Slide 1: Financial Results for the First Quarter Ended June 30, 2022
Financial Results for the First Quarter Ended June 30, 2022 (Reference) August 2, 2022 Sojitz Corporation Copyright © Sojitz Corporation 2022 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 First 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 2022 3
Slide 4: Financial Results for the First Quarter and Full Year Forecast
1. Financial Results for the First Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2023 Copyright © Sojitz Corporation 2022 4
Slide 5: FY22 Q1 Summary
FY22 Q1 Summary ◼ Profit for the period was ￥45.2 bn due to higher coal prices and earnings contributions from non-resource businesses results in accomplishment of 53% against full-year forecast of ￥85.0 bn ◼ Strong core operating CF, generating profit with cash ◼ New investments totaling ¥150.0 bn
Slide 6: Summary of Profit or Loss
Summary of Profit or Loss FY22 Achieved FY21 Q1 FY22 Q1 Difference forecast Against Forecast (BN JPY) Revenue 492.8 618.5 ＋ 125.7 - - Gross profit 56.4 96.9 ＋ 40.5 300.0 32% SG & A expenses (41.8) (51.5) (9.7) (210.0) - Share of profit (loss) of investments accounted for 7.5 10.6 ＋ 3.1 35.0 30% usin
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) 50.0 ■ Automotive \2.0 bn (+\0.9 bn) ¥45.2 bn Increased due to higher sales volumes in overseas automotive operations 45.0 2.0 ■ Aerospace & Transportation Project \0.8 bn (+\0.7
Slide 8: FY22 Forecast Profit for the Year by Segment
FY22 Forecast Profit for the Year by Segment FY22 FY22 Q1 Progress Overview Forecast (BN JPY) ■ Automotive 2.0 6.0 ■ Automotive Performance generally as forecast, though business impacts ■ Aerospace & related to Russia and semiconductor shortages anticipated 0.8 4.5 Transportation Project ■ Aerospac
Slide 9: Summary of Balance Sheets
Summary of Balance Sheets Changes in Total Equity End of End of FY22 Mar. 2022 Jun. 2022 Difference Forecast (End of Mar. 2022 vs. (BN JPY) End of June. 2022, Breakdown) ⚫ Profit for the period ¥+45.2 bn ⚫ Dividends paid ¥(14.1) bn Total Assets 2,661.7 2,841.9 +180.2 +2,700.0 Total Equity 728.0 801.
Slide 10: Cash Flow Management
Cash Flow Management ◼ Maintain positive six-year aggregate core cash flow during MTP2023 MTP2023 FY21 FY22 Q1 3-Year Target (Aggregate) (FY21–FY23) Core operating ¥129.0 bn ¥61.0 bn Approx. ¥240.0 - ¥250.0 bn cash flow Asset Replacement ¥62.0 bn ¥5.0 bn Approx. ¥100.0 bn （Investment recovery） New i
Slide 11: Summary of FCF
Summary of FCF (BN JPY) Operating Cash Flow Investing Cash Flow FCF Core Cash Flow 150.0 100.0 85.0 49.3 65.1 50.0 40.5 38.1 29.7 4.8 16.7 1.3 0.0 10.5 (35.7) (8.0) (21.4) (50.0) (35.7) (73.7) (100.0) (150.0) (138.8) FY19 FY20 FY21 FY22 Q1 Copyright © Sojitz Corporation 2022 11
Slide 12: Investments and Asset Replacement
Investments and Asset Replacement Total Investments ¥22.0bn ◼ Office Building Development Project in the Philippines ◼ Primary healthcare businesses in Infrastructure & Asia and Oceania Healthcare ¥11.0bn ◼ Off-shore wind power business in Taiwan ◼ Railcar Leasing business in U.S. ◼ IPP Project in U
Slide 13: Major One-time Gain/Loss
Major One-time Gain/Loss FY21 Q1 FY22 Q1 ¥(0.1) ・ Partial sale of an Non-Resource ー ¥4.1bn bn overseas telecommunications tower business etc. Resource ー ー ¥0.1bn ー Total (After income tax expenses) ¥(0.1)bn ¥4.2bn Copyright © Sojitz Corporation 2022 13
Slide 14: Breakdown of Resource and Non-Resource Profit
Breakdown of Resource and Non-Resource Profit FY21 FY22 Difference FY19 FY20 FY21 Q1 Q1 (BN JPY) A. Profit for the year 16.9 45.2 +28.3 60.8 27.0 82.3 (B. Total one-time income movements) (0.1) 4.2 +4.3 1.5 (0.2) (13.1) A. – B. B. Profit for the period / year (Excluding one-time 17.0 41.0 +24.0 59.3
Slide 15: Commodity Prices, Foreign Exchange, and Interest Rate
Commodity Prices, Foreign Exchange, and Interest Rate Latest data FY21 Results FY22 Assumptions FY22 Results (as of July. 27, (Apr.-Jun. Avg.) (annual avg.) (Apr.-Jun. Avg.) 2022) US$280.0/t Coking coal *1 US$139.1/t H1:US$340.0/t US$448.0/t US$201.5/t H2:US$220.0/t Thermal coal *1 US$109.0/t US$160
Slide 16: 2. Dividends
2. Dividends Copyright © Sojitz Corporation 2022 16
Slide 17: Dividends Policy
Dividends Policy Basic Dividends Policy ◼ Sojitz recognizes that paying stable and continuous dividends is a management priority, together with enhancing shareholder value through the accumulation and effective use of retained earnings ◼ Our basic policy is to target a consolidated payout ratio of a
Slide 18: Stock Price & PBR Trend
Stock Price & PBR Trend TOPIX (pt) Sojitz stock price (Yen) 1.3 1.3 2,500 2,100 （as of the end of Jun. 2021) （as of the end of Jun. 2022) 1.25 Sojitz TOPIX Sojitz TOPIX 1.25 Stock price 1,675 1,943.6 Stock price 1,921 1,870.8 1.2 1.2 PBR 0.61 1.26 PBR 0.55 1.15 1.15 1.15 （as of the end of June. 2022
Slide 19: Supplemental Data I. 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 Q1. Copyright © Sojitz Corporation 2022 19
Slide 20: Automotive
Automotive FY22 Q1 Summary Vehicle Sales (BN JPY) Dealership Business Distributor Business Main Factors Behind Difference （unit） FY21 Q1 FY22 Q1 Difference （unit） 15,000 15,000 13,900 【 Profit for the period 】 Gross profit 10.0 13.7 3.7 Increased due to higher sales 11,100 volumes in overseas automo
Slide 21: Aerospace & Transportation Project
Aerospace & Transportation Project FY22 Q1 Summary Acquisition of All Shares of Business Jet Operation and Maintenance Companies Japcon and Okayama (BN JPY) Air Service FY21 Q1 FY22 Q1 Difference Main Factors Behind Difference 【 Profit for the period 】 Gross profit 2.7 4.2 1.5 Increased due to aircr
Slide 22: Infrastructure & Healthcare
Infrastructure & Healthcare FY22 Q1 Summary Infrastructure-related initiative (BN JPY) Smooth growth in telecommunication tower business in the Philippines Main Factors Behind Difference Expansion of telecommunications tower business FY21 Q1 FY22 Q1 Difference through collaboration with partners 【 P
Slide 23: Change in Net Power-Generation Capacity
Charge in Net Power-Generation Capacity （MW) Fuel oil Gas Solar power Wind power Biomass 8% 2,500 2,000 Contract Forms 1,500 92% 1,000 Long-term contract Spot contract 500 ※As of June 30, 2022 0 (CY) 2017 2018 2019 2020 2021 2022 2023 4% 10% Results and Forecast of Net Power-Generation Capacity (持分発
Slide 24: Metals, Mineral Resources & Recycling
Metals, Mineral Resources & Recycling FY22 Q1 Summary Change in Coal Sales Volume (BN JPY) (10,000 ton) Main Factors Behind Difference FY21 Q1 FY22 Q1 Difference 1,000 【 Profit for the period 】 Thermal Coal Coking Coal PCI Coal Gross profit 5.5 34.1 28.6 Increased due to higher selling prices in coa
Slide 25: Metals & Mineral Resources YoY Main Factors Behind Difference
Metals & Mineral Resources YoY Main Factors Behind Difference Impact of commodity prices (BN JPY） approx. +19.0 included 24.7 +18.4 (1.1) +0.4 +0.9 +0.1 Coal- Ferroalloys Industrial and non-ferrous minerals- Steel- Others related metals-related related related SDPL +18.8 Carbon Nickel (0.3) Metal On
Slide 26: Chemicals
Chemicals FY22 Q1 Summary Sales Volume for Methanol (BN JPY) FY21 Q1 FY22 Q1 Difference Main Factors Behind Difference (10,000 ton) 【 Profit for the period 】 Gross profit 13.1 16.2 3.1 Increased due to higher methanol 250 230 prices SG&A expenses (7.4) (8.1) (0.7) 190 180 190 190 200 170 Share of pr
Slide 27: Consumer Industry & Agriculture Business
Consumer Industry & Agriculture Business FY22 Q1 Summary Profit of overseas fertilizers business (BN JPY) ◼ Development of stable earnings foundations by leveraging strength Main Factors Behind Difference of top-class market shares in Thailand, the Philippines, and Vietnam FY21 Q1 FY22 Q1 Difference
Slide 28: Retail & Consumer Service
Retail & Consumer Service FY22 Q1 Summary Investment in Plant-Based Meat Company Tastable (BN JPY) ◼ Joint investment with Fuji Nihon Seito in Tastable, a company Main Factors Behind Difference FY21 Q1 FY22 Q1 Difference engaged in development, design, and marketing of processed products including p
Slide 29: Others
Others Major Subsidiaries and Associates Receipt of Order for Construction of Substations in Cambodia’s Capital (BN JPY) First yen-based ODA loan made by a Japanese general Equity trading company for substation power transformer Company name FY21 Q1 FY22 Q1 Difference Business Description constructi
Slide 30: Supplemental Data II. Summary of Financial Results
【Supplemental Data】 Ⅱ. Summary of Financial Results Copyright © Sojitz Corporation 2022 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) Q1 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 ー 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 2,100.8 618.5 Gross profit
Slide 32: Summary of Balance Sheets (Results)
Summary of Balance Sheets (Results) End of End of End of End of End of End of End of End of End of End of End of End of Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Jun. (BN JPY) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 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 End of End of End of End of End of End of End of End of End of End of End of Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Jun. (BN JPY) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 Core cash flow ー ー ー ー ー 5.5 (56.7) 63.1 1.3 (8.0) 10.5
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% 82.3 80.0 3.3% 70.0 3.0% 70.4 3.0% 2.7% 60.0 2.5% 60.8 56.8 50.0 1.9% 2.0% 1.7% 40.0 1.5% 40.8 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 (BN JPY) (Times) Net Interest-Bearing Debt Total Equity Net DER 900.0 1.5 800.0 770.2 728.0 700.0 611.1 603.5 629.6 618.2 613.2 619.0 586.4 610.6 600.0 571.6 1.1 550.5 584.7 579.1 1.0 550.9 1.1 520.3 1.1 1.0 1.0 500.0 1.1 1.0 1.1 400.0 300.0 0.5 200.0 100.0 0.0 0.0 End of E
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 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 5.5 0.0 1.3 (13.8) (8.0) (31.3) (50.0) (33.9) (32.2) (35.7) (35.7) (42.2) (56.7) (73.7) (100.0) (86.4)
Slide 37: Copyright © Sojitz Corporation 2022
Copyright © Sojitz Corporation 2022 37