Mitsubishi Corporation · TSE:8058

Mitsubishi — Mitsubishi Corp Ord — Q2 2024 Earnings Presentation

46 slides from Mitsubishi's earnings presentation, Nov 1, 2024

  1. Slide 1: FY2024 Q2 Earnings Presentation

    Mitsubishi Corporation FY2024 Q2 Earnings Presentation Six months ended September 30, 2024 November 1, 2024 Forward-Looking Statements - This release contains forward-looking statements regarding Mitsubishi Corporation’s (the “Company” or “Parent”) future plans, strategies, beliefs and performance t

  2. Slide 2: Executive Summary

    Executive Summary 1 Midterm Corporate Strategy 2024 Update 2 Segment Performance 3 Supplementary Information © Copyright 2024 Mitsubishi Corporation 1

  3. Slide 3: FY2024 Q2 Highlights

    Executive Summary FY2024 Q2 Highlights ● Consolidated net income for the six months ended September 30, 2024 was ¥618.1 billion. ● This represents 65% progress against full-year guidance, primarily driven by major gains on revaluation and sale of assets in H1. ● We are revising our FY2024 forecast b

  4. Slide 4: Value-Added Cyclical Growth Model: Progress to Date

    Value-Added Cyclical Growth Model: Progress to Date Reinforce: Execution of initiatives to reinforce earnings levels in existing projects Mineral Maintain and expand production Environmental Stabilize metallurgical coal operations Resources in existing LNG businesses Energy BHP Mitsubishi Alliance (

  5. Slide 5: Value-Added Cyclical Growth Model: Progress to Date (cont’d)

    Value-Added Cyclical Growth Model: Progress to Date (cont’d) Enhance: Execution of initiatives to maximize the profitability of investments in progress Collaboration with KDDI to enhance Smart-Life Efforts to complete construction Environmental Lawson’s corporate value Creation of LNG Canada Energy

  6. Slide 6: Midterm Corporate Strategy 2024 Update

     Summary Results for FY2024 Q2  Cash Flow Allocation Midterm Corporate  Summary Results by Segment 1 Strategy 2024 Update   Full-Year Forecast by Segment Progress of Investments  Growing Corporate Value via Value-Added Cyclical Growth Model  Progress of Quantitative Targets © Copyright 2024 M

  7. Slide 7: Summary Results for FY2024 Q2

    1 Summary Results for FY2024 Q2 (Six Months Ended September 30, 2024)  FY2024 Q2 YTD consolidated net income was ¥618.1 billion (65% progress against full-year guidance) primarily due to a revaluation gain on Lawson, gains from divestitures in the metallurgical coal business, and the depreciation o

  8. Slide 8: Cash Flow Allocation

    1 Cash Flow Allocation Midterm Corporate Strategy 2024 Six Months Ended Cumulative Progress 3-year CF Allocation: 2022 - 2024 Details September 30, 2024 as of September 30, 2024 Revised February 6, 2024 Underlying operating CF ¥527.3 billion Solid progress in each segment. ¥3.0 trillion [¥2,990.5 bi

  9. Slide 9: Summary Results by Segment

    1 Summary Results by Segment (¥ bn) YoY Segment Consolidated Net Income Details Change [＋] Dividend income from the LNG-related business. Revision of depreciation method 94.6 +4.8 in the Asia-Pacific LNG business. Environmental Energy [－] Decrease in market prices in the North American shale gas bus

  10. Slide 10: Full-Year Forecast by Segment

    1 Full-Year Forecast by Segment (¥ bn) Segment Consolidated Net Income Change Details [＋] Higher market prices in the LNG sales business. Dividend income from the LNG- 175.0 +24.0 Environmental Energy related business. Revision of depreciation method in the Asia-Pacific LNG business. 151.0 +16% [－]

  11. Slide 11: Progress of Investments

    1 Progress of Investments  Although progress varies depending on the investment area, we are steadily executing against the ¥3.0 trillion allocated for the current Midterm Corporate Strategy period. Investment Progress Major Investments: ■ Cumulative cash outflows completed / in progress Investment

  12. Slide 12: Growing Corporate Value via Value-Added Cyclical Growth Model

    1 Growing Corporate Value via Value-Added Cyclical Growth Model  We continue to make steady progress in strategically rebalancing our business portfolio and increasing capital efficiency. In addition, we are optimizing the capital structures of our investments with increasing flexibility. 1 Strateg

  13. Slide 13: Progress of Quantitative Targets

    1 Progress of Quantitative Targets Quantitative Targets of Midterm Corporate Strategy 2024 Net Income / CF Maintain / Improve Capital Efficiency Ensuring Financial Soundness FY2024 Consolidated ¥800.0 billion Maintain High Single-A Credit Rating net income Double-Digit ROE Post-Returns FCF > 0 Under

  14. Slide 14: Segment Performance

     Net Income by Segment  YTD Progress against FY2024 Guidance by Segment  Net Income Detail (One-Time Items) 2 Segment Performance  Net Income Detail (Capital Recycling Gains / Losses)  Major Subsidiaries and Affiliates  Income Statement Items by Segment  Balance Sheet Items by Segment  Major

  15. Slide 15: Net Income by Segment

    2 Net Income by Segment Six months ended Sep 30, 2023 Six months ended Sep 30, 2024 YoY Change of which Reference: of which Reference: of which Reference: Net income One-time Non-recurring Net income One-time Non-recurring Net income One-time Non-recurring (¥ bn) items* items* items* items* items* i

  16. Slide 16: Net Income by Segment (Quarterly)

    2 Net Income by Segment (Quarterly) Net income Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) FY2023 55.2 34.6 89.8 53.8 95.2 238.8 Environmental Energy FY2024 60.8 33.8 94.6 － － － FY2023 25.4 18.3 43

  17. Slide 17: YTD Progress against FY2024 Guidance by Segment

    2 YTD Progress against FY2024 Guidance by Segment Six months ended Sep 30, 2024 FY2024 Full-Year Guidance of which as of Net income One-time Progress Comments Nov 1 (¥ bn) items* Environmental Energy 94.6 5.8 175.0 54% － Materials Solution 36.9 － 70.0 53% － Mineral Resources 195.7 (13.8) 215.0 91% D

  18. Slide 18: Net Income Detail: One-Time Items

    2 Net Income Detail One-Time Items Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) Environmental Energy FY2023 Total － － － － － － FY2024 Total 5.8 － 5.8 － － － Revision of depreciation method in Asia-Pac

  19. Slide 19: Net Income Detail: One-Time Items (cont’d)

    2 Net Income Detail One-Time Items (cont’d) Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) Smart-Life Creation FY2023 Total － － － － － － FY2024 Total － － － － － － Power Solution FY2023 Total (2.9) (0.1)

  20. Slide 20: Net Income Detail: Capital Recycling Gains / Losses

    2 Net Income Detail Capital Recycling Gains / Losses Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) Environmental Energy FY2023 Total － － － － 18.5 18.5 Gains on liquidation of overseas business － － －

  21. Slide 21: Capital Recycling Gains / Losses (cont’d)

    2 Net Income Detail Capital Recycling Gains / Losses (cont’d) Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) Mobility FY2023 Total (2.6) 1.8 (0.8) 20.3 (0.9) 18.6 Gain related to sale of overseas busi

  22. Slide 22: Capital Recycling Gains / Losses (cont’d)

    2 Net Income Detail Capital Recycling Gains / Losses (cont’d) Three months Three months Six months Three months Three months Full-year ended Jun 30 ended Sep 30 ended Sep 30 ending Dec 31 ending Mar 31 (¥ bn) Power Solution FY2023 Total － 3.0 3.0 － 95.5 98.5 Gain on sale and revaluation of European

  23. Slide 23: Major Subsidiaries and Affiliates

    2 Major Subsidiaries and Affiliates Six months Profit (Loss) Subsidiary / Equity Company / Operation (Country) Description YoY Affiliate (% ) FY2023 FY2024 (¥ bn) Change Environmental Segment net income 89.8 94.6 4.8 Energy Equity in earnings of LNG business from － － － 50.3 55.7 5.4 subsidiaries and

  24. Slide 24: Major Subsidiaries and Affiliates (cont’d)

    2 Major Subsidiaries and Affiliates (cont’d) Six months Profit (Loss) Subsidiary / Equity Company / Operation (Country) Description YoY Affiliate (% ) FY2023 FY2024 (¥ bn) Change Mineral Resources Segment net income 134.1 195.7 61.6 Iron Ore Company Of Canada (Canada) Iron ore mining, processing, an

  25. Slide 25: Major Subsidiaries and Affiliates (cont’d)

    2 Major Subsidiaries and Affiliates (cont’d) Six months Profit (Loss) Subsidiary / Equity Company / Operation (Country) Description YoY Affiliate (% ) FY2023 FY2024 (¥ bn) Change Urban Development Segment net income 14.9 0.1 (14.8) & Infrastructure Diamond Realty Investments, Inc. (U.S.A.) Real esta

  26. Slide 26: Major Subsidiaries and Affiliates (cont’d)

    2 Major Subsidiaries and Affiliates (cont’d) Six months Profit (Loss) Subsidiary / Equity Company / Operation (Country) Description YoY Affiliate (% ) FY2023 FY2024 (¥ bn) Change Food Industry Segment net income 25.1 60.4 35.3 Origination and export of grains, sale of agricultural inputs, Agrex do B

  27. Slide 27: Major Subsidiaries and Affiliates (cont’d)

    2 Major Subsidiaries and Affiliates (cont’d) Six months Profit (Loss) Subsidiary / Equity Company / Operation (Country) Description YoY Affiliate (% ) FY2023 FY2024 (¥ bn) Change Smart-Life Creation 1 Segment net income 69.0 156.3 87.3 Hospital management solutions, medication and medical MC Healthc

  28. Slide 28: Performance of All Subsidiaries and Affiliates

    2 Major Subsidiaries and Affiliates (cont’d) Performance of All Subsidiaries and Affiliates 1 Attributable Profit and Loss (¥ bn) Number of Entities Six months ended as at Mar 31, 2024 as at Sep 30, 2024 YoY Change YoY Change Sep 30, 2023 Sep 30, 2024 Count Ratio Count Ratio Count Ratio Profitable e

  29. Slide 29: Income Statement Items by Segment

    2 Income Statement Items by Segment (Six months ended September 30) FY2023 Urban Environmental Materials Mineral Food Smart-Life Power Development & Mobility Other Total Energy Solution Resources Industry Creation Solution (¥ bn) Infrastructure Gross profit 51.8 115.5 183.6 72.8 97.7 151.7 402.0 75.

  30. Slide 30: Balance Sheet Items by Segment (Sep 30, 2024)

    2 Balance Sheet Items by Segment (as at September 30, 2024) Urban Environmental Materials Mineral Food Smart-Life Power Development & Mobility Other Total Energy Solution Resources Industry Creation Solution (¥ bn) Infrastructure Total assets 3,039.0 2,100.2 4,462.0 2,107.3 1,842.2 1,900.2 2,569.4 2

  31. Slide 31: Balance Sheet Items by Segment (Mar 31, 2024)

    2 Balance Sheet Items by Segment (as at March 31, 2024) Urban Environmental Materials Mineral Food Smart-Life Power Development & Mobility Other Total Energy Solution Resources Industry Creation Solution (¥ bn) Infrastructure Total assets 2,875.3 2,103.5 4,379.2 2,093.4 1,976.0 2,164.6 4,662.2 2,731

  32. Slide 32: Major Cash Flow Items

    2 Major Cash Flow Items (Six months ended September 30, 2024) Cash flows from investing activities Underlying operating Adjusted free cash flows Sales and New/Replacement cash flows Net Collection Investments (¥ bn) Environmental Energy 73.2 36.2 (44.9) (8.7) 64.5 Materials Solution 63.9 4.2 (17.3)

  33. Slide 33: Supplementary Information

    Supplementary  Balance Sheet Ratios and Metrics / Exchange Rates 3 Information  Assumptions and Sensitivities  Operational Data by Segment © Copyright 2024 Mitsubishi Corporation 32

  34. Slide 34: Balance Sheet Ratios and Metrics / Exchange Rates

    3 Balance Sheet Ratios and Metrics / Exchange Rates Year ended Year ending YoY March 31, 2024 March 31, 2025 Change ROE and ROA Actual Estimate ROE (Return On Equity)1 11.3% 10.4% (0.9%) ROA (Return On Assets)1 4.2% 4.1% (0.1%) Equity ratios as at Mar 31 as at Sep 30 Investment leverage ratio 2 13.5

  35. Slide 35: Assumptions and Sensitivities

    3 Assumptions and Sensitivities 1 1 FY2024 Forecast Revised Forecast Six months ended FY2024 Consolidated Variance (Announced on May 2) (Announced on Nov 1) Sep 30, 2024 Net Income Sensitivities Foreign Exchange 148.88 2 (JPY/USD) 143.00 +5.88 152.76 ¥5.0 billion (JPY/USD) (H2: 145.00) 3 Crude Oil (

  36. Slide 36: Environmental Energy Segment: Global Portfolio

    3 Environmental Energy Segment: Global​ Portfolio Supplementary Information LNG Canada Execution & Operation Phase AP Ventures LNG Canada Expansion (Hydrogen-related Venture Investments) Canada Shale Gas Development​ (Reinforce/Enhance) NextGen Sakhalin 2 Project​ Astomos Energy Corporation​ BEC1 Ca

  37. Slide 37: Environmental Energy Segment: LNG Projects

    3 Environmental Energy Segment: LNG Projects Supplementary Information Production Capacity (MTPA) Project Country Other Key Shareholders Total MC’s Share Brunei LNG Brunei 7.2 1.8 25% Brunei Gov. (50%), Shell (25%) Malaysia LNG I (SATU) Malaysia 8.4 0.4 5% PETRONAS (90%), Sarawak Gov. (5%) Malaysia

  38. Slide 38: Mineral Resources Segment: Global Portfolio

    Mineral Resources Segment: 3 Global Portfolio Supplementary Information Turnagain (Canada) PAK Lithium (Canada) ■ Metallurgical Coal ■ Copper ■ Iron Ore ■ Bauxite ■ Nickel ■ Lithium IOC (Iron Ore Company of Canada) (Canada) ○ Operating Asset ☆ Exploration, F/S, or Under Development Aurukun (Australi

  39. Slide 39: Mineral Resources Segment: Metallurgical Coal Operation

    Mineral Resources Segment: 3 Metallurgical Coal Operation Supplementary Information BMA Annual Production and Sales Volume1 (50% Equity Basis) (Mt) Apr-Jun Jul-Sep Oct-Dec Jan-Mar • BMA production in July to September 2024 increased by 20% to 4.5Mt on a year-over-year basis 40.0 (compared to 3.8Mt i

  40. Slide 40: Mineral Resources Segment: Copper Business

    Mineral Resources Segment: 3 Copper Business Supplementary Information Equity Share Production Volumes (kt) Jan-Mar Apr-Jun Jul-Sep Oct-Dec Note: Quarterly figures may not necessarily add up to total annual figures due to rounding. CY2021 CY2022 CY2023 CY2024 Total 218 Total 248 Total 325 127 Total

  41. Slide 41: Urban Development & Infrastructure: Global Real Estate Portfolio

    Urban Development & Infrastructure: 3 Global Real Estate and Urban Development Portfolio Supplementary Information Development North Multifamily, student housing, Development America industrial properties, data centers Vietnam Large-scale urban development projects, condominiums Future Investment Pl

  42. Slide 42: Mobility Segment: Mitsubishi Motors & Mitsubishi Fuso

    Mobility Segment: Global Automobile Business 3 Mitsubishi Motors & Mitsubishi Fuso Supplementary Information MMCP*3 MCBR Country/Region Distribution MMCR Automobile Distribution ① Overall Demand Finance Poland ② Vehicle sales of MC’s partner ① 235.8k units Russia car maker (share) ② MMC 0.9k units(0

  43. Slide 43: Mobility Segment: Isuzu Motors

    Mobility Segment: Global Automobile Business 3 Isuzu Motors Supplementary Information Isuzu vehicle sales LCV: Light Commercial Vehicle CV: Commercial Vehicle ① Overall Demand ② CV and LCV sales of MC’s partner ​car maker (share)​ IMI IMEX From Apr. 2024 to Sep. 2024 Production/ IPC Production/ Dist

  44. Slide 44: Food Industry Segment: Salmon Farming Business

    3 Food Industry Segment: Salmon Farming Business Supplementary Information Cermaq Norway Cermaq 39,891 Canada 6,684 Europe Russia North America Japan Relative Market Size Cermaq Sales Volume Other South (by region) Asia America Year: FY2024 Q2 YTD Fish Species: Atlantic Scale: MT (GWE basis*) Cermaq

  45. Slide 45: Power Solution Segment: Electric Power Business

    3 Power Solution Segment: Electric Power Business Supplementary Information Eneco (Netherlands) An integrated energy company Americas mainly active in the Netherlands, Belgium and Germany Japan Diamond Generating Mitsubishi Corporation Corporation (DGC USA) 3,030 Energy Solutions (MCES) Development

  46. Slide 46: © Copyright 2024 Mitsubishi Corporation

    © Copyright 2024 Mitsubishi Corporation

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