Slide 1: Quarterly Results for FY2022
Quarterly Results for FY2022 (Six-month period ended September 30, 2022) November 4, 2022 Sumitomo Corporation Cautionary Statement Concerning Forward-looking Statements This report includes forward-looking statements relating to our future plans, forecasts, objectives, expectations and intentions.
Slide 2: 1. Operating Results (Profit for the Period)
1. Operating Results (Profit for the Period (Attributable to Owners of the Parent)) Profit for the period attributable to owners of the parent totaled 350.2 billions of yen, record high as a half year result. 109.2 billions of yen increase compared to the same period of previous fiscal year (+45
Slide 3: 2. Profit for the Period by Segment
2. Profit for the Period by Segment Profit increased in following segments: Metal Products, Transportation & Construction Systems, Infrastructure, Living Related & Real Estate, Mineral Resources, Energy, Chemical & Electronics. Transportation Mineral Resources, Corporate (Unit: billions of yen) Me
Slide 4: 3. Quarterly Trend for Profit for the Period (excluding one-off profits/losses)
3. Quarterly Trend for Profit for the Period (excluding one-off profits/losses) Both mineral resources and non-mineral resources businesses continued the trend of earning increase from FY2021. Q2 results exceeded Q1 and achieved record high as a quarterly result. FY2020 FY2021 FY2022 Q1 Q2 Q3 Q4
Slide 5: 4. Operating Results (Cash Flows)
4. Operating Results (Cash Flows) Free cash flow (post-dividend) (adjusted) cumulated in SHIFT 2023 (from Apr. 2021 to Sep. 2022) was cash in of 77.9 billions of yen. Manage and ensure the cash flow to be positive for 3-year total in SHIFT 2023, while continuing growth investment with a focus on
Slide 6: 5. Operating Results (Financial Position)
5. Operating Results (Financial Position) Total assets increased to 10.5 trillions of yen due to yen’s depreciation and others (+approx. 900.0 billions of yen compared to the end of Mar. 2022). (Unit: billions of yen) As of Mar. As of Sep. Increase/ Highlights 31, 2022 30, 2022 Decrease Current as
Slide 7: 6. Forecasts for FY2022
6. Forecasts for FY2022 Revised the annual forecasts to 550.0 billions of yen (+180.0 billions of yen compared to Aug. 2022 announcements). FY2022 results are expected to exceed FY2021 results and revise the historical record high. (Unit: billions of yen) Forecasts for FY2022 (Compared to Aug. 2
Slide 8: 7. Forecasts for FY2022 (by Segment)
7. Forecasts for FY2022 (by Segment) Revised upward in Metal Products, Transportation & Construction Systems, Mineral Resources, Energy, Chemical & Electronics. Revised downward in Infrastructure. While captured revenue opportunities in upturn of commodity market in the first half, anticipate de
Slide 9: 8. Shareholder Return
8. Shareholder Return • 1 Dividend (apply the consolidated dividend payout ratio of 30% within the DOE range of 3.5 to 4.5%) Revised the FY2022 annual dividend forecast to upper threshold of the DOE range of 115 yen per share (initial plan: 90 yen), based on the revision of the annual forecasts to 5
Slide 10: Progress of Medium-Term Management Plan SHIFT 2023
Progress of Medium-Term Management Plan 「SHIFT 2023」 9 © 2022 Sumitomo Corporation
Slide 11: 9. Overview of Medium-Term Management Plan SHIFT 2023
9. Overview of Medium-Term Management Plan SHIFT 2023 Major shift of the framework and management base has been completed in the first half of the mid-term plan period. We will continue to accelerate business portfolio shift. Business Portfolio SHIFT (Building a portfolio that is both highly profi
Slide 12: 10. Business Portfolio SHIFT
10. Business Portfolio SHIFT Business Portfolio SHIFT Framework SHIFT Asset recycling progressed as planned, and the earnings improvement of the initial plan of SHIFT 2023 from exit and turnaround (approx. ¥70.0 bil. improvement) was achieved. Management base SHIFT As for businesses with value-u
Slide 13: 11. Asset Recycling for Growth Investments (Divestment)
11. Asset Recycling for Growth Investments (Divestment) Business Portfolio SHIFT Framework SHIFT Management base SHIFT 35 companies exited in 18 months, against a target of 69 exit candidates during SHIFT 2023. The remaining exit candidates include those with high levels of difficulty, but we pr
Slide 14: 12. Growing Core Earning Pillars by Leveraging Strengths (Value Creation)
12. Growing Core Earning Pillars by Leveraging Strengths Business Portfolio SHIFT (Value Creation) Framework SHIFT In North America Tubular Group Companies SBU, we improved profitability through consolidation and efficiency of Management base SHIFT management resources and strengthened our resilie
Slide 15: 13. Growing Core Earning Pillars by Leveraging Strengths (Steady Business Growth)
13. Growing Core Earning Pillars by Leveraging Strengths 10.収益力強化に向けた取り組み事例 事業ポートフォリオのシフト Business Portfolio SHIFT (Steady Business Growth) Framework 仕組みのシフト SHIFT 強みを活かした収益の柱の強化育成XXX We have started providing mobile telecommunications network and services in Ethiopia together with the Vodafone M
Slide 16: 14. Adapting to Social Structural Changes (Seeding)
14. Adapting to Social Structural Changes (Seeding) 10.収益力強化に向けた取り組み事例 事業ポートフォリオのシフト Business Portfolio SHIFT Framework 仕組みのシフト SHIFT 強みを活かした収益の柱の強化育成XXX We are in progress of developing new businesses, such as DX and energy transition, as a preparation for mid- to Management 経営基盤のシフトbase SHIFT l
Slide 17: 15. Towards the second half of SHIFT 2023
15. Towards the second half of SHIFT 2023 Accelerate Business Portfolio SHIFT to demonstrate downside resilience to the drastically changing external environment as well as to capture new revenue opportunities. By completing these initiatives in SHIFT 2023, sustainable growth at ROE of 12-15% wi
Slide 18: Appendix
Appendix 17 © 2022 Sumitomo Corporation
Slide 19: Contents
Contents 16. Assumptions and Sensitivity P. 19 Quarterly Trend for Profit for the Period Attributable to Owners of 17. the Parent by Segment (FY2021・FY2022) P. 20 18. Quarterly Trend for One-off Profits/Losses by Segment (FY2021・FY2022) P. 21-22 19. Performance Overview by Segment P. 23-40 20. Summa
Slide 20: 16. Assumptions and Sensitivity
16. Assumptions and Sensitivity FY2022 Revised Sensitivity to Net Income Prices and Mineral Resources Equity Share of Production FY2021 Results FY2022 Results Initial Forecasts (Nov. 2022) (Annual base, Nov. 2022 Forecasts announcements) Q1-2 Q1-4 Q1 Q2 Q1-2 Q3-4 Q1-4 Exchange rate YEN/US$ 109.81 11
Slide 21: 17. Quarterly Trend for Profit by Segment (FY2021・FY2022)
17. Quarterly Trend for Profit for the Period Attributable to Owners of the Parent by Segment (FY2021・FY2022) (Unit: billions of yen) FY2021 Results FY2022 Results Cumulative Cumulative Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Results Results Metal Products 7.2 15.6 18.6 13.7 55.2 24.3 28.0 52.3 Transportation & 14.
Slide 22: 18. Quarterly Trend for One-off Profits/Losses by Segment (FY2022)
18. Quarterly Trend for One-off Profits/Losses by Segment (FY2022) (Unit: billions of yen) Cumulative Q1 Q2 Q3 Q4 Results Main factors Metal Products 0.0 4.0 4.0 Q2 Tax-effect on structural reform, etc.: approx.+4.0 Transportation & 1.0 0.0 1.0 Construction Systems Q2 Power infrastructure business:
Slide 23: 18. Quarterly Trend for One-off Profits/Losses by Segment (FY2021)
18. Quarterly Trend for One-off Profits/Losses by Segment (FY2021) (Unit: billions of yen) Cumulative Q1 Q2 Q3 Q4 Results Main factors Whole Structural reform, losses related to the Russian-Ukrainian situation: approx.-1.0 (Q1: approx.-2.0, Metal Products -2.0 2.0 1.0 -2.0 -1.0 year Q2: approx.+2.0,
Slide 24: 19. Performance Overview (Metal Products)
19. Performance Overview (Metal Products) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥27.0 bil. increase from FY2021 Q2) (Excl. One-off Profits/Losses) FY2021 FY2022 Increase/ Revised Rev
Slide 25: 19. Performance Overview (Metal Products)
19. 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.) * Oil Drilling Facilities Historical Data for Hot Rolled Steel Sheet Export Prices (Japan) Historical Data for U.S. Rig Count (U.S.)
Slide 26: 19. Performance Overview (Transportation & Construction Systems)
19. Performance Overview (Transportation & Construction Systems) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥9.0 bil. increase from FY2021 Q2) (Excl. One-off Profits/Losses) FY2021 FY2022
Slide 27: 19. Performance Overview (Transportation & Construction Systems)
19. Performance Overview (Transportation & Construction Systems) (Unit: billions of yen) FY2021 Q2 FY2022 Q2 Increase/ End of End of Increase/ Results Results Decrease FY2021 FY2022 Q2 Decrease Gross profit 90.5 120.0 +29.5 Total assets 1,751.7 1,941.7 +190.0 Lease, Ship & Aerospace Business 8.1 10.
Slide 28: 19. Performance Overview (Transportation & Construction Systems)
19. Performance Overview (Transportation & Construction Systems) Global Map of Mobility Business Europe Toyota Ukraine (Ukraine) Moto Pfohe EOOD (Bulgaria) Engineering service Summit Motors Slovakia (Slovakia) Auto parts manufacture Summit Motors Slovenia (Slovenia) Automotive sales & marketing Aimo
Slide 29: 19. Performance Overview (Infrastructure)
19. Performance Overview (Infrastructure) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥10.0 bil. decrease from FY2021 Q2) (Excl. One-off Profits/Losses) FY2021 FY2022 Increase/ Revised Rev
Slide 30: 19. Performance Overview (Infrastructure)
19. Performance Overview (Infrastructure) Global Development of the Renewable Energy Business Our net ownership generation capacity of renewable energy is 1.5GW as of end of Mar. 2022. We aim to achieve 3GW or more by 2030. As of end of Mar. 2022 Topic: Solar Power Generation Business in Industrial
Slide 31: 19. Performance Overview (Media & Digital)
19. Performance Overview (Media & Digital) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥4.0 bil. decrease from FY2021 Q2) (Excl. One-off Profits/Losses) FY2021 FY2022 Increase/ Revised Rev
Slide 32: 19. Performance Overview (Media & Digital)
19. 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 33: 19. Performance Overview (Living Related & Real Estate)
19. Performance Overview (Living Related & Real Estate) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥15.0 bil. increase from FY2021 Q2) (Excl. One-off Profits/Losses) FY2021 FY2022 Increas
Slide 34: 19. Performance Overview (Living Related & Real Estate)
19. Performance Overview (Living Related & Real Estate) (Unit: billions of yen) FY2021 Q2 FY2022 Q2 Increase/ End of End of Increase/ Results Results Decrease FY2021 FY2022 Q2 Decrease Gross profit 112.7 120.4 +7.7 Total assets 1,527.7 1,669.0 +141.3 Lifestyle Business Division 86.6 85.3 -1.4 Lifest
Slide 35: 19. Performance Overview (Living Related & Real Estate)
19. Performance Overview (Living Related & Real Estate) Domestic Health Care Business: Business Expansion Around “Tomod’s” in Tokyo Metropolitan Area 1 History of Tomod’s Further Expansion of Management Base 2 Development of Tomod’s Stores ・Continue opening new stores and expand dispensing pharmacy
Slide 36: 19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY2022 Q2 Outlook for the Second Half FY2022 Q3-4 FY2022 (approx.¥71.0 bil. increase from FY2021 Q2) (Excl. One-off Profits/Losses)
Slide 37: 19. Principal Subsidiaries and Associated Companies
19. 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 FY2022 Shares in Equit
Slide 38: 19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) (Unit: billions of yen) FY2021 Q2 FY2022 Q2 Increase/ End of End of Increase/ Results Results Decrease FY2021 FY2022 Q2 Decrease Gross profit 125.6 197.8 +72.2 Total assets 2,747.4 3,060.5 +313.2 Mineral Resources & Energy*
Slide 39: Exposure of Upstream Mineral Resources & Energy Business
19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Exposure of Upstream Mineral Resources & Energy Business (Unit: billions of yen) As of Mar. 31, 2022 As of Sep. 30, 2022 Coking/Thermal Coal 80.0 130.0 Iron Ore 180.0 190.0 Copper* 100.0 140.0 Silver, Zinc, Lead 120.0 150.0
Slide 40: Ambatovy Nickel Project
19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Ambatovy Nickel Project FY2022 Q3-4 FY2022 Quarterly Trend for Profit Excluding One-off Profits/Losses FY2021 FY2022 Revised Revised (Unit: billions of yen) Sensitivity*2 Q2 Results Q2 Results Forecasts Forecasts Total: 5.0
Slide 41: Agriculture-Related Business Initiatives
19. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Agriculture-Related Business Initiatives Agribusiness SBU Strengthen existing businesses through expansion of products and functions and geographic expansion (Steady Business Growth) Crop Protection Trade & Distribution Bus
Slide 42: 20. Summary of Consolidated Statements of Comprehensive Income
20. Summary of Consolidated Statements of Comprehensive Income (Unit: billions of yen) FY2021 Q2 FY2022 Q2 Increase/ Summary (Apr.-Sep.) (Apr.-Sep.) Decrease Revenues 2,543.1 3,354.4 +811.3 Gross profit Gross profit 488.0 626.1 +138.1 Tubular products business in North America: strong performance
Slide 43: 21. Summary of Consolidated Statements of Cash Flows
21. Summary of Consolidated Statements of Cash Flows (Unit: billions of yen) FY2021 Q2 FY2022 Q2 Increase/ Summary (Apr.-Sep.) (Apr.-Sep.) Decrease Net cash provided by (used in) operating Net cash provided by (used in) operating activities 90.2 165.2 +75.1 activities Basic profit cash flow* 188.2 2
Slide 44: 22. Summary of Consolidated Statements of Financial Position
22. Summary of Consolidated Statements of Financial Position (Unit: billions of yen) Increase/ FY2021 FY2022 Q2 Summary Decrease Assets 9,582.2 10,485.3 +903.2 Current assets 4,645.5 5,059.7 +414.2 Trade and other receivables (current / non-current) Increase: impact by rise in mineral resources pr
Slide 45: 23. Historical Data (1) PL, CF
23. Historical Data (1) PL, CF (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ f(x) BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenues 3,016.2 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
Slide 46: 23. Historical Data (2) BS, Key Financial Indicators
23. Historical Data (2) BS, Key Financial Indicators (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ f(x) BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total assets 7,832.8 8,668.7 9,021.4 7,817.8 7,761.8 7,770.6
Slide 47: 24. Shareholders' Composition
24. Shareholders’ Composition 40% 35% 32.1% 32.7% 30% 28.9% 28.0% 25% 20% 18.8% 14.0% 15% 13.1% 11.8% 10% 11.9% 8.7% 5% 0% 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2022/9 Overseas Trust Banks Individual and Others Other Corporations Financial Institutions (excl. T