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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Index

  1. Review of
    Medium-term Management Plan* 2020

2. Medium-term Management Plan 2023

  1. Start of the Next Decade

  2. Appendix

*Referred to as MTP

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1. Review of

Medium-term Management Plan 2020

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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 yearROEROA

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 ROEROA

Investments and loansCore cash flow

DividendConsolidated 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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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.