Marubeni Corporation · TSE:8002
Marubeni — FY2009 Earnings Presentation
36 slides from Marubeni's earnings presentation, May 10, 2010
Slide 1: Financial Results for FY2009 and New Mid-Term Management Plan
Financial Results for FY2009 and New Mid‐Term Management Plan May 10, 2010 Copyright 2010 Marubeni Corporation
Slide 2: Ⅰ. FY2009 Financial Results and SG2009 Review
Ⅰ. FY2009 Financial Results and SG2009 Review Business environment during the SG2009 period Reinforce Profit Base Strengthen Financial Standing SG2009 Review Copyright 2010 Marubeni Corporation 1
Slide 3: Business environment during the SG2009 period ①
1. Business environment during the SG2009 period ① Late 2008～ Financial Crisis and Global Recession Monetary Easing and Economic‐stimulus Measures in Many Countries With the gradual recovery of the global economy, the world is undergoing a paradigm shift such as the following. Changes in the Balance
Slide 4: Business environment during the SG2009 period ②
1. Business environment during the SG2009 period ② Sudden Alteration in the Economic Environment ‐Global Recession ‐Depressed Commodity and Stock Markets ‐Developed Appreciation of the Japanese Yen Downturn Deterioration in Assets Damaged Equity in Earnings Power Net income for FY2008 : JPY 111.2 bi
Slide 5: Business environment during the SG2009 period ③
1. Business environment during the SG2009 period ③ ≪Crude Oil / Copper price≫ ≪World stock market capitalization≫ Lehman shock 160 65 Lehman shock 10,000 （2008/9/15） （USD/ton） （USD/BBL） （trillion USD） 140 60 2010/5/5 8,000 2010/4/30 Copper：6,801 55 120 47.1 Crude Oil：82 50 100 6,000 45 80 2008/9/15
Slide 6: Ⅰ. FY2009 Financial Results and SG2009 Review
Ⅰ. FY2009 Financial Results and SG2009 Review Business environment during the SG2009 period Reinforce Profit Base Strengthen Financial Standing SG2009 Review Copyright 2010 Marubeni Corporation 5
Slide 7: 2. Net Income
2. Net Income (billions of yen) 180 Yearly 147.2 150 Initial Target 119.3 120 111.2 95.3 90 73.8 -15.9 bn yen ((-14%) 14%) 60 30 0 Initial Target Initial Target Initial Target Initial Target Initial Target (60.0) (100.0) (135.0) (165.0) (80.0) ‐30 FY2005 FY2006 FY2007 FY2008 FY2009 “V”PLAN “G”PLAN S
Slide 8: 3. Adjusted Operating Profit (AOP) and Core Earnings (CE)
3. Adjusted Operating Profit (AOP) and Core Earnings (CE) Erosion due to impairment loss on Daiei investment. (*) (billions of yen) *FY2008: ¥ -24.6bn, FY2009: ¥-10.3 bn Upper figure shows adjusted CE excluding Daiei loss. 300 Adjusted Operating Profit 269.6 250 Core Earnings 239.6 245.0 235.9 ‐90.6
Slide 9: 4. Earnings Structure
4. Earnings Structure Net Income Core Earnings (billions of yen) Calculated after putting back the erosion due to impairment (billions of yen) loss on Daiei investment in FY2008 and FY2009. Resources (left axis) Others (left axis) Resources (left axis) Resources Ratio (right axis) Others (left axis)
Slide 10: 5. Earnings Structure & Business Portfolio
5. Earnings Structure & Business Portfolio Calculated after putting back Core earnings the erosion due to impairment Net income Total assets loss on Daiei investment. Overseas * * * 9% -2% 11% Consumer Overseas 6% Overseas Products 7% Resources Resources 11% 23% 11% FY2009 31% Materials FY2009 7% FY
Slide 11: Ⅰ. FY2009 Financial Results and SG2009 Review
Ⅰ. FY2009 Financial Results and SG2009 Review Business environment during the SG2009 period Reinforce Profit Base Strengthen Financial Standing SG2009 Review Copyright 2010 Marubeni Corporation 10
Slide 12: 6. Equity and Net DE Ratio
6. Equity and Net DE Ratio (billions of yen) (times) Equity (left axis) Net interest‐bearing debt (left axis) Net DE ratio (right axis) 2,500 5.0 2,002.0 2,000 1,843.4 1,911.6 1,876.4 1,706.4 4.0 3.07times 1,500 2.64times 2.33times 3.0 2.25times 2 13times 2.13times 1,000 2.0 820.8 860.6 799.7 710.8
Slide 13: 7. Cash Flows
7. Cash Flows (billions of yen) 400 Net cash provided by investing activities Net cash provided by operating activities 300 245.4 ‐35.2 343.6 ‐387.1 200 235.3 ‐306.9 152.1 280.6 Fre 100 Frree C/F Free C/F ee C/F F Free 193 8 ‐193.8 ‐135.1 133.4 16.9 C/F 0 Free C/F ‐43.5 ‐60.4 ‐71.6 ‐100 OperatingCF
Slide 14: 8. Equity and Net Risk Assets
8. Equity and Net Risk Assets “V”PLAN “G”PLAN SG2009 （billions of yen） （billions of yen） 350 860.6 900 820.8 799.7 300 800 250 710.8 708.3 673.7 700 200 642.5 623.4 635.6 572.6 150 600 178.3 100 138 2 138.2 152.3 164.1 Risk buffer 500 50 （left axis） 400 0 Net Risk -50 Assets 300 -100 （right axis） -5
Slide 15: Ⅰ. FY2009 Financial Results and SG2009 Review
Ⅰ. FY2009 Financial Results and SG2009 Review Business environment during the SG2009 period Reinforce Profit Base Strengthen Financial Standing SG2009 Review Copyright 2010 Marubeni Corporation 14
Slide 16: 9. SG2009 Targets
9. SG2009 Targets Initial Target Revised Target Actual Results SG2009 SG2009 SG2009 Target for March 2010 Target for March 2010 March 2010 Consolidated Net Income 350.0 billion yen More than 190.0 billion yen 206.5 billion yen (2-year total) Consolidated Net D/E Ratio 2.0 to 2.5 times around 2.5 tim
Slide 17: 10. New Investments
10. New Investments SG2009 / FY2008-2009 FY2008 FY2009 SG2009 New Investment Results actual actual Result Fields in which the Group will Energy & Natual Resources accumulate assets by concentrating fund allocation from ¥ 250.0 bn ¥ 18.0 bn ¥ 268.0 bn the medium and long-term Overseas I(W)PP perspect
Slide 18: 11. Dividend
11. Dividend 9 Our dividend policy aims for consolidated payout ratio around 15%. 9 Yearly dividend for FY2009 is to be raised to 8.5 yen per share, reflecting the consolidated net income of 95.3 billion yen. 3.5 yen per share out of yearly 8.5 yen plan has already been disbursed as interim dividend
Slide 19: (reference) Net income by segment for FY2008 and FY2009
(reference) Net income by segment for FY2008 and FY2009 55.0 (billions of yen) 52.0 (Reference) Major Indexes 50.0 FY2008 FY2009 Sensitivity FY2008 actual actual① actual② ②-① (to Net Income on yearly basis) 45.0 FY2009 actual Exchange Rate Approx. JPY ±300 ～400 million 40.0 37.6 (JPY/USD) 103.5 93.6
Slide 20: Ⅱ. New Mid-Term Management Plan SG-12
Ⅱ. New Mid‐Term Management Plan SG‐12 Copyright 2010 Marubeni Corporation 19
Slide 21: Mid-Term Management Plan (FY2010-2012)
Mid-Term Management Plan (FY2010-2012) Challenge Sustainable Growth Management Philosophy Grounded in the spirit of “Fairness, Innovation and Harmony”, the Marubeni Group is proudly committed to social and economic progress and to safeguarding the global environment through just and principled corpo
Slide 22: 1. SG-12 Principles
1. SG-12 Principles SG-12 Principles The Marubeni Group, even in this turbulent world economy, will build strong earnings and a solid financial base to become a “Stronger Marubeni” who challenges sustainable growth beyond all our stakeholders’ expectations. SG-12 Key Measures • Top Management Led Hu
Slide 23: 2. Quantitative Targets
2. Quantitative Targets Quantitative Targets Consolidated Net Income FY2010 125 billion yen Consolidated Net Debt to Equity (D/E) Ratio Approx. 1.8x Risk Assets Less than Equity ROE Over 15% stably Assumptions for FY2010 Currency US$ LIBOR Yen TIBOR LME Copper Crude Oil (Brent) Exchange Rate 90Yen/U
Slide 24: 3. Top Management Led Human Resources Strategy
3. Top Management Led Human Resources Strategy Establishing an “HR Strategy Committee” Establish an “HR Strategy Committee” chaired by the CEO to strengthen the human resources of the entire Group to deal with the changing business environment and diversified business models. We will make “Experienc
Slide 25: 4. Priority Allocation of Management Resources (1)
4. Priority Allocation of Management Resources (1) New Investment Plan Emphasize the allocation of our management resources to fields with high potential for growth. Also, to build a financial and earnings base able to cope with a rapidly changing business environment, Marubeni will push the divesti
Slide 26: 4. Priority Allocation of Management Resources (2)
4. Priority Allocation of Management Resources (2) Priority Business Fields Outlook Priority Fields The stable supply of natural resources is still Natural essential for the sustainable growth of the • Metals and Mineral Resources Resources world economy. Furthermore, mid to long-term • Energy Resou
Slide 27: 5. Accelerate Business in Overseas Markets (1)
5. Accelerate Business in Overseas Markets (1) Priority Regions Marubeni will focus on the following 5 areas as “Priority Regions” to accelerate business from mid to long-term perspective. China North America ASEAN India South America Copyright 2010 Marubeni Corporation 25
Slide 28: 5. Accelerate Business in Overseas Markets (2)
5. Accelerate Business in Overseas Markets (2) Establish Business Strategy Committees To promote a cross-divisional approach in overseas markets, Marubeni established “Business Strategy Committees” for 6 regions with high growth potential. ASEAN China Business Strategy Committee Business Strategy Co
Slide 29: 6. Strengthen Financial Base and Upgrade Risk Management
6. Strengthen Financial Base and Upgrade Risk Management Strengthen our financial base through continuous balance sheet and cash flow management. Strengthen Financial Base • Maintain Risk Reserves* (Over +100 billion yen) • Improve Net D/E Ratio (Approx. 1.8x) • Maximize Cash Flow *Risk Reserves = E
Slide 30: 7. Dividend Policy
7. Dividend Policy By expanding internal reserves and utilizing them in new investments, Marubeni expects to maximize its enterprise value and competitiveness, and continue to provide stable dividends to our shareholders. The dividend to net income ratio for FY2010 will be around 15%, continuing the
Slide 31: Net Income by Operating Segment (New Organization)
(reference) Net Income by Operating Segment (New Organization: FY2009, FY2010 pros.) 55.0 (billions of yen) (Reference) Major Indexes 50.0 FY2009 FY2010 Sensitivity FY2009 result (reorganized) actual assumptions ②-① (to Net Income on yearly basis) 45.0 ① ② FY2010 prospect Exchange Rate Approx. JPY ±
Slide 32: (reference) Major Projects Natural Resources
(reference) Major Projects Natural Resources Acquisition of Copper Interest in Chile Increase in Ownership of Resource Pacific, (FY2008) Australia （FY2008） • Marubeni agreed with Antofagasta plc, one of the • Marubeni increased its shareholding in Resource world leading copper producers, to acquire
Slide 33: (reference) Major Projects Overseas I(W)PP
(reference) Major Projects Overseas I(W)PP ≪Development≫ • Marubeni participated in 2 development projects and purchased 3 assets in two years of FY2008‐FY2009. (FY2009) In the meantime, the Company sold a part of power z Participation in Shuweihat S2 Power and Water generation assets. Production (U
Slide 34: (reference) Major Projects Water Business
(reference) Major Projects Water Business 【Water Business】 • Marubeni has been working on the water business for 14 years. Now operating 5 projects in 4 countries (Chile, Mexico, Peru, China), with two new projects in Peru and China started in FY2009. • Marubeni will expand its business in this fiel
Slide 35: (reference) Major Projects Grain Business
(reference) Major Projects Grain Business 【Grain Trading】 Expansion of Inland Consolidation Network, • Marubeni is a top grain importer among Japanese trading Columbia Grain International Inc., USA (FY2008) houses with 20% of market share. In addition, it is expanding its trade volume in off-shore g
Slide 36: Disclaimer Regarding Forward-looking Statements
Copyright 2010 Marubeni Corporation Disclaimer Regarding Forward-looking Statements This material contains forward-looking statements (including figures) concerning corporate strategies, objectives, and forecasts of Marubeni Corporation and its group companies, based on current assumptions made by t