Slide 1: Presentation Materials for Financial Results, Third Quarter Ended December 31, 2023
Presentation Materials for Financial Results for the Third Quarter Ended December 31, 2023 [IFRS] February 2, 2024 Sojitz Corporation
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. Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2024 [IFRS] 2. Segment Information 3. Topics - Outline of Medium-Term Management Plan 2026, Shareholder Returns 4. Summary of Financial Results Copyright © Sojitz Corporation 2024 3
Slide 4: Financial Results for the Third Quarter and Full Year Forecast
INDEX｜1 Financial Results for the Third Quarter and Full Year Forecast of Fiscal Year Ending March 31, 2024 [IFRS]
Slide 5: FY23 Q1-3 Summary
INDEX ｜1 FY23 Q1-3 Summary ⚫ Upward revision to FY2023 forecast for profit for the year, from ¥95.0 billion to ¥100.0 billion, and increase of annual dividend payments, to ¥135 per share, in reflection of steady performance ⚫ Continuous execution of new investments and asset replacements resulted in
Slide 6: Summary of Profit or Loss
INDEX ｜1 Summary of Profit or Loss FY23 FY22 FY23 FY23 Revised Difference Main Factors Initial Forecast Achieved (BN JPY） Q1-3 Q1-3 H1 Q3 Forecast (Feb. 2, 2024) Metals, Mineral Resources & Recycling (150.6), Revenue 1,925.3 1,788.1 1,187.3 600.8 (137.2) Chemicals (70.1) - - - Automotive +75.7, Reta
Slide 7: Summary of Balance Sheet – 1.
INDEX ｜1 Summary of Balance Sheet – 1. Mar. 31, Dec. 31, Difference （BN JPY） 2023 2023 Main Factors Assets(current/non-current) 2,660.8 2,792.6 +131.8 Inventories ⚫ Increased due to acquisition of new consolidated subsidiaries Cash and cash equivalents 247.3 223.3 (24.0) Goodwill ⚫ Increased due to
Slide 8: Summary of Balance Sheet – 2.
INDEX ｜1 Summary of Balance Sheet – 2. FY23 FY23 Mar. 31, Dec. 31, Difference Forecast Revised Forecast 2023 2023 （BN JPY） (Oct. 31, 2023) (Feb. 2, 2024) Total Assets 2,660.8 2,792.6 +131.8 2,800.0 2,800.0 Total Equity 837.7 897.3 +59.6 900.0 920.0 Equity Ratio 31.5% 32.1% +0.6ppt 32.1% 32.9% Gross
Slide 9: Summary of Cash Flow
INDEX ｜1 Summary of Cash Flow FY22 FY23 Difference Main Factors （BN JPY） Q1-3 Q1-3 CF from operating activities 128.0 86.2 (41.8) CF from operating activities ⚫ Increased in working capital ⚫ Dividend received from Equity-method associates CF from investing activities (46.3) 25.5 +71.8 FY22 Q1-3 :¥2
Slide 10: Summary of Gross Profit by Segment
INDEX ｜1 Summary of Gross Profit by Segment (BN ) 263.4 FY23 242.3 FY23 Achieved FY22 FY23 Revised 41.6 Difference Forecast vs. Revised Q1-3 Q1-3 Forecast (Oct. 31, 2023) Forecast （BN JPY） (Feb. 2, 2024) 45.5 14.0 Automotive 41.6 45.5 +3.9 57.0 57.0 80% 21.1 14.5 Aerospace & Transportaion Project 14
Slide 11: Summary of Profit by Segment
INDEX ｜1 Summary of Profit by Segment (BN ) 108.7 FY22 FY23 Difference Main Factors （BN JPY） Q1-3 Q1-3 6.9 Decreased due to withdrawal from distributorship 4.7 Automotive 6.9 2.8 (4.1) businesses in Thailand and lower performance in automobile sales businesses in the Philippines 13.8 Aerospace & Tra
Slide 12: FY23 Forecast Profit for the Year by Segment
INDEX ｜1 FY23 Forecast Profit for the Year by Segment FY23 FY23 Achieved FY23 Revised Forecast Revised Forecast vs. Revised Progress Overview Q1-3 (Feb. 2, 2024) Amount （BN JPY） (Oct. 31, 2023) Forecast Profit for the period/year 75.2 95.0 100.0 +5.0 75% Downward revision based on lower performance
Slide 13: Cash Flow Management
INDEX ｜1 Cash Flow Management ⚫ New investments and asset replacements are expected to be partially behind the initial plan to the next fiscal year ⚫ Core CF is projected to achieve a significant cumulative surplus over six years from with the MTP2020 MTP2020 MTP2023 FY23 3-Year Aggregate 3-Year Agg
Slide 14: Investments and Asset Replacement
INDEX ｜1 Investments and Asset Replacement FY23 Q1-3 ¥157.0bn FY23 Investment Plan Approx. ¥210.0bn ● Energy conservation business in Australia and U.S. Infrastructure ¥60.0bn ● LNG business in Australia & Healthcare ● Off-shore wind power generation in Taiwan etc. Growth market × ● Commercial food
Slide 15: 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 ¥450.0bn (including non-financial and
Slide 16: Shareholder Returns Policy
INDEX ｜1 Shareholder Returns Policy ⚫ We recognized that paying stable and continuous dividends while enhancing shareholder value through the accumulation and effective use of retained earnings ⚫ Following basic policy of targeting a consolidated ratio of approx. 30%, upward revision to forecast for
Slide 17: Stock Price, PBR Trend, and Credit Ratings
INDEX ｜1 Stock Price, PBR Trend, and Credit Ratings ⚫ Sojitz stock price outperforming TOPIX ⚫ Improvement in ratings from S&P and JCR in FY2023 in reflection of Sojitz’s ability to maintain financial health and increase earnings level Total Equity NET DER （22/12/30） （23/12/29） A 自己資本（億円） ネットDER（倍）
Slide 18: Commodity Prices, Foreign Exchange, and Interest Rate
INDEX ｜1 Commodity Prices, Foreign Exchange, and Interest Rate FY22 Results FY23 Results Latest data FY23 Q4 Assumption (Apr. - Dec. Avg.) (Apr. - Dec. Avg.) （As of Jan. 29, 2024） Coking coal *1 US$323/t US$320/t US$281/t US$333/t Thermal coal *1 US$395/t US$130/t US$148/t US$116/t Crude oil (Brent)
Slide 19: Changes in Business Portfolio (Resource and Non-Resource businesses)
INDEX ｜1 Changes in business Portfolio（Resource and Non-Resource businesses） ⚫ Reinforcement of reliable earnings foundations through investments focused on non-resource businesses （％） (BN ) Resource business Non-resource business (Existing) Non-resource business (New) percentage of total attributab
Slide 20: Segment Information
INDEX｜2 Segment Information Note: Effective April 1, 2023, Sojitz Group reorganized several segments and changed its reporting figures for FY2022 Q1-Q3.
Slide 21: Automotive
INDEX ｜2 Automotive Summary Vehicle Sales FY22 FY23 Main Factors of Difference Dealership Business Difference (BN JPY） Q1-3 Q1-3 in Profit for the Period （Unit） Major reasons for decreases of ¥4.1bn YoY in profit : ⚫ Lower profit due to withdrawal from Thai Japan, Asia & Oceania Americas Europe Gros
Slide 22: Automotive: Main Subsidiaries and Associates
INDEX ｜2 Automotive Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 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 23: Aerospace & Transportation Project
INDEX ｜2 Aerospace & Transportation Project Summary Business Jet charter sales （Operations） FY22 FY23 Difference Main Factors of Difference Q1-3 Q1-3 in Profit for the Period 200 (BN JPY） ⚫ Decreased due to lower aircraft- related transactions despite of Gross profit 14.0 14.5 +0.5 strong performanc
Slide 24: Aerospace & Transportation Project: Main Subsidiaries and Associates
INDEX ｜2 Aerospace & Transportation Project Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Difference Business Description ownership Period （BN JPY） Aircraft, Marine vessel asset Aircraft sales representative, Aircraf
Slide 25: Infrastructure & Healthcare
INDEX ｜2 Infrastructure & Healthcare Summary Net Power-Generation Capacity （MW） FY22 FY23 Difference Main Factors of Difference (BN JPY） Q1-3 Q1-3 in Profit for the Period 2,000 Fuel oil Gas Solar power Wind power Biomass Decreased due to rebound from gains on partial sale of equity in telecommunica
Slide 26: Infrastructure & Healthcare: Main Subsidiaries and Associates
INDEX ｜2 Infrastructure & Healthcare Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Difference Business Description ownership Period （BN JPY） Energy related, Natural gas-fired power plant business LNG project and inve
Slide 27: Metals, Mineral Resources & Recycling
INDEX ｜2 Metals, Mineral Resources & Recycling Summary Change in Coal Sales Volume FY22 FY23 （10,000 ton） Difference Main Factors of Difference (BN JPY） Q1-3 Q1-3 in Profit for the Period 1,000 Thermal Coal Coking Coal PCI Coal ⚫ Decreased due to deterioration of market conditions and rising costs i
Slide 28: Metals, Mineral Resources & Recycling: Main Subsidiaries and Associates
INDEX ｜2 Metals, Mineral Resources & Recycling Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 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 5
Slide 29: Chemicals
INDEX ｜2 Chemicals Summary Sales Volume for Methanol FY22 FY23 Main Factors of Difference （10,000 t） Difference (BN JPY） Q1-3 Q1-3 in Profit for the Period 230 ⚫ Strong performance in non- 190 180 190 180 170 170 consolidated trading businesses Gross profit 48.4 46.0 (2.4) following efforts to impro
Slide 30: Chemicals: Main Subsidiaries and Associates
INDEX ｜2 Chemicals Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 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 1.6 － 4.
Slide 31: Consumer Industry & Agriculture Business
INDEX ｜2 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 FY23 Main Factors of Difference Difference （BN ） (BN JPY） Q1-3 Q1-3 in Profit for the
Slide 32: Consumer Industry & Agriculture Business: Main Subsidiaries and Associates
INDEX ｜2 Consumer Industry & Agriculture Business Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Difference Business Description ownership Period （BN JPY） fertilizer related business -Thai Central Chemical Public Manu
Slide 33: Retail & Consumer Service
INDEX ｜2 Retail & Consumer Service Summary FY22 FY23 Main Factors of Difference Difference (BN JPY） Q1-3 Q1-3 in Profit for the Period ⚫ Increased due to recovery in Gross profit 34.3 41.3 +7.0 domestic retail business, sales of a shopping mall and negative goodwill recorded in association with a ne
Slide 34: Retail & Consumer Service: Main Subsidiaries and Associates
INDEX ｜2 Retail & Consumer Service Main Subsidiaries and Associates (Excluding one-time factors) FY2022 FY2023 Equity Accounting Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Difference Business Description ownership Period （BN JPY） Manufacturing and distribution of foods, Retail related business － (0.4) (0.1
Slide 35: Topics
補足資料｜3 INDEX｜3 Topics
Slide 36: Outline of Medium-Term Management Plan 2026 - Shareholder Returns
INDEX｜3 Outline of Medium-Term Management Plan 2026 - Shareholder Returns ⚫ Announcement of new shareholder returns policy, 4.5% of adjusted DOE, to be launched with MTP2026 (plan to start in FY2024) on November 27, 2023 ⚫ Our basic policy is to provide stable and continuous dividends. Based on this
Slide 37: Transition to Company with Audit and Supervisory Committee
INDEX｜3 Topics Transition to Company with Audit and Supervisory Committee（*1） ⚫ Sojitz now will make transition to a Company with Audit and Supervisory Committee to promote the delegation of authority from the Board of Directors to Executive Directors and Executive Officers in an effort to speed up
Slide 38: Topics: Indian High-Speed Rail Order and Corporate PPA Project
INDEX｜3 Topics Aerospace & Transportation Project Infrastructure & Healthcare Receipt of Order for Electrification System Works Sojitz, Kansai Electric Power, and JR west Japan have reached basic agreement for High-Speed Rail Project in India for a Japan’s largest renewable energy corporate PPA Proj
Slide 39: Topics: Industrial Park Development and Decarbonization Solutions in Southeast Asia
INDEX｜3 Topics Infrastructure & Healthcare Industrial Park Development and Decarbonization Solutions in Southeast Asia Commencement of Decarbonization Solutions Business and MoU with Sinar Mas Group Sojitz and GLT to Develop New Industrial Park (Long Duc 3) in Dong Nai Province, Vietnam Establishmen
Slide 40: Sojitz Acquires Full Ownership of Vietnam's Largest Commercial Food Wholesaler
INDEX｜3 Topics Retail & Consumer Service Sojitz Acquires Full Ownership of Vietnam’s Largest Commercial Food Wholesaler Acquired full ownership of DaiTanViet Joint Stock Company (“NEW VIET DAIRY”), which is Vietnam’s largest wholesaler of commercial food Target of becoming leading comprehensive food
Slide 41: Summary of Financial Results
補足資料｜3 Index｜4 Summary of Financial Results
Slide 42: PL Summary
INDEX｜4 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 43: PL Summary (Profit and ROA)
INDEX｜4 PL Summary (BN ) （％） 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 Plan2
Slide 44: 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 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 (BN ) 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 1,444.
Slide 45: Balance Sheets Summary (Net Debt, Equity, Net DER)
Index｜4 Balance Sheets Summary Net Interest-Bearing Debt Total Equity Net DER (BN ) （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. 2
Slide 46: 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. 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 47: 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. 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 48: Cash Flow Summary (chart)
INDEX｜4 Cash Flow Summary (BN ) 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 FY18
Slide 49: New way, New value
New way, New value