Medium-term Management Plan 2023 ~Start of the Next Decade ~
Caution regarding Forward-looking Statements
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. Actual results may differ materially based on various factors including the timing at which the COVID-19 pandemic ends; changes in economic conditions in key markets, both in and outside of Japan; and exchange rate movements. The Company will provide timely disclosure of any material changes, events, or other relevant issues.
April 30, 2021 Sojitz Corporation
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Copyright © Sojitz Corporation 2021
Index
-
Review of
Medium-term Management Plan* 2020
2. Medium-term Management Plan 2023
~Start of the Next Decade ~
- Appendix
*Referred to as MTP
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Copyright © Sojitz Corporation 2021
1. Review of
Medium-term Management Plan 2020
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Copyright © Sojitz Corporation 2021
Review of MTP 2020 - Summary of financial targets
- Three-yearaverage ROE reached approx. 9%,but failed to accomplish FY2020 targets such as profit for the year, ROA, and ROE due to impacts of COVID-19 pandemic
- Continued disciplined financial management and achieved Net DER and core cash flow targets
- Maintained consistent and stable shareholder returns with a payout ratio of 30% or above
Profit of the year・ROE・ROA | Investment plan | NET DER | ||||||||||||||
Final | Approx. ¥300.0 bn | Results | 1.5x or lower | Results | ||||||||||||
¥75.0 bn or more | in total | △ | ○ | |||||||||||||
Year | Results | |||||||||||||||
Target | ||||||||||||||||
× | ||||||||||||||||
Dividends・ | ||||||||||||||||
of | ROA 3% or above | Core cash flow | ||||||||||||||
MTP | Consolidated payout ratio | |||||||||||||||
2020 | ROE 10% or above | |||||||||||||||
Positive during | Results | Approx. 30% | Results | |||||||||||||
MTP 2020 period | ○ | ○ | ||||||||||||||
Profit for the year ・ROE・ROA | Investments and loans・Core cash flow | Dividend・Consolidated payout ratio | ||||||||||||||
Profit of the year | |
(Billion JPY) | ROA |
ROE | |
70.4 | ||
60.8 | ||
11.7% | 10.2% | Average ROE: |
about 9% | ||
27.0 | ||
3% | 4.5% | |
2.7% | ||
1.2% |
Dividend Consolidated payout ratio
*Core cash flow showing | ||
cumulative results | ¥ 17 | ¥ 17 |
¥ 10
FY2018 FY2019 FY2020
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Copyright © Sojitz Corporation 2021
Review of MTP 2020
- Investments earnings contributions
MTP 2017
(FY2020 Results)
The amount of | Approx. |
the investments | ¥315.0bn |
and loans | |
Outstanding | Approx. |
investments | ¥130.0bn |
and loans | |
ROI Approx. 6.7%
(Initial forecast Approx.
7.5%)
Accumulative three | |||||||
FY2018 Results | FY2019 Results | FY2020 Results | years earnings | ||||
contributions | |||||||
Approx. ¥6.0bn | Approx. ¥13.5bn | Approx. ¥9.0bn | Approx. ¥29.0bn | ||||
(¥6.0bn at MTP | (¥8.0bn at MTP | (¥12.0bn at MTP | (¥26.0bn at MTP | ||||
announcement) | |||||||
announcement) | announcement) | announcement ) | |||||
avg. ROI Approx. 6.4% | |||||||
Main | ● Renewable energy businesses ● Hospital project in Turkey | ||||||
Businesses | ● Automobile dealership business | etc. |
- Earnings contributions realized generally as planned despite challenging business environment
・Differences in the timing of earnings contribution from plans due to certain asset replacement projects and ahead-of-schedule profit generation
(FY2020 Results)
Amount of the | Approx. | |
investments | ¥260.0bn | |
and loans | ||
Outstanding | Approx. | |
investments | ¥206.0bn | |
and loans | ||
ROI Approx. 0.9%
(Initial forecast Approx.
4.3%)
MTP 2020
Accumulative three | ||||||||||
FY2018 Results | FY2019 Results | FY2020 Results | years earnings | |||||||
contributions | ||||||||||
Approx. ¥2.0bn | Approx. ¥0.5bn | Approx. ¥2.0bn | Approx. ¥4.0bn | |||||||
(¥2.0bn at MTP | (¥6.0bn at MTP | (¥10.0bn at MTP | (¥18.0bn at MTP | |||||||
announcement) | ||||||||||
announcement) | announcement) | announcement) | (ROI Approx.0.7%) | |||||||
Main | ||||||||||
● Coking coal business in Australia | ● Natural gas-fired power plant business in the U.S. | |||||||||
Businesses | ● Paper manufacturer in Vietnam | etc. |
- Business with steady earnings contributions
- Natural gas-fired power plant business
- Divergence from original business plan → Coking coal business in Australia and Paper manufacturer in Vietnam
・Delays in earnings contributions due to deterioration of market conditions and COVID-19 pandemic, measures to bolster operating frameworks and sales activities underway
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Sojitz Corporation published this content on 13 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2021 08:17:01 UTC.