Sojitz Corp. · TSE:2768

Sojitz — Q3 2021 Earnings Presentation

38 slides from Sojitz's earnings presentation, Feb 2, 2022

  1. Slide 1: Financial Results for the Third Quarter Ended December 31, 2021

    Financial Results for the Third Quarter Ended December 31, 2021 (Reference) February 2, 2022 Sojitz Corporation Copyright © Sojitz Corporation 2022 1

  2. 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

  3. Slide 3: Index

    Index 1. Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2022 2. Dividends 【Supplemental Data】 Ⅰ. Segment Information Ⅱ. Summary of Financial Results Copyright © Sojitz Corporation 2022 3

  4. Slide 4: Financial Results for the Third Quarter and Full Year Forecast

    1. Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2022 Copyright © Sojitz Corporation 2022 4

  5. Slide 5: FY2021 Q3 Summary

    FY2021 Q3 Summary ◼ Upward revision to full-year forecast of profit for the year to ¥80.0 based on strong progress of automotive, material-related businesses such as steel, and strong coal prices ◼ Strong core operating CF, generating profit with cash ◼ Upward revision of year-end dividend of ¥58 an

  6. Slide 6: Performance Forecast Revisions

    Performance Forecast Revisions Upward revision to full-year forecast for profit for the year from ¥70.0 to ¥80.0 based on nine-month progress ■Automotive Upward revision based on steady progress seen in overseas automotive businesses leading up to Q3 ■Metals, Mineral Resources & Recycling Upward rev

  7. Slide 7: Summary of Profit or Loss

    Summary of Profit or Loss Achieved FY21 FY21 FY20 FY21 Against Revised Difference Revised Forecast Revised Forecast Q3 Q3 Forecast (Nov. 2, 2021) (Feb. 2, 2022) (BN JPY) (vs. Feb. 2, 2022) Revenue 1,159.7 1,548.6 ＋ 388.9 - - - Gross profit 132.5 190.7 ＋ 58.2 240.0 260.0 73% SG & A expenses (119.5) (

  8. Slide 8: Profit for the Period by Segment

    Summary of Profit or Loss Profit for the Period by Segment Profit for the period Main Factors Behind Difference (BN JPY) (YoY change) 65.0 ¥62.0bn ■ Automotive \5.9 bn (+\6.3 bn) 60.0 5.9 Increased due to higher sales volumes in overseas automotive operations 55.0 2.3 ■ Aerospace & Transportation Pr

  9. Slide 9: FY21 Forecast Profit for the Year by Segment

    FY21 Forecast Profit for the Year by Segment FY21 FY21 FY21 Revised Revised Q3 Progress Overview Forecast Forecast (BN JPY) (Nov.2, 2021) (Feb.2, 2022) ■ Automotive ■ Automotive 5.9 5.5 6.5 Upward revision based on steady progress seen in overseas automotive businesses leading up to Q3 ■ Aerospace &

  10. Slide 10: Summary of Balance Sheets

    Summary of Balance Sheets FY21 FY21 End of End of Revised Revised Changes in Total Equity Difference Mar. 2021 Dec. 2021 Forecast Forecast (End of Mar. 2021 vs. (BN JPY) (Nov. 2, 2021) (Feb. 2, 2022) End of Dec. 2021, Breakdown) Total Assets 2,300.1 2,509.2 +209.1 2,500.0 2,550.0 + ¥62.0bn ⚫ Profit

  11. Slide 11: Cash Flow Management

    Cash Flow Management Maintain positive six-year aggregate core cash flow during MTP2023 MTP 2020 MTP2023 3-Year (Aggregate) FY21 Q3 3-Year Target (Aggregate) (FY18–FY20) (FY21–FY23) Core operating ¥219.0 bn ¥81.0 bn Approx. ¥240.0 - ¥250.0 bn cash flow Asset Replacement ¥170.0 bn ¥26.5 bn Approx. ¥1

  12. Slide 12: Summary of FCF

    Summary of FCF Operating Cash Flow Investing Cash Flow FCF Core Cash Flow (BN JPY) 150.0 96.5 100.0 85.0 63.1 49.3 50.0 40.5 42.2 54.3 4.8 0.0 1.3 (8.0) (8.9) (50.0) (35.7) (35.7) (42.2) (62.0) (100.0) (104.2) (150.0) FY18 FY19 FY20 FY21 Q3 Copyright © Sojitz Corporation 2022 12

  13. Slide 13: Investments and Asset Replacement

    Investments and Asset Replacement FY2021 Q3 Total Investments ¥85.0bn ◼ Energy conservation business in the U.S. Infrastructure & ◼ Gas-Fired Power Generation Project in Indonesia Healthcare ¥51.5bn ◼ ◼ IWPP and Desalination Project in Middle East Renewable energy businesses in Australia ◼ Electrici

  14. Slide 14: Major One-time Gain/Loss

    Major One-time Gain/Loss FY20 Q3 FY21 Q3 • Gain on sales of • Gain on sales of surface-mounting domestic shopping machines related mall business ¥4.1 ¥0.0 Non-Resource bn • Gain on sales of bn • Loss on sales of domestic real surface-mounting estate machines related business etc. etc. • Loss on rest

  15. Slide 15: Breakdown of Resource and Non-Resource Profit

    Breakdown of Resource and Non-Resource Profit FY20 FY21 FY20 Difference FY18 FY19 Q3 Q3 (BN JPY) A. Profit for the period / year 16.7 62.0 +45.3 70.4 60.8 27.0 B. (Total one-time 4.9 (2.7) (7.6) 1.9 1.5 (0.2) income movements) A.- B. Profit for the period / year (Excluding one-time 11.8 64.7 +52.9 6

  16. Slide 16: Commodity Prices, Foreign Exchange, and Interest Rate

    Commodity Prices, Foreign Exchange, and Interest Rate FY21 FY20 FY21 Latest Data Assumptions (Apr.-Dec. Avg.) (Apr.-Dec. Avg.) (As of Jan. 27, 2022) (Annual Avg.) Coking Coal *1 US$113.3/t US$127.5/t US$278.0/t US$445.5/t Thermal Coal *1 US$60.1/t US$80.0/t US$163.9/t US$262.6/t Crude Oil (Brent) US

  17. Slide 17: Dividends

    2. Dividends Copyright © Sojitz Corporation 2022 17

  18. Slide 18: Dividends Policy

    Dividends Policy ◼ Sojitz recognizes that paying stable and continuous dividends is a management priority, together with enhancing shareholder value through the accumulation and effective use of retained earnings. ◼ Our basic policy is to target a consolidated payout ratio of about 30%. ◼ Lower limi

  19. Slide 19: Stock Price & PBR Trend

    Stock Price & PBR Trend （TOPIX (pt)） Announcement of MTP2023 Sojitz stock price (Yen) 3,400 2,100 （as of the end of Dec. 2020) （as of the end of Dec. 2021) Sojitz (right axis) TOPIX (left axis) Sojitz TOPIX Sojitz TOPIX Stock price 1,150 1,804.7 Stock Price 1,728 1,992.3 PBR 0.48 1.28 PBR 0.59 1.27

  20. Slide 20: Supplemental Data: Segment Information

    【Supplemental Data】 Ⅰ. Segment Information *Figures for gross profit, SG&A expenses, share of profit of investments accounted for using the equity method, and profit for the period for the third-month period ended December 31, 2021, and for total assets for the year ended March 31, 2021, have been r

  21. Slide 21: Automotive

    Automotive FY21 Q3 Summary Vehicle Sales (BN JPY) （unit） Dealership Business （unit） Distributor Business Main Factors Behind Difference FY20 Q3 FY21 Q3 Difference 【 Profit for the period 】 Gross profit 23.2 33.1 9.9 Increased due to higher sales volumes in overseas automotive SG&A expenses (20.2) (2

  22. Slide 22: Aerospace & Transportation Project

    Aerospace & Transportation Project FY21 Q3 Summary Business Jet Charter Sales (BN JPY) (Operations) Main Factors Behind Difference FY20 Q3 FY21 Q3 Difference 【 Profit for the period 】 Gross profit 7.4 10.7 3.3 Increased due to higher transaction volumes in aircraft- and marine vessel-related SG&A ex

  23. Slide 23: Infrastructure & Healthcare

    Infrastructure & Healthcare FY21 Q3 Summary Initiatives (BN JPY) Energy Conservation Business in the U.S. Main Factors Behind Difference Improvement of global energy efficiency from market-oriented perspective FY20 Q3 FY21 Q3 Difference 主な要因 ◼ Sojitz, through Sojitz Corporation of America, has acqui

  24. Slide 24: Change in Net Power-Generation Capacity

    Charge in Net Power-Generation Capacity （MW) Fuel oil Gas Solar power Wind power Biomass 7% 2,500 2,000 Contract Forms 1,500 93% 1,000 Long-term contract Spot contract 500 *As of December 31, 2021 0 4% 9% 2017 2018 2019 2020 2021 2022 2023 Results and Forecast of Net Power-Generation Capacity (持分発電容

  25. Slide 25: Metals, Mineral Resources & Recycling

    Metals, Mineral Resources & Recycling FY21 Q3 Summary Change in Coal Sales Volume (BN JPY) (10,000 ton) Main Factors Behind Difference FY20 Q3 FY21 Q3 Difference 【 Profit for the period 】 Gross profit 6.9 35.1 28.2 Increased due to higher profits from rise in coal market conditions as well SG&A expe

  26. Slide 26: Metals & Mineral Resources Year on Year Main Factors Behind Difference

    Metals & Mineral Resources Year on Year Main Factors Behind Difference （BN JPY） Impact of commodity prices Approx. +¥24.7bn included +0.2 28.3 +8.8 +0.9 +3.6 Coal-related SDPL +15.5 Ferroalloys Industrial Steel-related Others and minerals- +17.3 non-ferrous related metals-related Nickel (0.9) Carbon

  27. Slide 27: Chemicals

    Chemicals FY21 Q3 Summary Sales Volume for Methanol (BN JPY) Massive growth in sales volume due to February 2017 acquisition of solvadis deutschland gmbh development of stable earnings foundations FY20 Q3 FY21 Q3 Difference Main Factors Behind Difference by leveraging strengths Gross profit 26.8 38.

  28. Slide 28: Consumer Industry & Agriculture Business

    Consumer Industry & Agriculture Business FY21 Q3 Summary Profit of Overseas Fertilizers Business (BN JPY) Development of stable earnings foundations by leveraging strength Main Factors Behind Difference of top-class market shares in Thailand, the Philippines, and Vietnam FY20 Q3 FY21 Q3 Difference (

  29. Slide 29: Retail & Consumer Service

    Retail & Consumer Service FY21 Q3 Summary Tender Offer for Shares of JALUX Inc. Conducted a joint tender offer bid with Japan Airlines Co., Ltd. (BN JPY) (JAL) and delist JALUX Inc. (announced on Nov. 2, 2021) FY20 Q3 FY21 Q3 Difference Main Factors Behind Difference Gross profit 20.9 22.5 1.6 【 Pro

  30. Slide 30: Others

    Others Major Subsidiaries and Associates Organizational Reforms (effective as of April 1, 2021) (BN JPY) Effective April 1, 2021, four machinery-related subsidiaries— Company name Equity FY20 Q3 FY21 Q3 Difference Business Description Sojitz Machinery Corporation, Sojitz Autrans Corporation, ownersh

  31. Slide 31: Supplemental Data: Summary of Financial Results

    【Supplemental Data】 Ⅱ. Summary of Financial Results Copyright © Sojitz Corporation 2022 31

  32. Slide 32: Summary of Profit or Loss

    Summary of Profit or Loss FY21 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 (BN JPY) Q3 Net sales 4,014.6 4,321.7 3,934.5 4,046.6 4,105.3 4,006.6 3,745.5 4,209.1 ー ー ー ー (JGAAP) Revenue ー 2,006.6 1,747.8 1,803.1 1,809.7 1,658.1 1,555.3 1,816.5 1,856.2 1,754.8 1,602.5 1,548.6 Gross profit 1

  33. Slide 33: Summary of Balance Sheets

    Summary of Balance Sheets End of End of End of End of End of End of End of End of End of End of End of End of Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Dec. (BN JPY) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Total assets 2,117.0 2,190.7 2,150.1 2,220.2 2,297.4 2,056.7

  34. Slide 34: Summary of Cash Flow

    Summary of Cash Flow End of End of End of End of End of End of End of End of End of End of End of End of Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Dec. (BN JPY) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Core cash flow ー ー ー ー ー 18.3 5.5 (56.7) 63.1 1.3 (8.0) (8.9) Free

  35. Slide 35: Summary of Profit or Loss

    Summary of Profit or Loss (BN JPY) 3.0% 80.0 3.0% 70.4 2.7% 70.0 2.5% Profit for the Year ROA 60.8 60.0 56.8 2.0% 50.0 1.9% 1.7% 40.8 40.0 1.5% 36.5 33.1 1.2% 30.0 27.0 1.0% 20.0 10.0 0.0 0.0% FY14 FY15 FY16 FY17 FY18 FY19 FY20 Copyright © Sojitz Corporation 2022 35

  36. Slide 36: Summary of Balance Sheets

    Summary of Balance Sheets (BN JPY) (Times) Net Interest-Bearing Debt Total Equity Net DER 700.0 1.5 629.6 611.1 603.5 618.2 613.2 610.6 619.0 571.6 586.4 584.7 579.1 600.0 550.9 550.5 520.3 500.0 1.1 1.1 1.1 1.0 1.1 1.0 1.0 400.0 1.0 300.0 0.5 200.0 100.0 0.0 0.0 End of End of End of End of End of E

  37. Slide 37: Summary of Cash Flow

    Summary of Cash Flow (BN JPY) CF from operating activities CF from investing activities FCF Core CF 150.0 99.9 98.8 96.5 100.0 85.0 63.1 66.0 54.3 50.0 39.1 40.5 49.3 18.3 25.3 0.9 12.4 5.5 4.8 0.0 1.3 (8.0) (13.8) (31.3) (33.9) (32.2) (35.7) (35.7) (50.0) (42.2) (56.7) (86.4) (100.0) FY14 FY15 FY16

  38. Slide 38: Copyright © Sojitz Corporation 2022

    Copyright © Sojitz Corporation 2022 38

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