Slide 1: Financial Results for the Year Ended March 31, 2023
May 16, 2023 Correction A double underlined item is corrected (Page 10,11,and 17) Financial Results for the Year Ended March 31, 2023 Progress of Medium-Term Management Plan 2023 – Start of the Next Decade – May 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: FY2022 Summary
MTP2023 -Start of the Next Decade- FY2022 Summary FY2022 Results ◼ Record-breaking earnings for two consecutive years (FY2022: ¥111.2 bn) ◼ Accomplishment of all financial targets of MTP 2023 (except PBR 1 times or above) ◼ Implementation of allowances through review of certain assets and projects F
Slide 4: FY2023 Financial Targets
MTP2023 -Start of the Next Decade- FY2023 Financial Targets Business Performance Business Divisions (BN JPY) Gross Profit ¥320.0bn ■ Automotive 7.0 SG&A Expenses ¥(230.0)bn ■ Aerospace & Transportation Project 4.0 Share of profit (loss) of investments accounted for using the equity method ¥45.0bn ■
Slide 5: Earnings Growth Leading Up to FY2023 year end
MTP2023 Start of the Next Decade Earnings Growth Leading Up to FY2023 year end Profit for the year (BN JPY) 134.0 +22.5 Establishing the robust business foundation 111.2 (33.0) & Transforming the business portfolio One-time 95.0 Gain/Loss Commodity +13.5 In FY22 (7.5) Prices Interest rate impact, No
Slide 6: Steady, Growth of earnings power
MTP2023 -Start of the Next Decade- Steady, Growth of earnings power ◼ Accomplished highest profit for the year in FY22 since Sojitz established ◼ Forecast of ¥95.0 bn for FY2023 profit for the year based on the current operating environment POST MTP 2023 Profit for the year: BN JPY 111.2 Non resourc
Slide 7: Establish Strong Business Base and Transformation
MTP2023 -Start of the Next Decade- Establish Strong Business Base and Transformation ◼ Advancement of sophisticated strategies in focus areas based on growth strategies, improvement of earnings capacity and competitiveness of executed investments ◼ Drastic transformation of earnings structure throug
Slide 8: Investment for Growth Strategy and Focus areas
MTP2023 -Start of the Next Decade- Investment for Growth Strategy and Focus areas Investment in FY23 Forecast Focus area under MTP2023 (Major cases) Current steady growth Infrastructure & Healthcare Investment Essential infrastructure development and service provision Allocation ◼ Energy Service Com
Slide 9: Investment Progress – MTP2017, MTP2020, and MTP2023
MTP2023 -Start of the Next Decade- Investment Progress – MTP2017, MTP2020, and MTP2023 MTP2017 Cumulative 3-years FY21 Results FY22 Results FY23 Forecast earnings contributions The amount of ¥315.0bn (FY21 - FY23） the investments Outstanding ROI Approx.25.0% ROI Approx.10.0% investments Initial Appr
Slide 10: DX Strategy Initiatives and Policy
MTP2023 -Start of the Next Decade- DX Strategy Initiatives and Policy ◼ Acceleration of initiatives for transforming business models by more deeply engraining digital transformation strategies into Companywide management and business strategies and business model transformation efforts ◼ Transformat
Slide 11: Cash Flow Management
MTP2023 -Start of the Next Decade- Cash Flow Management ◼ Maintain positive six-year aggregate core cash flow during MTP2023 MTP2020 MTP2023 FY23 3-Year (Aggregate) FY21 FY22 3-Year Target (Aggregate) (FY18–FY20) Forecast (FY21–FY23) (BN JPY) Core operating cash flow 219.0 129.0 145.0 115.0 Approx.
Slide 12: Shareholder Returns Policy
MTP2023 -Start of the Next Decade- 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% An FY22
Slide 13: Sustainability Challenge
MTP2023 -Start of the Next Decade- Sustainability Challenge Decarbonization Target to achieve net-zero emissions Results in reductions of Coal, Oil, and Gas Assets Scope1 Reduce emissions 60% by 2030; achieve net-zero emissions by 2050 - Interest assets Scope2 Net-zero emissions by 2030 Scope3 Therm
Slide 14: Initiatives to Strengthen Human Capital Management
MTP2023 -Start of the Next Decade- Initiatives to Strengthen Human Capital Management Human Capital KPI Targets (Dynamic) Outcome Input／Output （Human capital Enhancement） Value created Human Capital KPI Focus Areas KPI progress （Reference） Targets Vision for Targets(dynamic) 2030 Ratio of female Rat
Slide 15: FY2022 Financial Results
MTP2023 -Start of the Next Decade- FY2022 Financial Results ◼ Massive rise in profit for the year to ¥111.2 bn in FY2022 following growth in automobile, steel, chemical, and other non-resource businesses; product selling price increases; and improved coal market conditions ★Records high ◼ Robust cor
Slide 16: Evaluation by Society
MTP2023 -Start of the Next Decade- Evaluation by Society Working environment where Sojitz employees can work much more actively 7 consecutive years 12 consecutive years The 4th time Highest Prize Sojitz was awarded Platinum Kurumin Health and productivity Stock Selection Plus certification establish
Slide 17: Stock Price, PBR Trend, and Credit Ratings
MTP2023 -Start of the Next Decade- Stock Price, PBR Trend, and Credit Ratings TOPIX (pt) Stock price of Sojitz (¥) 1.7 3,300 3,400 1.6 (as of the end of Mar. 2022) (as of the end of Mar. 2023) (as of the end of Mar. 2023) vs TOPIX 1.5 Sojitz TOPIX Sojitz TOPIX vs the end Stock price 2,017 1,946 Stoc
Slide 18: Copyright © Sojitz Corporation 2023
Copyright © Sojitz Corporation 2023 18