Progress of Medium-term
Management Plan 2023
and FY Mar/2022 Business Plan
~Transform and Grow~
Commitment to a new stage
April 30, 2021 Mitsui & Co., Ltd.
This material contains statements (including figures) regarding Mitsui & Co., Ltd. ("Mitsui")'s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of Mitsui's management but should not be relied on solely in making investment and other decisions. You should be aware that a number of known or unknown risks, uncertainties and other factors could lead to outcomes that differ materially from those presented in such forward-looking statements.
A Cautionary Note on Forward-Looking Statements:
These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
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Contents
Overview of FY Mar/2021 Operating Results and FY Mar/2022 Business Plan
FY Mar/2022 Business Plan and Key Initiatives
Details of FY Mar/2021 Operating Results and FY Mar/2022 Business Plan
Supplementary Information and Segment Data
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Overview of FY Mar/2021 Operating | |
1 | |
Results and FY Mar/2022 Business Plan | |
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Summary of Operating Results
FY Mar/2021 Results
- Results driven by strong iron ore business, trading and FVTPL gains. Strengthened resilience against downward pressure through cost reductions, portfolio restructuring etc., and promoted initiatives to leverage COVID-19 as an opportunity
FY Mar/2022 Business Plan
- Further strengthen earnings base and implement growth strategy to achieve quantitative targets of the Medium-term Management Plan, while aiming for even greater heights
(Unit: ¥billion) | FY Mar/2020 | FY Mar/2021 | FY Mar/2021 | FY Mar/2022 |
forecast | plan | |||
(Announced Feb. 2021) | ||||
Core Operating Cash Flow*1 | 561.0 | 658.1 | 600.0 | 680.0 |
Profit for the year*2 | 391.5 | 335.5 | 270.0 | 460.0 |
ROE | 9.7% | 8.0% | - | - |
Dividend per share | ¥80 | ¥85 | ¥80 | ¥90 |
FY Mar/2021
- Annual dividend of ¥85 per share (¥5 increase)
-
Total annual shareholder return of approx. ¥210.0 billion
(31% of core operating cash flow)
FY Mar/2022
- Raise minimum dividend to ¥90 per share (¥10 increase)
- FY Mar/2022 annual dividend of ¥90 per share (¥5 increase compared to FY Mar/2021)
- Additional share buyback of maximum ¥50.0 billion (May-Jun 2021)
*1. Cash flow from operating activities (FY Mar/2021: ¥772.7bn) minus cash flow from changes in working capital (FY Mar/2021: ¥56.2bn) minus outflows for repayment of lease liability (FY Mar/2021: ¥58.4bn)
*2. In these presentation materials, "Profit for the year" means Profit for the year attributable to owners of the parent
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FY Mar/2021 tasks and progress
- Steady advancement of projects amid COVID-19, and stable supply of resources, materials, food, and services essential for daily life
- Restructuring competitive portfolio reflecting changes in business environment, and strengthened earnings base
Steady advancement of
projects
Realizing stronger
profitability
Initiatives to resilience
against downward pressure
- Qualitative and quantitative contributions from essential businesses, including trading, stable supply of resources and electricity, and hospital business
- Steady advancement of projects
- Gas field development in Western Australia, start of production of all Cameron LNG trains in US
- Initiatives to maintain and expand iron ore reserves
- Started new operations in IPP and FPSO businesses
- Capturing digital security and "stay at home" demand
- Implemented business revaluation, progressed portfolio restructuring
- Implementation of sale of Caserones, Agreement on sale of Moatize, Acquisition of additional interest in Collahuasi
- Shift in E&P business strategy to increase asset value
- Reorganized existing business groups
- Consolidated subsidiaries of intermediary distribution, pursuing merger of apparel- related businesses
- Merged ICT related companies
- Reorganized US oil and gas businesses
- Implemented structural reforms to strengthen cost competitiveness
Strengthening business management capabilities, Promotion of DX
- Introduced ROIC, promoted company-wide measures to improve capital efficiency
- Accelerated efforts to improve productivity and build new business models through DX
- Sharpened corporate functions and shifted personnel into the front-line
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- FY Mar/2022 Business Plan and Key Initiatives
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FY Mar/2022 Business Plan
The basic policy set forth in the Medium-term Management Plan 2023
remains unchanged,
Continuous "Transform and Grow"
Thoroughly strengthen core businesses,
and build high-quality business clusters through organic collaboration with peripheral businesses
Further strengthen cash generating capability,
and pursue both growth investments and shareholder returns
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FY Mar/2022 Quantitative Targets Core Operating Cash Flow
- Recovery from COVID-19 and reinforcement of earnings base, boosted by strong commodity prices
- Pursue even greater height through achievement of "Transform and Grow"
Core Operating Cash Flow
680.0 | [Reference] | (Unit: ¥billion) | ||||||
658.1 | 650.0 | |||||||
561.0 | Medium-term Management | |||||||
Plan 2023 target | ||||||||
290.0 | 230.0 | ¥550.0bn | ||||||
308.1 | ||||||||
243.7 | Mineral & Metal | |||||||
Resources | ||||||||
Energy | ||||||||
130.0 | Machinery & | |||||||
Infrastructure | ||||||||
123.2 | 170.0 | Chemicals | ||||||
206.5 | 120.0 | Iron & Steel Products | ||||||
78.7 | 100.0 | Lifestyle | ||||||
Innovation and Corporate | ||||||||
70.0 | ||||||||
86.8 | 62.5 | Development | ||||||
55.0 | 10.0 | Others, Adjustments and | ||||||
19.8 | 2.0 | |||||||
5.0 | 40.0 | |||||||
2.2 | Eliminations | |||||||
35.8 | 30.0 | |||||||
55.1 | 8.7 | 40.0 | 10.0 | |||||
20.5 | 3.9 | 30.0 | ||||||
-38.4 | FY Mar/2023 | |||||||
FY Mar/2020* | FY Mar/2021 | FY Mar/2022 | ||||||
(Results) | (Results) | (Plan) | (Forecast) |
* Revised to reflect deduction for repayment of lease liability and restructuring associated with structural reorganization in April 2020
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FY Mar/2022 Quantitative Targets Profit for the Year
- Substantial increase in profit due to absence of one-time losses and improved profitability of existing businesses, aiming to achieve targets of Medium-term Management Plan ahead of schedule
Profit for the Year | [Reference] | |||||||||||
500.0 | ||||||||||||
460.0 | ||||||||||||
391.5 | 200.0 | |||||||||||
335.5 | 260.0 | |||||||||||
183.3 | ||||||||||||
179.9 | 60.0 | |||||||||||
57.8 | 50.0 | 110.0 | ||||||||||
27.2 | ||||||||||||
45.9 | 80.0 | |||||||||||
89.4 | 60.0 | |||||||||||
22.3 | 43.5 | 2.1 | 40.0 | |||||||||
4.7 | 12.7 | 10.0 | 40.0 | |||||||||
20.0 | ||||||||||||
32.0 | ||||||||||||
14.6 | 50.2 | 40.0 | ||||||||||
30.0 | ||||||||||||
-12.6 | ||||||||||||
-26.0 | -30.0 | -20.0 | ||||||||||
(Unit: ¥billion)
Medium-term Management Plan 2023 target ¥400.0bn
Mineral & Metal
Resources
Energy
Machinery &
Infrastructure
Chemicals
Iron & Steel Products
Lifestyle
Innovation and Corporate
10.0 Development
Others, Adjustments and
Eliminations
FY Mar/2020* | FY Mar/2021 | FY Mar/2022 | FY Mar/2023 |
(Results) | (Results) | (Plan) | (Forecast) |
* Revised to reflect restructuring associated with structural reorganization in April 2020
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Transform and Grow Cash Flow Allocation
- Cumulative increase in core operating cash flow in three years of the Medium-term Management Plan will provide additional capacity for growth investments and shareholder returns (expansion of management allocation)
- ¥140 billion*1 already allocated for share buybacks. Plan to allocate ¥40 billion*2 for dividend increase and ¥150 billion for growth investments
Update on cash flow allocation (FY Mar/2021 - FY Mar/2023)
(Unit: ¥billion) | Announced May 2020 | Forecast as of April 2021 | ||||
Core Operating Cash Flow | 1,500.0 | 2,000.0 | ||||
Cash-In | ||||||
Asset Recycling | 900.0 | 650.0 - 750.0 | ||||
Post FID investment, | ||||||
maintenance CAPEX | 1,500.0 - 1,700.0 | 1,500.0 | ||||
Growth investments | ||||||
Cash-Out | (Strategic Focus/new) | |||||
300.0 - 500.0 | 750.0 - 850.0 | |||||
Share buybacks | ||||||
Management allocation | ||||||
+ additional dividend | ||||||
Dividend (minimum) | 400.0 | 400.0 → 440.0 | ||||
*1. ¥90.0bn implemented during Medium-term Management Plan + ¥50.0bn announced April 30, 2021
*2. Cumulative three-year total of dividends to be paid has been expanded from ¥400.0bn (forecast as of the beginning of the Medium-term Management Plan period) to ¥440.0bn (assuming annual dividend per share is ¥85 for FY Mar/2021 and ¥90 for FY Mar/2022 and beyond)
Allocation
Growth
investments
150.0
Share
buybacks
140.0
Dividend increase 40.0
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Shareholder Returns Policy
- Reflecting strong cash generation capability, increasing dividend to ¥85 per share for FY Mar/2021 and raising minimum annual dividend for FY Mar/2022 and FY Mar/2023 to ¥90 per share
- Additional share buyback of maximum ¥50.0 billion (May-Jun 2021)
- Continue to raise the total shareholder returns as a percentage of core operating cash flow
(Unit: ¥billion) | 659.7 | 658.1 | 680.0 | ||||||
● Core operating cash flow | 563.0 | 561.0 | |||||||
■ Share buybacks | |||||||||
■ Dividend amount | (50.0) | ||||||||
64.0 | |||||||||
58.0 | |||||||||
25.0 | |||||||||
50.0 | |||||||||
150.0 | |||||||||
145.0 | |||||||||
140.0 | 140.0 | ||||||||
120.0 | |||||||||
Annual dividend per share
Mar/18 | Mar/19 | Mar/20 | Mar/21 | Mar/22 | ||||
¥70 | ¥80 | ¥80 | ¥85 | ¥90 | ||||
Total shareholder returns | Increase in comparison with | |
as a percentage of core | Previous MTMP results: Approx. 28% | previous MTMP |
operating cash flow* | (FY Mar/2021: 31%) | |
* Total shareholder return ÷ core operating cash flow
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Key Initiatives Formation of business clusters of scale
- Continue to strengthen business management capabilities and thoroughly reinforce strong existing (i.e. core) businesses
- Create multiple business clusters of scale, with a strong presence in each business domain
- Achieve business and portfolio transformation, and growth by organically linking peripheral businesses and developing them across industries
Establishment of
strong presence in business domains
Core
Businesses
New
Businesses
Formation of business clusters
of scale
- Growth and expansion of core businesses and new businesses
- Organic collaboration with businesses in peripheral areas
- Establishment of new core businesses
Core
Businesses
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- Strengthening and expansion of business clusters centered on core businesses
- Formation of business clusters through organic collaboration of multiple businesses
Business
Clusters
Core
Businesses
Core
Businesses
Business
Clusters
Business
Clusters
Steady advancement of projects and profit | ||||||||||
Key Initiatives | ||||||||||
contribution/Reinforcement of domestic business | ||||||||||
Medium-term Management Plan 2023 | ||||||||||
Profit contribution | FY Mar/2021 | FY Mar/2022 | FY Mar/2023 | FY Mar/2024 and beyond | ||||||
収益貢 | ||||||||||
・South Flank | ・Australia Waitsia | |||||||||
・Cameron 3rd Train | ・Robe River JV | ・Russia Arctic LNG2 | ||||||||
・Additional interest in Collahuasi | ・Mozambique Area1 | |||||||||
・Gas-fired power | ||||||||||
Existing | + | (Thailand) | ||||||||
・FPSO | ・ Morocco wind power | |||||||||
・FPSO(Sepia) | ||||||||||
business | ・FPSO (Mero, Eni) | ・Thailand power distribution and district cooling | ||||||||
・Gas-fired power | ||||||||||
・Mexico solar power | ・Gas-fired power (Thailand, Bahrain) | |||||||||
(Soma / Japan) | ||||||||||
・Morocco wind power | ||||||||||
Profitability | ||||||||||
improvement | ||||||||||
・Crop protection, | ・High performance | Energy | Market | Healthcare/ | ||||||
agricultural inputs | monomers | |||||||||
Solutions | Asia | Nutrition | ||||||||
●Min. & Metal Resources ●Energy ●Machinery & Infrastructure ●Chemicals | See next page | |
Reinforcement of domestic business | ||
Industry reorganization, Partnering with local leading companies, Accelerate initiatives by strategic allocation of personnel
FY Mar/2021
■Reorganization and restructuring of existing business groups
・Consolidation of subsidiaries of intermediary distribution (Mitsui & Co. Retail Holdings)
・Merged apparel related business (MIF/Textile segment of Nippon Steel Trading Corporation)
・Reorganization of domestic sugar industry(Merger of Mitsui Sugar and Dai-Nippon Meiji Sugar)
・Establishment of subsidiary consolidating export and import businesses (Mitsui & Co., Retail Trading)
・Reorganization of ICT related subsidiaries (MKI・MBEL) ■Enhancement of collaboration with leading companies in high
performance monomers and cosmetics domains in Japan (Honshu Chemical /Ands)
■Start of EC fulfillment company (RDS) , Foundation of modern media company (Tastemade JV)
FY Mar/2022 and beyond
■Reinforcement of existing business groups and promote continuous reorganization
・ICT: Strengthen core affiliates etc.
■Initiatives in new domains
・Next generation mobility / EV charging infrastructure, EV battery
・Wellness / promote digital business utilizing medical and health data ・Agriculture / Reinforcement of seeds and agriculture infrastructure
businesses
・Energy Solution / Development of smart cities business
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Key Initiatives Energy Solutions
- Thoroughly reinforce existing businesses, which are one of our strengths, while organically linking peripheral businesses to accelerate initiatives in next-generation fields and lead the energy transition
FY Mar/2021 progress
- Progress of LNG development projects
・Russia Arctic2, Mozambique Area1 | Existing | Strengthen LNG business domain and | |
◆ FID of Western Australia gas field | businesses | promote decarbonization initiatives | |
◆ Investment in hydrogen station | |||
business | |||
Next gen. | Hydrogen and ammonia initiatives | ||
◆ Agreement for carbon-neutral LNG | |||
supply | |||
◆ Shift in E&P business strategy to | |||
increase asset value | Existing | E&P value maximization, CCS/CCUS, | |
◆ Participation in CCS business (UK) | businesses | geothermal, DX | |
◆ Achieved CO2-free electricity in | |||
Japan | Next gen. | Carbon solutions initiatives | |
◆ Decision to expand capacity of | |||
CO2-derived methanol production | |||
Transition we are pursuing
Transition to a
stable and secure
supply of
- Participation in next-generation fuel production business (LanzaTech)
- Steady progress in power generation projects (stable operation, completion of projects under construction, start of commercial operations, etc.)
Existing | Trading of petroleum, coal, LNG, | |||
businesses | and biofuel | |||
Next gen. | Trading of next-generation fuels, | |||
electricity and carbon credit | ||||
Existing | Power generation (including | |||
businesses | distributed RE) and mobility | |||
Next gen. | EV infrastructure, batteries, VPP | |||
sustainable
energy/electricity
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Key Initiatives Healthcare/Nutrition
- Realize further growth strategies for existing businesses and accelerate development of foundation for growth through initiatives to broaden target domains from healthcare to wellness and from "patient-centered" to "individual-centered"
FY Mar/2021 progress | FY Mar/2022 action plan | |
- While affected by decline in operation rates at hospital and food
service businesses etc., recovered through implementation of | • | Realize growth strategies for existing businesses | |
various measures | • | Strengthen cross-company initiatives in wellness | |
• | Made progress on development of growth platform for data | business | |
business, etc. | • | Develop healthcare data business platform |
- Strengthened portfolio management through asset recycling
Growth strategy
- Develop largest wellness service platform in Asia by combining our existing business portfolio with advanced digital technologies, through collaboration with governments, medical institutions, pharmaceutical companies, insurers and others
Outpatient Clinic | Hospital | ||
Healthcare data | Pharmaceutical | ||
Medical examination | |||
/ diagnosis | Wellness service | companies | |
platformcentered on Asia |
Home
Wellness data
Prevention, Prognosis care
Exercise / nutrition | Medical expenses |
insurance | |
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Key Initiatives Market Asia
- Agreed to subscribe ¥100billion* through convertible bonds of CT group, an Indonesian business conglomerate having resilience even under COVID-19
- Leverage CT Corp's strong business platform and tackle the "growing and changing Asian consumer market"
- Aim to enhance corporate value, create joint businesses, and public offering in future, by collaboration through the appointment of commissioner and director
Overview of CT Corp
- Established in 1996, CT Corp is a leading conglomerate in Indonesia that has expanded its business in consumer-related sectors including financial service, retail, media, property, hospitality, entertainment and life-style
- In Indonesia, with a growing middle class and demand expected to be driven by millennials and Gen Z, the company's growth strategy is to differentiate its products and services by leveraging consumer data and reciprocal customer transfers within the group
- While competitors are struggling with the coronavirus pandemic, CT Corp has proven its resilience by implementing quick and flexible cost controls
Growth strategy for the Asian consumer market
CT Corp's strong business platform
Finance Retail Media Property
Mitsui capabilities
Advanced business
model/introduction of Expansion in Asia Mitsui platformproducts and services
Establish management foundation for a global
business
Establishment of consumer eco-system
Best products and services | Middle class | Diverse needs (data) | ||||||
Goods and | Systems | Place and space | ||||||
services | ||||||||
Procurement | Analysis/improvement | Design development |
* Of this, ¥33.0 billion will be used to convert existing straight bonds (underwritten in 2018)
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Personnel strategy/ Sustainability management; | |
Key Initiatives | |
Evolution of ESG | |
- Develop human resources and introduce policies to strengthen individuals and support "Transform and Grow"
- Promote ESG initiatives related to climate change and circular economy to enhance corporate value
- Continuously strengthen governance to improve the effectiveness of the Board of Directors*
Personnel strategy
Deploy to the right positions on a global group basis
Promoting the activities of diverse professionals
Strengthening diverse
individuals
2021 progress
- Expansion of global next-generation leader development program
- Introduction of globally shared standards of conduct
- Succession management
- Reformed HR systems and operations to support the growth of diverse professionals
- Introduced employee stock compensation plan
2022 action plan
✓ Promote talent management across global group |
✓ Develop succession management |
✓ Allocate human resources in line with business |
portfolio transformation |
✓ Establish new system to encourage young employees |
to challenge themselves to grow |
✓ Consider establishing new career paths for highly |
specialized human resources |
✓ Consider new ways of working in line with the "new |
normal" |
✓ More thorough implementation of Pay for Performance |
✓ Implement measures to support enhancement of |
business management capabilities |
Sustainability management; Evolution of ESG
Climate change
Circular economy
Business and human
rights
- Introduced internal carbon pricing system
- Promoted projects that contribute to GHG reduction
- Identified opportunities and risks for each business unit
- Promoted opportunity initiatives
- Revised Human Rights Policy and Sustainable Supply Chain Policy
- Promoted awareness of Mitsui policies and implemented human rights DD
✓ Promote projects that contribute to GHG reduction, |
take measures to improve resilience |
✓ Analyze impact of strategic focus |
✓ Promote opportunity initiatives |
✓ Implement measures to permeate the field |
✓ Continue human rights DD |
* See pages 43-46 (Corporate Governance) for information on Mitsui's governance structure and its efforts to improve the effectiveness of the Board of Directors
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Climate Change
- Fulfil responsibilities as a company operating in wide range of businesses across the world with the aim of realizing a sustainable society while ensuring economic viability
- Aim to widely contribute toward global reduction of greenhouse gas emissions
- Reduce emissions through portfolio restructuring and implement measures to improve the quality of business
Emissions
Net-zero emissions
Reduction
Create an
Halve GHG impacteco-friendly society
2020 | 2030 | 2050 |
Achieving net-zero emissions by 2050
(from publicly released Medium-term Management Plan 2023 materials)
[Reduction] Reduce company emissions by improving portfolio quality of resource and power generation assets
[Transition] In the medium term, promote fuel conversion through LNG and other business to contribute to reducing the environmental burden
Reduction contribution
Opportunity & Transition*
GHG impact = Emissions - Reduction contribution
* For Transition, we only assume reduction contribution attributable to the company in future
[Opportunity] Contribute to reducing emissions by expanding business that leverages the opportunities to address climate change in Energy Solutions and other areas
[2020 GHG impact] Emissions: 36m tons, Reduction contribution: 2m tons, GHG impact: 34m tons
- Emissions are Scope 1/2 + Scope 3 (category 15)
- Reduction amount is from existing renewable energy business, forestry, and company-owned forests, etc.
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3 | Details of FY Mar/2021 Operating |
Results and FY Mar/2022 Business Plan |
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Core Operating Cash Flow YoY segment comparison
- Core operating cash flow: ¥658.1bn (up ¥97.1bn)
(Unit: ¥billion)
658.1
561.0
308.1
243.7
123.2 | ||||||
206.5 | ||||||
78.7 | ||||||
86.8 | 62.5 | |||||
2.0 | ||||||
19.8 | ||||||
35.8 | 2.2 | 55.1 | 8.7 | |||
20.5 | 3.9 | |||||
-38.4 |
Main factors
(YoY change)
■ Mineral & Metal Resources ¥308.1bn (+¥64.4bn)
・Increase in sales price of iron ore operations in Australia ・Increase in dividend from Vale
・Decline in sales price of coal operations in Australia
■ Energy ¥123.2bn (-¥83.3bn)
・Decline in oil and gas prices, decrease in LNG dividends
■ Machinery & Infrastructure ¥78.7bn (-¥8.1bn)■ Chemicals ¥62.5bn (+¥26.7bn)
・Strong chemicals trading and agricultural related businesses
■ Iron & Steel Products ¥2.0bn (-¥0.2bn)■ Lifestyle ¥19.8bn (-¥0.7bn)
■ Innovation & Corporate Development ¥55.1bn (+¥51.2bn)
・FVTPL gains
・Strong commodities trading
・Strong performance of ICT's core affiliated companies
■ Others ¥8.7bn (+¥47.1bn)
・Absence of corporate pension contribution included in same period of previous fiscal year
Mar/2020* Mar/2021
* Revised to reflect deduction for repayment of lease liability and restructuring associated with structural reorganization in April 2020
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Profit for the Year (PAT) YoY segment comparison
- Profit: ¥335.5bn (down ¥56.0bn)
(Unit: ¥billion)
391.5
335.5
183.3
179.9
57.8
27.2 | ||||||
89.4 | 45.9 | |||||
43.5 | ||||||
22.3 | 4.7 | 12.7 | 2.1 | |||
32.0 | ||||||
50.2 | ||||||
14.6 | ||||||
-12.6 | -26.0 | |||||
Main factors
(YoY change)
■ Mineral & Metal Resources ¥179.9bn (-¥3.4bn)
・Exit and Impairment losses from Moatize coal and Nacala infrastructure, and Caserone copper mine projects
・Decline in sales price of coal operations in Australia
・Increase in sales price of iron ore operations in Australia and dividend from Vale
■ Energy ¥27.2bn (-¥30.6bn)
・Decline in oil and gas prices, decrease in LNG dividends
・Absence of deferred tax asset for Mozambique Area 1 recorded in same period of previous fiscal year
・Recorded deferred tax asset associated with reorganization of US energy subsidiaries
■ Machinery & Infrastructure ¥45.9bn (-¥43.5bn)
・Exit and Impairment losses from Moatize coal and Nacala infrastructure projects ・Losses incurred by the UK passenger transportation business
・Impairment loss at rolling stock leasing businesses
■ Chemicals ¥43.5bn (+¥21.2bn)
・Strong chemicals trading and agricultural related businesses
■ Iron & Steel Products ¥2.1bn (-¥2.6bn)
・Decline in operation rate at factories during first half of the fiscal year
■ Lifestyle ¥12.7bn (-¥19.3bn)
・Decline in dining out and purchasing demand at affiliated companies in food and fashion
・Absence of decline in tax burden associated with sale of shares in Recruit Holdings recorded in same period of previous fiscal year
■ Innovation & Corporate Development ¥50.2bn (+¥35.6bn)
・FVTPL gains
・Strong commodities trading
・Strong performance of ICT's core affiliated companies
■ Others -¥26.0bn(-¥13.4bn)
Mar/2020* Mar/2021
* Revised to reflect restructuring associated with structural reorganization in April 2020 | 20 |
Profit for the Year | YoY factor comparison | ||||||
Resources- | (Unit: ¥billion) | ||||||
related | |||||||
Base profit | costs/volume | ||||||
Asset recycling | |||||||
+61.0 | -20.0 | ||||||
391.5 | -53.0 | Commodity | Valuation | ||||
prices/Forex | |||||||
gain/loss | |||||||
-34.0 | |||||||
special factors | 335.5 | ||||||
-10.0 | |||||||
Base profit | Resources-related | Asset recycling | Commodity | Valuation | ||||
costs/volume | prices/Forex | gain/loss | ||||||
Main factors * | ・Costs | +8.0 | ||
<Positive factors> | Min. & Metal | -6.0 | ||
・FVTPL | +37.0 | Iron ore | -6.0 | |
Absence of factors | Coal | -2.0 | ||
from previous Q4 | +7.0 | Copper, other | +2.0 | |
Current period | +30.0 | Energy | +14.0 | |
・Iron ore dividend | ・Volume | |||
・Cameron liquefaction | -28.0 | |||
project | +11.7 | Min. & Metal | -5.0 | |
・Chemicals trading | Iron ore | -2.0 | ||
・United Grain | +3.6 | Coal | -3.0 | |
Copper, other | 0.0 | |||
<Negative factors> | Energy | -23.0 | ||
・LNG dividend decrease | ||||
Mar/2020 | ・Gestamp | -9.1 | ||
・LNG trading etc. |
・Head office relocation costs
・Gas distribution businesses
* Profit improvement and favorable business environment offset COVID-19 impact
・Absence of factors | ・Min. & Metal | +36.0 | ・Absence of factors | +75.0 | |
from previous Q4 | -66.0 | Iron ore | +56.0 | from previous Q4 | |
・Total current period +13.0 | Coal | -22.0 | ・Total current period | -85.0 | |
Power generation | Copper, other | +2.0 | Moatize coal/ | -73.6 | |
business in N. America | infrastructure | ||||
Fashion businesses | +3.0 | ・Oil, gas | -50.0 | MEPIT impairment | -17.5 |
San-ei Sucrochemical | UK passenger transportation | ||||
Caserones copper | ・Forex | -20.0 | business losses | -11.0 | |
mine | -7.2 | (Yen vs. Functional | N. America | +39.0 | |
Etc. | currency | +4.0) | Energy DTA | ||
(Functional currency vs. | Etc. |
revenue currencies -24.0)
Mar/2021
Forex breakdown | Yen vs. Functional | Functional Currency vs. | ||
Currency | Revenue Currencies | |||
・Min. & Metal Resources : | -16.0 | 10.0 | -26.0 | |
・Energy | : | 0.0 | -2.0 | 2.0 |
・Other | : | -4.0 | -4.0 | 0.0 |
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21
Evolve financial strategy and portfolio management
Results of cash flow allocation
- Core operating cash flow increased, driven by strong iron ore business, trading and FVTPL gains
- Asset recycling shrank due to COVID-19 and timing difference. Continue to be selective in
investment and loans, reduce maintenance capex of existing business
FY Mar/2021 | Main projects | ||
Core Operating Cash Flow | 660.0 | ||
Cash- | [Machinery & Infrastructure] Sale of North American power generation | ||
business | |||
In | |||
Asset Recycling*1 | 145.0 | [Chemicals] Sale of San-ei Sucrochemical | |
[Mineral & Metal Resources] Sale of Caserones copper mine | |||
[Lifestyle] Sale of Fuji Pharma | |||
[Energy] LNG project under development, oil and gas production | |||
business | |||
[Corporate/ Innovation & Corporate Development] Integrated block | |||
Investment and Loans | -445.0 | development of Otemachi One Project | |
[Mineral & Metal Resources] Iron ore operations in Australia, Coal | |||
Cash- | operations in Australia, additional acquisition of interests in | ||
Collahuashi*3 | |||
Out | |||
[Machinery & Infrastructure/ Energy] Power generation businesses | |||
Treasury Stock | -65.0*2 | ||
Acquisition | |||
Dividend | -145.0 | ||
*1. Excludes changes in time deposits
*2. Acquired treasury stock worth ¥40.0bn between April and June 2020, and ¥25.0bn between February and March 2021. Additionally, ¥6.9bn in stock purchases for employee stock-based compensation
*3. Classified as "financial CF" in cash flow statement
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22
Evolve financial strategy and portfolio management
Balance sheet
Mar/2020 | |
Current | Other |
liabilities | |
assets | 2.8 |
4.1 | |
Long- and | |
short-term | |
debt*1 | |
4.9 | |
Non-current | (3.5) |
assets | |
7.7 | Shareholder |
equity*2 | |
total | |
0.3 | 3.8 |
Non-controlling interests
Total assets | 11.8 |
Shareholder equity | 3.8 |
Net DER | 0.91x |
(Unit: ¥trillion)
Mar/2021 | |
Current | Other |
liabilities | |
assets | 3.0 |
4.2 | |
Long- and | |
short-term | |
debt*1 | |
4.7 | |
Non-current | (3.3) |
assets | |
8.3 | Shareholder |
equity*2 | |
total | |
0.2 | 4.6 |
Non-controlling interests
Total assets | 12.5 |
Shareholder equity | 4.6 |
Net DER | 0.72x |
Main balances/changes from March 2020
Interest-bearing debt*3 ¥4.4tn (down ¥0.1tn) Net interest-bearing debt*4 ¥3.3tn (down ¥0.2tn)
Shareholder equity*2 ¥4.6tn (up ¥0.8tn) | |
・ Profit for the year: | +¥0.3tn |
- Foreign currency translation adjustments,
financial assets measured at FVTOCI: | +¥0.6tn |
・ Dividend payments, share buyback*5: | -¥0.2tn |
*1. Figures in brackets are "Net interest-bearing debt"
*2. In these presentation materials, "Shareholders' equity" means
total equity attributable to owners of the parent
*3. Interest-bearing debt is calculated by excluding lease liability from short-term debt and long-term debt
*4. Net interest-bearing debt is Interest-bearing debt*3 minus cash and cash equivalents, and time deposits
*5. Includes ¥6.9bn in stock purchases for employee stock-based compensation
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23
Impact of COVID-19
- The pandemic created downward pressure at the beginning of the fiscal year, but recovery was better than expected in the second half. Amid a changing business environment, trading, resources and power supply, and hospital business made qualitative and quantitative contributions as essential businesses
Mar/2021 full-year impact and future outlook | |||||
Mineral & Metal | ◼ Strong Iron ore and copper prices due to Chinese demand and economic recovery. However, coal prices were | ||||
sluggish | |||||
Resources | |||||
◼ | Mining operations largely operating as normal | ||||
◼ Oil demand is recovering due to the spread of vaccines and economic stimulus measures in certain countries, | |||||
Energy | but there are concerns about slowdown due to a resurgence of infections | ||||
◼ | Closely monitor prolonged spread of infections, behavioral changes, and impact of demand trends on real | ||||
economy | |||||
Machinery & | ◼ Production and sales significantly affected in the first half of the fiscal year, but market recovered in second half | ||||
centered on automotive and construction & industrial machinery | |||||
Infrastructure | |||||
◼ | Footfall has not recovered and some businesses, such as passenger transport, remain sluggish | ||||
◼ While demand and market declined in the first half of the fiscal year, demand recovered in the second half, | |||||
Chemicals | mainly in China and North America | ||||
◼ | When the market changes, Mitsui demonstrated its capabilities in logistics and other areas, and contributed | ||||
toward stable supply | |||||
◼ Demand for agriculture and food-related products remained firm | |||||
◼ Although the first half of the year was affected by decline in demand for steel and a decline in operation rate at | |||||
Iron & Steel Products | factories, market recovered with the recovery in the economy and steel demand | ||||
◼ | Uncertainty remains in some businesses and regions, but performance is expected to recover due to recovery in | ||||
demand and strengthening of resistance to downturns | |||||
◼ Although affected by decline in operation rates at hospital and food service businesses etc., it recovered through | |||||
implementation of various measures. Expect further recovery by continuing to strengthen management of | |||||
Lifestyle | existing businesses and creating new businesses with an eye to the "new normal" | ||||
◼ | Logistics profit on grains and other commodities improved and we secured "stay at home" demand. Demand in | ||||
fashion-related and dining out industries will pick up to a certain extent, but we will closely monitor the impact | |||||
of concern about re-spread in infections on decline in demand | |||||
Innovation & Corporate | ◼ Steady capture of digital security and "stay at home" demand | ||||
◼ | Steady growth in commodities trading and logistics business | ||||
Development | |||||
◼ | Early recovery of stock market, active IPO market | ||||
General | ◼ Delays in asset recycling. Drive market research and improve project/deal quality for normalization | ||||
◼ | Reduced expenses such as for travel and project/deal formulation costs | ||||
24
FY Mar/2022 Business Plan
- Core Operating Cash Flow: ¥680.0bn (+¥21.9bn YoY) Strong commodity markets, primarily in energy
-
Profit for the Year: ¥460.0bn (+¥124.5bn YoY)
Absence of re-valuation factors (Mineral & Metal Resources, Energy, Machinery & Infrastructure), Recovery from COVID-19 and strengthening of earnings base (overall)
Core Operating Cash Flow
658.1680.0
Mineral & Metal Resources
Energy
Profit for the Year | (Unit: ¥billion) |
460.0
308.1
290.0
Machinery &
Infrastructure
Chemicals
Iron & Steel Products
335.5 | 260.0 |
123.2 | 170.0 | |||||
78.7 | 100.0 | |||||
62.5 | 2.0 | 55.0 | ||||
19.8 | 5.0 | |||||
30.0 | ||||||
55.1 | 8.7 | |||||
30.0 | ||||||
FY Mar/2021 | FY Mar/2022 | |||||
Results | Plan |
Lifestyle
Innovation and Corporate
Development
Others, Adjustments and Eliminations
179.9 | ||||||
50.0 | ||||||
27.2 | 80.0 | |||||
45.9 | ||||||
43.5 | 2.1 | 40.0 | ||||
12.7 | 20.0 | 10.0 | ||||
50.2 | ||||||
30.0 | ||||||
-26.0 | -30.0 | |||||
FY Mar/2021 | FY Mar/2022 | |||||
Results | Plan |
25
FY Mar/2022 Action Plan
- Strengthen earnings base through steady implementation of the following measures
Mineral & Metal
Resources
Energy
Machinery &
Infrastructure
Chemicals
- Continue to maintain and expand the volume of reserve in the iron ore business and strengthen existing operations of the copper mines
- Strengthen the recycling business and respond to a low-carbon society
- Promote LNG development projects (Arctic 2, Mozambique)
- Steady realization of E&P asset value
- Accelerate initiatives in the energy solutions domain
- Strengthen and expand portfolio and improve quality
- Initiatives for B2B and next-generation mobility
- Sharpen trading functions and create new businesses in environment, DX, space fields etc.
- Promote new initiatives in emission management, circular economy, etc.
- Accelerate business development in Asia and Japan in the area of wellness
- Strengthen trading functions, bolt-on investments, and steady implementation of previously invested projects
Iron & Steel Products
Lifestyle
Innovation & Corporate
Development
- Strengthen Gestamp earnings base
- Strengthen comprehensive infrastructure maintenance business
- Sharpen trading functions
- Create new businesses through collaboration with CT Corp
- Strengthen cross-company initiatives in wellness business
- Further strengthen existing earnings base as well as core affiliate companies
- Create new businesses leveraging DX
COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
26
Profit for the Year YoY factor comparison
335.5
Resources- | |||||||
related | |||||||
Base profit | costs/volume | ||||||
+20.0 approx. | -32.0 | ||||||
Base profit | Resources-related | ||||||
costs/volume | |||||||
・Costs | -19.0 | ||||||
・Lifestyle, Machinery & | Min. & Metal | -10.0 | |||||
Infrastructure | Iron ore | -6.0 | |||||
Coal | -2.0 | ||||||
Copper, other | -2.0 | ||||||
・Absence of FVTPL gains | Energy | -9.0 | |||||
from previous Q4 -30.0 | ・Volume | ||||||
-13.0 | |||||||
Min. & Metal | 0.0 | ||||||
Iron ore | -1.0 | ||||||
Coal | 0.0 | ||||||
Copper, other | +1.0 | ||||||
Energy | -13.0 |
Valuation gain/loss special factors
Commodity | +101.0 | |||||||||||
prices/Forex | ||||||||||||
Asset recycling | ||||||||||||
+43.0 | ||||||||||||
-7.0 | ||||||||||||
Asset recycling | Commodity | Valuation | ||||||||||
prices/Forex | gain/loss | |||||||||||
・Absence of factors | ・Min. & Metal | +23.0 | ・Absence of factors | |||||||||
from Mar/2021 | -13.0 | Iron ore | +10.0 | from Mar/2021 | +85.0 | |||||||
・Mar/2022 total | +6.0 | Coal | +5.0 | ・Mar/2022 total | +16.0 | |||||||
Copper, other | +8.0 | |||||||||||
・Oil, gas | +34.0 | |||||||||||
・Forex | -14.0 | |||||||||||
(Yen vs. Functional | ||||||||||||
currency | +6.0) |
(Functional currency vs. revenue currencies -20.0)
(Unit: ¥billion)
460.0
Mar/2021
Results
Mar/2022 | ||||
Plan | ||||
Forex breakdown | Yen vs. Functional | Functional Currency vs. | ||
Currency | Revenue Currencies | |||
・Min. & Metal Resources : | -11.0 | 4.0 | -15.0 | |
・Energy | : | -2.0 | 3.0 | -5.0 |
・Other | : | -1.0 | -1.0 | 0.0 |
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27
Supplementary Information and | |
4 | |
Segment Data | |
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28
Assumptions and Sensitivities Mar/2021 results and Mar/2022 plan
Impact on profit for the year attributable to owners of the parent | March 2022 | |||
for the Year ending March 31, 2022 | Assumption | |||
Crude oil/JCC | ― | 61 | ||
Consolidated oil price (*1) | ¥2.5bn (US$1/barrel) | 59 | ||
U.S. Gas (*2) | ¥1.1bn (US$0.1/mmBtu) | 2.74 | ||
Commodities | Iron ore (*4) | ¥2.2bn (US$1/ton) | (*5) | |
Coal | Coking | ¥0.4bn (US$1/ton) | (*5) | |
Thermal | ¥0.1bn (US$1/ton) | (*5) | ||
Copper (*8) | ¥0.7bn (US$100/ton) | 7,650 | ||
USD | ¥2.6bn (¥1/USD) | 105.00 | ||
Forex (*10) | AUD | ¥2.4bn (¥1/AUD) | 80.00 | |
BRL | ¥0.2bn (¥1/BRL) | 19.00 | ||
March 2021
Result
43
46
2.13(*3)
128(*6)
119(*7)
69(*7)
6,169(*9)
105.94
76.71
19.46
(*1) As the crude oil price affects our consolidated results with a 0-6 month time lag, the effect of crude oil prices on consolidated results is estimated as the Consolidated
oil price, which reflects this lag. For the year ending March 2022, we have assumed that there is a 4-6 month lag for approx. 35%, a 1-3 month lag for approx. 60%, and no lag for approx. 5%. The above sensitivities show annual impact of changes in consolidated oil price.
(*2) As Mitsui has very limited exposure to U.S. natural gas sold at Henry Hub (HH), the above sensitivities show annual impact of changes in the weighted average sale price.
(*3) U.S. gas figures for the year ended March 2021 are the Henry Hub Natural Gas Futures average daily prompt month closing prices traded on NYMEX during January to December 2020.
(*4) The effect of dividend income from Vale has not been included.
(*5) Iron ore and coal price assumptions are not disclosed.
(*6) Iron ore results figures for the year ended March 2021 are the daily average (reference price) spot indicated price (Fe 62% CFR North China) recorded in several industry trade magazines from April 2020 to March 2021.
(*7) Coal results figures for the year ended March 2021 are the quarterly average prices of representative coal brands in Japan (US$/MT).
(*8) As the copper price affects our consolidated results with a 3-month time lag, the above sensitivities show the annual impact of US$100/ton change in averages of the LME monthly average cash settlement prices for the period March to December 2021.
(*9) Copper results figures for the year ended March 2021 are the averages of the LME monthly average cash settlement prices for the period January to December 2020.
(*10) Impact of currency fluctuations on reported profit for the year of overseas subsidiaries and equity accounted investees denominated in their respective functional currencies and the impact of dividend received from major foreign investees. Depreciation of the yen has the effect of increasing profit for the year through the conversion of profit (denominated in functional currencies) into yen. In the overseas subsidiaries and equity accounted investees where the sales contract is in USD, the impact of currency fluctuations between the USD and the functional currencies (AUD and BRL) and the impact of currency hedging are not included.
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29
Mineral & Metal Resources: Equity share of production
Equity share of production*1 | (announced April 2021) | ||||
(Mlt/year) | |||||
Iron Ore*2 | (Mlt/year) | Coal*2 | Copper*2 | (Kt/year) | |
Upper: Thermal coal |
Lower: Coking coal
59.7 | 62 | 4.2 | 3.0 | 3.2 | 12 | 14 | 153 | 154 | 154 | |||
57.8 | 58.2 | 59 | 10.6 | 130 | ||||||||
9.6 | 9.0 | 122 | ||||||||||
Mar/2019 | Mar/2020 | Mar/2021 | Mar/2022 | Mar/2023 | Mar/2019 Mar/2020 Mar/2021 Mar/2022 Mar/2023 | Mar/2019 | Mar/2020 | Mar/2021 | Mar/2022 | Mar/2023 | ||||
Result | Result | Result | (Est.) | (Est.) | Result | Result | Result | (Est.) | (Est.) | Result | Result | Result | (Est.) | (Est.) |
*1. | Impact of COVID-19 has not been factored into some figures | |||||||||||||
*2. | Vale production volume is based on published data as of April 19th |
Production | FY Mar/2020 | FY Mar/2021 | ||||||||||
1Q | 2Q | 3Q | 4Q | Total | 1Q | 2Q | 3Q | 4Q | Total | |||
Iron ore (Mt) | 14.1 | 14.4 | 15.1 | 14.2 | 57.8 | 14.0 | 14.1 | 15.5 | 14.6 | 58.2 | ||
Australian iron ore | 10.0 | 10.8 | 10.3 | 9.8 | 40.9 | 10.7 | 10.3 | 10.6 | 9.9 | 41.5 | ||
Vale*1 | 4.1 | 3.6 | 4.8 | 4.4 | 16.9 | 3.3 | 3.8 | 4.9 | 4.7 | 16.7 | ||
Coal*2(Mt) | 3.3 | 3.4 | 3.6 | 3.3 | 13.6 | 2.9 | 3.1 | 3.1 | 3.2 | 12.2 | ||
MCH | 2.1 | 2.1 | 2.1 | 2.0 | 8.3 | 1.8 | 1.9 | 1.9 | 2.0 | 7.6 | ||
BMC*1 | 0.5 | 0.6 | 0.5 | 0.4 | 2.0 | 0.5 | 0.5 | 0.5 | 0.4 | 1.8 | ||
Australian coking coal | 2.4 | 2.3 | 2.3 | 2.1 | 9.1 | 1.9 | 1.9 | 1.9 | 2.0 | 7.6 | ||
Australian thermal coal | 0.2 | 0.4 | 0.3 | 0.3 | 1.2 | 0.4 | 0.5 | 0.5 | 0.4 | 1.8 | ||
Moatize*1 | 0.3 | 0.3 | 0.3 | 0.3 | 1.2 | 0.3 | 0.2 | 0.2 | 0.2 | 0.8 | ||
Copper*1, 2(Kt) | 36.3 | 38.0 | 40.0*3 | 39.3 | 153.6 | 37.7 | 40.4 | 38.1*4 | 37.3 | 153.5 |
*1. Vale、BMC、Moatize and copper are results for: Q1 Jan-Mar; Q2 Apr-June; Q3 Jul-Sep; Q4 Oct-Dec
*2. Includes Vale production (5% for FY Mar/2018 Q1 and earlier, 5.5% for Q2 and after, 5.6% for FY Mar/2019 Q4 and after)
*3. May 2020 revision(Q3: 39.6→40.0)
*4. April 2021 revision (Q3: 38.7→38.1)
30
Mineral & Metal Resources: Main businesses
Product | Name*1 | Location | FY Mar/2021 | Main partner | Equity ratio*4 | Revenue recognition |
Equity production | ||||||
Iron ore | Robe River | Australia | 21.4 million tons | Rio Tinto | 33.0% | Consolidated |
(partially accounted for | ||||||
by equity method) | ||||||
Iron ore | Mt. Newman / Yandi / | Australia | 20.1 million tons | BHP | 7.0% | Consolidated |
(partially accounted for | ||||||
Goldsworthy / Jimblebar | ||||||
by dividend) | ||||||
Iron ore | Vale | Brazil | 16.7 million tons*2 | Vale | 5.58% | Dividend |
Coal | South Walker Creek / Poitrel | Australia | 1.8 million tons*2 | BHP | 20.0% | Equity method |
Coal | Kestrel | Australia | 1.1 million tons*2 | EMR / Adaro | 20.0% | Consolidated |
Coal | Moranbah North / Grosvenor | Australia | 6.5 million ton | Anglo American | Various | Consolidated |
/ Capcoal / Dawson | ||||||
Coal | Moatize / Nacala*5 | Mozambique | 0.8 million tons*2 | Vale | Moatize: approx. 15% | Moatize: Dividend |
Nacala: approx. 50% | Nacala: Equity method | |||||
Copper | Collahuasi | Chile | 69.4 thousand tons*2 | Anglo American Glencore | 12.0%*6 | Equity method |
Copper | Anglo American Sur | Chile | 35.3 thousand tons*2 | Anglo American Codelco | 9.5% | Equity method |
Copper | Caserones | Chile | 28.7 thousand tons*2 | JX Nippon Mining & Metals | 0.0%*7 | Other |
Mitsui Mining & Smelting | ||||||
Nickel | Coral Bay | Philippines | 3.4 thousand tons*3 | Sumitomo Metal Mining | 18.0% | Equity method |
Nickel | Taganito | Philippines | 4.6 thousand tons*3 | Sumitomo Metal Mining | 15.0% | Dividend |
*1. Includes JV names, company names, and project names
*2. Jan-Dec 2020 results
*3. Production capacity base
*4. As of end of March 2021
*5. Definitive Agreement concluded
*6. Additional acquisition in Q4 of FY Mar/2021 (0.97%)
*7. Sale completed in Q4 of FY Mar/2021
COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
31
Energy: Crude oil & gas - Equity share of production & reserves
(announced April 2021) | (announced October 2020) | |||||||||||||
Production*1*2 | Reserves*1*3 | |||||||||||||
(KBoE/day) | (100m barrels) | |||||||||||||
252 | 257 | 262 | 12.7 | |||||||||||
244 | 245 | |||||||||||||
222 | 9.5 | 8.8 | ||||||||||||
Gas | Gas | |||||||||||||
173 | 185 | 189 | 181 | 173 | 139 | Crude oil | 6.6 | 6.0 | 9.9 | Crude oil | ||||
71 | 67 | 81 | 72 | 83 | 2.8 | 2.8 | ||||||||
68 | 2.9 | |||||||||||||
Mar/2018 Mar/2019 Mar/2020 Mar/2021 Mar/2022 Mar/2023 | Mar/2018 | Mar/2019 | Mar/2020 | |||||||||||
Result | Result | Result | (Est.) | (Est.) | (Est.) | Result | Result | Result |
*1. Oil equivalent
Mitsui's equity share of interests of consolidated subsidiaries, affiliates, and non-consolidated interests
*2. Mitsui's share of sales is applied to certain projects
(Est.) assumes that the impact of the novel coronavirus has not been factored into some figures
*3. According to Mitsui's assessment standards
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32
Energy: Main businesses (producing assets only)
(As of end Mar. 2021)
Prod | Shareholder composition/Interest holders | LNG: Production capacity | Accounting | ||
Project name | E&P: Production | Revenue Recognition | |||
uct | *= operator, Blue text= Mitsui participating entity | Period | |||
(FY Mar/2021 Result) | |||||
LNG | Abu Dhabi | *ADNOC(70%), Mitsui(15%), BP(10%), Total(5%) | LNG:5.80 million tons/year | NA | Dividend income |
LNG | Qatargas1 | *QP(65%), Total(10%), EM(10%), MILNED(7.5%), Marubeni(7.5%) | LNG:9.60 million tons/year | Mar. | Dividend income |
LNG | Qatargas3 | *QP(68.5%), Conoco Phillips(30%), Mitsui(1.5%) | LNG:7.80 million tons/year | Mar. | Dividend income |
LNG | Oman | *MOG(51%), Shell(30%), Mitsui(2.77%), 他 | LNG:7.10 million tons/year | NA | Dividend income |
LNG | Equatorial Guinea | *Marathon(60%), Sonagas(25%), Mitsui(8.5%), Marubeni(6.5%) | LNG:3.70 million tons/year | NA | Dividend income |
LNG | SakhalinⅡ | *Gazprom(50%+1 share), Shell(27.5%-1 share), Mitsui(12.5%), Mitsubishi Corp(10%) | LNG:9.60 million tons/year | Dec. | Dividend income |
North West Shelf | *Woodside, MIMI [Mitsui/Mitsubishi Corp=50:50], Shell, BP, BHP, Chevron(16.7% | LNG:16.90 million tons/year | Dec. | ||
LNG | LPG:0.46 million tons/year | Equity method profit | |||
(NWS) | each) | ||||
Crude oil/condensate:97 thousand BD | |||||
*BP(40.2%), MI Berau[Mitsubishi Corp/INPEX=56:44](16.3%), KG Berau | LNG:7.60 million tons/year | Dec. | Equity method profit | ||
LNG | Tangguh | [JOGMEC/Mitsui/Mitsubishi Corp/INPEX/JX=49.2:20.1:16.5:14.2](8.6%), KG | |||
Crude oil/condensate: 6 thousand BD | /Gross profit | ||||
Wiriagar[Mitsui](1.4%), others | |||||
LNG | Cameron | *Sempra(50.2%), Mitsui, Total, [Mitsubishi Corp/NYK](16.6% each) | LNG:12.00 million tons/year | Dec. | Equity method profit |
Gas/crude oil/condensate: | Gross profit | ||||
E&P | MOECO/Thai offshore | *Chevron, *PTTEP, MOECO(17.2%) | Mar. | /Equity method profit | |
400 thousand BD | |||||
/Dividend income | |||||
E&P | MEPME/Block9 | *Occidental(50%), OQ(45%), MEPME(5%) | NA | Dec. | Gross profit |
E&P | MEPME/Block27 | *Occidental(65%), MEPME(35%) | NA | Dec. | Gross profit |
E&P | MEPME/Block3&4 | *CCED(50%), Tethys(30%), MEPME(20%) | NA | Dec. | Gross profit |
E&P | MEPUK/Alba | *Ithaca Energy(23.4%), MEPUK(13.3%), others | Crude oil: 10 thousand BD | Dec. | Gross profit |
E&P | MEPIT/Tempa Rossa | *Total(50%), Shell(25%), MEPIT(25%) | NA | Dec. | Gross profit |
E&P | MEPAU/Greater Enfield | *Woodside(60%), MEPAU(40%) | NA | Dec. | Gross profit |
E&P | MEPAU/Kipper | *EM(32.5%), BHP(32.5%), MEPAU(35%) | NA | Dec. | Gross profit |
E&P | MEPAU&AWE/Casino, | *Cooper(50%), AWE(25%), MEPAU(25%) | Gas/condensate: 5 thousand BD | Dec. | Gross profit |
Henry, Netherby | |||||
E&P | MEPAU/Meridian | *WestSide(51%), MEPAU(49%) | Gas: 7 thousand BD | Dec. | Gross profit |
E&P | MOEX North | *Shell(80%), MOEX NA(20%) | NA | Dec. | Gross profit |
America/Kaikias | |||||
E&P | MEPTX/Eagle Ford | *Mesquite(50%), KNOC(25%), Venado Oil&Gas (12.5%), MEPTX(12.5%) | Gas/condensate/NGL:81 thousand BD | Dec. | Gross profit |
E&P | MEPUSA/Marcellus | *Chesapeake(32.17%), ALTA(32.17%), Equinor(15.49%), MEPUSA(15.49%), others | Gas: 2,479mmbtu/day | Dec. | Gross profit |
33
Power generation portfolio
Net generation capacity (Mitsui's share): 11.0GW
(Gross generation capacity: 40GW)
(As of end of March 2021)
Renewable Energy | Merchant | |||
2% | ||||
15% | ||||
Americas | ||||
27% | Asia, | |||
Coal | Australia | |||
By Energy | By Region | 41% | Merchant/ | |
18% | ||||
Source | Contracted | |||
Gas | Europe, Middle | |||
67% | East, Africa | Contracted | ||
32% | 98% |
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34
Breakdown of Valuation gain/loss special factors
(Unit: ¥billion)
FY Mar/2020 | 1Q | 2Q | 3Q | 4Q | Full year |
Mineral & Metal Resources | |||||
Moatize/Nacala impairment | -17.7 | -17.7 | |||
Total | 0.0 | 0.0 | -17.7 | 0.0 | -17.7 |
Energy | |||||
MEPMOZ/Recorded DTA | 13.2 | 13.2 | |||
MEPTX/Eagle Ford impairment | -18.0 | -18.0 | |||
MEPAU/Greater Enfield impairment | -13.8 | -13.8 | |||
MEPIT/Tempa Rossa impairment | -12.5 | -12.5 | |||
MOECO/Kaikias impairment | -3.2 | -3.2 | |||
Others | 1.0 | -0.2 | 0.4 | 0.1 | 1.3 |
Total | 14.2 | -0.2 | 0.4 | -47.4 | -33.0 |
Machinery & Infrastructure | |||||
Drillship comprehensive allowance | -0.9 | -0.1 | -0.2 | -1.2 | |
IPP-related: Market values of power contracts | -0.2 | -0.3 | -0.7 | -0.3 | -1.5 |
Moatize/Nacala impairment | -4.4 | -4.4 | |||
Overseas railway impairment | -3.7 | -3.7 | |||
Others | -0.1 | 0.2 | -0.6 | -3.0 | -3.5 |
Total | -1.2 | -0.2 | -5.7 | -7.2 | -14.3 |
Chemicals | |||||
Others | -1.7 | -0.4 | 6.5 | 2.2 | 6.6 |
Total | -1.7 | -0.4 | 6.5 | 2.2 | 6.6 |
Iron & Steel Products | |||||
Others | -0.1 | -0.1 | |||
Total | 0.0 | 0.0 | 0.0 | -0.1 | -0.1 |
Lifestyle | |||||
Accountable impairment | -5.6 | -0.8 | -6.4 | ||
XINGU fixed asset impairment | -9.3 | -9.3 | |||
Others | 0.1 | -0.8 | -1.0 | -0.5 | -2.2 |
Total | 0.1 | -0.8 | -6.6 | -10.6 | -17.9 |
Innovation & Corporate Development | |||||
Others | -0.9 | -1.1 | -1.0 | -3.4 | -6.4 |
Total | -0.9 | -1.1 | -1.0 | -3.4 | -6.4 |
FY Mar/2021 | 1Q | 2Q | 3Q | 4Q | Full year |
Mineral & Metal Resources | |||||
Moatize/Nacala impairment | -4.1 | -15.6 | -39.1 | -58.9 | |
Others | -1.7 | -2.9 | -0.3 | -4.9 | |
Total | -4.1 | -17.3 | -42.0 | -0.3 | -63.7 |
Energy | |||||
DTA from U.S. subsidiary reorganization | 39.0 | 39.0 | |||
MEPIT/Tempa Rossa impairment | -23.4 | 5.9 | -17.5 | ||
MEPAU impairment etc. | -11.5 | -11.5 | |||
Others | -1.2 | -1.0 | 0.0 | -1.3 | -3.5 |
Total | -1.2 | -1.0 | 15.6 | -6.9 | 6.5 |
Machinery & Infrastructure | |||||
IPP-related: MtM of power contracts | -0.4 | -0.7 | 0.7 | 0.4 | 0.0 |
Rolling stock lease business impairment | -4.9 | -4.2 | 0.2 | -8.9 | |
Moatize/Nacala impairment | -1.0 | -3.9 | -9.8 | -14.7 | |
UK passenger transportation business losses | -11.0 | -11.0 | |||
Others | -0.5 | -3.1 | -3.9 | -7.5 | |
Total | -1.4 | -10.0 | -16.4 | -14.3 | -42.1 |
Chemicals | |||||
Others | 1.9 | 0.6 | 6.0 | 0.8 | 9.3 |
Total | 1.9 | 0.6 | 6.0 | 0.8 | 9.3 |
Iron & Steel Products | |||||
Others | 0.2 | -0.1 | 0.2 | 0.3 | |
Total | 0.0 | 0.2 | -0.1 | 0.2 | 0.3 |
Lifestyle | |||||
IHH ops in India: goodwill impairment | -2.5 | -2.5 | |||
Fashion business/valuation loss, DTA reversal | -1.4 | -1.4 | |||
Others | 0.8 | -0.8 | 2.7 | 2.7 | |
Total | -1.7 | 0.0 | -0.8 | 1.3 | -1.2 |
Innovation & Corporate Development | |||||
Reversal of impairment loss on land | 4.3 | 4.3 | |||
Reversal of land-holding related tax liabilities | 1.9 | 1.9 | |||
Others | -1.2 | -1.2 | |||
Total | 0.0 | 0.0 | 5.0 | 0.0 | 5.0 |
35
Mineral & Metal Resources COCF, PAT above forecast mainly due to strong iron ore prices
Results | FY | FY | Change | Main factors | FY Mar/2021 | |||
Mar/2020 | Mar/2021 | forecasts | ||||||
Core operating CF | 243.7*1 | 308.1 | +64.4 | ↑Iron ore in Australia (increase in sales price) | 285.0 | |||
↑Vale dividend increase | ||||||||
↓Coal in Australia (decline in sales price) | ||||||||
Profit for the year | 183.3 | 179.9 | -3.4 | |||||
(Valuation gain/loss special | 155.0 | |||||||
(-17.7) | (-63.7) | (-46.0) | ||||||
factors) | ||||||||
Gross profit | 226.0 | 251.2 | +25.2 | ↑Iron ore in Australia (increase in sales price) | ||||
↓Coal in Australia (decline in sales price) | ||||||||
Profit (Loss) from equity | 59.2 | 70.4 | +11.2 | ↑Iron ore in Australia (increase in sales price) | ||||
investments | ↑Collahuasi copper mine (increase in sales price, increased volume) | |||||||
Dividend income | 25.2 | 59.8 | +34.6 | ↑Vale, Iron ore in Australia (increased dividend) | ||||
Selling, general and | -41.6 | -72.3 | -30.7 | ↓Impairment loss for Moatize and Nacala projects | ||||
administrative expenses | ↓Impairment loss for Caserones project | |||||||
Others | -85.5 | -129.2 | -43.7 | ↓Impairment loss for Moatize and Nacala projects | ||||
↓Coal and Iron ore in Australia (FOREX) | ||||||||
Total assets | 1,921.9 | 2,566.5 | +644.6 | |||||
Investment CF | (Unit: billion yen) | |||||
■ IN | ||||||
■ OUT | ||||||
16.8 | ||||||
6.7 | ||||||
-56.5 | -67.1 | |||||
FYFY
Mar/2020 Mar/2021
Main investments and recycling
(IN) Sale of Caserones copper mine business (OUT) Iron ore operations in Australia -39.3
Coal operations in Australia -19.6
Results of main affiliated companies
Company name | |||
Consolidated | Iron ore operations in Australia*2 | ||
Coal operations in Australia*2 | |||
Moatize coal and Nacala infrastructure | |||
projects | |||
Equity | Oriente Copper Netherlands | ||
method- | Japan Collahuasi Resources | ||
Inner Mongolia Erdos Electric Power & | |||
Metallurgical | |||
FY | FY | Change |
Mar/2020 | Mar/2021 | |
171.5 | 224.2 | +52.7 |
27.4 | -5.8 | -33.2 |
-20.6 | -77.9 | -57.3 |
-5.7 | -1.5 | +4.2 |
8.9 | 14.7 | +5.8 |
5.9 | 7.4 | +1.5 |
Quarterly trends | |
Core operating CF | ■ Q1 ■ Q2 |
■ Q3 ■ Q4 | |
308.1 | |
243.7 | 102.9 |
73.5 | |
50.4 | 108.0 |
62.1 | 55.3 |
57.7 | 41.9 |
FY | FY |
Mar/2020*1 | Mar/2021 |
Profit for the year ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
183.3 | 179.9 |
47.4 | |
34.0 | 103.0 |
52.9 | 5.6 |
39.1 | |
49.0 | 32.2 |
FY | FY |
Mar/2020 | Mar/2021 |
*1. | Revised to reflect deduction for repayment of lease liability | 36 |
*2. | A portion of profit/loss was accounted for by the equity method | |
Energy | COCF, PAT above forecast mainly due to strong prices of oil and gas | ||||||||||||
Results | FY | FY | Change | Main factors | FY Mar/2021 | ||||||||
Mar/2020 | Mar/2021 | forecasts | |||||||||||
Core operating CF | *1,2 | 123.2 | -83.3 | ↓Decline in oil and gas prices, decrease | in | 110.0 | |||||||
dividends from LNG6 projects | |||||||||||||
206.5 | |||||||||||||
Profit for the year | 57.8*2 | 27.2 | -30.6 | 20.0 | |||||||||
(Valuation gain/loss special | (-33.0) | (6.5) | (+39.5) | ||||||||||
factors) | |||||||||||||
Gross profit | 141.1 | 62.9 | -78.2 | ↓Decline in oil and gas prices | |||||||||
↓Decrease in LNG trading revenue | |||||||||||||
Profit (Loss) from equity | ↓Decline in oil and gas prices | ||||||||||||
45.2 | 18.8 | -26.4 | |||||||||||
↓Absence of deferred tax asset for MEPMOZ included in FY Mar/2020 | |||||||||||||
investments | |||||||||||||
↑Increase in profit from start of production of all Cameron LNG trains in US | |||||||||||||
Dividend income | 52.7 | 25.1 | -27.6 | ↓Decrease in dividends from LNG6 projects | |||||||||
Selling, general and | -44.5 | -47.2 | -2.7 | ||||||||||
administrative expenses | |||||||||||||
↑Recorded deferred tax asset in accordance with reorganization of US | |||||||||||||
Others | -136.7 | -32.4 | +104.3 | energy subsidiaries | |||||||||
↓Impairment loss for Tempa Rossa oil field project | |||||||||||||
↑Absence of impairment loss for E&P business in FY Mar/2020 | |||||||||||||
Total assets | 2,566.3 | 2,566.3 | 0.0 | ||||||||||
Results of main affiliated companies | Quarterly trends | ||||||||||||
Investment CF (Unit: billion yen) ■ IN
■ OUT
13.77.4
▲120.8 ▲133.3
FYFY
Mar/2020*2Mar/2021*2Main investments and recycling
(OUT) LNG projects under development (Area1, Arctic LNG2)
Oil & gas production projects -37.0 Power generation businesses
Company name | FY | FY | Change |
Mar/2020 | Mar/2021 | ||
Core operating CF | ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
Profit for the year ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
Mitsui Oil Exploration*3 | 22.0 | 2.7 | -19.3 | |
Mitsui E&P Australia | -14.2 | -10.0 | +4.2 | |
Consolidated | AWE | -4.5 | -1.2 | +3.3 |
Mitsui E&P USA | 5.0 | 1.9 | -3.1 | |
MEP Texas Holdings | -17.7 | -0.4 | +17.3 | |
Mitsui & Co. Energy Trading Singapore | 7.2 | 7.9 | +0.7 | |
Equity | Mitsui E&P Mozambique Area 1 | 11.2 | -0.6 | -11.8 |
Japan Australia LNG (MIMI)*4 | - | - | - | |
method- | ||||
Japan Arctic LNG | 4.1 | -6.0 | -10.1 |
206.5 |
22.4 |
67.7 |
57.7 |
58.7 |
123.2 |
20.5 |
42.5 |
23.8 |
36.4 |
57.8 | ||
31.5 | ||
24.2 | 27.2 | 0.5 |
40.4 | 30.4 | |
3.5 | ||
-38.3 | -7.2 | |
*1. | Revised to reflect deduction for repayment of lease liability |
*2. | Revised to reflect restructuring associated with structural reorganization in April 2020 |
*3. | A portion of profit/loss was accounted for by the equity method |
*4. | Results not disclosed due to confidentiality agreement |
FYFY
Mar/2020*1,2Mar/2021
37
FY | FY |
Mar/2020*2 | Mar/2021 |
COCF met forecasts while PAT fell short mainly due to losses incurred by | ||
Machinery & Infrastructure | ||
the UK passenger transportation business | ||
Results | FY | FY | Change | Main factors | FY Mar/2021 | ||
Mar/2020 | Mar/2021 | forecasts | |||||
Core operating CF | *1,2 | 78.7 | -8.1 | ↓losses incurred by the UK passenger | 65.0 | ||
transportation business | |||||||
86.8 | |||||||
Profit for the year | 89.4*2 | 45.9 | -43.5 | 35.0 | |||
(Valuation gain/loss special | (-14.3) | (-42.1) | (-27.8) | ||||
factors) | |||||||
Gross profit | 134.6 | 107.7 | -26.9 | ↓Decrease in profit for railway, construction & industrial machinery | |||
businesses and automotive related subsidiaries | |||||||
Profit (Loss) from equity | 88.4 | 95.3 | +6.9 | ↑Strong automotive sale in Canada | |||
investments | |||||||
Dividend income | 5.1 | 3.9 | -1.2 | ||||
Selling, general and | -133.4 | -132.9 | +0.5 | ||||
administrative expenses | |||||||
Others | -5.3 | -28.1 | -22.8 | ↓Railroad vehicle leasing company impairment | |||
Total assets | 2,360.3 | 2,291.3 | -69.0 | ||||
Investment CF | (Unit: billion yen) | |||||
■ IN | ||||||
■ OUT | ||||||
73.4 | ||||||
42.3 | ||||||
-53.0 | ||||||
-118.1 | ||||||
FY | FY | |||||
Mar/2020*2 | Mar/2021*2 |
Main investments and recycling
(IN) Sale of power generation business in North America
Results of main affiliated companies
Company name | FY | FY | Change | |
Mar/2020 | Mar/2021 | |||
Consolidated | Mitsui & Co. Plant Systems | 3.6 | 2.2 | -1.4 |
Rolling stock leasing businesses*3 | 2.8 | -9.2 | -12.0 | |
Construction & industrial machinery | 6.0 | 7.7 | +1.7 | |
businesses*3 | ||||
IPP businesses | 27.6 | 27.7 | +0.1 | |
Equity | FPSO/FSO leasing businesses | 3.9 | 7.1 | +3.2 |
Gas distribution companies | 11.3 | 6.8 | -4.5 | |
method- | Penske Automotive Group | 7.7 | 9.5 | +1.8 |
Truck leasing and rental businesses | 9.0 | 10.7 | +1.7 | |
Asian motor vehicle businesses | 7.2 | 3.6 | -3.6 | |
VLI | -1.0 | 0.0 | +1.0 | |
*1. Revised to reflect deduction for repayment of lease liability
*2. Revised to reflect restructuring associated with structural reorganization in April 2020
*3. A portion of profit/loss was accounted for by the equity method
Quarterly trends
Core operating CF | ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
86.8 | |
78.7 | |
26.9 | 14.2 |
22.1 | 38.2 |
19.6 | |
13.4 | |
18.2 | 12.9 |
FY | FY |
Mar/2020*1,2 | Mar/2021 |
38
Profit for the year ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
89.4 | |
28.2 | |
24.2 | 45.9 |
10.7 | |
19.7 | 11.8 |
4.9 | |
17.3 | 18.5 |
FY | FY |
Mar/2020*2 | Mar/2021 |
Chemicals | COCF, PAT close to almost as forecasted due to strong trading | ||||||||||
Results | FY | FY | Change | Main factors | FY Mar/2021 | ||||||
Mar/2020 | Mar/2021 | forecasts | |||||||||
Core operating CF | *1 | 62.5 | +26.7 | ↑Strong chemicals trading and sales of | 65.0 | ||||||
agricultural related businesses | |||||||||||
35.8 | |||||||||||
Profit for the year | 22.3 | 43.5 | +21.2 | ||||||||
(Valuation gain/loss special | 40.0 | ||||||||||
(6.6) | (9.3) | (+2.7) | |||||||||
factors) | |||||||||||
Gross profit | 116.8 | 124.9 | +8.1 | ↑Strong chemicals trading and sales of agricultural related | |||||||
businesses | |||||||||||
Profit (Loss) from equity | 11.5 | 11.3 | -0.2 | ||||||||
investments | |||||||||||
Dividend income | 2.7 | 3.0 | +0.3 | ||||||||
Selling, general and | -101.9 | -95.5 | +6.4 | ↑Miscellaneous | |||||||
administrative expenses | |||||||||||
Others | -6.8 | -0.2 | +6.6 | ↑Recorded insurance proceeds at a business in North America | |||||||
Total assets | 1,217.7 | 1,345.5 | +127.8 | ||||||||
Investment CF (Unit: billion yen)
■ IN
■ OUT
28.0
12.8
-29.2-26.8
FYFY
Mar/2020 Mar/2021
Main investments and recycling
(IN) San-ei Sucrochemical sale +13.5
Results of main affiliated companies
Company name | FY | FY | Change |
Mar/2020 | Mar/2021 | ||
MMTX | 1.6 | 1.7 | +0.1 | |
Consolidated | ||||
MITSUI & CO. PLASTICS | 3.4 | 3.3 | -0.1 | |
Novus International | -2.2 | -3.1 | -0.9 | |
Overseas pesticide businesses | 2.7 | 3.3 | +0.6 | |
Equity- method | Japan-Arabia Methanol Co. | 1.3 | 0.7 | -0.6 |
Quarterly trends
Core operating CF | ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
62.5 | |
14.0 | |
35.8 | |
8.5 | 25.8 |
14.0 | 7.0 |
6.8 | 15.7 |
6.5 | |
FY | FY |
Mar/2020*1 | Mar/2021 |
Profit for the year ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
43.5 | ||
11.1 | ||
22.3 | ||
5.7 | 21.7 | |
11.9 | 4.4 | |
0.6 | ||
4.1 | 6.3 | |
FY | FY | |
Mar/2020 | Mar/2021 |
*1. Revised to reflect deduction for repayment of lease liability | 39 |
Iron & Steel Products | COCF, PAT above forecast due to strong trading | ||||||||||||||||
Results | FY | FY | Change | Main factors | FY Mar/2021 | Investment CF | (Unit: billion yen) | ||||||||||
Mar/2020 | Mar/2021 | forecasts | |||||||||||||||
■ IN | |||||||||||||||||
Core operating CF | 2.2*1 | 2.0 | -0.2 | 0.0 | ■ OUT | ||||||||||||
Profit for the year | 4.7 | 2.1 | -2.6 | ||||||||||||||
(Valuation gain/loss special | 0.0 | ||||||||||||||||
(-0.1) | (0.3) | (+0.4) | |||||||||||||||
factors) | |||||||||||||||||
Gross profit | 24.6 | 21.2 | -3.4 | 8.8 | |||||||||||||
Profit (Loss) from equity | 7.1 | ||||||||||||||||
13.1 | 4.3 | -8.8 | ↓Drop in factory operating rate during first half | ||||||||||||||
investments | |||||||||||||||||
Dividend income | 1.9 | 1.4 | -0.5 | ||||||||||||||
-1.3 | -1.3 | ||||||||||||||||
Selling, general and | -27.2 | -22.0 | +5.2 | ||||||||||||||
administrative expenses | FY | FY | |||||||||||||||
Others | -7.7 | -2.8 | +4.9 | Mar/2020 | Mar/2021 | ||||||||||||
Main investments and recycling | |||||||||||||||||
Total assets | 539.6 | 566.0 | +26.4 | ||||||||||||||
- | |||||||||||||||||
Results of main affiliated companies
Company name | FY | FY | Change | |
Mar/2020 | Mar/2021 | |||
Consol idated | Mitsui & Co. Steel*2 | 3.8 | 3.9 | +0.1 |
NIPPON STEEL TRADING*3 | 4.5 | - | - | |
Equity | ||||
Numit*4 | 1.4 | 2.5 | +1.1 | |
method- | GRI Renewable Industries | -0.2 | 1.3 | +1.5 |
Gestamp companies | 2.4 | -6.7 | -9.1 | |
*1. Revised to reflect deduction for repayment of lease liability
*2. A portion of profit/loss was accounted for by the equity method
*3. Business results undisclosed as the earnings of listed companies not yet announced
*4. Reorganization of investment structure
Quarterly trends
Core operating CF | ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
2.0 | ||
2.2 | 2.6 | |
1.0 | ||
1.6 | 0.2 | 1.6 |
-0.6 | -2.1 | |
-0.1 |
FYFY
Mar/2020*1Mar/2021
40
Profit for the year | ■ Q1 ■ Q2 |
■ Q3 ■ Q4 | |
2.1 | |
4.7 | 4.9 |
1.2 | |
0.8 | |
1.2 | 3.0 |
1.5 | |
-1.3 | |
-4.5 | |
FY | FY |
Mar/2020 | Mar/2021 |
COCF, PAT above forecast due to strong trading and mitigation of COVID-19 impact on | ||
Lifestyle | ||
hospital business | ||
FY | FY | FY Mar/2021 | ||||||
Results | Change | Main factors | ||||||
Mar/2020 | Mar/2021 | forecasts | ||||||
Core operating CF | 20.5*1 | 19.8 | -1.0 | 15.0 | ||||
Profit for the year | 32.0 | 12.7 | -19.3 | |||||
(Valuation gain/loss special | 0.0 | |||||||
(-17.9) | (-1.2) | (+16.7) | ||||||
factors) | ||||||||
Gross profit | 134.9 | 133.8 | -1.1 | |||||
Profit (Loss) from equity | ↓Decrease in food, fashion and service-related subsidiaries companies | |||||||
35.0 | 13.4 | -21.6 | ||||||
investments | ↓Absence of sale of CLA, Southeast Asian businesses in FY Mar/2020 | |||||||
Dividend income | 4.2 | 5.6 | +1.4 | |||||
Selling, general and | -139.3 | -129.4 | +9.9 | ↑Less burden on fashion business by making Asian consolidated | ||||
administrative expenses | subsidiary in equity-method affiliate | |||||||
↓Absence of less burden of corporate income tax from partial sale of | ||||||||
holding in Recruit recorded in FY Mar/2020 | ||||||||
Others | -2.8 | -10.7 | -7.9 | ↓Absence of sale of shares in Sogo Medical Holdings, etc. in FY | ||||
Mar/2020 | ||||||||
↑Absence of XINGU fixed asset impairment in FY Mar/2020 | ||||||||
↑Absence of impairment loss at Accountable, a healthcare staffing | ||||||||
business in the US and FVTPL valuation loss in FY Mar/2020 | ||||||||
Total assets | 1,907.6 | 2,009.3 | +101.7 | |||||
Investment CF (Unit: billion yen) |
■ IN |
■ OUT |
105.3
21.5
-23.0
-57.6
FYFY
Mar/2020 Mar/2021
Main investments and recycling (IN) Fuji Pharma sale +9.4
Results of main affiliated companies | Quarterly trends | |
Company name | FY | FY | Change | |
Mar/2020 | Mar/2021 | |||
Consolid ated | Domestic food & retail | 4.4 | 4.2 | -0.2 |
management businesses | ||||
Fashion businesses | 2.4 | 0.0 | -2.4 | |
Mitsui Sugar*2 | 1.2 | - | - | |
Equity | WILSEY FOODS | 3.9 | 2.8 | -1.1 |
IHH Healthcare | 4.9 | 1.6 | -3.3 | |
method- | PHC Holdings*2 | - | - | - |
AIM SERVICES | 2.4 | 0.9 | -1.5 | |
Mit-Salmon Chile | -0.2 | -2.8 | -2.6 | |
*1. Revised to reflect deduction for repayment of lease liability
Core operating CF | ■ Q1 | ■ Q2 |
■ Q3 | ■ Q4 |
20.5 | |
19.8 | |
9.8 | 8.5 |
8.4 | 10.0 |
7.4 | 3.6 |
-5.1 | -2.3 |
FY | FY |
Mar/2020*1 | Mar/2021 |
41
32.0 | ■ Q1 ■ Q2 |
Profit for the year | |
32.0 | ■ Q3 ■ Q4 |
13.9 | 12.7 |
1.2 | 13.1 |
9.3 | |
7.6 | 11.5 |
-5.6 | |
-6.3 | |
FY | FY |
*2. Business results undisclosed as the earnings of listed companies not yet announced, or results not disclosed due to confidentiality agreement
Mar/2020 | Mar/2021 |
COCF, PAT above forecasts due to FVTPL gains, strong commodities | |
Innovation & Corporate Development | |
trading and strong performance of ICT core affiliates | |
Results | FY | FY | Change | Main factors | FY Mar/2021 | ||
Mar/2020 | Mar/2021 | forecasts | |||||
Core operating CF | 3.9 | 55.1 | +51.2 | ↑Strong FVTPL valuation gain, commodities trading | 45.0 | ||
and ICT`s core affiliates | |||||||
*1 | |||||||
Profit for the year | 14.6 | 50.2 | +35.6 | ||||
(Valuation gain/loss special | 40.0 | ||||||
(-6.4) | (5.0) | (+11.4) | |||||
factors) | |||||||
Gross profit | 60.1 | 107.0 | +46.9 | ↑Strong FVTPL valuation gain, commodities trading and ICT`s core | |||
affiliates | |||||||
Profit (Loss) from equity | 17.0 | 13.9 | -3.1 | ||||
investments | |||||||
Dividend income | 3.3 | 3.8 | +0.5 | ||||
Selling, general and | -64.5 | -63.7 | +0.8 | ||||
administrative expenses | |||||||
Others | -1.3 | -10.8 | -9.5 | ↓Absence of sale of Singapore property business, etc. in FY Mar/2020 | |||
↑Gains on reversals of impairment losses on land | |||||||
Total assets | 1,198.3 | 1,191.8 | -6.5 | ||||
Investment CF | (Unit: billion yen) | |||||
■ IN | ||||||
■ OUT | ||||||
49.8 | ||||||
12.5 | ||||||
-49.7 | ||||||
-79.8 | ||||||
FY | FY | |||||
Mar/2020 | Mar/2021 |
Main investments and recycling
(OUT) Integrated block development of Otemachi One Project -37.8
Results of main affiliated companies
Company name | FY | FY | Change | |
Mar/2020 | Mar/2021 | |||
MITSUI KNOWLEDGE INDUSTRY | 4.2 | 5.1 | +0.9 | |
Consolidated | Mitsui & Co. Global Logistics, Ltd. | 2.9 | 2.4 | -0.5 |
Mitsui Bussan Commodities | 2.0 | 4.8 | +2.8 | |
Mitsui & Co. Asset Management | 1.9 | 1.8 | -0.1 | |
Holdings | ||||
Mitsui & Co. Real Estate | 1.5 | 2.3 | +0.8 | |
Overseas Real Estate Businesses | 4.6 | 0.5 | -4.1 | |
Equity | QVC Japan | 5.4 | 6.4 | +1.0 |
3.9 | 1.7 | -2.2 | ||
method- | JA Mitsui Leasing | |||
SABRE INVESTMENTS*2 | - | - | - |
Quarterly trends | |
Core operating CF | ■ Q1 ■ Q2 |
■ Q3 ■ Q4 | |
55.1 | |
15.0 | |
9.2 | |
18.2 | |
3.9 | |
4.8 | 12.7 |
4.8 | |
-3.6 | |
-2.1 | |
FY | FY |
Mar/2020*1 | Mar/2021 |
Profit for the year | ■ Q1 ■ Q2 |
■ Q3 ■ Q4 | |
50.2 | |
12.8 | |
13.4 | |
14.6 | 13.5 |
8.6 | |
4.4 | 10.5 |
2.1 | |
-0.5 | |
FY | FY |
Mar/2020 | Mar/2021 |
*1. | Revised to reflect deduction for repayment of lease liability | 42 |
*2. | Results not disclosed due to confidentiality agreement |
Mitsui's Corporate Governance
Governance structure
Organizational format: | Advisory Bodies to the Board of Directors: |
Company with Audit & Supervisory Board | 1. Governance Committee (Committee chair: Chairman |
Directors: | of the Board of Directors) |
2. Nomination Committee (Committee chair: External | |
14 (of whom 5 are External Directors) | |
Member) | |
Audit & Supervisory Board Members: | |
3. Remuneration Committee (Committee chair: External | |
5 (of whom 3 are external Audit & Supervisory Board | |
Member) | |
members) | |
General meeting of shareholders
Election / Dismissal | Election / Dismissal | Election / Dismissal | ||||||||||||
Governance | ||||||||||||||
Committee | ||||||||||||||
Reporting | Auditing | Advice | ||||||||||||
Independent | Audit & | Board of | Nomination | |||||||||||
Auditors | Supervisory Board | Directors | Committee | |||||||||||
Coordination | Appointment | Placing | Remuneration | |||||||||||
Committee | ||||||||||||||
and dismissal | important | |||||||||||||
of Managing | items on the | |||||||||||||
Accounting | Auditing | Officers, | agenda, | |||||||||||
Coordination | supervision of | reporting on | ||||||||||||
and audits | ||||||||||||||
execution of | business | |||||||||||||
business | execution | |||||||||||||
Internal Auditing Division | Framework for execution of Business | |||||||||||||
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43
Mitsui's Corporate Governance
(Following June 18, 2021 General Meeting of Shareholders)
Directors
Board | & Audit |
Members | Supervisory |
Name | Position at Mitsui | Governance | Nomination | Remuneration | Female | Foreign |
Committee | Committee | Committee | nationality | |||
Tatsuo Yasunaga | Representative Director, Chairman of the Board | ◎ | 〇 | |||
Kenichi Hori | Representative Director, President & CEO | 〇 | 〇 | |||
Takakazu Uchida | Representative Director, Executive Vice President | 〇 | ||||
Hirotatsu Fujiwara | Representative Director, Executive Vice President | |||||
Shinichiro Omachi | Representative Director, Executive Vice President | 〇 | ||||
Yoshio Kometani | Representative Director, Sr. Executive Managing Officer | |||||
Miki Yoshikawa | Representative Director, Sr. Executive Managing Officer | |||||
Motoaki Uno | Representative Director, Sr. Executive Managing Officer | |||||
Yoshiaki Takemasu | Representative Director, Executive Managing Officer | 〇 | ||||
Izumi Kobayashi | Director (external, independent) | ◎ | 〇 | 〇 | ||
Jenifer Rogers | Director (external, independent) | 〇 | 〇 | 〇 | ||
Samuel Walsh | Director (external, independent) | 〇 | 〇 | |||
Takeshi Uchiyamada | Director (external, independent) | 〇 | ||||
Masako Egawa | Director (external, independent) | 〇 | 〇 | 〇 | ||
Makoto Suzuki | Full-time Audit & Supervisory Board member | |||||
Kimiro Shiotani | Full-time Audit & Supervisory Board member | |||||
Haruka Matsuyama | Audit & Supervisory Board member | 〇 | 〇 | |||
(external, independent) | ||||||
Hiroshi Ozu | Audit & Supervisory Board member | 〇 | ||||
(external, independent) | ||||||
Kimitaka Mori | Audit & Supervisory Board member | ◎ | ||||
(external, independent) | ||||||
Notes: 1. The election of the 14 directors and Audit & Supervisory Board member Kimitaka Mori will be discussed at the general meeting of shareholders |
2. The ◎ mark indicates the chairperson of the relevant committee
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44
Mitsui's Corporate Governance
Initiatives related to improvement of Board effectiveness
The effectiveness of the Board of Directors is evaluated every year in order to check actions on issues identified in the previous fiscal year and identify issues to be tackled in the next fiscal year. The process emphasizes the maintenance of a PDCA cycle for the improvement of effectiveness of the Board of Directors.
FY Mar/2021 initiatives to improve effectiveness
Further improvement in the operations of Board meetings
- Extension of time for pre-briefings on important matters
- Implementation of two free discussion sessions
- Enhancement of Board meeting materials, including information about CF/IRR trends relating to projects affected by impairment losses
- Enhancement of progress reports on projects approved by the Board of Directors
Further improvement of the effectiveness of the Board of Directors in relation to discussions about overall strategies
Implementation of two free discussion sessions focusing on the themes of sustainable revenue growth strategy considering ESG and Mitsui & Co.'s Materiality as well as DX strategy (first session) and the Mitsui Engagement Survey (second session)
Clarification of the expected roles of the advisory committees
Revisions to the Mitsui & Co., Ltd. Corporate Governance and Internal Control Principles to classify the functions of the Governance Committee, Nomination Committee, and Remuneration Committee and establish roles and expectations for each of these committees
Steps toward further
improvement of effectiveness
Ongoing consideration of the optimal overall number of directors, the ratio of external to internal members, the number of internal directors, and organizational design
- We will continue to discuss and consider the optimal overall number of directors, the ratio of external to internal members, the number of internal directors, and organizational design, with reference to trends in other companies. These matters will be discussed primarily by the Governance Committee.
For details, please refer to the below link to our company website.
https://www.mitsui.com/jp/en/company/outline/governance/outlook/pdf/e_eoe_202103.pdf
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45
Mitsui's Corporate Governance
Structure of Remuneration
Remuneration of Directors |
(excluding External Directors) |
◼ The compensation package comprises a fixed basic |
Share performance- linked restricted stock
Performance-related bonus based on profit for the year and core operating cash flow
Purchase of Mitsui shares from his/her fixed basic remuneration
through Mitsui Executives'
Shareholding Association (also applicable to external members)
Fixed basic remuneration
Medium- to long-
term incentive
Stock-based compensation
(Capped at a total amount of ¥500mn/year)
Short-term
incentive
Performance-related bonus
(Capped at a total amount of ¥700mn/year)
Purchase of
Mitsui shares
Fixed basic remuneration
(Capped at a total amount of ¥1bn/year)
remuneration, performance-related bonuses based | |
on KPIs, and share performance-linked restricted | |
stock as medium- to long-term incentives. | |
◼ Share performance-linked restricted stock: Number | |
of shares is dependent on growth rate of Mitsui | |
share price compared to that of the TOPIX index. | |
Transfer restriction period is 30 years or until | |
retirement. | |
◼ Performance-related bonus: Total compensation = | |
Directors | |
(Profit for the year x 50% x 0.1%) + (Core operating | |
cash flow x 50% x 0.1%) | |
◼ A certain amount of fixed basic remuneration will be | |
allocated to Mitsui Executives' Shareholding | |
Association for monthly purchases of Mitsui shares. |
External Directors
Audit & Supervisory Board Members (Capped at a total amount of ¥240mn/year)
Note 1: No retirement compensation is paid
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46
Mitsui & Co. Investor Day 2021
Date: Tuesday June 8, 2021
13:30hrs to 16:20hrs
Live online will be broadcasted.
TIME | PROGRAM | SPEAKERS |
13:30-14:30 | Opening Remarks, Management Policy | CEO, CFO |
Business strategy 1: Mineral & Metal | COO, Mineral & Metal Resources | |
14:30-15:20 | Resources | Business Unit |
Business strategy 2: Energy | COO, Energy Business Unit I | |
COO, Energy Solutions Business | ||
Unit | ||
15:20-15:30 | Break | |
Business strategy 3: Market Asia | COO, Asia Pacific Business Unit | |
15:30-16:20 | ||
Business strategy 4: Healthcare / | COO, Wellness Business Unit | |
Nutrition | ||
16:20 | Ends |
- The above schedule is subject to change.
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47
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Mitsui & Co. Ltd. published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 05:03:12 UTC.