Slide 1: Financial Results for the First Half Ended September 30, 2020
Financial Results for the First Half Ended September 30, 2020 October 30, 2020 Sojitz Corporation Copyright © Sojitz Corporation 2020
Slide 2: FY2020 2Q Summary
FY2020 2Q Summary Consistently challenging operating environment despite moves to lift restrictions on movement of people and commodities imposed in response to COVID-19 pandemic and to restart economic activities First half performance representing progress of 30% toward full-year forecast with
Slide 3: Summary of Profit or Loss (Profit for the period by segment)
Summary of Profit or Loss (Profit for the period by segment) Revisions to full-year forecasts for Machinery & Medical Infrastructure, Foods & Agriculture Business, Aerospace & Transportation Project, Retail & Lifestyle Business Division based on the progress by the first half ended September 30, 202
Slide 4: Effects of COVID-19
Effects of COVID-19 Main Businesses Conditions Leading Assumptions for up to First half Second half Single-month profitability achieved in July 2020 Augmentation of sales activities in ■ Automotive Augmentation of online sales measures in U.S. conjunction with gradual demand recovery automotive deal
Slide 5: Cash Flow Management
Cash Flow Management Positive three-year aggregate FCF and core cash flow Funding to be secured using on-hand funds as well as long-term commitment lines denominated in yen and other currencies FY2018・ MTP 2020 FY2020 2Q FY2019 3-year total Results (FY2018–FY2020) Results Core operating ¥159.0 bn ¥2
Slide 6: Prior Initiatives Under MTP 2020: Investments and Loans, Earnings Contributions
Prior Initiatives Under MTP 2020 Investments and Loans 1 — Earnings Contributions Steady progress in generating profits from investments and loans, despite some delays MTP 2017 (FY2020 Forecast) The amount of the FY2018 FY2019 FY2020 Results investments and Loans over MTP2017 ¥315.0bn Results Foreca
Slide 7: Prior Initiatives Under MTP 2020: Earnings Contributions in Final Year of Plan
Prior Initiatives Under MTP 2020 Investments and Loans 2 — Earnings Contributions in Final Year of Plan MTP 2017 Earnings Contribution Amounts Progress Overview Future Initiatives Steady earnings contributions FY2020 Forecast in line with plans Renewable energy businesses, Steady pursuit of profit
Slide 8: Dividend Policy
Dividend Policy Basic Dividend Policy Sojitz recognizes that paying stable, continuous dividends is a management priority, together with enhancing shareholder value and boosting competitiveness through the accumulation and effective use of retained earnings. Under MTP2020, our basis policy will be t
Slide 9: Forward-Looking Initiatives—Value Creation
Forward-Looking Initiatives—Value Creation Function Augmentation and Other Innovation Investment Initiatives Acquire and Strengthen Functions Expansion of New business areas Digital transformation investments, etc. Improvement of medium-to-long term corporate value, Utilizing digital technologies de
Slide 10: Initiatives for Sustainability
Initiatives for Sustainability Formulating policies related to the coal interests business and the coal-fired power generation business The Policies Progress Change in Thermal Coal Interests Assets ✓ Sold a part of thermal coal interests in FY2019 Billions of Yen ✓ Reducing the assets of our thermal
Slide 11: Reference: Policies of MTP2020
【Reference】 Policies of MTP2020 Copyright © Sojitz Corporation 2020 11
Slide 12: Disciplined Balance Sheet and Cash Flow Management
Disciplined Balance Sheet and Cash Flow Management CF management Deeper-level BS management Quality (Core CF） assets Quality assets Asset and Low- business value increases profit Asset assets, Asset replacement etc. replacement Asset management focused on risks and returns Growth Interest- investmen
Slide 13: Examples of Value Creation
Examples of Value Creation Renewable Energy Business Hospital Project in Turkey May, 2020 Opened Deal Value:JPY30 billion Contributing to improved quality of life by providing high-quality medical infrastructure Sojitz’s Capabilities Displayed FY2017 FY2018 FY2019 Contribution (in Billion of Yen) 0.
Slide 14: Caution regarding Forward-looking Statements
Caution regarding Forward-looking Statements 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. Actual results may differ materially based on various factors incl