The business is investment type business where the Joint Venture, formed in May 2008 by the Company and two governmental oil and gas companies, EGAS and Ganope, both affiliated with the Ministry of Petroleum of Arab Republic of Egypt, procures and owns two new-build offshore drilling rigs (the "rigs") and offers them to drilling services in the exploration and development of offshore gas fields located within Egyptian territorial waters. EGAS, in accordance with the charter agreement signed with the Joint Venture, will be operating and maintaining the rigs and performing the drilling, while the Company will be performing overall management of the Joint Venture as well as supplying the materials, equipment and consumables necessary for the operation and maintenance of the rigs. Ganope will be providing overall support for EGAS’s activities.

The rigs will be built in Singapore, with completion scheduled for the end of 2010 and the beginning of 2011 respectively. Upon completion, the rigs will be engaged in drilling services in offshore gas exploration and development blocks within Egyptian territorial waters.

Egypt supplies its abundant reserves of natural gas to meet its domestic demand, primarily as fuel for electric power generation, while exporting liquefied natural gas (LNG). An increase in natural gas production is becoming a matter of great urgency in Egypt in order to meet growing domestic demand, as well as to promote export, and for these reasons new introduction of rigs is being keenly awaited.

The Company aims to establish an up- to down-stream natural gas business chain and considers Egypt, with its abundant reserves of natural gas, to be one of the most important countries in the upstream.  The Company intends to forward with building the business chain by further growing its involvement in businesses in the area of natural gas upstream in Egypt, with gaining a foothold by the business starting this time.

  Toyota Tsusho Insurance Broker (India) Pvt. Ltd., a local subsidiary established in Bangalore in February 2008 in a joint venture with the Kirloskar Group, an Indian conglomerate, obtained an official business license effective September 2 from the Insurance Regulatory and Development Authority (IRDA), the local competent authority. The company began brokerage operations for fire and casualty insurance and life insurance.

1. Background

  The market in India for fire and casualty insurance and life insurance is expected to grow, with deregulation of pricing for fire and casualty insurance implemented on January 1, 2008, and deregulation of coverage expected to occur in the future. It has therefore been determined that in the future the brokerage needs of insurance policy holders will increase. The company will not limit its operations to Bangalore alone, with plans to establish a branch office in Delhi as well. Furthermore, optimum insurance programs will be offered to Japanese businesses that are entering the Indian market in rapid succession as the Indian economy continues to grow.

  Toyota Tsusho’s insurance brokerage locations include the United States, Brazil, and Europe, and the latest operation in India is the seventh in Asia, following Thailand, Malaysia, Singapore, the Philippines, the Republic of Korea, and China.

2. Summary of the new company

Company name: Toyota Tsusho Insurance Broker (India) Pvt. Ltd.
Location: Embassy Star 7th Floor, No. 8 Palace Road Vasanth Nagar, Bangalore, India
Establishment date: February 8, 2008
Capital: INR12 million (approximately JPY30 million)
Controlling shares: Kirloskar Group (74%), Toyota Tsusho (26%)
Business lines: Brokerage operations for fire and casualty insurance and life insurance

   Braskem will build a new facility at their existing industrial unit in Triunfo, RS, Brazil with an annual production capacity of 200,000 tons, and will produce High Density Polyethylene (HDPE) and Low Density Polyethylene (LDPE) from bioethanol derived from sugarcane - non-grain feedstock.

   The world trend for CO₂ emission reductions has boosted public demand towards bio-based plastics recently. Green polyethylene made from sugarcane ethanol can also contribute significantly to CO₂ emission reductions. At the same time, green polyethylene has remarkable advantages over existing bio-based plastics. It is possible to use existing processing equipments and recycling systems since green polyethylene has the same characteristics as traditional petroleum-based polyethylene. Therefore, the plastic can be applied to products in various fields, such as bottles, film, plastic bags, containers, personal-hygiene articles and automotive parts.

   Toyota Tsusho have joined Braskem's R&D program on green plastics, which produced the world's 1st certified 100% green polyethylene based on sugarcane ethanol at the "Braskem Technology and Innovation Center" in Triunfo, RS, Brazil last year. A radiocarbon dating laboratory, Beta Analytic, Inc., conducted the certification by the method defined as ASTM D6866.

   The green polyethylene shall be exhibited and introduced at "BioJapan 2008", the most renowned bio-related event held in Japan, on October 15-17, 2008 at "Pacifico Yokohama", Yokohama, Japan, and Braskem will give a seminar during the event.

The name of the new company is Yamaha Motor Cambodia Co., Ltd. (YMKH) and its starting capital of 11,500,000 US dollars (approx. 1.2 billion yen) is invested 70% by Yamaha Motor, 20% by Toyota Tsusho and 10% by Cambodia's Kong Nuon Import & Export Co., Ltd. plans call for the company to be officially established on August 31, 2008.

Since March 2007, Asia Motors Co., Ltd. (AMC), a joint venture company between Toyota Tsusho and Kong Nuon Import & Export, has been assembling and marketing motorcycles with parts and components supplied as semi knocked-down (SKD)* kits by Thai Yamaha Motor Co., Ltd. The new company YMKH will begin operations by taking over operations at the AMC factory and the AMC sales network and a 94,890m2 lot will be acquired in Phnom Penh's special economic zone for the construction of a new factory. 
The aims of the new factory will be to reduce costs and lead time through complete knock-down (CKD)manufacturing, and plans call for operations to begin at the completed new factory in July 2009.
Plans call for AMC to be dissolved following the transfer of operations to YMKH at the end of September 2008.

Yamaha Motor and Toyota Tsusho have a solid record of corporate collaboration beginning with an importer/distributor in Kenya in 1989 and subsequent tie-ups that have included distributorships and dealerships for Yamaha Motor products in the South Pacific, Kazakhstan and Russia. YMKH represents an initiative to strengthen the motorcycle business in Cambodia drawing from the synergy of Yamaha Motor's expertise in manufacturing and marketing, Toyota Tsusho's logistical strengths and Kong Nuon Import & Export's expertise in building sales networks. This new company represents the first establishment of a new joint venture company by Yamaha Motor and Toyota Tsusho.

The current economic growth in Cambodia is supporting a trend of growing demand for motorcycles, which reached 130,000 units in 2007. The outlook of stable economic growth for the future and the size of the young demographic that will be potential motorcycle users point to continued growth in motorcycle demand, with forecasts of 250,000 units by 2010 and 500,000 units by 2015.

Initial targets for the new company are to expand motorcycle sales to 30,000 units at a value of 4.2 billion yen planned for 2010 after the start of production at the new factory by introducing attractive products, strengthening the sales network with examples provided by directly-managed Yamaha dealerships and promoting the Yamaha brand.

*Semi knocked down is a manufacturing method that involves the import/export of semi-complete kits of knock-down parts that have already been assembled to some degree.

Project name	Site location
El Atf Power Plant	Located 185 km northwest of  Cairo and 60 km southeast of Alexandria
Sidi Krir Power Plant	Located 30 km west of Alexandria

The parties agreed to start from the development and preparation of technical and economic assessment for the integrated power and fertilizer project in the western part of Kazakhstan. The plant complex is expected to contribute to the development of agricultural sector and cope with the increasing demand of electricity in the western part of Kazakhstan.

Kazyna and Toyota Tsusho Co. are going to review the project which dedicate to the development of industries of Kazakhstan.

Based on this practical example in the United States, Toyota Tsusho has been advancing its global development and currently has 15 recycling plants in operation around the world.

With the establishment of a new directly managed joint venture recycling plant, Toyota Tsusho intends to conduct an environmentally considerate recycling business with the handling of scrap iron as its focus.

2. Outline of the new company
Company name:                   Green Metals UK Ltd.
Company location:                5th Floor, 63 Queen Victoria Street,
 (Registered address)            London, U.K.
                                         (Recycling plant)
                                         Burnaston, Derbyshire, UK. 
 Date of establishment:         January 25, 2008
 Capital:                             GBP 2 million (approx. JPY 410 million)
 Controlling shares:               TTUK 60%, Toyota Tsusho 40%
 Business lines:                     Handling, processing, transportation, and    
                                         sales of metal scrap and industrial
                                         waste products
 Number of employees:          38 persons
 Principal equipment:             Bailers