Teamwork begins with discussing and sharing aspirations, which equate to our purpose, and values.
I look forward to taking on new challenges with all of you in our next new stage, which we have now entered. Let me conclude my New Year’s greeting by wishing all of our employees and their families good health and a happy year full of smiles in 2024.
Thank you very much.
The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.