Sumitomo Corporation · TSE:8053

Sumitomo — FY2020 Earnings Presentation

38 slides from Sumitomo's earnings presentation, May 7, 2021

  1. Slide 1: Annual Results for FY2020

    Annual Results for FY2020 2021-2023 May 7, 2021 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 forward-looking statements reflect man

  2. Slide 2: 1. Operating Results (Profit/Loss for the year)

    1. Operating Results (Profit/Loss for the year) ■ One-off losses 〈 Summary(Results)〉 FY2019 FY2020 (Q1) Increase/  Impairment loss in nickel mining and refining business in (Unit: Billions of yen) Results Q1 Q2 Q3 Q4 Results Decrease Madagascar (approx.-55.0 billion) (Apr.-Jun.) (Jul.-Sep.) (Oct.-D

  3. Slide 3: 2. One-off profits/losses

    ２. One-off profits/losses (Unit: Billions of yen） FY2020 Business units Projects Q1 Q2 Q3 Q4 Total (Apr.-Jun. ) (Jul.-Sep. ) (Oct.-Dec. ) (Jan.-Mar. ) Tubular products business - -12.0 -1.0 -21.0 -34.0 Metal Products Specialty steel business in India - - - -8.0 -8.0 Transportation & Automotive finan

  4. Slide 4: 3. Profit/Loss for the year by Segment

    3. Profit/Loss for the year by Segment 〈 Summary by segment 〉 (excl. one-off profits/losses (Results) ) FY2019 (Results) FY2020 (Results) (Unit: Billions of yen) ■ Metal Products  Recovery trend of overseas steel service centers  Decrease in earnings of tubular products business in North America ■

  5. Slide 5: 4. Cash Flows / Financial Position

    4. Cash Flows / Financial Position ● Cash Flows (Unit: Billions of yen) ● Financial Position (Unit: Trillions of yen) FY2019 FY2020 As of Mar. 31, 2020 As of Mar. 31, 2021 Total assets 8.1 Total assets 8.1 Operating activities +326.6 +467.1 Investing activities -203.4 -120.1 Other Current liabilitie

  6. Slide 6: 5. Dividend for FY2020

    5. Dividend for FY2020 To increase dividends by achieving medium- to long-term earnings growth while adhering to the Basic policy Company’s fundamental policy of paying shareholders a stable dividend over the long term. Mid-term We will decide the dividend amount in view of the situations regarding

  7. Slide 7: 6. Medium-Term Management Plan 2020 (Profit/Loss for the year)

    6. Medium-Term Management Plan 2020 (Profit/Loss for the year) Results  FY2018 Initial Plans Achieved record-high profits (Unit: Billions of yen) FY2018 FY2019 FY2020  FY2019 and FY2020 Decrease in earnings due to trade friction Profit/Loss (-) for the year (FY2018) 320.0 320.5 171.4 -153.1 betwee

  8. Slide 8: 7. Medium-Term Management Plan 2020 (Cash Flows)

    7. Medium-Term Management Plan 2020 (Cash Flows) Initial Plans Results 〈 Major results in three-year total〉 Post-dividend +200.0 billion yen or free cash flow ＋310.0 billion yen more (3-year total)  Basic profit cash flow was well-progressed in FY2018 but (Unit: Billions of yen) dropped in FY2019 a

  9. Slide 9: 8. Structural Reform in FY2020

    8. Structural Reform in FY2020 Specific efforts Results  Analyzed profitability of approx. 400 companies, and identified 101 companies to exit  Exit from 32 companies was completed by the end of FY2020  Identified 71 companies to draw road map and started to implement turnaround measures  By acc

  10. Slide 10: 9. New Medium-Term Management Plan (FY2021-FY2023)

    9. New Medium-Term Management Plan (FY2021-FY2023) FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 Increase/Decrease Increase/Decrease (Reference)Key indicators Results Forecasts Plans (Unit : Billion of yen) Results Forecasts Plans Plans Exchange rate 〈YEN/US$〉 106.10 105.00 105.00 (A) (B)-(A) (B)

  11. Slide 11: 10. Shareholder Return (Dividend Policy)

    10. Shareholder Return (Dividend Policy) • Sumitomo Corporation aims to increase dividends by achieving medium and long-term earnings growth while adhering to its fundamental policy of paying shareholders a stable dividend over the long term. • Under the medium-term management plan (SHIFT2023), we d

  12. Slide 12: Appendix

    Appendix 11 © 2021 Sumitomo Corporation

  13. Slide 13: Contents

    Contents 11. Summary of Consolidated Statements of Comprehensive Income （P.13） 12. Summary of Consolidated Statements of Cash Flows （P.14） 13. Summary of Consolidated Statements of Financial Position （P.15） 14. Medium-Term Management Plan 2020, Key Financial Indicators （P.16） 15. Investment & Loan b

  14. Slide 14: 11. Summary of Consolidated Statements of Comprehensive Income

    11. Summary of Consolidated Statements of Comprehensive Income FY2019 FY2020 Increase/ (Unit: Billions of yen) Results Results Decrease Summary (Apr.2019-Mar.2020) (Apr.2020-Mar.2021) amount % ≪Gross profit ≫ Revenues 5,299.8 4,645.1 -654.8 -12% ・Peak out of large-scale projects in power infrastruct

  15. Slide 15: 12. Summary of Consolidated Statements of Cash Flows

    12. Summary of Consolidated Statements of Cash Flows FY2019 FY2020 Increase/ (Unit: Billions of yen) Results Results Summary Decrease (Apr.2019-Mar.2020) (Apr.2020-Mar.2021) Net cash provided by (used in) operating activities 326.6 467.1 +140.4 ≪Net cash provided by (used in) operating activities≫ ・

  16. Slide 16: 13. Summary of Consolidated Statements of Financial Position

    13. Summary of Consolidated Statements of Financial Position FY2019 FY2020 Increase/ (Unit: Billions of yen) Results Results Summary Decrease (as of Mar.31,2020) (as of Mar.31,2021) Assets 8,128.6 8,080.0 -48.6 ≪Trade and other receivables(Current/Non-current)≫ Current assets 3,536.4 3,497.6 -38.8 ・

  17. Slide 17: 14. Medium-Term Management Plan 2020, Key Financial Indicators

    14. Medium-Term Management Plan 2020, Key Financial Indicators Start of Medium-Term End of Medium-Term change (Unit: Billions of yen) Management Plan 2020 Management Plan 2020 （as of Mar. 31, 2018） （as of Mar. 31, 2021） Total Assets 7,770.6 8,080.0 approx. +310.0 （Major factors ） Increase due to cha

  18. Slide 18: 15. Investment & Loan by Segment

    15. Investment & Loan by Segment Investment & Loan (bil. yen) Cumulative Total Major investments & loans（3 years） FY2020 Results (Apr.2018-Mar.2021)  Specialty steel business in India Metal Products 60.0 6.0  Oil and gas venture company in Norway Transportation &  Northern Europe parking provider

  19. Slide 19: 16. Quarterly Trend for Profit/loss by Segment (FY2020)

    16. Quarterly Trend for Profit/loss for the year attributable to owners of the parent and One-off profits/losses by Segment (FY2020) Profit/loss(-) for the year attributable to owners of the parent Major one-off profits/losses (Annual Results) *Underlined is related to Q4 results. FY2020 Results  L

  20. Slide 20: 16. Quarterly Trend for Profit/loss by Segment (FY2019)

    16. Quarterly Trend for Profit/loss for the year attributable to owners of the parent and One-off profits/losses by Segment (FY2019) Profit/loss(-) for the year attributable to owners of the parent Major one-off profits/losses (Annual Results) FY2019 Results Cumulative  Losses from impairment and w

  21. Slide 21: 17. Quarterly Trend excluding one-off profits/losses by Segment

    17. Quarterly Trend for Profit/loss for the year attributable to owners of the parent excluding one-off profits/losses by Segment（FY2019／FY2020） （Unit : Billions of yen） Transportation & Metal Products Construction Systems Infrastructure Total︓17.0 Total ︓11.0 Total ︓39.0 Total ︓26.0 Total ︓63.0 Tot

  22. Slide 22: 18. Profit and loss by Segment (FY2021 Forecasts and FY2022 Plans)

    18. Profit and loss by Segment (FY2021 Forecasts and FY2022 Plans) （ Unit: Billions of yen ） Transportation & Metal Products Infrastructure Construction Systems 120 120 120 80 80 80 53.0 32.0 37.0 40 21.0 40 25.0 40 13.0 0 0 0 -40 -40 -17.5 -40 -39.8 -80 -80 -80 -55.2 FY2020 FY2021 FY2022 FY2020 FY2

  23. Slide 23: 19. Performance Overview (1) (Metal Products)

    19. Performance Overview（1）（Metal Products） Key Financial Indicators Organization as of 1st. Apr. 2020*1 Organization as of 1st. Apr. 2021*2 FY2020 Results （¥14.8 bil. increase from FY2019) FY2021 Forecasts FY2019 FY2020 FY2020 FY2021 FY2022 Results Results Results Forecasts Plans Steel sheets Steel

  24. Slide 24: 19. Performance Overview (2) (Transportation & Construction Systems)

    19. Performance Overview（2）（Transportation & Construction Systems） Key Financial Indicators FY2020 Results (¥48.0 bil. decrease from FY2019) FY2021 Forecasts FY2019 * FY2020 FY2021 FY2022  Leasing business : decrease in earnings Leasing business Results Results Forecasts Plans  Automotive related

  25. Slide 25: 19. Performance Overview (3) (Infrastructure)

    19. Performance Overview（3）（Infrastructure） Key Financial Indicators Organization as of 1st. Apr. 2020*1 Organization as of 1st. Apr. 2021*2 FY2020 Results (¥117.1 bil. decrease from FY2019) FY2021 Forecasts FY2019 FY2020 FY2020 FY2021 FY2022 Results Results Results Forecasts Plans  Large-scale EPC

  26. Slide 26: 19. Performance Overview (4) (Media & Digital)

    19. Performance Overview（4）（Media & Digital） Key Financial Indicators FY2020 Results (¥6.0 bil. increase from FY2019) FY2021 Forecasts FY2019 FY2020 FY2021 FY2022 Results Results Forecasts Plans  Major group companies : stable  Major group companies : stable (Unit: Billions of yen) Profit / Loss (

  27. Slide 27: 19. Performance Overview (5) (Living Related & Real Estate)

    19. Performance Overview（5）（Living Related & Real Estate） Key Financial Indicators Organization as of 1st. Apr. 2020 Organization as of 1st. Apr. 2021* FY2020 Results (¥59.6 bil. decrease from FY2019) FY2021 Forecasts FY2019 FY2020 FY2020 FY2021 FY2022 Results Results Results Forecasts Plans  Fresh

  28. Slide 28: 19. Performance Overview (6) (Mineral Resources, Energy, Chemical & Electronics)

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Key Financial Indicators Organization as of 1st. Apr. 2020 Organization as of 1st. Apr. 2021* FY2020 Results (¥106.9 bil. decrease from FY2019) FY2021 Forecasts FY2019 FY2020 FY2020 FY2021 FY2022 Results Results Results

  29. Slide 29: Principal Subsidiaries and Associated Companies

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Principal Subsidiaries and Associated Companies Equity in earnings （Unit: Billions of yen） Shares in equity Company Main Business FY2019 FY2020 FY2021 (Mar. 31, 2021) Results Results Forecasts Oresteel Investments (Propr

  30. Slide 30: Ambatovy Nickel Project

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Ambatovy Nickel Project FY2020 Results︓120.0 billion yen in deficit  Recommenced production of nickel in March 2021, after suspending operations due to COVID-19 from March 2020.  Impairment loss of approx. –85.0 billio

  31. Slide 31: Mineral Resources Equity Share of Production and Sensitivity

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Mineral Resources Equity Share of Production and Sensitivity to Profit for Year FY2019 FY2020 FY2021 Sensitivity to net income (Annual base, excluding prices hedge, Results Q1 Q2 Q3 Q4 Results Forecasts as of May 2021) E

  32. Slide 32: Mineral Resources Equity Share of Production and Sensitivity

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Mineral Resources Equity Share of Production and Sensitivity to Profit for Year Sensitivity to net income FY2019 FY2020 FY2021 (Annual base, excluding prices hedge, Results Q1 Q2 Q3 Q4 Results Forecasts as of May 2021) E

  33. Slide 33: Exposure of Upstream Mineral Resources & Energy Business

    19. Performance Overview（6） （Mineral Resources, Energy, Chemical & Electronics） Exposure of Upstream Mineral Resources & Energy Business (Unit: Billions of yen ） As of Mar.31, 2020 As of Mar.31, 2021 Coking/Thermal Coal 70.0 60.0 Iron Ore 70.0 110.0 Copper 100.0 110.0 Silver, Zinc, Lead 90.0 60.0 *

  34. Slide 34: 20. Supplemental materials by Segment (Living Related & Real Estate)

    20. Supplemental materials by Segment （Living Related & Real Estate Business Unit） FY2019 FY2020 (Unit: Billions of yen) Increase/Decrease Results Results Living Related & Real Estate Gross profit 226.4 238.8 +12.4 Lifestyle & Retail Business Division 126.6 143.6 +17.0 Food & Agriculture Business Di

  35. Slide 35: 20. Supplemental materials by Segment (Mineral Resources, Energy, Chemical & Electronics)

    20. Supplemental materials by Segment （Mineral Resources, Energy, Chemical & Electronics Business Unit） FY2019 FY2020 (Unit: Billions of yen) Increase/Decrease Results Results Mineral Resources, Energy, Chemical & Electronics Gross profit 152.0 151.6 -0.4 *1 Mineral Resources and Energy 66.9 64.8 -2

  36. Slide 36: 21. Historical Data (1) PL, CF

    21. Historical Data（1）PL, CF （ Unit: Billions of yen ） MEDIUM-TERM MANAGEMENT PLAN ▶ f(x) BBBO2014 BBBO2017 Medium – Term Management Plan 2020 Fiscal Year ▶ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues 3,261.0 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 Gros

  37. Slide 37: 21. Historical Data (2) BS, Key Financial Indicators

    21. Historical Data（2）BS, Key Financial Indicators （ Unit: Billions of yen ） MEDIUM-TERM MANAGEMENT PLAN ▶ f(x) BBBO2014 BBBO2017 Medium – Term Management Plan 2020 Fiscal Year ▶ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total assets 7,226.8 7,832.8 8,668.7 9,021.4 7,817.8 7,761.8 7,770.6 7,

  38. Slide 38: 22. Shareholders' Composition

    22. Shareholders’ Composition 40% 36.0% Overseas 35% 32.7% 30% 28.1% 27.5% Trust Banks 25% 20% Individual and Others 17.6% 13.4% 15% 12.1% Other Corporations 12.7% 10% 11.2% Financial Institutions (excl. Trust Banks) 8.8% 5% 0% 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 20

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