Sumitomo Corporation · TSE:8053
Sumitomo — Q1 FY2023 Earnings Presentation
39 slides from Sumitomo's earnings presentation, Aug 3, 2023
Slide 1: Quarterly Results for FY2023
Quarterly Results for FY2023 (Three-month period ended June 30, 2023) August 3, 2023 Sumitomo Corporation Cautionary Statement Concerning Forward-looking Statements This report includes forward-looking statements relating to our future plans, forecasts, objectives, expectations and intentions. The f
Slide 2: 1. Summary of FY2023 Q1 Results
1. Summary of FY2023 Q1 Results ⚫ Profit for the period attributable to owners of the parent totaled ¥129.4 bil. Progress rate against FY2023 forecasts is 27%. ⚫ Left the annual forecasts of ¥480.0 bil., and annual dividend (per share) of ¥120 (plan) unchanged from the initial forecast announced in
Slide 3: 2. Operating Results (Profit for the Period)
2. Operating Results (Profit for the Period (Attributable to Owners of the Parent)) ⚫ Profit for the period attributable to owners of the parent totaled ¥129.4 bil. ⚫ ¥25.8 bil. decrease compared to the same period of the previous fiscal year (-17%). (Unit: billions of yen) Quarterly Results (YoY) H
Slide 4: 3. Profit for the Period by Segment
3. Profit for the Period by Segment ⚫ Profit increased in the following segments: Transportation & Construction Systems, Infrastructure. (Unit: billions of yen) Transportation Mineral Resources, Corporate Metal Media Living Related & Construction Infrastructure Energy, Chemical and FY2022 Q1 Results
Slide 5: 4. Quarterly Trend for Profit for the Period
4. Quarterly Trend for Profit for the Period (excluding one-off profits/losses) ⚫ Although there was an impact of mineral resources & energy prices decline, profit excluding one-off profits/losses of FY2023 Q1 was ¥112.0 bil., the same level as Q3, Q4 of FY2022. Out of ¥112.0 bil., ¥84.0 bil. was fr
Slide 6: 5. Operating Results (Cash Flows)
5. Operating Results (Cash Flows) ⚫ Free cash flow post-shareholder return (adjusted) for FY2023 Q1 was cash out of ¥28.9 bil. ⚫ Ensure the cash flow to be positive for 3-year total in SHIFT 2023, while cumulative results in SHIFT 2023 was ¥75.4 bil. cash out as of Jun. 30, 2023. (Unit: billions of
Slide 7: 6. Operating Results (Financial Position)
6. Operating Results (Financial Position) ⚫ Total assets increased to ¥10.6 trillions mainly due to yen’s depreciation (approx.¥+490.0 bil. compared to the end of Mar. 2023). (Unit: billions of yen) As of Mar. As of Jun. Increase/ Highlights 31, 2023 30, 2023 Decrease Current assets 4,873.0 5,044.8
Slide 8: 7. Forecasts for FY2023 (Profit for the Year by Segment)
7. Forecasts for FY2023 （Profit for the Year by Segment） ⚫ Need to carefully observe the financial policy in each country, the extent of recovery in Chinese economy, and changes in mineral resources & energy prices. ⚫ However, as a whole, expect our businesses to perform as planned in the initial fo
Slide 9: Appendix
Appendix 8 © 2023 Sumitomo Corporation
Slide 10: Contents
Contents 8. Assumptions and Sensitivity P. 10 Quarterly Trend for Profit for the Period Attributable to Owners of 9. P. 11 the Parent by Segment (FY2022・FY2023) 10. Quarterly Trend for One-off Profits/Losses by Segment (FY2023・FY2022) P. 12-13 11. Performance Overview by Segment P. 14-33 12. Summary
Slide 11: 8. Assumptions and Sensitivity
8. Assumptions and Sensitivity Prices and Mineral Resources Equity FY2022 Results FY2023 Results Sensitivity to Net Income Share of Production FY2023 (Annual base, May 2023 Forecasts Q1 Q1-Q4 Q1 announcements) ¥2.0 bil. Exchange rate JPY/US$ 129.73 135.50 137.49 130.00 (depreciation of ¥1/US$) TORF
Slide 12: 9. Quarterly Trend for Profit by Segment
9. Quarterly Trend for Profit for the Period Attributable to Owners of the Parent by Segment (FY2022・FY2023) (Unit: billions of yen) FY2022 Results* FY2023 Results Cumulative Cumulative Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Results Results Metal Products 24.3 28.0 28.3 29.7 110.4 23.6 23.6 Transportation & 20.4 2
Slide 13: 10. One-off Profits/Losses by Segment (FY2023)
10. Quarterly Trend for One-off Profits/Losses by Segment (FY2023) (Unit: billions of yen) * Cumulative Q1 Q2 Q3 Q4 Results Main factors Metal Products 2.0 2.0 Q1 Profit on structural reform of tubular products business: approx.+2.0 Transportation & 15.0 15.0 Q1 Profit from divestment of retail port
Slide 14: 10. One-off Profits/Losses by Segment (FY2022)
10. Quarterly Trend for One-off Profits/Losses by Segment (FY2022) (Unit: billions of yen) * Cumulative Q1 Q2 Q3 Q4 Results Main factors Q2 Tax-effect on structural reform, etc.: approx.+4.0 Metal Products 0.0 4.0 0.0 7.0 10.0 Q4 Reversal of impairment loss due to market recovery of tubular products
Slide 15: 11. Performance Overview (Metal Products)
11. Performance Overview (Metal Products) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 FY22 Q1 FY23 Q1 Increase/ (approx.¥2.0 bil. decrease from FY22 Q1) (Excl. One-off Profits/Losses) FY23 Results Resu
Slide 16: 11. Performance Overview (Metal Products)
11. Performance Overview (Metal Products) Historical Data for Hot Rolled Steel Sheet Export Prices (Japan), Hot Rolled Coil Steel Futures (U.S.) and Rig* Count (U.S.) Historical Data for Hot Rolled Steel Sheet Export Prices (Japan) Historical Data for Rig Count (U.S.) and Hot Rolled Coil Steel Futur
Slide 17: 11. Performance Overview (Transportation & Construction Systems)
11. Performance Overview (Transportation & Construction Systems) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 (approx.¥5.0 bil. increase from FY22 Q1) (Excl. One-off Profits/Losses) FY22 Q1 FY23 Q1 Incr
Slide 18: Principal Subsidiaries and Associated Companies
11. Performance Overview (Transportation & Construction Systems) Principal Subsidiaries and Associated Companies (Unit: billions of yen) Equity in Earnings *1 Equity in earnings for this company is amounts for company-total including another segment. Shares in Equity *2 The share owned by this segme
Slide 19: 11. Performance Overview (Transportation & Construction Systems)
11. Performance Overview (Transportation & Construction Systems) (Unit: billions of yen) FY22 Q1 FY23 Q1 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q1 Decrease Gross profit 54.3 72.8 +18.5 Total assets 2,005.0 2,172.8 +167.9 Lease, Ship & Aerospace Business 6.2 6.5 +0.3 Lea
Slide 20: Global Map of Mobility Business
11. Performance Overview (Transportation & Construction Systems) Global Map of Mobility Business Europe Toyota Ukraine (Ukraine) Summit Motors Ukraine (Ukraine) Engineering service Moto Pfohe EOOD (Bulgaria) Auto parts manufacture Summit Motors Slovakia (Slovakia) Summit Motors Slovenia (Slovenia) A
Slide 21: Construction & Mining Systems Business - Growth Strategy
11. Performance Overview (Transportation & Construction Systems) Construction & Mining Systems Business - Growth Strategy Leveraging “Strengths” - 【Growth strategy】 【“Strengths” which enhance effectiveness】 Geographic expansion Products diversification Aiming further growth by upgrading the consiste
Slide 22: 11. Performance Overview (Infrastructure)
11. Performance Overview (Infrastructure) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 (approx.¥8.0 bil. increase from FY22 Q1) (Excl. One-off Profits/Losses) FY22 Q1 FY23 Q1 Increase/ FY23 Domestic ele
Slide 23: Global Development of the Renewable Energy Business
11. Performance Overview (Infrastructure) Global Development of the Renewable Energy Business Our net ownership generation capacity of renewable energy is 1.8GW as of end of Mar. 2023. We aim to achieve 5GW or more by 2030. Topic: Offshore Wind Farm Projects in France As of end of Mar. 2023 (net own
Slide 24: 11. Performance Overview (Media & Digital)
11. Performance Overview (Media & Digital) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 FY22 Q1 FY23 Q1 Increase/ (approx.¥1.0 bil. decrease from FY22 Q1) (Excl. One-off Profits/Losses) FY23 Results*1 R
Slide 25: Initiatives for Telecommunications Business in Ethiopia
11. Performance Overview (Media & Digital) Initiatives for Telecommunications Business in Ethiopia ⚫ Contributing to Ethiopia's economic and human resource development through the construction of telecommunications infrastructure and the development of various value-added services on the business pl
Slide 26: 11. Performance Overview (Living Related & Real Estate)
11. Performance Overview (Living Related & Real Estate) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 FY22 Q1 FY23 Q1 Increase/ (approx.¥6.0 bil. decrease from FY22 Q1) (Excl. One-off Profits/Losses) FY2
Slide 27: Principal Subsidiaries and Associated Companies
11. Performance Overview (Living Related & Real Estate) Principal Subsidiaries and Associated Companies Lifestyle Business Division Construction Materials & Real Estate Division (Unit: billions of yen) (Unit: billions of yen) Equity in Earnings Equity in Earnings Shares in Equity Shares in Equity Co
Slide 28: 11. Performance Overview (Living Related & Real Estate)
11. Performance Overview (Living Related & Real Estate) (Unit: billions of yen) FY22 Q1 FY23 Q1 Increase/ End of End of Increase/ Results* Results Decrease FY22* FY23 Q1 Decrease Gross profit 63.1 68.2 +5.0 Total assets 1,704.4 1,763.6 +59.2 Lifestyle Business Division 33.7 38.3 +4.6 Lifestyle Busin
Slide 29: Real Estate Business - Further Strengthening of Stable Earnings Base
11. Performance Overview (Living Related & Real Estate) Real Estate Business － Further Strengthening of Stable Earnings Base 1 Growth Strategy 2 Net income | Three-year Average Change (Unit: billions of yen) ⚫ Conduct portfolio management handling diverse areas and asset types ⚫ Accumulate prime ass
Slide 30: 11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1 Forecast for the remaining quarters of FY23 FY22 Q1 FY23 Q1 Increase/ (approx.¥40.0 bil. decrease from FY22 Q1) (Excl. One-o
Slide 31: Principal Subsidiaries and Associated Companies
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Principal Subsidiaries and Associated Companies Mineral Resources & Energy (Unit: billions of yen) Chemical & Electronics (Unit: billions of yen) Equity in Earnings Equity in Earnings Shares in Equity Shares in Equity Compa
Slide 32: 11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) (Unit: billions of yen) FY22 Q1 FY23 Q1 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q1 Decrease Gross profit 92.5 59.3 -33.3 Total assets 2,490.1 2,527.3 +37.2 Mineral Resources & Energy*1 55.3 26.0
Slide 33: Ambatovy Nickel Project
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Ambatovy Nickel Project Quarterly Trend FY22 Q1 FY23 Q1 Increase/ FY23 Results Results Decrease Sensitivity*2 Forecasts (A) (B) (B)-(A) 3.0 10 10 Equity in Earnings (billions of yen) 3.0 0.7 -2.3 11.0 - 9 8 8 Excl. one-off
Slide 34: Agribusiness as the Driver of Growth
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Agribusiness as the Driver of Growth Overview Crop Protection Trade & Agricultural Input & Service Next-Generation Agriculture & Distribution Business Business Innovation Trade, processing, import and wholesale Provision of
Slide 35: 12. Summary of Consolidated Statements of Comprehensive Income
12. Summary of Consolidated Statements of Comprehensive Income (Unit: billions of yen) FY2022 FY2023 Increase/ Q1 Results Q1 Results Decrease Summary Revenues 1,615.2 1,671.4 +56.2 Gross profit ⚫ Automotive sales & marketing business: stable Gross profit 295.5 306.7 +11.2 ⚫ Construction equipment-re
Slide 36: 13. Summary of Consolidated Statements of Cash Flows
13. Summary of Consolidated Statements of Cash Flows (Unit: billions of yen) FY2022 FY2023 Increase/ Q1 Results Q1 Results Decrease Summary Net cash provided by (used in) operating Net cash provided by (used in) operating activities 76.5 153.0 +76.6 activities Basic profit cash flow 158.4 150.3 -8.1
Slide 37: 14. Summary of Consolidated Statements of Financial Position
14. Summary of Consolidated Statements of Financial Position (Unit: billions of yen) End of End of Increase/ FY2022 FY2023 Q1 Decrease Summary Assets 10,105.4 10,596.5 +491.1 Investments accounted for using the equity method Current assets 4,873.0 5,044.8 +171.8 ⚫ Increase: impact of the change in t
Slide 38: 15. Historical Data (PL, CF)
15. Historical Data (PL, CF) (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues 3,317.4 3,762.2 4,010.8 3,997.0 4,827.3 5,339.2 5,299.8 4,645.1 5,495.0 6,817.9
Slide 39: 15. Historical Data (BS, Key Financial Indicators)
15. Historical Data (BS, Key Financial Indicators) (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total assets 8,668.7 9,021.4 7,817.8 7,761.8 7,770.6 7,916.5 8,128.