Sojitz Corporation

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Latest Financial Results and Full Year Forecast

Consolidated Financial Results for the First Half of the Year Ended September 30, 2021

In the six-month period ended September 30, 2021, economic recovery was seen in certain regions amid a global decline in the number of COVID-19 cases. Governments in the United States and Europe are transitioning away from large-scale government finance measures for responding to the pandemic and toward policies based on a longer-term perspective. Conversely, certain emerging countries are moving to raise their policy interest rates. This situation is creating a need for ongoing monitoring of economic trends.

The Company’s revenue for the six-month period ended September 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 growth in plastic resin transactions and higher methanol prices; and in the Automotive Division, a result of increased sales volumes in overseas automotive businesses.

Despite the increase in SG&A 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 a steel operating company.

moreFinancial Results Materials

(BN JPY)

FY2020 H1 FY2021 H1 Difference
Revenue 744.6 1,000.7 +256.1
Gross profit 84.5 117.7 +33.2
Profit for the period attributable to owners of the Company 9.1 39.4 +30.3

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)]

(BN JPY)

FY2020 H1 FY2021 H1 Difference
Automotive (1.5) 3.4 +4.9
Aerospace & Transportation Project (0.3) 1.4 +1.7
Infrastructure & Healthcare 2.6 1.2 (1.4)
Metals, Mineral Resources & Recycling (2.0) 16.2 +18.2
Chemicals 1.3 6.8 +5.5
Consumer Industry & Agriculture Business 4.0 4.8 +0.8
Retail & Consumer Service 2.7 1.9 (0.8)
Others 2.3 3.7 +1.4

Main factors behind the difference

Automotive ¥3.4 billion (up ¥4.9 bn YoY)
Increased due to higher sales volumes in overseas automobile operations
Aerospace & Transportation Project ¥1.4 billion (up ¥1.7 bn YoY)
Increased due to higher transaction volumes in aircraft- and marine vessel-related businesses
Infrastructure & Healthcare ¥1.2 billion (down ¥(1.4) bn YoY)
Decreased due to absence of gains from assets replacement in power generation businesses recorded in the previous equivalent period
Metals, Mineral Resources & Recycling ¥16.2 billion (up ¥18.2 bn YoY)
Increased due to higher profit from steel operating company thanks to increased steel demand as well as higher profit from recovery of coal market conditions
Chemicals ¥6.8 billion (up ¥5.5 bn YoY)
Increased due to recovery of methanol prices and higher transaction volumes of plastic resin
Consumer Industry & Agriculture Business ¥4.8 billion (up ¥0.8 bn YoY)
Increased due to rise in market conditions of imported plywood
Retail & Consumer Service ¥1.9 billion (down ¥(0.8) bn YoY)
Decreased, despite higher sales volumes of food-related company, due to absence of gains from sale of shopping mall recorded in the previous equivalent period
Others ¥3.7 billion (up ¥1.4 bn YoY)

Segment Information(PDF)

Commodity Prices and Exchange Rates

FY20 Results
(Apr.-Sep.'20 Avg.)
FY21 Assumption
(Annual Avg.)
FY21 Results
(Apr.-Sep.'21 Avg.)
Latest Data
(As of Oct. 27, 2021)
FY21 Revised
Assumption for
Second Half of the Year
(Nov. 2, 2021)
Coking coal
*1
US$117.4 / t US$ 127.5 / t US$199.5 / t US$398.0 / t US$200.0 / t
Thermal coal
*1
US$53.1 / t US$ 80.0 / t US$138.3 / t US$195.2 / t US$110.0 / t
Crude oil (Brent) US$36.7 /bbl US$50.0 /bbl US$71.2 /bbl US$84.6 /bbl US$60.0 / bbl
*2
Exchange
rate *3
¥106.3 / US$ ¥108.0 / US$ ¥110.1 / US$ ¥114.1 / US$ ¥108.0 / US$
*1 : Coal prices are based on standard market prices and therefore differ from the Company’s selling prices.
*2 : Assumption of crude oil (brent) for the second half of FY2021 incorporates mainly hedged prices.
*3 : 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 the Fiscal Year Ending March 31, 2022

(BN JPY)

FY2020
Results
FY2021
Revised Forecast
(Nov.2,2021)
Difference
Gross profit 188.1  240.0  +51.9 
Profit for the year attributable to owners of the Company
27.0  70.0  +43.0 

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.

*The historical Sojitz stock prices provided on this graph are as of previous day.

*Dividends Per Share is calculated in retroactive adjustments values as reference, effective for the stock consolidation.

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.

Although the information on this website is prepared with the greatest care, the Company does not guarantee the accuracy, continuity or quality of any information provided on this website or that it is up-to-date, nor does it accept responsibility for any damage or loss arising from the falsification of data by third parties, data downloads, etc., irrespective of the reasons therefore.

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