Sumitomo Corporation · TSE:8053
Sumitomo — Q3 FY2023 Earnings Presentation
38 slides from Sumitomo's earnings presentation, Feb 5, 2024
Slide 1: Quarterly Results for FY2023
Quarterly Results for FY2023 (Nine-month period ended December 31, 2023) February 5, 2024 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 Q1-3 Results
1. Summary of FY2023 Q1-3 Results ⚫ Profit for the period attributable to owners of the parent for Q1-3 totaled ¥404.1 bil. ⚫ Overall in line with FY2023 annual forecasts (announced in Nov. 2023), and left FY2023 forecasts, including loss buffer of ¥-50.0 bil., and annual dividend unchanged. ⚫ Carry
Slide 3: 2. Operating Results (Profit for the Period)
2. Operating Results (Profit for the Period (Attributable to Owners of the Parent)) ⚫ Profit for the period attributable to owners of the parent for Q1-3 totaled ¥404.1 bil. ⚫ Although ¥60.3 bil. decrease (-13%) compared to FY2022 Q1-3, non-mineral resources businesses remained strong. (Unit: billio
Slide 4: 3. Profit for the Period by Segment
3. Profit for the Period by Segment ⚫ Profit increased in the following segments compared to FY2022 Q1-3: Transportation & Construction Systems, Infrastructure, Media & Digital. Transportation Mineral Resources, Corporate Metal Media Living Related Energy, Chemical (Unit: billions of yen) & Construc
Slide 5: 4. Quarterly Trend for Profit for the Period
4. Quarterly Trend for Profit for the Period (excluding one-off profits/losses) ⚫ In FY2023 Q4, plan to recognize earnings from iron ore business in South Africa for Mineral resources and expect increase in delivery of properties in real estate business for non-mineral resources. For FY2023 annual f
Slide 6: 5. Operating Results (Cash Flows)
5. Operating Results (Cash Flows) ⚫ Free cash flow post-shareholder return (adjusted) for FY2023 Q1-3 was cash out of ¥48.6 bil. ⚫ Cumulative results in SHIFT 2023: cash out of ¥95.2 bil. Expect the cash flow positive for 3-year total in SHIFT 2023. (Unit: billions of yen) SHIFT 2023 SHIFT 2023 High
Slide 7: 6. Operating Results (Financial Position)
6. Operating Results (Financial Position) ⚫ Total assets increased to ¥10.7 trillions mainly due to yen’s depreciation. (approx.¥+610.0 bil. compared to the end of Mar. 2023) (Unit: billions of yen) As of Mar. As of Dec. Increase/ Highlights 31, 2023 31, 2023 Decrease Current assets 4,873.0 5,044.3
Slide 8: 7. Forecasts for FY2023 (Profit for the Year by Segment)
7. Forecasts for FY2023 (Profit for the Year by Segment) ⚫ Revised upward in Transportation & Construction Systems, Infrastructure, due to strong performance expected in Q4. Revised downward in Mineral Resources, Energy, Chemical & Electronics, taking into account Q1-3 results. (Unit: billions of ye
Slide 9: Appendix
Appendix 8 © 2024 Sumitomo Corporation
Slide 10: Contents
Contents 8. Assumptions and Sensitivity P. 10 Quarterly Trend for Profit for the Period Attributable to Owners of 9. P. 11 the Parent by Segment (FY2022・FY2023) Quarterly Breakdown of One-off Profits/Losses by Segment (FY2023・ 10. P. 12-13 FY2022) 11. Performance Overview by Segment P. 14-32 12. Sum
Slide 11: 8. Assumptions and Sensitivity
8. Assumptions and Sensitivity Prices and Mineral Resources Equity FY2022 Results FY2023 Results FY2023 FY2023 Share of Production Sensitivity to Net Income Revised Revised (Annual base, Feb. 2024 Q1-3 Q1-4 Q1 Q2 Q3 Q1-3 Forecasts Forecasts announcements) (Feb. 2024) (Nov. 2023) ¥2.0 bil. Exchange r
Slide 12: 9. Quarterly Trend for Profit by Segment (FY2022・FY2023)
9. 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 16.6 57.3 Transportatio
Slide 13: 10. Quarterly Breakdown of One-off Profits/Losses (FY2023)
10. Quarterly Breakdown of 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 0.0 2.0 Q1 Profit on structural reform of tubular products business: approx.+2.0 Q1 Profit from divestment of retail portfolio in tire sa
Slide 14: 10. Quarterly Breakdown of One-off Profits/Losses (FY2022)
10. Quarterly Breakdown of 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 produ
Slide 15: 11. Performance Overview (Metal Products)
11. Performance Overview (Metal Products) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 FY23 FY23 (approx.¥21.0 bil. decrease from FY22 Q1-3) (Excl. One-off Profits/Losses) FY22 Q1-3 FY23 Q1-3 Increase/ Revised Revised Steel s
Slide 16: 11. Performance Overview (Metal Products)
11. 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 17: 11. Performance Overview (Transportation & Construction Systems)
11. Performance Overview (Transportation & Construction Systems) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 FY23 FY23 (approx.¥15.0 bil. increase from FY22 Q1-3) (Excl. One-off Profits/Losses) FY22 Q1-3 FY23 Q1-3 Increase/
Slide 18: 11. Performance Overview (Transportation & Construction Systems)
11. Performance Overview (Transportation & Construction Systems) (Unit: billions of yen) FY22 Q1-3 FY23 Q1-3 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q3 Decrease Gross profit 190.0 250.7 +60.7 Total assets 2,005.0 2,282.1 +277.1 Lease, Ship & Aerospace Business 14.7 22.0
Slide 19: Global Map of Mobility Business
11. 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 20: Construction & Mining Systems Business - Growth Strategy
11. 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 21: 11. Performance Overview (Infrastructure)
11. Performance Overview (Infrastructure) Key Financial Indicators Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 (Unit: billions of yen) (approx.¥36.0 bil. increase from FY22 Q1-3) (Excl. One-off Profits/Losses) FY23 FY23 FY22 Q1-3 FY23 Q1-3 Increase/ Revised Revised Domesti
Slide 22: Global Development of the Renewable Energy Business
11. Performance Overview (Infrastructure) Global Development of the Renewable Energy Business Our net ownership generation capacity of renewable energy is 2.1 GW as of end of Sep. 2023. We aim to achieve 5 GW or more by 2030. As of end of Sep. 2023 Topic: Appointed as Operators of Offshore Wind Proj
Slide 23: 11. Performance Overview (Media & Digital)
11. Performance Overview (Media & Digital) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 FY23 FY23 (approx.¥3.0 bil. decrease from FY22 Q1-3) (Excl. One-off Profits/Losses) FY22 Q1-3 FY23 Q1-3 Increase/ Revised Revised Results
Slide 24: Initiatives for Telecommunications Business in Ethiopia
11. 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 25: 11. Performance Overview (Living Related & Real Estate)
11. Performance Overview (Living Related & Real Estate) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 FY23 FY23 (approx.¥16.0 bil. decrease from FY22 Q1-3) (Excl. One-off Profits/Losses) FY22 Q1-3 FY23 Q1-3 Increase/ Revised R
Slide 26: Principal Subsidiaries and Associated Companies
11. 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 FY23 Shares in
Slide 27: 11. Performance Overview (Living Related & Real Estate)
11. Performance Overview (Living Related & Real Estate) (Unit: billions of yen) FY22 Q1-3 FY23 Q1-3 Increase/ End of End of Increase/ Results* Results Decrease FY22* FY23 Q3 Decrease Gross profit 176.1 203.0 +26.9 Total assets 1,704.4 1,846.0 +141.6 Lifestyle Business Division 104.4 119.5 +15.1 Life
Slide 28: Real Estate Business - Further Strengthening of Stable Earnings Base
11. 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 29: 11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Key Financial Indicators (Unit: billions of yen) Profit (Excl. One-off Profits/Losses) for FY23 Q1-3 Outlook for the Q4 FY23 FY23 (approx.¥109.0 bil. decrease from FY22 Q1-3) (Excl. One-off Profits/Losses) FY22 Q1-3 FY23 Q1
Slide 30: Principal Subsidiaries and Associated Companies
11. 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 FY23 Shares in Eq
Slide 31: 11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) (Unit: billions of yen) FY22 Q1-3 FY23 Q1-3 Increase/ End of End of Increase/ Results Results Decrease FY22 FY23 Q3 Decrease Gross profit 269.1 195.2 -73.9 Total assets 2,490.1 2,567.6 +77.5 Mineral Resources & Energy*1 156
Slide 32: Ambatovy Nickel Project
11. Performance Overview (Mineral Resources, Energy, Chemical & Electronics) Ambatovy Nickel Project FY23 FY23 Quarterly Trend Price Chart FY22 Q1-3 FY23 Q1-3 Increase/ Revised Revised Results Results Decrease Forecasts Forecasts Sensitivity*2 regular total 18 40 plant 10 shutdown (Feb. 2024) (Nov.
Slide 33: Agribusiness as the Driver of Growth
11. 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 34: 12. Summary of Consolidated Statements of Comprehensive Income
12. Summary of Consolidated Statements of Comprehensive Income (Unit: billions of yen) FY2022 FY2023 Increase/ Q1-3 Results Q1-3 Results Decrease Summary Revenues 5,070.1 5,064.3 -5.8 Gross profit Gross profit 928.8 974.4 +45.6 ⚫ Automotive sales & marketing: strong Selling, general and administrati
Slide 35: 13. Summary of Consolidated Statements of Cash Flows
13. Summary of Consolidated Statements of Cash Flows (Unit: billions of yen) FY2022 FY2023 Increase/ Q1-3 Results Q1-3 Results Decrease Summary Net cash provided by (used in) operating Net cash provided by (used in) operating activities 118.2 378.7 +260.5 activities ⚫ Steady cash generation by core
Slide 36: 14. Summary of Consolidated Statements of Financial Position
14. Summary of Consolidated Statements of Financial Position (Unit: billions of yen) End of End of Increase/ FY2022 FY2023 Q3 Decrease Summary Assets 10,105.4 10,719.2 +613.9 Investments accounted for using the equity method Current assets 4,873.0 5,044.3 +171.4 ⚫ Increase: impact of the change in t
Slide 37: 15. Historical Data (PL, CF)
15. 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 38: 15. Historical Data (BS, Key Financial Indicators)
15. 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.