Marubeni Corporation · TSE:8002
Marubeni — FY2013 Earnings Presentation
36 slides from Marubeni's earnings presentation, May 13, 2013
Slide 1: Briefing on Financial Results for FY2013/3 and New Mid-Term Management Plan
Briefing on Financial Results for FY2013/3 and New Mid‐Term Management Plan May 13, 2013
Slide 2: Agenda
Agenda ◆ FY2013/3 Results ◆ SG‐12 Review ◆ New Mid‐Term Management Plan ◆ FY2014/3 Prospects (Reference) Net Income Prospects for FY2014/3 by segment (Reference) Major Projects Copyright 2013 Marubeni Corporation 1
Slide 3: FY2013/3 Results
FY2013/3 Results Copyright 2013 Marubeni Corporation 2
Slide 4: Key Factors of FY2013/3 Results
Key Factors of FY2013/3 Results Financial Results for FY2013/3 ① Consolidated net income : 205.7 billion yen (+33.6 billion yen or +20%, year‐on‐year) ② Net D/E ratio : 1.50 times (down by 0.42 points from FY2012/3 year end) Equity : 1,188.4 billion yen (+272.6 billion yen from FY2012/3 year end) Ne
Slide 5: Business Environment Analysis / Earnings Power and Structure / Balance Sheets & Cash Flows
Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2013 Marubeni Corporation 4
Slide 6: Business Environment Analysis
Business Environment Analysis ≪World Output≫ ≪Crude Oil / Copper price≫ 10.0% 8.8% 7.6% 8.0% 6.4% 6.1% 5.7% 6.0% 6.0% 5.4% 5.2% 5.1% 5.3% 4.0% 4.4% 2.7% 4.0% 4.0% 2.8% 3.2% 3.3% 2.0% 2.8% -0.6% 3.0% 2.2% 2.6% 1.6% 0.0% 1.2% 1.2% 0.1% -2.0% World Advanced Economies -4.0% -3.5% Emerging and Developing
Slide 7: Earnings Power and Structure
Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2013 Marubeni Corporation 6
Slide 8: Net Income
Net Income (billions of yen) ＋33.6 billion yen （＋20%） 205.7 200 172.1 147.2 136.5 150 119.3 111.2 95.3 100 50 0 Initial pros. Initial pros. Initial pros. Initial pros. Initial pros. Initial pros. Initial pros. (100.0) (135.0) (165.0) (80.0) (125.0) (170.0) (200.0) -50 FY2007/3 FY2008/3 FY2009/3 FY20
Slide 9: Adjusted Operating Profit and Core Earnings
Adjusted Operating Profit and Core Earnings (billions of yen) 300 Adjusted Operating Profit Core Earnings 250 245.0 249.6 239.6 235.9 223.7 226.8 200 202.1 203.5 150 165.9 154.4 151.2 158.5 124.8 124.8 100 50 0 FY2007/3 FY2008/3 FY2009/3 FY2010/3 FY2011/3 FY2012/3 FY2013/3 “G”PLAN SG2009 SG-12 Adjus
Slide 10: Earnings Structure and Business Portfolio
Earnings Structure and Business Portfolio Corporate & Corporate & Eliminations, etc. Eliminations, etc. Overseas 5% Overseas 4% 10% Resources Resources 10% 29% 27% Consumer Consumer Products Net Income Products Total Assets FY2013/3 JPY 205.7bil JPY 5,965.1bil 19% 23% Machinery Materials Machinery M
Slide 11: Net Income by Operating Segment for FY2012/3 & FY2013/3
Net Income by Operating Segment for FY2012/3 & FY2013/3 (billions of yen） (Reference) Major Indexes FY2012/3 FY2013/3 Variance FY2012/3 Yearly Actual 49.3 Actual ① Actual ② ②-① 50 FY2013/3 Yearly Actual Exchange Rate Jan 79.8 79.8 -0.0 (JPY/USD) -Dec 44.3 WTI Oil Jan 40.9 (USD/Barrel) -Dec 95 94 -1
Slide 12: Balance Sheets & Cash Flows
Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2013 Marubeni Corporation 11
Slide 13: Equity and Net D/E Ratio
Equity and Net D/E Ratio (billions of yen) Equity (left axis) (times) Net interest-bearing debt (left axis) 2,500 Net D/E ratio (right axis) ≪Reasons for changes in Equity≫ 5.0 (March-2012 / March-2013 comparison) 2,002.0 2,000 1,911.6 ①Changes in Retained earnings 1,843.4 1,785.2 1,755.7 4.0 ⇒＋167.
Slide 14: Cash Flows
Cash Flows Copyright 2013 Marubeni Corporation 13
Slide 15: Equity and Risk Assets
Equity and Risk Assets “G”PLAN SG2009 SG-12 （billions of yen） （billions of yen） 350.0 Risk buffer 334.8 1,200 (left axis) 300.0 1,100 250.0 227.4 1,188.4 1,000 178.3 860.6 204.4 200.0 164.1 853.6 900 820.8 152.3 799.7 831.7 915.8 150.0 800 100.0 623.4 673.7 688.4 700 642.5 708.3 635.6 627.3 50.0 600
Slide 16: ROE and ROA
ROE and ROA ＜ROE＞ ＜ROA＞ (billions of yen) Shareholders' Equity ROE (billions of yen) Consolidated Total Asset ROA 7,000.0 6.00% 1,200.0 30.0% 1,131.8 5,965.1 6,000.0 5.00% 1,000.0 25.0% 5,207.2 5,129.9 852.2 5,000.0 4,873.3 4,707.3 4,679.1 4,586.6 800.0 745.5 779.8 745.3 773.6 20.0% 4.00% 21.2% 20.7
Slide 17: SG-12 Review
SG‐12 Review Copyright 2013 Marubeni Corporation 16
Slide 18: SG-12 accomplishments
SG‐12 Review SG‐12 accomplishments Consolidated Posted record profits for two years in a row : Net Income 172.1 billion yen (FY2012/3 ), 205.7 billion yen (FY2013/3 ) 1.50 times for March 31, 2013 Net D/E Ratio With steady improvements according to an accumulation of retained earnings, SG‐12 target,
Slide 19: New Investments
New Investments SG‐12 Plan SG‐12 Results New Investments(gross) Approx. ¥750 billion Approx. ¥970 billion(*) （*）”Gavilon”acquisition included ＜Priority Fields＞ FY2011/3 FY2012/3 FY2013/3 SG‐12 Period Major Items ・Gulf of Mexico oil and gas field (U.S.) ・Shale oil and gas field (U.S.) Natural Approx.
Slide 20: Mid-Term Management Plan (FY2013-2015)
Mid-Term Management Plan （FY 2013-2015） Copyright 2013 Marubeni Corporation 19
Slide 21: Global Challenge 2015 Basic Policy
1. 「Global Challenge 2015」 Basic Policy Basic Policy The Marubeni Group will continue to develop a full line of businesses that display the dynamism of the Sogo Shosha, and aggressively extend these businesses globally to capture the world’s economic growth in the mid to long-term striving all the w
Slide 22: Quantitative Targets
2. Quantitative Targets Consolidated Net Income (*) FY 2015 ¥250～300 billion (*) Consolidated net income attributable to Marubeni Consolidated Net D/E Ratio FY 2015 end Approx. 1.5 times ROE Equal to or more than 15% stably ROA Equal to or more than 4% Copyright 2013 Marubeni Corporation 21
Slide 23: Quantitative Results/New Targets
3. Quantitative Results/New Targets (¥ billion) (times) 350 10 9.1 ¥250～300 9 300 Consolidated Net Income Consolidated Net D/E Ratio 8 250 7 ¥205.7 6 200 ¥172.1 5 150 ¥136.5 4 ¥95.3 3 100 2 2.1 1.9 50 1.9 1.5 1.5 1 0 0 2001 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 - ¥116.4 bi
Slide 24: Investment Plan
4. Investment Plan 【Investment Plan（3-Year Total)】 Approx. ¥1.1 Trillion (Gross) Group Allocation Priority Fields ・Energy/metals and minerals resources fields in which demand growth is expected for the mid-term. Natural Resources-Related Approx. ・Natural gas value chain (natural resource development
Slide 25: Optimize Management Resources
5. Optimize Management Resources Aim to build a portfolio by FY 2015 generating ¥250~300 billion in any business PM environment. In forming portfolio targets the PM Strategy Committee will look at each Strategy Committee subdivided business field within each division and Portfolio Unit and evaluate
Slide 26: Strengthen/Expand Overseas Business
6. Strengthen/Expand Overseas Business In order to strengthen and expand our overseas business, business plans for the “priority regions” will be decided by the GM Strategy Committee. PM The “priority regions” designated in 「Global Challenge 2015」 are, for the most part, Strategy Committee a continu
Slide 27: Strengthen/Expand Overseas Business
7. Strengthen/Expand Overseas Business The 「Business Strategy Committees」 for the six regions of ASEAN, China, India, South America, the CIS and Sub-Sahara Africa will continue only under a different name, the PM Strategy 「Market Strategy Committees」. These committees will be tied to the GM Strategy
Slide 28: Further Top-Management Led HR Strategy
8. Further Top-Management Led HR Strategy We aim to continue fostering our human resources through our strategy led by top management by implementing measures centered around the 3 pillars of “Experience”, PM Strategy “Assessment/Incentives” and “Training”. Committee During 「Global Challenge 2015」 p
Slide 29: Dividend Policy
9. Dividend Policy By expanding internal reserves and utilizing them in new investments, Marubeni expects to maximize its enterprise value and competitiveness, and continue to provide stable dividends to our shareholders. The dividend to net income ratio from FY2013 will be equal to or more than 20%
Slide 30: FY2014/3 Prospects
FY2014/3 Prospects Copyright 2013 Marubeni Corporation 29
Slide 31: FY2014/3 Prospects
FY2014/3 Prospects Copyright 2013 Marubeni Corporation 30
Slide 32: Net Income Prospects for FY2014/3 by segment
(Ref.) Net Income Prospects for FY2014/3 by segment (billions of yen) 50 <<FY2013/3 actual ‐former organization‐ (US GAAP basis)>> 44.3 40 30 27.9 26.9 21.8 19.8 20 17.1 6.8 8.7 8.8 9.3 10 3.4 ‐0.0 0 Food Chemicals Energy Resources Metals & Mineral Machinery Transportation Infrastructure Power Proje
Slide 33: Major Projects: Acquisition of Gavilon
Food, Lifestyle, Forest Products, (Ref.) Major Projects ICT & Realty Group Acquisition of Gavilon Holdings, LLC (Announced in May 2012） Marubeni has entered into an equity interest purchase agreement to acquire all the equity interests of Gavilon Holdings, LLC. The expected equity acquisition pr
Slide 34: Major Projects: Roy Hill Iron Ore Project
Natural Resources‐ (Ref.) Major Projects p Related Group Acquisition of interests of the Roy Hill Iron Ore Project ＜Strengths of The Project ＞ (Announced in March 2012） A large amount of mineral resources High production ratio of rare lumps iron ore. Marubeni has acquired interest in the Roy H
Slide 35: Major Projects: Machinery Group
(Ref.) Major Projects Machinery Group Participation into the Water and Wastewater Services in Marubeni entered into Power Purchase Agreements for Metropolitan Manila in the Philippines Rantau Dedap Geothermal Project in Indonesia （Announced in December 2012） （Announced in November 2012） Marubeni h
Slide 36: Disclaimer Regarding Forward-Looking Statements
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE PERFORMANCE OF MARUBENI AND ITS GROUP COMPANIES, BASED ON MANAGEMENT'S ASSUMPTIONS IN LIGHT OF CURRENT INFORMATION. THE FOLLOWING FACTORS MAY THEREFORE INFLUENCE ACTUAL RESULTS. THESE FACTORS