Slide 1: Financial Results for the Third Quarter Ended December 31, 2022
Financial Results for the Third Quarter Ended December 31, 2022（Reference） February 2, 2023 Sojitz Corporation Copyright © Sojitz Corporation 2023 1
Slide 2: Caution regarding Forward-looking Statements and Original Language
Caution regarding Forward-looking Statements and Original Language This document contains forward-looking statements based on information available to the company at the time of disclosure and certain assumptions that management believes to be reasonable. Sojitz makes no assurances as to the actual
Slide 3: Index
Index 1. Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2023 2. Dividends 【Supplemental Data】 Ⅰ. Segment Information Ⅱ. Summary of Financial Results Copyright © Sojitz Corporation 2023 3
Slide 4: Financial Results for the Third Quarter and Full Year Forecast
1. Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2023 Copyright © Sojitz Corporation 2023 4
Slide 5: FY22 Q3 Summary
FY22 Q3 Summary ◼ Massive increase in income, setting new record, following rises in product and coal prices and steady growth of non-resource businesses ◼ Generation of profits accompanied by cash with solid core operating cash flow ◼ No revision to full-year forecasts to reflect costs associated w
Slide 6: Summary of Profit or Loss
Summary of Profit or Loss FY22 FY22 Achieved FY21 Q3 FY22 Q3 Difference Revised Forecast Revised Forecast Against Revised (BN JPY) (Nov. 1, 2022) (Feb. 2, 2023) Forecast Revenue 1,548.6 1,925.3 ＋ 376.7 - - - Gross profit 190.7 263.4 ＋ 72.7 340.0 345.0 76% SG & A expenses (130.1) (162.0) (31.9) (230.
Slide 7: Profit for the period by segment
Summary of Profit or Loss Profit for the period by segment Profit for the period Main Factors Behind Difference (BN JPY) 108.7 ■Automotive ¥6.9 bn (+¥1.0 bn) 110.0 Increased due to yen depreciation in overseas automobile 6.9 businesses 100.0 4.4 ■Aerospace & Transportation Project ¥4.4 bn (+¥2.1 bn)
Slide 8: FY22 Forecast Profit for the Year by Segment
FY22 Forecast Profit for the Year by Segment FY22 FY22 FY22 Revised Revised Q3 Forecast Forecast Progress Overview (BN JPY) (Nov.1, 2022) (Feb.2, 2023) ■ Automotive 6.9 6.0 8.0 ■Automotive Upward revision based on steady progress up to Q3 ■ Aerospace & ■Aerospace & Transportation Project Transportat
Slide 9: Summary of Balance Sheets
Summary of Balance Sheets FY22 Changes in Total Equity FY22 End of End of Revised (End of Mar. 2022 vs. Difference Initial (BN JPY) Mar. 2022 Dec. 2022 Forecast End of Dec. 2022, Breakdown) Forecast (Feb 2, 2023) (BN JPY) ⚫ Increased due to foreign exchange rates +28.5 ⚫ Profit for the period +108.7
Slide 10: Cash Flow Management
Cash Flow Management ◼ Actively share buybacks to be conducted in final year of MTP2023 while being mindful of cash allocation ◼ Maintain positive six-year aggregate core cash flow during MTP2023 FY21 MTP2023 Initial FY21 FY22 Q3 ＋ 3-Year Target (Aggregate) (BN JPY) FY22 9month (FY21–FY23) Core oper
Slide 11: Summary of CF
Summary of CF (BN JPY) 200.0 Operating Cash Flow Investing Cash Flow FCF Core Cash Flow 150.0 128.0 100.0 85.0 81.7 49.3 65.1 79.5 50.0 40.5 4.8 10.5 1.3 0.0 (8.0) (50.0) (35.7) (35.7) (46.3) (73.7) (100.0) (150.0) (138.8) (200.0) FY19 FY20 FY21 FY22 Q3 Copyright © Sojitz Corporation 2023 11
Slide 12: Investments and Asset Replacement
Investments and Asset Replacement Total Investments ¥67.0bn ◼ Telecommunications tower operating business in the Philippines ◼ Off-shore wind power businesses in Taiwan Infrastructure & ¥29.0bn ◼ Railcar Leasing business in U.S. Healthcare ◼ Office Building Development Project in the Philippines ◼ P
Slide 13: Major One-time Gain/Loss
Major One-time Gain/Loss FY21 Q3 FY22 Q3 (BN JPY) ・Gain on sales of surface- ・Sale of a J-REIT management mounting machines related company business ・Sale of a telecommunications Non-Resource 0.0 ・Loss on sales of surface- 9.6 tower operating business mounting machines related in the Philippines bus
Slide 14: Breakdown of Resource and Non-Resource Profit
Breakdown of Resource and Non-Resource Profit FY21 FY22 Difference FY19 FY20 FY21 Q3 Q3 (BN JPY) A. Profit for the period / year 62.0 108.7 +46.7 60.8 27.0 82.3 B. Total one-time Gain and loss (2.7) 3.8 +6.5 1.5 (0.2) (13.1) A. – B. Profit for the period / year 64.7 104.9 +40.2 59.3 27.2 95.4 (Exclu
Slide 15: Commodity Prices, Foreign Exchange, and Interest Rate
Commodity Prices, Foreign Exchange, and Interest Rate FY21 FY22 Results Latest data (Apr.-Dec. avg.) (Apr.-Dec.avg.) (as of Jan. 27, 2023) Coking coal *1 US$278.0/t US$322.8/t US$329.5/t Thermal coal *1 US$163.9/t US$394.5/t US$301.0/t Crude oil (Brent) US$74.0/bbl US$99.4/bbl US$86.7/bbl Exchange r
Slide 16: 2. Dividends
2. Dividends Copyright © Sojitz Corporation 2023 16
Slide 17: Shareholder Returns Policy
Shareholder Returns Policy ◼ Sojitz recognizes that paying stable and continuous dividends while enhancing shareholder value through the accumulation and effective use of retained earnings ◼ Our basic policy is to target a consolidated payout ratio of about 30% FY2022An Dividend Forecast Annual divi
Slide 18: Stock Price, PBR Trend, and Credit Ratings
Stock Price, PBR Trend, and Credit Ratings TOPIX（pt） Stock Price of Sojitz (￥) （as of the end of Dec. 2022) （as of the end of Dec. 2022) （as of the end of Dec. 2021) 3,000 vs TOPIX Sojitz TOPIX vs. the end of Stock Sojitz TOPIX Stock +50.5% 2,600 Dec.2021 Price 1,728 1992.3 Price 2,513 1,891.7 Outpe
Slide 19: Supplemental Data: Segment Information
【Supplemental Data】 Ⅰ. Segment Information * Effective April 1, 2022, Sojitz Group reorganized the Consumer Industry & Agriculture Business and the Retail & Consumer Service segments and changed its reporting figures for FY21 Q3. Copyright © Sojitz Corporation 2023 19
Slide 20: Automotive
Automotive FY22 Q3 Summary Vehicle Sales (BN JPY) Dealership Business Distributor Business Main Factors Behind Difference （unit） （unit） FY21 Q3 FY22 Q3 Difference 45,000 45,000 41,500 37,700 Gross profit 33.1 41.6 8.5 【 Profit for the period 】 40,000 40,000 Increased due to yen 35,000 35,000 SG&A ex
Slide 21: Aerospace & Transportation Project
Aerospace & Transportation Project FY22 Q3 Summary Transportation-related initiative (BN JPY) Sojitz Receives Order for Construction of a Rail FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference Maintenance Depot in India for a High-speed Rail Project Gross profit 10.7 14.6 3.9 【 Profit for th
Slide 22: Infrastructure & Healthcare
Infrastructure & Healthcare FY22 Q3 Summary Initiatives of Infrastructure-related business (BN JPY) Extension of Production Sharing Contract for Tangguh LNG Project FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference Maximization of project value and contribution to decarbonization and recycli
Slide 23: Net Power-Generation Capacity, Region, and Contract Terms
Net Power-Generation Capacity, Region, and Contract Terms (MW) 2,500 8% Fuel oil Gas Solar power Wind power Biomass 石油 ガス 太陽光 風力 バイオマス 2,000 Contract Terms 1,500 92% 1,000 500 Long-term contract Spot contract *As of Dec. 31, 2022 (CY) 0 (CY)* 2017 2018 2019 2020 2021 2022 2023 4% 9% Results and Fore
Slide 24: Metals, Mineral Resources & Recycling
Metals, Mineral Resources & Recycling FY22 Q3 Summary Change in Coal Sales Volume (BN JPY) (1,000 ton) FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference 10,000 Thermal Coal Coking Coal PCI Coal Gross profit 35.1 70.3 35.2 【 Profit for the period 】 Increased due to higher selling SG&A expense
Slide 25: Metals & Mineral Resources YoY Main Factors Behind Difference
Metals & Mineral Resources YoY Main Factors Behind Difference （BN JPY） Impact of commodity prices approx. +27.1 included +23.0 (0.5) +0.5 +3.4 (6.4) Coal- Ferroalloys Industrial and non- Steel-related Others related minerals- ferrous metals- related Metal One Copper : related SDPL ＋3.4 One-time loss
Slide 26: Chemicals
Chemicals FY22 Q3 Summary Sales Volume for Methanol (BN JPY) (1,000 ton) FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference 2,500 2,300 Gross profit 38.7 48.1 9.4 【 Profit for the period 】 1,900 1,900 2,000 1,800 1,800 Increased due to higher prices of 1,700 SG&A expenses (22.5) (24.6) (2.1)
Slide 27: Consumer Industry & Agriculture Business
Consumer Industry & Agriculture Business FY22 Q3 Summary Profit of overseas fertilizers business (BN JPY) ◼ Development of stable earnings foundations by leveraging strength of top-class market shares in Thailand, the Philippines, and Vietnam FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference
Slide 28: Retail & Consumer Service
Retail & Consumer Service FY22 Q3 Summary Business for increasing value of rental residential (BN JPY) Sojitz and Goldman Sachs Establish FY21 Q3 FY22 Q3 Difference Main Factors Behind Difference “Sojitz Residential Partners” as a Rental Residential Value 【 Profit for the period 】 Add Business in Ja
Slide 29: Others
Others Major Subsidiaries and Associates (BN JPY) Equity Company name FY21 Q3 FY22 Q3 Difference Business Description ownership Import/export and sales of general Sojitz Machinery Corporation 100% 1.3 2.1 0.8 industrial machinery Total 1.3 2.1 0.8 *1 The equity ownership is as of the end of December
Slide 30: Supplemental Data: Summary of Financial Results
【Supplemental Data】 Ⅱ. Summary of Financial Results Copyright © Sojitz Corporation 2023 30
Slide 31: Summary of Profit or Loss (Results)
Summary of Profit or Loss (Results) FY22 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 (BN JPY) Q3 Net sales 4,321.7 3,934.5 4,046.6 4,105.3 4,006.6 3,745.5 4,209.1 ー ー ー ー ー (JGAAP) Revenue 2,006.6 1,747.8 1,803.1 1,809.7 1,658.1 1,555.3 1,816.5 1,856.2 1,754.8 1,602.5 2,100.8 1,925.3 Gros
Slide 32: Summary of Balance Sheets (Results)
Summary of Balance Sheets (Results) End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Dec. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 (BN JPY) Total assets 2,190.7 2,150.1 2,220.2 2,297.4 2,056.
Slide 33: Summary of Cash Flow (Results)
Summary of Cash Flow (Results) End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Mar. End of Dec. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 (BN JPY) Core cash flow ー ー ー ー 18.3 5.5 (56.7) 63.1 1.3 (8.0) 10
Slide 34: Summary of Profit or Loss
Summary of Profit or Loss (BN JPY) 90.0 Profit for the year(Attributable to owners of the Company) ROA 4.0% 80.0 82.3 3.0% 3.3% 70.0 3.0% 2.7% 2.5% 70.4 60.0 60.8 56.8 50.0 1.9% 2.0% 1.7% 40.0 40.8 1.5% 36.5 30.0 33.1 1.2% 27.0 1.0% 20.0 10.0 0.0 0.0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Copyrigh
Slide 35: Summary of Balance Sheets
Summary of Balance Sheets Net Interest-Bearing Debt Total Equity Net DER (BN JPY) (Times) 800.0 770.2 1.5 728.0 700.0 629.6 618.2 613.2 619.0 611.1 603.5 550.9 571.6 610.6 600.0 550.5 586.4 584.7 579.1 1.1 1.1 520.3 1.1 1.0 1.1 1.0 1.1 500.0 1.0 1.0 400.0 300.0 0.5 200.0 100.0 0.0 0.0 End of End of
Slide 36: Summary of Cash Flow
Summary of Cash Flow (BN JPY) CF from operating activities CF from investing activities FCF Core CF 150.0 99.9 98.8 96.5 100.0 85.0 65.1 66.0 63.1 50.0 39.1 40.5 49.3 54.3 25.3 18.3 4.8 0.9 12.4 10.5 0.0 5.5 1.3 (13.8) (8.0) (31.3) (33.9) (32.2) (35.7) (35.7) (50.0) (42.2) (56.7) (73.7) (100.0) (86.
Slide 37: Copyright © Sojitz Corporation 2023
Copyright © Sojitz Corporation 2023 37