Mitsubishi Corporation · TSE:8058

Mitsubishi — Mitsubishi Corp Ord — FY2023 Earnings Presentation

49 slides from Mitsubishi's earnings presentation, May 2, 2024

  1. Slide 1: Results of FY2023 and Forecast for FY2024

    Results of FY2023 and Forecast for FY2024 Presentation Materials May 2, 2024 Mitsubishi Corporation Forward-Looking Statements - This release contains forward-looking statements about Mitsubishi Corporation’s future plans, strategies, beliefs and performance that are not historical facts. Such state

  2. Slide 2: Agenda

    Agenda Executive Summary 1 Progress of Midterm Corporate Strategy 2024 2 Detailed FY2023 Results and FY2024 Forecast 3 Supplementary Information to the Consolidated Financial Statements 4 Supplementary Information by Segment Copyright © 2024 Mitsubishi Corporation 1

  3. Slide 3: Executive Summary

    Executive Summary Copyright © 2024 Mitsubishi Corporation 2

  4. Slide 4: FY2023 Results and FY2024 Outlook

    FY2023 Results and FY2024 Outlook FY2023 Results  FY2023 consolidated net income was ¥964 billion versus forecast of ¥950 billion.  This is MC’s second highest-ever result following FY2022. FY2024 Outlook  We anticipate FY2024 consolidated net income of ¥950 billion.  We will pursue our next sta

  5. Slide 5: FY2023 Results and FY2024 Outlook (cont'd)

    FY2023 Results and FY2024 Outlook (cont’d)  MC’s earning power has steadily increased over the past few years, even when excluding the upside from special factors such as rising commodity prices and post-pandemic demand rebound.  Beyond FY2024, we aim to exceed profit levels of ¥1 trillion through

  6. Slide 6: Growing Corporate Value via Value-Added Cyclical Growth Model

    Growing Corporate Value via Value-Added Cyclical Growth Model  The following outlines our approach to achieving our goal of expanding our profit base beyond FY2024: Develop new investment opportunities  MC Shared Value strategic investments (strategic inter-segment M&A, platform-type deals, etc.)

  7. Slide 7: Growing Corporate Value via Value-Added Cyclical Growth Model

    Growing Corporate Value via Value-Added Cyclical Growth Model  We continue to make steady progress in strategically rebalancing our business portfolio and increasing capital efficiency. In addition, we are optimizing the capital structures of our investments with increasing flexibility. 1 Strategic

  8. Slide 8: Shareholder Returns

    Shareholder Returns  We plan to increase our dividend per share to ¥100 per share (up from ¥70 in FY2023), maintaining our progressive dividend policy.  This is a result of revisiting the balance between dividend payouts versus share buybacks in consideration of our increasing earning power and ca

  9. Slide 9: Progress of Midterm Corporate Strategy 2024

    1 Progress of Midterm Corporate Strategy 2024 Copyright © 2024 Mitsubishi Corporation 8

  10. Slide 10: Summary of FY2023 Results and FY2024 Forecast

    Summary of FY2023 Results and FY2024 Forecast (Billions of Yen) Forecast for Forecast for FY2022 FY2023 Change FY2023 Change FY2024 (As of Feb.6) Consolidated 1,180.7 964.0 (216.7) 950.0 +14.0 950.0 Net Income Dividend per Share (After Stock Split) 60 yen 70 yen +10 yen 70 yen - 100 yen Share Buybac

  11. Slide 11: Cash Flow Allocation Under Midterm Corporate Strategy 2024

    Cash Flow Allocation Under Midterm Corporate Strategy 2024 Cash Flow Cumulative results (Three-year plan for Midterm Corporate Strategy 2024) FY2023 Details to date under Midterm Corporate Revised February 6, 2024 Strategy 2024 * Underlying operating CF ※1 ¥1,178.5 Billion Underlying operating CF is

  12. Slide 12: Progress of Investments for Midterm Corporate Strategy 2024

    Progress of Investments for Midterm Corporate Strategy 2024  Total cumulative investment cash outflows as of March 31, 2024 was ¥1.9 trillion.  Total cumulative investment cash outflows committed until March 31, 2025 is ¥2.3 trillion.  Although progress varies depending on investment area, we are

  13. Slide 13: (Reference) Progress of Quantitative Targets

    (Reference) Progress of Quantitative Targets Quantitative Targets of Midterm Corporate Strategy 2024 Net Income/CF Maintain/Improve Capital Efficiency Ensuring Financial Soundness Consolidated net income (FY2024) ¥800.0 Billion Maintain High Single-A Credit Rating Double-Digit ROE Post-Returns Free

  14. Slide 14: Detailed FY2023 Results and FY2024 Forecast

    2 Detailed FY2023 Results and FY2024 Forecast Copyright © 2024 Mitsubishi Corporation 13

  15. Slide 15: Detailed Year-over-Year Net Income by Segment

    Detailed Year-over-Year Net Income by Segment (Billions of Yen) Consolidated Net Income: FY2022: 1,180.7 FY2023: 964.0 [YoY (216.7)] ■ Natural Gas ■ Automotive & Mobility FY22 170.6 Trading losses recorded in the previous year, FY22 131.6 Losses due to sales slump in Chinese increased trading earnin

  16. Slide 16: Detailed FY2024 Net Income Forecast by Segment

    Detailed FY2024 Net Income Forecast by Segment (Billions of Yen) Consolidated Net Income: FY2023: 964.0 FY2024 Forecast: 950.0 [YoY (14.0)] 238.8 ■ Environmental Energy ■ Mobility FY23 FY23 141.4 Gains on liquidation of overseas business Decreased earnings in the ASEAN FY24 investees in the previous

  17. Slide 17: Detailed Market Conditions

    Detailed Market Conditions Foreign Exchange, Commodity Prices and Interest Rates FY2024 Consolidated Net FY2023 Forecast for FY2024 *1 Change Income Sensitivities Foreign *2 Exchange 144.59 143.00 (1.59) ¥5.0 billion (JPY/US$) (JPY/US$) Crude Oil *3 *4 (Brent) 83 85 +2 ¥1.5 billion (US$/BBL) (US$/BB

  18. Slide 18: Supplementary Information to the Consolidated Financial Statements

    3 Supplementary Information to the Consolidated Financial Statements Note: Historical figures have been retroactively adjusted for year-over-year comparison purposes, reflecting both the business segment reorganization as well as accounting policy changes implemented in FY2023. Copyright © 2024 Mits

  19. Slide 19: FY2023 Consolidated Net Income by Segment

    FY2023 Consolidated Net Income by Segment FY2023 Forecast FY2022 FY2023 YOY Change (Released Nov. 2) excl. excl. excl. One-off Total One-off Total One-off Total Total Variance （Billions of Yen） One-off One-off One-off Natural Gas (9.3) 179.9 170.6 16.5 203.0 219.5 25.8 23.1 48.9 170.0 49.5 Industria

  20. Slide 20: FY2024 Forecasted Consolidated Net Income by Segment

    FY2024 Forecasted Consolidated Net Income by Segment FY2023 Results FY2024 Forecast YOY Change （Billions of Yen） （Restated) Environmental Energy 238.8 151.0 (87.8) Materials Solution 73.9 74.0 0.1 Mineral Resources 295.5 286.0 (9.5) Urban Development & 50.9 41.0 (9.9) Infrastructure Mobility 141.4 1

  21. Slide 21: FY2023 Major Cash Flow Items by Segment

    FY2023 Major Cash Flow Items by Segment Cash flows from investing activities Underlying operating Adjusted free cash flows Sales and New/Replacement cash flows Net (Billions of Yen) Collection Investments Natural Gas 209.3 73.4 (90.6) (17.2) 192.1 Industrial Materials 83.3 13.1 (18.8) (5.7) 77.6 Che

  22. Slide 22: FY2023 Major Items by Segment

    FY2023 Major Items by Segment Balance Sheet Items as at March 31, 2024 Industrial Industrial Chemicals Mineral Automotive Food Consumer Power Urban Natural Gas Infra- Others Total Materials Solution Resources & Mobility Industry Industry Solution Development (Billions of Yen) structure Total assets

  23. Slide 23: FY2022 Major Items by Segment

    FY2022 Major Items by Segment Balance Sheet Items as at March 31, 2023 Industrial Industrial Chemicals Mineral Automotive Food Consumer Power Urban Natural Gas Infra- Others Total Materials Solution Resources & Mobility Industry Industry Solution Development (Billions of Yen) structure Total assets

  24. Slide 24: Supplementary Information

    Supplementary Information Key Balance Sheet Ratios and Metrics Exchange Rates March 31, March 31, YOY Change FY2022 FY2023 2023 2024 Equity Ratios JPY/US$ Investment leverage ratio1 27.3% 13.5% (13.8%) Term End5 133.53 151.41 2 6 Shareholders' equity ratio 36.4% 38.6% 2.1% Average 135.50 144.59 2 Eq

  25. Slide 25: Consolidated Balance Sheet

    Consolidated Balance Sheet March 31, March 31, YOY Change Remarks (Billions of Yen) 2023 2024 Total assets 22,147.5 23,459.6 1,312.1 Current assets 9,109.3 11,676.5 2,567.2 Cash and cash equivalents 1,557.0 1,251.6 (305.4) Decrease due to transfer to assets held for sale Increase in current portion

  26. Slide 26: FY2023 Consolidated Income Statement / Performance of Subsidiaries and Affiliates

    FY2023 Consolidated Income Statement / Performance of Subsidiaries and Affiliates Consolidated Income Statement Subsidiaries and Affiliates March 31, March 31, YOY FY2022 FY2023 YOY Change (Billions of Yen) 2023 2024 Change Gross profit 2,560.0 2,359.7 (200.3) Profit Entities SG&A expenses (1,607.5)

  27. Slide 27: FY2023 Consolidated Cash Flow Statement

    FY2023 Consolidated Cash Flow Statement FY2022 FY2023 YOY Change Remarks (Billions of Yen) Decrease in cash flows from operating transactions and Cash flows from operating activities 1,930.1 1,347.4 (582.7) increase in requirements for working capital, etc. Underlying operating cash flows* 1,284.7 1

  28. Slide 28: Supplementary Information by Segment (Financial Data)

    4 Supplementary Information by Segment (Financial Data) Notes: • Material subsequent events have been included in earnings of subsidiaries and affiliates in cases where the fiscal year reporting period is different from the parent company (March year-end). • "Equity Holding“ refers to the Company’s

  29. Slide 29: Natural Gas Group

    Natural Gas Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 250 219.5 One-off (9.3) 16.5 25.8 200 170.6 Trading losses recorded in the previous year, increased 90.4 trading earnings in the LNG sales business and increased 150 55.0 Excl. One-off 179.9 203.0 23.1 divid

  30. Slide 30: Industrial Materials Group

    Industrial Materials Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 80 62.0 64.4 One-off 1.4 (5.4) (6.8) 60 10.2 18.7 Excl. One-off 60.6 69.8 9.2 ー 14.5 40 11.3 18.1 15.3 20 Total 62.0 64.4 2.4 19.2 19.1 0 FY2022 FY2023 Earnings of Major Subsidiaries and Affiliates

  31. Slide 31: Chemicals Solution Group

    Chemicals Solution Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 40 29.5 One-off 2.0 (4.9) (6.9) 30 5.7 ​Impairment losses and deduction of deferred tax liabilities 0.9 20 6.9 9.5 Excl. One-off 27.5 14.4 (13.1) recorded in the previous year in the Chemical manufact

  32. Slide 32: Mineral Resources Group

    Mineral Resources Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 500 439.3 One-off (33.4) 11.7 45.1 400 54.2 63.6 295.5 ​Decreased earnings due to lower Australian metallurgical coal 300 66.7 Excl. One-off 472.7 283.8 (188.9) 78.6 prices. 200 82.8 254.8 37.0 Total 4

  33. Slide 33: Industrial Infrastructure Group

    Industrial Infrastructure Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 50 42.7 One-off 0.1 3.8 3.7 40 31.9 11.6 Gains on sale of overseas business investment and increased 30 6.4 Excl. One-off 31.8 38.9 7.1 14.4 earnings in the Commercial vessel business. 8.1 20 8

  34. Slide 34: Automotive & Mobility Group

    Automotive ＆ Mobility Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 141.4 150 131.6 One-off (22.7) 18.6 41.3 8.9 17.5 Losses due to sales slump in Chinese business in the previous 33.3 100 58.3 year and gains related to the sale of overseas business, Excl. One-off

  35. Slide 35: Food Industry Group

    Food Industry Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 100 63.4 14.9 One-off (7.3) (37.1) (29.8) 50 26.4 14.6 Decreased earnings in the Salmon farming business and 19.7 49.0 Excl. One-off 70.7 52.0 (18.7) impairment losses related to the Overseas food business

  36. Slide 36: Consumer Industry Group

    Consumer Industry Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 60 49.3 One-off (5.7) 9.3 15.0 40 11.3 Increased earnings in the Convenience store business and 18.9 12.2 Excl. One-off 24.6 40.0 15.4 reversal of impairment losses on intangible assets related to 20 1

  37. Slide 37: Power Solution Group

    Power Solution Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 150 One-off (0.1) (21.5) (21.4) 92.0 100 61.9 Increased gains on sales of assets in the Overseas power Excl. One-off 62.0 113.5 51.5 50 63.5 76.7 generating business. 7.5 10.1 0 14.4 8.4 Total 61.9 92.0 3

  38. Slide 38: Urban Development Group

    Urban Development Group (Billions of Yen) Q1 Q2 Q3 Q4 FY2022 FY2023 Change Remarks Results Results 150 123.3 One-off 77.5 21.8 (55.7) 7.0 1.7 100 10.0 Gains on sale of a real estate management company in the 41.5 Excl. One-off 45.8 19.7 (26.1) 50 104.6 previous year. 14.6 14.8 0 16.2 Total 123.3 41.

  39. Slide 39: Supplementary Information by Segment (Operational Data)

    4 Supplementary Information by Segment (Operational Data) Copyright © 2024 Mitsubishi Corporation 38

  40. Slide 40: Global Energy Resources Business Natural Gas Group

    Global Energy Resources Business Natural Gas Group Mitsubishi Corporation’s Growth Outlook of Oil and Gas Reserves1 LNG Equity Production Capacity2 （As of Dec 31, 2023） Unit: MTPA (Million Tons Per Annum) 0.199 1.552 1.353 billion barrels Natural Gas 1 Oil equivalent, including non-consolidated subs

  41. Slide 41: LNG Projects Natural Gas Group

    LNG Projects Natural Gas Group 1 Business Segment: Existing Projects in Operation A Investment in exploration & development (upstream) BB Investment in liquefaction plant C Marketing and/or import agent :D Shipping Beginning Annual Production MC’s Business Project of Capacity (Million Ton) Buyer Sel

  42. Slide 42: Global Mineral Resources Business Mineral Resources Group

    Global Mineral Resources Business Mineral Resources Group Product Project Country CY2023 Production* Main Partners MC's Share Metallurgical BMA Australia Metallurgical Coal, etc., 52 mil. Mt BHP 50.00% Coal Escondida Chile Copper 1,109 kt BHP, Rio Tinto 8.25% Los Pelambres Chile Copper 300 kt Luksic

  43. Slide 43: Metallurgical Coal Operation Mineral Resources Group

    Metallurgical Coal Operation Mineral Resources Group BMA Annual Production and Sales Volume (50% Basis) （mil. mt） Apr-Jun Jul-Sep Oct-Dec Jan-Mar • BMA production in Jan-Mar 2024 decreased by 13% to 6.0 mil. mt 40.0 on a year-over-year basis. 30.2 29.5 • The decrease was mainly due to the impacts of

  44. Slide 44: Copper Business: Quellaveco and Equity Share Production

    Copper Business Mineral Resources Group Equity Share Production Volume （kt） Jan-Mar Apr-Jun Jul-Sep Oct-Dec (Due to rounding, the quarterly figures do not necessarily add up to the total annual figures.) CY2021 CY2022 CY2023 CY2024 127 Total 218 Total 248 Total 325 Total 78 89 37 82 85 75 21 64 21 3

  45. Slide 45: Global Automobile Business (MMC・MFTBC-Related)

    自動車事業本部の世界展開図 自動車事業本部の世界展開図 Global Automobile Business (MMC・MFTBC-Related) Automotive & Mobility Group (As of March 31, 2024) MCBR MMCR Automobile Distribution Country/Region Finance ① Overall Demand ② Vehicle sales of MC’s partner Russia car maker (share) ①1,032.7K Units2 From Apr. 2023 to Mar. 202

  46. Slide 46: Global Automobile Business (Isuzu-Related)

    Global Automobile Business (Isuzu-Related) Automotive ＆ Mobility Group LCV: Light Commercial Vehicle CV: Commercial Vehicle (As of March 31, 2024) Isuzu vehicle sales ① Overall Demand IPC IMEX ② CV and LCV sales of MC’s IMI Production/ Production/ partner ​car maker (share)​ Production/ Distribution

  47. Slide 47: Salmon Farming Business

    Salmon Farming Business Food Industry Group Cermaq Norway Cermaq 84,229 Canada 8,144 Europe Russia North America Japan Other South Asia America Cermaq Sales Volume Cermaq Market Size illustrative （by region） Chile Year: FY2023 100,363 Fish Species: Scale: MT (GWE basis*) Atlantic Salmon, Coho, Trout

  48. Slide 48: Electric Power Business

    Electric Power Electric Business Power Business Power Power Solution Solution GroupGroup Eneco (Netherlands) An integrated energy company Americas mainly active in the Netherlands, Belgium and Germany Japan Diamond Generating Mitsubishi Corporation Energy Solutions (MCES） Corporation (DGC USA) 3,010

  49. Slide 49: Urban Development & Real Estate Business

    Urban Development & Real Estate Business Urban Development Group Development Multifamily, Student Housing, North Industrial Properties, America Medical Offices, Senior Living Asset Management Real Estate Equity/Debt Fund Europe Asset Management Vietnam Real Estate Debt Fund Development Large-Scale U

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