Happy New Year, everyone!

To all Toyota Tsusho Group employees and their family members around the world, I extend to you the warmest of greetings upon the start of a new year.

Looking back on last year as we welcome in 2021, I would like to talk about what we must do to ensure the sustainable growth of our company.

Looking back on last year

About a year has passed since the start of what went on to become the COVID-19 pandemic. With the number of infected people still increasing, the pandemic is greatly impacting our daily lives. Cities and regions around the world are having to endure repeated states of emergency and lockdowns in an attempt to stem the advance of the virus, and, to protect ourselves from an invisible foe that seems to be stalking us, we are continuing to live lives of inconvenience in which going out and about is highly restricted. The precious lives of even members of the Toyota Tsusho Group as well as their family members have been lost. We would like to express our deepest condolences to our deceased companions and extend our deepest sympathies to their families and friends.

Also, last year was a year of accentuated division and solidarity on various social and economic fronts. Confrontations, such as related to the U.S. presidential election, Brexit in Europe, U.S.-China trade frictions, and riots and armed conflicts around the world, have deepened, sowing division even in relationships that were thought to share certain values. On the other hand, new forms of solidarity made headway, such as in international cooperation and support to overcome COVID-19, along with the acceleration of initiatives to address global warming.

Now, at the in-house briefing on May 1 last year for the fiscal year ended March 31, 2020, I told everyone: "This year, all companies around the world, including our own, will face a turning point that will clearly draw a line between growth and decline in the post-COVID era." Through our business activities in the harsh environment of COVID-19, there were various things that we discovered when considering what we should do to grow or what we should strengthen going forward.

First was our strong will to protect our supply chains, as well as our surefire mechanisms for business continuity planning that made protecting our supply chains possible. By anticipating the impact of COVID-19 and taking proactive measures, we have been able to minimize the impact on our customers' production activities. That was a true embodiment of providing behind-the-scenes assistance for our customers, which is one of our Toyotsu Distinctive Traits. Let's continue to evolve, such as by ensuring the resiliency of our supply chains and preparing alternatives.

Next, we came to understand that businesses related to the "economy of life", which concerns areas that form the basis of people's lives and society, such as electricity/energy, infrastructure, logistics, IT, insurance, food, and healthcare, are highly resistant to changes in the economic environment.

And then, there is how we have responded to new work styles. Even though restrictions were placed on going to the office and restrictions on movement have delayed business trips and the undertaking of new postings, we learned that it is possible to continue a certain level of business by using digital tools. During this, I was reminded of the necessity of completing business locally without relying on business trips or new postings, and that the development and promotion of local human resources for that purpose should be done without delay.

For sustainable growth

With these findings in mind, there are three things that we need to do to achieve sustainable growth in a with-COVID/post-COVID world.

The first is to further enhance the operational excellence that we have refined daily and channeled into our Toyotsu Distinctive Traits, as well as to be thorough in the maximization of operational added value. In particular, digital technology is fast evolving, and the environment is now one in which superior technologies can be easily utilized. By utilizing such technologies as tools for transforming existing businesses and reviewing operating costs on a higher dimension, let us use this as an opportunity to grow together with our customers and partners. Two years have passed since we declared our "first year of going digital" in 2019, and we are now at the stage of producing results. Rather than leaving such up to a dedicated organization, I would like each of you to personally and seriously embrace the use of digital technology.

The second is to accelerate commitment to our Key Sustainability Issues. We will concentrate our management resources on four fields linked to those issues--next mobility, renewable energy, circular economy, and Africa. Believing in what we have worked on and accumulated in these four fields, let us actively and boldly take on challenges. Also, for businesses other than in these four fields, let us hone and steadfastly grow them to demonstrate our Toyotsu Distinctive Traits and overwhelming strengths, expressed otherwise as "Be the Right ONE". In the first half of our current fiscal year ending March 2021, while gross profit decreased by 16 percent, the areas that I mentioned earlier as related to the "economy of life" achieved profit growth of 4 percent, supporting overall corporate performance. I would like to continue to build, with a strong will, a business portfolio that adapts to changes in the environment.

The third has to do with the people who will carry out these efforts and the organization that is a collection of such people. As I have been saying, each of us needs to improve our expertise as professionals to the extent that we are second to none, heighten broadness and attractiveness as a person, and aim to become a strong individual. For this, work styles that optimize how time is used, where work is done, and others will also become important. As a company, we will develop systems that support diverse work styles, comfortable offices that make working easier, and environments that promote creativity. Aiming to concentrate strong individuals and transform into a strong organization using team power, please pursue work procedures and optimal communication methods that can maximize such power at each organization.

Lastly, although I expect that the impact of COVID-19 will continue, let us make 2021 a year in which the Toyota Tsusho Group unites and pushes ahead to achieve sustainable growth in the future. So that all of you, who are indeed the ones implementing our strategies, can do your best in taking up challenges, and so that you can propel your work forward with peace of mind, the company will provide full support.

I would like to conclude by wishing that this year will be a year of good health full of smiles and happiness for all of you and your families.

Thank you very much.