AMDP Investment Memo-- Draft

To: Clark Hansen, CEO, AMDP

From: Albert Wijaya, R&D Consultant, AMDP

Date: March 1, 2016

Subject: Potential Investment Opportunity—Toyota Motor Corporation

After extensive research during the week, I believed I have found a potential news that might require further attention on Toyota Motor Corporation. Toyota has been one of the leading car manufacturer in the world for the past decades. It has been renown for its cars' design, compactness and efficiency. What I would like to focus right now is on the concept of Hydrogen Fuel Cell vehicles. It has a chance to be the future of the car industry. Last but not least, this perfectly aligns with AMDP's principles.

AMDP’s Guiding Principles

AMDP wants to make investments would leave a positive lasting impact on the world. These principles provide the foundation of our company’s mission, vision and values. The following four principles in the nature of Anima Mundi, are important in analyzing potential investments: 

Triple Bottom Line

Triple bottom line is an accounting framework used to evaluate performance to create a better business value. It consists of three parts:

• People: The approach the company uses to its employees and community where it resides

• Planet: The use of sustainable environmental practices for minimizing harm to the environment

• Profit: The economic value of the company including its impact on the environment

Corporate Social Responsibility

Corporate social responsibility is the idea that companies has “social” responsibilities that their business may or may not create. They are committed to positively impact society while improving the company’s stakeholders position.

Social Enterprise

Social enterprises are businesses that maximizes the common good. These entities are businesses that are committed to maximize social, cultural, economic, and environmental impacts of their businesses.

Carbon Footprint

"The total amount of greenhouse gases that are emitted into the atmosphere each year by a person, family, building, organization, or company.”(EPA) We measure it by estimating the amounts of CO2 (Carbon Dioxide) that we emit.  It is important to reduce our carbon footprint in order reduce the effects of global warming.

Toyota Motor Corporation

History

Toyota Motor Corporation is an international Japanese car manufacturer headquartered in Toyota, Aichi, Japan. Toyota is the world's first car manufacturer to produce more than 10 million vehicles per year. It was founded by Kiichiro Toyoda in 1937 as a subsidiary to his father's company, Toyota Industries. Since then, it has grown to be a major player in the automotive industry. It produces vehicles under 5 brands: Toyota, Hino, Lexus, Ranz, and Scion. It also has significant relationships with other players in the industries that include Yamaha, Daihatsu, and Tesla. 

Toyota has been a major proponent of the environment, as one of the first firms to establish a comprehensive CSR policy. Not only that, Toyota has been a forerunner in several technologies, such as: Robotics, Aerospace, and Biotechnology. In fact, Toyota is one of the first to introduce the first commercially available hydrogen fuel cell vehicle, the Toyota Mirai in 2015.

Hydrogen: Fuel for Our Future

Hydrogen fuel cell is not an recent invention. It was invented as late as 1838, and was mostly used by the NASA for their space programs. It has been there for a long time, and it has a lot of different applications. The most recent being the fuel-cell vehicles. In these vehicles, the hydrogen cells's waste will only be water, making it one of the most environmentally friendly solution. But hydrogen fuel cell has its own limitations. One of the most comprehensive problem it must solve is definitely the infrastructure needed to deliver these fuel cells to customers. Another one is the fact that to produce these fuel cells and transport them, we would still need carbon-based fuel and will still leave carbon print. 

A Futuristic, Super-Smooth Hydrogen Fuel Cell Car

The Toyota Mirai was a sensation. With a range of 300 miles and a top speed of 111 mph, the Mirai is definitely a car worth driving. Compare that with Tesla Model S' 265 miles and Nissan Leaf's 107 miles range. Not only that hydrogen fuel cell has a really fast recharge rate, with only an average of 5 minutes per charge. If we compare this to electric based cars' average of 5-6 hours for it max charge, then the Mirai is definitely at the top of the league.

Final Reccomendation

In spite of its flaws, I believe in the future of hydrogen fuel cell cars. It is a more viable solution to our problem. Beside, with the likes of Toyota backing and promoting it, I am sure it will not be long before hydrogen cars be a reality. Therefore, I strongly recommend AMDP to take this opportunity to invest in Toyota.