Financial Results

Q1 FYE 3/2021

Summary of Consolidated Financial Results

For the Three-Month Period Ended June 30, 2020

(IFRS basis)

(April 1, 2020 - June 30, 2020)

*This document is an English translation of materials originally prepared in Japanese.

The Japanese original shall be considered the primary version.

TSE Code: 8002

August 4, 2020

Summary of Consolidated Financial Statements for the Three-Month Period Ended June 30, 2020 (IFRS basis)

Company name: Marubeni Corporation

(URL https://www.marubeni.com/en/)

Code number: 8002

Listed: Tokyo, Nagoya

Representative:

KAKINOKI Masumi

President and CEO, Member of the Board

Inquiries:

TACHIBANA Masato General Manager, Media Relations Sec., Corporate Communications Dept.

TEL (03) 3282 - 4803

Expected date of quarterly financial statement report :

August 7, 2020

Expected date of the beginning of delivery of dividends :

-

Supplementary explanations of quarterly business results:

Prepared

IR meeting on financial results:

To be held (for institutional investors and analysts)

1. Consolidated financial results for the three-month period ended June 30, 2020 (April 1, 2020 - June 30, 2020)

(Remarks)

Figures are rounded to the nearest million.

(1) Consolidated business results

%: change from the previous fiscal year

Profit attributable to

Comprehensive

Revenue

Operating profit

Profit before tax

Profit for the period

income

owners of the parent

for the period

Three months ended June 30,

(millions of yen)

(%) (millions of yen)

(%) (millions of yen)

(%) (millions of yen)

(%) (millions of yen)

(%) (millions of yen)

(%)

2020

1,587,556

(16.8)

51,946

(6.2)

74,696

(9.5)

60,198

(11.1)

58,132

(10.8)

68,326

-

2019

1,907,646

(12.1)

55,378

(6.9)

82,540

(25.7)

67,735

(23.9)

65,166

(24.9)

(30,538)

-

Earnings per share

Earnings per share

(basic)

(diluted)

Three months ended June 30,

(yen)

(yen)

2020

32.92

32.89

2019

36.98

36.94

(Note) 1. "Operating profit" are presented in accordance with Japanese accounting practice for investors' convenience and are not required by IFRS. "Operating profit" is the sum of "Gross trading profit" and "Selling, general and administrative expenses" including "Provision for doubtful accounts".

  1. 2. "Basic and diluted earnings per share attributable to owners of the parent" are based on "Profit attributable to owners of the parent" excluding the amount not attributable to ordinary shareholders.

  2. Consolidated financial position

Total assets

Total equity

Equity attributable to

Equity attributable to

owners of the parent

owners of the parent ratio

(millions of yen)

(millions of yen)

(millions of yen)

(%)

June 30, 2020

6,171,652

1,638,439

1,551,953

25.1

March 31, 2020

6,320,037

1,604,600

1,515,475

24.0

2. Dividends information

Yearly dividends per share

1st Quarter-end 2nd Quarter-end 3rd Quarter-end 4th Quarter-end

Annual

(yen)

(yen)

(yen)

(yen)

(yen)

FYE 3/2020

-

17.50

-

17.50

35.00

FYE 3/2021

-

FYE 3/2021 (forecast)

7.50

-

7.50

15.00

(Note)

Changes from the latest announced forecasts: None

(Remarks)

3 Consolidated earnings forecast for FYE 3/2021 (April 1, 2020 - March 31, 2021)

%: change from the previous fiscal year

Profit attributable to owners of the parent

Earnings per share

attributable to owners of the parent (basic)

(millions of yen)

(%)

(yen)

Yearly

100,000

-

55.33

(Note)

*1 Changes from the latest announced forecasts: None

*2 The assumptions in the forecasts of consolidated earnings, including the further spread of COVID-19 and when the pandemic might end, have not changed from those announced on May 7, 2020. For details, please refer to P.13 "1. Qualitative Information on Consolidated Financial Results for the Three-month Period under Review, (3) Qualitative Information on Future Outlook Including Forecasts of Consolidated Financial Results" on the attached materials.

"3 Earnings per share attributable to owners of the parent (basic)" is based on "Profit attributable to owners of the parent" excluding the amount not attributable to ordinary shareholders.

*Notes

(1) Changes in principal subsidiaries during the period

: None

(2 Changes in accounting principles and accounting estimates

Changes in accounting principles required by IFRS

: None

Changes other than

: None

Changes in accounting estimate

: None

(3) Number of issued shares (Common shares)

Number of issued shares at the end of the term

June 30, 2020

1,737,940,900

(Treasury stock is included)

March 31, 2020

1,737,940,900

Number of treasury stock at the end of the term

June 30, 2020

1,787,919

March 31, 2020

2,214,582

Average number of outstanding shares during the term

Three months ended June 30, 2020

1,735,939,650

Three months ended June 30, 2019

1,735,351,574

The Summary of Consolidated Financial Statements for the Three-Month Period Ended June 30, 2020 (IFRS basis) is not subject to quarterly review.

Descriptions relating to the proper use of financial forecasts and other special notes (Notes to the description about future, other)

The descriptions about future such as the above forecasts are based upon available information and assumptions, as of the time of the announcement date, about uncertain factors which would influence future businesses. Actual results might be influenced materially by various factors in the future.

(How to access supplementary explanations on business results and the details of briefing on business results)

Supplementary explanations on business results will be made available on the Company's website on Tuesday, August 4, 2020.

The Company is scheduled to hold an IR meeting on financial results for institutional investors and analysts on Tuesday, August 4, 2020, and to post the audio file of the meeting together with the materials used at the briefing on the Company's website at the earliest possible time.

Table of Contents of Attached Materials

1.

Qualitative Information on Consolidated Financial Results for the

2

Three-month Period under Review

(1)

Qualitative Information on Consolidated Business Results

2

(2)

Qualitative Information on Consolidated Financial Conditions

12

(3)

Qualitative Information on Future Outlook Including

13

Forecasts of Consolidated Financial Results

2.

Consolidated Financial Statements and Notes

14

(1)

Consolidated Statements of Financial Position

14

(2)

Consolidated Statements of Comprehensive Income

16

(3)

Consolidated Statements of Changes in Equity

17

(4)

Consolidated Statements of Cash Flows

19

(5)

Notes Related to Going Concern Assumptions

20

(6)

Segment Information

20

1

Marubeni Corporation

Consolidated Financial Results

1. Qualitative Information on Consolidated Financial Results for the Three-month Period under Review

  1. Qualitative Information on Consolidated Business Results

In the three-month period ended June 30, 2020, lockdowns and other measures were adopted around the world in an attempt to prevent the spread of the COVID-19 pandemic. As a result, economic activities in many countries were significantly restricted and the global economy rapidly contracted. In response to this economic downturn-said to be the worst of the post-warera-governments and central banks employed all manner of policy measures, including fiscal stimulus on an unprecedented scale, to prop up household finances, corporations, and financial markets. The progression of the pandemic in different countries has been mixed; some countries have managed to curb the spread of infections, other countries have seen a second wave after easing initial restrictions, while elsewhere the spread of infection continues unabated. Accordingly, the timing and speed at which economic activity is being resumed has varied.

The swift and large-scale rollout of fiscal and monetary policies meant the financial markets avoided turmoil and share prices even staged a rally in some cases, in stark contrast to the sharp downturn in the real economy.

As for primary commodity prices, the price of crude oil saw a temporary heavy decline in April but then gradually recovered thereafter on production cuts and expectations for the resumption of economic activity. Prices for copper and other major primary commodities increased on the whole in response to a relatively solid recovery in the Chinese economy and concerns about decreased supply owing to the spread of COVID-19 in countries of origin.

Under the aforementioned business environment, consolidated operating results for the three-month period ended June 30, 2020 are as follows.

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

1,907,646

1,587,556

(320,090)

Gross trading profit

192,254

178,773

(13,481)

Operating profit

55,378

51,946

(3,432)

Share of profits (losses) of associates and joint ventures

38,787

24,540

(14,247)

Profit attributable to owners of the parent

65,166

58,132

(7,034)

2

Marubeni Corporation

Consolidated Financial Results

(Note 1) Figures are rounded to the nearest million yen unless otherwise stated.

(Note 2) "Operating profit" is presented in accordance with Japanese accounting practice for investors' convenience and is not required by IFRS. "Operating profit" is the sum of "Gross trading profit" and "Selling, general and administrative expenses" including "Provision for doubtful accounts".

Revenue

Revenue was down 320.1 billion yen (16.8%) year on year to 1,587.6 billion yen. By operating segment, revenue decreased mainly in Food and Agri Business.

Gross trading profit

Gross trading profit decreased 13.5 billion yen (7.0%) from the year-earlier period to 178.8 billion yen. Main increases/decreases by operating segment are the following. -Construction, Industrial Machinery & Mobility: Decrease by 6.0 billion yen

Profit decrease in the construction machinery, industrial equipment, and automobile related businesses

-Metals & Mineral Resources: Decrease by 4.9 billion yen

Profit decrease in the Australian coal business due to the fall in coal prices -Aerospace & Ship: Decrease by 3.0 billion yen

Sluggish sales in aircraft parts and engines and a decrease in revenue from the vessel operations

-Food: Increase by 6.3 billion yen

Profit increase in the beef processing and sales business

Operating profit

Operating profit decreased 3.4 billion yen (6.2%) from the year-earlier period to 51.9 billion yen due to a decrease in gross trading profit despite a decrease in expenses.

Share of profits of associates and joint ventures

Share of profits of associates and joint ventures decreased 14.2 billion yen (36.7%) from the year-earlier period to 24.5 billion yen. Main increases/decreases by operating segment are the following.

-Metals & Mineral Resources: Decrease by 7.8 billion yen

Profit decrease in the Australian coal business, the Chilean copper mining business and the steel products business

-Finance & Leasing Business: Decrease by 2.6 billion yen Decrease in the aircraft leasing business in U.S.

-Infrastructure Project: Decrease by 2.2 billion yen

Profit decrease in the oil and gas E&P related business in U.S. and such

3

Marubeni Corporation

Consolidated Financial Results

Profit attributable to owners of the parent

Profit attributable to owners of the parent for the three-month period ended June 30, 2020 (also referred to as net profit for the period under review) decreased 7.0 billion yen (10.8%) year on year to 58.1 billion yen due to the decrease in operating profit and share of profits of associates and joint ventures, despite the non-recurrence of an impairment loss recognized in the year-earlier period on the oil and gas E&P in the U.S. Gulf of Mexico.

As a result, the Company achieved 58.1% of 100.0 billion yen, the yearly net-profit forecast for the fiscal year ending March 31, 2021.

4

Marubeni Corporation

Consolidated Financial Results

Results for each operating segment for the three-month period ended June 30, 2020 are as follows.

Lifestyle

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

35,666

26,431

(9,235)

Gross trading profit

4,904

3,763

(1,141)

Operating profit (loss)

335

(326)

(661)

Share of profits (losses) of associates and joint ventures

161

(154)

(315)

Profit (loss) attributable to owners of the parent

330

(274)

(604)

Gross trading profit decreased 1.1 billion yen (23.3%) year on year to 3.8 billion yen and operating profit/loss deteriorated by 0.7 billion yen ( - %) year on year to negative 0.3 billion yen, in response to reduced sales of apparel and such due to COVID-19. Share of profits / losses of associates and joint ventures decreased 0.3 billion yen ( - %) year on year to negative 0.2 billion yen as a result of reduced profit from planning, production and sales business of apparel and such. Net profit/loss was down 0.6 billion yen ( - %) year on year to negative 0.3 billion yen.

ICT & Real Estate Business

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

47,367

83,967

36,600

Gross trading profit

26,912

28,203

1,291

Operating profit (loss)

4,671

8,134

3,463

Share of profits (losses) of associates and joint ventures

499

6

(493)

Profit (loss) attributable to owners of the parent

3,649

5,612

1,963

Gross trading profit increased 1.3 billion yen (4.8%) year on year to 28.2 billion yen due to an increase in domestic real estate sales, which offset a decline in domestic mobile phone

sales business owing to the impact of COVID-19. In addition to the above operating profit increased 3.5 billion yen (74.1%) year on year to 8.1 billion yen because of a decrease in overhead expenses caused by voluntary restraint in response to COVID-19. As a result, net profit increased 2.0 billion yen (53.8%) year on year to 5.6 billion yen.

5

Marubeni Corporation

Consolidated Financial Results

Forest Products

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

70,017

56,510

(13,507)

Gross trading profit

9,269

6,653

(2,616)

Operating profit (loss)

4,382

1,045

(3,337)

Share of profits (losses) of associates and joint ventures

(1)

(534)

(533)

Profit (loss) attributable to owners of the parent

2,556

(221)

(2,777)

Gross trading profit decreased 2.6 billion yen (28.2%) year on year to 6.7 billion yen as a result of a decline in MUSI Pulp Project due to the deterioration of pulp market prices, and decreases in the sales volume of wood-chip and such. In addition to the above, the increased overseas bad debt expense lowered operating profit 3.3 billion yen (76.2%) year on year to 1.0 billion yen. As a result, net profit/loss declined 2.8 billion yen ( - %) year on year to negative 0.2 billion yen.

Food

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

467,683

326,592

(141,091)

Gross trading profit

24,647

30,996

6,349

Operating profit (loss)

7,148

14,500

7,352

Share of profits (losses) of associates and joint ventures

1,946

2,285

339

Profit (loss) attributable to owners of the parent

8,508

11,250

2,742

Gross trading profit increased 6.3 billion yen (25.8%) year on year to 31.0 billion yen due to strong performance in the beef processing and sales business. This is because we were able to maintain operations amid tight supply and demand caused by the temporary suspension of production by other major industry members in response to COVID-19. Operating profit increased 7.4 billion yen (102.9%) year on year to 14.5 billion yen. Net profit increased 2.7 billion yen (32.2%) year on year to 11.3 billion yen according to the increased operating profit, despite the non-recurrence of a gain recognized in the year-earlier period on the sale of shares in an associate company in the domestic retailing business.

6

Marubeni Corporation

Consolidated Financial Results

Agri Business

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

859,463

794,114

(65,349)

Gross trading profit

58,334

57,456

(878)

Operating profit (loss)

22,655

21,097

(1,558)

Share of profits (losses) of associates and joint ventures

501

441

(60)

Profit (loss) attributable to owners of the parent

15,208

15,341

133

Gross trading profit decreased 0.9 billion yen (1.5%) year on year to 57.5 billion yen because of decreased revenue from the Gavilon's grain business, mainly as a result of weaker demand for ethanol. Operating profit decreased 1.6 billion yen (6.9%) year on year to 21.1 billion yen. Net profit, however, increased 0.1 billion yen (0.9%) year on year to 15.3 billion yen due to an improvement in interest expense-net.

Chemicals

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

106,937

87,289

(19,648)

Gross trading profit

7,840

10,472

2,632

Operating profit (loss)

2,175

5,358

3,183

Share of profits (losses) of associates and joint ventures

253

371

118

Profit (loss) attributable to owners of the parent

1,584

4,405

2,821

Gross trading profit increased 2.6 billion yen (33.6%) year on year to 10.5 billion yen, as a result of improved margins in the petrochemical products transactions, and operating profit increased 3.2 billion yen (146.3%) year on year to 5.4 billion yen. Net profit increased 2.8 billion yen (178.1%) year on year to 4.4 billion yen consequently.

7

Marubeni Corporation

Consolidated Financial Results

Energy

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

115,977

80,638

(35,339)

Gross trading profit

12,263

12,234

(29)

Operating profit (loss)

3,847

4,556

709

Share of profits (losses) of associates and joint ventures

231

41

(190)

Profit (loss) attributable to owners of the parent

(5,026)

4,276

9,302

Gross trading profit stayed at the same level year on year at 12.2 billion yen with a profit decrease in the oil and gas E&P caused by a fall in oil and gas prices and such, and the improved margins in oil and LNG trading businesses, etc. Operating profit increased 0.7 billion yen (18.4%) year on year to 4.6 billion yen. In addition to the above, because of a non-recurrence of impairment loss recognized in the year-earlier period on the oil and gas E&P in the U.S. Gulf of Mexico, net profit improved by 9.3 billion yen ( - %) to 4.3 billion yen.

Metals & Mineral Resources

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

92,387

63,723

(28,664)

Gross trading profit

9,315

4,458

(4,857)

Operating profit (loss)

4,674

150

(4,524)

Share of profits (losses) of associates and joint ventures

14,710

6,903

(7,807)

Profit (loss) attributable to owners of the parent

17,611

7,024

(10,587)

Gross trading profit decreased 4.9 billion yen (52.1%) year on year to 4.5 billion yen, as a result of fall of coal prices in the Australian coal business and such. Operating profit decreased 4.5 billion yen (96.8%) year on year to 0.2 billion yen. Share of profits of associates and joint ventures decreased 7.8 billion yen (53.1%) year on year to 6.9 billion yen as a result of a profit decline in the Australian coal business, the Chilean copper mining business and the steel products business. As a result, net profit decreased 10.6 billion yen (60.1%) year on year to 7.0 billion yen.

8

Marubeni Corporation

Consolidated Financial Results

Power Business

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

33,978

28,982

(4,996)

Gross trading profit

6,282

4,628

(1,654)

Operating profit (loss)

(2,140)

(3,655)

(1,515)

Share of profits (losses) of associates and joint ventures

8,160

7,707

(453)

Profit (loss) attributable to owners of the parent

5,165

4,609

(556)

Gross trading profit decreased 1.7 billion yen (26.3%) year on year to 4.6 billion yen, as a result of the declined profits in U.K. electricity wholesaling/retailing business and such. Operating loss worsened 1.5 billion yen ( - %) year on year to negative 3.7 billion yen. Although the stable earnings-type businesses such as power generating businesses with long-term PPA, etc., remained solid, share of profits of associates and joint ventures decreased 0.5 billion yen (5.6%) to 7.7 billion yen due to a profit decline in the businesses that are directly affected by market conditions. As a result, net profit decreased 0.6 billion yen (10.8%) to 4.6 billion yen.

Infrastructure Project

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

4,673

4,868

195

Gross trading profit

2,582

2,537

(45)

Operating profit (loss)

(1,066)

(1,044)

22

Share of profits (losses) of associates and joint ventures

4,356

2,163

(2,193)

Profit (loss) attributable to owners of the parent

2,551

1,495

(1,056)

Gross trading profit and operating loss remained at the same levels year on year at 2.5 billion yen and negative 1.0 billion yen, respectively. Share of profits of associates and joint ventures decreased 2.2 billion yen (50.3%) year on year to 2.2 billion yen as a result of profit decline in oil and gas E&P related business in U.S. and such. Net profit accordingly decreased 1.1 billion yen (41.4%) year on year to 1.5 billion yen.

9

Marubeni Corporation

Consolidated Financial Results

Aerospace & Ship

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

18,365

12,109

(6,256)

Gross trading profit

5,823

2,823

(3,000)

Operating profit (loss)

2,890

361

(2,529)

Share of profits (losses) of associates and joint ventures

1,017

1,665

648

Profit (loss) attributable to owners of the parent

3,111

1,521

(1,590)

Gross trading profit decreased 3.0 billion yen (51.5%) year on year to 2.8 billion yen, caused from sluggish sales in aircraft parts and engines due to the impact of COVID-19, as well as a decrease in revenue from the vessel operations. Operating profit decreased 2.5 billion yen (87.5%) year on year to 0.4 billion yen. Share of profits of associates and joint ventures increased 0.6 billion yen (63.7%) year on year to 1.7 billion yen as a result of the increased profit in the ship-related business. Consequently, net profit decreased 1.6 billion yen (51.1%) year on year to 1.5 billion yen.

Finance & Leasing Business

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

6,429

1,121

(5,308)

Gross trading profit

3,040

492

(2,548)

Operating profit (loss)

385

(1,366)

(1,751)

Share of profits (losses) of associates and joint ventures

5,449

2,815

(2,634)

Profit (loss) attributable to owners of the parent

5,672

1,966

(3,706)

Gross trading profit decreased 2.5 billion yen (83.8%) year on year to 0.5 billion yen, because a consolidated subsidiary in the U.S. refrigerated trailer leasing and rental business was converted into an equity-method associate. Operating profit/loss accordingly decreased

1.8 billion yen ( - %) year on year to negative 1.4 billion yen. Share of profits of associates and joint ventures decreased 2.6 billion yen (48.3%) year on year to 2.8 billion yen, as a result of a decline in profit of the aircraft leasing business in U.S. due to the impact of COVID-19, which offset an profit increase in the used car retail financing business in U.S. Net profit decreased 3.7 billion yen (65.3%) year on year to 2.0 billion yen.

10

Marubeni Corporation

Consolidated Financial Results

Construction, Industrial Machinery & Mobility

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

79,092

54,429

(24,663)

Gross trading profit

21,963

15,936

(6,027)

Operating profit (loss)

5,506

1,208

(4,298)

Share of profits (losses) of associates and joint ventures

1,457

846

(611)

Profit (loss) attributable to owners of the parent

6,329

2,071

(4,258)

Gross trading profit decreased 6.0 billion yen (27.4%) year on year to 15.9 billion yen, as results of profit decrease in the construction machinery, industrial equipment, and automobile rerated businesses due to the impact of COVID-19. Operating profit decreased

4.3 billion yen (78.1%) year on year to 1.2 billion yen. As a result, net profit decreased 4.3 billion yen (67.3%) year on year to 2.1 billion yen.

Next Generation Business Development

(millions of yen)

Three-month period ended June 30,

Variance

2019

2020

Revenue

1,194

793

(401)

Gross trading profit

866

470

(396)

Operating profit (loss)

(3)

(543)

(540)

Share of profits (losses) of associates and joint ventures

50

(14)

(64)

Profit (loss) attributable to owners of the parent

(106)

(495)

(389)

Gross trading profit decreased 0.4 billion yen (45.7%) to 0.5 billion yen and operating loss worsened 0.5 billion yen ( - %) year on year to negative 0.5 billion yen. As a result, net loss worsened 0.4 billion yen ( - %) year on year to negative 0.5 billion yen.

(Note 1) As of April 2020, the former operating segments of "Plant" and "Construction, Auto & Industrial Machinery" are renamed as "Infrastructure Project" and "Construction, Industrial Machinery & Mobility" respectively, and a part of "Plant" has been incorporated into "Finance & Leasing Business", parts of "Plant" and "Other" have been incorporated into "Next Generation Business Development", a part of "Next Generation Business Development" has been incorporated into "Other". In conjunction with these organizational changes, operating segment information for the year-earlier period has been reclassified.

(Note 2) Inter-segment transactions are generally priced in accordance with the prevailing market prices.

11

Marubeni Corporation

Consolidated Financial Results

(2) Qualitative Information onConsolidated FinancialConditions

Conditions of Assets, Liabilities and Equity

March 31,

June 30,

(billions of yen)

Variance

2020

2020

(148.4)

Total assets

6,320.0

6,171.7

Total equity

1,604.6

1,638.4

33.8

Net interest-bearing debt

1,859.1

1,852.7

(6.4)

Net D/E ratio (times)

1.16

1.13

-0.03 points

(Note 1) Figures are rounded to the nearest hundred million yen unless otherwise stated.

(Note 2) Net interest-bearing debt is calculated as cash and cash equivalents and time deposits subtracted from the sum of corporate bonds and current and noncurrent borrowings.

Total assets decreased 148.4 billion yen from the end of the previous fiscal year to 6,171.7 billion yen. Net interest-bearing debt decreased 6.4 billion yen from the end of the previous fiscal year to 1,852.7 billion yen, due to the free cash inflow and such, despite the increased dividend payment. Total equity increased 33.8 billion yen from the end of the previous fiscal year to 1,638.4 billion yen due to an increase in retained earnings and such. Consequently, Net DE ratio stood at 1.13 times.

Cash Flows

Cash and cash equivalents at the end of the period under review were 664.9 billion yen, an increase of 142.4 billion yen from the end of the previous fiscal year.

(Operating activities)

Net cash provided by operating activities was 118.2 billion yen due to operating revenue, dividend income and improvement in working capital and such.

(Investing activities)

Net cash used in investing activities was 83.6 billion yen as a result of acquisition of shares in an equity method associate and capital expenditure in overseas businesses and such, despite the inflow from sales of investment securities.

As a result of the above-mentioned activities, free cash flow for the fiscal year under review was an inflow of 34.5 billion yen.

12

Marubeni Corporation

Consolidated Financial Results

(Financing activities)

Net cash provided in financing activities amounted to 107.8 billion yen as results of financing through corporatebonds, loans, and such.

  1. Qualitative Information on Future Outlook Including Forecasts of Consolidated Financial Results

The earnings forecasts (net profit of 100.0 billion yen) for the fiscal year ending March 31, 2021 are unchanged from the initial forecast announced on May 7, 2020.

The assumptions in the forecasts of consolidated earnings, including the further spread of COVID-19 and when the pandemic might end, have not changed from those announced on May 7, 2020. At the end of the second quarter, the Company plans to reassess the impact of COVID-19 and the recovery trend of the global economy in the second half of the fiscal year and beyond.

(Assumptions announced on May 7, 2020)

Forecasts for the fiscal year ending March 31, 2021 and March 31, 2021 are based on the assumption that although the spread of COVID-19 would peak during the first half of the fiscal year ending March 31, 2021 and henceforth gradually end, ample amount of time would be required for the global economy to return to a recovery trend. Specifically, it is assumed that the recovery will be moderate even after the second half of the fiscal year ending March 31, 2021 and the impact of economic stagnation will remain until the fiscal year ending March 31, 2022.

(Notes to the description about future, other)

The descriptions about future such as the above forecasts are based upon available information and assumptions, as of the time of the announcement date, about uncertain factors which would influence future businesses. Actual results might be influenced by various factors in the future.

13

Marubeni Corporation

Consolidated Financial Results

2. Consolidated Financial Statements and Notes

(1) Consolidated Statements of Financial Position

Millions of yen

March 31

June 30

2020

2020

Variance

Assets

Current assets:

Cash and cash equivalents

522,523

664,942

142,419

Time deposits

140

246

106

Investment securities

67

27

(40)

Trade and loan receivables

1,056,938

973,667

(83,271)

Other current financial assets

315,861

228,030

(87,831)

Inventories

852,927

699,501

(153,426)

Assets held-for-sale

19,344

5,384

(13,960)

Other current assets

235,255

227,965

(7,290)

Total current assets

3,003,055

2,799,762

(203,293)

Non-current assets:

Investments in associates and joint ventures

1,601,298

1,623,663

22,365

Other investments

229,080

229,425

345

Trade and loan receivables

103,367

103,221

(146)

Other non-current financial assets

98,002

95,475

(2,527)

Property, plant and equipment

902,423

939,136

36,713

Intangible assets

288,992

286,832

(2,160)

Deferred tax assets

32,555

31,391

(1,164)

Other non-current assets

61,265

62,747

1,482

Total non-current assets

3,316,982

3,371,890

54,908

Total assets

6,320,037

6,171,652

(148,385)

14

Marubeni Corporation

Consolidated Financial Results

March 31

Millions of yen

June 30

Liabilities and Equity

2020

2020

Variance

Current liabilities:

Bonds and borrowings

620,020

726,384

106,364

Trade and other payables

1,085,616

868,837

(216,779)

Other current financial liabilities

367,971

319,929

(48,042)

Income tax payable

16,360

10,651

(5,709)

Liabilities directly associated with assets held-for-sale

417

464

47

Other current liabilities

370,566

316,321

{54,245}

Total current liabilities

2,460,950

2,242,586

(218,364)

Non-current liabilities:

Bond and borrowings

1,761,768

1,791,497

29,729

Trade and other payables

5,245

5,264

19

Other non-current financial liabilities

231,116

224,633

(6,483)

Accrued pension and retirement benefits

109,143

99,369

(9,774)

Deferred tax liabilities

63,073

83,520

20,447

Other non-current liabilities

84,142

86,344

2,202

Total non-current liabilities

2,254,487

2,290,627

36,140

Total liabilities

4,715,437

4,533,213

(182,224)

Equity:

Issued capital

262,686

262,686

Capital surplus

143,189

143,331

142

Other equity instruments

243,589

243,589

Treasury stock

(1,172)

(932)

240

Retained earnings

866,140

899,373

33,233

Other components of equity:

Gains (losses) on financial assets measured at

22,718

23,278

560

fair value through other comprehensive income

Foreign currency translation adjustments

41,247

51,736

10,489

Gains (losses) on cash flow hedges

{62,922}

{71,108}

(8,186)

Equity attributable to owners of the parent

1,515,475

1,551,953

36,478

Non-controlling interests

89,125

86,486

(2,639)

Total equity

1,604,600

1,638,439

33,839

Total liabilities and equity

6,320,037

6,171,652

(148,385)

15

Marubeni Corporation

Consolidated Financial Results

(2) Consolidated Statements of Comprehensive Income

Millions of yen

Three-month period ended June 30,

2019

2020

Variance

Ratio(%)

Revenue:

Sale of goods

1,860,228

1,558,876

(301,352)

(16.2)

Commissions on services and trading margins

47,418

28,680

(18,738)

(39.5)

Total revenue

1,907,646

1,587,556

(320,090)

(16.8)

Cost of goods sold

(1,715,392)

(1,408,783)

306,609

(17.9)

Gross trading profit

192,254

178,773

(13,481)

(7.0)

Other income (expenses) :

Selling, general and administrative expenses

(136,052)

(124,806)

11,246

(8.3)

Provision for doubtful accounts

(824)

(2,021)

(1,197)

145.3

Gains (losses) on property, plant and equipment

(11,830)

(96)

(99.2)

Impairment losses on property, plant and equipment

11,734

Gains (losses) on sales of property, plant and equipment

7

44

37

528.6

Other- net

1,206

(635)

(1,841)

Total other income (expenses)

(147,493)

(127,514)

19,979

(13.5)

Finance income (expenses):

Interest income

4,395

2,972

(1,423)

(32.4)

Interest expense

(13,610)

(7,617)

5,993

(44.0)

Dividend income

5,390

3,698

(1,692)

(31.4)

Gains (losses) on investment securities

2,817

(156)

(2,973)

Total finance income (expenses)

(1,008)

(1,103)

(95)

9.4

Share of profits of associates and joint ventures

38,787

24,540

(14,247)

(36.7)

Profit for the period before tax

82,540

74,696

(7,844)

(9.5)

Provision for income tax

(14,805)

(14,498)

307

(2.1)

Profit for the period

67,735

60,198

(7,537)

(11.1)

Profit for the period attributable to:

Owners of the parent

65,166

58,132

(7,034)

(10.8)

Non-controlling interests

2,569

2,066

(503)

(19.6)

Other comprehensive income:

Items that will not be retransferred to profit and loss for the period

Gains (losses) on financial assets measured at fair value

(24,759)

(1,986)

22,773

(92.0)

through other comprehensive income

Remeasurements of defined benefit pension plan

(520)

7,215

7,735

Changes in other comprehensive income of associates and

(345)

993

1,338

joint ventures

Items that will be retransferred to profit and loss for the period

Foreign currency translation adjustments

(60,263)

12,577

72,840

Gains (losses) on cash flow hedges

(1,857)

4,712

6,569

Changes in other comprehensive income of associates and

(10,529)

(15,383)

(4,854)

46.1

joint ventures

Other comprehensive income, net of tax

(98,273)

8,128

106,401

Total comprehensive income for the period

(30,538)

68,326

98,864

Attributable to:

66,464

99,014

Owners of the parent

(32,550)

Non-controlling interests

2,012

1,862

(150)

(7.5)

16

Marubeni Corporation

Consolidated Financial Statements

(3) Consolidated Statements of Changes in Equity

The Three-month Period Ended June 30, 2019 (April 1,2019 - June 30, 2019)

(Millions of yen)

Equity attributable to owners of the parent

Other components of equity

Gains (losses) on

Issued capital

Capital surplus

Other equity

Treasury stock

Retained earnings

financial assets

Foreign currency

measured at fair

instruments

translation

value through other

adjustments

comprehensive

income

Balance at beginning of period

262,686

139,898

243,589

(1,384)

1,163,472

71,912

131,178

Cumulative effects of new

(6,674)

accounting policy adopted

Profit for the period

65,166

Other comprehensive income

(25,349)

(61,494)

Purchases and sales of treasury

0

1

stock

Dividends payment

(29,504)

Equity transactions with non-

1,622

7

controlling interests and others

Transfer to retained earnings

(2,891)

2,603

Transfer to non-financial assets

and others

Balance at end of period

262,686

141,520

243,589

(1,383)

1,189,576

49,166

69,684

Equity attributable to owners of the parent

Other components of equity

Non-controlling

Total equity

Equity attributable to

Remeasurements of

interests

Gains (losses) on

Other components

defined benefit

owners of the parent

cash flow hedges

pension plan

of equity total

Balance at beginning of period

(33,610)

169,480

1,977,741

93,985

2,071,726

Cumulative effects of new

(6,674)

(6,674)

accounting policy adopted

Profit for the period

65,166

2,569

67,735

Other comprehensive income

(10,585)

(288)

(97,716)

(97,716)

(557)

(98,273)

Purchases and sales of treasury

1

1

stock

Dividends payment

(29,504)

(4,894)

(34,398)

Equity transactions with non-

1,629

(3,789)

(2,160)

controlling interests and others

Transfer to retained earnings

288

2,891

Transfer to non-financial assets

41

41

41

41

and others

Balance at end of period

(44,154)

74,696

1,910,684

87,314

1,997,998

17

Marubeni Corporation

Consolidated Financial Statements

The Three-month Period Ended June 30, 2020 (April 1,2020 - June 30, 2020)

(Millions of yen)

Equity attributable to owners of the parent

Other components of equity

Gains (losses) on

Issued capital

Capital surplus

Other equity

Treasury stock

Retained earnings

financial assets

Foreign currency

measured at fair

instruments

translation

value through other

adjustments

comprehensive

income

Balance at beginning of period

262,686

143,189

243,589

(1,172)

866,140

22,718

41,247

Profit for the period

58,132

Other comprehensive income

(995)

10,489

Purchases and sales of treasury

28

240

stock

Dividends payment

(30,378)

Equity transactions with non-

114

9

controlling interests and others

Transfer to retained earnings

5,470

1,555

Transfer to non-financial assets

and others

Balance at end of period

262,686

143,331

243,589

(932)

899,373

23,278

51,736

Equity attributable to owners of the parent

Other components of equity

Non-controlling

Total equity

Equity attributable to

Remeasurements of

interests

Gains (losses) on

Other components

defined benefit

owners of the parent

cash flow hedges

pension plan

of equity total

Balance at beginning of period

(62,922)

1,043

1,515,475

89,125

1,604,600

Profit for the period

58,132

2,066

60,198

Other comprehensive income

(8,187)

7,025

8,332

8,332

(204)

8,128

Purchases and sales of treasury

268

268

stock

Dividends payment

(30,378)

(5,139)

(35,517)

Equity transactions with non-

123

638

761

controlling interests and others

Transfer to retained earnings

(7,025)

(5,470)

Transfer to non-financial assets

1

1

1

1

and others

Balance at end of period

(71,108)

3,906

1,551,953

86,486

1,638,439

18

Marubeni Corporation

Consolidated Financial Statements

(4) Consolidated Statements of Cash Flows

Millions of l:'.en

Three-month period ended June 30,

Variance

2019

2020

Operating activities

Profit for the period

67,735

60,198

(7,537)

Adjustments to reconcile profit for the year to net cash provided by (used in)

operating activ1t1es:

Depreciation and amort1sat1on

39,743

34,484

(5,259)

Losses (Gains) on property, plant and equipment

11,823

52

(11,771)

Finance expenses (income)

1,008

1,103

95

Share of profits of associates and joint ventures

(38,787)

(24,540)

14,247

Income taxes

14,805

14,498

(307)

Changes in notes accounts receivable

13,277

101,848

88,571

Changes in inventories

127,312

151,009

23,697

Changes in notes and trade accounts payable

(145,538)

(214,934)

(69,396)

Other-net

(77,306)

(11,606)

65,700

Interest received

3,687

2,437

(1,250)

Interest paid

(13,956)

(7,868)

6,088

Dividends received

33,172

30,457

(2,715)

Income taxes paid

(23,433)

(18,972)

4,461

Net cash provided by/ used in operating activities

13,542

118,166

104,624

Investing activities

Net decrease (increase) in time deposits

11

(107)

(118)

Proceeds from sale of property, plant and equipment

1,823

607

(1,216)

Collection of loans receivable

3,171

1,202

(1,969)

Proceeds from sale of subsidiaries, net of cash and cash equivalents disposed of

112

(26)

(138)

Proceeds from sale of investments in associates and joint ventures, and other investments

18,838

18,470

(368)

Purchase of property, plant and equipment

(24,960)

(28,777)

(3,817)

Purchase of investment property

(12)

(1)

11

Loans provided to customers

(7,363)

(24,090)

(16,727)

Acquisition of subsidiaries, net of cash and cash equivalents acquired

(5,374)

(18,800)

(13,426)

Purchase of investments in associates and joint ventures, and other investments

(15,450)

(32,123)

(16,673)

Net cash provided

by/used in investing activities

(29,204)

(83,645)

(54,441)

Financing activities

Net increase (decrease) in short-term borrowings

77,155

160,324

83,169

Proceeds from long-term bonds and borrowings

81,264

90,476

9,212

Repayments of long-term bonds and borrowings

(82,525)

(108,174)

(25,649)

Dividends paid to owners of the parent

(29,504)

(30,378)

(874)

Net cash outflows on purchases and sales of

treasury stock

(1)

(1)

Capital contribution from non-controlling interests

67

20

(47)

Acquisition of equity portion of subs1d1ary from non-controlling interests

(5,062)

(242)

4,820

Other

(4,507)

(4,238)

269

Net cash provided by/used in financing activities

36,887

107,787

70,900

Effect of exchange rate changes on cash and cash equivalents

(5,395)

111

5,506

Net increase (decrease) in cash and cash equivalents

15,830

142,419

126,589

Cash and cash equivalents at beginning of period

509,288

522,523

13,235

Cash and cash equivalents at end of period

525,118

664,942

139,824

19

Marubeni Corporation

Consolidated Financial Results

(5) Notes Related to Going Concern Assumptions

None

(6) Segment Information

The Three-Month Period End ed June 30, 2019 (April 1,2019 - June 30, 2019)

Millions of yen

ICT & Real

Forest

Agri

Metals &

Lifestyle

Estate

Food

Chemicals

Energy

Mineral

Products

Business

Business

Resources

Revenue

35,666

47,367

70,017

467,683

859,463

106,937

115,977

92,387

Gross trading profit (loss)

4,904

26,912

9,269

24,647

58,334

7,840

12,263

9,315

Operating profit (loss)

335

4,671

4,382

7,148

22,655

2,175

3,847

4,674

Share of profits (losses) of associates and joint ventures

161

499

(1)

1,946

501

253

231

14,710

Profit (loss) attributable to owners of the parent

330

3,649

2,556

8,508

15,208

1,584

(5,026)

17,611

Segment assets

as of March 31, 2020)

102,770

483,014

266,786

679,664

1,164,784

267,098

572,001

758,594

Finance &

Construction,

Next

Power

Infrastructure

Aerospace &

Industrial

Generation

Leasing

Other

Consolidated

Business

Project

Ship

Machinary &

Business

Business

Mobility

Development

Revenue

33,978

4,673

18,365

6,429

79,092

1,194

(31,582)

1,907,646

Gross trading profit (loss)

6,282

2,582

5,823

3,040

21,963

866

(1,786)

192,254

Operating profit (loss)

(2,140)

(1,066)

2,890

385

5,506

(3)

(81)

55,378

Share of profits (losses) of associates and joint ventures

8,160

4,356

1,017

5,449

1,457

50

(2)

38,787

Profit (loss) attributable to owners of the parent

5,165

2,551

3,111

5,672

6,329

(106)

(1,976)

65,166

Segment assets

as of March 31, 2020)

704,279

236,751

274,961

307,267

359,864

13,906

128,298

6,320,037

The Three-Month Period Ended June 30, 2020 (April 1,2020 - June 30, 2020)

Millions of yen

ICT & Real

Forest

Agri

Metals &

Lifestyle

Estate

Food

Chemicals

Energy

Mineral

Products

Business

Business

Resources

Revenue

26,431

83,967

56,510

326,592

794,114

87,289

80,638

63,723

Gross trading profit (loss)

3,763

28,203

6,653

30,996

57,456

10,472

12,234

4,458

Operating profit (loss)

(326)

8,134

1,045

14,500

21,097

5,358

4,556

150

Share of profits (losses) of associates and joint ventures

(154)

6

(534)

2,285

441

371

41

6,903

Profit (loss) attributable to owners of the parent

(274)

5,612

(221)

11,250

15,341

4,405

4,276

7,024

Segment assets

as of June 30, 2020)

100,417

455,442

284,544

643,653

1,031,766

272,884

486,006

761,557

Finance &

Construction,

Next

Power

Infrastructure

Aerospace &

Industrial

Generation

Leasing

Other

Consolidated

Business

Project

Ship

Machinary &

Business

Business

Mobility

Development

Revenue

28,982

4,868

12,109

1,121

54,429

793

(34,010)

1,587,556

Gross trading profit (loss)

4,628

2,537

2,823

492

15,936

470

(2,348)

178,773

Operating profit (loss)

(3,655)

(1,044)

361

(1,366)

1,208

(543)

2,471

51,946

Share of profits (losses) of associates and joint ventures

7,707

2,163

1,665

2,815

846

(14)

(1)

24,540

Profit (loss) attributable to owners of the parent

4,609

1,495

1,521

1,966

2,071

(495)

(448)

58,132

Segment assets

as of June 30, 2020)

692,582

233,931

268,284

312,262

340,376

14,957

272,991

6,171,652

(Note 1) From the FYE 3/2021, the former operating segments of "Plant" and "Construction, Auto & Industrial Machinery" are renamed as "Infrastructure Project" and "Construction, Industrial Machinery

  • Mobility" respectively, and a part of "Plant" has been incorporated into "Finance & Leasing Business", parts of "Plant" and "Other" have been incorporated into "Next Generation Business Development", a part of "Next Generation Business Development" has been incorporated into "Other".

(Note 2) In conjunction with these revisions, operating segment information for the year-earlier period and March 31, 2020 has been reclassified.

(Note 3) "Operating profit (loss)" is presented in accordance with Japanese accounting practice for investors' convenience and is not required by IFRS. "Operating profit (loss)" is the sum of "Gross trading profit" and

"Selling, general and administrative expenses" including "Provision for doubtful accounts". (Note 4) Inter-segment transactions are generally priced in accordance with the prevailing market prices.

(Note 5) "Other" includes headquarters expenses that are not allocated to the operating segments and inter segment elimination,

cash and cash equivalents related to finanicng held for general corporate purposes that are not allocated to the operating segments.

20

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Marubeni Corporation published this content on 04 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2020 02:06:07 UTC