2024.03

Consolidated Financial Results

FYE 3/2024

May 2, 2024 TSE Code: 8002

Disclaimer Regarding Forward Looking Statements and Original Language

This material contains forward-looking statements about the future performance, events or management plans of Marubeni Corporation and its Group companies (the Company) based on the available information, certain assumptions and expectations at the point of disclosure, of which many are beyond the Company's control. These are subject to a number of risks, uncertainties and factors, including, but not limited to, economic and financial conditions, factors that may affect the level of demand and financial performance of the major industries and customers we serve, interest rates and currency fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries and regions, litigation claims, changes in laws, regulations and tax rules, and other factors. Actual results, performances and achievements may differ materially from those described explicitly or implicitly in the relevant forward-looking statements. The Company has no responsibility for any possible damages arising from the use of information on this material, nor does the Company have any obligation to update these statements, information, future events or otherwise.

This material is an English language translation of the materials originally written in Japanese. In case of discrepancies, the Japanese version is authoritative and universally valid.

01 Key Factors of FYE 3/2024

  • Net profit was ¥471.4bn (-¥71.6bnYOY) surpassing the full-year forecast of ¥450.0bn (announced on Feb-2-2024)
  • Adjusted net profit was ¥467.0bn (-¥59.0bnYOY) exceeding the range of ¥400.0 to ¥450.0bn of underlying adjusted net profit

Breakdown of adjusted net profit:

•

Non-resources

¥307.0bn (-¥14.0bn YOY): Increased in Power, Food I, etc., decreased in Food II, Chemicals, etc.

•

Resources

¥152.0bn (-¥47.0bn YOY): Decreased in the coking coal business and others, due to lower commodity

prices

Non-resources generated around ¥300.0bn in adjusted net profit for the third consecutive year

  • Core operating cash flow was +¥548.0bn (-¥36.2bnYOY) remaining at a high level
  • Annual dividend per share is planned to be increased to ¥85.0 (an increase by +¥2.0 from ¥83.0, the previous forecast announced on Feb-2-2024)

（billion yen)

FYE 3/2023

FYE 3/2024

Change

Net profit

543.0

471.4

-71.6(-13%)

Adjusted net profit

526.0

467.0

-59.0(-11%)

Core operating cash flow

+584.2

+548.0

-36.2(-6%)

Free cash flow after shareholder distributions

+572.8

+24.9

-547.9(-96%)

excluding changes in working capital and others

）

（

ROE

22.4%

15.2%

-7.2 points

Net DE ratio

0.52 times

0.55 times

+0.03 points

Dividend per share (annual)

78.0 yen

85.0 yen

+7.0 yen

interim(paid) 41.5 yen,

year-end(plan) 43.5 yen

  • Adjusted net profit: net profit excluding one-time items, shown in an approximate figure. For one-time items, please refer to P3 of "IR Supplementary Information"
  • Core operating cash flow: operating cash flow excluding net increase/decrease in working capital and others
  • "Equity attributable to owners of the parent" is described as "shareholders' equity" in this material

1

02 Full-year Forecast for FYE 3/2025

  • Net profit: ¥480.0bn (+¥8.6bn YOY) anticipating profit increase
  • Adjusted net profit: ¥460.0bn (-¥7.0bn YOY)
    • Adjusted net profit for non-resources: ¥321.0bn (+¥14.0bn YOY) aiming to achieve a steady profit growth
    • Net profit forecast includes around -¥20.0bn of cushion to prepare for a contingency
  • Core operating cash flow: +¥570.0bn (+¥22.0bn YOY) anticipating higher cash generation capacity
  • Annual dividend: ¥90.0 per share (forecast), a +¥5.0 YOY increase, based on the progress in strengthening of earnings base
  • Share buybacks up to ¥50.0bn using free cash have been resolved (estimated total payout ratio: 42%)

（billion yen)

FYE 3/2024

FYE 3/2025 Forecast

Net profit

471.4

480.0

Adjusted net profit

467.0

460.0

Core operating cash flow

+548.0

+570.0

Free cash flow after shareholder distributions

+24.9

-140.0

excluding changes in working capital and others

）

（

ROE

15.2%

around 15%

Net DE ratio

0.55 times

～

around 0.6 0.7 times

Dividend per share (annual)

85.0 yen (plan)

90.0 yen (forecast)

Change

+8.6 (+2%)

-7.0(-1%)

+22.0 (+4%)

-164.9

ー

ー

+5.0 yen

2

03 Net Profit and Adjusted Net Profit

Net Profit

（billion yen)

500

400

300

200

100

0

Non-resources

Resources Consolidated total

223.3

424.3

543.0

471.4

480.0

190.8

162.9

189.0

197.5

64.1

226.9

344.3

288.5

325.0

156.5

2023年度

FYE3/2025Forecast

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024024

（announced on May-2-2024)

Adjusted Net Profit

Non-resources Resources

Consolidated total

（billion yen)

243.0

489.0

526.0

467.0

460.0

500

400

300

200

100

0

197.0

199.0

152.0

147.0

66.0

296.0

321.0

307.0

321.0

178.0

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE3/2025Forecast

* Resources:

Total of "Energy" and "Metals & Mineral Resources" excluding "Steel Products Dept."

Other:

Total of "Next Generation Business Development", "Next Generation Corporate

Non-resources:

Development" and "Other"

Other than the above

（announced on May-2-2024)

* "Other"

(billion y en)

FYE 3/2021

FYE 3/2022

FYE 3/2023

FYE 3/2024

FYE 3/2025 Forecast

announced on May-2-2024

Net profit

2.7

-0.0

7.9

20.0

-34.0

Adjusted net profit

-1.0

-4.0

6.0

8.0

-8.0

3

04 Adjusted Net Profit Forecast for FYE 3/2025 changes from FYE 3/2024

  • Adjusted net profit forecast for FYE 3/2025 is ¥460.0bn (-¥7.0bn YOY), staying at the same level as FYE 3/2024
  • Breakdown of the -¥7.0bn changes: non-resources +¥14.0bn, resources -¥5.0bn, others -¥16.0bn (deterioration in interest expense-net, etc.)
  • The forecast of ¥321.0bn in adjusted net profit for non-resources is on the same level as the record high in the FYE 3/2023. Aim to renew the record

Adjusted Net Profit

Non-resources Resources

Consolidated total

（billion yen)

467.0

152.0

307.0

-5.0

+14.0

( - ) Coking coal business, Roy Hill iron ore project (lower market prices, etc.)

( + ) Copper mine business in Chile (higher copper price, additional interests acquired in Los Pelambres mine, etc.)

( + ) Organic growths in Agri Business, Construction, Industrial Machinery & Mobility, etc.

Improvement in profitability in Chemicals, Forest Products, etc. and others

( - ) Lower margin due mainly to changes in business environment

  • IPP in Singapore
  • SmartestEnergy
  • Marubeni-ItochuSteel Inc.

460.0

147.0

321.0

FYE 3/2024

（full-year average USD/JPY: ¥144.62）

FYE 3/2025 Forecast

（full-year average USD/JPY: ¥140.00）

4

05 Profit by Segment FYE 3/2023 vs FYE 3/2024

Net Profit

FYE 3/2023

FYE 3/2024

（billion yen)

199.4

20

60

163.5

76.9

42.7 41.5

47.3

43.7 43.9

40

38.7 39.2 40.0

28.2 26.4

27.1

30

17.0

18.0

23.8

20

9.9

14.3

16.9

6.8

9.5

7.8

11.6

7.0

8.8

10

0.3

0

-14.2

-5.1

-2.0

-3.1

-10

-9.4

（

Adjusted Net Profit

201.0

FYE 3/2023

FYE 3/2024

billion yen)

155.0

60.0

200

54.0

60

39.0 37.0

46.0

40.0 39.0

40

36.0

30

25.0

31.0 30.0

27.0

20

17.0

19.0

23.0

14.0

10

9.0

10.0

10.08.0

12.0

5.0 5.0

8.0

9.0

9.0

-1.0-2.0

0

-2.0

-3.0

-10

IT

Agri

Forest

Metals &

Aerospace

Finance,

Construction,

Next

Next

Infrastructure

Leasing &

Industrial

Generation

Generation

Lifestyle

Food I

Food II

Chemicals

Mineral Energy Power

Solutions

Business

Products

Project

& Ship

Real Estate

Machinery &

Business

Corporate

Resources

Business

Mobility

Development Development

Consumer Products

Materials

Energy & Infrastructure Solution

Transportation & Industrial

CDIO

Machinery, Financial Business

  • Based on the FYE 3/2024 segments. Operating segment information for FYE 3/2023 has been reclassified due to organizational changes. Please refer to P2 of "IR Supplementary Information" for the details

5

06 Profit Forecast for FYE 3/2025 by Segment

Changes from FYE 3/2024

Net Profit

FYE 3/2024 Actual

FYE 3/2025 Forecast

（billion yen)

163.5

149.0

※1

160

53.0

44.0

75.0

47.3

40

41.5

39.2

43.0

43.9

26.4 27.0

27.1

32.0

30

17.0 17.0 18.0

22.0

16.9

20

11.0

8.0

13.0

11.0

9.9

9.0

7.8

10

7.0

0

0.3

1.0

-3.1

-

-10

3.0

-14.2

（

Adjusted Net Profit

FYE 3/2024 Actual

FYE 3/2025 Forecast

billion yen)

155.0

149.0

160

60.0

48.0

43.0

39.0

39.0

40

37.0

36.0

33.0

30.0 32.0

32.0

30

17.0 17.0 19.0

22.0

27.0

20

10.0

11.0

10.0

8.0

8.0

8.0

13.0

9.0

11.0

10

5.0

-2.0

0.0

0

-10

-3.0

-

3.0

Metals &

Finance,

Construction,

Next

Next

Forest

IT

Agri

Infrastructure

Aerospace

Leasing &

Lif esty le

Food I

Food II

Chemicals Mineral

Energy

Power

Industrial

Generation

Generation

Products

Solutions

Business

Project

& Ship

Rel Estate

Machinery &

Business

Corporate

Resources

Business

Mobility

Development

Development

Consumer Products

Food & Agri

Materials

Energy & Inf rastructure Solution

Transportation & Industrial

CDIO

Machinery , Financial Business

* Based on the FYE 3/2025 segments. Operating segment information for FYE 3/2024 has been reclassified due to organizational changes. Please refer to P2 of "IR Supplementary Information" for the details

※1 Including the gains that are to be realized on the foreign currency translation adjustments due to the deconsolidation of the investment management company related to the LNG business. (approx. ¥40.0bn, expected in H2 FYE 3/2025)

6

07 Cash Flow Generation/Shareholders' Equity/Net Interest-Bearing Debt

Core Operating Cash Flow

（billion yen）

584.2

570.0

600

570.5

548.0

369.6

400

200

0

FYE 3/2022

FYE 3/2023

3/20

FYE 3/2021

FYE3/2025 Forecast

FYE 3/2024

（announced on May-2-2024)

Shareholders' Equity, Net Interest-Bearing Debt and Net DE Ratio

(billion yen)

Shareholders' equity

3,459.7*2

Net interest-bearing debt

around 3,300.0

Net DE ratio *1

2,877.7

3,000

2,242.2

around 2,200.0

*2

1.5

2,000

1,814.8 1,687.9

1,860.0

1,902.4

1,483.1

0.83 times

around 0.6〜0.7 times

1,000

0.52 times

0.55 times

0.93 times

0

Mar-31-2021

Mar-31-2022

Mar-31-2023

-31-

-

0.4

Mar-31-2024

Mar-31-2025Forecast

（announced on May-2-2024)

*1 For FYE 3/2023 and beyond, the denominator to calculate net DE ratio has been changed from "total equity" to "shareholders' equity." Net DE ratio for previous fiscal years have been re-presented accordingly

*2 Optional repayment of ¥150.0bn of the perpetual subordinated loan was completed on Aug-16-2023. (Shareholders' equity decreased and net interest-bearing debt increased respectively, by the same amount)

7

08 Capital Allocation FYE 3/2024 Actual / FYE 3/2025 Forecast

  • In FYE 3/2025, we will continue to focus on growth investments for profit growth and enhancing shareholder returns, while emphasizing financial and investment discipline
  • Allocation plan for free cash, the surplus from accumulated management resources (Mar-31-2025 forecast: approx. ¥580.0bn)
    ① ¥90.0bn: growth investments for profit growth (new investments, CAPEX and others)

②¥50.0bn: shareholder returns through share buybacks

The remaining of approx. ¥440.0bn will be internally reserved. Allocation for growth investments and shareholder returns will be discussed based on the situations of balance sheets and cash flows

Capital Allocation *1

(billion yen)

FYE 3/2024 Actual

Term-end free cash: approx. ¥580.0bn

FYE 3/2025 Forecast

(before free cash allocation)

Term-end free cash forecast

before allocation: approx. ¥580.0bn

Additional allocation

Divestments 107.2

Core operating CF

548.0

Shareholder distributions 162.7

New investments, CAPEX and others 458.1

Divestments 70.0

Core operating CF

570.0

Shareholder distributions 150.0

New investments, CAPEX and others 490.0

¥50.0bn:

Shareholder returns

through share buybacks

¥90.0bn:

Growth investments

Term-end free cash forecast

after allocation:

approx. ¥440.0bn (internal reserves)

Cash In-flow

Cash Out-flow

Cash In-flow

Cash Out-flow

*1 Excluding changes in working capital and others. Figures for shareholder distributions are aggregated in the fiscal year to which the profit i.e. the source of funds is attributed, and are different from cash flow

Share buybacks of ¥50.0bn decided this time is attributed to FYE 3/2025 as it will be funded by free cash

8

09 New Investments and Divestments Main Items for FYE 3/2024

（after free cash allocation)

*1

FYE 3/2025

(billion yen)

FYE 3/2024

FYE 3/2024 Main items

Forecast

Horizon 1

Horizon 2

Horizon 3

（announced on

May-2-2024)

New Investments

- 458.1

- 154.4

- 207.2

- 96.4

- 580.0

+ CAPEX and others *2

Horizon 2

・TOB of ARTERIA Networks approx.-¥16.0bn *3

・Aircraft surplus parts distributor (DASI, USA)

・Production outsourcing and marketing of non-ferrous metal products

(Pan Pacific Copper, Japan)

Distribution

・Automotive aftermarket business (MAIHOIII related, USA)

- 192.5

- 98.3

- 94.2

・Agri-inputs related business (Helena related, USA)

Business

・Agri-inputs related business (Adubos Real related, Brazil)

New

Horizon 3

- 290.0

・Manufacturing and sales of spices and seasonings (Euroma, Netherland)

- 400.0

Invest-

・Manufacturer and supplier of food ingredients and packaged food products

ments

(AIG, Vietnam)

・Healthcare turnkey solutions provider (Lunatus, UAE)

・Manufacturer of medical consumables (One-ject, Indonesia)

Finance Business

- 30.1

- 27.8

- 2.3

・Aircraft leasing business (Aircastle, USA)

Stable Earnings-

- 33.5

- 33.5

-

・Power generation business (renewable energy, etc.)

Type Business

・Overseas water/wastewater services and IWP projects

Natural Resource

- 33.9

- 33.9

-

・Acquisition of additional interest in Los Pelambres Copper Mine in Chile

Investments

excluding

CAPEX Natural Resource

- 168.1

- 154.4

- 154.4

・Agri-inputs related business (Helena, USA) *4

- 180.0

and

Investments

others

Natural Resource

- 13.7

- 0.0

- 13.6

Investments

Divestments

+107.2

+70.0

Total

- 350.9

- 510.0

*1 Horizon 1: improvement of existing businesses, Horizon 2: pursuit of strategies in existing business domains, Horizon 3: new business models and growth domains currently not yet focused on

*2 CAPEX and others: additional capital expenditure and others in order to maintain and improve values of existing investments and loans

*3 TOB of ARTERIA Networks: presented as a part of new investment on this material for explanatory convenience. It is actually an additional investment in a consolidated subsidiary, and the amount of cash outflow is included in the financing activities on the consolidated statement of cash flows. Net cash used in the investing activities on the consolidated statement of cash flows is -¥334.4bn for FYE 3/2024, the total of new investments is -¥273.5bn for FYE 3/2024. The figures on the above table do not match either of those.

*4 Including approximately -¥9.0bn of short-term agriculture loan which Helena (USA) provided to customers

9

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Marubeni Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 11:42:02 UTC.