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Sojitz presentation 2014 04-01


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Sojitz corporate presentation April 1, 2014

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Sojitz presentation 2014 04-01

  1. 1. Copyright © Sojitz Corporation 2014 2 Sojitz Group Statement The Sojitz Group creates value and prosperity by connecting the world with a spirit of integrity.  Group Symbol  Group Statement  Group Slogan
  2. 2. Copyright © Sojitz Corporation 2014 3 The History of Sojitz Group Nissho Company 1902 Suzuki & Co., Ltd. established Iwai Sangyo Company 1896 Iwai & Co., Ltd. established Nichimen Corporation 1892 Japan Cotton Trading Co., Ltd. established Nissho Iwai Corporation 1968 Nissho Company and Iwai Sangyo Company merged 2003 Nissho Iwai-Nichimen Holdings Corporation established through the transfer of shares by Nichimen Corporation and Nissho Iwai Corporation, which become its subsidiaries 1982 Company name changed to Nichimen Corporation 2004 Subsidiaries Nichimen Corporation and Nissho Iwai Corporation merged to form Sojitz Corporation Name of holding company changed to Sojitz Holdings Corporation 2005 Sojitz Holdings Corporation merged with subsidiary Sojitz Corporation and company name changed to Sojitz Corporation 2014 10th Anniversary of Sojitz Corporation
  3. 3. Copyright © Sojitz Corporation 2014 4 Corporate Data Company Name Sojitz Corporation Established April 1, 2003 Capitalization 160,339 million yen President & CEO Yoji Sato Head Office 1-1, Uchisaiwaicho 2-chome, Chiyoda-ku, Tokyo 100-8691, Japan TEL +81-3-6871-5000 FAX +81-3-6871-2430 URL Corporate Governance Model Board of Corporate Auditors Stock Exchange Listings Tokyo Stock Exchange (As of December 31, 2013)
  4. 4. Copyright © Sojitz Corporation 2014 5 Financial Information  Consolidated Financial Highlights(JGAAP) (Year ended March 31, 2013) (As of March 31, 2013) Net sales 3,955.9 billion Ordinary income 34.5 billion Net income 14.3 billion Total assets 2,086.4 billion Net assets 382.5 billion Equity ratio 16.9% Net interest-bearing debt 616.2 billion Net DER 1.74 times  Credit Ratings * Corporate credit ratings are set by credit rating companies, which are third-party institutions, based on their own survey results. These ratings assess the level of certainty and financial stability of the company itself and whether it pays the principal and interest of corporate bonds issued by the company as promised. * Issuer credit ratings refer to the company's comprehensive ability to fulfill its obligations. The senior unsecured debt ratings cover obligations of more than one year senior unsecured debt, while the short-term credit ratings are for obligations of less than one year. Japan Credit Rating Agency, Ltd. (JCR) Moody's Investors Service Rating and Investment Information, Inc. (R&I) Standard & Poor's (S&P) Issuer Credit Ratings Senior Unsecured Debt Ratings Short-term Ratings BBB BBB J-2 Ba1 - - BBB - a-2 BBB - BBB - (As of January 31, 2014)
  5. 5. Copyright © Sojitz Corporation 2014 6 Sojitz Group's Global Network Number of Branches & Offices Domestic: 7 Overseas: 87 Number of Subsidiaries & Affiliates Domestic: 120 Overseas: 320 Number of Employees Non-consolidated: 2,253 Consolidated: 15,922 (As of December 31, 2013) The Sojitz Group is a general trading company with a worldwide network comprising over 400 group companies and operations in some 50 countries.
  6. 6. Copyright © Sojitz Corporation 2014 7 Sojitz Organizational Chart General Shareholders’ Meeting Internal Control Administration Dept. Board of Directors President & CEO Board of Corporate Auditors Corporate Auditors IT Planning Dept. Public Relations Dept. Corporate Accounting Dept. Forex & Securities Dept. Risk Management Planning Dept. Risk Management Dept. Structured Finance Dept. Finance Dept. Global Business Support & Promotion Dept. Legal Dept. Human Resources & General Affairs Dept. Internal Audit Dept. Corporate Planning Dept. Logistics & Insurance Dept. Investor Relations Office Machinery Division ・Automotive Unit ・Infrastructure Project & Industrial Machinery Unit ・Marine & Aerospace Unit Energy & Metal Division ・Energy Unit ・Metal & Utility Unit Consumer Lifestyle Business Division ・Foods & Agriculture Business Unit ・Forest Products & Lifestyle Unit Chemicals Division ・Chemicals Unit ・Ecological Materials & Resources Unit Secretariat Dept. Asset Management Dept. Investment Management Dept. (As of April 1, 2014)
  7. 7. Copyright © Sojitz Corporation 2014 8 Japan China Asia & Oceania The Americas Europe, Africa, Middle East, Russia & NIS Machinery Division  Export of automobiles  Renewable Energy  IPP  Industrial machinery  Sales and brokerage of ships, ship chartering, sale of ship equipment  Commercial aircraft sales representative  Sales of IT and related equipment; solutions and service; data centers  Business jets  Plants  Industrial machinery  Automobile assembly, sales, and distribution  Plants and IPP  Renewable Energy  Transportation infrastructure  Water business  Industrial machinery  Automobile assembly, sales and distribution; automobile dealerships  IPP  Renewable Energy  Transportation infrastructure  Industrial machinery  IT infrastructure and service  Automobile distribution  Plants and IPP  Renewable Energy  Water business  Industrial machinery  New building orders, ship chartering Energy&Metal Division  Sales and logistics of various types of energy (LNG, LPG, petroleum products, coal, etc.)  Sales of various types of steel- making materials (iron ore, coal, etc.)  Sales of steel products  Sales of various rare metals  Sales and trading of various types of industrial minerals  Sales and trading of coal  Sales of iron ore  Sales and trading of various rare metals  Sales and trading of various types of industrial minerals  Lime production  Logistics and trading of petroleum products  LNG  Coal mines and coal trading  Development of iron mines and iron ore trading  Rare metals (nickel)  Nonferrous metals (alumina)  Oil and gas development, including unconventional oil and gas  Iron ore trading  Rare metals (molybdenum, niobium)  Nonferrous metals (copper)  Oil and gas development  LNG  Trading of coal  Nuclear fuel enrichment  Rare metals (tungsten, vanadium, ferrochrome) mines and trading  Trading of various precious metals (palladium, platinum, etc.) Chemicals Division  Sales and import of rare earths, lithium compounds and industrial salt  Sales of solvents and thinners  Plastic resins  Sales of electronic materials  Sales of cellulose  Sales of cosmetics  Procurement of rare earths  Sales of organic chemicals  Sale of resin compounds  Manufacture and sales of methanol  Rare earth mines  Manufacture and sales of marine chemicals (potash, industrial salt)  Sales of flat-panel display materials  Sales of plastic resins  Manufacture and sales of dicyclopentadiene  Manufacture and sales of Metton® resins  Sales of butadiene  Manufacture and sales of packaging materials  Manufacture and sale of packaging materials  Sales of solvents  Sales of industrial films  Sales of plastic resins ConsumerLifestyle BusinessDivision  Sales of food materials  Sales of grain and feed  Sales of processed seafood  Fish farming  Sugar manufacturing  Confectioneries  Tobacco  Brand items, brand-name apparel  Airport retail  OEM textiles  Import and sales of timber, plywood, etc.  Foodstuff logistics  Confectionery ingredient processing  Seafood processing  Manufacture and sales of apparel  Sales of lumber  Chemical fertilizers  Food wholesales  Flour mills, port silos  Feed  Fish farming  Woodchips and afforestation  Brand items  Industrial park development and operation  Sales of grain  Bread production  Rice bran oil  Agriculture  Livestock raising  Sporting goods  Production of ingredients for bread  Consolidation and sales of specialized grain Food Lumber trading Woodchips (As of April 1, 2014)
  8. 8. Overview of Operations
  9. 9. Copyright © Sojitz Corporation 2014 Machinery Division 10 Businesses  Completely built-up (CBU) vehicle export business; local vehicle assembly, manufacturing and sales business; wholesale and retail business; component and tire exports; automotive equipment and engineering business Automotive Business Expanding the earnings base through cost- competitive products in growing markets Headquarters of Hyundai de Puerto Rico Businesses  IPP, Renewable Energy, Transportation, Water business  Plants (steel, fertilizer & chemical, energy, power)  Industrial machinery and production systems (surface mounters, bearings, equipment related to the environment and new energy, etc.) Hot strip mill for Tata Steel’s new integrated steel mill in India Automotive Unit Infrastructure Project & Industrial Machinery Unit IPP Business, Plant Business Expertise in IPP business as well as large-scale plant business
  10. 10. Copyright © Sojitz Corporation 2014 Machinery Division 11 Businesses  Newbuilding, second-hand ships, ship chartering, ship equipment sales business and ship-owning business  Commercial aircraft sales representative Military Aircraft & Equipment Sales Representative for The Boeing Company, Bombardier Inc., etc.; defense equipment agency and sales business; business- jet business Marine and Aerospace Businesses Comprehensive strengths in the marine business and the top share of the domestic commercial aircraft agency business Western Tokyo owned by Sojitz Marine & Aerospace Unit Boeing 787 Dreamliner IT Business Dept. Businesses  Sales and maintenance of communications and IT equipment; systems integration  Software development and sales  Data centers, cloud services and managed services  Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) High-speed Internet backbone Routers from Juniper Networks, Inc. The Ishikari Data Center of Sakura Internet Inc.
  11. 11. Copyright © Sojitz Corporation 2014 Energy & Metal Division 1 2 Energy Unit Products  Oil, natural gas, LNG (Liquefied Natural Gas), LPG (Liquefied Petroleum Gas), heavy oil, light oil LNG VesselBlock 1SE, offshore Qatar Oil and Gas Business •Promoting a regionally balanced securement and development of upstream oil and gas interest •In the oil and gas logistics and trading business, . engaging in import/off-shore/domestic trading business of petroleum products LNG Business •Investment in large-scale LNG project in Asia and the Middle East through LNG Japan(a group company owned 50% by Sojitz) •Considering LNG export from West African region, and North America where shale gas development is in progress •LNG spot imports and off-shore trading
  12. 12. Copyright © Sojitz Corporation 2014 Energy & Metal Division 1 3 Metal & Utility Unit Products CBMM Araxá Mine, Brazil Jellinbah East Coal Mine in Australia  Iron ore, iron ore pellets, hot briquetted iron, coal (coking coal, PCI coal), rare metals (molybdenum, niobium, nickel, vanadium tungsten, etc.), industrial minerals (fluorite, zircon, etc.), silicon metal, etc.  Steel products  Alumina, copper concentrates, copper, zinc, etc.  Coal (thermal coal), nuclear fuel cycle services and nuclear equipment, etc. Ferrous Materials Non-Ferrous Metals Coal and Power Utilities Metal Related Business •Promoting trading and investment of upstream concessions for a variety of ferrous materials and non-ferrous metals. •Sales of steel products to domestic/international market through Metal One Corporation (a joint venture owned 40% by Sojitz) Coal and Utilities Business •Investment in upstream coal interests and off-shore trading •Providing a full range of services of nuclear fuel cycle and various services related electric power business
  13. 13. Copyright © Sojitz Corporation 2014 Chemicals Division 14 Businesses  Basic chemicals: Ketone, ethanol, methanol, tank operation  Speciality chemicals: metton, synthetic rubber, resin, synthetic raw material Metton® Business A new environmentally friendly molding material Chemicals Unit Methanol Business Rising demand as a chemical raw material as well as for fuel applications Methanol manufacturing facilities in Indonesia
  14. 14. Copyright © Sojitz Corporation 2014 Chemicals Division 15 Businesses  Chemical resources: Import and overseas sales of industrial salt; import and sales of rare earths and lithium  Functional materials: Export and import of carbon fiber and cellulose; sales of high-performance nonwoven cloth  Advanced electronic materials: Sales of flat-panel displays (FPD); sales of printed circuit boards Industrial Salt Business A key raw material for basic chemicals, with broad applications Salt stocks before shipment in India Ecological Materials & Resources Unit Rare Earth Business Stable supply and production of important resources which is now an essential part of the infrastructure of modern societies Neodymium iron boron alloy
  15. 15. Copyright © Sojitz Corporation 2014 Consumer Lifestyle Business Division 16 Businesses Foods & Agriculture Business Unit  Foodstuffs: Trade, overseas processing and domestic trade of sugar, coffee, seafood and general foods; fish farming, etc.  Agribusiness: Production, sales, import and export of advanced chemical fertilizer; agricultural business  Grains and feed materials: Trade, domestic trade, and overseas production of wheat, soybeans, corn, rice, oil and fat, pasture, compound feed, etc.; port operations Overseas Grain and Feed Business We have invested in the Interflour Vietnam Ltd., which has the largest specialized grain port in Vietnam, and have developed our feed and grain business using their facilities. IFV’s flour mill, silos and port facilities Grain production and collection business in Brazil Agriculture, Grain Collection, and Terminal Business We have invested in the CGG group, a Brazilian agriculture and grain collection company, to expand the scale of our grain trading.
  16. 16. Copyright © Sojitz Corporation 2014 Consumer Lifestyle Business Division 17 Forest Products & Lifestyle Unit Businesses  Consumer goods: Miscellaneous brand items, including cigarettes, and shoes, etc.; overseas consumer products, wholesale, and distribution; retail business at airports with JALUX  Overseas Industrial & Urban Infrastructure Development: Overseas industrial park development and operation  Forest products: Import, offshore trading, and domestic Japanese sales of timber, lumber, plywood, building materials, woodchips, pulp, etc.; overseas afforestation and woodchip production businesses  Textiles: OEM and apparel brand businesses Overseas Industrial Park Business Developing, selling lots in, and managing industrial parks in rapidly growing Asia Long Duc Industrial Park in Vietnam Brand and Retail Businesses Brand businesses which lie at the leading edge of diversifying lifestyles and changing consumer psychology/awareness A plantation site in South Africa for supplying woodchip materials Woodchip and Afforestation Businesses Developing woodchip businesses in Asia, Australia, and Africa Casual fashion brand “Admiral”
  17. 17. Copyright © Sojitz Corporation 2014 The Sojitz Group’s CSR 18 Main Social Contribution Initiatives ・ Establishment and Management of the Sojitz Reconstruction and Education Fund (A scholarship program for college students affected by the Great East Japan Earthquake and Tsunami) ・ Pre-School Education Support Project in Tanzania and Mozambique (Improvement of the educational environment for pre-school children) ・ Support for the Sojitz Foundation (Assistance for foreign students studying in Japan, grants for international exchanges, etc.) Children in Mozambique express joyfulness in front of new school building of pre-school education support project Sojitz Group CSR Policy and CSR Priority Themes Promotion of CSR Supply Chain Management  For the Sojitz Group, which conducts business on a global scale, promoting CSR in supply chains is important. We have formulated CSR Action Guidelines for Supply Chains, conduct surveys of business partners, and are working in other ways to build sustainable supply chains with our business partners. CSR Priority Themes  Promotion of CSR Supply Chain Management  Promotion of Businesses That Contribute to Preventing Climate Change  Promotion of Businesses That Contribute to the Advance of Developing and Emerging Countries  Establishment of Personnel Systems and Workplace Environments That Enable All Employees to Flourish Sojitz Group CSR Policy We will strive to do business in harmony with society and the environment, consistently honoring the Sojitz Group Statement. Training of Supply Chain CSR In Sojitz group Photo courtesy of Plan Japan
  18. 18. Copyright © Sojitz Corporation 2014 Contributing to Addressing Social Issues through Business 19  Sojitz has designated the new energy and environment business as a new growth field and develops environment and renewable energy businesses that help prevent climate change. Green Chemical Business A shift is taking place to plant-based plastics from conventional petroleum-based plastics. Bioplastics can help alleviate global warming by reducing fossil fuel consumption. The Sojitz is taking various initiatives in the green chemical business, which encompasses plant-derived chemical products and plastic raw materials. Green polyethylene plant in Brazil  A variety of issues, including the establishment of infrastructure, as well as food and energy, must be resolved in order for developing and emerging countries to prosper.  Sojitz group conducts businesses that take advantage of its functions as a general trading company to help resolve these issues. First-Ever Desalination Project in Sub-Saharan Africa Sojitz began participating in a desalination project in the Republic of Ghana in central West Africa. In partnership with one of Spain’s largest water companies, Sojitz will build and operate the plant, which will begin supplying drinking water to the capital city of Accra from the end of 2014. The desalination plant under construction Businesses That Contribute to Preventing Climate Change Businesses That Contribute to the Advance of Developing and Emerging Countries
  19. 19. Copyright © Sojitz Corporation 2014 20 The Sojitz Group creates value and prosperity by connecting the world with a spirit of integrity.