Sumitomo Corporation · TSE:8053

Sumitomo — H1 FY2018 Earnings Presentation

40 slides from Sumitomo's earnings presentation, Nov 2, 2018

Slide 1: Investors Meeting: Quarterly Results for FY2018
- Investors Meeting - Quarterly Results for FY2018 (Six-month period ended September 30, 2018) November 2nd, 2018 Sumitomo Corporation
Slide 2: Topics and Cautionary Statement Concerning Forward-looking Statements
Topics 1. Six-month results for FY2018 and Forecasts for FY2018 2. Progress in Medium-Term Management Plan 2020 Cautionary Statement Concerning Forward-looking Statements This report includes forward-looking statements relating to our future plans, forecasts, objectives, expectations and intentions.
Slide 4: Operating Results (Profit for the period)
1. Operating Results(Profit for the period) FY2017 FY2018 Increase/ FY2018 〈 Summary by segment (Results) 〉 Q2 Q1 Q2 Q2 Annual Decrease (Unit: Billions of yen) (Apr.-Sep.) (Apr.-Jun.) (Jul.-Sep.) (Apr.-Sep.) (announced Progress in May, 2018) ■ Metal Products (A) (B) (B)-(A) （C）（B）/（C）  Increase in
Slide 5: Operating Results (Basic profit)
2. Operating Results(Basic profit) FY2017 FY2018 Increase/ FY2018 Q2 Q1 Q2 Q2 Decrease Annual Forecasts Progress (Unit: Billions of yen) (announced (Apr.-Sep.) (Apr.-Jun.) (Jul.-Sep.) (Apr.-Sep.) in May, 2018) (A) (B) (B)-(A) （C）（B）/（C） Basic profit * 151.7 92.5 86.4 178.9 ＋27.2 340.0 53% Mineral r
Slide 6: Cash Flows / Financial Position
3. Cash Flows / Financial Position ● Cash Flows (Unit: Billions of yen) ● Financial Position (Unit: Trillions of yen) FY2017 FY2018 As of Mar. 31, 2018 As of Sep. 30, 2018 Q2 Q2 Operating activities ＋50.0 ＋89.0 Total assets 7.8 Total assets 8.1 Investing activities -29.0 -13.7 Other Other Free Cash
Slide 7: Annual Forecasts and Dividend for FY2018
4. Annual Forecasts and Dividend for FY2018 Initial forecast of 320 billion yen for the profit for the year remains Annual unchanged, given factors such as recent declines in commodity Forecasts prices and uncertainty on U.S.-China trade issues. “Medium-Term We will decide the dividend amount in vie
Slide 9: Medium-Term Management Plan 2020 Overview
1. Overview Medium-Term Management Plan 2020 - Unceasing Challenge for New Value Creation- Growth Strategy Growth Strategy 1 Growth Strategy 2 Increase Value of Existing Business Create Next-generation Business Growth Strategy 3 Leverage Business Platforms Business Support Functions Management Base
Slide 10: Growth Strategy: Increase Value of Existing Business
2-1. Growth Strategy : Increase Value of Existing Business Growth ● Further reinforcing of existing earnings pillars Increase Value strategy 1 of Existing Business ● Seeking to unlock the full potential of businesses ● Speedy response to changes in the business environment Participation in specialty
Slide 11: Growth Strategy: Create Next-Generation Business
2-2. Growth Strategy : Create Next-Generation Business Growth 300 billion yen of “Strategic Investment Fund” strategy Create Next- to three growth areas over three years 2 generation Business (1) Technology x Innovation (the fourth industrial revolution fields) (2) Healthcare (3) Social infrastructu
Slide 12: Technology x Innovation: Promotion of Digital Transformation
2-2. Growth Strategy : Create Next-Generation Business Growth Create Next- strategy Case 1. Initiative in Technology x Innovation 2 generation Business Promotion of Digital transformation (DX) Accelerating of innovation, such as upgrading operation and creating new businesses by Promoting DX Busines
Slide 13: Smart city project in North Hanoi, Vietnam
2-2. Growth Strategy : Create Next-Generation Business Growth Create Next- strategy Case 2. Initiative in Social infrastructure 2 generation Business Smart city project in North Hanoi, Vietnam Bringing together our total strength <Our concept of the smart city> to realize dream-inspiring urban devel
Slide 14: Growth Strategy: Leverage Business Platforms
2-3. Growth Strategy : Leverage Business Platforms Growth Creating new value through hybridization of multiple Leverage strategy businesses and cross-organizational collaboration 3 Business Platforms Auto leasing business: Sumitomo Mitsui Auto Service Establishing comprehensive MaaS (Mobility as a S
Slide 15: Management Base Enhancement: Corporate Governance
3-1. Management Base Enhancement : Corporate Governance Management Base Enhancement 1 Corporate Governance - Periodic monitoring of medium-term management plan Reinforcement of monitoring and portfolio strategy functions of （Develop a regular reporting system to monitor progress of management strate
Slide 16: Management Base Enhancement: Human Resources Strategy
3-2. Management Base Enhancement : Human Resources Strategy Management Base Enhancement 2 Human Resources Strategy Diversity & Inclusion “Value, Respect, Include individual differences” “Encourage individuals to challenge, expand the strengths -Make diversity a source of competitiveness of individua
Slide 17: Introduction of initiative to support the spirit of challenge
4. Introduction of initiative to support the spirit of challenge 0→1 Challenge 2018 ●Launch “intrapreneurship” program which allows individuals to propose new businesses regardless of their day-to-day responsibilities ⇒Aiming to create businesses with new ideas never seen before ●Allocate partial am
Slide 19: Appendix contents
 Summary of Consolidated Statements of Comprehensive Income (P.19)  Summary of Consolidated Statements of Cash Flows (P.20)  Summary of Consolidated Statements of Financial Position (P.21)  Annual Forecasts by Segment (P.22)  Performance Overview by Segment (P.23-31)  Supplemental materials by
Slide 20: Summary of Consolidated Statements of Comprehensive Income
5. Summary of Consolidated Statements of Comprehensive Income FY2017 FY2018 change (Unit: Billions of yen) Q2 Q2 Summary (Apr.-Sep.) (Apr.-Sep.) amount % ≪Gross profit ≫ Revenues 2,293.5 2,479.9 +186.4 8% ・Impact of higher mineral resources prices Gross profit 467.3 451.2 -16.0 -3% ・Progress in cons
Slide 21: Summary of Consolidated Statements of Cash Flows
6. Summary of Consolidated Statements of Cash Flows FY2017 FY2018 (Unit: Billions of yen) Q2 Q2 change Summary (Apr.-Sep.) (Apr.-Sep.) ≪Net cash used in operating activities≫ Net cash used in operating activities 50.0 89.0 ＋39.0 ・Core businesses generated cash steadily ・Dividend from investments acc
Slide 22: Summary of Consolidated Statements of Financial Position
7. Summary of Consolidated Statements of Financial Position FY2017 FY2018 (Unit: Billions of yen) Q2 Change Summary (as of Mar.31,2018) (as of Sep.30,2018) Assets 7,770.6 8,055.6 ＋285.0 ≪Trade and other receivables≫ Current assets 3,477.3 3,525.7 ＋48.4 ・Increase of accounts receivable due to higher
Slide 23: Annual Forecasts by Segment
8. Annual Forecasts by Segment FY 2018 Annual (Unit: Billions of yen) FY 2017 Forcasts Q2 Progress Business outlook (announced in May,2018) (A) (B) (B)/(A) ・Increase in earnings from tubular products business in North America Metal Products 35.4 37.0 20.9 56% ・Stable performance of alminium smelting
Slide 24: Performance Overview (Metal Products)
9. Performance Overview(1) (Metal Products) 【Key Financial Indicators】 <Q2 Results>(¥2.6 bil. increase from Q2 FY2017) <Business Outlook> FY2017 FY2018 FY 2018 Q2 Q2 Initial Forecasts ・Steel sheets ・Increase in tubular products Overseas steel service centers : stable business in North America (Unit:
Slide 25: Performance Overview (Transportation & Construction Systems)
9. Performance Overview(2) (Transportation & Construction Systems) 【Key Financial Indicators】 <Q2 Results>(¥2.8 bil. decrease from Q2 FY2017) <Business Outlook> FY2017 FY2018 FY 2018 Q2 Q2 Initial Forecasts ・Leasing, Ships and Aerospace ・Stable performance of leasing Leasing business : stable busine
Slide 26: Performance Overview (Infrastructure)
9. Performance Overview(3) (Infrastructure) 【Key Financial Indicators】 <Q2 Results>(¥3.0 bil. increase from Q2 FY2017) < Business Outlook > FY2017 FY2018 FY 2018 Q2 Q2 Initial Forecasts ・ Large-scale EPC* projects : ・Progress in construction of (Unit: Billions of yen) (Apr.-Sep.) (Apr.-Sep.) as of M
Slide 27: Performance Overview (Media & Digital)
9. Performance Overview(4) (Media & Digital) 【Key Financial Indicators】 <Q2 Results>(¥1.6 bil. decrease from Q2 FY2017) <Business Outlook> FY2017 FY2018 FY 2018 Q2 Q2 Initial Forecasts ・Domestic major group companies and ・Stable performance of domestic (Unit: Billions of yen) (Apr.-Sep.) (Apr.-Sep.)
Slide 28: Performance Overview (Living Related & Real Estate)
9. Performance Overview(5) (Living Related & Real Estate) 【Key Financial Indicators】 <Q2 Results>(¥6.9 bil. increase from Q2 FY2017) <Business Outlook> FY2017 FY2018 FY 2018 Q2 Q2 Initial Forecasts ・Stable performance in domestic major group ・Stable performance of domestic (Unit: Billions of yen) (A
Slide 29: Performance Overview (Mineral Resources, Energy, Chemical & Electronics)
9. Performance Overview(6) (Mineral Resources, Energy, Chemical & Electronics) 【Key Financial Indicators】 <Q2 Results>(¥14.9 bil. increase from Q2 FY2017) <Business Outlook> FY2017 FY2018 FY 2018 Mineral Resources & Energy Q2 Q2 Initial Forecasts (Basic profit: ¥34.7 bil., ¥6.5 bil. increase from Q2
Slide 30: Mineral Resources Equity Share of Production and Sensitivity
9. Performance Overview(6) (Mineral Resources, Energy, Chemical & Electronics) Mineral Resources Equity Share of Production and Sensitivity to Profit for the Year FY2018 Sensitivity to net income FY2017 Results FY2018 Results FY2018 Revised Forecasts (annual base, Initial Forecasts excluding prices
Slide 31: Mineral Resources Equity Share of Production and Sensitivity
9. Performance Overview(6) (Mineral Resources, Energy, Chemical & Electronics) Mineral Resources Equity Share of Production and Sensitivity to Profit for the Year FY2018 Sensitivity to net income FY2017 Results FY2018 Results FY2018 Revised Forecasts (annual base, Initial Forecasts excluding prices
Slide 32: Exposure of Upstream Mineral Resources & Energy Business
9. Performance Overview(6) (Mineral Resources, Energy, Chemical & Electronics) Exposure of Upstream Mineral Resources & Energy Business (Unit: Billions of yen) As of Mar.31, 2018 As of Sep.30, 2018 ＜Reasons of differences＞ Coking/Thermal Coal 90.0 90.0 Iron Ore 80.0 80.0 Copper 110.0 130.0 Silver, Z
Slide 33: Supplemental materials by segment (Living Related & Real Estate)
10. Supplemental materials by segment （Living Related & Real Estate Business Unit） Unit: Billions of yen (rounded to the nearest 100 million yen) *1 FY2017 Apr.-Sep. FY2018 Apr.-Sep. Increase/ Results Results (decrease) Living Related & Real Estate Gross profit 97.2 107.9 10.7 Lifestyle & Retail Bus
Slide 34: Supplemental materials by segment (Mineral Resources, Energy, Chemical & Electronics)
10. Supplemental materials by segment （Mineral Resources, Energy, Chemical & Electronics Business Unit） Unit: Billions of yen (rounded to the nearest 100 million yen) *1 FY2017 Apr.-Sep. FY2018 Apr.-Sep. Increase/ Results Results (decrease) Mineral Resources, Energy, Chemical & Electronics Gross pro
Slide 35: Quarterly Trend for Profit by Segment (FY2018)
11. Quarterly Trend for Profit for the period attributable to owners of the parent by Segment and One-off profits/losses (FY2018) 【 Profit for the period arrtibutable to owners of the parent】【 Major one-off profits/losses (Q2 Cumulative Results)】 FY2018 Results （Unit：billions of yen） Q1 Q2 Q3 Q4 Cu
Slide 36: Quarterly Trend for Profit by Segment (FY2017)
11. Quarterly Trend for Profit for the period attributable to owners of the parent by Segment and One-off profits/losses (FY2017) 【 Major one-off profits/losses (Annual Results)】【 Profit for the period arrtibutable to owners of the parent】 FY2017 Results Metal Products ・ U.S. tax reform impact (app
Slide 37: Historical Data (1) PL, CF
12. Historical Data(1) PL, CF U.S.GAAP IFRS Medium - Term FOCUS'10 f(x) BBBO2014 BBBO2017 Management Plan 2020 FY2018 (Unit: Billions of yen) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q2 Revenues 2,884.2 3,100.2 3,261.0 3,016.2 3,317.4 3,762.2 4,010.8 3,997.0 4,827.3 2,479.9 Gro
Slide 38: Historical Data (2) BS, Key Financial Indicators
12. Historical Data(2) BS, Key Financial Indicators U.S.GAAP IFRS Medium - Term FOCUS'10 f(x) BBBO2014 BBBO2017 Management Plan 2020 FY2018 (Unit: Billions of yen) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Q2 Total assets 7,137.8 7,230.5 7,226.8 7,832.8 8,668.7 9,021.4 7,817.8 7
Slide 39: Historical Data for Medium-Term Management Plan
13. Historical Data for Medium-Term Management Plan （billion yen） Net Income (left scale) （trillion yen／％） 400 16 32 Total Assets (right scale) 350 14 28 300 Risk-adjusted Return ratio 12 24 (mid-term plan ave., right scale) 250 10 20 200 8 16 150 6 12 100 4 8 50 2 4 0 0 0 -50 -2 -100 -4 FY07 FY08 F
Slide 40: Shareholders' Composition
14. Shareholders’ Composition 40% 35.3% Overseas 35% 31.4% 30% 27.7% 30.6% Trust Banks 25% 20% Individual and Others 14.0% 13.4% 15% 13.3% 12.8% 10% 11.3% Other Corporations Financial Institutions 10.3% (excl. Trust Banks) 5% 0% 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2017/9 2

Sumitomo — H1 FY2018 Earnings Presentation on 6ix

Sumitomo — H1 FY2018 Earnings Presentation

Slide 1: Investors Meeting: Quarterly Results for FY2018

Slide 2: Topics and Cautionary Statement Concerning Forward-looking Statements

Slide 3: Six-month results for FY2018 and Forecasts for FY2018

Slide 4: Operating Results (Profit for the period)

Slide 5: Operating Results (Basic profit)

Slide 6: Cash Flows / Financial Position

Slide 7: Annual Forecasts and Dividend for FY2018

Slide 8: Progress in Medium-Term Management Plan 2020

Slide 9: Medium-Term Management Plan 2020 Overview

Slide 10: Growth Strategy: Increase Value of Existing Business

Slide 11: Growth Strategy: Create Next-Generation Business

Slide 12: Technology x Innovation: Promotion of Digital Transformation

Slide 13: Smart city project in North Hanoi, Vietnam

Slide 14: Growth Strategy: Leverage Business Platforms

Slide 15: Management Base Enhancement: Corporate Governance

Slide 16: Management Base Enhancement: Human Resources Strategy

Slide 17: Introduction of initiative to support the spirit of challenge

Slide 18: Appendix

Slide 19: Appendix contents

Slide 20: Summary of Consolidated Statements of Comprehensive Income

Slide 21: Summary of Consolidated Statements of Cash Flows

Slide 22: Summary of Consolidated Statements of Financial Position

Slide 23: Annual Forecasts by Segment

Slide 24: Performance Overview (Metal Products)

Slide 25: Performance Overview (Transportation & Construction Systems)

Slide 26: Performance Overview (Infrastructure)

Slide 27: Performance Overview (Media & Digital)

Slide 28: Performance Overview (Living Related & Real Estate)

Slide 29: Performance Overview (Mineral Resources, Energy, Chemical & Electronics)

Slide 30: Mineral Resources Equity Share of Production and Sensitivity

Slide 31: Mineral Resources Equity Share of Production and Sensitivity

Slide 32: Exposure of Upstream Mineral Resources & Energy Business

Slide 33: Supplemental materials by segment (Living Related & Real Estate)

Slide 34: Supplemental materials by segment (Mineral Resources, Energy, Chemical & Electronics)

Slide 35: Quarterly Trend for Profit by Segment (FY2018)

Slide 36: Quarterly Trend for Profit by Segment (FY2017)

Slide 37: Historical Data (1) PL, CF

Slide 38: Historical Data (2) BS, Key Financial Indicators

Slide 39: Historical Data for Medium-Term Management Plan

Slide 40: Shareholders' Composition