Slide 1: Financial Results for the First Half Ended September 30, 2023 [IFRS]
November 30, 2023 Correction A double underlined item is corrected (Page 22) Financial Results for the First Half Ended September 30, 2023 [IFRS] Progress of Medium-Term Management Plan 2023 - Start of the Next Decade - October 31, 2023 Sojitz Corporation Copyright Copyright © © Sojitz Sojitz Corpor
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. Progress of Medium-Term Management Plan 2023 - Start of the Next Decade - 2. Financial Results for the First Half Ended September 30, 2023 and Full Year Forecast of Fiscal Year Ending March 31, 2024 [IFRS] 3. Segment Information 4. Appendix Copyright © Sojitz Corporation 2023 3
Slide 4: Progress of Medium-Term Management Plan 2023 - Start of the Next Decade -
INDEX｜1 Progress of Medium-Term Management Plan 2023 - Start of the Next Decade -
Slide 5: FY23 H1 Summary
INDEX ｜1 FY23 H1 Summary ⚫ Profit for the period of ¥47.9 billion in FY2023 H1, representing progress of 50% toward full-year forecast of ¥95.0 billion ⚫ Generation of profits accompanied by cash with solid core operating cash flow ⚫ No change to full-year forecast, despite revisions to segment fore
Slide 6: Investment for Growth Strategy and Focus Areas
INDEX｜1 Investment for Growth Strategy and Focus Areas ⚫ Progress in line with initial forecast toward target of ¥500.0 bn for investments over three-year period of MTP2023, total of ¥100.0 billion in non-financial and other investments conducted in FY2023 H1 ⚫ Timely and appropriate assessment of r
Slide 7: Investment Progress MTP2017, MTP2020, MTP2023
INDEX｜1 Investment Progress MTP2017, MTP2020, MTP2023 Total three-year earnings contributions from investments under respective MTP Return on Investment MTP2017 MTP2020 MTP2023 ⚫ Aggregate ⚫ Aggregate investments ¥315.0bn investments ¥260.0bn ⚫ Investment plan ¥500.0bn (including non-financial and o
Slide 8: Example of Investment for Growth Strategy and Focus areas
INDEX｜1 Example of Investment for Growth Strategy and Focus areas Growth Market to be Approached through Market-Oriented Retail Business Value Chain in Vietnam Logis 2023 tics Logis Enhancement of Retail tics four-temperature 2015 2016 四温度帯に対応した controlled storage and Commencement of Entry into four
Slide 9: Shareholder Returns Policy
Index｜ 1 Shareholder Returns Policy ⚫ Targeting a consolidated payout ratio of approx. 30% and paying stable, continuous dividends while enhancing shareholder value through the accumulation and effective use of retained earnings ⚫ We conducted the acquisition and cancellation of treasury stock with
Slide 10: Stock Price, PBR Trend, and Credit Ratings
Index｜ 1 Stock Price, PBR Trend, and Credit Ratings ⚫ Improvement in ratings from S&P and JCR in FY2023 in reflection of ⚫ Sojitz stock price greatly outperforming TOPIX Sojitz’s ability to maintain financial health and increase earnings level Total Equity NET DER （22/9/30） （23/9/29） 自己資本（億円） (BN JP
Slide 11: Financial Results for the First Half Ended September 30, 2023 and Full Year Forecast
INDEX｜2 Financial Results for the First Half Ended September 30, 2023 and Full Year Forecast of Fiscal Year Ending March 31, 2024 [IFRS] Note: Effective April 1, 2023, Sojitz Group reorganized several segments and changed its reporting figures for FY2022 H1.
Slide 12: Summary of Profit or Loss
INDEX ｜2 Summary of Profit or Loss FY23 FY22 H1 FY23 H1 Q1 Q2 Difference Main Factors Achieved (BN JPY） Forecast Metals, Mineral Resources & Recycling （104.6） Revenue 1,273.3 1,187.3 556.0 631.3 (86.0) Chemicals (53.0) Retail & Consumer service +52.9 - - Metals, Mineral Resources & Recycling （31.8）
Slide 13: Summary of Balance Sheet -1.
INDEX ｜2 Summary of Balance Sheet -1. Mar. 31, Sep. 30, Difference Main Factors （BN JPY） 2023 2023 Assets(current/non-current) 2,660.8 2,774.7 +113.9 Trade and other receivables ⚫ Decreased due to aircraft-related transactions Cash and cash equivalents 247.3 226.2 (21.1) Goodwill ⚫ Increased due to
Slide 14: Summary of Balance Sheet -2.
INDEX ｜2 Summary of Balance Sheet -2. Mar. 31, Sep. 30, FY23 FY23 Difference 2023 2023 Initial Forecast Revised Forecast （BN JPY） Total Assets 2,660.8 2,774.7 +113.9 2,750.0 2,800.0 Total Equity 837.7 888.5 +50.8 870.0 900.0 Equity Ratio 31.5% 32.0% +0.5% 31.6% 32.1% Gross interest-bearing debt 883.
Slide 15: Summary of Cash Flow
INDEX ｜2 Summary of Cash Flow FY22 H1 FY23 H1 Difference Main Factors （BN JPY） CF from operating activities 82.2 85.2 +3.0 CF from operating activities ⚫ Inflows from business earnings ⚫ Dividends received CF from investing activities (44.2) 46.2 +90.4 Dividends received from Equity-method associate
Slide 16: Summary of Gross Profit by segment
INDEX ｜2 Summary of Gross Profit by segment (BN JPY) 182.2 Achieved FY23 FY23 FY22 H1 FY23 H1 Difference Initial Forecast Revised Forecast vs. revised （BN JPY） forecast 28.3 157.4 Automotive 28.3 30.5 +2.2 60.0 57.0 54% 8.5 11.9 30.5 Aerospace & Transportaion Project 8.5 8.6 +0.1 20.0 20.0 43% 8.6 I
Slide 17: Summary of Profit by segment
INDEX ｜2 Summary of Profit by segment (BN JPY) 78.9 FY22 H1 FY23 H1 Difference Main Factors 4.5 2.4 Decreased due to withdrawal from distributorship Automotive 4.5 2.7 (1.8) businesses in Thailand 9.7 Aerospace & Transportaion Project 2.4 1.5 (0.9) Decreased due to lower aircraft-related transaction
Slide 18: FY23 Forecast Profit for the Year by Segment
INDEX ｜2 FY23 Forecast Profit for the Year by Segment Achieved FY23 FY23 FY23 H1 Revised Amount vs. revised Progress Overview Initial Forecast Revised Forecast （BN JPY） forecast Profit for the period/year 47.9 95.0 95.0 - 50% Downward revision based on lower performance in Automotive 2.7 7.0 5.0 (2.
Slide 19: Cash Flow Management
INDEX ｜2 Cash Flow Management ⚫ New investments and asset replacements are in line with initial plan ⚫ Maintain positive six-year aggregate core cash flow MTP2020 MTP2023 3-Year Target Aggregate 3-Year Target Aggregate FY21 + FY22 FY23 H1 （Percentage FY23 Forecast Achieved） Achieved (FY18 - FY20) (F
Slide 20: Investments and Asset Replacement
INDEX ｜2 Investments and Asset Replacement Total Investments ¥100.0bn Infrastructure ● Energy conservation business in Australia and U.S. & Healthcare ¥42.0bn ● Off-shore wind power generation in Taiwan etc. ●●Retail business in Asia (Vietnam and India) ● Fertilizer related business Growth market ×
Slide 21: Commodity Prices, Foreign Exchange, and Interest Rate
INDEX ｜2 Commodity Prices, Foreign Exchange, and Interest Rate FY22 Results FY23 Initial Assumptions FY23 Results Latest data (Apr. - Sep. Avg.) → FY23 H2 Assumption (Apr. - Sep. Avg.) （As of Oct. 25, 2023） US$230.0/t Coking coal *1 US$345/t US$254/t US$349/t → US$250/t (H2) US$160.0/t Thermal coal
Slide 22: Changes in business Portfolio (Resource and Non-Resource businesses)
INDEX ｜2 Changes in business Portfolio (Resource and Non-Resource businesses) ⚫ Reinforcement of reliable earnings foundations through investments focused on non-resource businesses (BN JPY) （％） Total (excluding one-time factors) Resource business 5.8 (0.2) 0.3 13.8 25.3 10.5 (0.4) 42.3 62.3 30.0 No
Slide 23: Establish Strong Business Base and Transformation
INDEX ｜2 Establish Strong Business Base and Transformation ⚫ Advancement of sophisticated strategies in focus areas based on growth strategies under MTP2023, improvement of earnings capacity and competitiveness of executed investments ⚫ Drastic transformation of earnings structure through exhaustive
Slide 24: Segment Information
INDEX｜3 Segment Information Note: Effective April 1, 2023, Sojitz Group reorganized several segments and changed its reporting figures for FY2022 H1.
Slide 25: Automotive
INDEX ｜3 Automotive Summary Vehicle Sales Main Factors of Difference Dealership Business FY22 Q2 FY23 Q2 Difference in Profit for the Period (BN JPY） （Unit） ⚫ Lower profit due to withdrawal from Thai distributorship business Gross profit 28.3 30.5 +2.2 Japan, Asia & Oceania Americas Europe ⚫ Sluggis
Slide 26: Automotive
INDEX ｜3 Automotive Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description (BN JPY) Sales of automobiles by Region Japan, Australia, the Phillipines, Pakistan -Japan and Asia Pacific 0.7 1.3 0.6 (0.1) 2.5 (0.2)
Slide 27: Aerospace & Transportation Project
INDEX ｜3 Aerospace & Transportation Project Summary Business Jet charter sales （Operations） FY22 Q2 FY23 Q2 Difference Main Factors of Difference in Profit for the Period 200 (BN JPY） ⚫ Decreased due to lower aircraft- related transactions Gross profit 8.5 8.6 +0.1 100 SG&A expenses (5.6) (6.5) (0.9
Slide 28: Aerospace & Transportation Project
INDEX ｜3 Aerospace & Transportation Project Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） Aircraft, Marine vessel asset Aircraft sales representative, Aircraf
Slide 29: Infrastructure & Healthcare
INDEX ｜3 Infrastructure & Healthcare Summary Net Power-Generation Capacity （MW） FY22 Q2 FY23 Q2 Difference Main Factors of Difference (BN JPY） in Profit for the Period 2,000 Fuel oil Gas Solar power Wind power Biomass Lower profit due to rebound from gains on partial sale of equity in telecommunicat
Slide 30: Infrastructure & Healthcare
INDEX ｜3 Infrastructure & Healthcare Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） Energy related, Natural gas-fired power plant business LNG project and inve
Slide 31: Metals, Mineral Resources & Recycling
INDEX ｜3 Metals, Mineral Resources & Recycling Summary Change in Coal Sales Volume （10,000 ton） Main Factors of Difference FY22 Q2 FY23 Q2 Difference (BN JPY） in Profit for the Period 1,000 Thermal Coal Coking Coal PCI Coal ⚫ Decreased due to decreases in coal prices Gross profit 54.6 22.8 (31.8) Pr
Slide 32: Metals, Mineral Resources & Recycling
INDEX ｜3 Metals, Mineral Resources & Recycling Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） Sojitz Development Pty. Ltd. 100% 19.4 9.6 7.9 7.3 44.2 4.8 3.7 －
Slide 33: Chemicals
INDEX ｜3 Chemicals Summary Sales Volume for Methanol Main Factors of Difference （10,000 ton） FY22 Q2 FY23 Q2 Difference 230 (BN JPY） in Profit for the Period 190 190 180 180 170 170 ⚫ Strong performance in non- consolidated trading businesses 110 100 Gross profit 32.9 29.8 (3.1) following efforts to
Slide 34: Chemicals
INDEX ｜3 Chemicals Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） Manufacture and sale of PT. Kaltim Methanol Industri 85% 1.5 2.2 1.3 0.9 5.9 1.4 1.5 － － 2.9
Slide 35: Consumer Industry & Agriculture Business
INDEX ｜3 Consumer Industry & Agriculture Business Summary Profit of Overseas Fertilizers Business ⚫Development of stable earnings foundations by leveraging strength of top-class market shares in Southeast Asia FY22 Q2 FY23 Q2 Difference Main Factors of Difference in Profit for the Period （BN JPY） (B
Slide 36: Consumer Industry & Agriculture Business
INDEX ｜3 Consumer Industry & Agriculture Business Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） fertilizer related business -Thai Central Chemical Public Manu
Slide 37: Retail & Consumer Service
INDEX ｜3 Retail & Consumer Service Summary Main Factors of Difference FY22 Q2 FY23 Q2 Difference (BN JPY） in Profit for the Period ⚫ Increased due to sales of a shopping mall and recovery in domestic retail Gross profit 21.8 27.5 +5.7 business and negative goodwill recorded in association with a new
Slide 38: Retail & Consumer Service
INDEX ｜3 Retail & Consumer Service Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Difference Business Description ownership Period （BN JPY） Manufacturing and distribution of Retail related business － (0.4) (0.1) 0.0 0
Slide 39: Topics: Operation at Rated Output at Australian Solar Power Generation Project
INDEX ｜3 Topics Infrastructure & Healthcare Division Operation at Rated Output at Australian Solar Power Generation Project Operation at rated output started* at Edenvale Solar Park, a joint solar power generation project in Queensland, Australia, that Sojitz and ENEOS commenced investment in 2021 t
Slide 40: Appendix
補足資料｜3 Index｜4 Appendix
Slide 41: PL Summary
Index｜3 PL Summary FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 (BN JPY) Net sales 4,046.6 4,105.3 4,006.6 3,745.5 4,209.1 ー ー ー ー ー (JGAAP) Revenue 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 2,479.8 Gross profit 198.2 197.7 180.7 200.7 232.4 241.0 220.5 188.1 271.3
Slide 42: PL Summary
Index｜3 PL Summary (BN JPY) （％） Profit for the year ROA 4.2 111.2 3.3 3.0 2.7 82.3 2.5 70.4 1.9 60.8 1.7 56.8 40.8 1.2 36.5 27.0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Medium-term Management Medium-term Management Plan2017 Medium-term Management Plan2020 Challenge for Growth Commitment to Growth Pl
Slide 43: Balance Sheets Summary
Index｜3 Balance Sheets Summary End of End of End of End of End of End of End of End of End of End of Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 (BN JPY) Current assets 1,321.8 1,323.5 1,146.4 1,229.8 1,376.3 1,267.7 1,217.5 1,195.4 1,394.2 1,4
Slide 44: Balance Sheets Summary
Index｜3 Balance Sheets Summary Net Interest-Bearing Debt Total Equity Net DER (BN JPY) （Times） 1.10 1.03 1.11 0.95 1.06 1.06 0.99 0.75 837.7 770.2 728.0 619.0 611.1 603.5 618.2 613.2 610.6 629.4 571.6 586.4 584.7 579.1 550.5 520.3 End of End of End of End of End of End of End of End of Mar. 2016 Mar
Slide 45: Financial Summary
Index｜3 Financial Summary End of End of End of End of End of End of End of End of End of End of Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 (BN JPY) Total assets 2,220.2 2,297.4 2,056.7 2,138.5 2,350.4 2,297.1 2,230.3 2,300.1 2,661.7 2,660.8 To
Slide 46: Cash Flow Summary
Index｜3 Cash Flow Summary End of End of End of End of End of End of End of End of End of End of Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 (BN JPY) Core CF ー ー 18.3 5.5 (56.7) 63.1 1.3 (8.0) 10.5 135.6 Free CF 22.5 25.3 66.0 (31.3) 12.4 54.3 4
Slide 47: Cash Flow Summary
Index｜3 Cash Flow Summary (BN JPY) CF from operating activities CF from investing activities FCF Core CF 200.8 171.6 135.6 99.9 98.8 96.5 85 66.0 63.1 65.1 54.3 49.3 40.5 18.3 29.2 5.5 12.4 10.5 0.9 1.3 4.8 (8.0) (31.3) (56.7) (33.9) (35.7) (35.7) (42.2) (32.2) (73.7) (86.4) (138.8) FY15 FY16 FY17 F
Slide 48: New way, New value
New way, New value