Sojitz (2768) investor relations material

Executive summary

• Nine-month profit attributable to owners reached JPY 80.4 billion, up 5.7% year-over-year, achieving 70% of the full-year forecast and aligning with expectations.

• Market capitalization surpassed JPY 1 trillion, progressing toward a JPY 2 trillion target.

• Revenue for the nine-month period rose 5.6% year-over-year to JPY 1,985.8 billion, driven by Energy Solutions & Healthcare and Aerospace, Transportation & Infrastructure.

• Q3 trends remained consistent with Q2, with strong contributions from Energy Solutions & Healthcare, Chemicals, Aerospace, and Transportation & Infrastructure.

• Segments under rehabilitation, such as Automotive and Metals, have yet to achieve profit growth.

Financial highlights

• Gross profit increased by JPY 10 billion year-over-year to JPY 270.6 billion.

• Core operating cash flow was JPY 93.6 billion, 67% of the full-year target.

• SG&A rose by JPY 25.9 billion, mainly due to new consolidated subsidiaries.

• Cash flow from operating activities was JPY 75 billion; investing activities saw a net outflow of JPY 76.6 billion, resulting in free cash flow of negative JPY 1.6 billion.

• Dividends per share increased to JPY 165, a 10% year-over-year rise.

Outlook and guidance

• Full-year profit forecast remains at JPY 115 billion, with 70% achieved by Q3; gross profit forecast maintained at JPY 380 billion.

• Automotive segment may slightly miss its JPY 3 billion profit target due to slow recovery in Australia.

• Metals, Mineral Resources & Recycling expected to face ongoing challenges, mainly in coal.

• New investments for the year projected at JPY 200 billion, with a plan to reach JPY 300 billion by year-end.

• Annual dividend per share is forecast at JPY 165, in line with a progressive dividend policy.