Slide 1: Quarterly Results for FY2023
Quarterly Results for FY2023 (Six-month period ended September 30, 2023) November 2, 2023 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. Summary of FY2023 Q2 Results
1. Summary of FY2023 Q2 Results Profit for the period attributable to owners of the parent totaled ¥284.9 bil. Revised annual forecasts to ¥500.0 bil., which includes loss buffer of ¥-50.0 bil., as reserves to maintain sound portfolio. Annual dividend forecast revised to ¥125 per share, based
Slide 3: 2. Business Portfolio SHIFT
2. Business Portfolio SHIFT (Outcomes of Initiatives Evident in FY23 Performance) Anticipate FY23 Profits amounting to ¥500.0 bil. excluding one-off profits/losses (+¥40.0 bil compared to the initial forecasts) even under material changes in external environment from FY22. Below are the outcomes
Slide 4: 3. For Growth Beyond SHIFT 2023
3. For Growth Beyond SHIFT 2023 Through the implementation of SHIFT 2023 measures, the business portfolio has improved substantially, the profit level has also been raised significantly compared to the previous medium-term plan period, and we have returned to a growth trajectory. Enhance growth
Slide 5: FY2023 Q2 Results・FY2023 Forecasts
FY2023 Q2 Results・FY2023 Forecasts 4 © 2023 Sumitomo Corporation
Slide 6: 4. Operating Results (Profit for the Period)
4. Operating Results (Profit for the Period (Attributable to Owners of the Parent)) Profit for the period attributable to owners of the parent totaled ¥284.9 bil. Although ¥65.4 bil. decrease (-19%) compared to the same period of the previous fiscal year, non-mineral resources businesses remaine
Slide 7: 5. Profit for the Period by Segment
5. Profit for the Period by Segment Profit increased in the following segments: Transportation & Construction Systems, Infrastructure, Media & Digital. Transportation Mineral Resources, Corporate Metal Media Living Related (Unit: billions of yen) & Construction Infrastructure Energy, Chemical and
Slide 8: 6. Quarterly Trend for Profit for the Period
6. Quarterly Trend for Profit for the Period (excluding one-off profits/losses) Profit excluding one-off profits/losses increasing steadily, mainly in non-mineral resources businesses. FY2021 FY2022* FY2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Excl. one-off profits/losses (Bold at the top) (Unit: billion
Slide 9: 7. Operating Results (Cash Flows)
7. Operating Results (Cash Flows) Free cash flow post-shareholder return (adjusted) for FY2023 Q2 was cash in of ¥84.6 bil. Cumulative results in SHIFT 2023: cash in of 38.1 bil. Expect the cash flow positive for 3-year total in SHIFT 2023. (Unit: billions of yen) SHIFT 2023 SHIFT 2023 Highlight
Slide 10: 8. Operating Results (Financial Position)
8. Operating Results (Financial Position) Total assets increased to ¥10.7 trillions mainly due to yen’s depreciation. (approx.¥+630.0 bil. compared to the end of Mar. 2023) (Unit: billions of yen) As of Mar. As of Sep. Increase/ Highlights 31, 2023 30, 2023 Decrease Current assets 4,873.0 4,981.2
Slide 11: 9. Forecasts for FY2023
9. Forecasts for FY2023 (Profit for the Year (Attributable to Owners of the Parent)) Revised annual forecasts to ¥500.0 bil., based on the improvement in actual earnings capability, as result of SHIFT 2023 initiatives. Included loss buffer of ¥-50.0 bil., as reserves to maintain sound portfolio.
Slide 12: 10. Forecasts for FY2023 (by Segment)
10. Forecasts for FY2023 （Profit for the Year by Segment） Transportation & Construction Systems leads the performance strongly, by steadily capturing earnings opportunities. In addition, Infrastructure, Living Related & Real Estate, and Mineral Resources, Energy, Chemical & Electronics generate
Slide 13: 11. Shareholder Return
11. Shareholder Return Annual dividend forecast revised to ¥125 per share, increased by ¥5 from the initial plan of ¥120, based on the revision of annual forecasts to ¥500.0 bil. (interim dividend︓¥62.5 per share) Shareholder returns Shareholder Return Policy The annual dividend amount will be d
Slide 14: Appendix
Appendix 13 © 2023 Sumitomo Corporation
Slide 15: Contents
Contents 12. Assumptions and Sensitivity P. 15 Quarterly Trend for Profit for the Period Attributable to Owners of 13. the Parent by Segment (FY2022・FY2023) P. 16 14. Quarterly Trend for One-off Profits/Losses by Segment (FY2023・FY2022) P. 17-18 15. Performance Overview by Segment P. 19-38 16. Summa
Slide 16: 12. Assumptions and Sensitivity
12. Assumptions and Sensitivity Prices and Mineral Resources Equity FY2023 Revised FY2023 Sensitivity to Net Income Share of Production FY2022 Results FY2023 Results Forecasts (Nov. 2023) Forecasts (Annual base, Nov. 2023 Q1-2 Q1-4 Q1 Q2 Q1-2 Q3-4 Q1-4 (May 2023) announcements) ¥2.0 bil. Exchange ra
Slide 17: 13. Quarterly Trend for Profit by Segment
13. Quarterly Trend for Profit for the Period Attributable to Owners of the Parent by Segment (FY2022・FY2023) (Unit: billions of yen) FY2022 Results* FY2023 Results Cumulative Cumulative Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Results Results Metal Products 24.3 28.0 28.3 29.7 110.4 23.6 17.0 40.7 Transportation &
Slide 18: 14. One-off Profits/Losses by Segment (FY2023)
14. Quarterly Trend for One-off Profits/Losses by Segment (FY2023) (Unit: billions of yen) * Cumulative Q1 Q2 Q3 Q4 Results Main factors Metal Products 2.0 0.0 2.0 Q1 Profit on structural reform of tubular products business: approx.+2.0 Transportation & Q1 Profit from divestment of retail portfolio
Slide 19: 14. One-off Profits/Losses by Segment (FY2022)
14. Quarterly Trend for One-off Profits/Losses by Segment (FY2022) (Unit: billions of yen) * Cumulative Q1 Q2 Q3 Q4 Results Main factors Q2 Tax-effect on structural reform, etc.: approx.+4.0 Metal Products 0.0 4.0 0.0 7.0 10.0 Q4 Reversal of impairment loss due to market recovery of tubular products
Slide 20: 15. Performance Overview (Metal Products)
15. Performance Overview (Metal Products) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half FY23 Q3-4 FY23 FY23 (approx.¥10.0 bil. decrease from FY22 Q2) (Excl. One-off Profits/Losses) FY22 Q2 FY23 Q2 Increase/ Revised Revi
Slide 21: 15. Performance Overview (Metal Products)
15. 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.) Historical Data for Hot Rolled Steel Sheet Export Prices (Japan) Historical Data for Rig Count (U.S.) and Hot Rolled Coil Steel Futur
Slide 22: 15. Performance Overview (Transportation & Construction Systems)
15. Performance Overview (Transportation & Construction Systems) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half FY23 Q3-4 FY23 (approx.¥12.0 bil. increase from FY22 Q2) (Excl. One-off Profits/Losses) FY23 FY22 Q2 FY23 Q2
Slide 23: 15. Performance Overview (Transportation & Construction Systems)
15. Performance Overview (Transportation & Construction Systems) (Unit: billions of yen) FY22 Q2 FY23 Q2 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q2 Decrease Gross profit 120.0 160.3 +40.3 Total assets 2,005.0 2,271.3 +266.3 Lease, Ship & Aerospace Business 10.3 13.5 +3.2
Slide 24: Global Map of Mobility Business
15. Performance Overview (Transportation & Construction Systems) Global Map of Mobility Business Europe Toyota Ukraine (Ukraine) Summit Motors Ukraine (Ukraine) Engineering service Moto Pfohe EOOD (Bulgaria) Auto parts manufacture Summit Motors Slovakia (Slovakia) Summit Motors Ljubljana (Slovenia)
Slide 25: Construction & Mining Systems Business - Growth Strategy
15. Performance Overview (Transportation & Construction Systems) Construction & Mining Systems Business - Growth Strategy Leveraging Strengths 【Growth strategy】 【Utilizing strengths for better differentiation】 Geographic expansion Products diversification Aiming for further growth by enhancing group
Slide 26: 15. Performance Overview (Infrastructure)
15. Performance Overview (Infrastructure) Key Financial Indicators Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half (Unit: billions of yen) (approx.¥22.0 bil. increase from FY22 Q2) (Excl. One-off Profits/Losses) FY23 Q3-4 FY23 FY23 FY22 Q2 FY23 Q2 Increase/ Revised Revi
Slide 27: Global Development of the Renewable Energy Business
15. Performance Overview (Infrastructure) Global Development of the Renewable Energy Business Our net ownership generation capacity of renewable energy is 1.8GW as of end of Mar. 2023. We aim to achieve 5GW or more by 2030. As of end of Mar. 2023 Topic: Establishment of Renewable Energy Development
Slide 28: 15. Performance Overview (Media & Digital)
15. Performance Overview (Media & Digital) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half FY23 Q3-4 FY23 (Remained level with FY22 Q2) (Excl. One-off Profits/Losses) FY23 FY22 Q2 FY23 Q2 Increase/ Revised Revised Forecas
Slide 29: Initiatives for Telecommunications Business in Ethiopia
15. 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 30: 15. Performance Overview (Living Related & Real Estate)
15. Performance Overview (Living Related & Real Estate) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half FY23 Q3-4 FY23 (approx.¥18.0 bil. decrease from FY22 Q2) (Excl. One-off Profits/Losses) FY23 FY22 Q2 FY23 Q2 Increase
Slide 31: Principal Subsidiaries and Associated Companies
15. Performance Overview (Living Related & Real Estate) Principal Subsidiaries and Associated Companies Lifestyle Business Division Construction Materials & Real Estate Division (Unit: billions of yen) (Unit: billions of yen) Equity in Earnings Equity in Earnings Shares in Equity FY23 Shares in Equi
Slide 32: 15. Performance Overview (Living Related & Real Estate)
15. Performance Overview (Living Related & Real Estate) (Unit: billions of yen) FY22 Q2 FY23 Q2 Increase/ End of End of Increase/ Results* Results Decrease FY22* FY23 Q2 Decrease Gross profit 120.4 137.5 +17.1 Total assets 1,704.4 1,843.5 +139.0 Lifestyle Business Division 67.8 76.7 +8.9 Lifestyle B
Slide 33: Real Estate Business - Further Strengthening of Stable Earnings Base
15. Performance Overview (Living Related & Real Estate) Real Estate Business － Further Strengthening of Stable Earnings Base 1 Growth Strategy 2 Net income | Three-year Average Trend (Unit: billions of yen) Conduct portfolio management handling diverse areas and asset types Accumulate prime asse
Slide 34: 15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q2 Outlook for the Second Half FY23 Q3-4 FY23 (approx.¥86.0 bil. decrease from FY22 Q2) (Excl. One-off Profits/Losses) FY23 FY2
Slide 35: Principal Subsidiaries and Associated Companies
15. 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 FY23 Shares in Equity
Slide 36: 15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) (Unit: billions of yen) FY22 Q2 FY23 Q2 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q2 Decrease Gross profit 197.8 127.1 -70.8 Total assets 2,490.1 2,553.3 +63.2 Mineral Resources & Energy*1 122.8 5
Slide 37: Ambatovy Nickel Project
15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Ambatovy Nickel Project FY23 Q3-4 FY23 Quarterly Trend FY23 FY22 Q2 FY23 Q2 Increase/ Revised Revised Results Results Decrease Forecasts Forecasts Forecasts Sensitivity*2 (May 2023) (Nov. 2023) (Nov. 2023) 10 (A) (B) (B)-(A
Slide 38: Agribusiness as the Driver of Growth
15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Agribusiness as the Driver of Growth Overview Crop Protection Trade & Agricultural Input & Service Next-Generation Agriculture & Distribution Business Business Innovation Trade, processing, import and wholesale Provision of
Slide 39: Exposure of Upstream Mineral Resources & Energy Business
15. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Exposure* of Upstream Mineral Resources & Energy Business (Unit: billions of yen) As of Mar. 31, 2023 As of Sep. 30, 2023 Coking/Thermal Coal 90.0 90.0 Iron Ore 170.0 210.0 Copper 130.0 170.0 Nickel 90.0 100.0 Gas, LNG 50.0
Slide 40: 16. Summary of Consolidated Statements of Comprehensive Income
16. Summary of Consolidated Statements of Comprehensive Income (Unit: billions of yen) FY2022 FY2023 Increase/ Q2 Results Q2 Results Decrease Summary Revenues 3,354.4 3,343.8 -10.5 Gross profit Automotive sales & marketing: strong Gross profit 626.1 639.7 +13.6 Construction equipment-related bus
Slide 41: 17. Summary of Consolidated Statements of Cash Flows
17. Summary of Consolidated Statements of Cash Flows (Unit: billions of yen) FY2022 FY2023 Increase/ Q2 Results Q2 Results Decrease Summary Net cash provided by (used in) operating Net cash provided by (used in) operating activities 165.2 332.1 +166.8 activities Steady cash generation by core busi
Slide 42: 18. Summary of Consolidated Statements of Financial Position
18. Summary of Consolidated Statements of Financial Position (Unit: billions of yen) End of End of Increase/ FY2022 FY2023 Q2 Decrease Summary Assets 10,105.4 10,733.2 +627.8 Investments accounted for using the equity method Current assets 4,873.0 4,981.2 +108.2 Increase: impact of the change in t
Slide 43: 19. Historical Data (PL, CF)
19. Historical Data (PL, CF) (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues 3,317.4 3,762.2 4,010.8 3,997.0 4,827.3 5,339.2 5,299.8 4,645.1 5,495.0 6,817.9
Slide 44: 19. Historical Data (BS, Key Financial Indicators)
19. Historical Data (BS, Key Financial Indicators) (Unit: billions of yen) MEDIUM-TERM MANAGEMENT PLAN ▶ BBBO2014 BBBO2017 Medium – Term Management Plan 2020 SHIFT 2023 Fiscal Year ▶ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total assets 8,668.7 9,021.4 7,817.8 7,761.8 7,770.6 7,916.5 8,128.
Slide 45: 20. Shareholder Composition
20. Shareholder Composition 10.8% 10.3% 10.2% 10.2% 10.1% 9.3% 8.8% 8.9% 8.7% 8.8% 11.5% 11.5% 10.9% 11.7% 12.7% 12.5% 13.1% 12.2% 13.4% 12.7% 12.1% 12.9% 13.3% 13.5% 13.7% 15.7% 17.1% 17.6% 17.9% 19.5% 15.6% 18.9% 17.0% 16.9% 17.2% 18.7% 28.2% 26.3% 27.9% 24.3% 27.9% 28.1% 28.1% 26.5% 25.7% 24.2% 2