Slide 1: Presentation Materials for Financial Results for the First Half Ended September 30, 2024
Presentation Materials for Financial Results for the First Half Ended September 30, 2024 Progress of Medium-Term Management Plan 2026 -Set for Next Stage- October 30, 2024 Sojitz Corporation Copyright Copyright © © Sojitz Sojitz Corporation Corporation 2023 2024
Slide 2: Index
Index 1. Progress of Medium-Term Management Plan 2026 -Set for Next Stage- 2. Financial Results for the First Half Ended September 30, 2024 and Full Year Forecast of Fiscal Year Ending March 31, 2025 3. Segment Information 4. Supplemental Information Copyright © Sojitz Corporation 2024 2
Slide 3: Progress of Medium-Term Management Plan 2026 -Set for Next Stage-
INDEX｜1 Progress of Medium-Term Management Plan 2026 -Set for Next Stage-
Slide 4: FY24 H1 Summary
INDEX ｜1 FY24 H1 Summary ⚫ Profit for the period of ￥44.3 billion in FY2024 H1, representing profit progress of 40% toward full-year forecast of ￥110.0 billion ⚫ Generation of profits accompanied by cash with solid core operating cash flow FY23 H1 FY24 H1 Difference FY24 Forecast （BN JPY） Profit for
Slide 5: MTP2026 - Investment Contributions
INDEX ｜1 MTP2026 - Investment Contributions ⚫ New investments in MTP2026 will be made according to “KATI” model and are targeted to create earnings as follows ⚫ Further improvements on the profitability of the investments made in MTP2020/2023 by continuing to enhance value-up capabilities Total 3-ye
Slide 6: Roadmap to the Next Stage
INDEX ｜1 Roadmap to the “Next Stage” Vision for 2030 Next Net Profit: ¥200.0 bn “Becoming a company that constantly cultivates business and human capital” ROE: 15% Stage Market Cap: ¥2 trillion Create our corporate value by meeting market needs and providing solutions to social issues Sojitz Group S
Slide 7: The Sojitz Growth Story (Development of Katamari) - Energy-saving services
INDEX ｜1 The Sojitz Growth Story (Development of Katamari*1) 1. Energy-saving service businesses Targets Initiatives - Steady growth of energy-saving service demand in conjunction with rising electricity demand Construction of robust operating foundations in relevant - Expanding business areas and c
Slide 8: The Sojitz Growth Story - Agricultural businesses in Southeast Asia
INDEX ｜1 The Sojitz Growth Story (Development of Katamari) 2. Agricultural businesses in Southeast Asia Expansion of earnings targeted by developing operations in all agricultural areas with an ongoing focus on core fertilizer production and sales businesses Southeast Asian Fertilizer AI-Powered Pro
Slide 9: Shareholder Returns Policy
INDEX ｜1 Shareholder Returns Policy ⚫ Announcement of share repurchases on September 27, 2024, to address drop to significantly lower than 1.0 times in PBR ⚫ Continuing focus on the stock price, aiming to keep PBR consistently above 1.0 times and improve PER to achieve a market capitalization of ¥2.
Slide 10: Financial Results for the First Half Ended September 30, 2024 and Full Year Forecast
INDEX｜2 Financial Results for the First Half Ended September 30, 2024 and Full Year Forecast of Fiscal Year Ending March 31, 2025
Slide 11: Summary of Profit or Loss
INDEX ｜2 Summary of Profit or Loss FY24 FY24 Achieved FY23 H1 FY24 H1 Q1 Q2 Difference Main Factors Initial Revised vs. Revised (BN JPY） Forecast Forecast Forecast Chemicals +17.9, Automotive +15.5, Revenue 1,187.3 1,235.2 623.8 611.4 +47.9 Energy Solutions & Healthcare +12.7 － － － Energy Solutions
Slide 12: Summary of Balance Sheet – 1.
INDEX ｜2 Summary of Balance Sheet – 1. Mar. 31, Sep. 30, Main Factors Difference （BN JPY） 2024 2024 Investments accounted for using the equity method Assets(current/non-current) 2,886.9 2,921.8 +34.9 and other investments ⚫ Share of profit (loss) of investments accounted for using the Cash and cash
Slide 13: Summary of Balance Sheet – 2.
INDEX ｜2 Summary of Balance Sheet – 2. Mar. 31, Sep. 30, FY24 Difference 2024 2024 Forecast （BN JPY） Total Assets 2,886.9 2,921.8 +34.9 3,100.0 Total Equity 924.1 959.6 +35.5 960.0 Shareholder Equity 724.9 752.4 +27.5 － Equity Ratio 32.0% 32.8% +0.8ppt 31.0% Gross interest-bearing debt 906.7 1,007.1
Slide 14: Summary of Cash Flow
INDEX ｜2 Summary of Cash Flow FY23 H1 FY24 H1 Difference Main Factors （BN JPY） CF from operating activities 85.2 (55.2) (140.4) CF from operating activities ⚫ The impact of a holiday on the last day of the previous fiscal year ⚫ Dividend received from equity-method associates CF from investing activ
Slide 15: Summary of Gross Profit by Segment
INDEX ｜2 Summary of Gross Profit by Segment (BN JPY) FY24 FY24 Achieved FY23 H1 FY24 H1 Difference Initial Revised vs. Revised （BN JPY） Forecast Forecast Forecast 165.6 Automotive 30.5 32.4 +1.9 75.0 69.0 47% 157.4 Aerospace, Transportation & 32.4 9.6 12.9 +3.3 25.0 25.0 52% Infrastructure 30.5 12.9
Slide 16: Summary of Profit by Segment
INDEX ｜2 Summary of Profit by Segment (BN JPY) 47.9 2.7 44.3 FY23 H1 FY24 H1 Difference Main Factors 2.5 0.1 （BN JPY） 5.9 Despite earnings contribution from the automobile sales business in 4.6 Automotive 2.7 0.1 (2.6) Panama, profit decreased due to a slump in the used car sales business in Austral
Slide 17: FY24 Forecast Profit for the Year by Segment
INDEX ｜2 FY24 Forecast Profit for the Year by Segment FY24 FY24 Achieved Revised FY24 H1 Initial Revised vs. Revised Outlook Amount （BN JPY） Forecast Forecast Forecast Downward revision to forecast considering sluggish performance in used Automotive 0.1 7.0 3.0 (4.0) 3% car sales business in Austral
Slide 18: Cash Flow Management
INDEX ｜2 Cash Flow Management ⚫ Allocating approx. 70% of the core operating cash flow over the three-year period to growth investments for reinforcing base of growth and human capital investments, and approx. 30% to shareholder returns under MTP2026 ⚫ Maintain positive core cash flow along with pos
Slide 19: Investments and Asset Replacement
INDEX ｜2 Investments and Asset Replacement Total Investments ¥38.0bn ● Railcar repair business in North America ● Railcar leasing business in North America Essential infrastructure ¥16.5bn ● Off-shore wind power generation in Taiwan ● Domestic solar power generation etc. ● Vietnamese SaaS company Fo
Slide 20: Commodity Prices, Foreign Exchange, and Interest Rate
INDEX ｜2 Commodity Prices, Foreign Exchange, and Interest Rate FY24 Assumptions FY23 Results FY24 Results Latest Data (Annual Avg.) (Apr. - Sep. Avg.) (Apr. - Sep. Avg.) （As of Oct. 24, 2024） ➡ FY24 H2 Assumptions US$230/t Coking coal *1 US$254/t US$226/t US$199/t ⇒US$200/t US$125/t Thermal coal *1
Slide 21: Segment Information
INDEX｜3 Segment Information Note: Effective April 1, 2024, Sojitz Group reorganized several segments and changed its reporting figures for FY2023.
Slide 22: Automotive
INDEX ｜3 Automotive Summary Vehicle Sales (Profit for the period) FY23 FY24 Difference Main Factors of Difference Dealership Business (BN JPY） H1 H1 in Profit for the Period （Unit） Japan and Asia Oceania North America ⚫ Slump in used car sales business in Latin America and the Caribbean Relations Eu
Slide 23: Automotive - Main Subsidiaries and Associates
INDEX ｜3 Automotive Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Country (BN JPY) (Cumulative differences in H1) Sales of Automobiles by Region Japan, the Philippines, Pakistan Japan and Asia (0.2) (0.3) (0.1) (0.8) (1.4)
Slide 24: Aerospace, Transportation & Infrastructure Project
INDEX ｜3 Aerospace, Transportation & Infrastructure Project Summary FY23 FY24 (Profit for the period) Difference (BN JPY） H1 H1 Main Factors of Difference in Profit for the Period ⚫ Profit increased due to the growth in Gross profit 9.6 12.9 +3.3 business jet operations and defense system-related bu
Slide 25: Aerospace, Transportation & Infrastructure Project - Subsidiaries and Associates
INDEX ｜3 Aerospace, Transportation & Infrastructure Project Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description （BN JPY） ownership differences in H1) Period Aircraft sales repres
Slide 26: Energy Solutions & Healthcare
INDEX ｜3 Energy Solutions & Healthcare Summary (Profit for the period) FY23 FY24 Difference Main Factors of Difference (BN JPY） H1 H1 in Profit for the Period ⚫ Relatively unchanged year-on-year Gross profit 13.3 16.7 +3.4 ⚫ Strong progress in energy-saving service businesses SG&A expenses (14.5) (1
Slide 27: Energy Solutions & Healthcare - Subsidiaries and Associates
INDEX ｜3 Energy Solutions & Healthcare Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description ownership Period （BN JPY） differences in H1) Energy-related and thermal power generatio
Slide 28: Metals, Mineral Resources & Recycling
INDEX ｜3 Metals, Mineral Resources & Recycling Summary Change in Coal Sales Volume (Profit for the period) FY23 FY24 （10,000 MT） Difference Main Factors of Difference (BN JPY） H1 H1 in Profit for the Period 1,000 Thermal Coal Coking Coal PCI Coal ⚫ Decreased due to decline of market Gross profit 22.
Slide 29: Metals, Mineral Resources & Recycling - Subsidiaries and Associates
INDEX ｜3 Metals, Mineral Resources & Recycling Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description （BN JPY） ownership Period differences in H1) Inves tment i n coa l mi nes i n S
Slide 30: Chemicals
INDEX ｜3 Chemicals Summary Sales Volume for Methanol FY23 FY24 (Profit for the period) Difference Main Factors of Difference （10,000 t） (BN JPY） H1 H1 in Profit for the Period ⚫ Increased earnings due to absence of Gross profit 29.8 33.1 +3.3 one-time losses recorded in FY23 H1 ⚫ Improvement of earn
Slide 31: Chemicals - Subsidiaries and Associates
INDEX ｜3 Chemicals Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description （BN JPY） ownership Period differences in H1) Ma nufa cture a nd s a l e of PT. Kaltim Methanol Industri 85%
Slide 32: Consumer Industry & Agriculture Business
INDEX ｜3 Consumer Industry & Agriculture Business Summary FY23 FY24 (Profit for the period) Difference (BN JPY） H1 H1 Main Factors of Difference in Profit for the Period ⚫ Increased earnings following sales Gross profit 17.6 19.3 +1.7 volume growth driven by higher rainfall in overseas fertilizer bu
Slide 33: Consumer Industry & Agriculture Business - Subsidiaries and Associates
INDEX ｜3 Consumer Industry & Agriculture Business Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description （BN JPY） ownership differences in H1) Period Fertilizer-related businesses -
Slide 34: Retail & Consumer Service
INDEX ｜3 Retail & Consumer Service Summary (Profit for the period) FY23 FY24 Difference Main Factors of Difference (BN JPY） H1 H1 in Profit for the Period ⚫ Strong performance in domestic retail Gross profit 27.5 29.8 +2.3 businesses ⚫ Increased earnings in retail businesses in Vietnam due to earnin
Slide 35: Retail & Consumer Service - Subsidiaries and Associates
INDEX ｜3 Retail & Consumer Service Main Subsidiaries and Associates (Excluding one-time factors) FY2023 FY2024 Difference Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total (Cumulative Business Description （BN JPY） ownership differences in H1) Period Wholesale of food products and consumer Retail
Slide 36: Topics: Sojitz Acquires Stake in Major Electrical Construction Company in the U.S.
INDEX ｜3 Topics Energy Solutions & Healthcare Division Sojitz Acquires Stake in Major Electrical Construction Company in the U.S. Sojitz has acquired 90% ownership of Freestate Electric, LLC (“Freeestate”). Freestate provides general electrical construction and maintenance services for a variety of
Slide 37: Supplemental Information
補足資料｜3 INDEX｜4 Supplemental Information
Slide 38: Changes in Business Portfolio (Resource and Non-Resource Businesses)
INDEX｜4 Changes in business Portfolio（Resource and Non-Resource Businesses） ⚫ Reinforcement of reliable earnings foundations through investments focused on non-resource businesses (BN JPY) Resource business Non-resource business 133.3 Percentage of total attributable to non-resource businesses Total
Slide 39: PL Summary
INDEX｜4 PL Summary FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (BN JPY) Net sales 4,105.3 4,006.6 3,745.5 4,209.1 ー ー ー ー ー ー (JGAAP) Revenue 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 2,414.6 Gross profit 197.7 180.7 200.7 232.4 241.0 220.5 188.1 271.3 337.6 326.0
Slide 40: PL Summary
INDEX｜4 PL Summary Profit for the year (BN JPY) ROA （％） 4.2 111.2 3.6 3.3 100.8 3.0 2.7 82.3 2.5 70.4 1.9 60.8 1.7 56.8 1.5 40.8 1.2 36.5 33.1 27.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Copyright © Sojitz Corporation 2024 40
Slide 41: Balance Sheets Summary
INDEX｜4 Balance Sheets Summary End of End of End of End of End of End of End of End of End of End of (BN JPY) Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024 Current assets 1,323.5 1,146.4 1,229.8 1,376.3 1,267.7 1,217.5 1,195.4 1,394.2 1,444.5 1,4
Slide 42: Balance Sheets Summary
INDEX｜4 Balance Sheets Summary (BN JPY) Net Interest-Bearing Debt Total Equity Net DER （Times） 1.14 1.10 1.11 1.03 0.95 1.06 0.99 1.06 0.75 0.75 924.1 837.7 770.2 728.0 697.3 629.6 619.0 611.1 603.5 618.2 613.2 610.6 629.4 571.6 586.4 584.7 579.1 550.9 550.5 520.3 End of End of End of End of End of
Slide 43: Financial Summary
INDEX｜4 Financial Summary End of End of End of End of End of End of End of End of End of End of Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024 (BN JPY) Total assets 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 2,886.9 To
Slide 44: Cash Flow Summary
INDEX｜4 Cash Flow Summary End of End of End of End of End of End of End of End of End of End of Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024 (BN JPY) Core CF ー 18.3 5.5 (56.7) 63.1 1.3 (8.0) 10.5 135.6 (62.8) Free CF 25.3 66.0 (31.3) 12.4 54.3 4
Slide 45: Cash Flow Summary
INDEX｜4 Cash Flow Summary (BN JPY) CF from operating activities CF from investing activities FCF Core CF 200.8 171.6 135.6 124.6 112.2 99.9 98.8 96.5 85.0 66.0 63.1 65.1 54.3 49.3 39.1 40.5 25.3 18.3 29.2 5.5 12.4 10.5 12.4 0.9 1.3 4.8 (8.0) (13.8) (31.3) (56.7) (33.9) (35.7) (35.7) (42.2) (32.2) (6
Slide 46: 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 47: New way, New value
New way, New value