Sojitz Corporation

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Latest Financial Results and Full Year Forecast

Consolidated Financial Results for the First Quarter Ended June 30, 2021

In the three-month period ended June 30, 2021, economic recovery was witnessed in certain regions as a result of efforts for responding to the COVID-19 pandemic, including vaccine rollouts and substantial financial easing and government finance measures taken in developed countries. At the same time, there is a need for ongoing caution with regard to growing credit costs and the deterioration of performance at companies in tourism, service, and other industries.

The Company’s revenue for the three-month period ended June 30, 2021, was up year on year due to higher revenue in the Metals, Mineral Resources & Recycling Division, a result of higher prices for coal and precious metals; in the Chemicals Division, a result of higher methanol prices and growth in plastic resin transactions; and in the Automotive Division, a result of increased sales volumes in overseas automotive businesses.
Despite the increase in selling, general and administrative expenses along with a rise in non-personnel expenses, profit for the period (attributable to owners of the Company) increased year on year following higher gross profit and a rise in share of profit of investments accounted for using the equity method attributable to earnings growth at steel operating company.

moreFinancial Results Materials

(Billions of Yen)

FY2020 1Q Results FY2021 1Q Results Difference
Revenue 349.3 492.8 +143.5
Gross Profit 39.0 56.4 +17.4
Profit for the period attributable to owners of the Company 2.4 16.9 +14.5

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

Trends in Financial Data(EXCEL)

Segment Performance [Profit for the period attributable to owners of the Company]

Segment Performance [Profit for the Period (Attributable to owners of the Company)]

(Billions of Yen)

FY2020 1Q FY2021 1Q Difference
Automotive (1.8) 1.1 +2.9
Aerospace & Transportation Project (0.3) 0.1 +0.4
Infrastructure & Healthcare 2.2 0.8 (1.4)
Metals, Mineral Resources & Recycling (2.0) 6.0 +8.0
Chemicals 0.0 4.0 +4.0
Consumer Industry & Agriculture Business 2.1 3.0 +0.9
Retail & Consumer Service 0.1 0.6 +0.5
Others 2.1 1.3 (0.8)

Main factors behind difference

Automotive ¥1.1 billion (up ¥2.9 billion YoY)
Increased due to higher sales volumes in overseas automobile transactions
Aerospace & Transportation Project ¥0.1 billion (up ¥0.4 billion YoY)
Recovery of shipping market conditions
Infrastructure & Healthcare ¥0.8 billion (down ¥(1.4) billion YoY)
Decreased due to the rebound from asset replacement in power generation businesses recorded in the previous equivalent period
Metals, Mineral Resources & Recycling ¥6.0 billion (up ¥8.0 billion YoY)
Increased due to higher profit from steel operating company with recovery of steel demand and recovery in coal market conditions
Chemicals ¥4.0 billion (up ¥4.0 billion YoY)
Increased due to recovery from the drop in methanol prices and higher transaction volumes of plastic resins
Consumer Industry & Agriculture Business ¥3.0 billion (up ¥0.9 billion YoY)
Increased due to higher sales volumes in overseas fertilizer businesses
Retail & Consumer Service ¥0.6 billion (up ¥0.5 billion YoY)
Increased due to higher sales volumes in food-related company
Others ¥1.3 billion (down ¥(0.8) billion YoY)

Segment Information(PDF)

Commodity Prices and Exchange Rates

FY2020 Results
(Apr.-Jun.'20 Avg.)
FY2021
Assumption
(Annual Avg.)
FY2021 Results
(Apr.-Jun.'21 Avg.)
Coking Coal *1 US$119.0 / t US$ 127.5 / t US$139.1 / t
Thermal Coal *1 US$54.4 / t US$ 80.0 / t US$109.0 / t
Crude oil (Brent) US$33.4 / bbl US$ 50.0 / bbl US$69.1 / bbl
Exchange rate *2 ¥107.4 / US$ ¥108.0 / US$ ¥109.8 / US$
*1 : Coal prices are based on standard market prices and therefore differ from the Company’s selling prices.
*2 : Impact of fluctuations in the exchange rate on earnings: ¥1/US$ change alters gross profit by approx. ¥ 0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥1.5 billion annually.

Full Year Forecast of Fiscal Year Ending March 31, 2022

(Billions of Yen)

FY2020
Results
FY2021
Forecast
Difference
Gross Profit 188.1  220.0  +31.9 
Profit for the year attributable to owners of the Company
27.0  53.0  +26.0 

FY2021 Profit for the Year Forecast by Segment

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.

*Dividends per share is the latest dividend forecast.

This Website was created for the purpose of providing information relating to Sojitz corporation. It was not created to solicit investors to buy or sell Sojitz Corporation's stock. The final decision and responsibility for investments rests solely with the user of this Website and its content.

This website contains forward-looking statements about future performance, events or management plans of the Company based on the available information, certain assumptions and expectation 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 rate and currency fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries and regions, litigations claims, change 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 website.

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