Marubeni Corporation · TSE:8002
Marubeni — FY2010 Earnings Presentation
32 slides from Marubeni's earnings presentation, May 9, 2011
Slide 1: Briefing on Financial Results for FY2010
Briefing on Financial Results for FY2010 May 9, 2011 Marubeni Corporation
Slide 2: Agenda
Agenda Ⅰ. FY2010 Results ・・・ p2 Key Factors of FY2010 Results Business Environment Analysis Earnings Power and Structure B l Balance Sh t & Cash Sheets C h Flows Fl Ⅱ. Progress of SG‐12 ・・・p17 Progress of SG‐12 Key Measures Quantitative Targets Copyright 2011 Marubeni Corporation 1
Slide 3: I. FY2010 Results
Ⅰ. FY2010 Results Key Factors of FY2010 Results Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2011 Marubeni Corporation 2
Slide 4: Key Factors of FY2010 Results
Key Factors of FY2010 Results FY2010 results, the first year of SG‐12, shows strong performance. ① Consolidated net income : 136.5 billion yen (+41.2 billion yen or +43%, year‐on‐year) ➔ the Company’s second highest income level for a single fiscal year (historical high : 147.2 billion yen, FY2007)
Slide 5: I. FY2010 Results
Ⅰ. FY2010 Results Key Factors of FY2010 Results Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2011 Marubeni Corporation 4
Slide 6: Business Environment Analysis
Business Environment Analysis The global economy remains in a gradual recovery trend • Led by emerging market economies • Supported by monetary easing in developed countries Commodity prices remain high • LME Copper : hit a record of US$10,148/ton on Feb. 14, 2011 Occurrence of Great East Japan Eart
Slide 7: I. FY2010 Results
Ⅰ. FY2010 Results Key Factors of FY2010 Results Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2011 Marubeni Corporation 6
Slide 8: Net Income
Net Income (billions of yen) Initial pros. Initial pros. Initial pros. Initial pros. Initial pros. (100.0) (135.0) (165.0) (80.0) (125.0) “G”PLAN SG2009 SG-12 Copyright 2011 Marubeni Corporation 7
Slide 9: Adjusted Operating Profit and Core Earnings
Adjusted Operating Profit and Core Earnings (billions of yen) 350 Adjusted Operating Profit Core Earnings 300 250 245.0 223.7 239.6 235.9 200 202.1 203.5 150 165 9 165.9 154.4 151.2 124.8 Initial target 100 (200.0) Revised target (Oct. 10) (210.0) Revised target (Jan. 11) (220.0) 50 Initial target (
Slide 10: Earnings Structure of Net Income
Earnings Structure of Net Income FY2009 FY2010 ＜Reference＞ Unit (billions of yen) Commodity price Actual Actual Oil （ North Sea Brent） USD/Barrel 63 80 Copper USD/MT 5,164 7,539 （ LME） “G”PLAN SG2009 SG-12 Copyright 2011 Marubeni Corporation 9
Slide 11: Earnings Structure and Business Portfolio
Earnings Structure and Business Portfolio Core earnings Net income Total assets * Overseas * * 4% 9% -2% Overseas 4% Overseas Resources Consumer 10% Resources 11% Products 23% FY2010 31% 15% Consumer Resources FY2010 FY2010 Consumer Mar. 31, 2011 Products 41% Products 21% JPY 223.7 billion JPY 136.5
Slide 12: Net Income by Operating Segment for FY2009 & FY2010
Net Income by Operating Segment for FY2009 & FY2010 (Reference) Major Indexes FY2009 FY2010 FY 2010 Sensitivity Variance Left :FY2009 Yearly actual Actual Actual (to Net Income on yearly （②－①） ① ② basis) Right :FY2010 Yearly actual Exchange Rate Approx. JPY ±0.7 billion 93.6 87.8 -5.8 (JPY/USD) /[JP
Slide 13: I. FY2010 Results
Ⅰ. FY2010 Results Key Factors of FY2010 Results Business Environment Analysis Earnings Power and Structure Balance Sheets & Cash Flows Copyright 2011 Marubeni Corporation 12
Slide 14: 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 ≪Reasons for changes in Equity≫ Equity≫ Net DE ratio (right axis) (March-2010 / March-2011 comparison) 5.0 2,002.0 ①Changes in Retained earnings 2,000 1,911.6 1,843.4 ⇒＋118.3 billion yen
Slide 15: Cash Flows
Cash Flows (billions of yen) Net cash provided by investing activities 400 Net cash provided by operating activities 343.6 300 -35.2 245.4 235.3 200 280.6 -387.1 152.1 Frree C/F 210.0 -128.5 100 81.5 F Free F Free -135.1 -306.9 16.9 C/F C/F 0 Free C/F Free C/F -71.6 -43.5 -100 -200 FY2006 FY2007 FY2
Slide 16: Equity and Risk Assets
Equity and Risk Assets （billions of yen） “G”PLAN SG2009 SG-12 （billions of yen） Risk assets (right axis) Risk buffer (left axis) Equity (right axis) Copyright 2011 Marubeni Corporation 15
Slide 17: ROE and ROA
ROE and ROA ＜ROE＞ ＜ROA＞ (billions of yen) (billions of yen) “G”PLAN SG2009 SG-12 “G”PLAN SG2009 SG-12 Copyright 2011 Marubeni Corporation 16
Slide 18: II. Progress of SG-12
Ⅱ. Progress of SG‐12 Outline of SG‐12 Quantitative Targets Copyright 2011 Marubeni Corporation 17
Slide 19: Outline of SG-12
Outline of SG‐12 SG‐12 Principles The Marubeni Group, even in this turbulent world economy, will build strong earnings and a solid financial base to become a “Stronger Marubeni” who challenges sustainable growth beyond all our stakeholders’ expectations. SG‐12 Key Measures and Quantitative Targets 【
Slide 20: II. Progress of SG-12
Ⅱ. Progress of SG‐12 Outline of SG‐12 Quantitative Targets Copyright 2011 Marubeni Corporation 19
Slide 21: FY2010 Results vs SG-12 Targets
FY2010 Results SG-12 target FY2010 actual results status Consolidated Net FY2010：125.0 billion yen 136.5 billion yen achieved Income Net D/E Ratio Approx. 1.8x 1.94x on target Risk Assets Less than Equity 627.3 billion yen on target (Equity：831.7 billion yen) ROE Over 15% stably 18.0% on target (bil
Slide 22: Priority Allocation of Management Resources
Priority Allocation of Management Resources Strategic Divestiture of New Investment (Gross) Assets New Investment (Net) FY2010 actual results Approx. 160.0 billion yen Approx. 70.0 billion yen Approx. 90.0 billion yen Priority Business Fields FY2010 actual Major Projects • Oil and Gas Concession (Gu
Slide 23: Prospects for FY2011
Prospects for FY2011 SG‐12 target FY2010 actual results Prospects for FY2011 Consolidated Net FY2010：125.0 billion yen 136.5 billion yen 170.0 billion yen Income Net D/E Ratio Approx. 1.8x 1.94x Approx. 1.90x Risk Assets Less than Equity 627.3 billion yen Less than Equity (Equity：831.7 billion yen)
Slide 24: Prospects of Net Income by Operating Segment for FY2011
Prospects of Net Income by Operating Segment for FY2011 (billions of yen) Left :FY2010 Yearly actual (Reference) Major Indexes Right :FY2011 Yearly prospect FY 2011 Sensitivity FY2010 FY2011 Variance 59.0 (to Net Income on yearly 60 Actual Assumption （②－①） basis) Exchange Rate Approx. JPY ±1.1 billi
Slide 25: Net Income Target for the period of SG-12
Net Income Target for the period of SG‐12 To break the highest income record with a view to achieving (FY2007: 147.2 billion yen) 200.0 billion yen 170.0 billion yen Maintaining a good 136.5 billion yen balance of resources and non‐resources 41% 43% FY2010 Actual FY2011 Prospect FY2012 Target Resour
Slide 26: Major Projects: Metals & Mineral Resources
Major Projects Metals & Mineral Resources Mirador Main activities in FY2010 Acquisition of mining usufruct right of a new copper mine in Chile (Mirador) First Shipments of Copper Concentrates from Minera Esperanza in Chile Decision to Expand Lake Vermont Coal Mine in Esperanza Australia El Tesoro (t
Slide 27: Major Projects: Oil & Gas
Major Projects Oil & Gas Participation in the Niobrara Shale Oil Project Main activities in FY2010 Acquisitions of Interests in the Gulf of Mexico z Marubeni has entered into an agreement with Marathon Oil Oil and Gas Fields from BP Corporation (“Marathon”), a U.S. major oil and natural gas Main act
Slide 28: Major Projects: Power Projects
Major Projects Power Projects Marubeni to enter into Regulated Transmission and Main activities in FY2010 Distribution Business in Texas with Hunt New Investments； Hsin Tao Power, Taiwan z Marubeni agreed to develop and to acquire electric Raleigh Wind Energy Center Project, Canada transmission and
Slide 29: Major Projects: Water Projects
Major Projects Water Projects Main activities in FY2010 Marubeni invests in Major Australian Water Treatment Engineering Company, Osmoflo Holdings Pty Ltd. Acquisition of Full Service Water Utility, Chile Investment in Australian Water Treatment z Marubeni agreed with the existing shareholders for t
Slide 30: Major Projects: Transportation Machinery Business
Major Projects Transportation Machinery Business Acquisition of the interest in 8 LNG Vessels Main activities in FY2010 Acquisition of the interest in 8 LNG Vessels (see the z Marubeni has agreed with BW Gas Limited, Bermuda (“BWG”) right column) to acquire 49% interest of 8 LNG carriers presently o
Slide 31: Major Projects: Grain Business
Major Projects Grain Business Main activities in FY2010 Agreement with China’s Largest Agricultural Company Collaboration Agreement with East Russian Grains Consolidator and Port Logistics Operator (Apr., 2010) z Agreed on strategic cooperation with LIUHE Group, which is Collaboration Agreement with
Slide 32: 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